Slide 1: Canon Inc. First Quarter 2021 Results
Canon Inc. First Quarter 2021 Results April 26, 2021 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 assumpti
Slide 2: Agenda
Agenda Changes to Segments P2 1Q 2021 Results P3 – 5 FY 2021 Projection P6 – 9 Details by Business P10 – 17 (1Q 2021 Results & FY 2021 Projection) Financial Situation P18 – 19 Sustainability Measures P20 Supplementary Information P21 – 26 1
Slide 3: Changes to Segments
Changes to Segments Old Segments New Segments MFDs Office LPs Prosumer Others Production Office Printing Cameras Cameras IJPs Network Cameras (NWCs) & Others Others Imaging Imaging System Medical Medical System Lithography Equipment Lithography Equipment Industrial Equipment Others Others Industry &
Slide 4: 1Q 2021 Results Key Message
Key Message (1Q 2021 Results) External Environment (For Reference) Effects of COVID-19 remains (Billions of yen) 1Q 2021 1Q 2020 % Change 1Q 2019 Actual Actual Actual strong Net Sales 842.7 782.3 +7.7% 864.5 Gross Profit 384.4 358.7 +7.2% 390.4 Business Performance (% of Net Sales) 45.6% 45.8% 45.
Slide 5: FY 2021 Financial Results by Business Unit
FY 2021 Financial Results by Business Unit (1Q 2021 Actual versus 1Q 2020 Actual) Achieved sales and profit growth for Imaging, Medical and Industrial & Others Decrease in Printing sales, but stable profit 1Q 2021 1Q 2020 (Billions of yen) % Change Actual Actual Net Sales 469.4 477.8 -1.8% Print
Slide 6: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (1Q 2021 Actual versus 1Q 2020 Actual) Cost reduction and expense efficiency, major contributors to increased profit Change in Net Sales, excluding FX impact, for reference (Billions of yen) Printing: -15.1 Imaging: +26.4 Medical: +18.4 Industrial & Others: +21.7
Slide 7: FY 2021 Projection Key Message
Key Message (FY 2021 Projection) FX Assumptions Impact of exchange rate movement （2Q-4Q impact given a one yen change） 2Q-4Q 2021 FY 2021 Net Sales Op. Profit USD/Yen 105.00 yen 105.26 yen 8.8 billion yen 3.2 billion yen EUR/Yen 125.00 yen 125.65 yen 4.3 billion yen 2.0 billion yen External Environm
Slide 8: FY 2021 Financial Projection
FY 2021 Financial Projection (Full Year) Raised outlook. Exceed full-year performance of 2019, a pre-COVID level (For Reference) FY 2021 FY 2021 FY 2020 Amount FY 2019 (Billions of yen) Current % Change Previous Actual Change Actual Projection Projection Net Sales 3,500.0 3,160.2 +10.8% 3,400.0 +1
Slide 9: FY 2021 Financial Projection by Business Unit
FY 2021 Financial Projection by Business Unit (Full Year) Raised performance outlook for all Business Units FY 2021 FY 2021 FY 2020 Amount (Billions of yen) Current % Change Previous Actual Change Projection Projection Net Sales 1,954.8 1,804.4 +8.3% 1,919.8 +35.0 Printing Op. Profit 186.9 147.1 +
Slide 10: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (FY 2021 Current Projection versus Previous Projection) Weaker yen and increased sales volume contributing to higher profit Expected impact from higher input costs (raw materials and semiconductor components) FX Details (Billions of yen) Net Sales: +53.1 Cost of
Slide 11: Printing – Office
Printing – Office Lowered full-year projection – Decline in non-hardware sales due to another wave of COVID-19 infections Sales growth through expanded regional rollout of strong selling new products (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actua
Slide 12: Printing – Prosumer
Printing – Prosumer Continued strong sales of inkjet printers thanks to home demand Expand sales by capturing broad range of print demand through product lineup enhancement (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Chan
Slide 13: Printing – Production
Printing – Production Recovery in sales through further strengthening of product lineup and sales network expansion (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Office 185.0 200.9 -7.9% 786.6 723
Slide 14: Imaging – Cameras
Imaging – Cameras Camera demand firm, market size up slightly Significant increase in 1Q sales driven by EOS5, EOS6, and lenses. Raised full-year projection Announced development of EOS R3. Expand market share in full-frame segment (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Am
Slide 15: Imaging – Network Cameras & Others
Imaging – Network Cameras & Others Network camera market returns to double-digit growth. Plan to grow faster than the market Announced remote camera system for video production. Aiming to create new imaging businesses (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Pre
Slide 16: Medical
Medical Achieved sales and profit growth in 1Q as medical institutions that received government subsidies actively purchased equipment Aiming for market exceeding growth, through expanded sales of systems that command higher prices and enhanced sales force (Billions of yen) 1Q Full Year 2020 202
Slide 17: Industrial & Others – Lithography Equipment
Industrial & Others – Lithography Equipment Raised outlook for semiconductor lithography equipment unit sales in response to booming market Sold 20 FPD lithography units in the first quarter, significantly exceeding last year, thanks to progress made in equipment installation (Billions of yen) 1
Slide 18: Industrial & Others – Industrial Equipment
Industrial & Others – Industrial Equipment Although shift to OLED steadily progresses, seeing impact from change in customer plans (Billions of yen) 1Q Full Year 2020 2021 2021 2020 % 2020 % Amount Current Previous Actual Actual Change Actual Change Change Projection Projection Lithography Equipme
Slide 19: Inventory
Inventory Slight increase in March-end inventory due to efforts to resolve inventory shortage and build-up inventory for sales expansion Thorough inventory management while paying close attention to shortages in materials and the bottlenecks in shipping FY 2020 FY 2021 (Billions of yen) Mar.-end
Slide 20: Cash Flow
Cash Flow (Full Year) Generated free cash flow that exceeded last year through increased profit Full-year dividend projected to be 90 yen, 10 yen more than last year, while repaying debt FY 2021 FY 2021 FY 2020 FY 2019 Current Previous Actual Actual (Billions of yen) Projection Projection Net ca
Slide 21: Sustainability Measures: Published 2021 Sustainability Report
Sustainability Measures Published 2021 Sustainability Report Aiming to raise long-term corporate value through stakeholder dialogue Business strategy Growth strategy by industry group described from a sustainability point of view Basic policy towards creating value Review of Phase V Busine
Slide 22: Supplementary Information
Supplementary Information 21
Slide 23: Major Products in Each Segment
Major Products in Each Segment Printing Office Office multifunction devices (MFDs), Document solutions Laser multifunction printers (MFPs), Laser printers, Inkjet printers, Prosumer Image scanners, Calculators Digital continuous feed presses, Digital sheet-fed presses, Wide-format printers, Producti
Slide 24: FY 2021 Operating Profit Analysis
FY 2021 Operating Profit Analysis (FY 2021 Current Projection versus FY 2020 Actual) Change in Net Sales, excluding FX impact, for reference Printing: +146.5 (Billions of yen) Imaging: +69.7 Medical: +24.1 Industrial & Others: +87.3 Total: +327.6 FX Details Net Sales: +23.1 Cost of Sales: +3.7 Op. E
Slide 25: Net Sales Growth Rate of Printing Hardware & Non-hardware
Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2021 FY 2020 1Q Full Year 1Q Full Year Actual Projection Actual Actual Hardware +9% +21% -19% -21% JPY Non-hardware -21% +4% -3% -20% Office MFDs Hardware +7% +19% -17% -20% LC Non-hardware -22% +4% -1% -20% Hardware +3% +15% -21% -21% JPY
Slide 26: Color Ratio (Office MFDs & LPs)
Color Ratio (Office MFDs & LPs) FY 2021 FY 2020 1Q Full Year 1Q Full Year Actual Projection Actual Actual Net Sales 60% 61% 59% 59% Office MFDs Units 59% 61% 58% 59% Net Sales 51% 52% 53% 51% LPs Units 19% 21% 21% 21% Sales Growth by Monochrome & Color Office MFDs FY 2021 FY 2020 1Q Full Year 1Q Ful
Slide 27: DILC Ratio / DCC Units / Lithography Unit Breakdown
DILC Ratio / Digital Compact Camera (DCC) Units FY 2021 FY 2020 1Q Full Year 1Q Full Year Actual Projection Actual Actual DILC Ratio Net Sales * 89% 88% 83% 87% Units 67% 70% 60% 65% DCC Units (Millions) 0.33 1.25 0.40 1.48 * Net Sales Includes Interchangeable Lenses Semiconductor Lithography Equipm