April 27, 2005 Canon Inc. FIRST QUARTER 2005 RESULTS April 27, 2005 Toshizo Tanaka Senior Managing Director, Group Executive Finance and Accounting Headquarters Canon Inc. 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.
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April 27, 2005 Canon Inc.
FIRST QUARTER 2005 RESULTSApril 27, 2005
Toshizo TanakaSenior Managing Director, Group Executive
Finance and Accounting HeadquartersCanon Inc.
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.
Sales volume impact[net sales, cost of sales, expenses]
- 16.9- 29.9Foreign exchange impact
543.83,467.92004 actualOp. ProfitSales
FY(Billions of yen)
Change in Exchange Rate (2Q)
109.67 to 105.00 Yen132.29 to 135.00 Yen
•1USD:•1EURO:
Change in Exchange Rate (FY)
108.12 to 104.90 Yen134.57 to 135.44 Yen
•1USD:•1EURO:
Supplementary Information 31
April 27, 2005 Canon Inc.
448
432
444 489
516
5751 49
5249
0
200
400
600
800
FY01 FY02 FY03 FY04 1Q050
15
30
45
60
75
90InventoriesTurn-over (Days)
296
148
98
39 38
10.4%
1.1% 1.1%
5.0%
3.1%
0
100
200
300
400
FY01 FY02 FY03 FY04 1Q050%
5%
10%
15%Debt
Debt/Total Assets
(Billions of yen) (Billions of yen)
Inventories Interest Bearing Debt
(Days)
Supplementary Information 32
April 27, 2005 Canon Inc.
Capital Expenditure(Billions of yen)
44 47
193
210
84 93
343 367
55 92
319 375
0
100
200
300
400
500
600
700Capex
Net income
Depreciation
FY04 FY05
(Billions of yen)
98
253 42
0
309
215
105
77
562 63
5
5055
-21-1000
100200300400500600700
1Q04
1Q05
FY04
FY05
Operating C/F
Free C/F
Investing C/F
33
1Q04 1Q05 FY04 FY05Current
projectionCurrent
projection
1Q04 1Q05
Supplementary Information
Free Cash Flow
[Major Expenditures 2005 (Each item listed is over 10 billion yen]• Automated assembly line for cartridges• New facility/building for development (Yako)• New factory/building for lenses (Utsunomiya)• Step up production of toner• Increase production of CMOS sensors