canon inc. fy 2017 results · canon inc. fy 2017 results january 30, 2018 toshizo tanaka executive...

Canon Inc.

FY 2017 Results

January 30, 2018

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 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 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.

Agenda

FY 2017 Results P2 - 7

FY 2018 Projection P8 - 12

Details by Business (FY 2017 Results & FY 2018 Projection)

P13 - 19

Financial Situation P20 - 21

Supplementary Information (FY 2017 / 4Q 2017 Results)

P22 - 31

1

Key Message (FY 2017 Results)

2

Sales and profit growth, first time in 4 years Made further progress in transforming business

structures through recovery of existing businesses and

expansion of new ones

Existing Businesses

Achieved sales and profit growth in all businesses,

thoroughly strengthened profitability

New Businesses

Strong expansion via creation of 4 new businesses

Doubled sales, includes benefit from newly consolidated

medical related subsidiary

3

Change in New Businesses Composition Ratio

Net Sales Composition

Increased sales composition through strong sales growth

Doubled net sales, more than 20% growth even w/o new consolidation benefit

FY 2017 Growth Rate

+105%

w/o new consolidation benefit

+23%

FY 2017 Financial Results (Full Year)

(Billions of yen)

FY 2017

Actual

FY 2016

Actual

%

Change

FY 2017

Previous

Projection

%

Change

Net Sales 4,080.0 3,401.5 +19.9% 4,080.0 0.0%

Gross Profit 1,992.7 1,673.8 +19.0% 1,984.0 +0.4%

(% of Net Sales) 48.8% 49.2% 48.6%

Op. Profit 331.5 228.9 +44.8% 350.0 -5.3%

(% of Net Sales) 8.1% 6.7% 8.6%

Net Income 241.9 150.7 +60.6% 245.0 -1.3%

(% of Net Sales) 5.9% 4.4% 6.0%

1 US$ 112.13 108.58 111.88

1 Euro 126.69 120.25 126.49

4

Against last year: Sales and profit growth, first time in 4 years, rapid recovery in

profitability of existing businesses

Against projection: Profit lower than projected due to impairment loss on goodwill

related to commercial printing business

Regarding Impairment Loss (Commercial Printing Business)

5

Change in the business environment

• Increasingly intense competition

• Change in technology trend (Toner ⇒ Ink)

Temporary decline in profit due to continued investment into

product developed targeting growth

⇒ Recognized impairment loss on goodwill

(33.9 billion yen)

Our new products are gradually penetrating the market. We will

continue to focus on expanding MIF and service revenue to

enhance our commercial printing business, which we believe is a

growth area

FY 2017 Financial Results by Business Unit (Full Year)

(Billions of yen)

FY 2017

Actual

FY 2016

Actual

%

Change

FY 2017

Previous

Projection

%

Change

Office Net Sales 1,865.9 1,807.8 +3.2% 1,867.1 -0.1%

Op. Profit 180.6 169.5 +6.6% 210.5 -14.2%

Imaging Net Sales 1,136.2 1,095.3 +3.7% 1,133.0 +0.3%

System Op. Profit 175.9 144.4 +21.8% 172.0 +2.3%

Medical Net Sales 436.2 – – 439.0 -0.6%

System Op. Profit 22.5 – – 21.5 +4.7%

Industry & Net Sales 731.7 584.7 +25.2% 730.0 +0.2%

Others Op. Profit 56.8 7.4 +662.5% 54.0 +5.2%

Corporate & Net Sales -90.0 -86.3 – -89.1 –

Eliminations Op. Profit -104.3 -92.4 – -108.0 –

Total Net Sales 4,080.0 3,401.5 +19.9% 4,080.0 0.0%

Op. Profit 331.5 228.9 +44.8% 350.0 -5.3% 6

Office and Imaging System BU benefit from recovery in laser printers and cameras,

which are sources of profit

Industry & Others BU driven by lithography and OLED vacuum deposition equip.

FY 2017 Operating Profit Analysis (Full Year comparison against FY 2016)

7

(Billions of yen)

FX Details

Net Sales:

Cost of Sales:

Op. Expenses:

Change in Net Sales, excluding

FX impact, for reference

Office:

Imaging System:

Medical System:

Industry & Others:

Total:

Mainly reflects

consolidation

of CMSC

Sales volume: Profit growth driven by sales expansion in all businesses

Continued cost savings absorbs impact of price reduction

Excluding the impact of new consolidations, operating expenses down mainly

thanks to lower R&D expense

+24.0

+4.5

+435.4

+135.3

+599.2

+96.2

-32.5

-31.8

Key Message (FY 2018 Projection)

8

FX Assumptions

1 US$ = 110 yen, 1 Euro = 130 yen

External Environment

Global economy - Remains on path of modest recovery

FY 2018 Outlook

Existing businesses: Increase market share and thoroughly

strengthen profitability via successive launch of strategic

products.

New businesses: Top priority is sales expansion. Will also

focus on improving profitability

Aiming for sales and profit

growth for 2nd consecutive year

FY 2018 Financial Projection (Full Year)

9

(Billions of yen)

FY 2018

Projection

FY 2017

Actual

%

Change

Net Sales 4,300.0 4,080.0 +5.4%

Gross Profit 2,095.0 1,992.7 +5.1%

(% of Net Sales) 48.7% 48.8%

Op. Profit 420.0 331.5 +26.7%

(% of Net Sales) 9.8% 8.1%

Net Income 280.0 241.9 +15.7%

(% of Net Sales) 6.5% 5.9%

1 US$ 110.00 112.13

1 Euro 130.00 126.69

Aiming for second consecutive year of sales and profit growth

Projecting 2nd highest level of sales (Highest set in 2007)

Expect operating profit to reach 400 billion yen level, first time since 2008

FY 2018 Financial Projection (Full Year)

10

Service revenue related reclassification: Op. expenses to COS (110.0 billion yen)

Pension accounting reclassification: COS & Op. expenses to Non-operating income

(16.0 billion yen)

Reclassification has no impact on Income before taxes & Net income

(Billions of yen) FY 2018

Projection

FY 2018

Projection (after new

Standards applied)

Impact of

Standard

Change

Service

Cost Pension

Net Sales 4,300.0 4,300.0 0.0 - -

Gross Profit (% of Net Sales)

2,095.0 48.7%

1,983.0 46.1%

-112.0

-110.0 -2.0

Op. Expenses 1,675.0 1,579.0 +96.0 +110.0 -14.0

Op. Profit (% of Net Sales)

420.0 9.8%

404.0 9.4%

-16.0

0.0 -16.0

Non-operating Income 0.0 16.0 +16.0 - +16.0

IBT 420.0 420.0 0.0 - 0.0

Net Income (% of Net Sales)

280.0 6.5%

280.0 6.5%

0.0 - -

FY 2018 Financial Projection by Business Unit (Full Year)

11

Billions of yen

FY 2018

Projection

FY 2017

Actual

%

Change

Office Net Sales 1,939.0 1,865.9 +3.9%

Op. Profit 235.5 180.6 +30.4%

Imaging Net Sales 1,153.0 1,136.2 +1.5%

System Op. Profit 193.0 175.9 +9.7%

Medical Net Sales 470.0 436.2 +7.8%

System Op. Profit 27.0 22.5 +20.0%

Industry & Net Sales 839.0 731.7 +14.7%

Others Op. Profit 69.4 56.8 +22.2%

Corporate & Net Sales -101.0 -90.0 –

Eliminations Op. Profit -104.9 -104.3 –

Total Net Sales 4,300.0 4,080.0 +5.4%

Op. Profit 420.0 331.5 +26.7%

Office: Expand MIF via strategic models, enhance profitability

Imaging System: Improve product mix, promote in-house production and

automation

Industry & Others: Sales of lithography equipment and OLED vacuum deposition

equipment to remain strong

FY 2018 Operating Profit Analysis (Full Year comparison against FY 2017)

12



Office:

Imaging System:

Medical System:

Industry & Others:

Total:

FX Details

Net Sales:

Cost of Sales:

Op. Expenses:

(Billions of yen)

Sales volume: Improvement in all businesses via increased volume and improved

product mix

Impact of price reduction offset with cost savings

+85.4

+23.8

+37.2

+96.5

+242.9

-2.9

+8.9

-5.3

MFDs 694 676 +2.6% 706 -1.7% 728 694 +4.8%

LPs 707 668 +5.8% 691 +2.3% 705 707 -0.2%

Others 465 464 +0.4% 470 -1.0% 506 465 +8.8%

Net Sales 1,866 1,808 +3.2% 1,867 -0.1% 1,939 1,866 +3.9%

Op. Profit 181 169 +6.6% 211 -14.2% 236 181 +30.4%

(% of Net Sales) 9.7% 9.4% 11.3% 12.1% 9.7%

%

Change

%

Change

FY 2018

Projection

FY 2017

Actual

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous

Projection (Billions of yen)

%

Change

Office – MFDs

13

“ Image RUNNER ADVANCE

Gen3 2nd Edition “

2017 - Positive growth via expanded sales of next-generation color devices

2018 - Further expansion of sales via versions upgraded with enhanced software

Improve profitability of the entire business through a higher mix of color

Net Sales Growth Rate Y/Y

(Local Currency) Unit Growth Rate Y/Y

FY 2017

Actual

FY 2018

Projection

MFDs -0.4% +4.7%

LPs +3.2% +0.5%

Others -2.6% +8.5%

Total +0.4% +4.1%

Net Sales Growth Rate Y/Y (Local

MFDsFY 2017

Actual

FY 2018

Projection

B&W -5% -1%

Color +10% +8%

Total +3% +4%

Unit Growth Rate Y/Y • Inherits high reliability of

current models

• User authentication,

print management etc.

offered as standard

features

• Works with external

cloud-services

Office – Laser Printers

14

2017 - Completion of new product lineup, strong recovery

2018 - Raise new product ratio, expand consumable sales



FY 2017

Actual

FY 2018

Projection

MFDs -0.4% +4.7%

LPs +3.2% +0.5%

Others -2.6% +8.5%

Total +0.4% +4.1%


LPsFY 2017

Actual

FY 2018

Projection

B&W 0% 0%

Color +4% +8%

Total +1% +1%

MFDs 694 676 +2.6% 706 -1.7% 728 694 +4.8%

LPs 707 668 +5.8% 691 +2.3% 705 707 -0.2%

Others 465 464 +0.4% 470 -1.0% 506 465 +8.8%

Net Sales 1,866 1,808 +3.2% 1,867 -0.1% 1,939 1,866 +3.9%

Op. Profit 181 169 +6.6% 211 -14.2% 236 181 +30.4%

(% of Net Sales) 9.7% 9.4% 11.3% 12.1% 9.7%

%

Change

%

Change

FY 2018

Projection

FY 2017

Actual

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous


%

Change

Office – Others

15

High-speed Cut Sheet Printer

“ VarioPrint i300 “

Market - Expansion trend, particular in graphic art areas

2018 - Expand sales through already launched strategic products


(Local Currency)

FY 2017

Actual

FY 2018

Projection

MFDs -0.4% +4.7%

LPs +3.2% +0.5%

Others -2.6% +8.5%

Total +0.4% +4.1%


Wide-format UV Inkjet Printer

“ Colorado 1640 “

High-speed Continuous Feed Printer

“ ProStream 1000 “

MFDs 694 676 +2.6% 706 -1.7% 728 694 +4.8%

LPs 707 668 +5.8% 691 +2.3% 705 707 -0.2%

Others 465 464 +0.4% 470 -1.0% 506 465 +8.8%

Net Sales 1,866 1,808 +3.2% 1,867 -0.1% 1,939 1,866 +3.9%

Op. Profit 181 169 +6.6% 211 -14.2% 236 181 +30.4%

(% of Net Sales) 9.7% 9.4% 11.3% 12.1% 9.7%

%

Change

%

Change

FY 2018

Projection

FY 2017

Actual

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous


%

Change

Imaging System – Cameras

16

2017 - Achieved sales growth via launch of 6 models, most in industry

2018 - Maintain sales growth, driven by mirrorless cameras where double-digit

growth continues


(Local Currency)

FY 2017

Actual

FY 2018

Projection

Cameras +1.8% +1.1%

IJPs -1.5% +1.2%

Total +0.4% +1.4%

■Net Sales Growth Rate Y/Y (Local “ EOS 6D Mark II “ Units (Millions) & Unit Growth Rate Y/Y

Cameras 703 667 +5.3% 699 +0.5% 711 703 +1.2%

IJPs 336 331 +1.4% 336 -0.1% 340 336 +1.2%

Others 97 97 +0.8% 98 0.0% 102 97 +4.2%

Net Sales 1,136 1,095 +3.7% 1,133 +0.3% 1,153 1,136 +1.5%

Op. Profit 176 144 +21.8% 172 +2.3% 193 176 +9.7%

(% of Net Sales) 15.5% 13.2% 15.2% 16.7% 15.5%

%

Change

%

Change

%

Change

FY 2018

Projection

FY 2017

Actual (Billions of yen)

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous

Projection

New Model Equipped w/

Full Size Sensor

Units % Change Units % Change

DILCs 5.51 -3% 5.50 0%

DCs 4.04 0% 3.40 -16%

FY 2017 Actual FY 2018 Projection

Imaging System – Inkjet Printers

17

Market - Slightly up due to recovery in Asia

Sales expansion of compact models and large ink tank models in both 2017 and

2018


(Local Currency)

FY 2017

Actual

FY 2018

Projection

Cameras +1.8% +1.1%

IJPs -1.5% +1.2%

Total +0.4% +1.4%

■Net Sales Growth Rate Y/Y (LocalUnit Growth Rate Y/Y

FY 2017

Actual

FY 2018

Projection

IJPs +1% +3%

■Unit Growth Rate Y/Y

Compact Business Model

“ TR Series “

• Compact design

• Fax feature

• Enhanced operability

through use of

touchscreen

Cameras 703 667 +5.3% 699 +0.5% 711 703 +1.2%

IJPs 336 331 +1.4% 336 -0.1% 340 336 +1.2%

Others 97 97 +0.8% 98 0.0% 102 97 +4.2%

Net Sales 1,136 1,095 +3.7% 1,133 +0.3% 1,153 1,136 +1.5%

Op. Profit 176 144 +21.8% 172 +2.3% 193 176 +9.7%

(% of Net Sales) 15.5% 13.2% 15.2% 16.7% 15.5%

%

Change

%

Change

%

Change

FY 2018

Projection

FY 2017

Actual (Billions of yen)

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous

Projection

18

CT

“ Aquilion ONE

/ GENESIS EDITION “

Ultrasound

“ Aplio i-series “

Medical System

2017 - Strong sales of new CT and Ultrasound diagnostic systems

2018 - Expand both sales and profit, promoting the strength of our products as well

as expanding sales overseas

Accelerate measures to reduce costs through enhanced group cooperation


(Local Currency)

FY 2017

Actual

FY 2018

Projection

Total - +8.0%

Net Sales 436 - - 439 -0.6% 470 436 +7.8%

Op. Profit 23 - - 22 +4.7% 27 23 +20.0%

(% of Net Sales) 5.2% - 4.9% 5.7% 5.2%

%

Change

%

Change

%

Change (Billions of yen)

FY 2017

Actual

FY 2016

Actual

FY 2017

Previous

Projection

FY 2018

Projection

FY 2017

Actual

■年度決算用（P17）

Industry & Others

19

2017 - Unit sales of FPD lithography equip. grew thanks to OLED panel demand

2018 - Unit sales of IC lithography equip. doubled thanks to expanding demand for

memory

Maintain double-digit growth in both OLED vacuum deposition equipment and

network cameras


(Local Currency) Lithography Equipment (Units)

FPD Lithography Equipment

“ MPAsp-E813 “

Litho. Equip. 193 121 +59.5% 198 -2.3% 227 193 +17.4%

Others 539 464 +16.2% 532 +1.2% 612 539 +13.7%

Net Sales 732 585 +25.2% 730 +0.2% 839 732 +14.7%

Op. Profit 57 7 +662.5% 54 +5.2% 69 57 +22.2%

(% of Net Sales) 7.8% 1.3% 7.4% 8.3% 7.8%

%

Change

%

Change

%


FY 2017

Actual

FY 2016

Actual

FY 2017

Previous

Projection

FY 2018

Projection

FY 2017

Actual

■年度決算用（P18）

FY 2017

Actual

FY 2018

Projection

Litho. Equip. +58.3% +17.4%

Others +14.8% +13.7%

Total +23.8% +14.7%

■(現地通貨) 対前年売上伸び率

FY 2016

Actual

FY 2017

Actual

FY 2018

Projection

IC 64 70 126

FPD 37 84 75

Inventory

Inventory turnover in days significantly shorter

• Improving performance of Office and Industry & Others BU

20

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Yen 227 211 211 206 207 211 223 205

Days 42 42 44 42 40 42 44 40

ImagingYen 168 138 144 127 143 149 164 130

SystemDays 51 48 49 41 46 52 54 39

MedicalYen - - - - - 80 77 84

SystemDays - - - - - 67 70 71

Industry &Yen 126 130 139 228 219 157 157 151

OthersDays 92 106 108 152 94 98 90 79

Yen 521 479 494 561 569 597 621 570

Days 52 53 55 59 54 55 57 49

(Bilions of yen)

FY 2016 FY 2017

Office

Total

(Billions of yen)FY 2018

Projection

FY 2017

Actual

FY 2016

Actual

Net cash provided by operating activities 550 591 500

Net cash used in investing activities -330 -165 -837

Free cash flow 220 426 -337

Net cash provided by (used in) financing activities -322 -341 356

Effect of exchange rate changes on cash and cash equivalents -10 7 -22

Net change in cash and cash equivalents -112 92 -3

Cash and cash equivalents at end of period 610 722 630

Cash-on-hand (In months of Net sales) 1.7 2.0 2.2

Capital expenditure 200 148 172

Depreciation 245 262 250

Cash Flow (Full Year)

21

2017 - Generated 400.0 billion yen in FCF, worked to pay down debt

2018 - Plan to invest in the growth of new businesses, and strive for comprehensive

cashflow management

Supplementary Information

22

FY 2017

23

(Billions of yen)



Office:

Imaging System:

Medical System:

Industry & Others:

Total:

FY 2017 Operating Profit Analysis (Full Year Comparison against FY 2017 Previous Projection)

FX Details

Net Sales:

Cost of Sales:

Op. Expenses:

24

-7.6

-1.0

-3.2

+0.8

-11.0

+5.9

-1.2

-1.3

Dividend

25

4Q 2017

26

FY 2017 Financial Results (4Q 2017)

Billions of yen

4Q 2017

Actual

4Q 2016

Actual

%

Change

4Q 2017

Previous

Projection

%

Change

Net Sales 1,120.3 965.2 +16.1% 1,120.3 0.0%

Gross Profit 546.6 460.1 +18.8% 537.9 +1.6%

(% of Net Sales) 48.8% 47.7% 48.0%

Op. Profit 79.0 80.2 -1.4% 97.6 -19.0%

(% of Net Sales) 7.1% 8.3% 8.7%

Net Income 54.6 44.8 +21.8% 57.7 -5.3%

(% of Net Sales) 4.9% 4.6% 5.1%

1 US$ 112.96 109.48 112.00

1 Euro 132.98 118.10 132.00

27

FY 2017 Financial Results by Business Unit (4Q 2017)

(Billions of yen)

4Q 2017

Actual

4Q 2016

Actual

%

Change

4Q 2017

Previous

Projection

%

Change

Office Net Sales 493.2 485.9 +1.5% 494.4 -0.2%

Op. Profit 27.3 48.6 -43.9% 57.1 -52.2%

Imaging Net Sales 340.9 324.7 +5.0% 337.8 +0.9%

System Op. Profit 59.0 51.7 +14.2% 55.1 +7.1%

Medical Net Sales 103.7 – – 106.5 -2.6%

System Op. Profit 4.9 – – 3.9 +25.5%

Industry & Net Sales 205.3 175.6 +16.9% 203.6 +0.8%

Others Op. Profit 16.1 3.2 +409.2% 13.3 +20.9%

Corporate & Net Sales -22.8 -21.0 – -22.0 –

Eliminations Op. Profit -28.3 -23.3 – -31.8 –

Total Net Sales 1,120.3 965.2 +16.1% 1,120.3 0.0%

Op. Profit 79.0 80.2 -1.4% 97.6 -19.0%

28

4Q 2017 Operating Profit Analysis (Quarterly comparison against 4Q 2016)

29

(Billions of yen)



Office:

Imaging System:

Medical System:

Industry & Others:

Total:

FX Details

Net Sales:

Cost of Sales:

Op. Expenses:

Mainly reflects

consolidation

of CMSC

-8.3

-2.2

+103.2

+24.8

+117.5

+41.1

-12.4

-14.9

30

Office / Imaging System (4Q 2017)



Office

Imaging System Units (Millions) &

Unit Growth Rate Y/Y


(Local Currency)

MFDs 188 179 +5.4% 200 -6.0%

LPs 178 184 -3.0% 162 +9.7%

Others 127 123 +2.6% 132 -3.7%

Net Sales 493 486 +1.5% 494 -0.2%

Op. Profit 27 49 -43.9% 57 -52.2%

(%of Net Sales) 5.5% 10.0% 11.6%

(Billions of yen)

4Q 2017

Actual

%

Change

%

Change

4Q 2016

Actual

4Q 2017

Previous

Projection

Cameras 208 198 +4.8% 204 +1.7%

IJPs 104 101 +3.1% 104 -0.2%

Others 29 26 +14.0% 30 -0.1%

Net Sales 341 325 +5.0% 338 +0.9%

Op.Profit 59 52 +14.2% 55 +7.1%

(% of Net Sales) 17.3% 15.9% 16.3%

(Billions of yen)

4Q 2017

Actual

4Q 2016

Actual

4Q 2017

Previous

Projection

%

Change

%

Change

4Q 2017

Actual

MFDs +0.1%

LPs -4.2%

Others -2.8%

Total -2.3%

MFDs4Q 2017

Actual

B&W -10%

Color +10%

Total +1%

■台数伸び率（補足：P26

LPs4Q 2017

Actual

B&W -11%

Color +13%

Total -7%

4Q 2017

Actual

Cameras -1.4%

IJPs -2.0%

Total -0.9%


4Q 2017

Actual

IJPs +2%

■台数伸び率（補足：

Units % Change

DILCs 1.70 -5%

DCs 1.13 +5%

4Q 2017 Actual

31

Medical System / Industry & Others (4Q 2017)

Medical System

Industry & Others


(Local Currency) Lithography Equipment (Units)

Net Sales 104 - - 106 -2.6%

Op. Profit 5 - - 4 +25.5%

(% of Net Sales) 4.8% - 3.7%

%

Change

%


4Q 2017

Actual

4Q 2016

Actual

4Q 2017

Previous

Projection

Litho. Equip. 55 35 +55.8% 59 -7.7%

Others 150 141 +7.2% 145 +4.3%

Net Sales 205 176 +16.9% 204 +0.8%

Op. Profit 16 3 +409.2% 13 +20.9%

(% of Net Sales) 7.8% 1.8% 6.5%

%

Change

%


4Q 2017

Actual

4Q 2016

Actual

4Q 2017

Previous

Projection

4Q 2017

Actual

Litho. Equip. +54.6%

Others +5.1%

Total +15.0%


4Q 2016

Actual

4Q 2017

Actual

IC 19 25

FPD 12 21

■露光装置台数（補足：P29）

FY 2017 RESULTS Supplementary Data

Table of Contents

１. Segment Information by Business Unit (FY 2017 & FY 2018)................................................. P 1２. Other Income (FY 2017 & FY 2018)................................................................................................... P 1３. Net Sales by Region & Business Unit (FY 2017 & FY 2018).................................................... P 2４. Statements of Cash Flows (FY 2017 & FY 2018)....................................................................... P 2５. Foreign Exchange Rate Impact............................................................................................................ P 3６. Sales Growth on a Local Currency Basis (Year over Year)......................................................... P 3７. Net Sales Growth Rate of Hardware & Non-hardware.............................................................. P 4８. Color Ratio (MFDs & LPs)...................................................................................................................... P 4９. Sales Growth by Monochrome & Color MFDs.............................................................................. P 410

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10. IC Stepper Unit Breakdown by Light Source................................................................................ P 411. R&D Expenditure / Capex / Depreciation & Amoritization..................................................... P 512. Other Financial Data................................................................................................................................ P 5

This document 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 document. A detailed description of these and other risk 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 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.

1. Segment Information by Business Unit (FY 2017 & FY 2018) (Millions of yen)

FY 20184Ｑ Full Year 4Ｑ Full Year Full Year 4Ｑ Full Year Full Year

Actual Actual Actual Actual Projection Actual Actual Projection

OfficeExternal customers 484,656 1,804,862 492,594 1,863,688 1,937,700 +1.6% +3.3% +4.0%

Intersegment 1,194 2,957 605 2,240 1,300 -49.3% -24.2% -42.0%

Total sales 485,850 1,807,819 493,199 1,865,928 1,939,000 +1.5% +3.2% +3.9%

Operating profit 48,625 169,486 27,290 180,648 235,500 -43.9% +6.6% +30.4%

Operating profit ratio 10.0% 9.4% 5.5% 9.7% 12.1%

Imaging SystemExternal customers 324,455 1,094,291 340,738 1,135,584 1,152,000 +5.0% +3.8% +1.4%

Intersegment 287 998 182 604 1,000 -36.6% -39.5% +65.6%

Total sales 324,742 1,095,289 340,920 1,136,188 1,153,000 +5.0% +3.7% +1.5%

Operating profit 51,702 144,413 59,021 175,913 193,000 +14.2% +21.8% +9.7%


Medical SystemExternal customers - - 103,508 434,985 469,600 - - +8.0%

Intersegment - - 174 1,202 400 - - -66.7%

Total sales - - 103,682 436,187 470,000 - - +7.8%

Operating profit - - 4,940 22,505 27,000 - - +20.0%

Operating profit ratio 4.8% 5.2% 5.7%

Industry & OthersExternal customers 156,062 502,334 183,451 645,758 740,700 +17.6% +28.6% +14.7%

Intersegment 19,572 82,326 21,833 85,946 98,300 +11.6% +4.4% +14.4%

Total sales 175,634 584,660 205,284 731,704 839,000 +16.9% +25.2% +14.7%

Operating profit 3,162 7,448 16,101 56,788 69,400 +409.2% +662.5% +22.2%


Corporate & EliminationsExternal customers

FY 2016 FY 2017 FY 2018% Change Y/Y

FY 2017

- P1 -

External customers - - - - - - - -

Intersegment -21,053 -86,281 -22,794 -89,992 -101,000 - - -

Total sales -21,053 -86,281 -22,794 -89,992 -101,000 - - -

Operating profit -23,321 -92,481 -28,316 -104,375 -104,900 - - - Operating profit ratio

ConsolidatedExternal customers 965,173 3,401,487 1,120,291 4,080,015 4,300,000 +16.1% +19.9% +5.4%

Intersegment - - - - - - - -

Total sales 965,173 3,401,487 1,120,291 4,080,015 4,300,000 +16.1% +19.9% +5.4%

Operating profit 80,168 228,866 79,036 331,479 420,000 -1.4% +44.8% +26.7%


2. Other Income (FY 2017 & FY 2018) (Millions of yen)



Interest and dividend, net 959 3,701 1,242 5,194 1,000 +283 +1,493 -4,194FX gain (loss) -12,620 -2 -3,416 -9,775 -2,000 +9,204 -9,773 +7,775Equity earnings of affiliated cos. 217 890 281 1,196 1,000 +64 +306 -196Other, net 3,911 11,196 11,374 25,790 0 +7,463 +14,594 -25,790　合計 -7,533 15,785 9,481 22,405 0 +17,014 +6,620 -22,405

*Canon newly established "Medical System" Business Unit effective at the beginning of the second quarter of 2017, and certain businesses included inIndustry and Others Business Unit have been reclassified. Operating results for 2016 were not restated since they were not material.

*The actual and projected operating results pertaining to TMSC, a company acquired in December 2016, are included in "Medical System" for 2017 and 2018.Amortization costs of identified intangible assets resulting from the purchase price allocation of TMSC are included in "Corporate and Eliminations."

FY 2016 FY 2017 FY 2018 Amount Change Y/YFY 2017

- P1 -

3. Net Sales by Region & Business Unit (FY 2017 & FY 2018) (Millions of yen)



JapanOffice 99,303 378,834 103,599 381,475 - +4.3% +0.7% - Imaging System 63,174 179,304 60,338 174,944 - -4.5% -2.4% - Medical System - - 39,664 190,276 - - - - Industry & Others 42,619 148,841 39,091 138,133 - -8.3% -7.2% - 　Total 205,096 706,979 242,692 884,828 947,200 +18.3% +25.2% +7.0%

OverseasOffice 385,353 1,426,028 388,995 1,482,213 - +0.9% +3.9% - Imaging System 261,281 914,987 280,400 960,640 - +7.3% +5.0% - Medical System - - 63,844 244,709 - - - - Industry & Others 113,443 353,493 144,360 507,625 - +27.3% +43.6% - 　Total 760,077 2,694,508 877,599 3,195,187 3,352,800 +15.5% +18.6% +4.9%AmericasOffice 153,027 582,297 156,649 602,376 - +2.4% +3.4% - Imaging System 91,064 297,403 97,310 316,756 - +6.9% +6.5% - Medical System - - 26,226 102,131 - - - - Industry & Others 23,376 83,844 23,092 86,252 - -1.2% +2.9% - 　Total 267,467 963,544 303,277 1,107,515 1,147,300 +13.4% +14.9% +3.6%EuropeOffice 158,562 556,353 154,877 580,825 - -2.3% +4.4% - Imaging System 83,926 293,894 91,598 301,906 - +9.1% +2.7% - Medical System - - 22,623 80,035 - - - - Industry & Others 19,836 63,276 20,006 65,649 - +0.9% +3.8% - 　Total 262,324 913,523 289,104 1,028,415 1,101,700 +10.2% +12.6% +7.1%Asia & OceaniaOffice 73,764 287,378 77,469 299,012 - +5.0% +4.0% - Imaging System 86,291 323,690 91,492 341,978 - +6.0% +5.6% - Medical System - - 14,995 62,543 - - - - Industry & Others 70,231 206,373 101,262 355,724 - +44.2% +72.4% - 　Total 230,286 817,441 285,218 1,059,257 1,103,800 +23.9% +29.6% +4.2%

IntersegmentOffice 1,194 2,957 605 2,240 - -49.3% -24.2% - Imaging System 287 998 182 604 - -36.6% -39.5% - Medical System - - 174 1,202 - - - - Industry & Others 19,572 82,326 21,833 85,946 - +11.6% +4.4% - Eliminations -21,053 -86,281 -22,794 -89,992 - - - - 　Total 0 0 0 0 0 - - -

TotalOffice 485,850 1,807,819 493,199 1,865,928 - +1.5% +3.2% - Imaging System 324,742 1,095,289 340,920 1,136,188 - +5.0% +3.7% - Medical System - - 103,682 436,187 - - - - Industry & Others 175,634 584,660 205,284 731,704 - +16.9% +25.2% - Eliminations -21,053 -86,281 -22,794 -89,992 - - - - 　Total 965,173 3,401,487 1,120,291 4,080,015 4,300,000 +16.1% +19.9% +5.4%

4. Statements of Cash Flows (FY 2017 & FY 2018) (Millions of yen)



Net cash provided by operating activities 156,920 500,283 176,051 590,557 550,000 +19,131 +90,274 -40,557 Net cash used in investing activities -12,216 -837,125 -32,858 -165,010 -330,000 -20,642 +672,115 -164,990 Free cash flow 144,704 -336,842 143,193 425,547 220,000 -1,511 +762,389 -205,547 Net cash provided by (used in) financing activities -80,647 355,692 -70,621 -340,464 -321,800 +10,026 -696,156 +18,664 Effect of exchange rate changes on cash and cash equivalents 31,656 -22,270 2,401 6,538 -10,000 -29,255 +28,808 -16,538 Net change in cash and cash equivalents 95,713 -3,420 74,973 91,621 -111,800 -20,740 +95,041 -203,421 Cash and cash equivalents at end of period 630,193 630,193 721,814 721,814 610,000 +91,621 +91,621 -111,814


FY 2016 FY 2017 FY 2018 % Change Y/YFY 2017

FY 2016 FY 2017 FY 2018 Amount Change Y/YFY 2017

- P2 -

5. Foreign Exchange Rate Impact(1) Exchange rates (Yen)

4Ｑ Full Year 4Ｑ Full Year Full YearActual Actual Actual Actual Projection

Yen/US$ 109.48 108.58 112.96 112.13 110.00

Yen/Euro 118.10 120.25 132.98 126.69 130.00

(2) Amount of impact on net sales (Year over Year)(Billions of yen)

4Ｑ Full Year Full YearActual Actual Projection

US$ +8.6 +42.5 -21.9

Euro +27.1 +43.0 +19.8

Other currencies +5.4 +10.7 -0.8

合計 +41.1 +96.2 -2.9

(3) Impact of foreign exchange rate per yen(Billions of yen)

Full YearProjection

On salesUS$ 14.5

Euro 6.7

On operating ProfitUS$ 5.3

Euro 3.3

6 S l G h L l C B i (Y Y )

FY 2016 FY 2017 FY 2018

FY 2017 FY 2018

FY 2018

- P3 -

6. Sales Growth on a Local Currency Basis (Year over Year)

4Ｑ Full Year Full YearActual Actual Projection

OfficeJapan +4.3% +0.7% - Overseas -3.8% +0.4% - Total -2.3% +0.4% +4.1%

Imaging SystemJapan -4.5% -2.4% - Overseas 0.0% +1.0% - Total -0.9% +0.4% +1.4%

Medical SystemJapan - - - Overseas - - - Total - - +8.0%

Industry & OthersJapan -8.3% -7.2% - Overseas +24.4% +41.3% - Total +15.0% +23.8% +14.7%

TotalJapan +18.3% +25.2% - Overseas +10.1% +15.0% -

Americas +10.8% +11.8% - Europe +0.4% +7.8% -

Asia and Oceania +20.3% +26.9% - Total +11.8% +17.1% +5.5%

FY 2017 FY 2018

- P3 -

7. Net Sales Growth Rate of Hardware & Non-hardware

4QActual

Full YearActual

4QActual

Full YearActual

Full YearProjection

Hardware -10% -11% +3% +2% +9%Non-hardware -8% -9% +8% +3% +1%Hardware -1% -3% -3% -2% +9%Non-hardware -1% -2% +2% +1% +1%

Hardware +7% -14% -2% +6% 0%Non-hardware -18% -27% -3% +6% 0%Hardware +13% -6% -5% +3% +1%Non-hardware -17% -22% -4% +3% +1%

Hardware -14% -9% +13% +11% +4%Non-hardware -10% -9% -1% -2% 0%Hardware -7% 0% +7% +8% +5%Non-hardware -3% -1% -6% -5% 0%

8. Color Ratio (MFDs & LPs)

4QActual

Full YearActual

4QActual

Full YearActual

Full YearProjection

MFDsNet Sales 59% 57% 59% 58% 60%QTY 52% 49% 58% 55% 57%

LPsNet Sales 50% 51% 52% 52% 53%QTY 17% 17% 20% 18% 19%

FY 2018FY 2017

JPY

JPY

LC

FY 2016

LC

LPs

JPY

LC

IJPs

FY 2016 FY 2017 FY 2018

MFDs

- P4 -

9. Sales Growth by Monochrome & Color MFDs

4QActual

Full YearActual

4QActual

Full YearActual

Full YearProjection

Monochrome -12% -12% +4% -1% 0%Color -6% -8% +7% +5% +8%Monochrome -5% -4% -1% -3% 0%Color +2% -1% +1% +2% +8%

10. IC Stepper Unit Breakdown by Light Source (unit)

4QActual

Full YearActual

4QActual

Full YearActual

Full YearProjection

6 19 10 24 3713 45 15 46 8919 64 25 70 126

KrFi-LineTotal

FY 2016 FY 2017 FY 2018

FY 2016 FY 2017 FY 2018

JPY

LC

- P4 -

11. R&D Expenditure / Capex / Depreciation & Amoritization(Millions of yen)

FY 2016 FY 2017 FY 2018

Full YearActual

Full YearActual

Full YearProjection

R&D ExpenditureOffice 94,440 91,763 - Imaging System 91,752 91,784 - Medical System - 36,210 - Industry and Others 67,887 68,131 - Corporate & Eliminations 48,297 42,165 - Total 302,376 330,053 335,000

% of Net Sales 8.9% 8.1% 7.8%

Capex

Office 67,675 44,172 - Imaging System 23,482 26,876 - Medical System - 7,599 - Industry and Others 26,788 13,620 - Corporate & Eliminations 53,652 55,275 - Total 171,597 147,542 200,000

Depreciation & Amoritization

Office 78,319 74,377 - Imaging System 47,386 41,695 - Medical System - 5,212 - Industry and Others 41,053 37,705 - Corporate & Eliminations 83,338 102,892 - Total 250,096 261,881 245,000

12 O h Fi i l D

- P5 -

12.Other Financial DataFY 2016 FY 2017 FY 2018

ROE　*1 5.2% 8.6% 9.6%

ROA　*2 3.1% 4.7% 5.4%EPS (Yen) 137.95 222.88 259.32

Debt Ratio　*3 11.9% 10.2% -

Number of Employees　*3Japan 72,913 73,665 -Overseas 124,760 124,111 - Total 197,673 197,776 -

Domestic Production Ratio 56% 62% -*1 ; Based on Net Income attributable to Canon Inc. and Total Canon Inc. Shareholders' Equity

*2 ; Based on Net Income attributable to Canon Inc.

*3 ; as of year end


- P5 -

canon inc. fy 2017 results · canon inc. fy 2017 results january 30, 2018 toshizo tanaka executive...

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