FIRST QUARTER 2005 RESULTS

Transcription

1 FIRST QUARTER 25 RESULTS April 27, 25 Toshizo Tanaka Senior Managing Director, Group Executive Finance and Accounting Headquarters Canon Inc. 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 forwardlooking 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 1. First Quarter Results Summary of Results P.3 Transition in and Operating Profit P.4 Results by Product P Q&FY Projections Agenda Assumptions P.14 Summary of Projected Results P.15 Transition in and Operating Profit P.16 Projections by Product P Supplementary Information P

3 Summary of Results 1Q 25 Net sales Gross profit % sales Op. profit % sales Net income % sales Yen - 1USD Yen - 1EURO 1Q 25 Results % % % Q 25 Projection % % % Q 24 Results % % % Projection + 2.2% -.6% + 6.1% + 9.5% % change 1Q 24 Results + 5.7% + 3.6% + 7.3% + 1.4% 3

4 Transition in and Operating Profit 1Q 25 Actual v. 1Q 25 Projection Projection (Jan. 28, 25) Foreign exchange impact [net sales, cost of sales, expenses] volume impact Office Imaging Products Computer Peripherals Business Information Products Cameras Optical and Other Products Others Change Actual 1Q 25 Op. Profit USD 1EURO Change in Exchange Rate 13. to yen 135. to yen 4

5 Business Machines 1Q 25 1, ( ) Local currency base Operating Profit 3 OP margin 3% % 23.% 23.7% 2% %(+6.9%) % % 1Q4 1Q5 1Q5 Projection 1Q4 1Q5 1Q5 Projection % 5

6 Office Imaging Products 1Q Others Color Monochrome ( ) Local currency base +2.1(+2.3%) %(+2.7%) +19.5%(+19.2%) (Unit base) Copying Machines Color Monochrome +11% -2% -18% 1-8.1%(-7.8%) 1Q4 1Q5 1Q5 Projection 6

7 Computer Peripherals 1Q Others IJP LBP ( ) Local currency base +12.1%(+13.5%) %(+2.6%) (Unit base) Color Monochrome LBP +37% +29% 2 +3% IJP %(+19.3%) SFP MFP +16% +7% +14% 1Q4 1Q5 1Q5 Projection 7

8 Cameras 1Q ( ) Local currency base Operating Profit 1 OP margin 3% % 15.9% 14.9% 2% %(+2.1%) % % 4.1Q 5.1Q 5.1Q Projection 1Q4 1Q5 1Q5 Projection % 8

9 Cameras 1Q Video Cameras Digital Cameras Film Cameras/Lenses ( ) Local currency base +1.7%(+2.1%) %(-13.4%) (Unit base) Digital Cameras +21% %(+7.5%) 1Q4 1Q5 1Q5 Projection -6.3%(-5.7%) 9

10 New Digital SLR Camera EOS Kiss Digital N (EOS Digital Rebel XT, in U.S., EOS 35D Digital, in Europe) (Previous Model) Internally developed CMOS sensor approx. 6.3 megapixels DIGIC image processor Dimensions (W x H x D) 142 x 99 x 72.4mm weight 56g Cont. shooting speed - approx. 2.5 fps max. burst during cont. shooting 4 shots Internally developed CMOS sensor approx. 8. megapixels DIGIC II image processor Smallest in the series, world s lightest Dimensions (W x H x D) x 94.2 x 64mm weight 485g Cont. shooting speed - approx. 3 fps max. burst during cont. shooting 14 shots 1

11 Optical and Other Products 1Q 25 2 ( ) Local currency base Operating Profit 2 OP margin 15% % 9.4% 1.1% 1% %(1.1%) % 13 5% *Excluding inter-segment sales 1Q4 1Q5 1Q5 Projection % 1Q4 1Q5 1Q5 Projection *Calculation of operating profit ratio includes inter-segment sales 11

12 Optical and Other Products 1Q Others SPE %(+1.1%) 9-1.5%(-.9%) ( ) Local currency base IC Stepper Unit Breakdown By Light Source KrF ArF 9% 36% 55% i-line IC Stepper 3mm Ratio (Units) 3mm 48% 1Q4 1Q5 1Q5 Projection +16.5%(+16.%) SPE (Unit sales) 1Q4 IC 33 LCD 35 TTL 68 1Q5() Q

13 Operating Profit by Product 1Q 25 v. 1Q 24 1Q5 1Q4 Change Business Machines % sales 23.7% 22.3% Cameras % sales 14.9% 18.6% Optical and Other Products % sales 1.1% 1.5% Corporate and Eliminations % sales 17.%

14 Average Exchange Rate Assumptions 2-4Q 2-4Q Avg. FY5 FY4 Yen - 1USD 15. yen 14.9 yen yen Yen - 1EURO 135. yen yen yen Impact of Exchange Rate Movement (2-4Q impact given a one yen change) Yen - 1USD Yen - 1EURO 1. Billion yen 5.3 Billion yen Operating Profit 5.5 Billion yen 3.9 Billion yen 14

15 Summary of Projected Results 2Q&FY % sales Previous % sales 24 Results % sales Previous % change 24 Results 2Q Net sales Gross profit Op. profit Net income Yen - 1USD Yen - 1EURO % 14.7% 9.1% % 14.4% 9.1% % 14.1% 9.% +.2% + 1.% + 2.1% -.1% + 6.% + 6.% + 1.7% + 7.1% FY Net sales Gross profit Op. profit Net income Yen - 1USD Yen - 1EURO 3,65. 1, % 16.% 1.1% 3,63. 1, % 15.8% 9.9% 3, , % 15.7% 9.9% +.6% +.1% + 1.9% + 2.2% + 5.3% + 5.4% + 7.4% + 6.9% 15

16 Transition in and Operating Profit 2Q/FY 25 Projection v. 2Q/FY 25 Previous Projection 2Q Op. Profit FY Op. Profit Previous (Jan, 28, 25) , Foreign exchange impact [net sales, cost of sales, expenses] volume impact Change in Exchange Rate (2Q) 1USD 1EURO 13. to 15. Yen 135. to 135. Yen Office Imaging Products Computer Peripherals Business Information Products Cameras Optical and Other Products Others Change Change in Exchange Rate (FY) 1USD 1EURO 13. to 14.9 Yen 135. to Yen (Apr. 27, 25) ,

17 Office Imaging Products 2Q&FY Others Color Monochrome Q4 2Q5 2Q5 Previous +5.%(+5.7%) %(+24.1%) +21.1%(+21.4%) -5.%(-4.1%) ( ) Local currency base 1,5 1, 5 1,121 FY4 FY5 FY5 Previous +4.6%(+5.3%) 1,163 1, %(+19.1%) +16.2%(+16.7%) -3.2%(-2.3%) (Unit base) Copying Machines (2Q) +73% -8% -3% Copying Machines (FY) Color Monochrome Color Monochrome +29% -1% -6% 17

18 Steady Progress Toward Colorization Transition in Unit of Color Copying Machines Transition in Color Ratio 4 3 (Base year 22 equals 1) % 3% 2% Value base (includes consumables) Unit base 23% 18% 28% 32% 2 irc32 irc31 18 irc322 irc262 irc58 irc68 1% 3% 5% 9% 12% 1 FY2 FY3 FY4 FY5 % FY2 FY3 FY4 FY5 18

19 Others IJP LBP 27 Computer Peripherals 2Q&FY %(+1.2%) %(+16.8%) +5.3%(+8.5%) ( ) Local currency base 1,5 1, %(+1.2%) 1,15 1,228 1, %(+17.7%) +5.7%(+8.1%) (Unit base) LBP (2Q) Color Monochrome Color Monochrome LBP (FY) SFP MFP IJP (2Q) IJP (FY) +88% +26% +32% +55% +17% +21% +2% +65% +28% 2Q4 2Q5 2Q5 Previous FY4 FY5 FY5 Previous SFP MFP +9% +86% +22% 19

20 Steady Increase in Unit of Color LPBs Transition in Unit of Color LBPs Transition in Color Ratio 4 (Base year 22 equals 1) 371 4% Value base (includes consumables) Unit base 31% 34% 3 $499 model 3% 23% % 1% 16% 5% 5% 1% 13% 11 1 FY2 FY3 FY4 FY5 % FY2 FY3 FY4 FY5 2

21 Others IJP LBP 27 Computer Peripherals 2Q&FY %(+1.2%) %(+16.8%) +5.3%(+8.5%) ( ) Local currency base 1,5 1, %(+1.2%) 1,15 1,228 1, %(+17.7%) +5.7%(+8.1%) (Unit base) LBP (2Q) Color Monochrome Color Monochrome LBP (FY) SFP MFP IJP (2Q) IJP (FY) +88% +26% +32% +55% +17% +21% +2% +65% +28% 2Q4 2Q5 2Q5 Previous FY4 FY5 FY5 Previous SFP MFP +9% +86% +22% 21

22 Steady Increase in IJP Unit Transition in Unit of IJP (Base year 22 equals 1) 5 MFP SFP 4 3 Released 8 models Released 15 models FY2 FY3 FY4 FY5 *the above growth rate includes inkjet facsimiles 1 FY2 FY3 FY4 FY5 22

23 Cameras 2Q&FY Video Cameras Digital Cameras Film Cameras/Lenses %(+6.4%) 2-5.9%(-5.2%) +1.9%(+11.9%) ( ) Local currency base 1,5 1, %(+5.7%) %(+5.%) +6.9%(+8.%) (Unit base) Digital Cameras 2Q FY +45% +2% 2Q4 2Q5 2Q5 Previous -5.9%(-4.6%) FY4 FY5 FY5 Previous -5.%(-3.9%) 23

24 Continued Growth of Digital Cameras Transition in Unit of Digital Cameras Digital SLR Ratio (Millions of units) % Mkt. (Canon est.) Canon Share in units 17% 19% >7 Approx. 2% >8 2% 15% 4% 3% Value base Unit base 3% 37% % 5% 2% 1% 13% 2% 21% 7% 9% 11% FY2 FY3 FY4 FY5 % % FY2 FY3 FY4 FY5 24

25 Optical and Other Products 2Q&FY IC LCD TTL 5 Others SPE Q4 2Q5 2Q5 Previous SPE (Unit sales) 2Q %(+11.5%) %(+5.9%) +16.%(+14.7%) IC Stepper Unit Breakdown By Light Source i-line KrF 31% 69% IC Stepper 3mm Ratio (Units) 3mm 2Q5 (Previous ) *Excluding inter-segment sales 76% 2Q5 ( ) ( ) Local currency base IC Stepper Unit Breakdown 317 By Light Source FY4 FY5 FY5 SPE (Unit sales) IC LCD TTL +5.5%(+5.%) %(+3.7%) +7.%(+5.8%) Previous FY ArF i-line 2% KrF 39% 59% IC Stepper 3mm Ratio (Units) 3mm 62% FY5 (Previous ) FY5 ( )

26 Operating Profit by Product 25 Projection v. 24 Business Machines % sales Cameras % sales Optical and Other Products % sales Corporate and Eliminations % sales 2Q % % % 6.3% Projection FY % % % 16.% 24 2Q FY % % % 6.3% % % % 15.7% 26

27 Supplementary Information 27

28 Gross Profit Variance Analysis 1Q 25 v. 1Q 24 9 Gross Profit % sales 1Q % 1Q % Change pt Forex impact on sales volume impact -3 Price change Forex impact on costs Supplementary Information Cost reduction Others change in Gross profit 28

29 Operating Profit Variance Analysis 1Q 25 v. 1Q 24 9 Op. Profit % sales 1Q % 1Q % Change pt change in gross profit Change in SG&A Change in SG&A forex (excluding forex impact) impact change in operating profit Supplementary Information 29

30 Transition in and Operating Profit 1Q 25 v. 1Q actual Foreign exchange impact [net sales, cost of sales, expenses] volume impact Office Imaging Products Computer Peripherals Business Information Products Cameras Optical and Other Products Others Change 25 actual 1Q Op. Profit USD 1EURO Change in Exchange Rate to yen to yen Supplementary Information 3

31 Transition in and Operating Profit 2Q/FY 25 Projection v. 2Q/FY 24 Actual 2Q Op. Profit FY Op. Profit 24 actual , Foreign exchange impact [net sales, cost of sales, expenses] volume impact Change in Exchange Rate (2Q) 1USD 1EURO to 15. Yen to 135. Yen Office Imaging Products Computer Peripherals Business Information Products Cameras Optical and Other Products Others Change Change in Exchange Rate (FY) 1USD 1EURO to 14.9 Yen to Yen 25 (Apr. 27, 25) , Supplementary Information 31

32 Inventories Interest Bearing Debt (Days) Inventories Turn-over (Days) Debt Debt/ Assets 1.4% 15% 1% % 3.1% % 1.1% 5% FY1 FY2 FY3 FY4 1Q FY1 FY2 FY3 FY4 1Q5 % Supplementary Information 32

33 Capital Expenditure Free Cash Flow Capex Net income Depreciation Q4 1Q FY4 FY [Major Expenditures 25 (Each item listed is over 1 billion yen] Automated assembly line for cartridges New facility/building for development (Yako) New factory/building for lenses (Utsunomiya) Step up production of toner Increase production of CMOS sensors 15 1Q4 Supplementary Information Operating C/F Free C/F Investing C/F Q5-21 1Q4 1Q5 562 FY FY FY4 FY5 33

34 Financial Ratios (Yen) EPS (Basic) Dividends per share ROE ROA 12.2% 12.5% % % % % 16.8% % 15.5% % FY1 FY2 FY3 FY4 FY5 2% 15% 1% 5% % Supplementary Information 34