Canon Inc. Corporate Strategy Conference 2015

Transcription

1 Canon Inc. Corporate Strategy Conference 2015 March 9, 2015 Fujio Mitarai, Chairman and CEO 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.

2 Excellent Global Corporation Plan Phase IV B2B and New Businesses Strengthen Existing Businesses Expand Existing Businesses Cultivate New Businesses Industry CINEMA EOS SYSTEM DreamLabo Super Machine Vision Nanoimprint MR Systems Professional-use Displays Safety & Security Medical Network Cameras AO-SLO DNA Diagnostic Devices Photoacoustic Tomography 1

3 Net Sales (Trillions of Yen) Excellent Global Corporation Plan Review of Phase IV Build a Structure that Generates Profit, and Cultivate New Businesses Net Sales Net Income Cash-on-hand Net Sales/Net Income/Cash-on-hand Trends Net Income/Cash-on-hand (Billions of Yen) ,200 1, '10 '11 '12 '13 '14 '15 (P) First Year in a New Era of Growth Excellent Global Corporation Plan Phase IV 0 2

4 Renew Efforts Towards a Growth Path Extreme Yen Appreciation, Europe s Financial Instability, the Great East Japan Earthquake, etc. Slowdown in Global Economic Growth Strengthening Financial Structure Signs of Mkt. Recovery Renew Efforts Towards a Growth Path Driven by Broadly Defined Camera Bus. 3

5 Camera Business Current Market Trend and Future Outlook Compact Cameras Growth of Smartphones Interchangeable Lens Cameras Completed Shift from Analog to Digital Heading Towards Sound Growth Industry Leading Camera Technologies (Lenses, Sensors, etc.) Generate Demand in B2B Mkt. 4

6 Advance Camera Technology Optical Technology Development and Manufacturing of Lens Unit Used in Subaru Telescope Processing of Multi-Segment Primary Mirror to be Used in TMT, an Ultra- Large Telescope Image Processing Technology Applying Imaging Engine to Other Products (CINEMA EOS SYSTEM, Network Cameras, etc.) Sensor Technology Ultra High-Resolution 120 Megapixels CMOS Sensor Ultra High-Sensitivity 35mm Full-Frame CMOS Sensor Dual Pixel CMOS AF Accelerating Expansion into B2B 5

7 Horizontal Expansion of Camera Technology Key Fundamental Technologies 1. CINEMA EOS SYSTEM Optical Technology 2. Network Cameras 3. Other Business Domains Sensor Technology Image Processing Technology Industrial Cameras MR Systems Leading-edge CMOS Sensor (120 Megapixels CMOS Sensor, etc.) 6

8 Strengthen Network Camera Business Market Size and Growth Potential (Trillions of Yen) 2.5 Security Camera Market Analog Cameras Others Encoders Network Video Recorders VMS Recording, Searching, Replaying, Exporting Camera Hardware Omni-Directional Dome PTZ (Pan, Tilt, Zoom) Network Camera System Source: External Market Research Firm 7

9 Strengthen Network Camera Business Business Structure End Users Retail Transport Education City Surveillance Industry Solutions System Integrators/Resellers Vendors Network Cameras Video Management Software Image Analytical Solutions Image Capture Intelligent Function Compression/Delivery Cooperation Recording Searching Replaying, etc. Cooperation Linkage with Other Systems Analytical Applications, etc. 8

10 Strengthen Network Camera Business Overview of Axis and the Tender Offer Company Name Representative Axis AB (Listed on Nasdaq Stockholm) Ray Mauritsson, President and CEO Location / Foundation Lund, Sweden / 1984 Main Business Activities Development and Sales of Network Video Solutions Fiscal Year / Employees (Dec. 31, 2014) January 1st to December 31st / 1,941 Share Capital (Dec. 31, 2014) Total Revenues (Fiscal Year 2014) Net Income (Fiscal Year 2014) Offer Price Total Purchase Amount (Tentative) 0.7 million Swedish krona (10 million yen) 5,450 million Swedish krona (77.0 billion yen) 539 million Swedish krona (7.6 billion yen) 340 Swedish Krona per Share (Represents a premium of 49.8% over Axis closing share price of Feb. 9, 2015) Approximately 23.6 billion Swedish krona (Approximately billion yen) Schedule (Tentative) March 3, 2015 to April 1, 2015 Note (1) Yen amounts are translated from Swedish krona at the rate of SEK 1 = JPY (2) Completion of the Tender Offer is conditional on, among other things, clearances concerning antitrust laws related to the Transaction. 9

11 Strengthen Network Camera Business Axis Sales Capability Distribution Flow End Users 75,000 Global Partnerships System Integrators Resellers Sales Capability Number of Global Partnerships 45,000 55,000 65,000 75,000 30,000 35,000 Distributors 2,000 6,000 14,000 10,000 24,000 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 Source: Axis disclosure material 10

12 Strengthen Network Camera Business Axis Product Development Capability & Mkt. Position Product Development Capability Global Market Share (in value terms) 2014 Superior Network Image Processing Technology 24% Broadest Lineup in the Industry Capability to Launch Around 30 Products a Year Cooperation with Other Companies due to Adoption of Open Platform #3 #2 Source: External Market Research Firm 11

13 Network Cameras Business Structure VMS Strengthen Network Camera Business Strong Complementary & Collaborative Relationship - 1 End Users System Integrators Distributors Image Analytical Solutions Solutions Platform Video Management Software Network Technology Application Platform Image Processing Technology Optical / Sensor Technology 12

14 Strengthen Network Camera Business Strong Complementary & Collaborative Relationship - 2 Canon s Strength Optical Technology Imaging Technology Strong R&D Production Engineering Technology Extensive IP Axis Strength Network Image Processing Technology Sales Partnership World No.1 Brand Pioneer Spirit Excellent Business Management Skill Offer Advanced & High Performance Network Solutions Raise Product Competitiveness Solidify World No.1 Position 13

15 Three Regional Headquarters Management System Globalization & Diversification Canon BioMedical, Inc. Production Printing Network Cameras Prompt Decision-Making in Japan, the US, and Europe Medical Speed Up Management 14

16 World No.1 Printing Company Copiers Laser Printers OEM Products Production Printing Systems Commercial Photo Printers World No.1 Printing Company Inkjet Printers Large Format Inkjet Printers SOHO Inkjet Printers 15

17 CANON EXPO 2015 Canon EXPO, an event hold once-every-five-years Leading-edge Technologies and Innovative Product Designs, etc Sep. Oct. Nov. May NY Paris Tokyo Shanghai 16

18 In the final year of Phase IV, we will cultivate new B2B related businesses, and take steps to fully prepare for accelerated growth under our next five year plan 17

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