Canon Releases Q3 2022 Financial Results

Canon has released third quarter 2022 financial results to the Investor Relations page.

Presentation Material
Results
Supplementary Data

Imaging System Relevant Quotes from the Presentation Material

However, in the third quarter, by further promoting design changes and the procurement of alternative parts, we were largely able to produce products in the volume we planned for. The increase in product supply led to higher unit sales in each business and coupled with the yen’s depreciation, revenue increased for the seventh consecutive quarter, to 996.1 billion yen or 19.5%.

As for operating profit, which measures the results of core business activities, in addition to the increase in sales volume and the yen’s depreciation, by partially reflecting the rise in material and logistical costs in selling prices, sales significantly increased to 81.4 billion yen or 38.7%.

Due to rapid depreciation of the yen, we incurred foreign exchange losses on foreigncurrency-denominated borrowings of the parent company made through the Group’s internal financing system. Though this caused income before income taxes to be down slightly, net income rose 9.7% to 54.1 billion yen.

As for Imaging, the unit sales of interchangeable lens cameras, through a recovery in product supply, thanks to the same abatement of material shortages, returned to growth. This and continued strong sales of interchangeable lenses, contributed to a 32% increase in revenue. As for operating profit, an increase in the proportion of sales attributable to the highly profitable EOS R system of mirrorless cameras and lenses, increased profitability to 18.0%.

As for the global economy, we have not been seeing any signs that historically high inflation, due to the shortage of goods and rise in energy costs, is abating. And for the foreseeable future, we expect monetary tightening and economic slowdown around the world to continue.

In contrast, we are not seeing any significant change in demand for cameras and commercial printing.

Demand for cameras remains solid, even amid economic slowdown, thanks to the launch of new mirrorless models and interchangeable lenses by each company. As a result, we expect the market in 2022 to be 5.45 million units, a slight increase compared to last year. In the third quarter, thanks to the higher volume of product supply and the addition of new models, namely the EOS R7 and EOS R10, mirrorless cameras that incorporate APS-C size sensors, we posted double-digit growth in unit sales, and coupled with an increase in lens sales, a significant increase in overall revenue.

Regarding our unit sales projection for the full year, we maintained our previous projection of 2.8 million units as we will not be able to supply enough products to meet demand. Going forward, we will continue to stimulate demand by steadily strengthening our lineup of EOS R series mirrorless cameras. Cameras that incorporate full-frame sensors, like the EOS R5 and EOS R6, continue to enjoy strong support from professionals and advanced amateurs. Additionally, the 2 new cameras that incorporate APS-C size sensors, with their light-weight and small form factor appeal, are encouraging users who want to enjoy serious photography to switch from SLR cameras or step up from entry models. We have also expanded our range of RF lenses to 32 models, providing users a variety of options.

Going forward, we will continue efforts to expand our market share and maintain high profitability by building a more robust EOS R system lineup.

From the Q&A:

Q3. What are the future prospects for the camera market?

A3. We expect the camera market to hover around 5 million units in the future. As many users are professionals or advanced amateurs, and as the number of applications for commercial-use increases, we expect cameras to become increasingly more high-end and more value-added.

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