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Canon Inc. Third Quarter 2025 Results October 27, 2025 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. Should one or more 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.
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Agenda 1 ◼ 3Q 2025 Results P 2-5 ◼ FY 2025 Projection P 6-10 ◼ Financial Situation P 11-13 ◼ Summary P 14 ◼ Supplementary Information P 15-20
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2 3Q 2025 Review ◼ In our markets, additional U.S. tariffs and geopolitical risks led to trend of postponed investment greater than in Q2 ◼ Printing Group net sales declined, but steady growth in camera and network camera sales, more than 20% increase in Industrial Group net sales ◼ Net sales up 2% in Q3, at record high YTD ◼ Profit down due to tariffs in Q3, but thanks to increase in net sales and effects from last year’s sales structure review, sales and profits up YTD
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3 P&L (3Q 2025 Results) (Billions of yen) 2025 Actual 2024 Actual % Change 2025 Actual 2024 Actual % Change Net Sales 1,104.3 1,079.8 +2.3% 3,302.9 3,236.1 +2.1% Gross Profit 512.0 516.4 -0.8% 1,547.7 1,546.4 +0.1% (% of Net Sales) 46.4% 47.8% 46.9% 47.8% Op. Expenses 424.0 418.2 1,245.3 1,249.8 (% of Net Sales) 38.4% 38.7% 37.7% 38.6% Op. Profit 88.0 98.2 -10.3% 302.4 296.6 +1.9% (% of Net Sales) 8.0% 9.1% 9.2% 9.2% Non-operating Income 3.8 -8.9 11.7 14.2 IBT 91.8 89.3 +2.8% 314.1 310.8 +1.1% Net Income 63.7 68.8 -7.4% 219.6 218.6 +0.5% (% of Net Sales) 5.8% 6.4% 6.6% 6.8% USD 147.50 149.00 -1.50 148.06 151.34 -3.28 EUR 172.33 163.81 8.52 165.56 164.58 0.98 3Q 1Q-3Q
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98.2 +6.0 -5.0 -7.1 +3.7 +0.1 -7.9 88.0 2024 Actual FX Sales Volume /Product Mix Pricing Cost Op. Expense Tariff Impact 2025 Current Projection -10.2 billion yen（-10.3%） 4 (Billions of yen) 3Q 2025 Operating Profit Analysis (3Q 2025 Actual versus 3Q 2024 Actual) FX Details Net Sales: Cost of Sales: Op. Expenses: +10.9 +1.0 -5.9 Change in Net Sales, excluding FX impact, for reference Printing: Medical: Imaging: Industrial: Others: Total: -9.9 +4.5 +17.4 +14.1 +1.7 +27.8
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5 3Q 2025 Financial Results by Business Unit * From 2025, some reclassification between the Industrial Business Unit and Eliminations was made to manage the performance of reportable segments more appropriately. The figures for 2024 were also reclassified. 2025 Actual 2024 Actual % Change 2025 Actual 2024 Actual % Change Net Sales 604.0 610.9 -1.1% 1,825.6 1,845.7 -1.1% Op. Profit 52.2 60.7 -14.0% 202.2 205.4 -1.6% (%) (8.6%) (9.9%) (11.1%) (11.1%) Net Sales 132.9 132.3 +0.4% 412.2 407.5 +1.1% Op. Profit 6.4 4.7 +36.4% 18.2 15.7 +15.4% (%) (4.8%) (3.5%) (4.4%) (3.9%) Net Sales 253.6 239.6 +5.9% 726.4 659.8 +10.1% Op. Profit 38.1 43.6 -12.6% 108.4 98.9 +9.7% (%) (15.0%) (18.2%) (14.9%) (15.0%) Industrial Net Sales 85.4 70.1 +21.7% 245.2 230.8 +6.3% Op. Profit 13.9 14.0 -0.4% 40.0 44.0 -9.0% (%) (16.3%) (20.0%) (16.3%) (19.1%) Others & Net Sales 55.4 53.9 +2.7% 172.0 168.9 +1.8% Corporate Op. Profit -22.9 -24.6 - -67.1 -68.2 - Eliminations Net Sales -27.0 -27.0 - -78.5 -76.6 - Op. Profit 0.3 -0.2 - 0.7 0.8 - Net Sales 1,104.3 1,079.8 +2.3% 3,302.9 3,236.1 +2.1% Op. Profit 88.0 98.2 -10.3% 302.4 296.6 +1.9% (%) (8.0%) (9.1%) (9.2%) (9.2%) 3Q 1Q-3Q (Billions of yen) Printing Total Medical Imaging
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2025 Outlook 6 ◼ In Q4, expected trend of postponed investment to continue due to additional U.S. tariffs and impact of geopolitical risks ◼ Expect continued growth of cameras and network camera businesses, Printing Group to gain share with new products, and large-size equipment business to steadily convert orders into sales ◼ Achieve record high quarterly net sales of 1.3 trillion yen or more and 11% profitability level in Q4 to maintain sales and profit growth for full year ◼ Lowered projections for operating profit by 9 billion yen and net income by 4.5 billion yen, reflecting impact of additional U.S. tariffs from August as well as worsening market environment ◼ Raising dividend by 5 yen to 160 yen per share, returning to pre-COVID level of 2019, and carried out 300 billion yen in share buybacks
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7 2025 Financial Projection (Full Year) (Billions of yen) 2025 Current Projection 2024 Actual % Change 2025 Previous Projection Amount Change Net Sales 4,616.0 4,509.8 +2.4% 4,600.0 +16.0 Gross Profit 2,154.0 2,143.1 +0.5% 2,160.0 -6.0 (% of Net Sales) 46.7% 47.5% 47.0% Op. Expenses 1,703.0 1,698.2 1,700.0 -3.0 (% of Net Sales) 36.9% 37.6% 37.0% Op. Profit 451.0 444.9 +1.4% 460.0 -9.0 (% of Net Sales) 9.8% 9.9% 10.0% IBT 466.0 466.3 -0.1% 472.0 -6.0 Net Income 325.5 325.1 +0.1% 330.0 -4.5 (% of Net Sales) 7.1% 7.2% 7.2% USD 148.58 151.63 145.06 EUR 168.24 163.99 163.70 Net Sales Op. Profit USD 3.1 billion yen 0.7 billion yen EUR 1.9 billion yen 1.0 billion yen Impact of exchange rate movement （4Q impact given a one yen change） * 2024 figures exclude the impact of impairment loss.
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460.0 +26.9 -48.7 -2.4 +2.5 +20.9 -8 451.0 2025 Previous Projection FX Sales Volume /Product Mix Pricing Cost Op. Expense Tariff Impact 2025 Current Projection -9.0 billion yen 8 FX Details Net Sales: Cost of Sales: Op. Expenses: +80.1 -29.3 -23.9 Change in Net Sales, excluding FX impact, for reference Printing: Medical: Imaging: Industrial: Others: Total: -24.2 -9.1 +14.0 -15.7 -13.3 -48.3 2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2025 Previous Projection) (Billions of yen)
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Review of Business Structure 9 (Billions of yen) 2024 Actual 1Q 2Q 3Q 4Q Current Projection Full year Current Projection Sales Cost -20.0 -1.2 -0.5 -0.8 -3.5 -6.0 Structural Effect 8.0 5.0 4.9 5.3 6.8 22.0 Reform PL Impact -12.0 3.8 4.4 4.5 3.3 16.0 Production Cost 0.0 -0.9 -0.1 -4.8 -14.2 -20.0 Structural Effect 0.0 0.0 0.0 0.0 0.0 0.0 Reform PL Impact 0.0 -0.9 -0.1 -4.8 -14.2 -20.0 Medical Cost -2.5 -0.7 -0.7 -0.7 -2.9 -5.0 Business Effect 0 1.5 2.2 2.0 4.3 10.0 Innovation PL Impact -2.5 0.8 1.5 1.3 1.4 5.0 Total Cost -22.5 -2.8 -1.3 -6.3 -20.6 -31.0 Effect 8.0 6.5 7.1 7.3 11.1 32.0 PL Impact -14.5 3.7 5.8 1.0 -9.5 1.0 2025
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10 2025 Financial Projection by Business Unit (Full Year) * 2024 figures exclude the impact of impairment loss. * From 2025, some reclassification between the Industrial Business Unit and Eliminations was made to manage the performance of reportable segments more appropriately. The figures for 2024 were also reclassified. 2025 Current Projection 2024 Actual % Change 2025 Previous Projection Amount Change Tariff Impact excl. Tariff Impact Net Sales 2,495.1 2,522.7 -1.1% 2,489.7 +5.4 -12.6 +18.0 Op. Profit 276.2 289.9 -4.7% 287.7 -11.5 -3.5 -8.0 (%) (11.1%) (11.5%) (11.6%) Net Sales 580.9 568.8 +2.1% 582.1 -1.2 -0.9 -0.3 Op. Profit 31.3 24.7 +26.9% 34.5 -3.2 -2.4 -0.8 (%) (5.4%) (4.3%) (5.9%) Net Sales 1,049.7 937.4 +12.0% 1,011.1 +38.6 +0.2 +38.4 Op. Profit 163.4 151.3 +8.0% 158.3 +5.1 -2.1 +7.2 (%) (15.6%) (16.1%) (15.7%) Industrial Net Sales 365.9 351.7 +4.0% 380.3 -14.4 0 -14.4 Op. Profit 63.6 68.9 -7.7% 68.3 -4.7 0 -4.7 (%) (17.4%) (19.6%) (18.0%) Others & Net Sales 224.4 233.7 -4.0% 235.1 -10.7 -0.1 -10.6 Corporate Op. Profit -84.1 -91.2 - -89.1 +5.0 -0.2 +5.2 Eliminations Net Sales -100.0 -104.5 - -98.3 -1.7 -1.7 Op. Profit 0.6 1.3 - 0.3 +0.3 +0.3 Net Sales 4,616.0 4,509.8 +2.4% 4,600.0 +16.0 -13.4 +29.4 Op. Profit 451.0 444.9 +1.4% 460.0 -9.0 -8.2 -0.8 (%) (9.8%) (9.9%) (10.0%) Printing Total (Billions of yen) Medical Imaging
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11 Inventory ◼ Reduced work-in-process and built-up inventory of finished goods for year-end selling season ◼ Aiming for appropriate level of inventory of 60 days or less by end of 2025 (Billions of yen) Mar.-end Jun.-end Sep.-end Dec.-end Mar.-end Jun.-end Sep.-end Amt. 347.6 361.5 344.1 342.7 334.4 346.1 368.1 Days 52 53 50 49 47 52 55 Amt. 141.1 146.0 142.1 133.2 139.8 138.5 148.5 Days 86 97 95 83 85 90 99 Amt. 191.5 182.4 168.5 158.6 176.3 166.4 172.1 Days 86 79 63 56 66 64 61 Industrial Amt. 146.4 150.2 158.7 138.0 150.7 160.3 154.7 Days 160 168 175 130 146 183 159 Others & Corporate Amt. 68.3 72.4 76.3 69.3 71.6 68.2 70.4 Amt. 894.9 912.5 889.7 841.8 872.8 879.5 913.8 Days 76 77 72 65 68 73 74 2024 Printing Total 2025 Imaging Medical
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Cash Flow (Full Year) 12 ◼ Secure 500 billion yen or more in operating CF ◼ Invest in future growth and carry out active shareholders return * 2024 net income figure excludes the impact of impairment loss. (Billions of yen) FY2025 Current Projection FY 2025 Previous Projection FY 2024 Actual FY 2023 Actual Net income 325.5 330.0 325.1 264.5 Depreciation and amortization 235.0 235.0 235.5 238.7 Others -36.5 45.0 46.2 -52.0 Net cash provided by operating activities 524.0 610.0 606.8 451.2 Capital expenditure -250.0 -250.0 -237.0 -231.7 Others -5.0 -76.0 -60.3 -43.7 Net cash used in investing activities -255.0 -326.0 -297.3 -275.4 Free cash flow 269.0 284.0 309.5 175.8 Net cash provided by (used in) financing activities -271.0 -360.0 -226.0 -156.7 Effect of exchange rate changes on cash and cash equivalents 1.4 -13.6 16.7 20.1 Net change in cash and cash equivalents -0.6 -89.6 100.2 39.2 Cash and cash equivalents at end of period 501.0 412.0 501.6 401.3 Cash-on-hand (In months of Net sales) 1.2 1.0 1.3 1.1
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Return on Capital 13 ◼ Expect ROE to be 9.8% in 2025 ◼ Aiming to achieve 10% or higher at early stage, through sales growth and progress in structural reforms 3.2% 7.9% 8.1% 8.2% 9.4% 9.8% 0.8x 1.0x 0.9x 1.1x 1.4x 0% 2% 4% 6% 8% 10% 12% 14% 2020 2021 2022 2023 2024 2025 ROE PBR Weighted Average Cost of Capital (WACC) 5% to 6％ (4.8% incl. Impairment Loss)
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14 Summary Net Sales 3.51T 4.03T 4.18T 4.51T 4.62T Operating Profit 281.9B 353.4B 375.4B 444.9B 451.0B 0 200 400 600 800 1,000 0 1 2 3 4 5 2021 2022 2023 2024 2025 Net Sales (Trillions of yen) Operating Profit （Billions of yen） ◼ In 2025, final year of 5-year plan, along with 5th consecutive year of sales and profit growth, will accelerate structural reforms to make significant advancement in next 5-year plan * 2024 excludes the impact of impairment loss.
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Supplementary Information
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444.9 -8.3 +54.8 -15.6 +8.5 -0.3 -33.0 451.0 2024 Actual (excl. Impairment Loss) FX Sales Volume /Product Mix Pricing Cost Op. Expense Tariff Impact 2025 Current Projection +6.1 billion yen（+1.4%） 15 FX Details Net Sales: Cost of Sales: Op. Expenses: -19.2 +15.4 -4.5 Change in Net Sales, excluding FX impact, for reference Printing: Medical: Imaging: Industrial: Others: Total: -9.9 +25.9 +137.7 +14.1 -4.6 +163.2 2025 Operating Profit Analysis (FY 2025 Current Projection versus FY 2024 Actual) (Billions of yen)
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16 Printing Net Sales Growth Rate Y/Y (Local Currency) Unit Growth Rate Y/Y Net Sales & Net Sales Growth Rate Y/Y Production 107.5 105.5 +1.9% 446.6 441.5 +1.2% 446.0 +0.6 Office Office MFDs 149.2 152.9 -2.4% 636.5 647.0 -1.6% 636.1 +0.4 Others 105.0 98.0 +7.1% 429.3 408.1 +5.2% 427.0 +2.3 254.2 250.9 +1.3% 1,065.8 1,055.1 +1.0% 1,063.1 +2.7 Prosumer LPs 159.4 171.7 -7.1% 640.3 679.6 -5.8% 637.0 +3.3 IJPs 82.9 82.8 +0.1% 342.4 346.5 -1.2% 343.6 -1.2 242.3 254.5 -4.8% 982.7 1,026.1 -4.2% 980.6 +2.1 Net Sales 604.0 610.9 -1.1% 2,495.1 2,522.7 -1.1% 2,489.7 +5.4 Op. Profit 52.2 60.7 -14.0% 276.2 289.9 -4.7% 287.7 -11.5 % 8.6% 9.9% 11.1% 11.5% 11.6% 2025 Previous Projection Amount Change 3Q Full Year 2025 Actual 2024 Actual % Change 2025 Current Projection 2024 Actual % Change 3Q Projection Production +0.0% +0.9% Office +0.5% +1.2% Prosumer -6.3% -3.5% Total -2.4% -0.8% 2025 3Q Projection Office MFDs -4% +0% LPs -23% -14% IJPs -9% +2% 2025 (Billions of yen)
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17 Printing Hardware & Non-hardware Sales 3Q Actual Full Year Actual 3Q Actual Full Year Actual Hardware +3% +2% +10% +11% Non-hardware +1% +1% +5% +9% Hardware +1% +2% +7% +4% Non-hardware 0% 0% +2% +2% Hardware -7% -1% +1% +1% Non-hardware +2% -2% +1% +7% Hardware -8% -1% -2% -5% Non-hardware +1% -2% -2% +1% Hardware -22% -13% +33% +17% Non-hardware +4% -1% +8% +9% Hardware -23% -13% +32% +11% Non-hardware +2% 0% +11% +5% Hardware -4% +1% -3% -2% Non-hardware +3% -3% -4% 0% Hardware -5% +1% -6% -8% Non-hardware +2% -2% -6% -6% JPY LC FY 2025 FY 2024 JPY LC JPY LC Production Office MFDs LPs IJPs JPY LC
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18 Medical Net Sales & Net Sales Growth Rate Y/Y Net Sales Growth Rate Y/Y (Local Currency) * 2024 figures exclude the impact of impairment loss. 3Q Projection Total +0.1% +2.8% 2025 (Billions of yen) Net Sales 132.9 132.3 +0.4% 580.9 568.8 +2.1% 582.1 -1.2 Op. Profit 6.4 4.7 +36.4% 31.3 24.7 +26.9% 34.5 -3.2 % 4.8% 3.5% 5.4% 4.3% 5.9% 3Q Full Year 2024 Actual % Change 2025 Previous Projection Amount Change 2025 Actual 2024 Actual % Change 2025 Current Projection
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19 Imaging Net Sales Growth Rate Y/Y (Local Currency) Digital Interchangeable Lens Cameras (DILCs) Units (Millions) & Unit Growth Rate Y/Y Net Sales & Net Sales Growth Rate Y/Y 3Q Projection Cameras +3.6% +9.6% NWCs & Others +7.4% +17.7% Total +5.1% +12.7% 2025 3Q Projection Units (Millions) 0.73 3.00 Growth Rate +1% +6% 2025 (Billions of yen) Cameras 152.7 146.0 +4.6% 632.1 579.9 +9.0% 610.9 +21.2 Network Cameras & Others 100.9 93.6 +7.9% 417.6 357.5 +16.8% 400.2 +17.4 Net Sales 253.6 239.6 +5.9% 1,049.7 937.4 +12.0% 1,011.1 +38.6 Op. Profit 38.1 43.6 -12.6% 163.4 151.3 +8.0% 158.3 +5.1 % 15.0% 18.2% 15.6% 16.1% 15.7% 2025 Current Projection 2024 Actual % Change 2025 Previous Projection Amount Change 3Q Full Year 2025 Actual 2024 Actual % Change
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Industrial Lithography Equipment (Units)Net Sales Growth Rate Y/Y (Local Currency) 20 Net Sales & Net Sales Growth Rate Y/Y * From 2025, some reclassification between the Industrial Business Unit and Eliminations was made to manage the performance of reportable segments more appropriately. The figures for 2024 were also reclassified. 3Q Projection Opt. Equip. +18.5% +2.7% Industrial Equip. +24.2% +7.2% Total +20.0% +4.0% 2025 3Q Projection Semiconductor KrF 7 50 i-line 47 191 54 241 FPD 11 33 2025 (Billions of yen) Optical Equipment 61.9 51.4 +20.4% 260.4 253.4 +2.8% 272.6 -12.2 Industrial Equipment 23.5 18.7 +25.2% 105.5 98.3 +7.2% 107.7 -2.2 Net Sales 85.4 70.1 +21.7% 365.9 351.7 +4.0% 380.3 -14.4 Op. Profit 13.9 14.0 -0.4% 63.6 68.9 -7.7% 68.3 -4.7 % 16.3% 20.0% 17.4% 19.6% 18.0% 2025 Actual 2024 Actual % Change 2025 Current Projection 2024 Actual % Change 2025 Previous Projection Amount Change 3Q Full Year