Canon : Third Quarter 2021 Results Presentation

Canon Inc.

Third Quarter 2021 Results

October 26, 2021

Toshizo Tanaka

Executive Vice President & CFO

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.

Agenda

 3Q 2021 Results

P2 - 4

 FY 2021 Projection	P5 - 8
 Details by Business	P9 - 16
(3Q 2021 Results & FY 2021 Projection)
 Financial Situation	P17 - 18
 Sustainability Measures	P19
 Excellent Global Corporation Plan Phase VI	P20
 Supplementary Information	P21 - 25

1

Key Message

(3Q 2021 Results)

External Environment

• No significant change in demand, despite COVID-19 cases rising again
• Significant confusion in supply chain due to parts shortages, lockdowns etc.

Business Performance

• Actual demand was solid. Missed sales target due to supply constraints
• Fourth consecutive quarter of sales and profit growth

(Billions of yen)	3Q 2021		3Q 2020			% Change
Actual		Actual
Net Sales	833.3		758.9			+9.8%
Gross Profit	388.0		327.6			+18.4%
(% of Net Sales)	46.6%		43.2%
Op. Expenses	329.3		308.4
(% of Net Sales)	39.6%		40.7%
Op. Profit	58.7		19.2			+206.0%
(% of Net Sales)	7.0%		2.5%
IBT	79.3		22.8			+247.8%
Net Income	49.3		16.7			+196.1%
(% of Net Sales)	5.9%		2.2%
USD	110.10		106.17
EURO	129.86		124.13

2

FY 2021 Financial Results by Business Unit

(3Q 2021 Actual versus 3Q 2020 Actual)

• Printing and Imaging - Sales and profit growth in 3Q, double-digit profitability every quarter this year
• Medical - 4th consecutive quarter of sales growth, Industrial & Others - Sales growth and profit decline

(Billions of yen)		3Q 2021	3Q 2020	% Change
	Actual	Actual
Printing	Net Sales	459.2	430.1	+6.8%
Op. Profit	60.3	18.2	+231.0%
	(%)	(13.1%)	(4.2%)
Imaging	Net Sales	153.8	140.7	+9.3%
Op. Profit	17.7	12.5	+42.2%
	(%)	(11.5%)	(8.9%)
Medical	Net Sales	115.7	105.4	+9.8%
Op. Profit	6.0	5.0	+18.7%
	(%)	(5.2%)	(4.8%)
Industrial &	Net Sales	130.4	103.8	+25.6%
Others	Op. Profit	1.5	4.7	-68.7%
	(%)	(1.1%)	(4.5%)
Corporate &	Net Sales	-25.8	-21.1	-
Eliminations	Op. Profit	-26.8	-21.2	-
Total	Net Sales	833.3	758.9	+9.8%
Op. Profit	58.7	19.2	+206.0%
	(%)	(7.0%)	(2.5%)		3

FY 2021 Operating Profit Analysis

(3Q 2021 Actual versus 3Q 2020 Actual)

• Growth in Printing service revenue and consumables contributes to profit increase
• Increase in expenses linked to sales and development

	Change in Net Sales, excluding FX
(Billions of yen)	impact, for reference	+9.8
Printing:
	Imaging:	+5.7
	Medical:	+8.0
	Industrial & Others:	+25.4

Eliminations:-4.7

Total:+44.2

FX Details

Net Sales: +23.9

Cost of Sales: -7.5

Op. Expenses: -7.3

4