canon marketing japan inc. · canon system & support inc. sharp increase in shipment volumes...

Tokyo Stock Exchange (First Section)Securities Code: 806052nd Ordinary General Meeting of Shareholders

© Canon Marketing Japan Inc. 2020

March 26, 2020

Canon Marketing Japan Inc.

© Canon Marketing Japan Inc. 2020 1

Matters to Be Reported


Business ReportConsolidated Financial StatementsNon-Consolidated Financial Statements


Net Sales

3

Sales (Billions of yen)

621.6 621.1

2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)

700

600

500

400

300

200

100

0


Operating Income

4

Operating Income (Billions of yen)

32.4


40

30

20

10

0

28.9


Ordinary Income

5

30.533.9

Ordinary Income (Billions of yen)2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)

40

30

20

10

0


Profit Attributable to Owners of Parent

6

20.8 22.3

Profit Attributable to Owners of Parent (Billions of yen)


30

20

10

0


Consumers

7

EOS RP

◆Mirrorless cameras:Decline despite efforts to expand sales of products such as EOS RP

◆Digital SLR cameras:Decline as a result of market contraction

Digital interchangeable lens cameras

Impact of market contraction

Compact digital cameras

Sales decreased

Sales decreased

G7 X Mark III


Consumers

8

iNSPiC ZV-123iNSPiC REC iNSPiC PV-123


Consumers

9

◆Home-use inkjet printers:Decline amid sluggish market conditions

◆Printers with the extra-large capacity tankGIGA TANK：Strong sales

Inkjet printers

Decreased sales of consumables such as SD cards and peripherals despite a steady performance in products such as gaming PCs

IT products

Sales increased

Salesdecreased Gaming PCs

Printers with GIGA TANK


Consumers

10

150.2 132.8



300

200

100

0

250

150

50


Enterprise

11

Strong revenue from large projects such as SI projects for securities firms and investment product sales support systems for shinkin banks

Financial

Steady revenue from a demand forecasting system project for a drinks manufacturer and a large commercial datagathering terminal project for a food manufacturer

Manufacturing

Sales increased

Sales increased


Enterprise

12

Steady revenue from a POP production system project for theretail industry, a large office MFP project for the telecommunications industry, and large network camera projects for security firms and trading companies

Distribution

Sales increased


Enterprise

13

Nishi-Tokyo Data Center

Canon IT Solutions Inc.SI Services: Slight rise in sales due to acquisition of numerous projects mainly for the manufacturing industryData center services: Good performance due to number of large infrastructure system projects as well as projects in other areas such as embedded system projects

IT Solutions

Sales increased


Enterprise

14

Absence of large projects recorded theprevious yearTighter control of unprofitable projects

Office MFPs

Order received for a large project for a life insurance company

Laser Printers

Laser Printers

Sales increased

Sales decreased Office MFPs


Enterprise

15

188.2 195.8


2018 (Previous fiscal year) 2019 (Current fiscal year)

300

200

100

0

250

150

50


Area

16

Weak shipment volumes to SMEs despite expansion in sales of office MFPs mainly among medium-sized customers

Office MFPs

Expansion in sales to specific industriesActive proposal of introduction to coincide with the replacement of business PCs

Laser Printers

Sales increased

Sales decreased

Laser Printers

Office MFPs


Area

17

Provided mainly by Canon System & Support Inc.

Sharp increase in shipment volumes due to the progressive replacement of business PCs as a result of the end of extended support for Windows7

Bundled proposals of the cloud-based IT supportservice HOME, the antivirus software ESET and various types of software for increasing businessefficiency

IT Solutions

Antivirus software ESET

Cloud-based IT support service HOME

Sales increased


Area

18

257.6 268.3



300

200

100

0

250

150

50


Professional

19

Weak business related to continuous feed printers and wide-format printers

Production Printing

Strong performance in maintenance services

Termination of a distribution agreement with an overseas manufacturer who was a major customer in the non-semiconductor sector

Industrial Equipment

Sales decreased

Sales decreased


Professional

20

Good performances in IT systems for hospitals and digital radiography

Health Care

Digital radiography

Sales increased


Professional

21

46.4 43.7



100

40

0

80

20

60


（Millions of yen, amounts less than one million yen are rounded down)

Consolidated Balance Sheets

As of Dec. 31. 2019

As of Dec. 31, 2018

As of Dec. 31. 2019

As of Dec. 31, 2018

Assets Liabilities

Current assets 377,403 383,349

Current liabilities 120,023 129,903

Non-current liabilities 58,582 65,317

Non-current assets 126,295 115,441

Total liabilities 178,606 195,220

Net assets

Total net assets 325,092 303,570

Total assets 503,698 498,790 Total liabilities and net assets 503,698 498,790


Consolidated Statements of Income

From January 1, 2019 to December 31, 2019

From January 1, 2018 to December 31, 2018

Net sales 621,134 621,591

Gross profit 201,026 218,173

Operating income 32,439 28,941

Ordinary income 33,937 30,519

Profit before income taxes 33,302 30,708

Profit attributable to owners of parent 22,250 20,826

（Millions of yen, amounts less than one million yen are rounded down)


Issues to Be Addressed



Outlook for Japanese economy

Decline in demand caused by the consumption tax hike

Uncertainty about the outcome of trade issues and overseas economies

25

Impact of fluctuations in financial and capital markets, and other factors

Outlook will remain unclear



26

Priority as a Group

Formulate and implement strategies to maintain profitability even in a contracting market

1. Canon’s majorproducts

Leverage strong customer base,IT technological capability and various other strengths to further strengthen our business domain where we can demonstrate our characteristics

2. IT solutions



27

１．Maintain the profitability of Canon’s major products

Digital Interchangeable Lens Cameras

Strengthen lineup of mirrorless cameras focusing on full-frame models Reenergize the market as the leading digital camera manufacturer

Inkjet Printers

Expand high added value models for home use and business printers and large capacity tank printers



28

１． Maintain the profitability of Canon’s major products

Office MFPs

Increase market share through competitive products and well-aimed solution proposals

Improve efficiency of our maintenance services

Laser Printers

Expand sales to specific industries to increase our market share Maintain and expand sales of cartridges



29

２．Strengthen IT solutions business Achieve high productivity in SI services business and expansion in business scale

Make effective use of our customer base to expand business specific solutions Shift to proposal-based development and service provision-based SI utilizing

packaged software

Increase added value of IT infrastructure services business

Nishi-Tokyo Data Center will play a central role in expanding added value business such as system monitoring and security operation and cloud-based services



30

２．Strengthen IT solutions business

Expand IT solutions business for SMEs

As an “IT concierge,” propose solutions based on backbone packaged software and security products

Expand IT-related maintenance services



31

２．Strengthen IT solutions business

Secure SEs and professional human resources

Increase SEs and human resources with expertise in each business area Strengthen relationships with system partners

Expand BPO business

Establish business specific BPO models Provide services with high levels of expertise and productivity


Matters to Be Resolved


Matters to be Resolved

33

Dividends from Surplus

Item No. 1


Item No. 1 Dividends from Surplus

34

Year-end Dividend 30.00 yen per common share of the CompanyTotal Amount of

Year-end Dividends 3,889,986,870 yen

Effective Date March 27, 2020

47th

Business term48th

Business Term49th

Business Term50th

Business Term51st

Business Term52nd

Business Term(Plan)

40 45 5060 60 60

0

20

40

60

80

Changes in Annual Dividend per Share (Yen)



35

Election of Six Directors

Item No. 2



36

Election of Three Audit & Supervisory Board Members

Item No. 3



37

Item No. 4

Election of Accounting Auditor



38

Item No. 5

Payment of Bonuses to Directors


Four Directors excluding the Outside Director as of the end of this fiscal yearPaid to

Total Amount of Bonuses to Directors 35,750,000 yen

Item No. 5 Payment of Bonuses to Directors


Canon Marketing Japan Group

canon marketing japan inc. · canon system & support inc. sharp increase in shipment volumes...

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