canon marketing japan inc....marketing of solutions built around security products. share the...

Tokyo Stock Exchange (First Section)Securities Code: 806051st Ordinary General Meeting of Shareholders

© Canon Marketing Japan Inc. 2019

March 27, 2019

Canon Marketing Japan Inc.

© Canon Marketing Japan Inc. 2019 1

Matters to Be Reported


Business ReportConsolidated Financial StatementsNon-Consolidated Financial Statements


Net Sales

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2017年（前期） 2018年（当期）

売上（億円）3

Sales (Billions of yen)

800

700

600

500

400

300

200

100

0

632.2 621.6

2017 (Previous Fiscal Year) 2018 (Current Fiscal Year)


Operating Income

0

100

200

300

400

500

2017年（前期） 2018年（当期）

営業利益（億円）

4

Operating Income (Billions of yen)

50

40

30

20

10

0

30.428.9



Ordinary Income

2017年（前期） 2018年（当期）

経常利益（億円）

5

50

40

30

20

10

0

31.5 30.5

Ordinary Income (Billions of yen)



Profit Attributable to Owners of Parent

0

100

200

300

400

500

2017年（前期） 2018年（当期）

親会社株主に帰属する当期純利益（億円）

6

50

40

30

20

10

0

20.7 20.8

Profit Attributable to Owners of Parent (Billions of yen)



Individual customers Commercial/Office Specialist areas

Shift to a New Customer-centric Framework

IT platforms

Coordination of Services & Support

2018~ 2017

Consum

ers

Enterprise

︵Large custom

er

︶A

rea︵Sm

all-to-medium

-sized custom

ers)

Professional

Production Printing

Industrial Equipment

Healthcare

Imaging Solutions

Core Products × Channels

Business Solutions

MFP Direct Sales（Large and

small-to-medium-sized enterprises）Office Devices

Document SolutionsBusiness Partners

PPS

IT Solutions

SI Services Embedded Systems

IT Infrastructure and Services IT Products

Imaging Systems

Cameras and Printers Volume electronics retailers/Camera retailers

Industrial/Medical

7

Marketing CoordinationCall Center ServicesBPO BPO


Consumers

8

Compact Digital Cameras◇Impact of shrinking market⇒Sales decline

Digital Interchangeable Lens Cameras

◆EOS KISS M became best-selling mirrorless camera in Japan◆Launched EOS R, our first full-frame mirrorless camera

◇Shift from digital SLR cameras to mirrorless cameras◇Impact of market contraction

⇒ Sales decline

EOS Kiss M

EOS R


Consumers

9

Inkjet Printers

◆Strong sales of business inkjet printers

◇Market decline reflecting decreased use of the New Year’s card

⇒ Sales decline

IT Products◆Strong sales of products such as gaming computers and mobile batteries ⇒ Sales increase

Business Inkjet Printer

PIXUS TS 8230


Consumers

0

500

1,000

1,500

2,000

2,500

3,000

2017年（前期） 2018年（当期）

売上（億円）

10

300

250

200

150

100

0

166.3150.2

2017 (Previous fiscal year) 2018 (Current fiscal year)



Enterprise

11

⾦融業や製造業向けを中⼼に業種別ソリューションビジネスが伸⻑。SIビジネスやデータセンタービジネスも引き続き堅調に推移し、増収。

Financial Services

◆Credit card companies and securities firms: Large-scale SI projects◆Life insurance and non-life insurance companies: Form design-related solutions, cloud systems for investigation operations◆Banks: Receipt of new orders for BPO projects to reduce workload in trust operations

⇒Higher sales

Manufacturing

◆Electrical︓Production management system projects◆Chemical︓Large-scale office construction projects◆Migration projects due to system upgrades ⇒Higher sales


Enterprise

12

Distribution

Airlines: Document management system projects, large projects involving office MFPs⇒Higher sales

Education

◆Orders received for multiple projects using in Campus◇Absence of large projects received previous year⇒Slight fall in sales

“in Campus” IT infrastructure system for universities


Enterprise

13

◆Data center services - highly rated due to the high performance of facilities and the high quality of operations◆Security solutions and automotive embedded software business

IT Solutions

⇒Strong performance

Data Center


Enterprise

14

◆Receipt of orders from customers such as megabanks and large distribution firms increased

⇒Sales increase

Office MFPs

Laser Printers

◆Increase in shipments mainly due to large projects for life insurance companies◇Falling selling prices

⇒Sales decrease

LBP843Ci

imageRUNNER ADVANCE C5500 Series


Enterprise

0

500

1,000

1,500

2,000

2,500

3,000

2017年（前期） 2018年（当期）

売上（億円）

15

300

250

200

150

100

50

0

177.6 187.7




Area

16

◆Increase in sales of IT products, reflecting the replacement of business computer◆Strong performance of various types of IT introduction support and maintenance services◆Strong sales of HOME, an IT support cloud computing service, and ESET antivirus software

◇Weak shipments of office MFPs and laser printersimageRUNNER ADVANCE C3500 Series

ESET antivirus software


Area

0

500

1,000

1,500

2,000

2,500

3,000

2017年（前期） 2018年（当期）

売上（億円）

17

300

250

200

150

100

50

0

257.9 255.9




Professional

18

Production Printing

◇Weak performances in high-speed cut-sheet printers and high-speed continuous feed printers⇒Fall in sales

Industrial Equipment

◆Solid performances of products such as semiconductor manufacturing equipment, inspection and measurement equipment and industrial components

⇒ Increase in sales

Océ ColorStream Series

Semiconductor Manufacturing Equipment


Professional

19

Visual Solutions

◆Brisk business thanks to a rise in demand associated with the launch of 4K and 8K satellite TV ◇Decline in sales of network cameras ⇒Sales remaining mostly flat

Health Care

◆Growth in areas such as medical information systems and ophthalmic instruments. ◇Weak performance in modality projects for hospitals, amongst others⇒Sales decline

CXDI

Network Camera


Professional

0

200

400

600

800

1,000

2017年（前期） 2018年（当期）

売上（億円）

20

100

80

60

40

20

0

54.1 52.4




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

Consolidated Balance Sheets

As of Dec. 31. 2018

As of Dec. 31, 2017

As of Dec. 31. 2018

As of Dec. 31, 2017

Assets Liabilities

Current assets 387,244 397,506

Current liabilities 129,903 157,398

Non-current liabilities 65,317 55,911

Non-current assets 111,545 113,325

Total liabilities 195,220 213,310

Net assets

Total net assets 303,570 297,522

Total assets 498,790 510,832 Total liabilities and net assets 498,790 510,832


Consolidated Statements of Income

From January 1, 2018 to December 31, 2018

From January 1, 2017 to December 31, 2017

Net sales 621,591 632,189

Gross profit 218,173 223,771

Operating income 28,941 30,406

Ordinary income 30,519 31,491

Profit before income taxes 30,708 30,918

Profit attributable to owners of parent 20,826 20,679

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


Issues to Be Addressed



Outlook for Japanese economy

Consumption tax rate hike

Uncertainty about the outcome of trade issues and overseas economies

24

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

Continuation of mild recovery; however, future prospects remain unclear


Build on our various strengths to expand our business domain even further


25

Priority as a Group

■ Strong customer base■ Range of highly competitive Canon

products■ IT capabilities



26

Long-Term Management Objectives Phase III（2016-2020）

Long-Term Management Objectives Phase III（2016-2020）

Help resolve social issues with advanced imaging & IT solutionsGroup Mission

The Canon Marketing Japan Group understands its customers

and grows with its customers.Group Vision

Focus on expansion of operations



27

(i) Achieve profitable growth in expanding market areas

(ii) Raise productivity in Canon’s existing businesses including cameras, MFPs and printers

(iii) Implement structure reforms to rebuild business portfolio

(iv) Use alliances and M&A to enter new areas, expand operations, and supplement capabilities

(v) Implement organizational, personnel and Human Resourcesstrategies for achieving sustainable business expansion

(vi) Reduce SG&A expenses through radical cost structure reforms

Three-Year Management Plan 2019 to 2021Three-Year Management Plan 2019 to 2021



28

(i) Achieve profitable growth in expanding market areas

(ii) Raise productivity in Canon’s existing businesses including cameras, MFPs and printers

(iii) Implement structure reforms to rebuild business portfolio

(iv) Use alliances and M&A to enter new areas, expand operations, and supplement capabilities

(v) Implement organizational, personnel and Human Resourcesstrategies for achieving sustainable business expansion

(vi) Reduce SG&A expenses through radical cost structure reforms

Three-Year Management Plan 2019 to 2021Three-Year Management Plan 2019 to 2021

Use IT solutions to propel our future growth



29

Specific strategies in IT solutions business

1．Raise productivity and expand operations in SI services business

Make effective use of customer base to expand business-specific solutions.

Seek to shift away from contract-based system development to proposal-based development using packaged software and service provision-based SI.



30

2．Increase added value in IT infrastructure services

Create projects that encompass added value services such as system monitoring and security operations, with Nishi-Tokyo Data Center playing a central role

Seek to increase profitability



31

3．Expand IT solutions business with small-to-medium-sized customers

Become an “IT concierge,” fulfilling the role of IT officer for small-to-medium-sized customers, and strengthen marketing of solutions built around security products.

Share the knowhow developed in this field with business partner channels and make this knowhow a pillar for the growth of the Group’s IT solutions business



32

4．Leverage IT to expand BPO services

Consolidate the BPO businesses of Group companies to establish the BPO Management Center

Establish business-specific BPO models based on an intimate knowledge of every type of business and provide services with high levels of expertise and productivity



33

5．Ensure SEs and professional human resources

Seek to expand SEs and human resources with expertise in each business area to accelerate achievement of a growth scenario in the IT solutions business


Matters to Be Resolved


Matters to be Resolved

35

Dividends from Surplus

Item No. 1


Item No. 1 Dividends from Surplus

2440 45 50

60 60

0

20

40

60

80

46期 47期 48期 49期 50期 51期（予定）

Changes in Annual Dividend per Share (Yen)

36

Year-end Dividend 35.00 yen per common share of the CompanyTotal Amount of

Year-end Dividends 4,538,349,620 yen

Effective Date March 28, 2019

46th

Business term47th

Business Term48th

Business Term49th

Business Term50th

Business Term51st

Business Term(Plan)



37

Election of Six Directors

Item No. 2



38

Payment of Bonuses to Directors

Item No. 3


Item No. 3 Payment of Bonuses to Directors

39

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

Total Amount of Bonuses to Directors 40,050,000 yen



40

Determination of Compensation of Directors under Performance-Based Stock Compensation Plan

Item No. 4


Item No. 4 Determination of Compensation of Directors under Performance-Based Stock Compensation Plan

41

Outline of the Plan

Amount of Compensation

of Directors

Granting of performance-based stock compensation of not more than 800 million yen per year, which is the limit on compensation of Directors approved in the 39th Ordinary General Meeting of Shareholders

After Eligible Officers have retired from office

Performance-based stock compensation plan to provide an incentive to achieve the full-year consolidated income plan

Timing of receipt of delivery of shares


Canon Marketing Japan Group

canon marketing japan inc....marketing of solutions built around security products. share the...

Documents