Results for 1Q of FY2021 (from January 1 to March 31, 2021)
During the period from January to March, the Japanese economy continued to experience difficulties due to the impact of the COVID-19 pandemic. While consumer spending remained sluggish mainly due to the impact of voluntary restraint on outings in response to the re-enforcement of a state of emergency, corporate capital spending indicated signs of a recovery, mainly in IT-related investments, reflecting improvements in overseas economies, among other factors.
Amid this economic environment, the Group expanded product lines and services in line with growth in demand for teleworking. However, net sales declined 0.8% year on year, to 140,359 million yen, largely reflecting a contraction of the market for mainstay business equipment.
On the profit side, operating income and ordinary income increased by 36.2% and 40.0% year on year, to 10,581 million yen and 10,906 million yen, respectively, chiefly reflecting a rise in the composition ratio of high value-added items in the consumer segment and efforts made to reduce selling, general and administrative expenses on a company-wide basis. Profit attributable to owners of parent came to 7,989 million yen (up 94.6% year on year) mainly due to the posting of extraordinary gains and losses from the transfer of shares of consolidated subsidiaries.
Full-year forecasts for the fiscal year ending December 31, 2021
Although economic indicators for the Japanese economy show a recovery trend, the Group forecasts that uncertain conditions will continue going forward, mainly due to the ongoing unpredictability of the timing of COVID-19 containment, coupled with the invisibility of overseas economies.
As a result of reviewing full-year financial results forecasts based on the progress during the first quarter, the Group not only recognizes that inkjet printers have been performing strongly, mainly due to telework-related demand but also forecasts that IT Solutions will exceed the initial plan. Taking these factors into consideration, the Group has decided to revise the consolidated results forecast announced on January 27.
|Net Income||567.0 billion yen (up 4.0% year on year)|
|Operating Income||34.0 billion yen (up 8.6% year on year)|
|Ordinary Income||34.8 billion yen (down 1.2% year on year)|
|Net income attributable to owners of parent||34.8 billion yen (up 6.8% year on year)|
Explanation of the 2021 to 2025 Long-Term Management Objectives and the 2021 to 2023 Three-Year Management Plan
The Group has formulated the 2021 to 2025 Long-Term Management Objectives and the 2021 to 2023 Three-Year Management Plan for the purpose of sustaining growth and enhancing corporate value on a medium- to long-term basis. The Group considers that the sustained development of both society and the Group, which is what sustainability-oriented management seeks to achieve, is facilitated by solving social issues through business activities, based on the Group's corporate philosophy of Kyosei: Living and working together for the common good*. With this in mind, it has formulated the Long-Term Management Objectives.
The Three-Year Management Plan is an action plan that the Group will implement to fulfill the 2025 vision and management indicators, based on the basic strategies set out in the Long-Term Management Objectives.
- *The idea of Kyosei: Living and working together for the common good is a corporate philosophy that the Canon Group established in 1988, which conveys its dedication to seeing all people, regardless of culture, customs, language or race, harmoniously living and working together in happiness into the future.
Professional corporate group that solves social and customer issues using ICT and the power of humans
- Sustainably increasing corporate value by solving social issues through business
- Becoming a high-profit corporate group
- Business reform placing IT solution business at the center of growth
- Improving the sales system for each customer segment using the customer base
- Increasing the added value and enhancing profitability with respect to the Canon product business
- Creating a virtuous circle by improving management capital
- Accelerating business growth by developing skilled human resources and increasing engagement
- Accelerating business growth through strategic investment
2025 Management Indicators
- Net income:
- 650 billion yen (including 300 billion yen from sales of IT solutions)
- Operating income:
- 50 billion yen
About the earnings forecasts and future prospects on this website
The earnings forecasts and future prospects on this website reflect the Company’s assumptions based on information available at the time of announcement. Please note that they may differ significantly from the actual results due to changes in many different factors.