Canon Inc. · TSE:7751
Canon — FY2024 Earnings Presentation
26 slides from Canon's earnings presentation, Jan 30, 2025
Slide 1: Canon Inc. FY 2024 Results
Canon Inc. FY 2024 Results January 30, 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 statements oth
Slide 2: Agenda
Agenda ◼ FY 2024 Results P 2～6 ◼ FY 2025 Projection P 7～12 ◼ Financial Situation P 13～15 ◼ Summary P 16 ◼ Supplementary Information P 17～24 1
Slide 3: Medical Business Impairment Loss
Medical Business Impairment Loss ◼ Impacted from changes in external environment (market stagnation, inflation), conducted review of plans, and booked impairment loss of 165.1 billion yen on goodwill tied to medical business ◼ No change in policy to cultivate medical into core business as grow over
Slide 4: Review of 2024
Review of 2024 ◼ In the markets in which we compete, some weakening of demand, but overall solid ◼ 4Q sales of cameras and laser printers up more than 10%, network camera and lithography equipment sales up more than 30% ◼ Full-year net sales up 7.9%, exceeded record high sales of 2007, achieved 4.5
Slide 5: P&L (FY 2024 Results)
P&L (FY 2024 Results) Including Impairment Loss 2024 v.s. Previous 2024 2023 Amount 2024 v.s. 2023 (Billions of yen) % Change Previous Projection Actual Actual Change Actual % Change Projection Amt. Change Net Sales 4,509.8 4,181.0 +7.9% 4,540.0 -30.2 4,509.8 +7.9% -30.2 Gross Profit 2,143.1 1,968.9
Slide 6: FY 2024 Operating Profit Analysis
FY 2024 Operating Profit Analysis (FY 2024 Actual versus FY 2023 Actual) (Billions of yen) FX Details Net Sales: +201.9 Cost of Sales: -79.0 Op. Expenses: -71.6 Change in Net Sales, excluding FX impact, for reference Printing: +45.5 Medical: -5.6 Imaging: +34.2 Industrial: +34.8 Others: +16.8 Total:
Slide 7: 2024 Financial Results by Business Unit
2024 Financial Results by Business Unit (Full year) 2024 2024 2024 2023 Amount Actual (Billions of yen) % Change Previous Actual Actual Change (incl. Impairment Projection Loss) Net Sales 2,522.7 2,346.1 +7.5% 2,516.0 +6.7 Printing Op. Profit 289.9 228.3 +27.0% 288.0 +1.9 (%) (11.5%) (9.7%) (11.4%)
Slide 8: 2025 Outlook
2025 Outlook ◼ Even amid global economic uncertainty, expect market environment to be solid overall ◼ Growing customer demand of semiconductor lithography equipment, medical, network cameras, and commercial printing, contributing to continued growth in 2025 ◼ Aiming to grow sales of office MFDs, and
Slide 9: Review of Business Structure (Sales/Production)
Review of Business Structure (Sales/Production) Sales Companies Production Sites ・Organization restructuring ・Consolidation of sites ・DX promotion ・Return to domestic production ・Sales channel review through Automation, in-house production → Optimize workforce, → Raise utilization rates, raise asset
Slide 10: Review of Business Structure (Medical)
Review of Business Structure (Medical) Medical 2024-2025 Cost of Infrastructure Optimal distribution of Development, Development (Headquarters) (Billions of yen) production, and management Integration FY 2024 FY 2025 Total Canon Inc. CMSC CapEx 4.5 5.5 10.0 Expense 0.5 2.5 3.0 Medical Business Innov
Slide 11: 2025 Financial Projection
2025 Financial Projection (Full Year) Incl. Impairment Loss FY 2025 FY 2024 (Billions of yen) % Change % Change Projection Actual Net Sales 4,736.0 4,509.8 +5.0% Gross Profit 2,240.5 2,143.1 +4.5% (% of Net Sales) 47.3% 47.5% Op. Expenses 1,721.5 1,698.2 (% of Net Sales) 36.3% 37.6% Op. Profit 519.0
Slide 12: 2025 Operating Profit Analysis
2025 Operating Profit Analysis (FY 2025 Projection versus FY 2024 Actual) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Printing: +68.4 Net Sales: -49.6 Medical: +27.7 Cost of Sales: +17.4 Imaging: +122.2 Op. Expenses: +16.0 Industrial: +68.7 Others: +3.3 Total
Slide 13: 2025 Financial Projection by Business Unit
2025 Financial Projection by Business Unit (Full Year) FY 2025 FY 2024 (Billions of yen) % Change Projection Actual Net Sales 2,558.0 2,522.7 +1.4% Printing Op. Profit 323.6 289.9 +11.6% (%) (12.7%) (11.5%) Medical Net Sales 590.0 568.8 +3.7% Op. Profit 39.5 24.7 +60.2% (%) (6.7%) (4.3%) Imaging Net
Slide 14: Inventory
Inventory ◼ 4Q sales as well as reduction in parts and materials lead to 50 billion yen reduction in inventory at the end of December compared to end of September ◼ Aiming for appropriate level of inventory of 60 or fewer days at the end of December 2025 (Billions of yen) FY 2023 FY 2024 Mar.-end Ju
Slide 15: Cash Flow
Cash Flow (Full Year) ◼ Operating CF expected to be 650 billion yen, exceeding last year ◼ Decided to acquire 100 billion yen of own shares and raise divided to 160 yen per share FY 2025 FY 2024 FY 2023 (Billions of yen) Projection Actual Actual Net income 364.0 325.1 264.5 Depreciation and amortiza
Slide 16: Return on Capital
Return on Capital ◼ 2024 ROE 9.4%, 1.2 points above last year ◼ Work for further improvement, achieve 2025 target of 10% or higher 14.0% ROE 12.0% PBR 10.6% 9.4% (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% 0.9x
Slide 17: Summary
Summary ◼ In 2025, the final year of current 5-year plan, basically complete structural reforms and work to lay the groundwork for next five year Operating Profit Net Sales （Billions of yen） (Trillions of yen) 5 4.74T 1,000 At start of Phase VI 4.51T Net Sales 4.03T 4.18T 2025 Targets 4 800 3.51T Ne
Slide 18: Supplementary Information
Supplementary Information
Slide 19: P&L (4Q/FY 2024 Results)
P&L (4Q/FY 2024 Results) 4Q Full Year 2024 2024 2023 2024 2023 Amount (Billions of yen) % Change % Change Previous Actual Actual Actual Actual Change Projection Net Sales 1,273.7 1,163.7 +9.5% 4,509.8 4,181.0 +7.9% 4,540.0 -30.2 Gross Profit 596.7 548.1 +8.9% 2,143.1 1,968.9 +8.8% 2,148.0 -4.9 (% of
Slide 20: 2024 Financial Results by Business Unit
2024 Financial Results by Business Unit (4Q/FY 2024 Results) 4Q Full Year 2024 2024 2023 2024 2023 Amount (Billions of yen) % Change % Change Previous Actual Actual Actual Actual Change Projection Net Sales 677.1 642.6 +5.4% 2,522.7 2,346.1 +7.5% 2,516.0 +6.7 Printing Op. Profit 84.5 72.4 +16.7% 289
Slide 21: 2024 Operating Profit Analysis
2024 Operating Profit Analysis (FY 2024 Actual versus FY 2024 Previous Projection) (Billions of yen) Change in Net Sales, excluding FX impact, for reference FX Details Printing: -16.4 Net Sales: +31.8 Medical: -14.5 Cost of Sales: -13.6 Imaging: -27.2 Op. Expenses: -9.1 Industrial: -8.0 Others: -0.1
Slide 22: Printing
Printing Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2024 2024 2023 % 2024 2023 % Amount 2025 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Production 125.7 119.2 +5.4% 441.5 401.6 +9.9% 442.5 -1.0 457.7 +3.7% Office Offic
Slide 23: Printing Hardware & Non-hardware Sales
Printing Hardware & Non-hardware Sales Net Sales Growth Rate of Printing Hardware & Non-hardware FY 2025 FY 2024 FY 2023 Full Year 4Q Full Year 4Q Full Year Projection Actual Actual Actual Actual Hardware +8% +7% +11% +13% +11% JPY Non-hardware +1% +4% +9% +8% +11% Production Hardware +9% +4% +4% +7
Slide 24: Medical
Medical Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2024 2024 2023 % 2024 2023 % Amount 2025 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Net Sales 161.3 164.2 -1.8% 568.8 553.8 +2.7% 580.8 -12.0 590.0 +3.7% Op. Profit 8.
Slide 25: Imaging
Imaging Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2024 2024 2023 % 2024 2023 % Amount 2025 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Cameras 176.5 154.0 +14.6% 579.9 544.6 +6.5% 593.9 -14.0 627.3 +8.2% Network Camera
Slide 26: Industrial
Industrial Net Sales & Net Sales Growth Rate Y/Y (Billions of yen) 4Q Full Year Full Year 2024 2024 2023 % 2024 2023 % Amount 2025 % Previous Actual Actual Change Actual Actual Change Change Projection Change Projection Optical Equipment 93.6 68.8 +36.0% 253.4 212.6 +19.2% 255.0 -1.6 305.5 +20.6% In