Slide 1: Canon Inc. FY 2022 Results
Canon 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 statemen
Slide 2: Agenda
Canon Agenda m 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 m@ Excellent Global Corporation Plan Phase VI P17 @ Supplementary Information P18- 27
Slide 3: FY 2022 results overview
In 2022, the business environment remained challenging as it was hit by various headwinds, such as the spread of Omicron early in the year, Russia’s invasion of Ukraine, Shanghai’s lockdown, and accelerated global inflation. However, even in this unstable environment, demand for our products general
Slide 4: Results by Business Unit
Next, our results by Business Unit. As for Printing, although revenue was up significantly, due to growth in the unit sales of each product, profit was down, reflecting a significant increase in parts and logistical costs, and a decline in consumables sales, as home demand for inkjet printers peaked
Slide 5: FY 2023 projection and exchange rate assumptions
As for our exchange rate assumptions, wild fluctuations in the market, which is being swayed by interest rate policy, makes it difficult to project the future. However, taking into consideration the views of external institutions, we assumed 130 yen to the U.S. dollar and 140 yen to the euro, which
Slide 6: FY 2023 outlook by business group
In all four industry-oriented business groups, we aim to achieve sales and profit growth. In Printing, in addition to an increase in office MFD unit sales and service revenue, by working to lower parts and logistical costs, we will raise profitability. As for Medical, in addition to expanding sales
Slide 7: Factors impacting operating profit
Next, factors impacting operating profit. As for changes in exchange rates, at assumed rates, the impact would be a negative 19.4 billion yen on operating profit. As for changes in sales volume, we expect this to have a positive effect as all Business Units are projected to post sales growth. For se
Slide 8: Printing: office MFD market
As for the office MFD market, amid a post-COVID society where workplaces are dispersed, people are required to operate more efficiently in the office. As a result, the need for highly productive printing equipment is strong and we expect demand to remain solid going forward. As for our MFD hardware
Slide 9: Printing: laser and inkjet printers
In 2022, we focused on ramping up production volume in order to recover from a decline in unit sales, which was related to last year’s factory shutdowns due to COVID. As a result, we increased our unit sales of laser printers and inkjet printers by around 10% and 20%, respectively. As for consumable
Slide 10: Printing: commercial printing
Amid concern that the commercial printing market will also be impacted by economic slowdown, we are seeing acceleration in the shift from analog to digital printing, which is more cost effective and less labor intensive. In 2022, fourth quarter sales exceeded 100 billion yen for the first time on a
Slide 11: Imaging: camera market
As for the camera market, despite concerns that consumer spending will decline, the demand of users, which mainly consists of professionals and enthusiasts – people that enjoy taking still images and videos – remained rock solid. Thanks to this, and the launch of new mirrorless cameras by manufactur
Slide 12: Imaging: network cameras
In 2022, the network camera market returned to its original growth track as restrictions on economic activity were eased. Under this situation, by working to secure components that continued to be in short supply, we increased unit sales from the second quarter, which led to significant revenue grow
Slide 13: Medical: diagnostic imaging equipment
In 2022, the diagnostic imaging equipment market started to recover as overseas investment, which was held back by COVID, resumed. As for 2023, we expect the market to return to a normal growth track of around 2%. In 2022, we did not achieve our sales projection, due to product supply shortage cause
Slide 14: Industrial: semiconductor lithography market
As for the semiconductor device market in 2023, although we expect demand for power devices, analog devices, and sensors to remain solid, we also expect the overall market to shrink, due to a continued decline in memory, which is being impacted by declining demand for PCs, smartphones, and other dev
Slide 15: Inventory at end of December
Inventory at the end of December was 808.3 billion yen, 75.6 billion yen lower than the end of September, as we posted sales growth in all segments over the fourth quarter. Compared with the end of December 2021, inventory turnover increased by three days or around 160 billion yen. Approximately 50
Slide 16: Net income, cash flow and shareholder returns
In 2022, net income was 244 billion yen as the volume of product supply increased and led to sales. However, in order to increase the volume of product supply, inventory rose as we took early actions to secure parts. As sales were more concentrated in the fourth quarter than in past years, accounts
Slide 17: Sustainability measures
To realize a sustainable society, we have been strengthening environmental and social measures. In our efforts to address climate change, we declared our aim to achieve net-zero CO2 emissions for the whole product lifecycle by 2050. And in 2022, we worked to improve efficiency, especially at product
Slide 18: Excellent Global Corporation Plan Phase VI
In 2022, the 85th year of our founding, we surpassed 4 trillion yen in sales for the first time in 5 years since 2017, and achieved our second consecutive year of significant sales and profit growth. This growth in sales and profit was driven by new businesses, showing that we have made steady progr
Slide 19: Supplementary Information
Supplementary Information
Slide 20: FY 2022 Operating Profit Analysis (vs FY 2021)
FY 2022 Operating Profit Analysis Canon (FY 2022 Actual versus FY 2021 Actual) (Billions of yen) +34.7 +48.3 | a 88.3 us -60.2 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 In
Slide 21: FY 2022 Operating Profit Analysis (vs Previous Projection)
FY 2022 Operating Profit Analysis Canon (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 -9.6 en 40.6 +11.7 +1.1 -35.4 Change in Net Sales, excluding FX impact, for reference Printing: -18.9 Imaging: +2.0 Medica
Slide 22: Change in New Businesses Sales Composition Ratio
Change in Canon New Businesses Sales Composition Ratio @ New Businesses Exsiting Businesses 22% 27% 29% FY 2017 FY 2022 FY 2023 Actual Actual Projection 20) 20
Slide 23: Net Sales Growth Rate of Printing Hardware & Non-hardware
Canon Net Sales Growth Rate of Printing Hardware & Non-hardware FY 202 FY 2021 4Q Full Year Actual Actual spy Hardware +10% -7% +7% Office MEDs Non-hardware +5% +13%| + 10%| +6% +3% ic Hardware +11% +31% +17%| -12% +3%| Non-hardware +5% +2% +2%| +2% 0%! JPY Hardware +2% +33%| +34%| +22% +2% LPs Non-
Slide 24: Sales breakdown and unit data
Gillions of yen) FY 2021 4Q Full Year Actual Actual lOffice MFDs 614.4 571.4 127.8 478.4) Office [Others 346.7 321.1 76.1 278.7 961.1 892.5] 203.9 757.1 LPs 638.4 651.2| 147.7 563.1 Prosumer |IJPs 391.4 355.8 84.0) 329.4 1,029.8 1,007.0] 231.7 892.5 DILC Ratio / Digital Compact Camera (DCO) Units FY
Slide 25: 4Q 2022
4Q 2022
Slide 26: FY 2022 Financial Results (4Q 2022)
FY 2022 Financial Results (4Q 2022) Canon (Billions of yen) Ea 4Q 2021 Ackil % Change 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 120.5 71
Slide 27: FY 2022 Financial Results by Business Unit (4Q 2022)
FY 2022 Financial Results by Business Unit Canon (4Q 2022) 4Q 2021 (Billions of yen) ee % Change A, Net Sales 638.1 520.7 +22.6% Printing Op. Profit 52.6 48.4 +8.6% (%) (8.2%) (93%) 5 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 +17.4%
Slide 28: FY 2022 Operating Profit Analysis (4Q)
FY 2022 Operating Profit Analysis (4Q 2022 Actual versus 4Q 2021 Actual) Canon Change in Net Sales, excluding FX impact, for reference Printing: +46.2 Imaging: +249 (Billions of yen) Medical: +9.2 Industrial: “2.9 Others: -0.6 Total: +768 +29.8 al +24.2 FX Details Net Sales: +119.2 Cost of Sales: -6
Slide 29: Printing / Imaging
Printing / Imaging Canon Printing (Billions of yen) Net Sales Growth Rate Y/Y Unit Growth Rate Y/Y 4Q (Local Currency) 2021 % 4Q 2022 4Q 2022 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% Production 108.0)
Slide 30: Medical / Industrial
Medical / Industrial (4Q 2022) Canon Medical (Billions of yen) Net Sales Growth Rate Y/Y 4Q (Local Currency) 2021 % 4Q 2022 Actual Change Actual Net Sales 150.8 128.5 +174%| 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 Lith