Canon Inc. · TSE:7751
Canon — Q2 2026 Earnings Presentation
22 slides from Canon's earnings presentation, Jul 27, 2026
Slide 1: Canon Inc. Second Quarter 2026 Results
Canon Inc. Second Quarter 2026 Results July 27, 2026 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 ◼ 2Q/1H 2026 Results P 2-5 ◼ FY 2026 Projection P 6-10 ◼ Financial Situation P 11-13 ◼ Summary P 14 ◼ Supplementary Information P 15-20 1
Slide 3: 2Q/1H 2026 Review
2Q/1H 2026 Review ◼ Market conditions remained weak in Europe, affected by Middle East situation, and in the U.S., where tariff impact persists. In printing equipment market, trend of postponed investment continued ◼ Net sales rose 3.6%, reaching record high for second quarter, driven by continued s
Slide 4: P&L (2Q/1H 2026 Results)
P&L (2Q/1H 2026 Results) 2Q 1st Half 2026 2025 2026 2025 % Change % Change (Billions of yen) Actual Actual Actual Actual Net Sales 1,180.9 1,140.2 +3.6% 2,274.5 2,198.6 +3.5% Gross Profit 617.7 534.8 +15.5% 1,122.9 1,035.7 +8.4% (% of Net Sales) 52.3% 46.9% 49.4% 47.1% Op. Expenses 458.5 417.0 892.3
Slide 5: 2Q 2026 Operating Profit Analysis
2Q 2026 Operating Profit Analysis (2Q 2026 Actual versus 2Q 2025 Actual) Change in Net Sales, excluding FX impact, for reference (Billions of yen) Printing: -18.6 Medical: -16.3 Imaging: +14.3 Industrial: -15.0 Others: -3.8 Total: -39.4 +58.0 +28.9 -4.7 -3.7 -1.4 -8.8 -11.5 -15.4 159.2 FX Details 11
Slide 6: 2Q/1H 2026 Financial Results by Business Unit
2Q/1H 2026 Financial Results by Business Unit 2Q 1st Half 2026 2025 2026 2025 % Change % Change (Billions of yen) Actual Actual Actual Actual Net Sales 629.4 610.6 +3.1% 1,239.9 1,221.6 +1.5% Printing Op. Profit 97.6 76.9 +26.9% 157.5 150.0 +5.0% (%) (15.5%) (12.6%) (12.7%) (12.3%) Net Sales 135.4 1
Slide 7: 2026 Outlook
2026 Outlook ◼ Raised operating profit projection by 9.0 billion yen, to reflect uncertain factors not included in previous projection Negative factors ◼ Impact from Middle East situation: Negative 34.6 billion yen • Expected normalization of sales now pushed back to October or later • Incorporated
Slide 8: 2026 Financial Projection
2026 Financial Projection (Full Year) 2026 2025 2026 Amount Current % Change Previous (Billions of yen) Actual Change Projection Projection Net Sales 4,800.0 4,624.7 +3.8% 4,765.0 +35.0 Gross Profit 2,268.0 2,162.0 +4.9% 2,219.0 +49.0 (% of Net Sales) 47.3% 46.7% 46.6% Op. Expenses 1,803.0 1,706.6 1
Slide 9: 2026 Operating Profit Analysis
2026 Operating Profit Analysis (FY 2026 Current Projection versus FY 2026 Previous Projection) Change in Net Sales, excluding FX (Billions of yen) impact, for reference Printing: -23.7 Medical: -43.8 Imaging: -0.7 Industrial: -9.3 Others: +15.0 Total: -62.5 +34.1 +1.2 +14.7 +37.5 -37.1 -0.8 -34.6 -6
Slide 10: Review of Business Structure
Review of Business Structure (Billions of yen) 2025 2026 2026 Full year Full year Full 1Q 2Q 1Q 2Q Current Previous Year Projection Projection Sales Cost -1.2 -0.5 -7.9 -0.7 -2.0 -15.1 -14.4 Structural Effect 5.0 4.9 22.0 0.8 2.1 8.2 4.7 Reform PL Impact 3.8 4.4 14.1 0.1 0.1 -6.9 -9.7 Production Cos
Slide 11: 2026 Financial Projection by Business Unit
2026 Financial Projection by Business Unit (Full Year) 2026 2025 2026 Amount Current % Change Previous (Billions of yen) Actual Change Projection Projection Net Sales 2,544.2 2,494.4 +2.0% 2,526.8 +17.4 Printing Op. Profit 256.0 255.8 +0.1% 254.5 +1.5 (%) (10.1%) (10.3%) (10.1%) Medical Net Sales 56
Slide 12: Inventory
Inventory ◼ Utilize inventory built up since end of last year following year-end sales season to support sales expansion in second half ◼ Plan to maintain higher-than-normal inventory levels at year-end in preparation for next year 2025 2026 Change (Amt: Billions of yen) Mar.-end Jun.-end Sep.-end D
Slide 13: Cash Flow
Cash Flow (Full Year) ◼ Generate 545.0 billion yen in operating CF, significantly exceeding last year’s level ◼ Invest in growth areas and deliver proactive, stable shareholder returns 2026 2026 2025 2024 Current Previous (Billions of yen) Actual Actual Projection Projection Net income 340.0 333.0 3
Slide 14: Return on Capital
Return on Capital ◼ ROE for 2026 projected to be 9.8% ◼ Advance efforts to enhance capital efficiency and profitability toward achieving Phase VII targets 14% ROE 12% PBR 9.4% (4.8% including Impairment Loss) 9.7% 9.8% 10% 7.9% 8.1% 8.2% 1.4x 8% 1.2x 1.1x 1.0x 6% 0.8x Cost of Capital 5% to 6％ 4% 0.9
Slide 15: Summary
Summary ◼ In 2026 – first year of five-year plan – deliver higher revenue and profit, while elevating management quality to lay foundation for future growth Net Sales Operating Profit （Billions of yen） (Trillions of yen) 6 1,200 5.6T 4.80T 5.0T 5 1,000 4.51T 4.62T Net Sales 4.18T 4.03T 4 800 3.51T 3
Slide 16: Supplementary Information
Supplementary Information
Slide 17: 2026 Operating Profit Analysis
2026 Operating Profit Analysis (FY 2026 Projection versus FY 2025 Actual ) (Billions of yen) +15.9 +18.6 +4.4 +55.8 -6.8 -48.5 +39.6 Change in Net Sales, excluding FX -69.4 impact, for reference Printing: -47.0 FX Details Medical: -31.2 Net Sales: +195.9 +64.1 455.4 Imaging: 465.0 Cost of Sales: -64
Slide 18: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Production 116.1 103.3 +12.4% 469.0 437.3 +7.3% 468.3 +0.7 Office Office MFDs 167.4 161.2 +3.8% 653.3 631
Slide 19: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware 2026 2025 Full Year Full Year 2Q 2Q Projection Actual Hardware +12% +9% -12% -4% JPY Non-hardware +13% +6% -4% +1% Production Hardware +1% +4% -7% -5% LC Non-hardware +1% +1% 0% 0% Hardware +1% +4% -7% -
Slide 20: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Net Sales 135.4 142.0 -4.6% 568.2 580.6 -2.1% 601.4 -33.2 Op. Profit 3.1 5.1 -38.5% 22.8 32.8 -30.4% 38.2
Slide 21: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Cameras 175.4 155.4 +12.9% 698.0 625.5 +11.6% 674.8 +23.2 Network Cameras & Others 131.4 105.3 +24.8% 503.
Slide 22: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 2Q Full Year 2026 2025 2026 2025 2026 % % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Optical Equipment 61.9 61.2 +1.0% 262.2 256.4 +2.3% 260.1 +2.1 Industrial Equipment 16.4 31.2 -47.3% 91