Slide 1: Canon Inc. First Quarter 2012 Results
Canon Inc. First Quarter 2012 Results April 25, 2012 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 1Q 2012 Results P3 – 5 FY 2012 Projections P6 – 9 Details by Business P10 – 15 Financial Situation P16 – 18 Supplementary Information P19 – 24 April 25, 2012 Canon Inc. 2
Slide 3: 1Q 2012 in Summary
1Q 2012 in Summary External Environment Only a gradual recovery in the global economy Continued weakness in Europe Deceleration in emerging markets Yen’s appreciation Results Achieved a third consecutive quarter of operating-profit and net-income growth, despite a slight decrease in net sa
Slide 4: Summary of Results
Summary of Results 1Q 2012 Actual (Billions of yen) 1Q 2012 1Q 2011 Pct. Change Actual Actual Net Sales 829.2 839.2 -1.2% Gross Profit 390.9 406.2 -3.8% (% Sales) 47.1% 48.4% Op. Profit 82.7 82.5 +0.2% (% Sales) 10.0% 9.8% Net Income Attributable to Canon Inc. 61.5 55.5 +11.0% (% Sales) 7.4% 6.6% Fo
Slide 5: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit 1Q 2012 Actual v. 1Q 2011 Actual (Billions of yen) Sales Op. Profit 1Q 2011 Actual 839.2 82.5 Foreign Exchange Impact Change in Exchange Rate -22.7 -9.8 (Net Sales, Cost of Sales, Expenses) •1USD: 82.28 to 79.72 yen •1EURO: 112.86 to 104.57 yen Sales Volume Impact
Slide 6: Assumptions
Assumptions 2012 Current Projection Average 2Q-4Q12 FY12 FY11 Exchange Rate Yen-1USD 80.00 yen 79.94 yen 79.55 yen Yen-1EURO 105.00 yen 104.91 yen 110.72 yen Impact of Exchange Rate Movement (2Q-4Q Impact Given a One Yen Change) Net Sales Operating Profit USD 15.7 billion yen 7.8 billion yen
Slide 7: Key Points FY2012
Key Points FY2012 External Environment Global economy pulled by emerging markets, amid unstable and unclear situation Continued yen’s appreciation Outlook Build solid foundation for growth to achieve 2015 targets in “Phase IV of Excellent Global Corporation Plan” Through advancements made in man
Slide 8: Summary of Projected Results
Summary of Projected Results FY 2012 Current Projection (Billions of yen) FY 2012 FY 2011 Pct. Change Current Projection Actual Net Sales 3,900.0 3,557.4 +9.6% Gross Profit 1,867.0 1,736.8 +7.5% (% Sales) 47.9% 48.8% Op. Profit 450.0 378.1 +19.0% (% Sales) 11.5% 10.6% Net Income Attributable to Cano
Slide 9: Transition in Sales and Op. Profit
Transition in Sales and Op. Profit FY 2012 Current Projection v. FY 2012 Previous Projection (Billions of yen) Sales Op. Profit Previous Projection (Jan. 30, 2012) 3,750.0 390.0 Change in Exchange Rate Foreign Exchange Impact •1USD: 75.00 to 79.94 yen +158.4 +77.4 •1EURO: 100.00 to 104.91 yen (Net S
Slide 10: Office
Office 1Q12 Growth rate y/y (Unit base) Copiers Printers 1Q12 Color ratio Copiers Printers 1Q 2012 Actual Color +13% +5% Value base* 55% 43% Monochrome -5% -15% Unit base 37% 15% Total +1% -13% (Billions of yen) Sales Growth rate y/y ( ) Local currency base *Includes consumables 800 Monochrome copie
Slide 11: Office
Office FY12 Growth rate y/y (Unit base) Copiers Printers FY12 Color ratio Copiers Printers FY 2012 Projection Color +22% +2% Value base* 55% 45% Monochrome +10% -5% Unit base 36% 13% Total +14% -4% (Billions of yen) Sales Growth rate y/y ( ) Local currency base *Includes consumables 3,000 Monochrome
Slide 12: Consumer
Consumer Growth Rate y/y (Unit Base) 1Q12 D SLR Ratio * 1Q12 Digital Cameras +4% Value Base 73% 1Q 2012 Actual IJP -12% Unit Base 28% * Proportion of digital camera total (Billions of yen) Sales Growth rate y/y ( ) Local currency base 600 Cameras IJP Others Op.Profit Consumer +4.8%(+8.3%) Op. Profit
Slide 13: Consumer
Consumer Growth Rate y/y (Unit Base) FY12 D SLR Ratio * FY12 Digital Cameras +20% Value Base 74% FY 2012 Projection IJP +1% Unit Base 29% * Proportion of digital camera total (Billions of yen) Sales Growth rate y/y ( ) Local currency base 2,500 Cameras IJP Others Consumer 2,000 +20.4%(+21.5%) Op.Pro
Slide 14: Industry and Others
Industry and Others Lithography Equipment IC Stepper Unit Breakdown by Light Source (Unit Sales) 1Q11 1Q12 1Q 2012 Actual 1Q11 1Q12 ArF Dry 0 0 IC 11 13 ArF Immersion 0 0 LCD 5 5 KrF 0 2 (Billions of yen) Sales Growth Rate y/y ( ) Local Currency Base Total 16 13 i-line 11 11 180 Sales Eliminations L
Slide 15: Industry and Others
Industry and Others Lithography Equipment IC Stepper Unit Breakdown by Light Source FY12 FY12 (Unit Sales) FY11 Previous Current FY 2012 Projection FY12 FY12 Projection Projection FY11 Previous Current ArF Dry 0 0 0 Projection Projection ArF 0 0 0 (Billions of yen) Sales IC Growth Rate y/y ( ) Local
Slide 16: Inventories
Inventories 800 90 Amount (Billions of yen) 80 Turnover (days) 700 70 54 56 60 52 600 49 45 46 46 554 50 42 518 35 40 500 471 479 477 456 30 428 436 400 385 20 10 300 0 1QE10 2QE10 3QE10 4QE10 1QE11 2QE11 3QE11 4QE11 1QE12 April 25, 2012 Canon Inc. 16
Slide 17: Capital Expenditure Free Cash Flow
Capital Free Cash Flow Expenditure (Billions of yen) (Billions of yen) 1,000 1,000 Increase in PP&E Operating C/F Net Income Attributable to Canon Inc. Free C/F Depreciation Investing C/F 750 750 402 241 500 500 190 160 290 247 250 249 132 744 213 611 560 540 250 250 470 380 370 370 342 315 300 300
Slide 18: Cash on Hand
Cash on Hand Cash on Hand (Year-end) 1500 4 Cash-on hand (Bilions of yen) Cash-on-hand 3.5 (In months of 2nd-half net sales, except FYE12, which is based on full-year net sales) 2.8 3 1000 2.5 2.5 2.5 2.4 2.5 2.1 841 795 773 770 770 2 679 1.5 500 1 0.5 0 0 FYE08 FYE09 FYE10 FYE11 FYE12 FYE12 Previou
Slide 19: Supplementary Information
Supplementary Information April 25, 2012 Canon Inc. 19
Slide 20: Transition in Sales and Operating Profit
Transition in Sales and Operating Profit FY 2012 Current Projection v. FY 2011 Actual (Billions of yen) Sales Op. Profit FY 2011 Actual 3,557.4 378.1 Change in Exchange Rate Foreign Exchange Impact •1USD: 79.55 to 79.94 yen -36.3 -15.0 •1EURO: 110.72 to 104.91 yen (Net Sales, Cost of Sales, Expenses
Slide 21: Gross Profit Variance Analysis
Gross Profit Variance Analysis 1Q 2012 Actual v. 1Q 2011 Actual (Billions of yen) 1Q12 1Q11 Change (Billions of yen) Gross Profit 390.9 406.2 -15.3 % Sales 47.1% 48.4% -1.3 pt. 50 10.9 5.3 2.7 0.8 0 -12.3 -15.3 -22.7 -50 Forex Sales Price Forex Cost Others Total Impact Volume Change Impact Reduction
Slide 22: Operating Profit Variance Analysis
Operating Profit Variance Analysis 1Q 2012 Actual v. 1Q 2011 Actual (Billions of yen) 1Q12 1Q11 Change Op. Profit 82.7 82.5 +0.2 (Billions of yen) % Sales 10.0% 9.8% +0.2 pt. 50 7.9 7.6 0.2 0 -15.3 -50 Total Change in Change in Total Change in SG & A SG & A Change in Gross Profit (Excluding (Forex I
Slide 23: Interest Bearing Debt
Interest Bearing Debt (Billions of yen) 50 5.0% Debt Debt/Total Assets 40 4.0% 30 3.0% 20 2.0% 15 14 11 12 10 10 1.0% 0.4% 0.3% 0.3% 0.3% 0.4% 0 0.0% FYE08 FYE09 FYE10 FYE11 1QE12 Supplementary Information 23 April 25, 2012 Canon Inc.
Slide 24: Financial Ratios
Financial Ratios (Yen) 900 15% 11.1% 11.1% 9.6% 600 9.2% 10% 7.3% 7.2% 6.3% 6.3% 4.9% 300 246.21 244.31 5% 3.4% 199.71 204.49 106.64 0 0% FY08 FY09 FY10 FY11 FY12 Current Projection EPS(Basic) ROE ROA (Attributable to Canon Inc.) Supplementary Information 24 April 25, 2012 Canon Inc.