Canon Marketing Japan Group
Three-Year Management Plan(2010-2012)

January 27, 2010
Canon Marketing Japan Inc.
Masami Kawasaki
President
Canon Marketing Japan Inc.

Performance History(Billions of yen)

1,000
900
800
700
600
500
400
300
200100(%)

Semiconductor equipment
net sales

Net sales

815.5 821.9
794.9 786.8
757.0 686345
67695.6 44
38
3.6
3.6
2.6
2.5
750

1.6

720

658

867.2

713

759

75

86

827.5
43

5.0
686.6
15

4.1
3.9

3.1

2.2
748

6.0

905.1

781830784

4.0
3.0672

Operating income ratio

0.9

2.0

1.00.02000 2001 2002 2003 2004 2005 2006 2007 2008 200912010 Plan
Sales Plan by Business Segment

Company-Wide Profit/Loss Plan
(Billions of yen)

2009

(Billions of yen)

2009

2010
Document Business%%

Net sales

686.6

690.0

(Year on year)(83%)(100%)(Year on year)

6.3 0.9%(25%)

8.0 1.2%(127%)

154.4

438.7

Ordinary income(Year on year)
Net income(Year on year)

8.2 1.2%
(32%)
(4.3)
-

9.0 1.3%(110%)-

3.0 0.4%-

Industrial Equipment

222.2(103%)

223.0
-

25.7

(Year on year)(110%)
453.0-(Year on year)(100%)
169.2-(Year on year)
Consumer Equipment

283.8-(Year on year)
Business Solutions

Operating income

284.3(Year on year)
IT Solutions

2010(100%)
14.0-(54%)

Total686.6

690.0(Year on year)(83%)(100%)* The business segmentation will change in 2010, and the 2009
results have been adjusted to take this into account. The 2009
figures before adjustment are: Consumer Equipment -¥19.5 billion,Document Business +¥5.1 billion and IT Solutions +¥14.4 billion.

2

Three-Year Management Plan
(2010-2012)

Canon Marketing Japan Inc.

＜ロゴ＞

2012 Performance Target

Improvement ofearning capacity
Net sales: ¥760.0 billion

Operating income&margin
EPS: ¥30.0 billion

3.9%: Over ¥1004

Basic Policies(i) We will secure the No. 1 market sharefor Canon products by strengthening
cooperation with Canon Inc.

(ii) We will transform Canon MJ into a
service-driven corporate group offering
unique added value to its customers

5Key Strategies
1. Rebuilding of the Document Business
2. Enhancement of our ability to provide IT
solutions, and creation of service businesses
3. Become No. 1 in digital photography
4. Enhancement and expansion of the Industrial
Equipment business5. Enhancement of the management base6

1. Rebuilding of the Document Business7

(i) Basic Strategy of the Document Business58.0 billion pages/monthDigitalcommercialprinting

Form printing
Decentralization

Small lots

DesignOffice
Concentration

Broadsheet

Countering Competition withthe Completed iR-ADV Lineup

ＮｅｗＮｅｗ

(ii) Enhancing and Expanding Document
Solutions and Creating a Stock-Type Business[Document solutions]

Size of company

Open Text ECM SuiteSystem
maintenance(iii) Taking Full Advantage of Our Comprehensive
Strength in the Form Printing Field

Concentration

Printing basePrint CenterOfficeDecentralization11

(iv) Key Aspects of Our Enhancement of theCommercial Printing BusinessPrinting

No. 1
New market creation

Transaction market

αSign and display market

On-demandpublishing market
Photo-book market

Variable market
Core form printing market
Creative market

12(v) Improving the Rate of Returnof Maintenance Services

Customersatisfaction
improvement
Qualification
systemCost
reduction

Reorganizationof bases

Remotemonitoring

New service system

2. Enhancement of Our Ability to Provide
IT Solutions, and Creation of ServiceBusinesses

142. Enhancement of Our Ability to Provide IT
Solutions, and Creation of Service Businesses(i) Reorganization of the group company
handling IT solutions (ITS)(ii) Introduction of innovative IT systems within theCanon Group and development of businesses
utilizing IT system know-how(iii) Enhancement of the sales strength of ITS(iv) Development of the data center (DC) businessand the cloud services business15

Development of the Data Center (DC) Businessand the Cloud Services Business
Creation and expansion of thestock-type business model

Enhancement and expansion of thecloud services businessBusiness category /specialization services
・ AJK Nets
・ Recruiting documents/artwork
data management ASP, etc.

Enhancement and expansion of thesystem operation
services businessIT support services
・Canonet

・

HOME-PORTAL・

FIND View, etc.

・SuperStream “Financial Accounting Service” and“Personnel/Salary Service” (planned)

・ Maintenance, management andoperation of business systems
・ IT base operation・ Facility management

Data center business
2010−201216

System Operation Services + Data Center Business

System operationand maintenanceOpening up
leading markets
Consulting,systemdesignSystemconstruction,
base
construction

Tokyo Data
Center No. 1

Tokyo Data
Center No. 2

From-scratchsystemdevelopment

Okinawa
Data Center

New cutting-edge
data centers
New datacentersTo be completed inthe fall of 2012

LocationTokyo

Total floor area

16,000 m2 (4,850 tsubo)

Server roomarea

4,960 m2 (1,500 tsubo)

Amountinvested

Approximately¥15.0 billion◆ Suburban data centers approximately
20 km from the center of Tokyo◆ Highly efficient, environmentally friendly
data centers◆ Cutting-edge data centers with durable
structures

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Diagram of the Development ofthe Cloud Services Business
Customers
Group company
users

ITsolutions

IT services

Businesssolutions

Consumerequipment

Document
services

Photo
imaging
services

In-house
users

Medical

Medicalsupport
services

Common base for IT servicesPublic cloud services
Data centers

In-housesystems

Private cloudservices

3. Become No. 1 in Digital Photography

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3. Become No. 1 in Digital Photography
Secure the No. 1 market share for major products+Become No. 1 in customer satisfaction

Enhancement ofthe photo culturebusiness

Integration ofcall center andservice center
functions

Creation of a new
business modelthat supports thedigital photoculture20

4. Enhancement and Expansion of theIndustrial Equipment Business21

4. Enhancement and Expansion of theIndustrial Equipment Business(i) Industrial equipment (Imported products, etc.)
 Enhancement of equipment related to semiconductor
manufacturing Opening up of the non-semiconductor field (MEMS, etc.)(ii) Medical equipment
 Enhancement and expansion of the products handled
by Canon MJ
 Establishment of marketing alliances with device manufacturers
 Expansion of the medical solutions business(iii) Broadcasting equipment
 Expand sales to the disaster prevention and surveillancesystems market22

5. Enhancement of the Management Base23

5. Enhancement of the Management Base(i) Maintaining and strengthening
a sound financial base
 Inventories: Enhancing inventory controlthrough the use of new IT systems (orders,distribution and services) Receivables: Improving the accuracy of

consolidated credit control(Billions of yen)

End of December 2009 (actual)
AmountNo. of days

End of December 2012 (plan)
AmountNo. of days

Inventories

25.8

13 days

24.0

11 days

Receivables

125.7

65 days

138.0

63 days24

(ii) Ensuring investment and cash flow (CF)necessary for growth Free cash flow: Ensuring cash flow while continuing a certain levelof investment(Billions of yen)

2007-2009 cumulative (actual)

2010-2012 cumulative (plan)

CF provided byoperating activities

106.5

67.5

CF used ininvesting activities(76.7)(54.7)

29.8

12.8

Free CF

Major Investment Items
Data centers

In-house IT systems

M&As25

5. Enhancement of the Management Base(iii) Enhancement of CSR activities linked
to the business(iv) Enhancement of the group risk
management system, including theBCP (business continuity plan), etc.

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Canon Marketing Japan Group

Disclaimer:
Performance forecasts and future projections contained in this document are determined by
the Company based on information currently available, and are subject to latent risk anduncertainties.
Therefore, owing to changes in various factors, actual results may be materially different
from these projections. Results and figures in the plan are all shown on a consolidated basis.

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