Canon Inc. FY 2015 Results

Transcription

1 Canon Inc. FY 215 Results January 27, 216 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 assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as anticipate, believe, estimate, expect, intend, may, plan, project or should and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon s targeted customers, inability to meet efficiency and cost reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this presentation. A detailed description of these and other risk factors is included in Canon s annual report on Form 2-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.

2 Agenda 4Q/FY 215 Results P3 6 FY 216 s P7 1 Details by Business (4Q/FY 215 Results and FY 216 s) P11 16 Financial Situation P17 19 Supplementary Information P2 25 2

3 FY 215 in Summary External Environment Global economic growth rate Lowest since the collapse of Lehman Brothers Our markets Also impacted by further slowdown in emerging markets Results Sales increase Lower camera sales offset by Office and Industry and Others Profit decrease Increase in expenses due to active investment towards new businesses 3

4 Summary of Results 4Q/FY 215 Actual 4Q FY Pct Pct. Actual Actual Change Actual Actual Change Net Sales 1,42.6 1, % 3,8.3 3, % Gross Profit % 1, , % (% Sales) 5.1% 48.6% 5.9% 49.9% Op. Profit % % (% Sales) 1.3% 9.3% 9.3% 9.8% Net Income Attributable to Canon Inc % % (% Sales) 6.6% 6.4% 5.8% 6.8% Foreign Exchange Rate Yen 1USD Yen 1EURO

5 Transition in Sales and Operating Profit FY 215 Actual v. FY 214 Actual FY Sales Op. Profit FY 214 Actual 3, Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Sales Volume Impact Change in Exchange Rate(FY) 1USD: 1EURO: to yen to yen Office Imaging System -19. Industry and Others Total Others Total Change FY 215 Actual 3,

6 (Trillions of yen) 4 Growth of New Businesses Through Horizontal Expansion and M&A New Businesses Existing Industry and Others Existing Office Existing Imaging System Major New Businesses 3 9% 13% 15% Horizontal Expansion Cinema EOS Machine Vision 2 1 FY1 FY11 FY12 FY13 FY14 FY16 M&A Commercial printing Océ Network cameras Axis Milestone Nanoimprint Molecular Imprints 6

7 Assumptions FY 216 Average Exchange Rate Yen-1USD Yen-1EURO FY yen yen 13. yen yen Impact of Exchange Rate Movement (FY16 Impact Given a One Yen Change) Net Sales Operating Profit USD 14. billion yen 4.6 billion yen EURO 6.9 billion yen 2.9 billion yen 7

8 Key Points FY 216 External Environment Global economy Driven by the U.S., emerging markets unclear Our markets Remain challenging for some period of time Outlook Sales increase Driven by B2B, offsetting lower camera sales Profit increase Cost reduction, improvement in R&D productivity 8

9 Summary of Projected Results FY 216 FY 216 FY 215 Actual Pct. Change Net Sales 3,85. 3, % Gross Profit 1, , % (% Sales) 5.5% 5.9% Op. Profit % (% Sales) 9.4% 9.3% Net Income Attributable to Canon Inc % (% Sales) 6.% 5.8% Foreign Exchange Rate Yen 1USD Yen 1EURO

10 Transition in Sales and Op. Profit FY 216 v. FY 215 Actual Sales Op. Profit FY 215 Actual 3, Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Sales Volume Impact Office Imaging System -5.2 Industry and Others Total Others Total Change FY 216 (Jan. 27, 216) 3, USD: 1EURO: Change in Exchange Rate to 12. yen to 13. yen 1

11 1, 4Q ,5 FY 3, 2,5 2, 1,5 1, Office 215 Actual Sales Monochrome Copiers Printers 565 Color Copiers Others 4Q14 1Q15 2Q15 3Q15 4Q15 2, , Growth Rate y/y (Unit Base) Office Total -5.5%(-5.7%) Printers -9.1%(-11.6%) -4.%(-2.7%) -3.4%(-3.1%) Copier Total -3.7%(-2.9%) Office Total +1.5%(-4.1%) Printers -.7%(-1.2%) Copiers Growth Rate y/y ( ) Local Currency Base Printers 4Q15 4Q15 Color +13% +15% -1% -2% Monochrome -7% -9% -33% -13% 534 2,111 Total +2% +1% -3% -11% Others -1.9%(.%) Others +2.6%(+.6%) 13.% 13.6% Color Ratio Op. Profit Op. Profit Ratio Copiers Printers 4Q15 4Q15 Value Base* 57% 56% 5% 51% Unit Base 48% 46% 18% 17% 14.8% 79 Op. Profit 13.2% -1.8% 13.5% Q14 1Q15 2Q15 3Q15 4Q15 Growth Rate y/y -.5% 14.% 13.9% 13.8% *Includes Consumables Growth Rate y/y 5 +5.%(+2.1%) FY (-2.2%) Copier Total +3.6%(+.2%) FY14 11

12 3, 2,5 Office FY 216 Sales Monochrome Copiers Printers Color Copiers Others Growth Rate y/y (Unit Base) Copiers Growth Rate y/y ( ) Local Currency Base Printers FY16(P) FY16(P) Color +15% +14% -2% +1% Monochrome -9% +3% -13% % Total +1% +8% -11% % Office Total +.2%(+1.7%) (P)= Color Ratio Value Base* Unit Base Op. Profit Copiers Printers FY16(P) FY16(P) 56% 57% 51% 5% 46% 49% 17% 17% *Includes Consumables Op. Profit Growth Rate y/y Op. Profit Ratio -4.1% 2, 2,79 2,111 2,115 Others +4.9%(+6.8%) 1,5 1, Printers -3.7%(-2.7%) 14.% 13.8% % %(+5.2%) FY14 FY16 -.7%(+.8%) Copier Total +1.6%(+3.3%) FY14 FY16 12

13 6 4Q 4 2 Imaging System 215 Actual Sales 42 Cameras IJP Others Growth Rate y/y ( ) Local Currency Base 366 IJP -2.3%(-1.9%) Cameras -13.4%(-13.9%) Growth Rate y/y (Unit Base) Interchangeable Lens Digital Cameras Compact Digital Cameras 14.5% 58 4Q15 Op. Profit 11.1% 29-5% -12% -27% -27% Total Digital Cameras -18% -21% IJP -7% -5% 15.2% 5 Interchangeable Lens Digital Camera Ratio * 13.8% 42 4Q15 17.% 62 Value Base 83% 83% Unit Base 47% 46% * Proportion of Total Digital Cameras * Value Base Includes Interchangeable Lenses Op. Profit Imaging System Op. Profit Ratio Growth Rate y/y -8.9%(-9.1%) +6.6% 2, FY 1,5 1, 5 4Q14 1Q15 2Q15 3Q15 4Q15 1,343 1,256 1,264 Imaging System -5.9%(-1.5%) IJP -1.1%(-4.6%) Cameras -9.1%(-14.2%) 4Q14 1Q15 2Q15 3Q15 4Q15 Growth Rate y/y -5.7% 15.% 14.5% 14.5% FY14 FY14 13

14 2, 1,5 1, Imaging System FY 216 Sales Cameras IJP Others 1,343 1,264 Growth Rate y/y ( ) Local Currency Base Imaging System -5.1%(-3.2%) 1,2 IJP +.5%(+2.3%) Growth Rate y/y (Unit Base) Interchangeable Lens Digital Cameras Compact Digital Cameras FY16(P) -12% -7% -27% -24% Total Digital Cameras -21% -16% IJP -5% % Op. Profit Op. Profit Ratio (P)= Interchangeable Lens Digital Camera Ratio * FY16(P) Value Base 83% 85% Unit Base 46% 51% * Proportion of Total Digital Cameras * Value Base Includes Interchangeable Lenses Op. Profit Growth Rate y/y -6.2% 5 Cameras -8.%(-6.%) 14.5% 14.5% 14.3% FY14 FY16 FY14 FY16 14

15 -13.% 15.% 1.% 5.%.% -5.% -1.% 4Q Net Sales Gross Sales (Includes sales among Group businesses) Sales 3 Eliminations (Sales among Group businesses) -3 8 FY Net Sales Gross Sales (Includes sales among Group businesses) Sales Eliminations (Sales among Group businesses) Industry and Others Actual Sales Sales Eliminations Others Gross FY14 73 Lithography Equipment Q14 1Q15 2Q15 3Q15 4Q15 39 Growth Rate y/y ( ) Local Currency Base 67 Gross Lithography Equipment (Unit Sales) Industry and Others Net Sales %(+53.1%) Gross Sales Gross %(+76.7%) Gross 525 4Q14 FY14 4Q15 IC FPD %(+42.5%) (Litho. Equip.) 45 Industry and Others Net Sales +39.%(+37.5%) 3 Gross Sales +31.6%(+3.4%) (Litho. Equip.) +37.%(+35.6%) % Op. Profit Op. Profit Ratio IC Stepper Unit Breakdown by Light Source -8.8% 4Q14 FY14 4Q15 ArF KrF i-line *Calculation of operating profit ratio includes inter-segment sales % 1.4% % 4Q14 1Q15 2Q15 3Q15 4Q15 *Calculation of operating profit ratio includes inter-segment sales % FY % Op. Profit -2.5% 15

16 15.% 1.% 5.%.% -5.% -1.% -15.% Industry and Others FY 216 Lithography Equipment (Unit Sales) FY16(P) IC 8 86 FPD (P)= IC Stepper Unit Breakdown by Light Source FY16(P) ArF KrF i-line Sales Sales Eliminations Lithography Equipment Others 429 Growth Rate y/y ( ) Local Currency Base Industry and Others Net Sales +24.9% (+25.3%) 2 Op. Profit Op. Profit Ratio Op. Profit Net Sales Gross Sales (Includes sales among Group businesses) Gross Gross Sales +18.9% (+19.2%) Gross 624 (Litho.Equip.) *Calculation of operating profit ratio includes inter-segment sales % 1.2% Sales Eliminations (Sales among Group businesses) % (+16.%) % -2 FY14 FY16-4 FY14 FY16 16

17 Inventories 8 Amount 9 Turnover (Days) QE13 1QE14 2QE14 3QE14 4QE14 1QE15 2QE15 3QE15 4QE

18 1, 75 Capital Expenditure Increase in PP&E Net Income Attributable to Canon Inc. Depreciation 1, 75 Free Cash Flow Operating C/F Free C/F Investing C/F FY13 FY14 FY16 FY13 FY14 FY16 18

19 Cash on Hand and Return to Shareholders Cash on Hand (Year-end) Dividend % Cash-on hand Regular Dividend (Yen) Cash-on-hand (In months of 2nd-half net sales, except FYE16, which is based on full-year net sales) 4 15 Commemorative Dividend marking the 75th Anniversary of the Company's Establishment Payout Ratio (Consolidated Basis) % 1.% % 9.% 8.% % 58.3% % 64.6% % 6.% 5.% 4.% -1 3.% -2 2.% FYE12 FYE13 FYE14 FYE15 FYE16 Note : Approx. 1, 15, 5 and 15 billion yen was used to acquire own shares in 211, 212, 213 and 214, respectively. The cumulative amount since 27 is approx. 1.5 trillion yen. FY11 FY12 FY13 FY14 Plan 19

20 Supplementary Information 2

21 Transition in Sales and Op. Profit FY 215 Actual v. Sales Op. Profit FY 215 (Oct. 27, 215) 3, Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Sales Volume Impact Office Imaging System -.1 Industry and Others Total Others Total Change FY 215 Actual 3, USD: 1EURO: Change in Exchange Rate to yen to yen Supplementary Information 21

22 Gross Profit Variance Analysis 4Q 215 Actual v. 4Q 214 Actual 4Q15 4Q14 Change 5 Gross Profit % Sales 5.1% 48.6% +1.5pt Forex Impact on Sales Sales Volume Impact Price Change Forex Impact on Costs Cost Reduction Total Change in Gross Profit Supplementary Information 22

23 Operating Profit Variance Analysis 4Q 215 Actual v. 4Q 214 Actual 4Q15 4Q14 Change Op. Profit % Sales 1.3% 9.3% +1.pt Total Change in Gross Profit Change in SG & A (Excluding Forex Impact) Change in SG & A (Forex Impact) Total Change in Operating Profit Supplementary Information 23

24 Interest Bearing Debt 5 4 Debt Debt/Total Assets 5.% 4.% 3 3.% 2 2.% % 2.1% 2.1%.%.% FYE11 FYE12 FYE13 FYE14 FYE15 1.%.% Supplementary Information 24

25 Financial Ratios (Yen) 9 15% 6 8.7% 8.4% 8.7% 7.4% 7.7% 1% 3 5.7% 5.6% % % 5.1% % FY12 FY13 FY14 FY16 % EPS(Basic) (Attributable to Canon Inc.) ROE ROA Supplementary Information 25