Canon Inc. Corporate Strategy Conference 2016

Transcription

1 Canon Inc. Corporate Strategy Conference 2016 March 7, 2016 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 1 Excellent Global Corporation Plan Start of New Five-Years Plan Phase V ( ) Embrace the Challenge of New Growth

3 Phase IV - Accomplishments Secured New Growth Potential - Shifting business domains towards growth areas Network Cameras Shifting from hardware-centric domain to network system business (Surveillance Camera Market Growth Forecast) (Trillions of Yen) 3 2 Digital Shift Acceleration Solutions Other Peripheral Devices Video Management Software, etc 1 Network Cameras 0 '13 '14 '15 '16 '17 '18 Analog Cameras 2

4 Phase IV - Accomplishments Secured New Growth Potential - Shifting business domains towards growth areas Commercial Printing Shifting from a document printing domain to a broader business that includes commercial printing Comprehensive Printing Company Business Printers Large Format Printers Photo Printers Consumer Inkjet Printers Office MFPs Laser Printers Corporate Reprographics Departments Package Printing Business Process Outsourcing Analog Offset Commercial Printing 3

5 Phase IV - Accomplishments Secured New Growth Potential - Expanding business models through diversification 4 Cinema EOS System 250M Pixel CMOS Sensor Creating New Market Identifying Airplanes 18Km away

6 Phase IV - Accomplishments Secured New Growth Potential - Expanding business models through diversification Machine Vision (Eyes for Robots) Realizing the automated supply of bulk parts through advanced 3D recognition technology 5

7 6 Phase IV - Accomplishments Strengthened Manufacturing Capabilities Automation of Production and Robotization Promote the return of production to Japan, uniting related divisions to expand cost reduction Procurement Production Engineering R&D Manufacturing Sites

8 Phase IV - Accomplishments Realized Record High Gross Profit Ratio (Trillions of Yen) 4.0 Net Sales Gross Profit Ratio 50.9% 52% % % % 44.5% % 3.0 '09 '10 '11 '12 '13 '14 '15 42% Phase IV 7

9 Phase V (Basic Policy) Embrace the challenge of new growth through a grand strategic transformation (Key Strategies) 1. Establish a new production system to achieve a cost-of-sales ratio of 45% 2. Reinforce and expand new businesses while creating future businesses 3. Restructure global sales network in accordance with market changes 4. Enhance R&D capabilities through open innovation 5. Complete the Three Regional Headquarters management system capturing world dynamism 8

10 Phase V Key Strategies Achieve Cost-of-Sales Ratio of 45% 5,000 4,500 Net Sales Cost-of-Sales Ratio Phase IV Phase V 70.0% 4, % 3, % 3,000 2, pt. reduction 2,000 1, % 50.0% 1, % '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 ' % 9

11 Phase V Key Strategies Achieve Cost-of-Sales Ratio of 45% Establish a New Production System Belt Conveyor Cell Man-machine Cell Full automation of camera assembly Utilization of existing plant assets Generalized/In-house production of robots Return production to Japan and expand inhouse production Expansion to other businesses (office machines etc.) Easy to assemble product designs Low cost general-use standardized automation equipment Robot technology development/automated assembly of main bodies and units 10

12 Phase V Key Strategies Reinforce and Expand New Businesses Network Camera Systems Support Diversifying Market Needs Example of an Installation at a Major Airline Improvement in Software Features and Usability Clear IR mode OFF (normal shooting) Clear IR mode ON Incorporated into new products 11

13 12 Phase V Key Strategies Reinforce and Expand New Businesses Commercial Printing Support Diverse Printing Materials 2.5D Texture Printing Package Printing

14 Phase V Key Strategies Reinforce and Expand New Businesses Nanoimprint Accelerate the Set-Up of Next-Generation Semiconductor Production Equipment Business Progress in developing semiconductor production equipment employing nanoimprint technology 13

15 Phase V Key Strategies Reinforce and Expand New Businesses Medical Business Commercialization of Genetic Testing System Established Canon BioMedical Inc., in the U.S. Sales of Commercialized Reagents Started Genetic Testing System 14

16 Phase V Key Strategies Reinforce and Expand New Businesses 15 (Trend in the Proportion of Sales of New Businesses) (Trillions of Yen) New Businesses Existing Industry and Others Office MFPs and Laser Printers 1 Cameras and Inkjet Printers 0 FY13 FY14 FY15 FY16 Projection FY17 Projection FY18 Projection FY19 Projection FY20 Projection

17 16 Phase V Performance Targets 2020 Net Sales Cost-of-Sales Ratio Operating Profit Ratio Net Income Ratio Shareholders Equity Ratio Exchange rates 5 Trillion Yen or more 45% or less 15% or more 10% or more 70% or more (1 USD = 125 yen, 1 Euro = 135 yen)

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