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Canon conf 2012q1e
 

Canon conf 2012q1e

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    Canon conf 2012q1e Canon conf 2012q1e Presentation Transcript

    • Canon Inc. First Quarter 2012 Results April 25, 2012 Toshizo Tanaka Executive Vice President & CFOThis 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 byavailable 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 orachievements 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 generaleconomic 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 targetedcustomers, 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 otherrisk factors is included in Canon’s annual report on Form 20-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 underlyingassumptions 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. April 25, 2012 Canon Inc.
    • Agenda1Q 2012 Results P3 – 5FY 2012 Projections P6 – 9Details by Business P10 – 15Financial Situation P16 – 18Supplementary Information P19 – 24 April 25, 2012 Canon Inc. 2
    • 1Q 2012 in SummaryExternal Environment Only a gradual recovery in the global economy  Continued weakness in Europe  Deceleration in emerging markets Yen’s appreciationResults Achieved a third consecutive quarter of operating-profit and net-income growth, despite a slight decrease in net sales, through cost reductions and comprehensive effort to streamline expenses April 25, 2012 Canon Inc. 3
    • Summary of Results 1Q 2012 Actual (Billions of yen) 1Q 2012 1Q 2011 Pct. Change Actual ActualNet 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 IncomeAttributable to Canon Inc. 61.5 55.5 +11.0%(% Sales) 7.4% 6.6%Foreign Exchange RateYen – 1USD 79.72 82.28Yen – 1EURO 104.57 112.86 April 25, 2012 Canon Inc. 4
    • Transition in Sales and Op. Profit 1Q 2012 Actual v. 1Q 2011 Actual (Billions of yen) Sales Op. Profit1Q 2011 Actual 839.2 82.5Foreign 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 yenSales Volume Impact Office -19.8 Consumer +24.9 Industry and Others +19.9Total +25.0 +0.8Others -12.3 +9.2Total Change -10.0 +0.21Q 2012 Actual 829.2 82.7 April 25, 2012 Canon Inc. 5
    • Assumptions 2012 Current ProjectionAverage 2Q-4Q12 FY12 FY11Exchange Rate Yen-1USD 80.00 yen 79.94 yen 79.55 yen Yen-1EURO 105.00 yen 104.91 yen 110.72 yenImpact 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 EURO 8.9 billion yen 4.8 billion yen April 25, 2012 Canon Inc. 6
    • Key Points FY2012External Environment Global economy pulled by emerging markets, amid unstable and unclear situation Continued yen’s appreciationOutlook Build solid foundation for growth to achieve 2015 targets in “Phase IV of Excellent Global Corporation Plan” Through advancements made in manufacturing,  Enhance product competitiveness  Strengthen production and sales structure Achieve net sales and profit growth April 25, 2012 Canon Inc. 7
    • Summary of Projected Results FY 2012 Current Projection (Billions of yen) FY 2012 FY 2011 Pct. Change Current Projection ActualNet 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 IncomeAttributable to Canon Inc. 290.0 248.6 +16.6%(% Sales) 7.4% 7.0%Foreign Exchange RateYen – 1USD 79.94 79.55Yen – 1EURO 104.91 110.72 April 25, 2012 Canon Inc. 8
    • Transition in Sales and Op. Profit FY 2012 Current Projection v. FY 2012 Previous Projection (Billions of yen) Sales Op. ProfitPrevious Projection (Jan. 30, 2012) 3,750.0 390.0 Change in Exchange RateForeign Exchange Impact •1USD: 75.00 to 79.94 yen +158.4 +77.4 •1EURO: 100.00 to 104.91 yen(Net Sales, Cost of Sales, Expenses)Sales Volume Impact Office -25.2 Consumer +13.2 Industry and Others +3.6Total -8.4 -10.8Others 0.0 -6.6Total Change +150.0 +60.0Current Projection (Apr. 25, 2012) 3,900.0 450.0 April 25, 2012 Canon Inc. 9
    • 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 consumables800 Monochrome copiers Color copiers Other printing devices Others Op.Profit600 Office total Op. Profit (Billions of yen) -8.9%(-5.3%) Op. Profit Ratio 498 481 466 473 438 Growth rate y/y400 -16.2% Other 14.3% 13.8% Printing 13.1% 12.8% Devices 12.1%200 -14.9%(-12.3%) 68 69 63 60 53 -0.1%(+3.7%) -3.8%(-0.5%) 0 1Q11 2Q11 3Q11 4Q11 1Q12 Copier total 1Q11 2Q11 3Q11 4Q11 1Q12 -1.8%(+1.7%) April 25, 2012 Canon Inc. 10
    • 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 consumables3,000 Monochrome copiers Color copiers Other printing devices Others2,500 Office total Op.Profit +1.1%(+2.6%) 1,939 Op. Profit (Billions of yen)2,000 1,918 1,923 Op. Profit Ratio1,500 Other Growth rate y/y Printing -6.3% Devices 13.5% 12.5%1,000 -5.7%(-5.6%) 11.8% 259 243 227 500 +8.8%(+10.8%) +6.6%(+8.2%) 0 FY11 FY12 FY12 Copier total FY11 FY12 FY12 Previous Current +7.8%(+9.6%) Previous Current Projection Projection Projection Projection April 25, 2012 Canon Inc. 11
    • 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 base600 Cameras IJP Others Op.Profit Consumer +4.8%(+8.3%) Op. Profit (Billions of yen)400 373 Op. Profit Ratio 347 290 302 303 Growth rate y/y 21.6% IJP +17.1% -12.6%(-9.6%)200 15.4% 15.0% 13.7% 13.8% 75 Cameras 51 45 47 +7.0%(+10.6%) 40 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 April 25, 2012 Canon Inc. 12
    • 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 base2,500 Cameras IJP Others Consumer2,000 +20.4%(+21.5%) Op.Profit Op. Profit (Billions of yen) 1,580 Op. Profit Ratio1,500 1,455 1,312 IJP Growth rate y/y +2.8%(+4.0%) +37.4%1,000 17.9% 18.4% 16.1% Cameras 290 500 261 +23.1%(+24.0%) 211 0 FY11 FY12 FY12 FY11 FY12 FY12 Previous Current Previous Current Projection Projection Projection Projection April 25, 2012 Canon Inc. 13
    • 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 Lithography Equipment Others Industry and Others 150 Net Sales +26.2%(+27.2%) Op.Profit 98 20 120 95 14.0% Op. Profit (Billions of yen) 89 Net Sales Op. Profit Ratio 12.0% 71 70 Gross Sales 15 90 +19.4%(+20.2%) 10.0% 103 84 Growth rate y/y 91 10 7.2% 7.3% -39.5% 8.0%Gross Sales 60 Gross (Includes 74 110 Gross 78 5.3%sales among 6.0% 92 Groupbusinesses) 5 9 3.3% 3.6% 30 4.0% 7 (Litho. Equip.) 5 4 Sales 30 4 Eliminations 18 21 19 +5.9%(+6.6%) 2.0% 13 0 (Sales 0among Group -19 *Calculation of operating profit ratio includes -21 -21 -20 0.0% businesses) -25 intersegment sales -5 -2.0% -30 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 April 25, 2012 Canon Inc. 14
    • 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 Currency Base LCD 52 25 94 20 70 16 Immersion KrF 7 18 10 600 i-line 45 76 60 Sales Eliminations Total 77 114 86 Lithography Equipment Industry and Others Others Net Sales 500 375 387 +15.7%(+15.9%) Net Sales 334 50 Op.Profit 25.0% 400 Op. Profit (Billions of yen) Op. Profit Ratio 20.0% Gross Sales 40 300 +10.7%(+10.9%) 15.0% 367 389 30 339 Gross Growth rate y/y Gross 466 10.0%Gross Sales 200 421 -44.9% (Includes 20 5.8% 4.9%sales among Group 2.9% 5.0%businesses) 100 24 10 23 (Litho. Equip.) 13 0.0% 82 90 77 Sales -5.7%(-5.6%) Eliminations 0 0 (Sales -5.0%among Group -87 -82 -79 *Calculation of operating profit ratio includes businesses) intersegment sales -100 -10 -10.0% FY11 FY12 FY12 FY11 FY12 FY12 Previous Current Previous Current Projection Projection Projection Projection April 25, 2012 Canon Inc. 15
    • Inventories800 90 Amount (Billions of yen) 80 Turnover (days)700 70 54 56 60 52600 49 45 46 46 554 50 42 518 35 40500 471 479 477 456 30 428 436400 385 20 10300 0 1QE10 2QE10 3QE10 4QE10 1QE11 2QE11 3QE11 4QE11 1QE12 April 25, 2012 Canon Inc. 16
    • 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 750 750 402 241 500 500 190 160 290 247 250 249 132 744 213 611 560 540 250 250 470 380 370 370 342 315 300 300 276 270 265 261 257 227 216 159 0 0 FY09 FY10 FY11 FY12 FY12 FY09 FY10 FY11 FY12 FY12 Previous Current Previous Current Projection Projection Projection Projection April 25, 2012 Canon Inc. 17
    • 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 31000 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 Previous Current Projection Projection Note 1: 450, 100, 50, and 100 billion yen was used to acquire own shares in 2007,2008, 2010 and 2011, respectively. In 2012, the year-to-date total is 50 billion yen. April 25, 2012 Canon Inc. 18
    • Supplementary Information April 25, 2012 Canon Inc. 19
    • Transition in Sales and Operating Profit FY 2012 Current Projection v. FY 2011 Actual (Billions of yen) Sales Op. ProfitFY 2011 Actual 3,557.4 378.1 Change in Exchange RateForeign 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)Sales Volume Impact Office +107.2 Consumer +326.6 Industry and Others +55.1Total +488.9 +168.3Others -110.0 -81.4Total Change +342.6 +71.9FY 2012 Current Projection 3,900.0 450.0 Supplementary Information 20 April 25, 2012 Canon Inc.
    • 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 Change on Impact on in Gross Sales Costs Profit Supplementary Information 21 April 25, 2012 Canon Inc.
    • 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 Impact) Operating Profit Forex Impact) Supplementary Information 22 April 25, 2012 Canon Inc.
    • 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.
    • 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.