Exploring Our Purpose

Our Thoughts

Tackling social issues along with our customers tocreate a future full of hope and joy
Canon ITS has encapsulated its ideals for fiscal
2025 in VISION 2025, its long-term vision, with thekey message of being a “co-creating company thatpaves the way to the future through its advanced
ICT and its motivated and energetic employees. ”
This reflects our desire to shape the future for ourcustomers and our society by further refining ourtechnologies and further motivating our employees,
and to continue to be a company that can think

together with our customers and can create new
business together.
Each and every employee will see this vision, as
well as the Canon MJ Groupʼs Purpose that extends
beyond it, as something they play an active role in,
and will strive to use our strengths, the technologies
we use to create new value, to help customers solve
social issues. Through this, we will aim to create afuture full of hope and joy.

President of Canon IT Solutions Inc.

Akira Kanazawa

Our Dedication to Achieving Our Purpose

Bringing together hopes and ideas
with technologies to create a future
beyond imagining

In this section, the Directors of Business Units of theCanon MJ Group, the President of Canon IT Solutions Inc.,and the President of Canon System & Support Inc. discuss
their own dedication to achieving our Purpose.

If we imagine a joyous, prosperous future,technology will catch up to make it possible.
There are many aspects of our daily lives that we had
not even imagined 5 or 10 years ago. The ubiquity ofsmartphones has made cashless payment widespread.
Smartphones are being linked to household appliancesand even serving as door keys. Robots clean the floors
for us and bring out our orders at restaurants. It would
be impossible to list every way our lives have changed.
Director of Consumers Business Unit

AI is being used to make predictions and produce
optimal solutions. With the growth of social media,
information reaches every corner of the world in theblink of an eye. I believe we can realize our Groupʼs
Purpose by imagining advances that would make ourlives more comfortable and sharing them throughout
the company.

I think that the creation of a future beyond imagining in our Purpose consists of “always being a truepartner” that surpasses customer expectations tocollaboratively create new value previously unimagined by our customers. I hope that we will always
be an organization in which each and every member
interprets this in their own words and continues toproactively take on challenges.

Director of Enterprise Business Unit

7Canon Marketing Japan Inc. | Integrated Report 2023

Our strengths are our diverse partner channels andour large, nationwide customer base.
Our work is driven by the belief that by creating
value together with our partners and supplying it to
our many customers, we enable our customersʼ businesses to grow, contributing to local communities.
Our vision is to create these chain reactions ofvalue and invigorate all of Japan. In addition to oursolution provision capabilities, which we have refined
through our attentiveness to our customers, I hope

Director of Area Business Unit

that we will also enhance our future-oriented marketing capabilities, working with our partners todesign ideals for the futures of our customers andcommunities.
I am sure that if each and every member of our staff
shares this vision as their own story and puts it into
practice, based on passion and resolute conviction,
we can resonate with even more people and shape
the futures of communities.

Yasuyuki Uotani

Koichi Mikami

I want us to continue to be a“true partner”toour customers by creating new value together.
In the Enterprise segment, we have lived up to
the expectations of our customers by connecting
Canonʼs products and diverse technologies (solutionsand expertise) with our customersʼ wide range ofneeds and issues. At the heart of this history has
been our desire to be a “true partner” to our customers̶to be the first one our customers turn to when
they have problems.

Resonating with even more people and turning
the ideals of communities into realities througha chain reaction of value

Hiroyuki MatsumotoContributing to the development of our customers
and the realization of a richer community
beyond it
Canon S&S works the most closely with Japanesecustomers of any company in the Canon Group. We
leverage IT to support customer evolution, such as byproviding solutions that combine Canonʼs strengths,
imaging technologies, and IT. By supporting the evolution of our customers, we aim to contribute to theirsustained development and the realization of a richer

community beyond it. To accomplish this, we turn toour Purpose as the foundation of our efforts to create
new value aligned with changes in markets and society. We will constantly evolve, striving to achieve sustainable growth and to increase our corporate value.

President of Canon System & Support Inc.

Takeshi Hiraga

Canon Marketing Japan Inc. | Integrated Report 20238Exploring Our Purpose

Our Path to Business Transformation andthe Formulation of Our Purpose
We have expanded our business domains,staying a step ahead of customer and market changes.
We embody our Purpose and strive for sustainable growth.
Director & Senior Vice President
In charge of Group Corporate Planning,Group Communication, andGroup Service & Support
Director of Marketing Headquarters

Hatsumi Hirukawa

Transforming into Customer-Based Organization Structure and Strengthening Our Financial Structureand Management Foundation
In this way, ever since the Group was founded, we havedemonstrated an enterprising nature, which is part ofCanonʼs corporate DNA, constantly responding to changes
in our customers and markets, taking on new challenges, andexpanding our business domains. Through this process, wehave welcomed many new companies to the Group.
We will continue to invest in growth, thereby expanding ourbusiness operations and assembling an even more diverse setof partners. In January 2024, we announced our Purpose̶thesignificance of our presence in society̶as we stride toward
the future along with our customers, all of the employees of
the Group working together as one, bringing together theirdifferent backgrounds and work styles.

Based on our customer-centric approach, we set out tostrengthen our corporate structure to be able to efficiently
provide the most optimal solutions with greater added value
by fully understanding and identifying the specific issues andneeds of each customer. Accordingly, in 2018 we reorganized
our corporate structure from one based on product and sales
channels to one based on markets and customers. Meanwhile,
we endeavored to enhance profitability by withdrawing frombusinesses in certain fields where we felt it was difficult to
add value, focusing on areas and industries where we candemonstrate our strengths, and shifting to a strategy basedon customer segments.

History of Our Business GrowthSince it was founded, the Canon MJ Group has expanded its business domains, starting by selling stateof-the-art Canon products and advancing into the IT solutions business through M&As and other initiatives.
The speeds at which technologies are developing and customer needs are changing are accelerating. We
have formulated our Purpose to solve a broader range of social issues, which are growing more complex andsophisticated, and to increase the cohesive force of the Group. In this section, we will look at what led to theformulation of the Purpose.

Net sales
Operating income
Operating margin*

Operatingincome¥52.5 billion

Operatingmargin

8.6%

The figures prior to 1986 are Canon MJʼs non-consolidated figures.

Net sales¥609.5 billion
IT solutions sales

Expanding Sales Channels and Our Customer Base through Advanced Canon Products
The Canon MJ Group was established in 1968 as a sales
company for Canonʼs business machines. Looking to deliver
Canonʼs sophisticated products to customers nationwide,the Group diversified and strengthened its sales channels
by establishing regional sales companies and partneringwith stores. Through these efforts, we were able to expand
our customer base, nurture our marketing capabilities, andincrease the power of the Canon brand throughout Japan.
To provide even greater added value to customers, we took
the lead in the digitalization of various products. In 1982, wemade Fuji System Development Inc., which we invested inand made an affiliated company in 1978, a subsidiary andlaunched our software business, starting to propel our independent business.

Then, in the 1980s, in order to meet diversifying customer
needs, we expanded our business to include selling workstations, servers and the like from Apple Computer Inc. andother companies, reinforcing our trading company function.
In the 1990s, with the popularization of the internet, we
expanded our workforce of personnel who were versed incomputers, servers and networks.
We adopted technologies that would enable us to provide
unique added value in line with the changing times, and wereinforced personnel and organizations involved in thesetechnologies. As a result, in 1990, we were certified by theMinistry of International Trade and Industry as a systems
integrator.

Reinforcing Systems Integration for Various Business Categories and Expanding into the Customer
Mission-Critical Operations Field
In the 2000s, we expanded into the customer mission-critical operations field with the intent of shifting the focus ofour business from hardware to software in order to forge
closer bonds with customers. In 2003, we made Sumitomo
Metal System Solutions Co., Ltd., which boasted strengths
in systems integration for the manufacturing and distribution industries as well as security, a subsidiary; in 2007, weacquired Argo 21 Corporation, a company that was highly
competitive in the financial and public sectors; and in 2008,
we established Canon IT Solutions Inc. through the integration of these subsidiaries.

9Canon Marketing Japan Inc. | Integrated Report 2023

As a result, we expanded our business domains to encompass mission-critical system development and the infrastructure business, and we established a structure that provided
support for entire IT life cycles for customer IT systems, fromplanning and design to development, assembly, maintenance,and operation.
Notable examples of this include the opening of NishiTokyo Data Center and the launch of service in Building No.
1 from 2012 and in Building No. 2 from 2020. In addition toadvanced security and seismic performance, our owned data
center boasted high levels of operational quality to expand
our IT outsourcing and cloud service businesses.

¥268.9 billion

1968 1970

1980

1990

2000

2005

2010

2015

2020

2023

[Social trends]
Widespread useof hardware

Digitalization andoffice automation

Cloud computing
Cybersecurity

Networking

Evolution ofIoT and AI

Predict social trends and promote well-tailored management strategies[Transformation of management strategies]
Expands sales channels
through sale of cameras
and business machines

Strengthens sale of PCs
and servers, etc., ofother companies

Begins IT
infrastructurebusinessStrengthens
mission-critical systems
integration
Enters medical IT market

Launches IT
outsourcing andcloud services

Strengthens
maintenance andoperations services

1960s to 1970s

1980s

1990s

2000s

2010s

2020s

1968
Canon Business Machines
Sales Inc. established
Canon Business Machine
Services Inc. established

1981
The Company lists on theSecond Section of theTokyo Stock Exchange

1990
Becomes Ministry ofInternational Trade andIndustry-certified systems
integrator

2003
Acquires Sumitomo Metal
System Solutions Co.,Ltd.
Begins selling ESET

2012
Nishi-Tokyo Data Center
Building No. 1 begins
services

2020
Nishi-Tokyo Data Center
Building No. 2 completed

1982
1969
Acquires Fuji System
Forms sales alliance with
Canon Camera Sales Co., Development Inc. (Canon Sun Microsystems Japan
Ltd. established
Software)K.K.
Forms sales alliance with
1971
1983
Floating Point Systems,
The Company lists on the Inc.
Canon Sales Co., Inc.
First Section of the Tokyo Forms sales allianceestablished
Stock Exchangewith Digital Equipment
Forms sales alliance with Corporation JapanApple Computer Inc.
1991
1985
Forms sales alliance withForms sales alliance
Cray Research, Inc.
with IBM Japan, Ltd. forworkstations and PCs
1992
Forms sales alliance withSilicon Graphics, Inc.

2006
Acquires FMS Inc. (nowCanon ITS Medical Inc.)
2007
Acquires Argo 21Corporation
2008
Canon IT Solutions Inc.
established2012
Canon ITS establishes
Canon IT Solutions(Thailand) Co., Ltd.
2013
Canon ITS acquires
Material Automation(Thailand) Co., Ltd.

2023
Acquires TOKYO NISSANCOMPUTER SYSTEM CO.,LTD. (now TCS Inc.)
2024
Acquires Primagest, Inc.

2018
Establishes joint venture
ESET Japan Inc. together
with ESET, spol. s r.o.

Canon Marketing Japan Inc. | Integrated Report 2023

10Exploring Our PurposeOur Path to Business Transformation and the Formulation of Our Purpose
Formulating Our Purpose By Combining “What We Are” with “What Kind of Society We Want to Create”
In formulating our Purpose, our Sustainability Promotion
Committee, chaired by the President and composed of business heads, such as Directors of Business Units, while exploring the history of the Canon MJ Group, discussed the role
we had played in society, our strengths, and our uniquequalities̶in other words, “what the Canon MJ Group is.” At
the same time, the Committee also looked at changes in theenvironment around us, future forecast data, and the like,to discuss “what kind of society we want to create.” Upper
management and business officers put the Canon MJ Groupʼshistory and future direction into words, debated what direction the Group should take in the future, and fine-tuned thephrasing of this Purpose into its final form.
In creating this Purpose, during the latter half of the deliberations, Sustainability Promotion Committee meetings were
held jointly with Brand Strategy Committee meetings, andparticipants discussed how to share this Purpose in and outside the Group and what initiatives to carry out to instill thePurpose.

Greater Resonance with the Purpose
To promote a greater understanding of the Purpose among Groupemployees, the Group positioned the nine-month period between
the internal release in April 2023 and the public announcement as
an internal instillation period. Various measures were used, suchas showing videos explaining the Purpose to all employees. In aninternal questionnaire administered in September 2023, 98.3% ofemployees responded that the Purpose resonated with them, and75.6% responded that the Purpose strongly resonated with them.

Canon MJ Group questionnaire about the degree towhich the Purpose resonated with employees
1.4%

0.3%

■ It resonates strongly with me■ It resonates with me to some degree

22.7 %■ It does not resonate much with me■ It does not resonate with me

75.6%

Embodying the Purpose
What isthe Canon MJ Group?

What kind of society
we want to create?

December 2021
4th Committee
meeting

March 2022
5th Committee
meeting

May 2022
6th Committee
meeting

Discusses the distinctive qualities of theCanon MJ GroupConfirms that thePurpose would be thekey deliberation topicfor 2022

Confirms the three key
perspectives and identifies elements

Organizes and summarizes concepts
Updates elements
Coordinates withthe Brand Strategy
Committee
Deliberates draft versionof Purpose

Alignment of perspectives• The past (our DNA andour distinctive qualities)• The present (Long-Term
Management Objectives
and Medium-Term
Management Plan)• The future (ideals andthe kind of society wewant to create)

Identification and structuringof elements

September toNovember 2022
7th to 9th Committee
meetings
Refines
Deliberates revised
version of Purpose

Announced to the publicin January 2024

May 2021
2nd Committee
meetingAnnounced internallyin April 2023

Jointly holds meetings with the Brand Strategy Committee

Finalization of our Purpose

February 2021
Kickoff of 1st Sustainability
Promotion Committee meeting

Polishing and refinement

The Canon MJ Group has continued to develop new markets led by its enterprising nature,
part of its corporate DNA. One of the Groupʼs strengths, and one of its distinctive qualities, is that its employees are always taking on new challenges to identify with peopleʼshopes and ideas and to work together with them to create a brighter future. To publicize
this stance, these measures, and the hopes and ideas that underlie them, in October
2023 the Group created Mirai Angle, our owned media site, on the Groupʼs website. Itpresents comments from individual employees to provide stakeholders with a broader anddeeper understanding of the Group employees that embody the Purpose.

Mirai Angle▶canon.jp/mirai-angle (in Japanese only)

Declaring Ourselves as a MIRAI Marketing Company
In tandem with this public announcement of our Purpose, wehave also declared ourselves as a MIRAI Marketing Company
to demonstrate our resolve to continuing to tackle an evenbroader range of future societal issues by working withdiverse stakeholders and leveraging our marketing strengths.

We will strive to communicate with our varied stakeholders
in ways befitting a MIRAI Marketing Company, a symbolic
representation of what we, the Canon MJ Group, are.

Aspiration Incorporated in Each and Every Word of Our Purpose“Hopes and ideas” of our Purpose include hopes and ideasof our stakeholders in the midst of the growing complexityof social issues, along with the Canon MJ Groupʼs cherishedself-motivated drive.
“Technologies” not only refer to the technologies we havedeveloped through our imaging and IT efforts, but also
include skills, such as creativity, proposal skills, listening
skills, and communication skills, and knowledge and expertise, including experience, personal connections, and industry
knowledge. These technologies are those not only of theCanon MJ Group but also of its diverse business partners.

“Create” was chosen to clearly express our desire to apply
our pioneering spirit, through which we have continually
opened up new markets.
The Purposeʼs symbol mark uses individual circles that differ
in size and color, to represent diverse hopes, ideas and technologies. The infinite ring of these circles evokes the image ofthe endless circulation of the new future.

Bringing together hopes and ideas
with technologies to create
a future beyond imagining

Sharing and Passing on These Hopes and Ideas
When we light a fire within the people who will shape the future, we light a fire in thefuture of our company. Led by this concept, in August 2023 we began holding “Miraibi(ʻFuture Lightʼ) Talks,” direct dialogues between the President and employees. From
August to December 2023, a total of nine Miraibi Talks were conducted, attended by 1,237
employees. In the Miraibi Talks, the President conveyed the aspirations incorporated in
the Purpose to attendees, and employees have shared it, as remarked by some attendeesʼ
comment that the talks reaffirmed that their own hopes and ideas had the same orientation as that of the Group. The Group will continue to organize a variety of different dialogues between management and employees.

11Canon Marketing Japan Inc. | Integrated Report 2023

MIRAI Marketing Company
We seek to deeply understand our customers,
and work with a wide range of partners to bring together
hopes and ideas with various technologies,
and create a future beyond imagining.
The Canon Marketing Japan Group is a MIRAI Marketing Company.

Further Ensuring Our Sustainable Growth
The Group began by selling advanced Canon products,
and has evolved, looking into the future, so that we canprovide our customers with what they need, such as PCs,
infrastructure, and mission-critical systems. Technologies areadvancing at startling speeds. The pace at which market andcustomer needs are changing is accelerating. In this age ofgrowing societal uncertainty, the Canon MJ Group, led byits Purpose, will further collaborate with stakeholders, creating and working together. Through this, we will continue toevolve so that we can solve an even wider range of societalissues.
In every interaction we have with our stakeholders, theemployees featured in Mirai Angle, and all of our Group
employees, will embody our Purpose as they boldly take onthe challenges of creating new value, free of the restrictionsof convention. We hope that all of our stakeholders will lookforward to the future of the Canon MJ Group.

Canon Marketing Japan Inc. | Integrated Report 202312