Canon Inc. · TSE:7751
Canon — Q1 2025 Earnings Presentation
22 slides from Canon's earnings presentation, Apr 24, 2025
Slide 1: Canon Inc. First Quarter 2025 Results
Canon Inc. First Quarter 2025 Results April 24, 2025 This presentation contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and assumptions formed by available information. All state
Slide 2: Agenda
Agenda 1Q 2025 Results P 2-5 FY 2025 Projection P 6-10 Financial Situation P 11-13 Summary P 14 Supplementary Information P 15-20 1
Slide 3: 1Q 2025 Review
1Q 2025 Review Overall, our markets remained solid as expected Network camera sales up nearly 30% Double-digit sales growth of laser printers, and cameras thanks to the launch of new cameras last year Unit sales of semiconductor lithography equipment up more than 10% Net sales up 7.1%, at reco
Slide 4: P&L (1Q 2025 Results)
P&L (1Q 2025 Results) 2025 2024 (Billions of yen) % Change Actual Actual Net Sales 1,058.4 988.5 +7.1% Gross Profit 500.9 478.4 +4.7% (% of Net Sales) 47.3% 48.4% Op. Expenses 404.4 398.3 (% of Net Sales) 38.2% 40.3% Op. Profit 96.5 80.1 +20.5% (% of Net Sales) 9.1% 8.1% Non-operating 2.3 9.1 Income
Slide 5: 1Q 2025 Operating Profit Analysis
1Q 2025 Operating Profit Analysis (1Q 2025 Actual versus 1Q 2024 Actual) (Billions of yen) FX Details Net Sales: +7.2 Cost of Sales: -5.0 Op. Expenses: -1.8 +19.9 +0.8 -0.4 -4.3 +0.4 Change in Net Sales, excluding FX impact, for reference Printing: +24.1 96.5 80.1 Medical: +3.0 Imaging: +35.1 Indust
Slide 6: 1Q 2025 Financial Results by Business Unit
1Q 2025 Financial Results by Business Unit 2025 2024 (Billions of yen) % Change Actual Actual Net Sales 611.0 580.3 +5.3% Printing Op. Profit 73.1 65.5 +11.5% (%) (12.0%) (11.3%) Net Sales 137.3 134.2 +2.3% Medical Op. Profit 6.7 5.6 +20.2% (%) (4.9%) (4.2%) Net Sales 212.1 175.5 +20.8% Imaging Op.
Slide 7: Impact of U.S. Tariff Policy
Impact of U.S. Tariff Policy Assumptions Additional tariffs of 10% (China 145%) to continue from April to December Respond to cost increase from additional tariffs by raising prices Decreased unit sales as a result of price increase and customers less willing to invest due to growing uncertain
Slide 8: 2025 Financial Projection (Full Year)
2025 Financial Projection (Full Year) Assuming Additional Tariff of 10% 2025 2024 2025 Current Actual Previous Tariff Sales Total Projection (excl. %Change (Billions of yen) FX Pricing Projection Cost Volume Change (incl. Tariff Impairment Impact) Loss) Net Sales 4,736.0 -74.0 42.8 -54.8 -86.0 4,650
Slide 9: 2025 Operating Profit Analysis (vs Previous Projection)
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2025 Previous Projection) (Billions of yen) FX Details Net Sales: -74.0 Cost of Sales: +35.4 Op. Expenses: +19.3 +1.8 +0.0 +0.0 -19.3 -1.8 -33.7 Change in Net Sales, excluding FX impact, for reference Printing: +4.7 519.0 Medical:
Slide 10: Review of Business Structure
Review of Business Structure (Billions of yen) 2024 2025 FY 1Q FY Sales Cost -20.0 -1.2 -6.0 Structural Effect 8.0 5.0 22.0 Reform PL Impact -12.0 3.8 16.0 FY 1Q FY Production Cost 0.0 -0.9 -20.0 Structural Effect 0.0 0.0 0.0 Reform PL Impact 0.0 -0.9 -20.0 FY 1Q FY Medical Cost -2.5 -0.7 -5.0 Busin
Slide 11: 2025 Financial Projection by Business Unit
2025 Financial Projection by Business Unit (Full Year) 2025 2025 2024 Amount excl. FX (Billions of yen) Current Projection % Change Previous FX Impact (incl. Tariff Impact) Actual Change Impact Projection Net Sales 2,523.1 2,522.7 +0.0% 2,558.0 -34.9 -39.6 +4.7 Printing Op. Profit 314.7 289.9 +8.6%
Slide 12: Inventory
Inventory Inventory at end of March increased by 30 billion yen compared to the end of last year, in preparation for sales expansion from the second quarter onward Aiming for an optimal inventory level of less than 60 days by end of 2025 FY 2024 FY 2025 (Billions of yen) Mar.-end Jun.-end Sep.-e
Slide 13: Cash Flow (Full Year)
Cash Flow (Full Year) Operating cash flow expected to be approximately 630 billion yen, exceeding last year No change in plans for investments and dividends FY 2025 Current FY 2025 FY 2024 FY 2023 (Billions of yen) Projection Previous Actual Actual (incl. Tariff Projection Impact) Net income 333
Slide 14: Return on Capital
Return on Capital Expect ROE to be 9.9% in 2025 Improve return on capital to achieve ROE of 10% or higher, through structural reforms 14.0% ROE 12.0% PBR 9.4% 9.9% (4.8% incl. Impairment Loss) 10.0% 7.9% 8.1% 8.2% 1.4x 8.0% 1.1x 1.0x 6.0% 0.8x Weighted Average Cost of Capital (WACC) 5% to 6％ 4.0
Slide 15: Summary
Summary Complete structural reforms in 2025, the year to close out 5-year plan, and work to solidify foundation for next 5-years Net Sales Operating Profit (Trillions of yen) （Billions of yen） 5 1,000 4.65T 4.51T Net Sales 4.03T 4.18T 4 800 3.51T 3 600 Operating 466.0B 444.9B Profit 353.4B 375.4B
Slide 16: Supplementary Information
Supplementary Information
Slide 17: 2025 Operating Profit Analysis (vs FY 2024 Actual)
2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2024 Actual) (Billions of yen) +152.2 +1.0 -14.5 -43.1 -33.7 Change in Net Sales, excluding FX -40.8 impact, for reference Printing: +75.2 Medical: +29.9 444.9 FX Details 466.0 Imaging: +123.6 Net Sales: -131.4 Industrial: +52.4 Co
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 99.9 99.0 +0.9% 448.4 441.5 +1.6% 457.7 -9.3 Office Office MFDs 149.2 156.3 -4.6% 637.6 647.0
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2025 FY 2024 Full Year 1Q 1Q Full Year Current Actual Actual Actual Projection Hardware +1% +5% +13% +11% JPY Non-hardware +1% 0% +14% +9% Production Hardware 0% +9% +1% +4% LC Non-hardware 0% +3% +3%
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 137.3 134.2 +2.3% 580.9 568.8 +2.1% 590.0 -9.1 Op. Profit 6.7 5.6 +20.2% 37.7 24.7 +52.9% 39.5 -
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 118.1 102.3 +15.5% 612.6 579.9 +5.6% 627.3 -14.7 Network Cameras & Others 94.0 73.2 +28.3% 398.9 3
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 1Q Full Year 2025 2025 2025 2024 % 2024 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 50.5 47.0 +7.4% 289.5 253.4 +14.3% 305.5 -16.0 Industrial Equipment 17.0 20.4 -16.7%