Slide 1: Canon Inc. FY 2021 Results
Canon Inc. FY 2021 Results January 27, 2022 Toshizo Tanaka Executive Vice President & CFO 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 forme
Slide 2: Agenda
Agenda FY 2021 Results P2 – 3 FY 2022 Projection P4 – 6 Details by Business P7 – 14 (FY 2021 Results & FY 2022 Projection) Financial Situation P15 – 16 Sustainability Measures P17 Excellent Global Corporation Plan Phase VI P18 Supplementary Information P19 – 29 1
Slide 3: Key Message (FY 2021 Results)
Key Message (FY 2021 Results) Significant growth in sales and profit from previous year, when performance declined due to COVID-19 Profit significantly exceeded 2019 thanks to reforms, including business portfolio transformation, structural reforms, and organizing businesses by industry FY 2021
Slide 4: FY 2021 Financial Results by Business Unit
FY 2021 Financial Results by Business Unit (Full Year) Profitability of Printing and Imaging recovered to double-digit level Medical posted record high performance FY 2021 FY 2021 FY 2020 Amount (Billions of yen) % Change Previous Actual Actual Change Projection Net Sales 1,938.8 1,804.4 +7.4% 2
Slide 5: FY 2022 Financial Projection
FY 2022 Financial Projection (Full Year) Continued high economic growth despite concerns about spread of Omicron Inflationary trend to continue as time is needed for parts and logistical constraints to improve Double-digit sales growth by resolving backorders and thanks to over 1 trillion yen
Slide 6: FY 2022 Financial Projection by Business Unit
FY 2022 Financial Projection by Business Unit (Full Year) All 4 groups post sales and profit growth Printing, Imaging, and Industrial & Others achieve double-digit profitability Medical posts record high performance second year in a row 2022 2021 (Billions of yen) % Change Projection Actual Ne
Slide 7: FY 2022 Operating Profit Analysis
FY 2022 Operating Profit Analysis (FY 2022 Projection versus FY 2021 Actual) Printing, Imaging, and lithography equipment post unit sales growth Expense ratio improves 1.2 points despite increases in expenses to expand sales and R&D spending (Billions of yen) Change in Net Sales, excluding FX im
Slide 8: Printing – Office
Printing – Office 2021 - Market continued to recover despite delay caused by renewed surge in COVID-19 cases 2022 - Aiming to grow sales at a double-digit rate by expanding sales of mid- and high-speed equipment and services (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Pr
Slide 9: Printing – Prosumer
Printing – Prosumer 2021 - Product supply shortages worsened due to decline in capacity utilization rates of production sites 2022 - Expand MIF and consumable sales (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous Actual Actual Change Change Projection Change Project
Slide 10: Printing – Production
Printing – Production Market shows solid recovery, nears pre-COVID level in 2022 In addition to expanding sales through improvement in product features, will also post solid growth in service revenue (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous Actual Actual Chan
Slide 11: Imaging – Cameras
Imaging – Cameras 2021 - Significant improvement in Imaging profitability 2022 - Market expected to grow 5% to 5.65 million units Capture growing demand for high-quality image expression, strengthening EOS R system (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous A
Slide 12: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others Network camera market returning to original growth trend Promote enhancement of solutions, aiming to also grow at double-digit rate in 2022 (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous Actual Actual Change Change Projection Chan
Slide 13: Medical
Medical 2021 - Achieved record high sales and profit, mainly thanks to expanded sales of CT systems 2022 - Maximize sales through continued focus on supplying products and strengthening sales capability in the United States (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Pre
Slide 14: Industrial & Others – Lithography Equipment
Industrial & Others – Lithography Equipment Significant growth in semiconductor lithography equipment unit sales amid strong demand Solid demand for FPD lithography equipment. Planning for sales to be 58 units in 2022 (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous
Slide 15: Industrial & Others – Industrial Equipment
Industrial & Others – Industrial Equipment Lower sales of OLED vacuum deposition equipment due to panel manufacturers ascertain investment timing (Billions of yen) Full Year Full Year 2021 2021 2020 % Amount 2022 % Previous Actual Actual Change Change Projection Change Projection Lithography Equip
Slide 16: Inventory
Inventory End of 2021 - Work-in-process and product inventory in transit to sales companies increased 2022 - Expect inventory level to come down thanks to easing of parts and logistical constraints (Billions of yen) FY 2020 FY 2021 Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Sep.-end D
Slide 17: Cash Flow (Full Year)
Cash Flow (Full Year) Operating cash flow progressively improving, thanks to recovery in performance from COVID crisis Invest in growth and strengthen financial constitution by repaying debt FY 2022 FY 2021 FY 2020 Projection Actual Actual (Billions of yen) Net cash provided by operating activit
Slide 18: Sustainability Measures
Sustainability Measures ■Established Sustainability Headquarters, reformulated and clearly stated “Approach to Sustainability” Environment: Aim for net-zero CO2 emissions by 2050 across entire product lifecycle 1. Target lifecycle CO2 emissions per product: 2. Total CO2 emission: Continued achieve
Slide 19: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI 2021 – Profit exceeded pre-COVID level of 2019 2022 – Accelerate growth to achieve 2025 targets (Net Sales: Trillions of yen) (Operating Profit: Billions of yen) 5 1,000 Over 4,500.0 Billion Net Sales 4 3,870.0 Billion 800 New Operating Businesses profi
Slide 20: Supplementary Information
Supplementary Information
Slide 21: FY 2021 Operating Profit Analysis (vs FY 2020 Actual)
FY 2021 Operating Profit Analysis (FY 2021 Actual versus FY 2020 Actual) (Billions of yen) FX Details Net Sales: +110.8 Cost of Sales: -29.0 Op. Expenses: -36.3 Change in Net Sales, excluding FX impact, for reference Printing: +52.3 Imaging: +80.1 Medical: +34.4 Industrial & Others: +79.8 Eliminatio
Slide 22: FY 2021 Operating Profit Analysis (vs Previous Projection)
FY 2021 Operating Profit Analysis (FY 2021 Actual versus FY 2021 Previous Projection) (Billions of yen) FX Details Net Sales: +8.5 Cost of Sales: -2.9 Op. Expenses: -2.0 Change in Net Sales, excluding FX impact, for reference Printing: -76.2 Imaging: -19.9 Medical: +13.5 Industrial & Others: -17.3 E
Slide 23: New Businesses Sales Composition Ratio
Change in New Businesses Sales Composition Ratio New Businesses Exsiting Businesses 100% 80% 60% 40% 20% 25% 28% 28% 26% 0% FY 2019 FY 2020 FY 2021 FY 2022 Actual Actual Actual Projection 21
Slide 24: Printing - Net Sales Growth Rate Y/Y (Hardware & Non-hardware)
Printing - Net Sales Growth Rate Y/Y (Hardware & Non-hardware) FY 2022 FY 2021 FY 2020 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Hardware +27% -7% +7% -9% -21% JPY Non-hardware +14% +6% +3% -18% -20% Office MFDs Hardware +27% -12% +3% -10% -20% LC Non-hardware +13% +
Slide 25: Office/Prosumer - Net Sales by Product Category
Office/Prosumer - Net Sales by Product Category (Billions of yen) FY 2022 FY 2021 FY 2020 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Office MFDs 573.5 127.8 478.4 127.5 456.7 Office Others 295.0 76.1 278.7 67.9 266.3 868.5 203.9 757.1 195.4 723.0 LPs 639.5 147.7 563.1
Slide 26: Office MFDs/LPs - Color Ratio
Office MFDs/LPs - Color Ratio FY 2021 FY 2020 4Q Full Year 4Q Full Year Actual Actual Actual Actual Net Sales 60% 60% 60% 59% Office MFDs Units 63% 59% 60% 59% Net Sales 48% 51% 51% 51% LPs Units 14% 16% 21% 21% Office MFDs - Net Sales Growth Rate Y/Y (Monochrome & Color) FY 2021 FY 2020 4Q Full Yea
Slide 27: 4Q 2021
4Q 2021
Slide 28: FY 2021 Financial Results (4Q 2021)
FY 2021 Financial Results (4Q 2021) 4Q 2021 4Q 2020 (Billions of yen) % Change Actual Actual Net Sales 955.4 945.7 +1.0% Gross Profit 437.9 414.3 +5.7% (% of Net Sales) 45.8% 43.8% Op. Expenses 362.5 338.1 (% of Net Sales) 37.9% 35.7% Op. Profit 75.4 76.2 -1.1% (% of Net Sales) 7.9% 8.1% IBT 71.6 80
Slide 29: FY 2021 Financial Results by Business Unit (4Q 2021)
FY 2021 Financial Results by Business Unit (4Q 2021) 4Q 2021 4Q 2020 (Billions of yen) % Change Actual Actual Net Sales 520.7 503.1 +3.5% Printing Op. Profit 48.4 55.4 -12.5% (%) (9.3%) (11.0%) Net Sales 181.3 185.3 -2.2% Imaging Op. Profit 21.9 23.8 -8.0% (%) (12.1%) (12.9%) Net Sales 128.5 122.8 +
Slide 30: FY 2021 Operating Profit Analysis (4Q 2021 vs 4Q 2020)
FY 2021 Operating Profit Analysis (4Q 2021 Actual versus 4Q 2020 Actual) Change in Net Sales, excluding FX impact, for reference Printing: -14.9 Imaging: -14.9 (Billions of yen) Medical: +1.2 Industrial & Others: -8.9 Eliminations: -2.9 Total: -40.4 FX Details Net Sales: +43.4 Cost of Sales: -17.5 O
Slide 31: Printing / Imaging (4Q 2021)
Printing / Imaging (4Q 2021) Printing (Billions of yen) 4Q Net Sales Growth Rate Y/Y Unit Growth Rate Y/Y (Local Currency) 2021 2020 % Actual Actual Change 4Q 2021 4Q 2021 Actual Actual Office 203.9 195.4 +4.4% Prosumer 231.7 234.1 -1.0% Office +0.3% Office MFDs -15% Production 85.1 73.6 +15.6% Pros
Slide 32: Medical / Industrial & Others (4Q 2021)
Medical / Industrial & Others (4Q 2021) Medical (Billions of yen) 4Q Net Sales Growth Rate Y/Y (Local Currency) 2021 2020 % Actual Actual Change 4Q 2021 Actual Net Sales 128.5 122.8 +4.6% Op. Profit 8.2 10.3 -20.0% Total +1.0% (% of Net Sales) 6.4% 8.4% Industrial & Others (Billions of yen) 4Q Net S