Financial Highlights

Results for 1Q of FY2023 (from January 1 to March 31, 2023)

During the period from January to Marchr of the fiscal year under review, the Japanese economy continued to show signs of a moderate recovery in the era of coexistence with COVID-19. Consumer spending was on moderate recovery track, reflecting increasing travel and restaurant meals as a result of changes in basic policies for addressing COVID-19 infections and a recovery in inbound tourism consumption on account of mitigation of border measures to prevent the spread of coronavirus, among other things. Corporate capital expenditure was robust in expectation of the early resumption of economic activities, etc. In particular, appetite for IT investment in manufacturing and financial businesses was high and remained strong. Some companies showed weakness, however, due to surges in energy costs and raw material prices attributable to the affairs in Ukraine, etc.

In these situations, the Canon Marketing Japan Group recorded net sales of 154,825 million yen (up 5.0% year on year), primarily attributable to rises in sales from SI services and IT infrastructure services against the backdrop of active corporate IT investment, recovery in the supply of multi-functional printers (MFP) for offices, and buoyant sales of the new cameras with interchangeable lenses.
In terms of profit, operating income increased 3.3% year on year, to 15,285 million yen, ordinary income rose 5.1%, to 15,423 million yen year on year, and net income attributable to owners of parent grew 4.1% year on year, to 10,450 million yen, reflecting a rise in gross profit associated with higher sales.

Full-year projections for the fiscal year ending December 31,2023

Looking ahead to conditions in the fiscal year 2023, the Japanese economy is expected to continue to recover gradually, although there will likely be weakness in some areas. On the other hand, uncertainty about the future is expected to remain due to surges in raw material prices and energy costs caused by the affairs in Ukraine, the wage-hike trend in Japan, deteriorating overseas economies caused partly by monetary tightening around the world, and other factors. Given this economic environment, the Group has decided not to change the consolidated financialprojections announced on January 27, 2023.