At a Glance

At a Glance

What is the Canon MJ Group?

Strengths of the Canon MJ GroupWe Combine the Canon Product Business and the IT Solutions Business to Resolve Social Issues
Based on the Canon Groupʼs Kyosei corporate philosophy,the Canon MJ Group will unite with all of its stakeholders inrealizing a society where all of humanity can enjoy a long life,
work, and live happily together. We promote sustainability

Canon Marketing Japan Group
Domestic marketing of Canon
products and provision of uniquesolutions

Canon product business

Brand

management by combining the Canon product business andthe IT solutions business to offer a more extensive rangeof solutions and resolve the issues of society through ourbusiness.

Providing solutions optimized
for individual customers
Individual customers

Provide a broad range ofvalue using ICT and thepower of humans tocreate a brighter future forpeople’s daily lives, work,and society

Consumer

Large corporations and quasi-major
and upper medium-sized enterprises
Business (Enterprise)

IT solutions business
Small and medium-sized enterprises

High-quality Canon products and customer trust amassed
through years of business

Main customers

Camera BusinessIndividual customers

ProfessionalResearch, development, andmanufacture of Canon products

Inkjet printers

2ndCustomers
of Canon MJ’scustomers
Customers’competitors

Office MFPs

3rdplace

Specialist fields

1st• Printing industry, etc.
• Semiconductor manufacturers, etc.
• Hospitals, clinics, pharmacies, etc.

1stplace

Industry

Bring satisfaction tothe customers ofCanon MJ’s customers

Technical Capabilities

Customers

Customers
maintain an edge
over the competition

Competitors

CanonMJand service and support functions, which are not included inthe four segments, provide support to each segment whilestrengthening our products and services and enhancing productivity along the value chain.

Financial Structure

A large team of skilled systems engineers and service engineers, and unique technologies cultivated through our ITsolutions business

Systems engineersEnterprise

Area

Specialist fields

Professional

BPO(BusinessProcess
Outsourcing)MarketingService & Support

Consumers

Group Headquarters

Segments

Small and medium-sizedenterprises

Canon Marketing Japan Inc. | Integrated Report 2023

Small and medium-sized enterprises* Domestic volume share Source: Canon MJ market researchService engineers

13

Quasi-major and upper medium-sized enterprises

Numerical data demonstrating our technicalcapabilities

In order to propose the best possible solutions to the increasingly diverse and sophisticated needs of our customers,
we have established a market- and customer-based sales
structure that is divided into four segments. The marketing

Large corporations andquasi-major and uppermedium-sized enterprises

Large corporations

place

Wide format inkjet printers

Customer-Based Organization Structure

Individuals

Corporate customers

placeLaser printers

We Always Base Our Thinking on the Customer and Act from the Customerʼs Standpoint

Customers

1stplace

Printing Business

Customers in specialist fields

We take a scrupulously customer-centric approach in order to resolve the issues
faced by our customers and to provide maximum value. As a practical way ofalways ensuring we stay customer centric, we follow the rule of placing the customer as the subject of our sentences. For example, rather than making us thesubject by stating “Canon MJ will...,” we begin with “The customerʼs issues are...”By using the customerʼs viewpoint based on the external environment they face,
we will provide solutions that can truly meet their needs in order to bring themsatisfaction and put them in a superior competitive position.

Extensive customer base encompassing individual customers,
corporate customers from large corporations to small and medium-sized enterprises, customers in specialist fields, and more

Market shares of individual products

Digital interchangeablelens cameras

Business (Area)

Canon Inc.

Customer Base

Approx. 4,000
Approx. 1,400

Research and utilization ofmathematical technologies

Over 60 years

Robust financial base and ability to generate ample cashflow

Data demonstrating our financial baseCash flow from operating activities:

Approx. ¥40.0 billion/year

Net cash provided by operating activities
Net cash used in investing activities
Free cash flow
(Billions of yen)
40.0
37.7
32.8
28.2
30.0
27.6

20.0

Research and utilizationof automated program
creation technologies
that contribute tolow-code development
platforms
Number of registered patents

10.0Over 40 years

0(10.0)(20.0)

1,230

18.2

16.9

(15.9)

2021(10.1)(10.0)

2022

2023* Net cash provided by operating activities in fiscal 2023 includes adecrease in capital due mainly to a contribution of cash to retirement
benefit trust of ¥18.0 billion.

Canon Marketing Japan Inc. | Integrated Report 2023

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At a Glance

The Current State of the Canon MJ Group(Financial and Non-Financial Highlights of Fiscal 2023)

Message from the President ................................................... 3

Financial Highlights
Net sales

Operating income¥609.5 billion¥52.5 billion(3.6% YoY increase)(5.1% YoY increase)

Operating margin

ROE

8.6%

8.7%

(0.1% YoY increase)(0.5% YoY decrease)

IT solutions salesPercentage of IT solutions net sales¥268.9 billion

44%(11.4% YoY increase)(3% YoY increase)

Stock price

Payout ratio¥4,27943%

Record high since stock listing (December 28, 2023)(42.2% YoY increase)(10% YoY increase)

Non-Financial Highlights

15Contents

Reduction in GHG emissions (Scopes 1 and 2)

Recycling rate

8.4% reduction

99.9% or higher(vs. fiscal 2021)(7 consecutive years)

Percentage of Group
employees taking paid leave

Number of employees receiving DX certification/DX business certification standard level or higherNumber of registeredpatents

66.9%

5,742

1,230

Share of Nomination and Remuneration Committee
members that are Outside Directors

Share of Special Committee members that areOutside Directors

3/5

3/3

(As of January 29, 2024)(As of January 29, 2024)

Canon Marketing Japan Inc. | Integrated Report 2023

Exploring Our Purpose
Our Thoughts .........................................................................
Our Path to Business Transformationand the Formulation of Our Purpose .............................

79

At a Glance
What is the Canon MJ Group? ........................................ 1 3Strengths of the Canon MJ Group ................................ 1 4The Current State of the Canon MJ Group(Financial and Non-Financial Highlights of Fiscal 2023) ... 1 5Contents ...................................................................................... 1 6The Canon MJ Groupʼs Value Creation
Value Creation Process ....................................................... 1 7Value Creation Story ........................................................... 1 9Special feature: Increasing corporate value throughM&As and capital and business alliances ................... 1 9
Financial Strategy ................................................................. 2 5
Human Resources Strategy .............................................. 2 9The Canon MJ Groupʼs Management StrategyProgress of Medium-Term Management Plan ............ 5 1
Overview of Businesses by Segment ............................ 55
Consumers Segment ........................................................... 5 7Enterprise Segment ............................................................. 59
Area Segment ........................................................................ 6 1
Professional Segment .......................................................... 6 3
Business Process Outsourcing (BPO) ............................ 65
Marketing ................................................................................. 6 6Group IT Strategy ................................................................. 6 9Intellectual Property Strategy ......................................... 7 0
Sustainability Management .............................................. 7 1
Data
10-Year Consolidated Financial Summary ................... 8 3
Consolidated Financial Statements .............................. 85
ESG Data ................................................................................. 9 3
Corporate Data/Investor Information .......................... 95

The Canon MJ Groupʼs Corporate GovernanceRoundtable Discussion between Outside Directors ... 3 9
Corporate Governance ....................................................... 4 3
Directors and Audit & Supervisory Board Members ... 4 9

Editorial Policy
Since fiscal 2019, the Canon MJ Group has published a comprehensive
integrated report that links financial information, such as results andbusiness strategies, to non-financial information previously publishedin CSR reports.
In Integrated Report 2023, we introduce the Canon MJ Groupʼsability to create value over the medium to long term as it pursues
the realization of its 2025 Vision and the Canon Groupʼs corporate
philosophy of Kyosei. We consider this document an important communication tool for deepening understanding of the Group among ourvarious stakeholders.
Detailed financial information is available on the Companyʼs website
and in its securities report. The website also details sustainability
activities.
Reporting Period
This report covers fiscal 2023, the year ended December 31, 2023, andalso includes details of activities and information for years prior to andafter this period.
Scope of Coverage
Canon Marketing Japan Inc. and domestic and overseas Group companies (some information includes that of parent Canon Inc.)

Notation in This Report
This integrated report includes the following abbreviations.
Canon Marketing Japan Group → Canon MJ Group
Canon Marketing Japan Inc. → Canon MJ
Canon IT Solutions Inc. → Canon ITSCanon System & Support Inc. → Canon S&S
IT solutions → ITS
Multifunction Peripheral → MFP
Reference Guidelines for Integrated Reports(as of December 31, 2023)
The Integrated Reporting Framework of the International Financial
Reporting Standards (IFRS) Foundation
Guidance for Integrated Corporate Disclosure and Company-Investor
Dialogues for Collaborative Value Creation of the Ministry of Economy,
Trade and Industry (METI)
Disclaimer regarding Forward-Looking Statements
This integrated report contains forward-looking statements about
the performance and management plans of the Canon MJ Group. All
forward-looking statements are based on managementʼs assumptions in light of information available to the Company at the time ofpublication.
The following factors may therefore influence actual results. Thesefactors include consumer trends in Japan as well as other major global
markets; private capital expenditures; currency fluctuations, notably
against the U.S. dollar; materials prices; and political turmoil in certain
countries and regions.

Canon Marketing Japan Inc. | Integrated Report 2023

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