Canon Inc (CAJ) 2015 Q4 法說會逐字稿

Good morning or good afternoon, ladies and gentlemen, and welcome to Canon's conference call. Please note that all financial comparisons made during my presentation will be on a year-on-year basis unless otherwise stated.

早安或下午好，女士們先生們，歡迎參加佳能電話會議。 請注意，除非另有說明，否則我在演示期間進行的所有財務比較都將按年進行。

Please turn to slide 3. At the beginning of 2015, we expected a modest global economic recovery led by the United States. In the second half of the year, however, we saw further deceleration in emerging market economies as the slowdown in China became clear. As a result, the rate of global economic growth in 2015 was at its lowest level since the collapse of Lehman Brothers, which was below our expectations.

請看投影片3。2015年初，我們預期全球經濟將在美國的帶動下溫和復甦。 然而，下半年，隨著中國經濟放緩變得明顯，新興市場經濟體進一步減速。 受此影響，2015年全球經濟成長處於雷曼兄弟倒閉以來的最低水平，低於我們的預期。

Against such a backdrop, the camera market remained challenging, resulting in posting lower revenues. Although the office equipment market was also impacted by the deceleration of emerging market economies, sales growth is supported by continued growth of color equipment and the production printers as well as the active launch of new products.

在此背景下，相機市場仍充滿挑戰，導致收入下降。 儘管辦公設備市場也受到新興市場經濟減速的影響，但彩色設備和生產印表機的持續成長以及新產品的積極推出支撐了銷售成長。

In industry and others, strong sales of lithography equipment as well as network cameras, thanks to the consolidation of Axis, were drivers that led to overall sales growth.

在工業和其他領域，由於安訊士的整合，光刻設備和網路攝影機的強勁銷售是整體銷售成長的推動力。

From a profit perspective, we achieved a record high gross profit ratio thanks to efforts to drive cost reduction and improved product mix. Due to proactive investment in development to transform many new businesses and the impact of accounting for newly consolidated companies, however, operating expenses increased, resulting in lower operating profit.

從利潤角度來看，我們透過努力降低成本、改善產品結構，毛利率創歷史新高。 然而，由於積極投資發展以改造許多新業務以及新合併公司會計的影響，營業費用增加，導致營業利潤下降。

Please refer to slide 4. This slide compares our fourth-quarter and full-year performances with those of last year's. Compared with our projections, net sales and operating profit were below target by approximately by JPY20b and JPY10b respectively. This mainly reflects sluggish sales of copiers in Asia. Other products, such as laser printers and cameras, were basically in line with what we expected.

請參閱投影片 4。 與我們的預測相比，淨銷售額和營業利潤分別低於目標約 20b 日圓和 10b 日圓。 這主要反映了亞洲影印機銷售的低迷。 其他產品，例如雷射印表機和相機，基本上符合我們的預期。

Please turn to slide 5. I will now compare our full-year results with those of last year's in more detail.

請翻到投影片 5。

Changes in exchange rate had a positive impact on both net sales and operating profit. As for changes in sales volumes, within industry and others, our lithography equipment and industrial products of Group companies achieved strong sales, as well as network cameras due to the consolidation of Axis.

匯率變動對淨銷售額和營業利潤均有正面影響。 從銷售變化來看，在行業內和其他方面，我們的光刻設備和集團公司的工業產品實現了強勁的銷售，網路攝影機也由於安訊士的整合而實現了強勁的銷售。

Within other business segment, however, camera sales declined, mainly due to lower sales of entry-class models. Sales of office equipment also declined, reflecting the impacts of economic slowdown in the emerging market on sales of monochrome models.

然而，在其他業務領域，相機銷量下降，主要是由於入門級機型銷量下降。 辦公設備銷量也出現下滑，反映出新興市場經濟放緩對單色機型銷售的影響。

Changes in sales volume had a positive impact on operating profit due to a significant improvement in product mix, supported by launches of new high value-added office products and cameras.

由於新的高附加價值辦公產品和相機的推出，產品結構顯著改善，銷售變化對營業利潤產生了積極影響。

As for others, we limited price decline to JPY43.2b, almost half of last year's JPY81.4b.

至於其他產品，我們將價格跌幅限制在 43.2b 日元，幾乎是去年 81.4b 日圓的一半。

Cost reduction was JPY37.2b, thanks to effort to reduce cost through procurement.

由於透過採購努力降低成本，成本降低了 37.2b 日圓。

Expense levels increased due to proactive investment in development to strengthen mainly new businesses and the impact of accounting for newly consolidated companies, resulting in lower operating profit.

由於積極投資發展以加強新業務以及新合併公司會計的影響，費用水準增加，導致營業利潤下降。

Please refer to slide 6. As I discussed in my year-on-year comparisons, amidst a decline in sales of cameras and other consumer products, we achieved an increase in total 2015 revenues thanks to B2B businesses, such as network cameras and lithography equipment.

請參閱幻燈片6。 。

In 2011, Canon embarked on Phase IV of the Excellent Global Corporation Plan. While core businesses continued to matures during Phase IV, we shifted our focus to expanding new businesses through horizontal expansions such as Cinema EOS and Machine Vision. Additionally, through M&A we are expanding sales of production printers and network cameras.

2011年，佳能啟動了第四期卓越全球企業計畫。 在第四階段核心業務不斷成熟的同時，我們將重點轉向透過Cinema EOS和機器視覺等橫向擴張來拓展新業務。 此外，透過併購，我們正在擴大生產印表機和網路攝影機的銷售。

As we look toward 2016, we also expect we can significantly raise the performance of industrial products of Group companies. Other than this, we are also making progress toward completing mass production tool using nanoimprint lithography and next-generation semiconductor production technologies.

展望2016年，我們也預期集團公司工業產品的業績能夠大幅提升。 除此之外，我們也正在利用奈米壓印光刻和下一代半導體生產技術完成大規模生產工具方面取得進展。

Over the past five years, sales by these businesses have grown from 9% to 13% of total sales in 2015. And we expect this ratio to rise to 15% in 2016, as we will continue to strengthen this segment to develop them into core businesses.

過去五年，這些業務的銷售額佔總銷售額的比例從9% 成長到2015 年的13%。 我們預計這一比例將在2016 年上升至15%，因為我們將繼續加強這一細分市場，將其發展為核心業務。

Please turn to slide 7. Next, our projection for this year. Here are our assumptions for exchange rate and the exchange rate sensitivities.

請翻到投影片 7。 以下是我們對匯率和匯率敏感度的假設。

Please refer to slide 8. I will now discuss our 2016 projections. We expect the global economies to remain on a path of modest growth, driven by developed market, including the United States and Europe, where employment is improving. We expect the situation to remain challenging for some time however, due to numerous uncertainties, such as the impact of declining natural resources prices on emerging market economies as well as China's economic slowdown.

請參閱投影片 8。 我們預計，在美國和歐洲等已開發市場就業狀況改善的推動下，全球經濟將持續保持溫和成長。 然而，由於自然資源價格下跌對新興市場經濟體的影響以及中國經濟放緩等諸多不確定因素，我們預計情況在一段時間內仍將充滿挑戰。

In our market, a recovery is expected to take time in sales production that are largely sold in emerging market, such as entry-class cameras and the single-function laser printers. For copiers and production printers, however, demand is increasing. And for lithography equipment, we expect the demand to remain at high levels. Overall we expect the sales growth as we also predict continued growth for both the industrial products of Group companies and network cameras.

在我們的市場中，主要在新興市場銷售的銷售生產預計需要一段時間才能恢復，例如入門級相機和單功能雷射印表機。 然而，對於影印機和生產印表機的需求正在增加。 對於光刻設備，我們預計需求將保持在高水準。 總體而言，我們預計銷售額將成長，因為我們也預測集團公司的工業產品和網路攝影機將持續成長。

As for profit, we'll promote continued cost reductions as well as improvement in product mix.

在利潤方面，我們將推動成本的持續降低和產品結構的改善。

As for expenses, we launched effort to optimize development resources last year. And this year we aim to increase profit, implementing through measures to boost R&D productivity through a process of selection and concentration.

在費用方面，我們去年啟動了優化開發資源的工作。 今年我們的目標是增加利潤，透過選擇和集中的過程來實施提高研發生產力的措施。

Please turn to slide 9. This slide summarizes our 2016 projections, which are based on the assumptions I just mentioned.

請參閱投影片 9。

Please refer to slide 10. I will now compare our 2016 projections with our results of last year. Changes in exchange rate are expected to have a negative impact on both sales and profit.

請參閱投影片 10。 匯率變化預計將對銷售額和利潤產生負面影響。

As for changes in sales volumes, overall sales growth is expected to be led by industry and others. For lithography equipment, we expect the favorable condition of last years to continue. We also forecast significant growth in sales of industrial equipment of Group companies, such as Canon Tokki's OLED and Canon Anelva's semiconductor device production equipment. On top of this, network cameras sales are also expected to increase, reflecting the first full-year inclusion of Axis result.

至於銷售變化，預計整體銷售成長將由產業和其他方面引領。 對於光刻設備，我們預計去年的有利狀況將持續下去。 我們也預測集團公司的工業設備銷售額將大幅成長，例如Canon Tokki的OLED和Canon Anelva的半導體裝置生產設備。 除此之外，網路攝影機的銷售量預計也將成長，反映出安訊士首次將全年業績納入其中。

For office, in addition to copiers, where unit sales growth is expected, we also project strong growth from Oce and solutions. In emerging systems, although our plan calls for the expansion of sales in mainly large-format inkjet printers, we expect camera sales to decline. However, due to unexpected improvement in product mix through the strengthening of high-end models, we expect the impact on profit to be smaller than sales.

對於辦公設備，除了預計單位銷售成長的影印機之外，我們還預期 Oce 和解決方案將出現強勁成長。 在新興系統中，儘管我們的計劃要求擴大主要是大幅面噴墨印表機的銷售，但我們預計相機銷售將下降。 然而，由於加強高端車型而意外改善了產品結構，我們預計對利潤的影響將小於銷售額的影響。

As for others, price reduction is projected to be JPY50b. We also forecast JPY32.3b in cost reductions.

至於其他產品，預計降價 50 日圓。 我們也預測成本降低 32.3b 日圓。

As for expenses, although we project an increase due to consolidation of Axis and other companies, we will work to boost R&D productivity through a process of selection and concentration.

至於費用，儘管我們預計由於安訊士和其他公司的合併而導致費用增加，但我們將努力透過選擇和集中的過程來提高研發生產力。

Please turn to slide 11. I will now discuss each business unit, starting with office. Amid the ongoing shift to colors in the camera -- in the copier market, we strived to raise our competitiveness through the expansion of our lineup. In 2014, we launched an A4 color model and [rate] production models. And in 2015 we followed this up by launching an A3 model for small- and medium-size offices as well as high-speed production printers.

請翻到投影片 11。 在影印機市場相機色彩不斷轉變的背景下，我們努力透過擴大產品陣容來提高競爭力。 2014年，我們推出了A4彩色機型和[rate]量產機型。 2015 年，我們緊隨其後，推出了適用於中小型辦公室的 A3 型號以及高速生產印表機。

In 2015 we achieved a double-digit increase in color unit sales, significantly outpacing the market. This increase is steadily being linked to consumable sales, which grew again in 2015.

2015 年，我們的彩色銷售量實現了兩位數的成長，大大超過了市場。 這一成長與 2015 年消費品銷售再次成長密切相關。

As for laser printers, 2015 was a year in which we focused on building a solid foundation for future profit. We launched the new toners and hardware based on a new platform for the first time in seven years. The hardware launch, focused on color and [MFP] models where growth is expected, and our sales effort to expand sales of these high-end models will connect to increased consumable sales in the future.

對於雷射印表機來說，2015年是我們重點為未來獲利奠定堅實基礎的一年。 我們七年來首次推出了基於新平台的新碳粉和硬體。 硬體的推出主要集中在預計會成長的彩色和 [MFP] 型號上，而我們為擴大這些高端型號的銷售所做的銷售努力將與未來消耗品銷售的增加有關。

The new products have been highly evaluated by the market since their launch, and sales have been in line with our plan. However, existing models were significantly impacted by economic slowdown in emerging countries. As a result, total printer hardware and the consumables sales decreased.

新產品自上市以來，得到了市場的高度評價，銷售情況符合我們的計劃。 然而，現有模型受到新興國家經濟放緩的嚴重影響。 結果，印表機硬體總量和耗材銷售量下降。

As for production printing, amidst the ongoing shift from analog to digital and the increasing need to handle growing varieties of short-run print jobs, we strengthened our competitiveness, adding our first high-speed cut-sheet inkjet printers to our line-up. Capturing the new demand coming from the printing of books and catalogues, we are steadily increasing sales.

至於生產印刷，隨著從類比向數位的持續轉變，以及處理日益增長的各種短版印刷作業的需求不斷增加，我們增強了競爭力，在我們的產品陣容中添加了第一台高速單頁噴墨印表機。 抓住書籍和目錄印刷的新需求，我們正在穩步增加銷售。

Please refer to slide 12. Next, our projection for this business unit, starting with copiers. This year we plan to launch strategic new monochrome models as well. We will focus on products for which higher demand for consumables is expected, such as high-speed copiers that address the need for high-volume output and printing equipment for high-speed outputs of forms from [core] systems.

請參閱投影片 12。 今年我們也計劃推出策略性的新單色機型。 我們將重點放在預計對耗材需求較高的產品，例如滿足大批量輸出需求的高速影印機和用於從[核心]系統高速輸出表格的列印設備。

Coupled with colors, which is expected to keep growing at a double-digit rate, we expect the overall unit sales to be up for the year.

再加上顏色預計將繼續以兩位數的速度成長，我們預計今年的整體銷售量將會上升。

As for solutions, we'll promote global rollout of services that have been strengthened in each region through M&A activities and link these with the overall copier sales growth.

至於解決方案，我們將推動透過併購活動在各地區加強的服務的全球推廣，並將其與影印機整體銷售成長聯繫起來。

As for laser printers, we'll further strengthen our new product line-up, adding, among others, single-function models. We'll also work to recover sales, driving penetration of new models in emerging market. Overall, the effect of new products are expected to gradually show up in increased hardware and consumable sales in the second half of the year.

至於雷射印表機，我們將進一步加強我們的新產品陣容，其中包括增加單功能型號。 我們也將努力恢復銷售，推動新車型在新興市場的滲透。 整體來看，新產品的效應預計將在下半年硬體和耗材銷售量的成長中逐步顯現。

As for production printing, continued market growth is expected. In addition to new products, we will take measures to expand sales of existing continuous feed and wide-format printers to facilitate our aim to grow consumable sales.

至於生產印刷，預計市場將持續成長。 除了新產品外，我們還將採取措施擴大現有連續送紙和寬幅印表機的銷售，以促進我們實現消耗品銷售成長的目標。

Please turn to slide 13. Next I will discuss the imaging systems business unit, starting with cameras. As for the interchangeable lenses cameras market, in the first half of 2015 we started to see sign of recoveries in the United States, and in the year-end selling seasons we saw a return to positive growth. In Europe, we saw a strengthening trend of recoveries in the second half. And in Japan the market seems to have returned to stability. In China and South Asia, however, double-digit declines continued. In total, the global market decreased by 13% to 12.6m units.

請參閱投影片 13。 至於可換鏡頭相機市場，2015年上半年美國市場開始出現復甦跡象，年底銷售旺季又恢復正成長。 在歐洲，我們看到下半年復甦趨勢加強。 日本市場似乎已經恢復穩定。 然而，在中國和南亞，兩位數的下降仍在繼續。 全球市場總量下降 13%，至 1,260 萬台。

As for our sales, in addition to posting positive growth in the United States, the pace of decline in Europe slowed towards single digit figures, showing progress toward recoveries in major developed countries. In Asia, however, where entry-class models are our mainstream, we posted the lower sales. As a result, total sales declined 12% to 5.57m units.

就我們的銷售額而言，除了美國實現正成長外，歐洲的下降速度也放緩至個位數，這表明主要已開發國家的復甦取得了進展。 然而，在亞洲，入門車型是我們的主流，我們公佈的銷量較低。 結果，總銷量下降了 12%，至 557 萬輛。

As the market moved toward maturities, we strive to stimulate demand, actively launching new products that clearly reflect users' need. Responding to the demand of users that have a strong intention to step up in interchangeable lenses camera class, we launched an entry-class model that offers both ease of use and features that are appreciated by more advanced users.

隨著市場成熟，我們努力刺激需求，積極推出明確反映使用者需求的新產品。 為了滿足有強烈升級可換鏡頭相機等級的用戶的需求，我們推出了一款入門級型號，既易於使用，又具有更受高級用戶歡迎的功能。

We also increased our mirrorless cameras market shares, broadening our line-up of cameras and lenses. As for our 5D Series, which features our highest resolutions, we are setting our sight on expanding B2B areas in the future possibilities using these cameras in industrial applications.

我們也增加了無反光鏡相機的市場份額，擴大了我們的相機和鏡頭產品線。 至於我們的 5D 系列，它具有最高解析度，我們著眼於未來在工業應用中使用這些相機擴展 B2B 領域的可能性。

And for compact cameras, the market shrank by 36% to 27m units. And our sales decreased by 27% to 6.56m units due to ongoing market contractions for mainly low-end models. Within this market, however, sales of high-end models were solid.

對於袖珍相機，市場萎縮了 36%，至 2,700 萬台。 由於主要是低階車型的市場持續萎縮，我們的銷量下降了 27% 至 656 萬輛。 然而，在這個市場中，高階車型的銷售仍然穩定。

Under these situation, we worked to broaden our lineups, adding three models to our G Series (inaudible) [05]. The distinct feature sets of each camera is one reason why they have been rated so highly by the market. In addition to contributing to market share gain in major developed countries, they have also contributed to improved profitability.

在這種情況下，我們努力擴大產品陣容，在 G 系列中添加了三種型號（聽不清楚）[05]。 每款相機獨特的功能集是它們受到市場高度評價的原因之一。 除了有助於增加主要已開發國家的市場份額外，它們還有助於提高盈利能力。

Next, inkjet printers. Amid the inkjet printer market contractions, we saw a favorable trend in sales of new products in the United States and Western Europe. Global unit sales were down 5%, however, due to a greater-than-expected impact from weak market conditions in the emerging countries of Asia and other regions.

接下來是噴墨印表機。 在噴墨印表機市場萎縮的情況下，我們看到美國和西歐的新產品銷售呈現良好趨勢。 然而，由於亞洲新興國家和其他地區市場狀況疲軟的影響超出預期，全球銷量下降了 5%。

Faced with this market environment, we focused our effort on growing in B2B areas, promoting global rollouts of MAXIFY, our line of inkjet printers designed for the SoHo market and the expanding sales of large-format models. High demand for B2B printers contributed to solid sales of consumables.

面對這樣的市場環境，我們重點發展B2B領域，推動MAXIFY（專為SoHo市場設計的噴墨印表機系列）在全球的推廣，並擴大大幅面機型的銷售。 B2B 印表機的高需求推動了耗材銷售的穩健。

Please refer to slide 14. Next, our projection for this business unit. In developed countries we expect the interchangeable lenses camera market to continue showing sign of modest recovery. In Asia, including China, however, we feel more time is necessary before we saw a recovery.

請參閱投影片 14。 在已開發國家，我們預計可互換鏡頭相機市場將繼續呈現溫和復甦的跡象。 然而，在包括中國在內的亞洲，我們認為復甦還需要更多時間。

As a result, we expect the market to shrink by 9% to 11.5m units and our sales to decline by 7% to 5.2m units. In this challenging market environment we'll work to stimulate demand, broadening and strengthening our lineup while also focusing on improving profitability. This year we'll bring to the market a technology advancement that are appropriate for an Olympics year and we'll work to capture replacement demand from professionals and advanced amateur users.

因此，我們預計市場將萎縮 9% 至 1,150 萬台，而我們的銷量將下降 7% 至 520 萬台。 在這個充滿挑戰的市場環境中，我們將努力刺激需求，擴大和加強我們的產品陣容，同時專注於提高獲利能力。 今年，我們將向市場推出適合奧運年的先進技術，並將努力滿足專業人士和高級業餘用戶的更換需求。

As for compact cameras, we expect the market to shrink by 26% to 20m units and our sales to shrink by 24% to 5m unit. In this market, manufacturers have made much progress in streamlining their low-end offerings. As a result, we expect the pace of market contractions to slow. We'll implement some measures to improve profitability, continuing our focus on solidly performing high-end models.

至於袖珍相機，我們預期市場將萎縮26%至2,000萬台，我們的銷售量將萎縮24%至500萬台。 在這個市場上，製造商在簡化低階產品方面取得了很大進展。 因此，我們預期市場收縮的速度將會放緩。 我們將採取一些措施來提高獲利能力，並繼續專注於高階車型的穩定表現。

Next, inkjet printers. In emerging market such as Asia, existing printers are starting to be replaced with models that incorporate large-volume ink tanks. And in November of last year, we also launched such models. By strengthening our lineups and accurately responding to various needs, we expect to halt the decline in emerging market and maintain overall unit sales in line with last year.

接下來是噴墨印表機。 在亞洲等新興市場，現有印表機開始被採用大容量墨水匣的型號所取代。 而去年11月，我們也推出了這樣的車型。 透過加強產品陣容並準確回應各種需求，我們預計將阻止新興市場的下滑，並保持整體銷售與去年持平。

Additionally, we'll work to expand sales of more profitable consumables, strengthening effort to grow sales of large-format printers and MAXIFY, our line of inkjet printers designed for the SoHo market. Furthermore, in the consumer space we'll work to realize sales expansions, launching new products that meet customers' need.

此外，我們將努力擴大利潤更高的耗材的銷售，加大力度增加大幅面印表機和 MAXIFY（我們專為 SoHo 市場設計的噴墨印表機系列）的銷售。 此外，在消費領域，我們將努力實現銷售擴張，推出滿足客戶需求的新產品。

Please turn to slide 15. Next, the industry and others. As for IC and lithography equipment, capital investment is on the rise, thanks to increasing demand for memory devices, on-board devices for automobiles and communication-related devices. This contributed to our sales of i-Line and KrF equipment, which grew to 80 units.

請翻投投影片15。 至於IC和光刻設備，由於儲存設備、汽車車載設備和通訊相關設備的需求不斷增加，資本投資正在增加。 這使得我們的 i-Line 和 KrF 設備銷售量成長至 80 台。

As for FPD lithography equipment, unit sales this year exceeded those of last year thanks to significant growth in sales of equipment used in the production of large panels. In the market for small- and medium-sized panels, since the launch of our new tool in 2014, our unit sales have steadily increased.

FPD光刻設備方面，由於大尺寸面板生產設備銷量大幅成長，今年銷售量超過去年。 在中小尺寸面板市場，自2014年推出新工具以來，我們的單位銷售量穩定成長。

And for others, net sales significantly increased, mainly due to the consolidation of Axis that are leaders in the expanding network camera market. As a result, net sales for this business unit increased 31.6%.

對於其他公司來說，淨銷售額顯著增長，這主要是由於作為不斷擴大的網路攝影機市場領導者的安訊士的整合。 結果，該業務部門的淨銷售額成長了 31.6%。

As for operating profit, increased sales of lithography equipment as well as the profit contribution of Axis helped to decrease the operating loss of this segment, which was due to investment in new businesses and further technologies.

就營業利潤而言，光刻設備銷量的增加以及安訊士的利潤貢獻有助於減少該部門的營業虧損，這是由於對新業務和進一步技術的投資。

Please refer to slide 16. Next, our projection for this business unit. As for the business environment, we expect our customers' capital investment to remain at high levels amidst the growing trend to incorporate even higher resolution LCDs and OLED panels into mobile devices where demand is expected to remain solid.

請參閱投影片 16。 至於商業環境，我們預計客戶的資本投資將保持在高水平，因為行動裝置採用更高解析度的 LCD 和 OLED 面板的趨勢不斷增長，預計需求將保持穩定。

Under these assumptions, we project our sales of IC lithography equipment to increase to 86 units as we expect to maintain our high market shares for i-Line equipment and grow sales of KrF equipment, thanks to industry-leading productivities and strength in accuracy alignment.

在這些假設下，我們預計IC 光刻設備的銷量將增加至86 台，因為我們預計將保持i-Line 設備的高市場份額並增加KrF 設備的銷量，這得益於行業領先的生產力和精度對準方面的實力。

As for FPD lithography equipment, by further expanding sales of tools used in the production of high-resolution small- to medium-sized panels, we expect sales to increase to 37 units. We also expect sales of OLED production equipment produced by Canon Tokki to increase significantly.

至於FPD光刻設備，透過進一步擴大用於生產高解析度中小尺寸面板的工具的銷售，我們預計銷量將增加至37台。 我們也預期佳能Tokki生產的OLED生產設備的銷售量將大幅成長。

Additionally, in the field of fine pattern IC processing, we are developing next-generation production tools based on nanoimprint technologies and are continuously making improvements in performance. We shipped our first tools to be used in mass production last year as planned, and this year we have planned to ship more.

此外，在精細圖案IC加工領域，我們正在開發基於奈米壓印技術的下一代生產工具，並不斷改進性能。 去年我們按計劃發貨了第一批用於大量生產的工具，今年我們計劃發貨更多。

We are also working to expand sales of network cameras. This year we expect Axis to contribute JPY100b to sales for the full year. We are already promoting joint product development with Axis. In the future, we will work to further expand this business, focusing on systems that include Milestone's video management software.

我們也致力於擴大網路攝影機的銷售。 今年，我們預計安訊士將為全年銷售額貢獻 100b 日圓。 我們已經在推動與安訊士的聯合產品開發。 未來，我們將致力於進一步擴展這項業務，並專注於包含 Milestone 視訊管理軟體的系統。

In total, the net sales of this business unit is projected to increase 18.9%. From a profit perspective, despite the continued investment in new businesses and future technologies, we expect to move into the black for the first time in four years. We'll accomplish this through increased sales of lithography equipment under Group companies.

總體而言，該業務部門的淨銷售額預計將成長 18.9%。 從利潤角度來看，儘管對新業務和未來技術的持續投資，我們預計四年來首次獲利。 我們將透過增加集團公司旗下光刻設備的銷售量來實現這一目標。

Please turn to slide 17. Next, our financial situation. Inventory turnover was 47 days at the end of December, 10 days shorter than the end of September and 3 days shorter than the end of December last year. We are able to keep inventories held by sales companies at an appropriate level as business activities over the year-end selling season was in line with the plan.

請翻到投影片 17。 12月底庫存週轉天數為47天，比9月底縮短10天，比去年12月底縮短3天。 由於年末銷售旺季的業務活動符合計劃，我們能夠將銷售公司的庫存保持在適當水平。

The turnover period for work-in-process inventory was also shortened by 3 days to 13 days compared with the end of December 2014. We'll continue this effort to reduce work-in-process inventories to our target of 10 days.

與2014年12月底相比，在製品庫存週轉期也縮短了3天至13天。

Please turn to slide 18. For capital expenditures and the cash flow, please refer to this slide. We'll maintain our financial health, keeping capital expenditures below depreciation and continuing the effort to ensure thorough cash flow management.

請參閱幻燈片18。 我們將保持財務健康，將資本支出保持在折舊以下，並繼續努力確保徹底的現金流管理。

In 2015, investing cash flow was JPY454b, much higher than past years due to the acquisition of Axis and other companies. As a result, free cash flow was only JPY21b.

2015年，由於收購了Axis等公司，投資現金流為JPY454b，遠高於往年。 結果，自由現金流僅為 21b 日圓。

Please refer to slide 19. Next, cash on hand. At the end of December, cash on hand was JPY634b or approximately two months of net sales. Similar levels is expected in 2016.

請參閱投影片 19。 12 月底，手頭現金為 634b 日元，相當於兩個月的淨銷售額。 預計 2016 年也會達到類似水準。

For 2015, we plan to pay a year-end dividend of JPY75 per share, bringing the year total to JPY150. Going forward, with continuous effort to provide stable returns and actively return profit to shareholders, taking into consideration medium-term profit [progress], along with planned future investment, cash flow and other factors.

2015年，我們計畫派發每股75日圓的年終股息，使總股息總達150日圓。 展望未來，將繼續努力提供穩定回報，並結合中期獲利[進度]以及計畫的未來投資、現金流等因素，積極回報股東利潤。

At the beginning of 2016, the global economy is being negatively impacted by various factors, such as the decline in oil prices and the worsening situation in China. Consequently, the start of this year for us has been even more challenging than last year's. 2016 is the year for -- of the Excellent Global Corporation Plan Phase V. We see it as an important year to overcome the adversity we face and connect this to future growth.

2016年伊始，全球經濟受到油價下跌、中國局勢惡化等多種因素的負面影響。 因此，今年的開局對我們來說比去年更具挑戰性。 2016 年是卓越全球企業計畫第五階段的一年。

Looking back, Canon has proven its methods, accepting challenges, such as global recessions and the Great East Japan earthquake, and consistently moved forward. Although there are many trials ahead, we'll concentrate the total power of the Canon Group, thoroughly review our earnings structures and make all-out effort to strengthen and expand our new businesses to achieve our aim of sales and profit growth.

回顧過去，佳能已經證明了自己的方法，接受了全球經濟衰退和東日本大地震等挑戰，並不斷前進。 雖然未來還有很多考驗，但我們將集中佳能集團的全部力量，徹底審視獲利結構，全力加強和拓展新業務，以實現銷售額和利潤成長的目標。

This concluded my presentation. Thank you very much.

我的演講到此結束。 非常感謝。