Canon Inc. FY 2012 Results

Transcription

1 Canon Inc. FY 212 Results January 3, 213 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 212 Results P3 5 FY 213 s P6 9 Details by Business (4Q/FY 212 Results and FY 213 s) P1 15 Financial Situation P16 18 Supplementary Information P

3 FY 212 in Summary External Environment Global economic slowdown due to Europe s debt crisis Yen s appreciation remains at a historically high level Results Posted net sales and profits decrease Strengthen business structure Build solid base for growth Sustained competitive product advantage through new product launches Maintained or improved market share of all core products Firmly maintained healthy financial constitution Healthy level of cash-on-hand (2.3 months of net sales) 3

4 Summary of Results 4Q/FY 212 Actual 4Q FY Pct Pct. Actual Actual Change Actual Actual Change Net Sales % 3, , % Gross Profit % 1,65. 1, % (% Sales) 45.4% 47.6% 47.4% 48.8% Op. Profit % % (% Sales) 8.2% 9.8% 9.3% 1.6% Net Income Attributable to Canon Inc % % (% Sales) 6.4% 6.4% 6.5% 7.% Foreign Exchange Rate Yen 1USD Yen 1EURO

5 Transition in Sales and Op. Profit FY 212 Actual v. Sales Op. Profit FY 212 (Oct. 25, 212) 3, Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Sales Volume Impact Office -2.2 Imaging System Industry and Others Total Others Total Change FY 212 Actual 3, USD: 1EURO: Change in Exchange Rate 79.8 to yen 11.3 to 12.8 yen 5

6 Assumptions FY 213 Average Exchange Rate FY13 Yen-1USD 85. yen yen Yen-1EURO 115. yen 12.8 yen Impact of Exchange Rate Movement (FY13 Impact Given a One Yen Change) Net Sales Operating Profit USD 19.7 billion yen 7.7 billion yen EURO 8.6 billion yen 4.6 billion yen 6

7 Key Points FY 213 External Environment Strengthening trend of global economic recovery from the second half of the year Outlook Return to path of growth in line with recovery of related markets Expand sales, leveraging competitive product advantage Flexibly and strategically invest in sales expansion and development Achieve net sales and profit increase 7

8 Summary of Projected Results FY 213 FY 213 FY 212 Actual Pct. Change Net Sales 3,81. 3, % Gross Profit 1, , % (% Sales) 48.6% 47.4% Op. Profit % (% Sales) 1.8% 9.3% Net Income Attributable to Canon Inc % (% Sales) 6.7% 6.5% Foreign Exchange Rate Yen 1USD Yen 1EURO

9 Transition in Sales and Op. Profit FY 213 v. FY 212 Actual Sales Op. Profit FY 212 Actual 3, Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Sales Volume Impact Office +7.7 Imaging System Industry and Others Total Others Total Change FY 213 (Jan. 3, 213) 3, USD: 1EURO: Change in Exchange Rate to 85. yen 12.8 to 115. yen 9

10 8 4Q , FY 2,5 2, 1,5 1, 5 Office 212 Actual Sales Monochrome Copiers Printers 498 Color Copiers Others 4Q11 1Q12 2Q12 3Q12 4Q12 1,918 FY , ,758 (Unit Base) Office Total -8.4%(-11.2%) Printers -14.9%(-18.3%) -4.5%(-6.6%) -.3%(-2.6%) Copier Total -2.6%(-4.8%) Office Total -8.4%(-6.6%) Printers -15.2%(-14.8%) -.%(+2.7%) -1.3%(+.8%) Copier Total -.6%(+1.8%) Copiers ( ) Local Currency Base 13.8% 69 Printers 4Q12 4Q12 Color -6% +8% -32% -6% Monochrome -6% +4% -21% -17% Total -6% +5% -22% -15% 12.1% 53 Color Ratio Op. Profit Op. Profit Ratio Copiers Printers 4Q12 4Q12 Value Base* 55% 54% 46% 46% Unit Base 36% 34% 12% 14% 12.8% 58 Op. Profit 1.1% % 11.2% 4Q11 1Q12 2Q12 3Q12 4Q % 259 FY % 11.6% 2 24 *Includes Consumables % 1

11 3, 2,5 2, 1,5 1, 5 Office FY 213 Sales Monochrome Copiers Printers 1,918 Color Copiers Others 1,758 ( ) Local Currency Base 1,893 FY11 FY13 Office Total +7.7%(+2.2%) Printers +4.4%(+.%) +8.6%(+2.3%) +9.5%(+3.4%) Copier Total +9.%(+2.8%) Op. Profit Op. Profit Ratio 13.5% % 24 Op. Profit +11.6% 12.% 227 FY11 FY13 (Unit Base) Copiers FY13 Printers FY13 Color +8% +2% -6% +16% Monochrome +4% +5% -17% +9% Total +5% +1% -15% +1% Color Ratio Copiers FY13 Printers FY13 Value Base* 54% 54% 46% 46% Unit Base 34% 38% 14% 14% *Includes Consumables 11

12 6 4Q 4 2 Imaging System 212 Actual Sales 373 Cameras IJP Others ( ) Local Currency Base Imaging System +1.2%(+7.%) 411 IJP +13.5%(+11.5%) Cameras +5.7%(+2.3%) (Unit Base) Interchangeable Lens Digital Cameras Compact Digital Cameras 13.7% 51 4Q12 Op. Profit Op. Profit Ratio 15.4% 15.1% 47 +3% +14% -6% -2% Total Digital Cameras -3% +2% IJP +1% +2% Interchangeable Lens Digital Camera Ratio * 16.3% 4Q % Value Base 77% 76% Unit Base 32% 31% * Proportion of Total Digital Cameras * Value Base Includes Interchangeable Lenses Op. Profit +8.% 2,5 FY 2, 1,5 1, 4Q11 1Q12 2Q12 3Q12 4Q12 1,445 1,46 1,312 Imaging System +7.2%(+9.%) IJP -1.%(+.9%) 4Q11 1Q12 2Q12 3Q12 4Q12 -.5% 16.1% 16.9% 15.% 5 Cameras +6.8%(+8.6%) FY11 FY11 12

13 2,5 2, 1,5 1, 5 Imaging System FY 213 Sales Cameras IJP Others 1,312 1,46 ( ) Local Currency Base 1,579 Imaging System +12.3%(+5.3%) IJP +1.%(+4.1%) Cameras +14.4%(+6.9%) Op. Profit Op. Profit Ratio 16.1% 15.% Op. Profit +35.5% 18.% 285 FY11 FY13 FY11 FY13 (Unit Base) Interchangeable Lens Digital Cameras Compact Digital Cameras FY13 +14% +12% -2% -7% Total Digital Cameras +2% -1% IJP +2% +2% Interchangeable Lens Digital Camera Ratio * FY13 Value Base 76% 8% Unit Base 31% 35% * Proportion of Total Digital Cameras * Value Base Includes Interchangeable Lenses 13

14 2.% 18.% 16.% 14.% 12.% 1.% 8.% 6.% 4.% 2.%.% -2.% -4.% -6.% -8.% -1.% 25.% 2.% 15.% 1.% 5.%.% -5.% -1.% 4Q Net Sales Gross Sales (Includes sales among Group businesses) Sales 3 Eliminations (Sales among Group businesses) -3 6 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 FY11 Gross 114 ( ) Local Currency Base 91 Lithography Equipment 77 4Q11 1Q12 2Q12 3Q12 4Q Lithography Equipment (Unit Sales) Q11 FY11 4Q12 IC FPD Industry and Others Net Sales -8.9%(-9.9%) 1 Gross Sales -6.4%(-7.3%) Gross 17 (Litho.Equip.) -5-7.%(-7.8%) 5 Industry and Others Net Sales -3.2%(-2.9%) Gross Sales -3.1%(-2.9%) Gross 48 (Litho.Equip.) -22.8%(-22.8%) Op. Profit Op. Profit Ratio 3.3% 3.6% 4 4 IC Stepper Unit Breakdown by Light Source 6.4% 4Q11 FY11 4Q12 ArF KrF i-line % % 4Q11 1Q12 2Q12 3Q12 4Q12 5.8% 24 FY11 2.5% 1 Op. Profit *Calculation of operating profit ratio includes inter-segment sales -75.7% 1.4% 6 14

15 25.% 2.% 15.% 1.% 5.%.% -5.% Net Sales Gross Sales (Includes sales among Group businesses) Sales Eliminations (Sales among Group businesses) Industry and Others FY Sales Sales Eliminations Others Gross Lithography Equipment FY11 FY13 ( ) Local Currency Base Industry and Others 5 Net Sales %(+5.%) 4 Gross Sales +8.1(+6.5%) Gross 441 (Litho.Equip.) %(+18.9%) % 24 Op. Profit Op. Profit Ratio 1.4% 6 *Calculation of operating profit ratio includes inter-segment sales Op. Profit % FY11 FY13 Lithography Equipment (Unit Sales) FY13 IC FPD IC Stepper Unit Breakdown by Light Source FY13 ArF KrF 3 9 i-line

16 Inventories 8 Amount Turnover (Days) QE1 1QE11 2QE11 3QE11 4QE11 1QE12 2QE12 3QE12 4QE

17 , 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 FY1 FY11 FY13 FY1 FY11 FY13 17

18 15 Cash on Hand and Return to Shareholders Cash on Hand (Year-end) Cash-on hand (Bilions of yen) Cash-on-hand (In months of 2nd-half net sales, except FYE13, which is based on full-year net sales) % Dividend Dividend Per Share (Yen) Payout Ratio (Consolidated Basis) 12.% 11.% 1.% % % 9.% 8.% 7.% % 6.% % 5.% 5 4.% -1 3.% FYE9 FYE1 FYE11 FYE12 FYE13 Note 1: 45, 1, 5, 1 and 15 billion yen was used to acquire own shares in 27, 28, 21, 211 and 212, respectively. -2 FY8 FY9 FY1 FY11 Plan 2.% 18

19 Supplementary Information 19

20 Transition in Sales and Operating Profit 4Q/FY 212 Actual v. 4Q/FY 211 Actual 4Q FY Sales Op. Profit Sales Op. Profit FY 211 Actual , Foreign Exchange Impact (Net Sales, Cost of Sales, Expenses) Change in Exchange Rate(4Q) 1USD: 1EURO: 77.4 to yen to yen Sales Volume Impact Office Imaging System Industry and Others Total Others Total Change FY 212 Actual , Change in Exchange Rate(FY) 1USD: 1EURO: to yen to 12.8 yen Supplementary Information 2

21 Gross Profit Variance Analysis 4Q 212 Actual v. 4Q 211 Actual 4Q12 4Q11 Change 1 Gross Profit % Sales 45.4% 47.6% -2.2pt Forex Impact on Sales Sales Volume Impact Price Change Forex Impact on Costs Cost Reduction Others Total Change in Gross Profit Supplementary Information 21

22 Operating Profit Variance Analysis 4Q 212 Actual v. 4Q 211 Actual 4Q12 4Q11 Change Op. Profit % Sales 8.2% 9.8% -1.6pt 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 22

23 Interest Bearing Debt 5 4 Debt Debt/Total Assets 5.% 4.% 3 3.% %.3%.3%.3% 4.1% FYE8 FYE9 FYE1 FYE11 FYE12 2.% 1.%.% Supplementary Information 23

24 Financial Ratios (Yen) 9 15% 6 9.2% 9.6% 8.7% 9.7% 1% 3 4.9% 3.4% 6.3% 6.3% 5.7% % % FY9 FY1 FY11 FY13 % EPS(Basic) (Attributable to Canon Inc.) ROE ROA Supplementary Information 24