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
© Canon Marketing Japan Inc. 2020 2
Business ReportConsolidated Financial StatementsNon-Consolidated Financial Statements
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Operating Income
4
Operating Income (Billions of yen)
32.4
2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)
40
30
20
10
0
28.9
© Canon Marketing Japan Inc. 2020
Ordinary Income
5
30.533.9
Ordinary Income (Billions of yen)2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)
40
30
20
10
0
© Canon Marketing Japan Inc. 2020
Profit Attributable to Owners of Parent
6
20.8 22.3
Profit Attributable to Owners of Parent (Billions of yen)
2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)
30
20
10
0
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Consumers
8
iNSPiC ZV-123iNSPiC REC iNSPiC PV-123
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Consumers
10
150.2 132.8
Sales (Billions of yen)
2018 (Previous Fiscal Year) 2019 (Current Fiscal Year)
300
200
100
0
250
150
50
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Enterprise
15
188.2 195.8
Sales (Billions of yen)
2018 (Previous fiscal year) 2019 (Current fiscal year)
300
200
100
0
250
150
50
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Area
18
257.6 268.3
Sales (Billions of yen)
2018 (Previous fiscal year) 2019 (Current fiscal year)
300
200
100
0
250
150
50
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Professional
20
Good performances in IT systems for hospitals and digital radiography
Health Care
Digital radiography
Sales increased
© Canon Marketing Japan Inc. 2020
Professional
21
46.4 43.7
Sales (Billions of yen)
2018 (Previous fiscal year) 2019 (Current fiscal year)
100
40
0
80
20
60
© Canon Marketing Japan Inc. 2020 22
(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
© Canon Marketing Japan Inc. 2020 23
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)
© Canon Marketing Japan Inc. 2020 24
Issues to Be Addressed
© Canon Marketing Japan Inc. 2020
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020
Issues to Be Addressed
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
© Canon Marketing Japan Inc. 2020 32
Matters to Be Resolved
© Canon Marketing Japan Inc. 2020
Matters to be Resolved
33
Dividends from Surplus
Item No. 1
© Canon Marketing Japan Inc. 2020
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)
© Canon Marketing Japan Inc. 2020
Matters to be Resolved
35
Election of Six Directors
Item No. 2
© Canon Marketing Japan Inc. 2020
Matters to be Resolved
36
Election of Three Audit & Supervisory Board Members
Item No. 3
© Canon Marketing Japan Inc. 2020
Matters to be Resolved
37
Item No. 4
Election of Accounting Auditor
© Canon Marketing Japan Inc. 2020
Matters to be Resolved
38
Item No. 5
Payment of Bonuses to Directors
© Canon Marketing Japan Inc. 2020 39
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 Inc. 2020
Canon Marketing Japan Group
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