Slide 1: Canon Inc. FY 2022 Results
Canon Inc. FY 2022 Results January 30, 2023 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 statements oth
Slide 2: Agenda
Agenda FY 2022 Results P2 – 3 FY 2023 Projection P4 – 6 Details by Business P7 – 13 (FY 2022 Results & FY 2023 Projection) Financial Situation P14 – 15 Sustainability Measures P16 Excellent Global Corporation Plan Phase VI P17 Supplementary Information P18 – 27 1
Slide 3: Key Message (FY 2022 Results)
Key Message (FY 2022 Results) Increased Y/Y unit sales by bringing about recovery in product supply Posted second consecutive year of significant sales and profit growth with additional tailwind of yen depreciation Net sales surpasses 4 trillion yen for first time in 5 years. Sales of new busi
Slide 4: FY 2022 Financial Results by Business Unit
FY 2022 Financial Results by Business Unit (Full Year) Achieved significant improvement in Imaging and Industrial profitability Posted record high sales and profit in Medical FY 2022 FY 2022 FY 2021 Amount (Billions of yen) % Change Previous Actual Actual Change Projection Net Sales 2,261.9 1,93
Slide 5: FY 2023 Financial Projection
FY 2023 Financial Projection (Full Year) Despite outlook for slowdown in economic growth, sustained momentum in our related markets Third consecutive year of sales and profit growth, and sales that are second only to our record high of 2007 FY 2023 FY 2022 (Billions of yen) % Change Projection A
Slide 6: FY 2023 Financial Projection by Business Unit
FY 2023 Financial Projection by Business Unit (Full Year) Printing – Raise profitability through service revenue expansion and cost savings Medical – Renew record high performance for third consecutive year Imaging and Industrial – Maintain high profitability FY 2023 FY 2022 (Billions of yen)
Slide 7: FY 2023 Operating Profit Analysis
FY 2023 Operating Profit Analysis (FY 2023 Projection versus FY 2022 Actual) Sales volume – Increase in profit thanks to higher sales volume in all Business Units Op. Expense – Sales related expenses and increase in R&D to expand future performance (Billions of yen) Change in Net Sales, excludin
Slide 8: Printing – Office
Printing – Office 2022 – Increased revenue through expanded sales of medium- to high-speed equipment and increased service revenue 2023 – Increase service revenue through expansion of install driven by unit sales growth facilitated by supply recovery (Billions of yen) Full Year Full Year 2022 20
Slide 9: Printing – Prosumer
Printing – Prosumer 2022 – Achieved revenue growth through increased sales supported by recovery in hardware supply 2023 – Maintain/raise profitability through expanded sales of high-end products (Billions of yen) Full Year Full Year 2022 2022 2021 % Amount 2023 % Previous Actual Actual Change C
Slide 10: Printing – Production
Printing – Production Accelerated shift toward digital commercial printing offering cost and labor saving advantages 2023 – Increase install base and link to service revenue expansion (Billions of yen) Full Year Full Year 2022 2022 2021 % Amount 2023 % Previous Actual Actual Change Change Projec
Slide 11: Imaging – Cameras
Imaging – Cameras 2022 – Increased unit sales by adding new EOS R series cameras that use APS-C sensors for first time Market size – 5.85 million units in 2023, same as last year 2023 – Expand mirrorless camera market share by strengthening EOS R series competitiveness (Billions of yen) Full Y
Slide 12: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others 2022 – Significantly increased revenue by expanding sales volume from second quarter 2023 – Raise competitive advantage by continuing R&D investment and strengthening cooperation with sales partners (Billions of yen) Full Year Full Year 2022 2022 2021 % Amount
Slide 13: Medical
Medical 2022 - Achieved record high sales and profit, on the back of overseas market recovery 2023 – Grow faster than the market’s 2% by increasing dealing with medical institutions, particularly in the United States where sales capability is being strengthened (Billions of yen) Full Year Full Y
Slide 14: Industrial – Optical & Industrial Equip.
Industrial – Optical & Industrial Equip. Semiconductor litho. equip. - Significantly expand sales to 195 units in 2023 Panel manufacturing equip. – Prepare for growing demand from and after 2024 (Billions of yen) Full Year Full Year 2022 2022 2021 % Amount 2023 % Previous Actual Actual Change Ch
Slide 15: Inventory
Inventory At end of 2022, work-in-process inventory increased due to efforts to secure parts at an early stage. Inventory of finished goods held by sales companies also increased amid supply improvement 2023 – Expect inventory level to come down as procurement environment improves (Billions of y
Slide 16: Cash Flow
Cash Flow (Full Year) 2022 – Raise dividend by 20 yen, 100 billion yen in share buyback 2023 – Aiming for over 600 billion yen in operating cash flow Looking to increase capital spending by 50 billion yen and fully repaying debt FY 2023 FY 2022 FY 2021 Projection Actual Actual (Billions of yen
Slide 17: Sustainability Measures
Sustainability Measures ■Strengthening environmental and social measures to realize sustainable society Climate change: 1. Target lifecycle CO2 emissions per product: 2. Total CO2 emission: Continued achievement of average 3% Reduction of 23% from 2013 improvement per year （Global) LCCO2 Improveme
Slide 18: Excellent Global Corporation Plan Phase VI
Excellent Global Corporation Plan Phase VI Work to expand the strength of each business group and achieve third consecutive year of sales and profit growth (Operating Profit: Billions of yen) (Net Sales: Trillions of yen) 5 1,000 Over 4,500.0 Billion Net Sales 4,287.0 Billion 4 4,031.4 Billion 800
Slide 19: Supplementary Information
Supplementary Information
Slide 20: FY 2022 Operating Profit Analysis (vs FY 2021 Actual)
FY 2022 Operating Profit Analysis (FY 2022 Actual versus FY 2021 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Printing: +95.5 Net Sales: +340.0 Imaging: +50.8 Cost of Sales: -162.8 Medical: -0.3 Op. Expenses: -88.9 Industrial: -16.3 Others: +13.6 Total
Slide 21: FY 2022 Operating Profit Analysis (vs Previous Projection)
FY 2022 Operating Profit Analysis (FY 2022 Actual versus FY 2022 Previous Projection) (Billions of yen) FX Details Net Sales: -25.5 Cost of Sales: +10.4 Op. Expenses: +5.5 Change in Net Sales, excluding FX impact, for reference Printing: -18.9 Imaging: +2.0 Medical: -6.3 Industrial: -5.5 Others: -5.
Slide 22: New Businesses Sales Composition Ratio
Change in New Businesses Sales Composition Ratio New Businesses Exsiting Businesses 100% 80% 60% 40% 20% 22% 27% 29% 0% FY 2017 FY 2022 FY 2023 Actual Actual Projection 20
Slide 23: Net Sales Growth Rate of Printing Hardware & Non-hardware
Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2023 FY 2022 FY 2021 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Hardware +10% +50% +30% -7% +7% JPY Non-hardware +5% +13% +10% +6% +3% Office MFDs Hardware +11% +31% +17% -12% +3% LC Non-hardware +5% +2% +2%
Slide 24: Office/Prosumer - Net Sales by Product Category
Office/Prosumer - Net Sales by Product Category (Billions of yen) FY 2023 FY 2022 FY 2021 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Office MFDs 614.4 165.4 571.4 127.8 478.4 Office Others 346.7 87.2 321.1 76.1 278.7 961.1 252.6 892.5 203.9 757.1 LPs 638.4 173.3 651.2
Slide 25: 4Q 2022
4Q 2022
Slide 26: FY 2022 Financial Results (4Q 2022)
FY 2022 Financial Results (4Q 2022) 4Q 2022 4Q 2021 (Billions of yen) % Change Actual Actual Net Sales 1,157.2 955.4 +21.1% Gross Profit 518.3 437.9 +18.4% (% of Net Sales) 44.8% 45.8% Op. Expenses 421.0 362.5 (% of Net Sales) 36.4% 37.9% Op. Profit 97.3 75.4 +29.2% (% of Net Sales) 8.4% 7.9% IBT 12
Slide 27: FY 2022 Financial Results by Business Unit (4Q 2022)
FY 2022 Financial Results by Business Unit (4Q 2022) 4Q 2022 4Q 2021 (Billions of yen) % Change Actual Actual Net Sales 638.1 520.7 +22.6% Printing Op. Profit 52.6 48.4 +8.6% (%) (8.2%) (9.3%) Net Sales 242.4 181.3 +33.7% Imaging Op. Profit 44.3 21.9 +101.9% (%) (18.3%) (12.1%) Net Sales 150.8 128.5
Slide 28: FY 2022 Operating Profit Analysis (4Q 2022)
FY 2022 Operating Profit Analysis (4Q 2022 Actual versus 4Q 2021 Actual) Change in Net Sales, excluding FX impact, for reference Printing: +46.2 Imaging: +24.9 (Billions of yen) Medical: +9.2 Industrial: -2.9 Others: -0.6 Total: +76.8 FX Details Net Sales: +119.2 Cost of Sales: -61.7 Op. Expenses: -
Slide 29: Printing / Imaging (4Q 2022)
Printing / Imaging (4Q 2022) Printing (Billions of yen) Net Sales Growth Rate Y/Y Unit Growth Rate Y/Y 4Q (Local Currency) 2022 2021 % 4Q 2022 4Q 2022 Actual Actual Change Actual Actual Office 252.6 203.9 +23.9% Office +11.8% Office MFDs +27% Prosumer 277.5 231.7 +19.8% Prosumer +7.5% LPs -10% Produ
Slide 30: Medical / Industrial (4Q 2022)
Medical / Industrial (4Q 2022) Medical (Billions of yen) Net Sales Growth Rate Y/Y 4Q (Local Currency) 2022 2021 % 4Q 2022 Actual Actual Change Actual Net Sales 150.8 128.5 +17.4% Total +7.3% Op. Profit 10.0 8.2 +20.9% (% of Net Sales) 6.6% 6.4% Industrial (Billions of yen) Net Sales Growth Rate Y/Y