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Canon Lays Out Strategy, Financial Goals in New Report

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Canon Inc. of Tokyo, Japan, today published its Annual Report for 2023, which summarizes the company’s financial performance, and also lays out its corporate strategy.

Financial-Results Summary for 2023

Canon posted solid financial results for 2023. The company had sales of ¥4.18 trillion ($27.65 billion), up 3.7 percent year-over-year; operating profit of ¥375.4 billion ($2.48 billion), up 6.2 percent year-over-year; and net income of ¥264.5 billion ($1.74 billion), up 8.4 percent year-over-year. The year 2023 also marked the third consecutive year of sales and profit growth for Canon.

Company Reorganization

In April 2021, Canon reorganized, combining  some new and existing businesses, and now has four business groups: Printing, Medical, Imaging, and Industrial.

Canon says it further intends to streamline operations by eliminating organizational overlap. It also says it will develop new products and solutions by combining technologies within the respective groups.

For its corporate planning schedule, Canon is currently in Phase VI, which began in 2021.

Printing Group

Canon’s Printing Group primarily consists of office MFPs, laser printers, inkjet printers, and commercial and industrial printers.

In the field of commercial and industrial printers, in 2023 Canon expanded its business with such measures as simultaneous launches of the varioPRINT iX1700, a digital commercial printer, and the LabelStream LS2000 label printer. Both products are part of the overall industry trend of transitioning from analog to digital printing.

As for office MFPs, Canon says it aim to increase its market share, offering more added value by providing print solutions attuned to digital transformation (DX). These solutions will include cloud-based smart services for predictive maintenance, as well as for diagnosing and fixing failures. Canon will also boost its MFP cost competitiveness mainly through the standardization of product platforms.

Regarding inkjet and laser printers, in order to support hybrid working styles that have become commonplace in the last few years, Canon says it will look to offer a printing environment not limited to the constraints of one’s physical working location by harnessing its two technological strengths in the printing field, electrophotography and inkjet.

Phase VI Policies

For Canon’s Phase VI, its basic policy is to accelerate its productivity improvement and corporate portfolio transformation through new business creation.

For 2025, the final year of Phase VI, the company is targeting “record-high” sales of more than ¥4.50 trillion ($29.75 billion); an operating profit ratio of at least 12 percent; a net profit ratio of 8 percent or higher; and in terms of financial soundness, a shareholder equity ratio of at least 65 percent.

Now that there are only two years left in Phase VI, the company says 2024 will be a crucial year for the achievement of its ultimate goals. It’s therefore focusing on the following four priority measures: (1) strengthen and expand industry-oriented business groups, (2) reorganize its global supply chain, (3) strengthen its technological research capability, and (4) address cybersecurity risks.

Supply-Chain Reorganization – Focus on Japan

The company noted that in virtually every global environment, the supply chain is a manufacturer’s lifeline.

It says that not only for economic reasons, but also for stability and sustainability, it needs to reorganize its supply chain – not surprising in the wake of COVID-19 pandemic supply-chain disruptions.

First, it will consolidate Canon production sites in countries and regions where there is political and social stability. Second, in order to promote the return of production of high-value-added products to Japan, its will reinforce its automation technology and technology for in-house production through cooperation among design, production technology, and production sites.

The complete Canon 2023 report, which also provides strategies for its Medical, Imaging, and Industrial businesses. is available here.

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