Long-Term Management Objectives (2021-2025)
Three-Year Management Plan (2021-2023)
Masachika Adachi
President
April 23, 2021

© Canon Marketing Japan Inc. 2021

0

Contents© Canon Marketing Japan Inc. 2021

1

Review of Long-Term Management
Objectives for the 2016-2020 Period

2Environmental Recognition and Canon
Marketing Japan's Strengths

3Long-Term Management Objectives(2021-2025)

4

Three-Year Management Plan
(2021-2023)

1

Review of Long-Term Management
1
Objectives for the 2016-2020 Period
2Environmental Recognition and Canon
Marketing Japan's Strengths

3Long-Term Management Objectives(2021-2025)

Three-Year Management Plan
4
(2021-2023)© Canon Marketing Japan Inc. 2021

2

Financial Results

Operating income ratio increased through the reform of the businessportfolio and the improvement of lean finance.
Achieved an operating income ratio higher than the previous year despite
the COVID-19 pandemic in 2020.
7,000

5.7%

5,000

4.1%

4.4%

450

5.2%

6,000

4.8%

6.0%

400

4.6%
340

4,000

266

304

277

324
289

3,000

2,000

182

157

208

207

500

350
300

313

250

223

235
220

200
150

100
1,000
50
0

0

2015

Unit: 100 million© Canon Marketing Japan Inc. 2021

2016

Sales

2017

2019

2018

Operating income

Profit2020

2021(Forecast)

Operating income ratio3Growth of the IT Solution Business
Reform of the business portfolio focusing on ITS businesses in growth markets.
Service business expanded to strengthen high value-added ITS business.
¥646.0billion¥629.3billion¥632.2billion¥621.6billion¥621.1billion¥545.1billion～～～～～～¥172.1billion¥177.0billion¥183.9billion¥197.7billion¥220.8billion¥203.1billion

2015

2016

2017

2018年

2019

2020

ITS Business

ITS sales
Percent of sales from ITS
Sales fromthe data center business© Canon Marketing Japan Inc. 2021

Comparison with 2015
Approx.

120%¥172.1 billion

Comparison with 2015
Up approx.

10%

Comparison with 2015
Approx.

5.0 times

27％¥203.1 billion
37％

Provides world-class operational quality(M&O certified)4

Maintaining the Market Shares of Canon Products and Increasing profitability
Canon products remained No. 1 in terms of market share.
Productivity increased and SG&A expenses decreased through business restructuring.
Market shares in 2020 (according to Canon MJ research)Firmlymaintained
a leadingmarketshare

Digitalinterchangeablelens cameras

Inkjet printers

Laser printers

Large inkjet
printers

Office MFP

34%

48%

29%

40%

16%

Largestmarket share

Largestmarket share

Largestmarket share

Largestmarket share

Third largest
market share

Largest market sharefor 13 consecutive years

Largest market share Largest market sharefor 7 consecutive years

Key reforms
Business
restructuringfor 29 consecutive years

Largest market sharefor 12 consecutive years

 Built an optimal system for the Group's after-sale services
 Merged and closed some contact centers scatteredthroughout the Canon MJ Group Streamlined Consumer Segment

Reduction of
SG&A
expenses© Canon Marketing Japan Inc. 2021

SG&A expenses

Reduced approx. ¥34 billion from 20155

Transformation to Customer-driven Matrix Management
Organization transformation from a product-oriented company structure tocustomer-driven matrix management.
System built to enable Canon MJ Group to deeply understand its customers,
grow with them, and become a true partner.
Before Dec. 2017

After Jan. 2018

Product-oriented company structure

Key products and channels

PPS

business partners

IT Solutions
SI services

embedded systems

IT infrastructure services

IT products

Imaging Systems
printers and cameras

mass retailers, camera storesIndustrial / Medical© Canon Marketing Japan Inc. 2021

Specialized areas
Professional

document solutions

Large businesses
Enterprise

direct-selling

office devices

Small- and mediumsized businesses Area

MFP

Business for consumers
ConsumerBusiness Solution

Customer-driven matrix management
Market/customers and solutions

company-wide management division
Group head office6

Development of Working Environments and Social Contribution Efforts
through Businesses
Developed comfortable working environments and supported employee growth.
Earned external recognition for efforts to continuously improve safety and health.
Development ofworking environments
and growth support▶ Increased staggered working hours, working from home, and satellite offices: 100% telecommuting (Canon MJ alone, as of end of Mar. 2021)▶ Provided all employees with training to increase IT skill

Socialcontribution

Efforts to promote basic first aid throughthe AED business

External
recognition▶ Number of participants in
cardiopulmonary resuscitation(CPR) training: approx. 200,000(Total number of participants in CPR
training from 2010 to 2020)

Health & Productivity Stock Selection:
certified for 2 consecutive years (2018 and 2019)
Health & Productivity Management Outstanding Organization:
certified for 5 consecutive years
Received Platinum Kurumin certification
Canon Marketing Japan
Canon IT Solutions※Health & Productivity Management Outstanding Organization andPlatinum Kurumin certification: certified in 2021 included© Canon Marketing Japan Inc. 2021

7

Review of Long-Term Management
1
Objectives for the 2016-2020 Period
2Environmental Recognition and Canon
Marketing Japan's Strengths

3Long-Term Management Objectives(2021-2025)

Three-Year Management Plan
4
(2021-2023)© Canon Marketing Japan Inc. 2021

8

Changes in the Social Environment
Given developments such as the realization of climate change impact, Canon MJ Group isaware that the implementation of countermeasures for the preservation and protection of
the global environment is unavoidable.
In addition, it recognizes that the penetration of digitization and changes in labor force andwork-styles will be accelerated due to the impact of the COVID-19 pandemic,
and these trends are irreversible.
Preservation andprotection of the
globalenvironment▶ Net-zero greenhouse gas emissions by 2050
(carbon neutrality declaration / achieving a decarbonized society)▶ Marine pollution caused by plastic waste
Source: Green Growth Strategy Through Achieving Carbon Neutrality in 2050, METI

▶ Approx. 60% of companies continue to invest in DX even during the COVID-19 pandemic
Penetration andacceleration ofdigitalization▶ Approx. 40% of companies recognize that the risk of cyber-attack has increased
since the beginning of the COVID-19 pandemic
Source: "2020 Survey of Trends in the Digital Transformation of Domestic Companies,"
IDC"Survey on Cyber Risk Awareness and Countermeasures 2020,"
the General Insurance Association of Japan▶ Population decline (The working age population will decrease approx. 5.7 million people by 2030)
Changes in thelabor force▶ Required human resources changes(There is a shortage of IT human resources while unemployment is increasing due to COVID-19.)
Source: “Population Projections,” Statistics Bureau, MIC“2020 Corporate IT Trends Survey, Japan Users Association of Information Systems▶ Approx. 75% of companies* are permitting employees to telecommute.
Acceleration of▶ Increase and popularization of new workstyles
work-style reforms(increase in side jobs, double employment, and freelance)© Canon Marketing Japan Inc. 2021

Source: “Discussion on Teleworking as Future Work Style,” MHLW
* Questionnaire survey of companies with 1,000 or more employees

9Impact and Issues Associated with Environmental Change
The impact of and issues caused by environmental change vary from
customer to customer.
Preservation andprotection of the
global environment

Large
companies

Small- andmediumsizedbusinesses

Individuals

Promoting theSDGs,
increasing
environmental value

Penetration andacceleration ofdigitalization

Changes in thelabor force

Acceleration of workstyle reforms

Increasing skilled IT
human resources topromote DX

Concentrating humanresources in main
businesses by
increasing efficiency ofoperations

Taking thoroughcyber security
measures

Acquiring full-time IT
personnel to promote
digitalization

Responding to labor
shortage bystreamlining operations

Implementing lowcost, continuous
security measures

Ensuring accessibility
and reducing
geographicaldisparities

Diversifying work styles
by enabling people tohave side jobs, second
jobs, and to freelance

Telecommuting

Canon Marketing Japan Group will work tosolve these issues faced by society and customers.
© Canon Marketing Japan Inc. 2021

10

The Transition of Canon Marketing Japan Group
Canon MJ Group has been fulfilling the demands of its customers andsociety in line with changes in market environment and modifying andoptimizing its business portfolio.
Sales

10,0009,000

1968
Founded CanonBusiness Machines
Sales Inc.

8,000
7,000
6,000
5,000
4,000
3,000
2,000

1983
Listed on TSE 1st Section

2006
Renamed as Canon
Marketing Japan

0.07
0.06

1969
Founded Canon Camera
Sales Co., Inc.

0.05
0.04

1971
Founded Canon
Sales Co., Inc.

0.03
0.02
0.01

1,000
0

0

2000

Sale of cameras andbusiness machines

RecentM&As© Canon Marketing Japan Inc. 2021

Operatingincome ratio

2010

2020

Digitalization of Canon products

2003 Acquired Sumitomo Metal System Solutions Inc.
2007 Acquired Argo 21 Corp.
2008 Established Canon IT Solutions

2010 Sold semiconductor equipment businessto Canon Inc.
2020 Sold all shares of Canon Lifecare Solutions Inc.
11

Strengths and DNA of Canon Marketing Japan GroupHas increased its strengths by optimizing its business portfolio.
Continues to polish the DNA that has been passed down since the company’s
establishment as a foundation that never changes.

Brand

Technology(the trust of the customers built throughbusiness over many years)(approx. 4,000 system engineers and a nationwide organization of customer engineers)

Customer baseFinancial position(wide-ranging customer base covering(strong financial base)
everything from large companiesBackgroundto SMEs) needs correction

Insert graph in the previous slide as a background.

Corporate culture to modify businesses to meet demands of society
and customers while continuously taking on challenges(enterprising nature)© Canon Marketing Japan Inc. 2021

12

Review of Long-Term Management
1
Objectives for the 2016-2020 Period
2Environmental Recognition and Canon
Marketing Japan's Strengths

3Long-Term Management Objectives(2021-2025)

Three-Year Management Plan
4
(2021-2023)© Canon Marketing Japan Inc. 2021

13

企業理念

“Contributing to global prosperity and the well-being of mankind.”Kyosei :Living and working together for the common good

The Corporate DNA of the Canon Group"Enterprising nature""Continue to pursue new values without being limited by past examples."© Canon Marketing Japan Inc. 2021

14

Sustainability Management

Canon MJ Group also pursues, with all of its stakeholders, the realizationof a society in which all people live long lives, work together, and continue
to live happily, based on the principle of coexistence.
Customers

Employees

Suppliers

Promotion ofsustainability management

Public agencies,
local
governments

Shareholders
Investors

NGO
NPO

Educational andresearch institutions

Corporate value sustainably
Increased by solving social issues
through business

Local communities© Canon Marketing Japan Inc. 2021

15

Canon Marketing Japan Group's Solving of Social Issues through Business
To promote sustainability management, expand the range of things it ispossible to solve by combining the Canon product business and IT solution
business and work on the solution of social issues through business.

Expand the range of things
that are able to contribute tosolutions to social issues© Canon Marketing Japan Inc. 2021

16

2025 Vision, Basic Strategies, and Management Indicators

2025 vision

Basicstrategies

Professional corporate group that solves social and customer issues
using ICT and the power of humans
1.

Sustainably increasing corporate value by solving social issues through business2.

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

3.

Creating a virtuous circle by improving management capital▶ Accelerating business growth by developing skilled human resources andincreasing engagement▶ Accelerating business growth through strategic investment

2025
management
indicators

Operating income
Salesof which, ITS sales
ROE© Canon Marketing Japan Inc. 2021

¥50.0 billion¥650.0 billion¥300.0 billion
8.0 %
17

Business Portfolio Concept
Canon MJ Group operates its IT solution business as its core and reforms its
business portfolio. It continuously improves and optimizes its business portfoliowith the goal of achieving sustainable growth.

Growth potential

ITS
businessCanon
Productbusiness

ITS
business

Specialized
areas, newbusinesses

Canon
product

Specialized
areas, newbusinesses

business▶ Expand service business modelwith ITS as the core of growth▶ Document solutions is a part of ITS
and the growth of ITS will facilitate
the growth of the Canon productbusiness.
▶ Improve strategy as a device linked to
the ITS business▶ Create profit through thoroughstreamlining▶ Promote the expansion of the industrial
equipment business▶ Explore business fields to create new
businesses that can be growth drivers.

Profitability
Continuously implement selection andconcentration© Canon Marketing Japan Inc. 2021

18

Investment in Growth to Increase Corporate Value© Canon Marketing Japan Inc. 2021

19

Review of Long-Term Management
1
Objectives for the 2016-2020 Period
2Environmental Recognition and Canon
Marketing Japan's Strengths

3Long-Term Management Objectives(2021-2025)

Three-Year Management Plan
4
(2021-2023)© Canon Marketing Japan Inc. 2021

20

Three-Year Management Plan (2021-2023): Targets

Results

Three-Year Management Plan

2020

2021 (Forecast)

2023 (Plan)

Sales¥545.1 billion¥567.0 billion¥600.0 billion

Operatingincome¥31.3 billion¥34.0 billion¥40.0 billion

Operating inco
me ratio

5.7％

6.0％

6.7％

Net income
attributable toowners of parent¥22.0 billion¥23.5 billion¥26.5 billion

ROE

6.6％

6.7％

6.9％

© Canon Marketing Japan Inc. 2021

21

Sales and Operating Income by Segment: Targets

Results

Three-Year Management Plan
2021 (Forecast)

2020

2023 (Plan)

Net sales

Operatingincome(profitability)

Net sales(growth rate)

Operatingincome(profitability)

Net sales

Operatingincome(profitability)¥124.7 billion¥12.3 billion（9.9%）¥128.1billion(+ 2.7%)¥10.0 billion（7.8%）¥117.5billion¥10.0 billion（8.5%）¥184.6 billion¥9.4 billion（5.1％）¥192.7billion(+ 4.4%)¥11.9 billion（6.2％）¥222.0billion¥15.0 billion（6.8％）

Area¥223.7 billion¥9.0 billion（4.0％）¥228.5billion（＋2.2％）¥11.7 billion（5.1％）¥238.0billion¥14.5 billion（6.1％）

Professional¥30.7 billion¥1.9 billion（6.2％）¥34.7 billion（＋13.0％）¥2.4 billion（6.9％）¥42.5 billion¥4.0 billion（9.4％）¥545.1 billion¥31.3 billion（5.7％）¥567.0billion（＋4.0％）¥34.0 billion（6.0％）¥600.0billion¥40.0 billion（6.7％）

Consumers

Enterprise

Consolidated,total© Canon Marketing Japan Inc. 2021

*Part of the organization that conducted direct sales to medium-sized/second-tier companies in
the Area segment was transferred to the Enterprise segment in 2021. Accordingly, results for2020 have been reclassified between the segments.
22

Business Portfolio Concept ｜ IT Solutions Business
Canon MJ Group operates its IT solution business as its core and reforms its
business portfolio. It continuously improves and optimizes its business portfoliowith the goal of achieving sustainable growth.
Growth potential

ITS
businessCanon
productbusiness

ITS
business

Specialized
areas, newbusinesses▶ Expand service business modelwith ITS as the core of growth▶ Document solutions is a part of ITS
and the growth of ITS will facilitate
the growth of the Canon productbusiness.
▶ Improve strategy as a device linked to
the ITS business▶ Create profit through thoroughstreamlining

Specialized ▶ Promote the expansion of the industrial
areas, newequipment businessbusinesses

Canon
product▶ Explore business fields to create new
businesses that can be growth drivers.

business

Profitability
Continuously implement selection andconcentration© Canon Marketing Japan Inc. 2021

23

IT Solutions Business: Market Outlook

Outlook for CAGR in the domestic IT market(trends when 2020 is used as reference)

Large andupper-medium-sized
IT companies

4.7%

+

2023
2020 2023年
2020年

small- andmedium-sized
IT companies

3.7%

+

2020年
2023
2020 2023年

Security
companies

11%

+

2020年
2023
2020 2023年

ITO・BPO

5.5%

+

2020年
2023
2020 2023年*Outlook was prepared by Canon MJ based on publicly available external forecasts (IDC).
*Outlook for “large and upper-medium-sized companies” and “small- and medium-sized IT
companies” excludes the device business.
© Canon Marketing Japan Inc. 2021

24

IT Solutions Business: Sales Targets (by Segment)
Enterprise and Area will lead the expansion of the IT Solutions Business.
Value: sales
Unit: 100 million

CAGR

8.2%

+
2,094
Other

287

2,265

2,650
330

299
1,540

1,303

Enterprise

1,183

Area

624

663

2020

2021

780
・・・

2023

Three-Year Management Plan
© Canon Marketing Japan Inc. 2021

*The FY2020 financial results have been subject to reclassification
due to the inclusion of the business of certain products such as
25
network cameras in sales of IT Solutions in FY2021.

ITS Business by Customer Segment: Direction of Development
Different customer segments have different needs. Canon MJ Group willdevelop business appropriate for the needs of each customer segment.
Create and improve a service business model and work to achieve continuous
profit growth.

Promote DX business by deeply understanding
customers▶ Edge solutions focusing on areas, industries,
and technologies where Canon MJ is strong

Provide full support by maintaining relationships
with customers▶ Continuous relationships with customers
using service offices located across Japan and partnerships© Canon Marketing Japan Inc. 2021

Contribution of the service businessmodel to value creation

Area

Small- andmedium-sizedbusinesses

Enterprise

Quasi-major
and uppermedium-sizedcompanies

wide-ranging customers

Provide value-added services
using high-quality DC

Large
companies

Support solutions from both cyber andphysical security

Promote DX business through co-creation with customers▶ Solving social issues through co-creation based on a deep
understanding of business and the market with26

ITS Business by Customer Segment: Major KPIs

KPIs set for each focus area of each customer segment to ensure thegrowth of the ITS business.

Enterprise

Quasi-major
and uppermedium-sizedcompanies

2020
Sales
related to¥18.0 billion
EdgeSOL**IncludesVideosolutions

Digitaldocument
service

Mathematical

anddemandforecasts

2023

Sales
¥33.0 billion related tosecurity
companies
Lowcodedevelop
ment

2020

¥13.5
2020

billion¥28.0
billion

2023

Area

Small- andmedium-sizedbusinesses

HOME*
2020
IT maintenanceand operations Approx.
110,000
Number ofcontracts

¥21.0
2023

2023
Approx.

¥38.0

160,000

billionbillionContribution of the service businessmodel to value creation

Large
companies

Sales
related to
ITO andBOP* HOME: IT support service for small and medium-sized offices© Canon Marketing Japan Inc. 2021

27

Initiatives Implemented in Focus Areas
Increase our strengths by utilizing knowledge and experience with which wehave worked on a range of issues.
Witness Matching System that improves efficiency of witness inspection of wide-area disasters

For customers wishing to expedite
procedures for the payment of
insurance money when a disasteroccurs.

Establishment of systems thatlead to solutions to issues incollaboration with customers.

Logistics operations reforms initiated through collaborative creation

Promotion of DX
business throughthe process ofknowing
customers well

For customers wishing to advanceinitiatives to improve efficiency
and working conditions regarding
supply and demand-related
operations

Remote monitoring packages for medical institutions to support their efforts
to prevent the spread of COVID-19

For customers wishing to protect
medical workers from infectious
diseases and prevent the spread of
infection
Provision of full
support throughefforts to stayconnected withcustomers© Canon Marketing Japan Inc. 2021

Contribution to the creation ofa sustainable society

Provision of safety and security
through packages thatappropriately address issues
faced by hospitals and clinics

Contribution to local communities through total support for small and medium-sized companies

For customers who wish to outsource
the implementation of security
measures and themaintenance/operation of internal
systems

Supporting the evolution ofcustomers throughmaintenance/operations services
that meet their needs

Contribution of the service businessmodel to value creation

Promotion of DX
business throughcollaborative
creation withcustomers

28

Net Sales Target for IT Solutions (by product/solution)
Strengthen the areas of maintenance/operations services and outsourcing bybolstering service-oriented business models and establish a highly profitable
Numbers: Net sales
ITS business.
Unit: 100 million

3,000
Contribution of the service businessmodel to value creation

2,650
2,094
SI service
Maintenance/operations
services and outsourcing

IT product/system sales

2,265
CAGR

+10 .8%

1,150

709

827

372

407

500

1,013

1,031

1,000

2020

2021

・・・

25%

2023

・・・

2025

Three-Year Management Plan

© Canon Marketing Japan Inc. 2021

*The FY2020 financial results have been subject to reclassification due tothe inclusion of the business of certain products such as network cameras
in sales of IT Solutions in FY2021.
29

Business Portfolio Concept ｜Canon product business

Canon MJ Group operates its IT solution business as its core and reforms its
business portfolio. It continuously improves and optimizes its business portfoliowith the goal of achieving sustainable growth.
Growth potential

ITS
business

ITS
business

Specialized
areas, newbusinesses

Canon
productbusinessCanon
Productbusiness▶ Expand service business model with ITS
as the core of growth▶ Document solutions is a part of ITS andthe growth of ITS will facilitate the growthof the Canon product business.
▶ Improve strategy as a device linked to
the ITS business▶ Create profit through thoroughstreamlining

Specialized ▶ Promote the expansion of the industrial
areas, newequipment businessbusinesses▶ Explore business fields to create new
businesses that can be growth drivers.

Profitability
Continuously implement selection andconcentration© Canon Marketing Japan Inc. 2021

30

Canon product business - Market outlook
Market outlook of major products(Domestic shipments: changes with shipments in 2019 used as reference)

Inkjet printers

Digital interchangeablelens cameras
SLR cameras

Business use

MirrorlesscamerasHome use

2019

2020

2023

2019

Office MFP

2019© Canon Marketing Japan Inc. 2021

2020

2020

2023

Laser printers

2023

2019

2020

2023

*The market outlook is based on a survey by the Company.

31

Canon product business -BtoC business For professionals
Pursue demand for professional use in the photoimaging area and maintainthe leading market share, while simultaneously contributing to the creation ofa photo culture.

Strengthening of hardware- and software-based solutions to
respond to the goals of professional photographers

Inkjet printers and large format printers created through the
pursuit of the high-quality images required by professional users

Production of images and new market development throughthe fusion of video image areas, and response to change inthe communication environment

Discovery and development of new photographers, and creation of aphoto culture by creating opportunities to displaying and release work

© Canon Marketing Japan Inc. 2021

32

Canon product business -BtoC business｜For ordinary consumers
Provide pleasant sensations and enjoyable moments through photos and images,
thereby contributing to the rich lives of each customer.
Build more consistent and efficient sales/support systems, thereby establishing ahighly profitable business.
Support work creation by supplying lenses of different levels ofbrightness including wide-angle lenses and telephoto lenses tomeet a variety of needs depending on the subject being
photographed
Provision of advice on how to enjoy photographic expression
through an array of means including one-sheet printing andphotobooks
Establishing strong, continuing relationships with customers
through real and digital marketing and adding more value
through the provision of opportunities to experience

Improvement of profitability by strengthening the lineup ofhigh priced and high print volume models for home use© Canon Marketing Japan Inc. 2021

33

Canon product business -BtoCB business｜Solutions for different business types
and business operations.
Strengthen printing services that are suitable for specific business types andbusiness operations.
Contribute to the improvement of the overall productivity of printing processes
in commercial and industrial printing.
Strengthening of systems to respond to needs arising in different
types of businesses and the enhancement of services, with a view
toward overwhelmingly holding the largest share of the market

Expansion of the solution area for customers' issues throughproposals combined with the pre- and post-process solutions forcommercial and industrial printing

Enhancement of synchronization with applications according tobusiness types and conditions

Reduction of customers' downtime and improvement of service
efficiency through IoT-based failure prediction© Canon Marketing Japan Inc. 2021

34

Canon product business -BtoB business｜Solutions for offices
Strengthen the comprehensive printing service to contribute to workstyles
during the new normal created by the COVID-19 pandemic.
In addition, strengthen the device strategy in sync with IT solutions andwork to create synergies.
Central Office•••Home use
Strengthening
the device
strategy insync with IT
solutions

Satellite
OfficeIT devices

Responding to new needs arising from workstyle reforms
Support for the utilization of documents in any place by
providing cloud-linked solutions and enhancing security
measures
Promotion of inkjet printers to address teleworking andhomeschooling demand

Input/outp
ut devices

Analysis/
Utilization

Capability to build SI/Capability
to create services

Support for thedigitization of paper
documents, faxes. etc.
© Canon Marketing Japan Inc. 2021

Accommodati
on of data

Collaboration with Canon MJ's
in-house solutions andexternal systems

Maintenance

BPO
ITO

Voices of thecustomers
Provision of comprehensive
maintenance and operation
services with respect toequipment and IT
35

Group's Human Resource Strategy

Work on the improvement of human resources and the increase ofengagement to maximize the value of human assets which are
the foundation of the sustainable improvement of corporate value.

Improvement of
human resources

Improvement of thedevelopment of leaders

Improvement of
employees' skills

Active promotion ofoutside personnel

Development and promotion ofleaders by generation with anemphasis on diversity

The improvement of support
and the implementation ofactive investment in humanresources to improve
employees' skills andprofessionalism

Continuous and active
recruitment of outside
personnel

Creation of an atmosphere that embraces challenge
to represent the enterprising spirit of Canon

Increasing
engagement

Company

Employee

Visualizing engagement and facilitating understanding on monitoring
philosophy and corporate DNA/vision through employee awareness surveys© Canon Marketing Japan Inc. 2021

36

Investment strategy for the growth of business
Invest in businesses with an eye on capital efficiency and profitability, andfacilitate a cycle enabling the profits produced by these investments are
reinvested in growth businesses.
Investment Policy
Business Investment
Share
holderreturns
Operatingcash flow＋

System Investment

Investment
for growth

Cash on
hand
Cash
on
hand

© Canon Marketing Japan Inc. 2021

• Investment in focus areas• Construction of data centers and otherfacilities• Investment and M&A• Renewal of core systems• Improvement of the productivity ofexisting businesses through internal
DX

Approx.
100 billion yen
in three years

Investment in human resources• Development and promotion of leader
candidates• Support for employees' efforts toimprove their skills

Reinvestment in businesses that make profits
and/or achieve growth37

Shareholder returns and dividends
Dividend policy
Our basic policy is to pay dividends to shareholders based on a payout
ratio of at least 30% while taking into comprehensive consideration of themedium-term profit forecast, investment plans, and cash flows.

Annual dividend per share (Yen)

0.4

75
0.35
65
55

60

60

60

60

60
0.3

50
0.25

45
35

0.2

25

0.15
2016年

2017年

2018年

2019年

2020年

2021年
（予想）
(Forecast)© Canon Marketing Japan Inc. 2021

38

The performance and future projections made in this document are based on information available
at the present time, and include potential risks and inaccuracies. Owing to various factors, actual
results may differ substantially from these projections.

© Canon Marketing Japan Inc. 2021

39