Canon Marketing Japan Inc. Integrated Report 2023

Canon Marketing Japan Inc.

ResolvingSocial Problems
with IT Solutions

Integrated Report 2023
For the year ended December 31, 2023

Canon Marketing Japan Inc.
16-6, Konan 2-chome, Minato-ku, Tokyo 108-8011, Japan
Canon Marketing Japan Group Website
Corporate Information
https://cweb.canon.jp/eng/corporate/
Investor Relations
canon.jp/8060e-ir
Sustainability Initiatives
canon.jp/corporate/en/sustainability

OUR PURPOSE
Canon Marketing Japan Website
Canon MJ maintains a website that includes information on its financial results, management plan, andsustainability initiatives, including those related to ESG, to further facilitate communication with shareholders. The website contains the following:●

Investor relations website●

canon.jp/8060e-ir

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

That is why we seek to deeply understand our customers.
It is why we work with a wide range of partners to bring together
these hopes and ideas with various technologies.

skills. And, harnessing our technologies, skills, knowledge, and the power ofour people, we challenge ourselves to do the impossible. We are creating a future
full of hope and joy by providing value that satisfies what customers truly desire.
And it is all for one purpose: to witness the spectacle of a future
beyond imagining with our customers.

MIRAI Marketing Company
Canon Marketing Japan Group

1

Canon Marketing Japan Inc. | Integrated Report 2023

• Environmental, social,and governance (ESG)
initiatives• Sustainability management
policy and structure• Value creation process• The Canon MJ Group’smaterial issues

Integrated Report 2023: Editor’s Postscript

We are committed to making these hopes and ideas reality.

Imagining the future beyond where customers are headed, we continue to hone ourcanon.jp/corporate/en/
sustainability• News for investors• Financial results and otherfinancial information• Information on Long-Term
Management Objectives andMedium-Term Management Plan
• Stock information• Information for individual
investors• Integrated reports

Each person imagines a different future. It is here that their hopes and ideas lie.

And why we create a constant stream of value that satisfies customers’ expectations.

Sustainability website

Member of the Integrated Report 2023 editorial teamThank you for taking the time to read Integrated Report 2023.
In preparing this Integrated Report , we engaged in dialogue with various stakeholders including shareholders andinvestors, and based on the opinions and feedback we received, we have enhanced the content of the report to provide a better understanding of our business and growth story.
This is the fifth integrated report issued by the Group. We
have endeavored to provide readers with an understandingof the steady progress being made toward the achievementof the Group’s Medium-Term Management Plan (20222025), and the accelerated creation of businesses that
address social issues in preparation for sustainable growth
beyond 2025.
In addition to our business, financial, and human resource
strategies, we hope we have conveyed the aims of our M&A
and capital investment activities to date, the backgroundand aspirations behind the formulation of our Purpose
announced in January 2024, and our efforts to create future-oriented new businesses, starting with the establishment of the R&B functions.
It is our hope that this report helps provide our stakeholdPURPOSESYMBOLers witha betterunderstanding of theBringing
Canon
MJ Group.
together hopes and ideas
to createa future
We will continue to value opportunities withtotechnologies
engagewith
ourbeyond imagining
stakeholders, and therefore, we hope that you continue tomarksymbolizes
our Purpose,“bringing together hopes andshareThis
yourhonestopinions
and feedback.
ideas with technologies to create a future beyond imagining.”
The individual circles that diﬀer in size and color represent
diverse
ExecutiveOﬃcer
hopes, ideas andtechnologies.
TheCorporate
inﬁnite ringof thesecirclesGroup
Executive ofPlanning
Headquarters
evokes the image of the endless circulation of the new future.

Takuya Joshin

Canon
MarketingJapan
Inc. Inc.
| Integrated
Report2023
Canon
MarketingJapan| Integrated
Report2023 2 98

Message from the President“Bringing Together Hopes and Ideas

with Technologies to Create a Future
beyond Imagining”
Towards Dramatic Growth
Working to Achieve the Goals of Our Medium-Term Management Plan (2022-2025)
We are making steady progress on our Medium-Term
Management Plan (2022-2025). In the fiscal year ended
December 31, 2023, we recorded record high operating
income, ordinary income, and net income attributable toowners of the parent for the third consecutive year.
We believe this achievement is the result of steadily implementing our strategy of increasing the profitability of theCanon product business and investing the cash generated
from this business in the IT solutions business and other areas.
At the same time, we have been implementing our ongoing
efforts, such as improving productivity through business selection and concentration and reviewing business processes.
In our Long-Term Management Objectives (2021–2025),
we set the goal of achieving ¥300.0 billion in net sales in
the IT solutions business by fiscal 2025. We are steadily
approaching this goal, with net sales of ¥241.4 billion in
fiscal 2022, ¥268.9 billion in fiscal 2023, and a target of¥290.0 billion in fiscal 2024. The basic strategy of the IT
solutions business is to provide value that caters to the specific needs of each customer segment, and we are working
to clearly define the areas of focus and transition to a service-type business model. To accelerate this transition to aservice-type business model and take our profitable growth
to the next stage, we will continue to invest in growth andfocus on developing highly skilled professionals.
Our investment strategy is to undertake ¥200.0 billion
in growth investment, including M&As, over the five-year
period ending in fiscal 2025 with the aim of expanding our
IT solutions business. As part of these efforts, in 2023, we
made Tokyo Nissan Computer System Co., Ltd. (now TCSInc.) a wholly owned subsidiary, and made Primagest, Inc. awholly owned subsidiary at the end of March 2024. TCSʼs
core businesses are IT infrastructure design and construction, data center services, and system operation. Using

the technical strengths it has developed through thesebusinesses and its highly skilled professionals, it is building
positive, long-lasting relationships with customers. We will
combine TCSʼs strengths with the Groupʼs IT platform business and system development to reinforce maintenance andoperations services/outsourcing, one of our areas of focus.
Primagestʼs strengths lie in its Business Process Outsourcing(BPO) services, which utilize DX. Over many years, it hasestablished a strong customer base, primarily centered on
financial institutions and government ministries, and it enjoys
a high level of trust from customers. By fusing the Groupʼs
own wide-ranging customer base and diverse resources withPrimagestʼs knowledge and highly efficient operation methods, we will further accelerate the expansion of our BPO
business.
We have also concluded capital and business allianceagreements with CARE CONNECT JAPAN, Inc., which develops nursing care systems, AWL, Inc., which excels at AI video
analysis for stores, and Doctors Inc., which supplies digital
health and other services in the medical field. Throughthis investment, we are working to expand our IT solutions
business. The number of investment study projects with thepotential to contribute to business growth is steadily rising.
(To▶ Value Creation Story on page 19)

To develop highly skilled professionals, we are recruiting
personnel from outside the Group. For internal personnel, we
visualize the type of human resources required for each position and role-specific levels in accordance with our businessstrategies. We are also working to raise the base level ofour personnel by enhancing our specialist training, including
administering DX certification exams, DX business certification exams, and design thinking tests aimed at improving
innovation skills. (To▶ Human Resources Strategy on page 29)

Aspiration Incorporated in Our Purpose

President &Representative Director

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Canon Marketing Japan Inc. | Integrated Report 2023

Masachika Adachi

We are simultaneously carrying out multiple long-term initiatives in order to achieve dramatic, sustainable growth infiscal 2025, the final year of our Medium-Term Management
Plan, and beyond.
The Group strives to sustainably increase its corporate
value by solving social issues through our business activities,

but social issues are becoming more complex and severe atan accelerating rate.
We have an extensive customer base that encompasses
everything from large corporations to quasi-major and uppermedium-sized enterprises, small and medium-sized enterprises, and individual customers. We also offer diverse products

Canon Marketing Japan Inc. | Integrated Report 2023

4

Message from the President
and services, from products for different customer segments,
such as cameras, business equipment, and semiconductor-related equipment, to SI services and IT services such as ITO
and BPO services. Furthermore, we are expanding our business in each business field in collaboration with our manybusiness partners. Our broad customer base and the various
business partners we collaborate with to offer such a diversity of products and services makes the Group a rarity.
We will continue to focus on M&As as one form of investment for growth and more actively hire and promote outside
personnel, so the Group is poised to grow even more diverse.
We aim to achieve even greater growth by leveraging thisGroup strength of diversity and by further adopting newtechnologies and new knowledge from outside the Group.
Led by this concept, we wish to become an even stronger
unifying force, bringing together stakeholders with the same
spirit to solve an even greater breadth of social issues in evenmore areas. This is why in January 2024, based on our philosophy of Kyosei, we have clearly articulated the significanceof the Canon Marketing Japan Group (hereinafter the Canon
MJ Group) in society in the form of our Purpose: “Bringing
together hopes and ideas with technologies to create afuture beyond imagining.” Along with our Purpose, we alsodeclared ourselves to be a MIRAI Marketing Company, which
represents the essence of the Canon MJ Group. When wewere coming up with our Purpose, we wanted to express
both what kind of society we wanted to realize and theGroupʼs strengths and character. The phrase of “create afuture beyond imagining” reflects the moving experience ofseeing a future that surpasses what our customers imagine,
together with our resolve to constantly innovate, unfetteredby convention, to solve the social issues that lie beyond ourcustomers. It also expresses our desire to create a more
beautiful society, abounding with hope and joy. (To▶ OUR
PURPOSE on page 1)

For all Group employees to embody this Purpose, it isimportant that the leaders of each segment and each Group
company interpret the Purpose with respect to their own
divisions and express it in their own words. This helps eachand every field employee see the Purpose as something they
are directly involved in̶to think about how they can embody
the Purpose in their own work, and to put their ideas into
action. We hope that these actions will become well-known
outside the Group, attracting stakeholders with whom our
Purpose resonates. The entire Group will take on new challenges using a future-oriented approach. (To▶ Our Thoughts
on page 7)

Further Ensuring Our Sustainable Growth
To realize our Purpose, we wish to not only solve the social
issues of today but also to promote initiatives aimed at solving the social issues of tomorrow. By doing so, we intend toensure the sustainable growth of society and of the Group.
To this end, it is vital that we refine our business structurefrom a long-term perspective and heighten our effectivenessby supplementing our own technologies and knowledge withoutside technologies and knowledge.
One specific measure we have used to achieve this is
the establishment of the R&B (Research & Business
Development) Promotion Center in January 2024. The R&B
Promotion Center, with its initial staff of 23 members, will becreating new businesses. It is a specialized organization with
two functions: a research function that investigates advanced
technologies, business models, and the like, and a businessdevelopment function that creates new business. Throughthese functions, the R&B Promotion Center will reinforce theGroupʼs overall business creation functions.
We have two domains for investment where we anticipate
further market growth: Well-being (human perspectives) and5

Canon Marketing Japan Inc. | Integrated Report 2023

Business Transformation (industrial perspectives). Withinthese two domains, we have defined six investment areas,
including “life purpose,” creating services that empower anyone to experience the vitality to live in good health throughspiritual enrichment, and “emerging industries,” creating new
industries using innovative technologies that solve social
issues. We plan to actively bring in state-of-the-art technologies and expertise from outside the Group to solve social
issues which cannot be tackled with our own technologies
alone.
In our approach to latent social issues, we are promoting the active real-world deployment of new technologies
through collaboration between industry, academia, and government. We have already launched a joint research projectwith the University of Tokyo, and we plan to promote innovation in conjunction with the Tokyo Metropolitan Government
and to dedicate ourselves to developing innovation-mindedpersonnel.
When we established the R&B Promotion Center, we
also set up the Canon Marketing Japan MIRAI Fund. It isa 10-billion-yen corporate venture capital (CVC) fund thatinvests in the two domains. I look forward to discovering awide range of startup companies through this CVC fund.
I am sure that among the cutting-edge technologies wewill investigate, we will find technologies that have a highlevel of affinity with our current business and which can leverage the Groupʼs resources to expand the business. For thisto materialize, we have assembled a cross-functional team inwhich employees selected from each segment concurrently
hold their current positions as well as R&B positions. These
concurrent members will share the cutting-edge technology
information discovered by the R&B Promotion Center withsales divisions, promoting the use of these technologies incurrent businesses and expanding their scale. (To▶ Value
Creation Story on page 23)

To Our Stakeholders
Through the selection and concentration of businesses andthe transition to a more robust corporate structure, theGroup has heightened its ability to generate cash. We currently consider it vital that we effectively utilize these large
cash reserves, especially through investment in growth. It
is our intention to implement business management that is
attentive to profitability and capital efficiency. The cash wegenerate through this business management will be re-invested in growth businesses to further reinforce our business.
By taking this virtuous cycle to an even higher level, we areworking to sustainably increase our corporate value. We arefocused on disclosing information through our Integrated
Report and engaging in dialogue with stakeholders based on
this information in order to provide our stakeholders with adeeper understanding of the Group. (To▶ Financial Strategy on
page 25)

As a result of these initiatives, in fiscal 2023 our stock pricereached a new high. When I was appointed President, ourPBR was less than 1. As of the end of fiscal 2023, it has risen
to 1.28 times. I see this as a reflection of the higher expectations of our shareholders, and I will strive to meet these
expectations. Over the three-year period between 2020
and 2023, our dividends have doubled, from ¥60 to ¥120. In
January 2024 we changed the target consolidated payout
ratio, which had been 30% or more, to around 40% or more.
We intend on continuing to return profits to shareholders by
ensuring profitable growth.

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

The Company is a listed subsidiary of Canon Inc. As apublicly listed subsidiary, we understand that our minority
shareholdersʼ greatest concern is whether there is a conflictof interests with our parent company, so we strive to maintain thorough governance. On another front, the expectations and demands of the capital market are heightening. To
demonstrate our dedication to governance, in January 2024
we established a Special Committee as an advisory body to
the Board of Directors. The Special Committee is composed
exclusively of independent outside directors. In addition,
we made the majority of the Nomination and Remuneration
Committeeʼs members independent outside directors. The
Special Committee deliberates on and considers the risk of
conflicts of interests between the controlling shareholder andminority shareholders from the perspectives of protecting theinterests of minority shareholders. We will continue to reinforce and enrich our governance efforts.
The Canon MJ Group, a MIRAI Marketing Company, will
promote further transformation, and all of our employees
will work together as one to achieve our Purpose of “bringing together hopes and ideas with technologies to create afuture beyond imagining.” We look forward to your ongoingsupport and guidance.

President &Representative Director

Masachika Adachi

Please refer to the pages indicated below for details on each topic.

Page 9
Our Path to BusinessTransformation and the
Formulation of Our Purpose

Page 25

Page 29

Financial Strategy

Human Resources Strategy(Financial Capital)(Human Capital)

Canon Marketing Japan Inc. | Integrated Report 2023

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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 the
key 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 true
partner” 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

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Canon 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 (solutions
and 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 to
our 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 2023

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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 Growth
Since 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 the
Ministry 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, we
acquired 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.

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Canon 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 of
IoT 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 with
Silicon Graphics, Inc.

2006
Acquires FMS Inc. (nowCanon ITS Medical Inc.)
2007
Acquires Argo 21
Corporation
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 Purpose

Our 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 the
Purpose.

Greater Resonance with the Purpose
To promote a greater understanding of the Purpose among Group
employees, 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% of
employees 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 Group

Confirms that the
Purpose would be thekey deliberation topic
for 2022

Confirms the three key
perspectives and identifies elements

Organizes and summarizes concepts
Updates elements
Coordinates with
the 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 public
in 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. It
presents 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 the
future 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.

11

Canon 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 of
growing societal uncertainty, the Canon MJ Group, led by
its Purpose, will further collaborate with stakeholders, creating and working together. Through this, we will continue to

evolve so that we can solve an even wider range of societal
issues.
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 on
the 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 2023

12

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

Professional

Research, development, andmanufacture of Canon products

Inkjet printers

2nd

Customersof Canon MJ’s
customers
Customers’competitors

Office MFPs

3rd

place

Specialist fields

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

1st
place

Industry

Bring satisfaction to
the customers ofCanon MJ’s customers

Technical Capabilities

Customers

Customers
maintain an edge
over the competition

Competitors

Canon
MJ

and service and support functions, which are not included in
the 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 IT
solutions business

Systems engineersEnterprise

Area

Specialist fields

Professional

BPO(Business
Process
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

place

Laser printers

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

Customers

1st
place

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 the
subject 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 to
low-code development
platforms
Number of registered patents

10.0Over 40 years0(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 a
decrease in capital due mainly to a contribution of cash to retirement
benefit trust of ¥18.0 billion.

Canon Marketing Japan Inc. | Integrated Report 2023

14

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 sales

Percentage 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

15

Contents

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 higher

Number 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 are
Outside 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 .............................

7
9

At a Glance
What is the Canon MJ Group? ........................................ 1 3Strengths of the Canon MJ Group ................................ 1 4
The Current State of the Canon MJ Group(Financial and Non-Financial Highlights of Fiscal 2023) ... 1 5Contents ...................................................................................... 1 6
The Canon MJ Groupʼs Value Creation
Value Creation Process ....................................................... 1 7
Value 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 9

The Canon MJ Groupʼs Management Strategy
Progress 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 of
publication.
The following factors may therefore influence actual results. These
factors 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

16

The Canon MJ Groupʼs Value Creation

Purpose of the Canon MJ Group

Value Creation Process

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

Employees

Customers

Localcommunities

Business partners
Shareholders andinvestors

Societal changes being focused onby the Canon MJ Group
Conserve andprotect the global
environment

Popularize
and accelerate
digitalization

Accelerate
workstyle reforms

Promote change
in the workforce

Educationaland research
institutions▶Page 29

Coexist in harmony withthe global environment▶Page 73

Promote responsible
supply chains

Promote risk and crisis
management

Implement soundgovernance▶Page 79

▶Page 80

▶Page 43

Provide solutions that
advance peopleʼs daily
lives, work, and society

Achieve diverse

working styles (work)

Business activities

through increased productivity

Long-Term Management Objectives (2021-2025) / Medium-Term Management Plan (2022-2025)

5,742

Number of employees receiving DX certification/
DX business certification professional level

Pillars ofrevenue

Investment for
future growth

608

Deep understanding ofcustomers throughcustomer-centric approach

660,000 hours*Training hours per person: 41.0 hours(As of December 31, 2023)▶Page 25

Robust ﬁnancial structure
Ability to generate ample cash
▶Page 70

High-quality Canon products
Relationship of trust with customers
Exploration and provision of advanced

Social and relationship capital
Customer segments in various scales
Various and diverse business partners

17

Canon Marketing Japan Inc. | Integrated Report 2023

Canon
productbusiness
Specialized
areas andnewbusinesses

IT solutions
business

Individual
customers

Large corporations
and quasi-major
and upper
medium-sizedenterprises

Small andmedium-sizedenterprises

Market growth potential

Research & Business Development

Customersin specialist
fields▶Page 23

Creation of new businesses based onsocial issues
Tradingcompanyfunction

Economic value

8.7 %

ROE

Total number of training hours

Intellectual capitalsecure society

Developing together
with customers

Professional

Number of employees receiving DX certification/DX
business certification standard level or higher

Increasing the earnings capacity of
the Canon product business and expanding
the IT solutions business with proﬁtArea

13,887*Percentage of employees: 86.3%

Financial capital

Realize a safe and▶Page 51

Customer- and market-based organizational structureEnterprise

Number of employees completing DX certification/
DX business certification exams

Earnings capacity

Business portfolio

4,000

Consumers

Systems engineers▶Page 81

Enrich lives

2025 Vision | Professional corporate group that solves social and customer issues using ICT and the power of humans

16,089Approx.

Value we create
Social value

Improve organizational
capabilities to enable diverse
human resources to thrive▶Page 77

technologies

Number of Employees

Students

Material issues that meet the expectationsand needs of stakeholders

Source of value creation
Human capital

NGOs and NPOs

Public agencies andlocal governments

Systems
integrator
function

IT solutions
providerfunction

Creation of solutions that anticipate changes inthe times and diverse needs

Net sales¥609.5

ITS sales¥268.9Operatingincome¥52.5

billionbillion

Payout ratio

billion43 %(As of December 31, 2023)

The “Three Selfs” spirit: self-motivation, self-management, and self-awarenes

Canon Marketing Japan Inc. | Integrated Report 2023

18

The Canon MJ Groupʼs Value Creation

Value Creation Story

Special feature: Increasing corporate value through M&As
and capital and business alliances

The Group has expanded its business domains through a series of M&As and capital and business alliances
since the 1970s. We established an R&B organization in January 2024 to strengthen our internal structurewith the aim of achieving further sustainable growth and exploring new areas beyond existing businessdomains. We will introduce the history of our M&As and investments up until now, and the outlook for future
expansion of our business domains.

In addition to M&As, the Group is also reinforcing functions
and supplementing resources through capital and businessalliances in order to expand its IT solutions business. Recently,
we have signed capital and business alliance agreementswith Asilla, Inc. and AWL, Inc. to strengthen imaging solutions, with Doctors Inc., which support medical DX, and withCARE CONNECT JAPAN, Inc., which engages in nursing caresolutions.
In January 2024, as one of the concrete measures toachieve our Purpose, we established the R&B (Research& Business Development) Promotion Center and Canon
Marketing Japan MIRAI Fund, a corporate venture capital(CVC) fund. In approaching potential social issues, we willfurther promote collaboration with industry, government, andacademia, especially co-creation with startups.
We are working to sustainably increase corporate value
by continuing a virtuous cycle of making investments with afocus on capital efficiency and profitability, and reinvesting
the profits generated into growth businesses.

Expanding Business Domains through M&As with Highly Unique Companies
Starting with the sale of Canonʼs pioneering cameras andoffice equipment, the Group has expanded its sales channels
and customer base. Later, in 1982, we fully started our software business by making Fuji System Development a subsidiary, which we had invested in and made an affiliate in 1978,
and this was the starting point for the Groupʼs propelling
independent business. In order to respond to the diversifying
needs of customers, we expanded into the sale of hardware
such as PCs manufactured by other companies. Furthermore,
to strengthen our SI service business, which develops mission-critical systems for customers, we made Sumitomo Metal

System Solutions Co., Ltd. a subsidiary in 2003 and Argo 21
Corporation a subsidiary in 2007, integrating these two companies to form Canon IT Solutions Inc. in 2008.
In this manner, under Canon ʼ s DNA of an enterprising
nature, we have listened to the voices of the market and ourcustomers, added highly unique companies with the functions and areas the Group wants to expand into, challenged
ourselves to leverage synergies, and laid the groundworkfor growth. (To▶ Our Path to Business Transformation and theComment from Head of M&A Promotion
It is essential to design a growth strategy that combines organic growth andinorganic growth when considering increasing the Groupʼs corporate value.
Generally, the success rate of M&As is said to be several dozen percent. In
the Companyʼs M&As, we proceed with deals while repeatedly discussing internally why we want a company to join the Group and its strategic positioning
in order to improve its success rate. We have the courage to suspend deals ifthey do not align with our strategy or if we cannot justify the price. Recently,
we have utilized past experiences and focused more on PMI, and establisheda system where members involved in M&A reviews are responsible for bridging
the companies involved and considering value enhancement measures after
acquisition.
Going forward, we intend to execute M&As that will make both the Groupand the newly joined companies, as well as their customers beyond them, glad
to have joined forces.

Formulation of Our Purpose on page 9)

Narrowing Down Target and Priority Areas to Acquire Functions and Resources We Want to Strengthen
In 2018, we changed our organizational structure from being
based on products and sales channels to being based onmarkets and customers, and narrowed our targets through acustomer-oriented strategy. In the Long-Term Management
Objectives (2021-2025) announced in 2021, we set the goalof ITS3000 aiming for IT solutions business sales of ¥300.0
billion, and established KPIs for priority areas. In order tooffer higher value-added proposals, we are narrowing ourJanuary 2003 October 2006 June 2007
Acquires
Sumitomo
Metal System
Solutions Co.,
Ltd. (nowCanon IT
Solutions Inc.)

September
2008

target and priority areas, and pursuing M&As and capital andbusiness alliances to acquire functions and resources that arelacking or need further strengthening in the Group. We invest
not only for expanding the scale of our business, but in companies with competitive advantages in their fields.
Recently, we added QB5 Inc. in 2022, Tokyo Nissan
Computer System Co., Ltd. (now TCS Inc.) in 2023, andPrimagest, Inc. in 2024 to the Group through M&As.

September2017

May 2021

Concludes a capital
Acquires CAD Acquires Argo
Concludes aConcludes aand businesssoftware sales 21 Corporation Acquires
capital and
BicNIWS Inc.
capital andbusiness from (now Canon IT
business alliance alliance agreement(now Qualysite business alliance
Kubota Solid Solutions Inc.) Technologies
agreement with with Capital Asset
Planning, Inc.
agreement
withTechnology
Keyware
Inc.)
Safie
Inc.
Corporation
Solutions Inc.

December 2013 September
2019
Acquires
Acquires FMS Acquires Chori Launches
Increases
Material
Inc. (nowJoho System
Canon IT
investment
Automation
Canon ITS
Co., Ltd. (now Solutions Inc.
(Thailand)
Medical Inc.)in Safie Inc.
Canon IT
Co., Ltd.
Solutions Inc.)
January 2006 April 2007

19

January 2022

Canon Marketing Japan Inc. | Integrated Report 2023

April 2008

General Manager of Business
Development Department
Corporate Planning Headquarters

Motohiko Kaneko

April 2022

September 2022

January 2023

August 2023

March 2024

Concludes a capitaland business allianceagreement with
Kantsu Co., Ltd.

Concludes acapital andbusiness allianceagreement with
Asilla, Inc.

Acquires the systems
integration division ofCanon Medical
Systems Corporation’s
hospital information
systemConcludes a capital andbusiness allianceagreement with AWL, Inc.

Acquires
Primagest,
Inc.

Concludes a capitaland business allianceagreement with THS, Inc.

Concludes a capital andbusiness alliance agreementwith Doctors Inc.

July 2021

August 2022

December 2022

June 2023

October 2023

Concludes a capital andbusiness alliance agreementwith Needs Well Inc.

Acquires QB5 Inc.

Concludes a capitaland business allianceagreement with
CHIeru Co., Ltd.

Concludes a capitaland business allianceagreement withCARE CONNECT
JAPAN, Inc.

Acquires Tokyo Nissan
Computer System Co.,
Ltd. (now TCS Inc.)

Canon Marketing Japan Inc. | Integrated Report 2023

20

The Canon MJ Groupʼs Value Creation

Value Creation Story

Special feature: Increasing corporate value through M&As and capital and business alliances

Here are some examples of the purposes and expected effects of M&As and investments.

Examples of M&A achievements
For large corporations and quasi-major and upper medium-sized enterprises

QB5 Inc.

Purpose•Develop high value-added solutions for the customer segment ranging from large corporations to quasi-major
and upper medium-sized enterprises and focus on expanding service menus that contribute to the efficiency
of customer operations, including back-office outsourcing

Expected•

Enhance both operational efficiency and service quality and promote highly efficient business operations byexpanding QB5ʼs BPO services to the Groupʼs extensive customer base and incorporating QB5ʼs expertise andbusiness processes into the Groupʼs BPO business
Utilize our IT resources to develop new services that improve the efficiency of customer operations using
advanced technologies such as AI

effects•

For large corporations and quasi-major and upper medium-sized enterprises
Purpose••Expected
effects••••

Enhance the ability to respond to projects and provide added value to customers through mutual complementation of sales and engineering staff
Strengthen proposal and sales capabilities by leveraging TCSʼs sales force and customer base to offer theGroupʼs solutions and products
Strengthen the service provision capabilities of TCSʼs data center business by leveraging the Groupʼs IT
platform
Promote human resource development by utilizing the Groupʼs human resources development and training
programs and exchanging human resources

Primagest, Inc.

•

Aim to further contribute to improving the efficiency of customer operations by utilizing the Groupʼs unique
technologies and the operational experience in the customer segment ranging from large corporations to quasi-major and upper medium-sized enterprises

Expected•

Enhance both operational efficiency and service quality and seek further expansion of the BPO business by
not only expanding Primagestʼs services to the Groupʼs customer base across a wide range of industries, butalso by incorporating Primagestʼs knowledge and expertise into the Groupʼs BPO business
Aim to create new services as a unified entity between both companies by combining the technologies andsystem development capabilities cultivated through the Groupʼs imaging solutions and digital document
services

Representative Director & CEO
Saﬁe Inc.

Ryuhei Sadoshima

Examples of investment achievements
For large corporations and quasi-major and upper medium-sized enterprises
Purpose••Expected
effects•••

For small and medium-sized enterprises
PurposeExpected••

effects••

21

Canon Marketing Japan Inc. | Integrated Report 2023

manufactured by Axis Communications, a Canon Group company, exclusively for Safie Cloud.
On this page, we asked Mr. Sadoshima, Representative
Director & CEO of the company, about the benefits of working with us and the future the company wants to achievewith the Group.

We founded Safie in 2014 with the vision of “create a better future with intelligent vision,” as we wanted to create an open, user-oriented, cloud-driven video
platform. Although we initially engaged in the B2C business, we pivoted to B2B
business in 2016. When we considered delivering services to customers in theB2B business, we thought that collaboration with the Canon Group, which hasa wealth of experience in hardware and software and delivers imaging solutions
globally, was indispensable in terms of the commercial distribution.
With the capital and business alliance in 2017, we were able to provide customers with solutions that combine the Canon Marketing Japanʼs high-quality
hardware with our cloud platform, and now about 250,000 cloud cameras are in
operation, leading to the acquisition of a 56% market share. In addition, throughCanon Marketing Japan, we are expanding VisualStage TypeS based on ourservices to customers in all industries, ranging from small and medium-sizedenterprises (SMEs) to manufacturing sites including large steel companies andfood factories, distribution and airline companies, power companies, and railway
companies.
We are confident that AI solutions using video will grow exponentially going
forward. Against this backdrop, by cooperating with Canon Marketing Japan inedge AI solutions with AI chips embedded in cameras and large-scale services
using Safieʼs platform, we will continue to expand to infrastructure, cities, andglobal services.
Canon Marketing Japan, which has undertaken startup investments in ourcompany twice, has been a partner in our growth. Going forward, we aim toaccelerate cooperation with Canon Marketing Japan MIRAI Fund, a CVC fundestablished by Canon Marketing Japan, create data for everything from homes
to towns, and form an ecosystem to create a better future with intelligent vision
together.

TCS Inc.

Purpose•In 2017, the Company formed a capital and business alliancewith Safie Inc., which has the top market share in cloudrecording services. We have been working together to solve
social issues through video utilization, such as by combining the Companyʼs network cameras and imaging solutions
with Safieʼs cloud services, as well as by providing cameras

Further enhance the full support for our customersʼ IT lifecycle by not only mutually complementing theIT platform businesses of both companies but also combining them with Canon ITS ʼs strength in systemdevelopment
Demonstrate various synergies, such as expanding the Groupʼs solutions to the TCSʼs customer base

For large corporations and quasi-major and upper medium-sized enterprises

effects

Comment from Investee Company

AWL, Inc.

Develop imaging solutions by linking AWLʼs AI image analysis with the Groupʼs network cameras, image management software, and image cloud service, and promote co-creation of DX for stores
Contribute to measures to address worker shortages by utilizing various data related to store operations, notlimited to images
Jointly propose AWLʼs AI image analysis services to the retail industry using our customer base and sales
channels
Jointly develop new functions for AWLʼs AI image analysis services aimed at the retail industry
Create new solutions for the retail industry by linking the Groupʼs network cameras, image management software, and image cloud service VisualStage with AWLʼs AI image analysis services

CARE CONNECT JAPAN, Inc.
Enhance the system and solution lineup to support DX in the nursing care and welfare industry utilizing the knowhow accumulated from solving problems and improving work processes in the nursing care field and contributevalue to customers

Event Canon MJ and Saﬁe Inc. participated in(Tokai Startup Conference in February 2023)

Company name: Safie Inc.
Location: Sumitomo Fudosan
Osaki Garden Tower,

Representative: Ryuhei Sadoshima,
Representative Director & CEO
Description of business:

1-1-1 Nishi-Shinagawa,

Development and operation of the

Shinagawa-ku, Tokyo, Japan

cloud-based video recording and video

Established: October 2014
Capital: ¥5.58 billion

management platform “Safie” andprovision of related services
Corporate website URL:
https://safie.co.jp/en/about/

Strengthen the sales structure by establishing a dedicated system for CARE CONNECT JAPANʼs nursing
record system CARE KARTE, and jointly expand it to new customers through means such as jointly holding
seminars
Accumulate know-how in the nursing care and welfare industry through mutual exchange of human resources
Create Canon S&Sʼs services in the nursing care and welfare industry, such as maintenance and operation services for the nursing record system CARE KARTE
Canon Marketing Japan Inc. | Integrated Report 2023

22

The Canon MJ Groupʼs Value Creation

Value Creation Story

Special feature: Increasing corporate value through M&As and capital and business alliances

Establishment of CVC Fund

Launching the R&B Initiatives
We believe that in order to solve increasingly complicatedand challenging social issues and develop a sustainable society, it is necessary as a corporate to constantly look to the
future and continuously create new value that is free fromexisting frameworks.
Through the R&B Promotion Center, which was established in January 2024, we are building a worldwide network
through collaborations with various stakeholders, such as
startups, academic institutions, and government entities,
and working on creating new value. We will search for new
areas of business based on future social issues that are

Startups

not extensions of existing businesses from a backcasting
perspective, while also expanding existing businesses froma forecasting perspective through the activities of Cross
Functional Team*.
In R&B Promotion Center, we are working to transform thebusiness portfolio of the Group by creating future markets
through an entrepreneurship program (Canon i Program), andexpanding collaborations with other companies.

(Registered name: Canon Marketing Japan Future Investment Limited
Liability Partnership)Social implementation of advanced
technologies and research

Building synergies and collaborations

Participation in collaborative projects

Academic andresearch
institutions

Collaboration
between industry,
government and academia

Collaboration
between companies
Canon Marketing Japan Inc.

Enterprise andventure capital

Collaboration with venture capital

Participation in collaborative projects

Investment target: Domestic and overseas startups at all stages, with a focus on early andFund size: ¥10.0 billion (planned)

Operator: Global Brain Corporation

As one of R&B initiatives, we established a ¥10.0-billion CVC
fund “Canon Marketing Japan MIRAI Fund,” to accelerate
open innovation with startups holding cutting-edge technologies and business ideas.
The investment areas of this fund are based on social
issues anticipated in the future, without being bound by theGroupʼs existing businesses. We will invest in domestic andhttps://we-at.tokyo/en/

Conducting demonstration experiments: 10 years from January 29, 2024 (planned)

Government
agencies*WE AT: Established in May 2024 jointly by the University of Tokyo, Tokyo Medical and Dental University, Kyoto University, UTokyo Innovation Platform Co., Ltd., HakuhodoInc., Sumitomo Life Insurance Company, and Canon MJ. It aims to build a global startup ecosystem that creates innovations to solve social issues.
The WE AT logo is a brand logo that embodies the initiatives of WE AT, and is a trademark filed by the University of Tokyo (Trademark Application No. 2023-111782).

Comment from Head of R&B Promotion Center
New business creation does not always produce immediate results, and failures
are inevitable. However, if we fear failure and seek short-term results, we willlose sight of the true significance of this initiative. We will constantly maintaina spirit of challenge, expand the circle of co-creation through open innovation
with startups and academia that have new technologies and business ideas, andwork on creating new businesses based on future social issues.
To create a future full of hope and joy, and to ensure that we continue to bea necessary part of the future society, we intend to push ahead with innovation
throughout entire Canon MJ Group.

President & CEO
Global Brain Corporation

In establishing Canon Marketing Japan MIRAI Fund, Canon Marketing Japan has
launched the R&B Promotion Center as a specialized organization for R&B towork on the creation of new businesses to solve social issues with a future-oriented approach. There is no doubt that the cooperation between the technologies, business development capabilities, excellent human resources, and diverse
networks of large corporations and innovative startups will be a major driving
force for the creation of new value. We expect this to have a significant impact
on promoting open innovation.
The human perspectives and industrial perspectives set by the R&B Promotion
Center focus on “safe and healthy lives from individualsʼ points of view” and“sustainable economic activities,” which are not only perpetual desires, but also
themes that require us to continue to look at things from a future-oriented perspective. We look forward to creating new value together with Canon Marketing
Japan, leveraging our startup discovery capabilities, hands-on support system,and overall fund management know-how that we have developed over the past
25 years.

Yasuhiko Yurimoto
Company name: Global Brain Corporation
Location: Shibuya-ku, Tokyo, Japan
Established: January 1998
Capital: ¥100 million

General Manager of R&B Promotion Center
Corporate Planning Headquarters

overseas startups with innovative technologies and business models in two major domains: (1) Well-being (humanperspectives) and (2) Business Transformation (industrial
perspectives).
In addition to the M&As and venture capital investmentsthat the Group has steadily undertaken so far, we will take on
the challenge of managing a CVC fund.

Comment from Canon Marketing Japan MIRAI Fund General Partner

WE AT*, etc.

Collaboration with other companies

Fund term

middle*Cross Functional Team: Project team formed to connect domains and technologies
explored by the R&B function with business divisions, withthe aim of creating new businesses that lead to the future
growth of the business divisions

Collaboration with advanced
technologies and companies：Canon Marketing Japan MIRAI Fund L.P.

Name

Representative: Yasuhiko Yurimoto,President & CEO
Description of business:
Venture capital businessCorporate website URL:
https://globalbrains.com/en/

Naoya Ishida

23

Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

24

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Financial Strategy
simultaneously established the R&B (Research & Business
Development) Promotion Center as an organization to create
new businesses, as well as a CVC fund, the Canon Marketing
Japan MIRAI Fund. With R&B and CVC, we are promoting
backcasting approach by formulating hypotheses aboutsocial issues in the next 10 to 20 years and exploring new
businesses from the perspective of how to contribute to solving these issues, while strengthening the business creation
function together with the conventional forecasting approach.

Aim to increase equity spread byboth improving ROE and reducing costof capital while executing bold
growth investments
Director & Vice President
In charge of Group Auditing,Group Finance & Accounting,and Group Procurement
Chief Executive ofFinance & Accounting Headquarters

Medium-Term Management Plan (2022-2025)
The Medium-Term Management Plan (2022-2025) sets financial targets for fiscal 2025 of ¥650.0 billion in net sales (ofwhich ¥300.0 billion from the IT solutions business), ¥58.0
billion* in operating income, and ROE of 9.0%*.

Tsuyoshi Osato

Achieved Record High Profits for the Third Year in a Row; Aiming to Ensure Achievement of Fiscal
2025 Financial Targets
Overview of Business
For the year ended December 2023, we achieved record highprofits for the third year in a row, with net sales of ¥609.5
billion (up 3.6% year on year), operating income of ¥52.5
billion (up 5.1% year on year), and net income of ¥36.5 billion(up 2.6% year on year). The stock price has also remained at
a high level since the beginning of the year, and we feel thatthe efforts of the Long-Term Management Objectives (20212025) and Medium-Term Management Plan (2022-2025),
which the Group has been promoting, have been confirmedin terms of results, and the direction of the aimed transformation is being appreciated by our stakeholders.
The IT solutions business is driving strong performance. The
sales of the IT solutions business for the period were ¥268.9
billion (up 11.4% year on year), and its sales as a percentageof the Groupʼs net sales composition increased from 37% in
fiscal 2020 to 44% in fiscal 2023. The IT solutions businessconducts business in three areas: systems integration services, maintenance and operations services / outsourcing,and IT products and system sales, with a particular focus
on the highly profitable and sustainable maintenance andoperations services / outsourcing business. For example, data
center services, including cloud services, and the Makasete IT
DX Series, which provides one-stop services from IT planning,equipment selection, installation, training, operation, andmaintenance, are performing well in the enterprise segment
targeting large corporations and upper medium-sized andquasi-major enterprises, and in the area segment targeting
SMEs, respectively. Solutions tailored to each customer segment are being developed in a way that matches the market
needs. We aim to further expand our business centering on
this area in the future.
In addition, in January 2024, the Group announced its
Purpose, which clarifies its social significance, andCash Allocation
Under the Medium-Term Management Plan (2022-2025), we
assume investments of ¥200.0 billion by fiscal 2025 for business growth, with investment strategies focusing on threeareas of business investments, system investments, andhuman resources investments. Continuous investments are
essential for future growth, and we will proceed with flexible
evaluation and speedy decision-making. In business investments, under a basic strategy of positioning the IT solutions
business at the pillar of growth, we expect to make significant investments in the areas of M&As and data centersrelated to IT solutions.
In terms of M&As, we welcomed TCS to the Group in
fiscal 2023. TCS has strengths in the maintenance and operations services/outsourcing area on which we are focusing.

Furthermore, we welcomed Primagest to the Group in March
2024. Primagest is engaged in BPO business, which we havedefined as a focus area within the IT solutions business. The
number of projects under consideration is steadily increasing,
and we are pursuing various projects daily based on long andshort lists. We are aware of the importance of steadily investing for future growth, and are working to seize opportunities
without missing them.
In the data business, demand is expected to grow further inthe future, including for generative AI-related applications, andwe plan to make new investments early on and move forwardwith building No. 3 and subsequent buildings as soon as possible while considering various options in terms of scale andarea.

Approach to Cash Allocation
Shareholder returns
Domains for investment¥4,604

Operatingcash ﬂow

Record high since listing

4,000(As of January 30, 2024)

Growthinvestments of¥200.03,000

billion or more
2,000

Cash on hand

IT solutions
business growth
Priority areas• Edge solutions• IT maintenance for
SMEs• Data centers• Security, etc.

New businesscreation

1,000

Investment details

M&As andinvestments
Systeminvestments
Investments inhuman resources

Reinvest

5,000

25

*Operating income and ROE stated in the Medium-Term Management Plan (20222025) announced on January 27, 2023 were revised upwards.

Continuous Investment for Future Growth and Enhancing Shareholder Returns

Canon MJʼs Stock Price Range (Yen)0

Our ability to generate cash has increased beyond initialexpectations by steadily executing strategies based on thebasic policies of the Medium-Term Management Plan (20222025). We believe that actively investing the ample cash
generated into growth businesses will optimize our businessportfolio and balance sheet, which will lead to improved net
income to net sales ratio and total asset turnover and further
enhance ROE. In each business, there is a growing awarenessthat increasing the efficiency of business assets by allocating
cash to strategic investments will lead to improved ROE for
the Group, and as the Director in charge of finance, I feel confident in achieving the goals two years from now.

Cash and deposits needed, etc.: Maintain an appropriate level of cash anddeposits on hand in preparation for emergencies
2008

2009

2010

2011

Canon Marketing Japan Inc. | Integrated Report 2023

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Canon Marketing Japan Inc. | Integrated Report 2023

26

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Financial Strategy
DX, and we are developing these systems as a business foundation to support further productivity improvements.
With respect to human resources investments, it is necessary to secure highly skilled IT human resources throughvarious means to further accelerate the speed of businessexpansion, and we are focusing on upgrading our humanresources both by raising the level of internal human resources and by hiring external human resources.
As an investment manager, I recognize that securing anddeveloping human resources to conduct business investments
is a pressing issue, and one of the main purposes of establishing the R&B and CVC organizations is to develop and produce
employees who are highly proficient in investment strategies
and innovation-minded. By broadly allocating human resources
trained through numerous practices across various businesses, we aim to build a sustainable system where these humanresources can generate new business ideas.

Looking ahead to fiscal 2025 and beyond, we position the
newly established R&B and CVC as key organizations in
implementing business portfolio reform, and plan to strategically invest funds in these areas as they expand. In R&B, wewill explore new areas, as well as expand existing businesses,
while in CVC, we aim to create open innovation with startups
that have cutting-edge technologies and business ideas, andwill make investments of ¥10.0 billion over a 10-year span.
Investments through the CVC are aimed at achieving strategic returns that lead to the creation of new solutions, without
setting hurdles for financial returns such as capital gains orincome gains. However, I recognize that it is my role to charta path where startups grow through our investments and collaboration, and ultimately achieve strategic returns as well as
financial returns. In the CVC, I will make investment decisions
flexibly as the final investment manager.
In system investments, we are investing in the reform of our
mission-critical system and systems that accelerate internal

Shareholder Returns
have decided to implement dividends with a target consolidated payout ratio of 40% or more. Backed by strong businessperformance this fiscal year, we increased the annual dividends
from ¥90 to ¥120, resulting in a payout ratio of 43%.
We will continue increasing dividends by expanding net
income through ongoing investments in sustainable growthwith profits.

We will also focus on returning profits to our shareholders
along with growth investments. For shareholder returns, ourbasic policy has traditionally been to implement dividends
based on a consolidated payout ratio of 30%. However, going
forward, we have revised the dividend target upward, taking
into account the medium-term profit outlooks, investment
plans, and the cash flows generated from investments, andPayout Ratio

Targeting a consolidated
payout ratio of
40% or more

Based on a consolidated
payout ratio of 30%

43%
Payout ratio

38%

37%

35%

35%

33%

33%

120
60

60

60

60

2017

2018

2019

2020

75

90

Stock Price Reached Record Highs; Aiming to Improve ROE and Reduce Cost of Capital
The Companyʼs stock price has reached a record high sincelisting and has remained at a highest-ever level, with a PBR
of 1.28 times and a PER of 15.2 times, and thus we recognizethat the level of our corporate value has been evaluated to acertain degree. We are not content with this, and will continue to work to further increase our PBR in the future.
The cost of capital is currently calculated internally using
commonly employed methods, and we are of course aiming
for a ROE of 9%, a figure that is higher than the cost of capital. Moreover, recognizing that one of the important missionsof management is to increase the equity spread (ROE – costof capital), and we believe it is necessary to further work on
reducing the cost of capital along with improving ROE.
In order to reduce the cost of capital, it is essential to eliminate the asymmetry of information sought by shareholders
and investors and to enhance trust in the Companyʼs growthstrategy in the market. Recognizing an issue in our Group thatthe growth potential of the IT solutions business is particularly not being adequately conveyed to investors, we will work
to gain a broad understanding of the high potential of ourbusiness through IR activities such as business briefings.
In addition, not limited to information dissemination fromthe Company, we plan to actively engage with shareholders

and investors to accurately understand their expectations
and demands of the capital market, reflect them in the formulation of the next Medium-Term Management Plan, and positively link such expectations and demands to future businessdevelopment.

PBR and PER
18.0
14.0
10.0
6.0
2.0

15.2
PER (Times)

10.1

10.9

PBR (Times)

0.79

0.97

2021
2022
Price-to-earnings ratio (PER)
Price book-value ratio (PBR)

1.28
2023

To Our Stakeholders
In order to accelerate business creation towards sustainable growth from fiscal 2025 onward, we must take on thechallenge of various difficulties beyond the frameworks ofexisting businesses, even in areas where past experienceand knowledge are not sufficient, while identifying risks andreturns. Startup investments through R&B and CVC are thefirst steps in these efforts.
However, although startup investments can bring high strategic returns, they also come with a high degree of uncertainty. Furthermore, because rapid decision-making is required,waiting for institutional decisions at the Company could leadto missed business opportunities.
I have been working on establishing frameworks to speed
up investment decisions. We will continue developing internalframeworks that accelerate investments in new businesses
and growth for the Group, and focus on securing and nurturing innovative personnel who will support and operate theseframeworks. In addition, by practicing management thattakes into consideration the cost of capital and stock price,and executing growth investments, we aim to continuously
raise the level of ROE and strengthen returns to shareholders

by increasing the dividend amount in line with income growth.
We hope for your continued guidance and support.

Dividend per share:
Yen

27

Canon Marketing Japan Inc. | Integrated Report 2023

2021

2022

2023

2025

Canon Marketing Japan Inc. | Integrated Report 2023

28

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Human Resources Strategy
Acquisition and Development of Specialist Personnel
to Achieve Our Business Strategy

Aiming to Create an Engagement Improvement Cycle
to Sustainably Enhance Corporate Value
Director & Senior Vice President
In charge of Group General Administration &Human Resources Management,Group Legal and Intellectual Property,Group Logistics and Secretarial Oﬃce
Group Executive of General Administration &Human Resources Management Headquarters

Minoru Mizoguchi

Maximizing the Value of Human Capital through the Engagement Improvement Cycle
In order to pull further ahead with our business strategy
with our aim of becoming a professional corporate group, weat the Canon MJ Group need to further strengthen the link
between our business strategy and human resources strategy
from a medium- to long-term perspective. As such, we haveadded “establish an engagement improvement cycle” to oneof the basic policies in the Medium-Term Management Plan
(2022-2025). The engagement improvement cycle consistsof three elements: employee job satisfaction, the development of skilled personnel, and customer satisfaction, and isan initiative geared toward linking our business strategy andhuman resources strategy. By formulating and executing measures to provide value based on our business strategy, we
aim to achieve customer satisfaction. As for human capital,
the source of value creation, we aim to develop skilled personnel and enhance employee job satisfaction.

We encourage autonomous growth and specialization
through the development of skilled personnel, and enhancement of organizational capabilities so that individual
employees can perform to their full potential through job satisfaction, maximizing the value of human capital. The idea isthat the value created from these efforts brings satisfaction
to customers, which in turn leads to enhanced job satisfaction and motivation for growth among employees, thereby
creating a virtuous cycle that ultimately results in the sustainable growth of the company.
In our human resources strategy, we aim to create a virtuous cycle by working to develop skilled personnel and achieve
employee job satisfaction, thereby leading to the sustainableenhancement of corporate value through the realization of
our Purpose.

Sustainably Increase Corporate Value
Purpose of the Canon MJ Group

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

Increase in value provided

Developmentof skilled
personnel

Rewarding sense of contribution

Engagement improvement cycle

Employeejob
satisfaction

Motivation for growth

Achieving Business Growth by Developing Skilled Personnel amid a Shrinking Workforce
Bridging the Gap between Business Growth and a
Workforce Decline by Developing Skilled Personnel
In Japan, the workforce is shrinking at an accelerating pace,causing intensified competition for IT personnel in particular. Against this backdrop, we expect the number of Group
employees to fall as a result of natural attrition owing to29

Canon Marketing Japan Inc. | Integrated Report 2023

our personnel structure. In order to achieve business growthin such an environment, we are working to clarify the gap
between having a smaller workforce and achieving business growth, and are developing skilled personnel to bridge
this gap.

In the development of skilled personnel, we are implementing
initiatives mainly on two fronts: acquiring and developing specialist personnel to achieve our business strategy, and raising
the level of employeesʼ basic skills, including digital skills, tofurther improve productivity.
As part of these initiatives, we defined the skills requiredin achieving our business strategy in accordance with theMedium-Term Management Plan (2022-2025). This was thenused to identify the number of employees in each skill levelclassified from 1 to 5, and set targets for each level. Our particular focus is on developing highly skilled personnel by promoting participation in training and seminars and reinforcing
work experience through job rotation. Simultaneously, we aretaking measures to develop the next generation of managerial
personnel. To this end, we have established frameworks for
managerial personnel development, such as conducting selection training for managers and general managers and appointing them to key positions.
We also place importance on hiring professional personnel
from outside the company as a means of developing skilled
personnel, and are actively carrying out recruitment activities
on this front. The Group has adopted meritocracy as a guiding principle in the Canon Code of Conduct since its founding,and has been actively conducting mid-career recruitment
from an early stage. In addition, we have systems in placethat enable employees to perform to the best of their ability, such as the position-based pay system, under which

compensation is determined based on job duties and performance, regardless of age or years of service. We believe thatthese systems can provide us with a certain advantage evenin the face of intensifying competition for human resources in
the labor market.

Further Improvement of Productivity by Raising Basic
Skill Levels

Our initiatives to raise employeesʼ basic skill levels are aimed
at improving the productivity of each employee across all
Group departments not limited to those in the IT solutions
business. Thus we work to enhance their digital skills andhelp them acquire the business skills required of their rank.
Since 2022, we have implemented DX certification and DX
business certification exams across the entire Group for two
consecutive years. As of the end of 2023, approximately
5,700 employees have received certification at the standard
level or higher (of which approximately 600 have professional
level certification).

Active Investment in Human Resources Aimed at
Developing Skilled Personnel
Under the Medium-Term Management Plan (2022-2025), weplan to spend ¥200.0 billion by 2025 on growth investments
including investments in human resources. To achieve further
growth, we intend to accelerate investments geared toward
the acquisition and development of professionals and innovative personnel, particularly those with expertise in IT.

Improving Employee Satisfaction through Visualization of Engagement Scores and Creation of a Rewarding Workplace
Engagement Scores Improved Two Years in a Row
As part of measures to improve employee job satisfaction, we
have been working on the visualization of engagement scoresas well as creation of a rewarding workplace.
We have been conducting an annual engagement surveyof all Group employees since 2021, to visualize our engagement scores. By formulating and implementing improvement
measures based on the survey results, we have improved our
engagement score for two consecutive years.
In January 2024, we established the Canon MJ Group
Purpose based on the belief that we need to unify the aspirations of diverse Group employees. Many companies havejoined the Group through M&As and other means, and their
origins and business activities vary greatly from one another.
As we expect new organizations and personnel to be added
going forward, raising a sense of unity within the Canon MJ
Group and improving employee job satisfaction are importanttasks in terms of our business strategy. I believe that clarifying our Purpose and carrying out initiatives to make sure
it reaches all corners of the Group will raise the rewarding
sense of contribution and job satisfaction of each and every
employee working in the Group, thereby leading to theestablishment of an engagement improvement cycle.

From Workstyle Reforms to Job Satisfaction Reforms
With the aim of creating a rewarding workplace, we launched
the Work Practice Reform Promotion Project in 2020, andhave since been making efforts to lay down the foundation
for reforms including our system reforms.
In addition, as part of our job satisfaction reforms throughwhich we pursue workstyles that bring out the best in each

employeeʼs individuality while also improving productivity, we
are working to realize new workstyles that create added value
by establishing varied workplaces, revising work processes,
and establishing frameworks to encourage telework.
We have also positioned diversity promotion as one of
our key issues in improving our organizational capabilities sothat employees from diverse backgrounds are able to workwith enthusiasm and demonstrate their full potential. We areworking to increase the percentage of people in managerial
posts who are women to 6.0% or more (4.8% in 2023) and thepercentage of people in chief or assistant manager positions,which are positions held by prospective managers, who are
women to 20.0% or more (16.4%) by 2025. Moreover, basedon the health first principle set forth in the Canon Codeof Conduct, we are carrying out strategic and continuous
initiatives to improve employee health literacy and develop
a health culture. Thanks to these efforts, Canon MJ was
selected under 2024 KENKO Investment for Health Stock
Selection and was certified under the 2024 Certified Health& Productivity Management Outstanding Organizations
Recognition Program.
Our human resources strategy is an ongoing endeavor. I
have been in the HR field for many years, and have always feltthat it is an eternal challenge working out how best to synchronize the skills needed to carry out work duties with theabilities and intentions of individual employees. An abundanceof talented personnel goes to waste if we are unable to fully
utilize their potential. We will strive to maximize the potentialof each and every employee and to enable the company andour personnel to continue growing together.
Canon Marketing Japan Inc. | Integrated Report 2023

30

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Human Resources Strategy

Vision for Our Human Resources

Engagement Improvement Cycle “Development of Skilled Personnel”

Professional Human Resources who Demonstrate
an Enterprising Nature and Continue to be
Selected for Creating New Value

We are working to achieve our business strategy and further improve productivity by developing skilled personnel through an
engagement improvement cycle.
Increase in value provided

Developmentof skilled
personnel

Customersatisfaction

Rewarding sense of contribution

Engagement improvement cycle

Employeejob
satisfaction

Motivation for growth

Adhere to the principles of self-motivation, self-management, and self-awarenessin day-to-day activities

Meritocracy

Make vitality (V), specialty (S), originality (O), and personality (P) daily pursuits

Internationalism

Strive to become a culturally sensitive, internationally minded, sincere, and active person

FamilismStrengthen the trust and understanding of others and work together in a spirit of harmony

Health First

Live by the motto “healthy and happy” and work to cultivate character

We continue to learn of our own accord based on the “Three Selfs” spirit and use the cultivated knowledge to take on new
challenges in our business or work. In doing so, we accomplish transformation. And this is where we start learning something new
again. People develop and grow through this cycle. Through growth achieved via proactive learning and the resulting change inbehavior, we aim to develop professional human resources who demonstrate an enterprising nature and continue to be selected
for creating new value.

1

Enhancing Corporate Value through the Engagement Improvement Cycle
We aim to create a cycle in which the independent growth of employees and the improvement of their skills helps invigorate theorganization as a whole and creates customer satisfaction. Ultimately, it leads to enhanced job satisfaction and motivation forgrowth among our employees. By putting this engagement improvement cycle into motion, we strive to maximize the value of ourhuman capital.
This engagement improvement cycle comprises three elements: employee job satisfaction, the development of skilled personnel,
and customer satisfaction. Of these elements, in 2022 we sought to visualize the gap between our current situation regarding
employee job satisfaction and the development of skilled personnel and our ideal vision for these elements. In 2023, we implemented measures to bridge this gap and also worked to create indicators in order to engage in more concrete efforts toward customer satisfaction. In 2024, we will quantitatively visualize the connections between each element and their impact, while also
accelerating efforts to achieve our Purpose through a virtuous cycle, thereby enhancing corporate value.
Four committees are working together to promote initiatives geared toward achieving an engagement improvement cycle.
These committees are the Sustainability Promotion Committee, which promotes the sustainability management of the Group; theBrand Strategy Committee, which oversees efforts to maintain and improve brand value; the Quality Improvement Committee,
which implements continuous efforts to improve quality, and the Human Resources Strategy Committee, which promotes initiatives to maximize the value of our human capital. Through the close exchange of opinions and the promotion of collaborative
initiatives, the committees are working to integrate the Companyʼs management and human resources strategies by creating
frameworks and environments that lead to results.

31

Canon Marketing Japan Inc. | Integrated Report 2023

Personnel structureTime• Development of specialist personnel• Acquisition of external personnel• Leadership training• Programs that support growth and taking on challenges

2

Further Improvement in Productivity• Acquisition of rank-specific business skills• Enhancement of digital skills

In order to achieve the Medium-Term Management Plan
(2022-2025), we defined the positions and skill requirements
deemed significant in achieving our business strategy, andcategorized them into levels 1 to 5. We identified the gap
between the number of employees required for each skill

Medium-Term
Management
Plan

Gap

Acquisition and Development of Specialist Personnel toAchieve Our Business Strategy

Defining the Positions and Skill Requirements Deemed
Significant in Achieving Our Business Strategy

Defining thepositions andskill requirements
deemed significant
in achieving ourbusiness strategy

Business growth

Development ofskilled personnel

The “Three Selfs” Spirit

As a result of the decline in Japanʼs labor force, we expect the number ofGroup employees to decrease due to natural attrition. In order to increase
the value we provide with a smaller workforce than we currently have,thereby bridging the gap between business growth and workforce decline,
we are working to develop skilled personnel on two fronts. The first initiative
involves acquiring and developing specialist personnel to achieve our business strategy, while the second consists of improving the skills of employees across the entire Group in order to achieve even higher productivity.

Development ofSkilled Personnel

Code of Conduct

Two-pronged Approach to Developing Skilled Personnel

Medium-Term
Management Plan

The Canon MJ Group carries out its daily business in accordance with the five guiding principles of the Canon Code of Conduct
passed down since its founding so that each employee will find their job rewarding and live with good health and wealth.

Identifying
the gap andformulating
measures tobridge itlevel in 2025, the final year of the Medium-Term Management
Plan (2022-2025), and the current number of employees.
Based on this, we have been formulating and executing measures aimed at closing this gap, dividing them into measures
to be carried out across the entire Group and those to be
implemented by each division.

Implementing
Groupwidemeasures anddivisional
measures

Confirming
progress with
KPIs andupdating targets

Canon Marketing Japan Inc. | Integrated Report 2023

32

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Human Resources Strategy

1Acquisition and Development of Specialist Personnel to Achieve Our Business Strategy
Development of Specialist Personnel

In developing specialists for each position, we divided skills
into specialized skills for specific business and transferrable
skills that work across multiple businesses. As skills related
to the IT solutions business fall under both categories, going
forward we will link them with the Groupʼs positions, visualize

the number of personnel we aim to cultivate for these positions, and provide training to improve their skills in accordance with the Digital Skill Standards*.
*Digital Skill Standards: Definition of the skills required in the digital age, announced
by the Ministry of Economy, Trade and Industry (METI) andthe Information-technology Promotion Agency (IPA) in 2022

Initiative 1
Development of Highly Skilled Human Resources at Canon IT Solutions
Canon IT Solutions Inc. is promoting a business co-creation model and the service provision model to realize its
goal of becoming a co-creating company as stated in its VISION 2025. To that end, the company is working todevelop the human capital that holds the key to these models, namely consultants, and personnel who can create
service concepts.
Co-creation School: Business Co-creation Course

Co-creation School: Service Creation Course

The Business Co-creation Course involves a sixmonth curriculum that refines the issue identification capabilities of personnel who will promote
the business co-creation model. It also enables
such personnel to accumulate actual experiencethrough hands-on projects. By doing so, thiscourse supports the growth of human resources
who possess advanced knowledge and skills.

The Service Creation Course offers a curriculum
centered on the Graduate School of Project
Design, helping to strengthen the new service
creation capabilities of personnel who will promote the service provision model, thereby supporting their growth.

Acquisition of External Personnel
In our recruiting activities, we are actively conducting mid-career recruitment in addition to the regular hiring of newcollege graduates. Our particular focus has been on humanresources that will drive the IT solutions business and as aresult, personnel with diverse backgrounds are playing anactive role by breathing new life into our operations.
The R&B Promotion Center, which was newly established in
January 2024, gathers innovative personnel discovered andcultivated within the company, and also welcomes experienced personnel from outside the company as leaders.
Going forward, we plan to continue recruiting professionals
in new fields that will take on challenges in various fields aswell as within the R&B Promotion Center.

Development of Innovative Personnel and Business Development Accelerators toward Creation of New Value
Discovery and Development of Innovative Personnel

Training of Business Development Accelerators

In order to create new value, we have identified
the skills and mindset needed for innovation,
and are working to discover and develop innovative personnel.
In 2023, we implemented e-learning in which
all Canon MJ Group employees were taught
basic knowledge on design thinking followed
by a design thinking test to visualize their innovation skills. We will encourage employees tounderstand their own strengths and characteristics and connect this to further skill improvement, as well as provide opportunities for highly
skilled personnel to play an active role in theGroup.
In addition, we are working to develop
employeesʼ skills and mindset by conducting
various in-house workshops that utilize art
thinking and design thinking, as well as external
programs that enable cross-industry exchanges.

We are internally training business development
accelerators who own the knowledge to create
solutions from scratch.
Business development accelerators provide
support for the in-house entrepreneurship program, co-creation projects with other companies, and other initiatives in order to accelerate
the Groupʼs business development and increase
the probability of success.
They are able to get involved in a wide rangeof projects such as providing startup support asa capitalist for the venture capital in which wehave invested, both inside and outside of thecompany and refine their skills.

(Number of people)
New graduates
Mid-career hires

214

189

197

63

52

51
2021

2022

2023

Leadership Training
Based on the “Three Selfs” spirit that constitutes the Canon
Code of Conduct, the Canon MJ Group provides training
to support the demonstration of leadership from younger employees through to managers. In the current VUCA
(Volatility, Uncertainty, Complexity, and Ambiguity) era, we
encourage the concept of shared leadership, in which each
person thinks autonomously, involves others, and takes action.
Accordingly, we are working to foster self-motivation andself-awareness, part of the Three Selfs spirit.

Development of Managerial Personnel

Initiative 2

Recruitment Results of IT Solutions Personnel

The next generation of managerial personnel is determinedby the Nomination and Remuneration Committee, which ischaired by the president and comprises both inside and outside directors. The development of the potential candidates
is deliberated by the Human Resources Strategy Committee.
These processes are followed by examining the specifics suchas the appointment of candidates for important positions
and participation in selection training, forming the long-term
framework for developing managerial personnel.
We have held Quorum 12 since 2014, a training session
for select personnel in the general manager class. While theparticipants are expected to enhance their management skills
through such sessions, incorporating a liberal arts curriculum
into such training also enables them to enhance their people
skills, refine the understanding and sensitivities of managerial
candidates, and develop flexible ways of thinking.

Furthermore, we have held Quorum15 since 2019, a set of
lectures targeting select managers, in order to swiftly cultivate leadership personnel. These managers have also been
engaging in training through contests between businessschools and field work pertaining to regional revitalization,
among other activities. Upon completing either Quorum 12
or Quorum 15, participants are assigned to positions in which
they have no previous experience, thereby helping themdevelop into diverse personnel with broad ranges of insight.
In this way, Quorum 12 and Quorum 15 function as effective
frameworks for the development of the next generation ofmanagerial personnel.

System for Developing Next-Generation Managerial Personnel
Board of Directors
Nomination and Remuneration Committee
Management Committee
Human Resources Strategy Committee

Quorum12

Quorum15

Programs that support growth and taking on challenges
Career Development Support Program
In addition to regular career interviews between employees
and their supervisors, we help employees to think independently about their career through career consultation sessions with full-time career consultants (nationally certified)and career seminars specific to employee rank and age group.
It supports their proactive engagement in duties aimed atachieving their career goals.

In-House Recruiting Program and FA System

program encourages employees to take on new positions andseeks to stimulate their career aspirations. JOBS is a programthat allows employees to transfer across departments andcorporations and to put themselves up for new positions.
We also began operating the company FA (Free Agent)system in 2023, which provides employees with the opportunity to take on challenges of their own will. FA is a system inwhich employees have the right to indicate their intentions
with respect to their career and the type of job they wish totake on.

We support career development through an in-house recruiting program, JOBS (Job Opening Bulletin System). This

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34

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Human Resources Strategy

2

An Overall Picture of Our Employee Development and Career Support Measures Backing theDevelopment of Skilled Personnel

Further Improvement of Productivity
Acquisition of Rank-Specific Business Skills

Employees are able to gain the basic business skills required
for each rank at the time of promotion through systematic
rank-specific training, and consolidate these skills throughon-the-job training. Based on the Katz model*, we aim tohave employees hone conceptual, technical, and human skills.

In addition to rank-specific training, we also provide opportunities for voluntary learning to support the improvementof business skills used day-to-day through a variety of programs, such as self-selected distance education and externalseminars.

*A theory proposed by management scholar Robert L. Katz that categorizes and articulates the skills required for management by hierarchy and skill level

Enhancing Digital Skills
With the aim of acquiring basic digital skills and improving
operational efficiency, we had all employees complete data
literacy e-learning courses in 2022, and take DX certification
and DX business certification exams in 2023. By exposing
employees to the latest examples of DX, we aim to not only
improve productivity, but also broaden the conversations
they can have with customers and business partners, thereby leading to the creation of new ideas. We will continue to
conduct the DX certification and DX business certification
exams twice a year to provide an environment in which we
can update employees on the latest information.

In addition, each year over 1,000 employees work hard to
improve their skills through Aidemy Business, an e-learning
platform specialized in AI, to learn basic knowledge andcarry out Python training. In particular, hands-on lectures by
in-house data scientists and on-the-job support are available
to employees who work with data as partof their job, and they are putting in theeffort to apply and enhance their skills inpractice. We aim to improve operational
efficiency by utilizing various data accumulated in-house.

The Canon MJ Group coordinates its human resources development efforts with career support measures in order toeffectively develop specialist personnel and further improve
productivity. In terms of human resources development, we
provide rank-specific training to support transitions to second-year employees, fifth-year employees, and managerial
positions, as well as training for all employees to acquire

Development Measures
Groupwide

We began implementation of DX certification and DX
business certification programs for all Group employees
in 2022, and 5,742 employees received certification by
the end of 2023, of which 608 received professional
level certification with a score of 800 points or higher.

This time, three Group companies simultaneously received the Corporate Excellence Award andExcellence Award (for individuals) in the IFSJ Innovation
Awards in the DX Certification™ Series sponsored by
the Innovation Fusion Society of Japan.

By rankBy age group

Quorum12(Selection training fornext-generation managerial
personnel)

Creative life seminar II(57 years of age)Groupwide

Creative life seminar I(52 years of age)

Data analyst development

Quorum15(Selection training fornext-generation managerial
personnel)

Career design seminar IV &individual meetings(40 years of age)

Digital marketing training

Training for new line managers

Career training (subordinate
support) & individual meetings

Digital skills

DX certification
Assistant manager training

Aidemy Business
Data literacy training

Empowerment Program(Empowerment of women)

Business skills

Training for new Level 4 employees(chiefs)

Design thinking test
TOEIC test

Training for new Level 3 employees

Self-selected distanceeducation

Career design seminar III &individual meetings(35 years of age [planned])

Fifth-year employee training

Career design seminar II &individual meetings(27 years of age)

Second-year employee training

Career design seminar I &individual meetings(24 years of age)Award Overview Corporate Excellence Award: Given to companies with the highest number of certified
employees in the DX Certification Series
Excellence Award (for individuals): Given to individuals who have achieved excellent scores(the top three) in the DX Certification Series

Career Support Measures

Training for new general managers

DX business certification

Three Canon MJ Group Companies Simultaneously Received the “Corporate Excellence Award” andthe “Excellence Award” in the “DX Certification™” Series

digital and business skills. With regard to career support
measures, in addition to career seminars specific to employee
rank and age group, as groupwide measures, we help employees independently realize their ideal careers through regularcareer interviews between employees and their supervisorsand career consultation sessions with full-time career consultants (nationally certified).

Workplace/Manager

Careerinterviews
betweenemployees
and their
supervisors(once ayear)

Careerconsultants

Post-event
interview(3 months
later)
Careerconsultation
sessions(available asneeded)New employee training

Award Details

Canon MJ (DX Business Certification)
Corporate Excellence Award: Had the highest number of employees
certified at the professional level
Excellence Award (for individuals): One of its employeesʼ score camewithin the top three highest scores
Canon S&S (DX Business Certification)
Corporate Excellence Award: Had the highest number of employees
certified at Professional or Expert level
Excellence Award (for individuals): One of its employeesʼ score camewithin the top three highest scores
Canon IT Solutions (DX Certification)
Corporate Excellence Award: Had the highest number of employees
certified at Professional, Expert, orStandard level
Excellence Award (for individuals): One of its employeesʼ score camewithin the top three highest scores

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36

The Canon MJ Groupʼs Value Creation

Overall Strategy

Business Strategy

Functional Strategy

Human Resources Strategy

Engagement Improvement Cycle “Employee Job Satisfaction”

Workstyle Reform Promotion

We are working to use engagement scores as an indicator and create a comfortable working environment to improve employee
job satisfaction, part of the engagement improvement cycle.
Increase in value provided

Developmentof skilled
personnel

Customersatisfaction

Rewarding sense of contribution

Engagement improvement cycle

Employeejob
satisfaction

Motivation for growth

We are promoting workstyle reform through three task
forces: Workplace, Workstyle, and Work Processes.
Our diverse range of workplaces and workstyles
in which employees can independently choose when
and where they work, such as telework and staggered
working hours, contribute to the achievement of job
satisfaction and productivity improvement.
We also aim to increase the added value of employeesʼ day-to-day work through the visualization of work
process productivity.

Transform the awareness, knowledge, and actionsof each and every person

Workplace ・Link new work practices and business site strategies
・Create a mechanism for bringing about atransformation in the internal culture
・Build a diverse workplace

Realizing new work practices that generate added
value

Work
processes ・Visualize productivity and implement measures
・Transform shared services
・Reassess work processes

Shift to flexible work practices that are notlimited by time or location

Work style

Engagement Scores Improved Two Years in a Row
Group Employee Engagement Survey
・ Implemented engagement survey targeting Canon MJ Group
employees
・ Four options available to answer survey questions: “agree,”“somewhat agree,” “somewhat disagree,” and “disagree,” withpoints assigned to each answer for a total possible score of 1,000

678

686

706

Examples of Various Measures for Workplaces, Workstyles, and Work Processes
The Canon MJ office offers many meeting spaces as places
for co-creation, while our satellite offices provides a wide
variety of work environments suitable for intensive work. In
order to realize location-independence, we are abolishing
fixed-line telephones and expanding online meeting tools.
The hybrid workstyle of combining in-office work andtelework has led to enhanced business continuity and the

reduction of travel time and costs, among other benefits.
In order to revitalize communication in hybrid work, we arepromoting the use of internal social networking sites (SNS)where all Group employees can participate to share knowhow and recent topics, location monitoring tools that show
who is where, and one-on-one communication between
supervisors and their subordinates.

2022

2023

2025

Dubbed the Engagement Caravan, we conduct dialogue between
the Group Employee Engagement Survey Secretariat and eachbusiness division.
Through these activities, we exchange opinions on employee
satisfaction and growth based on the results of the employee
engagement surveys carried out in each organization, clarify
organizational issues according to job characteristics and theoperating environment, and bring together initiatives to support
effective growth. We aim to increase job satisfaction in each organization by instilling the best practices we have learned throughout the Group.

Initiative 2Management and Career Support Utilizing Personality and Value Diagnosis
using this to communicate better with them improvetheir relationship and help with managing thesesubordinates.
We also intend for employees themselves to recognize their personality traits, strengths, and weaknesses, and use them to gain a clear career vision, thereby
improving employee satisfaction and improving theoverall performance of the organization.

Our free-address office where employees can choose the environment thatbest suits their day-to-day work

A co-creation desk that realizes communication between employees working
in-office and remotely

Revitalizing Communication withTools that Support Hybrid Work
Employees upload posts on various
themes, such as sharing knowledge andknow-how, introducing products andservices, holding events, and spreading
information on the initiatives of theirdepartment.

Our satellite office shared among
Group companies

Solo workspaces
prepared by individual
employees including
their home

Fostering Internal Job Satisfaction by Realizing External Job Satisfaction
We help employees achieve better work (= enjoyment) in the three areas of colleagues, spaces, and time (external job satisfaction), and foster the three sensesof solidarity, contribution, and achievement (internal job satisfaction) that can begained from these efforts, thereby leading to improved job satisfaction.

Improving Employee Job Satisfaction to Create
an Engagement Improvement Cycle
Canon MJ Group Style of Job Satisfaction
Three areas
Three senses(external satisfaction)
Having good colleagues and acomfortable space to spend agood time leads to good work

Colleagues

Good work＝

2021

Dialogue with Employees through “Engagement Caravan” Activities

Canon Marketing Japan Inc. | Integrated Report 2023

to build

Hybrid Work Across Various Workplaces

Initiative 1

37

・Pursue the organizational community that we wish
・Make communication more active in all directions
・Build systems for supporting telework

We have been carrying out an annual engagement survey of Group
employees to evaluate the progress we are making toward employee
job satisfaction since 2021. The survey is conducted in a four-choice
format, with points assigned to each answer for a total possible
score of 1000. Our goal is to have all 20 key questions answered withaffirmative responses (667 points or more). In fiscal 2023, the scoreincreased for the second consecutive year, with 15 of the 20 questions answered with affirmative responses (compared to 12 in fiscal
2022). We will continue to carry out this survey, analyze employee
responses, identify issues and implement countermeasures, and aim
for further improvement.
In fiscal 2023, in addition to the existing questions, we added
questions related to growth to analyze the relationship between
employeesʼ desire for growth and their behavior. This will enable us
to better understand employeesʼ awareness and desire for growth,which will help us to implement specific measures to increase theirjob satisfaction.

In recent years, the number of employees withdiverse values and work perspectives has increased,
resulting in changes in the way we communicate. In
order to respond to such a new environment, we conduct surveys of all Group employees on their personalities, preferences, and work philosophy, and provide
feedback to them and their superiors.
Superiors understanding the characteristics of theirsubordinates and the source of their motivation, andShift to highly
productive
workstyles inwhich each
employee canperform to theirfull potential
and play anactive role

Time

Space

enjoyment

Use of staggered shifts
Visualization of productivity

Sense ofsolidarity

The feeling of wanting to do something with colleagues
who share the same feelings⇒ Becomes a source of communication and cooperation

Sense of The feeling of wanting to help someone (something)
contribution ⇒ Fulfilled through expectations, empathy, gratitude, etc.
Sense of Gained from the results (evaluation) of work and growthaccomplish- ⇒ Fulfilled more strongly by sharing with othersmentWorkplace reforms

Promotion of hybrid workTime(internal satisfaction)
Good emotions from good work lead tojob satisfaction

Space

Satellite office strategy
Shifting to mobile sites

Location monitoring tools

Colleagues

Revitalizing communication
through Connect
Deepening mutual understanding
through 1-on-1 meetings andon-the-job training

Canon Marketing Japan Inc. | Integrated Report 2023

38

The Canon MJ Groupʼs Corporate GovernanceRoundtable Discussion between Outside Directorsthat the formulation of the Purpose that clearly points
us to the direction we should aim for is very meaningful.
Kawamoto: With regard to the key topic of M&As, we mademajor moves to acquire Tokyo Nissan Computer Systems(currently TCS) last year and Primagest this year. While timing
and speediness are especially important when it comes to
M&As, the Board of Directors also checks other factors suchas appropriateness of M&A deals.
I must add that M&As are more about the post-acquisition
process than the acquisition itself. It is important to examine
whether it is really going well, and if it is not, why not. I think
this is a major responsibility for us.

Osawa: We are a cash-rich company, and have received
requests for more dividends from our shareholders. However,
we have kept our dividend payout policy as it is based on apayout ratio of 30%, because cash is necessary for capital
expenditure for facilities such as data centers, and carryingout M&As. Since I became a director six years ago, however,
unfortunately Canon MJ had not been able to seize opportunities for growth investment through M&As.
We stood by our stance and kept insisting, and finally aseries of growth investment projects are coming to fruition
through M&As. I think this is a result of tireless efforts on the
management teamʼs part thus far, as well as the shift toward
thinking more seriously about cash allocation.

“It is during a time of strong
Outside Director

Outside Director

Outside Director

performance like now that we should be

Toshiharu Hasebe

Yoshio Osawa

Hiroko Kawamoto

making efforts to improve the quality ofmanagement from multiple angles.
ROE of 9% or so is not enough.” (Osawa)

Toward the Realization of More Sophisticated Management
Outside Directors Yoshio Osawa, Toshiharu Hasebe, and Hiroko Kawamotosat down to discuss the current state of the Canon MJ Groupʼs management, governance, and the significance of the newly established Purpose.

Taking Swift Steps toward the Next Stage of Growth
Osawa: Canon MJʼs current business performance is extremely favorable, and the Medium-Term Management Plan (20222025) is also progressing smoothly. Although there are issues
such as cash allocation that need to be addressed, we havemostly been able to implement the measures we have set
forth to achieve our targets, which are beginning to pay off.
The quality of management is steadily improving. The factthat we were able to increase our consolidated payout ratio
target from 30% to 40% or more is the evidence of this.
However, it is during a time of strong performance like now
that we should be making efforts to improve the quality ofmanagement even further. Canon MJʼs ROE currently stands
at around 9%, but if we aim even higher to become an excellent company, anything below the 10% mark is not enough.
In addition to improving labor productivity, we also need tofurther enhance the skills, awareness, and job satisfaction of
our employees. Improvement in ROE should follow as a result.

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Canon Marketing Japan Inc. | Integrated Report 2023

Hasebe: “Expand the stock business by establishing a service-type business model ” is one of the targets set out
in the Medium-Term Management Plan (2022-2025), andis an extremely important task for the Company ʼs future.
I place particular importance on speediness in achieving
this target. While this has improved considerably since I
was appointed as a director three years ago, in todayʼ sturbulent society, there are times when I feel that we arestill not fast enough. We have to constantly question ourselves whether our current pace is really fast enough. Also,
it is because we are performing well right now that weshould step away from our current success model and takeon new challenges geared toward medium- to long-term
growth. We should not be content with success alone. The
management team together with the employees and partner companies need to move on to the next step with aneye to the next five and ten years. In this sense, I believe

Governance is Functioning Properly, Including Our Relationship with
Parent Company Canon
Osawa: The Board of Directors engages in quite lively discussions, and the Nomination and Remuneration Committee andAudit & Supervisory Board also ensure fairly rigorous management. I believe that our governance is functioning properly. That being said, we recently established an additional
committee, the Special Committee. As an advisory body to
the Board of Directors, the committee is composed of independent outside directors, and deliberates over matters suchas the risk of conflicts of interest occurring with Canon, thecontrolling shareholder, and ensuring transparency when
conducting transactions, and delivers reports to the Board of
Directors. Protecting the interests of minority shareholders
is an important issue in corporate governance for a listed

subsidiary of Canon, and we have been paying close attention to this. With the establishment of this new committee,
we have reemphasized this importance.
Hasebe: Rather than having a parent-subsidiary relationship,
I feel that Canon MJ and Canon are on equal footing, akin to
the relationship between manufacturing and sales divisions.
Considering current technology represented by AI, business
opportunities are expanding in various fields such as video
imaging, healthcare, and office. Canon brand and its technologies are invaluable in these areas, and leveraging themshould enable us to create even more value and contributeto society.

Canon Marketing Japan Inc. | Integrated Report 2023

40

The Canon MJ Groupʼs Corporate GovernanceRoundtable Discussion between Outside Directors
However, given the fact that we are a parent-subsidiary listing, we must give full consideration to the interests of minority shareholders. I believe that maintaining an appropriate
distance from Canon is an important role as an outside director, through daily exchanges of opinions and discussions withsenior management as well as within the Special Committee.
At the same time, I feel that we need to spread more detailed
information on the specific initiatives we are implementing toaddress conflicts of interest. There is still room for improvement in this area.
Kawamoto: I think there is still room for improvement in communication with investors. Rather than reacting after receiving an inquiry, I want Canon MJ to be more proactive andtake the initiative in providing information. It is not a goodlook if we appear to be doing something because we havebeen told to. I am concerned that it may be perceived as aweakness in our ability to communicate.

Last fall, I participated for the first time in the Canon EXPO,
held for the first time in eight years. The experience reaffirmed to me that Canon is a truly global company. As a member of a group that provides incredible value on a global scale,
I would like Canon MJ to make an even bigger impact on
Japanese society by creating value using these technologies.
Osawa: While the IT solutions business accounts for nearly
half of the Groupʼs total net sales, the greatest advantage it
provides is the ability to deliver total solutions while leveraging the strengths of Canon products. Canon MJ has also benefited greatly from the Canon brand and its trustworthiness,
which I am sure has also provided a considerable advantage
in recruiting activities. Turning to the existence of conflicts ofinterest and the enhancement of transparency, I believe that
we have no choice but to send out as much information as
possible to the outside world.

“A welcoming, family-like corporate

culture could become a weakness.
I intend to keep asking ʻhigh-quality

Hasebe: In order to transform our business model, we needto consider how to coordinate advanced, cutting-edge businesses with existing businesses. If we rush forward withnothing but unconventional ideas, it tends to create dissonance and tension with those involved in existing businesses
that actually generate sizable earnings. If this happens, wewill not be able to leverage our brand, customer base, ormarketing power in our existing business fields in the development of new businesses. However, I believe that presenting
and having our Purpose resonate with people will help clarify
the direction the entire Group is aiming for, create a sense ofunity, and ultimately enable us to utilize our competitive edge
in existing business fields to develop new businesses. In thissense, our Purpose plays an important role.

The Role of Outside Directors
Osawa: I think it is wonderful that on top of our long history,
we have a large, family-like corporate culture that warmly
welcomes new businesses and personnel into our Group. The
IT solutions business, which currently accounts for 40% of
total net sales, is also the result of past large-scale M&A. In
addition to my primary role as an independent outside director, I believe it is also important to provide advice on mattersthat warrant consideration and preparation with an eye tofive or ten years down the line, while fully understanding
and giving consideration to this corporate culture. Also, amid
the steady decrease in Japanʼs labor force, I think that, in
addition to improving productivity, we also need to tackle
the issue of promoting the active participation of women andexploring the employment of non-Japanese people.
Hasebe: As I touched upon earlier, we need to carefully monitor whether we are carrying out reforms at a sufficient pace.
Also, with Canon MJ coming under the constant scrutiny ofshareholders and the outside world as a parent-subsidiarylisting, I think ensuring that Canon and Canon MJ engage
in business with each other in a fair and transparent manner,and that information is disclosed to show that governanceis functioning properly, is also our responsibility as outside
directors. We need to make sure we fulfill this role.
Kawamoto: I also think that the Canon MJ Group is a family-like and welcoming company. This is both our strength andour appeal, but it could also become our weakness. As such,
I try to objectively express my opinion from an independent
standpoint, while also taking care that discussions do not
become inward-facing or centered on our own internal logic. I
intend to ask critical, high-quality questions, such as confirming the basis for decision-making and the processes behind
discussions on business execution. I believe that continuingsuch dialogue will enhance the transparency and soundness ofthe entire organization, thereby leading to sustainable growth.

questionsʼ to check whether our logic
is inward-looking.” (Kawamoto)“In order to transform our businessmodel, fostering a sense of unity
throughout the company is a major task.
Defining our Purpose that points us to
Formulation of the Purpose is of Great Significance for Medium- to Long-term Growth
Kawamoto: The Canon MJ Group recently established its
Purpose of “Bringing together hopes and ideas with technologies to create a future beyond imagining.” When taking
on the challenge of a new business, having a purpose serves
as the basis as to why we are working with this company orgroup and the axis on which to go back to basics. If a senseof unity is fostered based on the view that we are working inaccordance with this Purpose, this should generate synergies
and have great significance over the medium to long term.

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Canon Marketing Japan Inc. | Integrated Report 2023

Osawa: As Canon MJ is a company with a long history, it has
an excellent management philosophy and Code of Conduct.
The Purpose, however, was established from the realizationthat it was necessary to explicitly state the significance ofthe companyʼs unique presence in society. We spent about
two years discussing in-house, raising awareness throughout
the Group and carefully crafting it. It is more than just a slogan. It directly affects the motivation of employees in their
daily lives and work, so it is directly linked to our management philosophy.

the direction we are aiming for holds
great significance.” (Hasebe)

Canon Marketing Japan Inc. | Integrated Report 2023

42

The Canon MJ Groupʼs Corporate GovernanceCorporate GovernancePrincipal Meeting Bodies

Basic Stance on Corporate GovernanceWe recognize that sustainable growth in corporate value
requires ongoing improvement in such areas as managementtransparency and the monitoring of progress toward management targets. This is reflected in our wide-ranging initiatives to strengthen corporate governance.

Organizational Format

Company with Audit & Supervisory Board

Use of Executive Officer System

Yes

Board ofDirectors
Members:
7 in total
Term of office:1 yearCorporate Governance Structure (As of March 29, 2024)
General Meeting of Shareholders

Inquiry

7 Directors(President &Representative Director)

Audit & Supervisory Board

Nomination andRemuneration Committee

5 Audit & Supervisory Board
Members

Management Committee

Cooperation
Cooperation

Disclosure Committee
Internal Controls Evaluation Committee
Risk and Crisis Management Committee

Cooperation

Accounting
Audit

Internal Auditors Office

ReportSustainability Promotion
Committee

Monitoring

Special Committee

ReportAppointment/Dismissal

Cooperation

Internal Audit

Business Units/Group Companies

Independent Auditor

Board of Directors

Appointment/Dismissal

AdviceAdministrative Divisions

Lawyers/
Licensed Tax Accountants

Appointment/Dismissal

Audit &
Supervisory
Board
Members:
5 in total
Term of office:4 years

Nomination andRemuneration
Committee
Members:
5 in total

Ratio of Outside
Directors

The Company maintains a structure in which the representative director oversees Companywide business strategies
and execution while supervision of business domains and headquarters functions is primarily carried out by executive
directors. There are three or more independent outside directors to ensure sound business management. In accordancewith laws and ordinances, the Board of Directors monitors the making and implementation of important decisions. Other
decisions are handled by the representative director or under their direction and supervision by executive officers whom
the Board of Directors appoints through its resolutions to assume responsibility for making and implementing decisions forbusiness domains and headquarters functions.

Meetings heldin fiscal 2023

In fiscal 2023, the Board of Directors deliberated on investments for the Group ʼs sustainable growth (M&A,
the establishment of a corporate venture capital fund, etc.), sustainability management, rationale for strategic
shareholdings, and the establishment of the Group Purpose.

43%

13 times

Ratio of Outside
Audit & Supervisory
The Audit & Supervisory Board functions independently of the Board of Directors and comprises individuals
Board Members
who are familiar with the Companyʼs business or corporate management and who have accounting or other%expertise. At least two outside Audit & Supervisory Board members are persons who satisfy the independence
standards and qualifications separately prescribed by the Board of Directors. The Audit & Supervisory Board
cooperates with the accounting auditors and the internal audit division of the Company to audit the execution
Meetings heldof duties by directors and the status of assets of the Company to ensure sound business management.
in fiscal 2023

60

16 times

Ratio of Outside
Directors

60%

The Company maintains a voluntary five-person Nomination and Remuneration Committee comprising thepresident & representative director, one director, and three independent outside directors. This Committee
deliberates on the nomination of candidates for director, Audit & Supervisory Board member, and vicepresident positions, as well as considering the appropriateness of the remuneration system for directors andexecutive officers who are vice presidents or above, and reports to the Board of Directors.
In fiscal 2023, the Nomination and Remuneration Committee deliberated on the fairness of the nomination of new
candidates for the Audit & Supervisory Board and vice presidents.
InsideOutsideHolding of the Executive Officer Meeting attended by all directors, Audit & Supervisory Board members, and executive officers
The Executive Officer Meeting is held twice a year as a venue for intensive discussions on issues related to the transformation over the medium to longterm or on urgent management topics and is attended by all directors, Audit & Supervisory Board members, and executive officers. The meetings areheld at an off-site location over one and a half days to provide an opportunity to foster communication between officers. Sometimes study meetings
are held in which lecturers, with expertise matching the meeting theme, are invited from outside the Company. In 2023, the meetings resulted in lively
discussions on the growth of the IT solutions business, our human resources and investment strategies, and other areas of operations.

Status and Skills Matrix of Directors
Skills Matrix
Time in OfficeAttendance at Board of Directorsʼ
Meetings in Fiscal 2023

Corporate
Management

Sales & Marketing●

Masachika Adachi

President & Representative Director

9 years★
100% (13/13)●

Minoru Mizoguchi

Director & Senior Vice President

3 years

100% (13/13)●

Hatsumi Hirukawa

Director & Senior Vice President

4 years

100% (13/13)●

Tsuyoshi Osato

Director & Vice President

2 years

100% (13/13)●

Finance &Accounting

Human Resources●●

Legal Affairs &Risk Management

IT Solutions & DX

●

●

●
●

●

●

Yoshio Osawa

Outside Independent

Director

6 years

100% (13/13)

●

●

●

Toshiharu Hasebe

Outside Independent

Director

2 years

100% (13/13)

●

●

●

Hiroko Kawamoto

Outside Independent

Director

1 year

100% (10/10)

●

●

●

★ Chairperson
Note: Attendance at the Board of Directorsʼ meetings for Hiroko Kawamoto is for meetings held after they were elected as directors at the 55th Ordinary General Meetingof Shareholders convened on March 29, 2023.

43

Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

44

The Canon MJ Groupʼs Corporate GovernanceCorporate GovernanceAppointment and Nomination ProceduresInternal Audit
The Internal Auditors Office is established as an independent organization dedicated to performing audits of theCompany and operating under the direct supervision of
the President of the Company. The Internal Auditors Officeproduces internal audit policies for Canon MJ and its subsidiaries, conducts audits and assessments and advises
on all business activities from the perspectives of thecredibility of financial reports, the validity and efficiency

of operations, legal compliance, and the conservation ofassets.
The results of audits are reported regularly to the
President, other directors, and the Audit & Supervisory
Board. The auditors of Canon IT Solutions Inc. and Canon
System & Support Inc. conduct assessments based on
the same policies. The Canon MJ Group has 60 audit staff
members.

Outside Directors and Outside Audit & Supervisory Board Members
Canon MJ has three outside directors and three outside
Audit & Supervisory Board members. Pursuant to the consent of all Audit & Supervisory Board members and theapproval of the Board of Directors, we implemented our
Independence Standards for Independent Directors/Audit
and Supervisory Board Members in order to clarify the standards for ensuring the independence of outside directors
and outside Audit & Supervisory Board members in keepingwith Japanʼs Corporate Governance Code and the independence criteria set by securities exchanges in Japan.
Our outside directors and outside Audit & Supervisory
Board members satisfy the independence criteria and help
maintain and improve the transparency and accountability of
the Board of Directors.

The Company does not have dedicated organizations
or employees to assist outside directors or outside Audit& Supervisory Board members in their duties. Executive
directors and other officials provide outside directors withprior explanations of Board of Directorsʼ meeting agendas
as needed. Internal auditors, executive directors in chargeof operations, and other officials provide outside Audit &Supervisory Board members with prior explanations of Boardof Directorsʼ meeting agendas as needed. Outside Audit& Supervisory Board members attend Audit & Supervisory
Board meetings, as well as liaison meetings conducted asneeded, to exchange information on important matters andaudit details among Audit & Supervisory Board members.

Analysis and Evaluation of Effectiveness of the Board of Directors
We conducted a questionnaire for directors and Audit &Supervisory Board members and analyzed and evaluated theeffectiveness of the Board of Directors.
The assessment criteria in fiscal 2023 were (1) deliberations of the Board of Directors, (2) the composition of theBoard of Directors, (3) succession planning, and (4) the sufficiency or process of discussions.
The results of the questionnaire confirmed the overall
effectiveness of the Board of Directors.
Going forward, we will strive to ensure and improve theeffectiveness of the Board of Directors even further bycontinuing to enhance discussions on matters to be considered by the Board of Directors as well as its composition,
management training, and other matters. In this way, we
will improve the decision-making function of the Board of
Directors by incorporating the opinions of directors andAudit & Supervisory Board members obtained through thequestionnaire into the operation of the Board of Directors,
thereby achieving sustainable growth and increasing corporate value over the medium to long term.

internal and external training sessions at the Companyʼs
expense after taking office. Furthermore, we provide outside
directors and outside members of the Audit & Supervisory
Board with opportunities to attend business report meetingsand other meetings to help them attain a deeper understanding of our business.

Adopts executive officer system

2014

Appoints one outside director

2016

Increases number of outside directors to two
Establishes standards for independent outside directors
Complies with the principles of Japan ʼ s Corporate
Governance Code

2018

45

Establishes Nomination and Remuneration Committee

Canon Marketing Japan Inc. | Integrated Report 2023

Directors and Audit & Supervisory Board members can ask
the Nomination and Remuneration Committee to deliberateon whether the dismissal of a representative director, executive director, or executive officer who is a vice president orabove (collectively, “management team executives”) is necessary if they have committed illegal, unfair, or treasonous
acts; if they have failed to fulfill their roles; or if they haveotherwise proven themselves unfit as management teamexecutives.
All results of Nomination and Remuneration Committee
deliberations shall be submitted to the Board of Directors,
regardless of the outcome of Board of Directors ʼ deliberations on the necessity of dismissal. The management
team executives subject to deliberations cannot join in
discussions.

Remuneration for Senior Executives and Directors
Policies and Procedures for Determining Remuneration

Composition of Remuneration

The Nomination and Remuneration Committee verifies theappropriateness of the remuneration system for directors
and executive officers who are vice presidents or above,
including the standards for calculating basic remuneration
and bonuses and the criteria for granting stock compensation-type stock options. The amount of individual remuneration is determined in line with the remuneration structure,of which basic calculation approaches were resolved atmeetings of the Board of Directors and have been verified
by the Nomination and Remuneration Committee. The totalof basic remuneration and stock compensation-type stock
options for directors must be less than the maximum total
remuneration approved at general meetings of shareholders.
Bonuses, however, are determined when proposals for them
are approved at ordinary general meetings of shareholders.

Remuneration for the representative director and directors
consists of basic remuneration, which is a fixed basic monthly fee for executing their roles and duties; a bonus linked toperformance in the fiscal year; and stock compensation-type
stock options as incentives to promote improvements inmedium- to long-term business performance and corporate
value. The same applies to remuneration for executive officers who are vice presidents or above.
Outside directors only receive basic remuneration.
With regard to the proportion of basic remuneration,bonuses, and stock compensation-type stock options,because we believe that it is important to engage with management from a medium- to long-term perspective, our basic
approach is to emphasize the level and stability of basic
remuneration. At the same time, with the aim of enhancing
performance over the course of a single fiscal year, bonuses
and stock compensation-type stock options for directors
can account for up to approximately 30% and approximately
20% of basic remuneration, respectively.

Masachika Adachi (Chairperson, President & Representative Director)
Minoru Mizoguchi (Director & Senior Vice President)
Yoshio Osawa (Outside Director)
Toshiharu Hasebe (Outside Director)
Hiroko Kawamoto (Outside Director)

Total remuneration, etc. for directors (millions of yen)
Directors(excluding outside directors)

221(four directors)

Audit & Supervisory Board members(excluding outside members)

49(two members)

Outside directors and outside Audit& Supervisory Board members

86(seven directors and members)

Internal Controls

Initiatives to Enhance Corporate Governance2011

requirements. Nominations are submitted at a meeting of theBoard of Directors after the Nomination and Remuneration
Committee confirms that they are fair and appropriate.
The Audit & Supervisory Board discusses and consents tonominees before deliberations by the Board of Directors.

Dismissal Procedures for Management Team Executives

Members of Nomination and Remuneration Committee

Training Policy for Directors and Audit & Supervisory Board Members
The Company conducts training for directors and Audit &Supervisory Board members on appointment for the purpose of ensuring that they understand their roles and job
responsibilities and that they have the knowledge necessary
or useful to appropriately fulfill their duties. In addition, theCompany has established a system in which they can attend

To nominate director or Audit & Supervisory Board member
candidates and appoint vice presidents (including successors and candidates for president & representative director), the president & representative director first nominatescandidates from among those who fulfill the prescribed2021

Complies with the revisions to Japan ʼ s Corporate
Governance Code2022

Increases number of outside directors to three

2023

Appoints one female outside director

2024

Establishes Special Committee
Appoints the Nomination and Remuneration Committee
members whose majority are outside directors

Based on the Companies Act, the Board of Directors has
determined the basic policy for its internal control system toensure appropriate business practices and the Company isdeploying that system in line with the policy.
The Internal Controls Evaluation Committee has been
established for the purpose of developing an internal control
system for the entire Canon MJ Group, consisting of officials
representing corporate departments and subsidiaries.

In accordance with the internal control reporting system
under the Financial Instruments and Exchange Act, listedcompanies must now submit reports on internal controls.
The Company started to submit internal control reports on
the evaluation of the effectiveness of internal controls on
financial reporting in the fiscal year ended December 31,
2009.

Canon Marketing Japan Inc. | Integrated Report 2023

46

The Canon MJ Groupʼs Corporate GovernanceCorporate GovernanceProtection of Minority Shareholders in Transactions with the Controlling Shareholder
The Company ʼ s controlling shareholder is Canon Inc.
Important master agreements for transactions with thecontrolling shareholder are concluded following a resolution
by the Board of Directors. In addition, for a risk of conflicts of interests occurring between controlling shareholder
and minority shareholders regarding which deliberations
and considerations are deemed necessary for the purpose of protecting the interests of minority shareholders,the Special Committee consisting of Independent Outside
Directors makes discussions and delivers a report to theBoard of Directors.

No arbitrary decisions are made on terms, etc. of transactions with the controlling shareholder. The Company acts
appropriately and fairly in all transactions, not only thosewith its controlling shareholder, to avoid compromising its
independence and interests and to safeguard the interestsof all shareholders.
Members of Special Committee
Yoshio Osawa (Chairman, Outside Director)
Toshiharu Hasebe (Outside Director)
Hiroko Kawamoto (Outside Director)

Relationship with the Parent Company(1) The parent companyʼs policy on Group management
Canon Inc., the parent company of the Company, believes
that the Canon Group can achieve sustainable growth andincrease its corporate value in the medium to long term if
the Canon Groupʼs companies, including the Company, fulfill
their social responsibilities through their corporate activities
based on Canonʼs corporate philosophy, Kyosei, and continue to strive to realize Kyosei. Canon Inc. shares its management strategies with its listed subsidiaries, including theCompany, to ensure that the Canon Group will efficiently
achieve the targets of its medium- to long-term management plan, Excellent Global Corporation Plan Phase VI (20212025), through comprehensive optimization. The policy ofCanon Inc. states that its listed subsidiaries, including theCompany, will seek to post consistent earnings and maximize consolidated earnings to increase the corporate valueof the entire Canon Group.
On the risk management front, all of the Canon Group
companies, including the Company, are working to sharepolicies and information and develop systems to work as
one team on sustainability matters, such as risk management related to compliance, internal control, and economic
security, as well as measures for decarbonization and global
warming mitigation, and respect for human rights.
One of the Canon Groupʼs important management policies
is to protect the interests of the minority shareholders ofCanon Inc. and its listed subsidiaries. This policy involves
allowing the listed subsidiaries to maintain a high degreeof independence and flexible management systems. Due tothis policy, Canon Inc. does not participate in the Companyʼsdecision-making process regarding individual issues.

(2) Reasons why it is significant for the parent company
to have a listed subsidiary
Canon MJ sells and services Canon products. It also sells
and services the products of other entities and provides
IT solutions in response to customer needs. As a listedcompany that is independent of the parent company, we
have a process that enables us to make decisions promptly
and flexible financing methods. This allows us to broaden
our non-Canon businesses. In addition, we can leverage
our creditworthiness as a listed company to increase thenumber of customers and business partners, hire excellent
human resources and keep our employees highly motivated. For these reasons, Canon Inc. has decided that theCompany as a listed company will contribute to maximizing
the value of the Canon Group.

(3) The parent companyʼs involvement in the
Companyʼs management

The management of the Company is independent of theparent company. No officers of the parent company concurrently serve as officers of the Company. To enhance its
governance, the Company has established a Nomination
and Remuneration Committee, and a majority of the committeeʼs members are Independent Outside Directors. The
committeeʼs decisions are duly considered in the Companyʼs
appointment and dismissal of Directors, etc. and in determining their remuneration.
The Company applies the armʼs length rule to the transactions between the Company and the parent company toensure that the transactions are proper. We are committed
to avoiding unduly harming the interests of the minority
shareholders of both the Company and the parent company.
The Company has established a Special Committee which
deliberates and considers the risk of a conflict of interest
occurring between the controlling shareholder and minority
shareholders to mitigate these risks.

Basic Approach to and Preparations for the Exclusion of Antisocial Forces
1．Basic Policy
The Company and Group companies maintain a resolute
approach to antisocial forces that threaten the order and47

Canon Marketing Japan Inc. | Integrated Report 2023

safety of civic society, and the basic policy is to eliminate all
relationships with antisocial forces.

2．Status of Preparations
In addition to setting out action guidelines to eliminate
relationships with antisocial forces, the workplace regulations of the Company contain provisions to the same
effect, and we work to ensure that employees fully comply
with these guidelines and provisions.
● The general affairs division of the head office of theCompany has been designated as the Groupʼs control division in charge of responding to antisocial forces. It sharesinformation on antisocial forces with the general adminis●

tration departments of the respective branches and works
to prevent transactions, etc., with antisocial forces before
they occur.
● A collaborative structure has been built with the police,
attorneys-at-law, and other external organizations.
● Payments of contributions, etc., are examined in advancein order to confirm that there are no problems of legality or
corporate ethics.

Strategic Shareholdings
The Canon MJ Group only holds shares of other listedcompanies when these shareholdings help to improve thecorporate value and the medium- to long-term developmentof the Group, taking into consideration factors such as management strategies, business alliances, the maintenance andstrengthening of transactions, the development of collaborative businesses, and the creation of new forms of synergy.
The Company reviews the reasonableness of individual
reciprocal cross-shareholdings at meetings of the Board of
Directors in a comprehensive assessment that considers
the significance of shareholdings and other results of aqualitative evaluation as well as a quantitative evaluation of
the value of transactions with investment targets and dividends and whether unrealized gains are commensurate withcapital costs, on a regular basis each year.
As a result of the assessments, when it is judged thatholding certain shares is no longer reasonable, the holding
will be reduced through the sale of said shares.
As of December 31, 2022, the Company held 49 listed
stocks, and as of December 31, 2023, the Company held
45 listed stocks, a decline from the 59 listed stocks held asstrategic shareholdings as of December 31, 2021.

Policy for Constructive Dialogue with Shareholders
To contribute to the sustainable growth and medium- tolong-term enhancement of corporate value, the Company
holds constructive dialogue with shareholders throughvarious means, such as general meetings of shareholders,briefings on long-term and medium-term management plans,
financial results briefings, and interviews with major institutional investors.

Status of IR Activities
The Company aims to build long-term relationships of trustwith everyone participating in capital markets and acquire
suitable appraisals by making timely, appropriate, and fair disclosure of not only financial information but also non-financial
information and by enhancing opportunities for dialogue.
In addition, we strive to report insights and assessments
brought to light through dialogue to the Board of Directors,

the Management Committee, and other decision-making
entities and reflect them in the Companyʼs management inorder to achieve improvements in corporate value over the
medium to long term. We have established the Canon MJ
IR Policy to clarify our stance on investor relations (IR) disclosure, which is disclosed on our investor relations website.

Results of Activities in Fiscal 2023
For analysts and institutional investors (in Japanand overseas)
The Representative Director held a meeting to present
the Medium-Term Management Plan (online)● An officer in charge of IR held results briefings (online)● Held IR interviews individually● The Representative Director (9 interviews/year), officers
in charge of IR (16 interviews/year), IR staff (102interviews/year)● Held small meetings about business fields (fivemeetings)● Feedback of the evaluations of investors given tobusiness managers●*Interviewers: active investors, passive investors, growth fund managers,
value fund managers, analysts in Japan and overseas

For individual investors
Held (online) guidance seminars, where theRepresentative Director, officers in charge of IR andother IR staff members provided explanations (fourseminars were held).
● Updated the web page for individual investors.
● IR staff distributed e-mail magazines.
●

At Nomura IR Asset Management Fair 2024 in December 2023

Canon Marketing Japan Inc. | Integrated Report 2023

48

The Canon MJ Groupʼs Corporate GovernanceDirectors and Audit & Supervisory Board Members (as of April 1, 2024)
4

Director5

Director Outside

Apr. 1988
Apr. 2014

Apr. 1975
Jun. 2003

Apr. 1979

Joined the Company
Chief Executive of Administrative
Headquarters of Canon IT Solutions Inc.
Group Executive of Procurement
Headquarters of the Company
Vice President (present), Group
Executive of Finance & Accounting
Headquarters (present), Director in
charge of Group Finance & Accounting(present), Director in charge of Group
Auditing (present)
Director (present), Director in charge ofGroup Procurement (present)

Apr. 2005
Apr. 2008
Jun. 2008
Apr. 2011
Apr. 2013
Jun. 2013
Apr. 2016
Mar. 2018
Jun. 2019

7

6

5

9

7

11

Director Outside

2

1

3

Apr. 2020
Jun. 2020

Masachika Adachi
Apr. 1982
Mar. 2013
Mar. 2015
Apr. 2015
Jan. 2018
Apr. 2019
Mar. 2021

Joined the Company
Vice President
Director & Senior Vice President
Company President of Business
Solutions Company
Director of Enterprise Business Unit
Director & Senior Vice President
President & Representative Directorand Executive President (present)

Minoru Mizoguchi
Apr. 1984
Apr. 2015

Apr. 2016
Mar. 2018
Apr. 2019

Jan. 2020

Mar. 2021
Mar. 2022

Jan. 2024
Mar. 2024

Joined the Company
Group Executive of General
Administration & Human Resources
Management Headquarters (present)
Executive Officer
Vice President
Director in charge of Group General
Administration & Human Resources
Management (present)
Director in charge of Group
Procurement, Director in charge ofGroup Logistics (present)
Director (present)
Senior Vice President, Director in
charge of Group Legal & Intellectual
Property (present)
Director in charge of Secretarial Oﬃce(present)
Senior Vice President (present)

Director

Hatsumi Hirukawa
Apr. 1987
Jan. 2015

Jul. 2016
Apr. 2017
Apr. 2019
Jan. 2020

Mar. 2020
Mar. 2021
Jan. 2022
Mar. 2024

Joined the Company
Senior General Manager of Business
Solution Company Area Sales
Headquarters Area Business Promotion
Group
Group Executive of Planning
Headquarters
Executive Officer
Vice President
Director in charge of Group Planning(present), Director in charge of Group
Service & Support (present), Director ofService & Support Headquarters
Director (present), Director in charge ofGroup Communication (present)
Director of Marketing Headquarters
Business Products Marketing Section
Director of Marketing Headquarters(present)
Senior Vice President (present)

Apr. 2021
Mar. 2023

Canon Marketing Japan Inc. | Integrated Report 2023

Joined All Nippon Airways Co., Ltd.
Director and Executive Officer, Deputy General
Manager of Operation Division, and Chief of Inflight
Service Center of All Nippon Airways Co., Ltd.
Managing Director and Executive Oﬃcer, Director
for Promotion of Diversity, Deputy General Manager
of Operation Division, and Chief of Inﬂight
Services Center of All Nippon Airways Co., Ltd.
Director and Senior Managing Executive Oﬃcer
Director for Group Promotion of Diversity,
Promotion Oﬃcer for the Tokyo Olympic andParalympic Games of All Nippon Airways Co., Ltd.
Outside Director of Sumitomo Mitsui Trust
Bank, Limited
Executive Vice President and COO of ANA
Strategic Research Institute Co., Ltd.
Outside Director of Renaissance Incorporated(present)
Outside Director of Sumitomo Mitsui TrustHoldings, Inc. (present)
Chairperson of the Board of ANA Strategic
Research Institute Co., Ltd.
Outside Director of East Japan Railway
Company (present)
Adviser of ANA Strategic Research Institute Co., Ltd.
Outside Director of the Company (present)

10 Standing Audit & Supervisory Board Member
OutsideIwao Hashimoto
Apr. 1984
Apr. 2010
Jun. 2012
Apr. 2014
Sep.2014

Apr. 2016
Apr. 2018
Apr. 2019
Mar. 2020

49

Apr. 2020
Mar. 2022

9Standing Audit & Supervisory Board Member

Apr. 1987
Jul. 2013

Apr. 2016

3

Jun. 2015

Apr. 1984
Apr. 2011

Jun. 2017

Director

Jun. 2014

Jul. 1979
Apr. 2013

Jun. 2017

2Standing Audit & Supervisory Board Member

Jun. 2012

Yoshihiro Hashimoto

Apr. 2017

President & Representative Director

8Apr. 2009

Joined Nippon Telegraph andTelephone Public Corporation
Member of the Board of NTT
Communications Corporation
Executive Vice President of NTT
Communications Corporation
President and Chief Executive Officer
and Member of the Board of NTT
Advertising, Inc., President and Chief
Executive Officer and Member of theBoard of NTT Publishing Co., Ltd.
President and Chief Executive Officer
and Member of the Board of Nippon
Computer Arts, Inc.
President and Chief Executive Oﬃcer
and Member of the Board of DX
Catalyst Inc.
Outside Director of the Company(present)

Shiro HamadaJun. 2016

1

Independent

Joined Sumitomo Corporation
Concurrent post as director of SumitomoComputer Service Corporation (presently
SCSK Corporation)
Executive Oﬃcer of Sumitomo Corporation
Managing Executive Oﬃcer of Sumitomo
Corporation
Representative Director and Managing
Executive Oﬃcer of Sumitomo Corporation
Representative Director and Senior Managing
Executive Oﬃcer of Sumitomo Corporation
Representative Director, Assistantto President and CEO of Sumitomo
Corporation Adviser of SCSK Corporation
Representative Director, President &COO of SCSK Corporation
Chairman of the Board of the Directors,
SCSK Corporation
Outside Director of the Company (present)
Outside Director of Citizen Watch Co.,
Ltd. (present)

Hiroko Kawamoto

Apr. 20144

IndependentToshiharu Hasebe

Mar. 2022

8

Outside

Yoshio Osawa

Mar. 202110

Director

Tsuyoshi Osato
Jul. 201812

6

Independent

Independent

Joined The Yasuda Fire & Marine Insurance Co., Ltd.
General Manager of Eastern Hokkaido
Branch of Sompo Japan Insurance Inc.
General Manager of Osaka Corporate Sales
Department No. 2 and General Manager incharge of Sales Promotion Oﬃce
General Manager of Osaka Corporate Sales
Department No. 1
General Manager of Osaka Corporate
Sales Department No. 1 of Sompo Japan
Nipponkoa Insurance Inc. (presently Sompo
Japan Insurance Inc.)
Executive Officer and General Manager of
Hokkaido Headquarters
Executive Oﬃcer and General Manager ofKanto Headquarters
Managing Executive Oﬃcer and General
Manager of Kanto Headquarters
Standing Audit & Supervisory Board
Member of the Company (present)

Jul. 2013
Mar. 2016
Mar. 2016
Jan. 2018
Mar. 2021
Apr. 2021

Mar. 2022

Joined the Company
Deputy Chief Executive of
Administrative Headquarters of Canon
IT Solutions Inc.
Senior General Manager of Finance &Accounting Headquarters
Director
Vice President
Director in charge of Group Finance &Accounting and Group Auditing
Executive Vice President & Director ofCanon System & Support Inc.
Director in charge of Audit Office,Planning Headquarters andAdministrative Headquarters of Canon
System & Support Inc.
Standing Audit & Supervisory Board
Member (present)

11 Standing Audit & Supervisory Board Member

Seijun Suzuki
Apr. 1988
Jul. 2014

Apr. 2017
Jan. 2020
Mar. 2024

OutsideJoined Canon Inc.
General Manager of Internal Control
Management of Global Legal
Administration Center
Internal Audit Senior Manager of Canon(China) Co., Ltd.
Vice President in charge of internal
audit and legal affairs
Standing Audit & Supervisory Board
Member of the Company (present)

Jul. 2020
Apr. 2021
Mar. 2023

Mar. 2024

Joined the Company
Senior General Manager of Imaging
Product Support Group of Imaging
System Business Headquarters of
Imaging System Company
Senior General Manager of Camera
Headquarters of Consumers Business Unit
Executive Oﬃcer
Executive Oﬃcer in charge of Group
Contact Center
General Manager of Contact Center
Headquarters
President & Representative Director ofCanon Customer Support Inc. (present)
Standing Audit & Supervisory Board
Member (present)

12 Audit & Supervisory Board Member
OutsideIndependent

Shigeo Hasegawa
Jul. 1980
Jan. 2006

Jun. 2010
Apr. 2012

Mar. 2014
Mar. 2018

Registered as a Certiﬁed Public
Accountant
Head of Global Services Group of
Tohmatsu & Co. (presently Deloitte
Touche Tohmatsu LLC)
Leader of IFRS Center of Excellence
Specially-appointed Professor of
Chuo Graduate School of Accounting,
Professional Graduate School, Chuo
University
Standing Audit & Supervisory Board
Member of the Company
Audit & Supervisory Board Member(present)

Canon Marketing Japan Inc. | Integrated Report 2023

50

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Business Strategy

Functional Strategy

Progress of Medium-Term Management Plan
Long-Term Management Objectives (2021–2025) (as of January 29, 2024)

2025 Vision

Operating income

Sales

Of which, IT solutions sales¥58.0 billion¥650.0 billion¥300.0 billion

ROE

Basic Policy 3

Basic Policy 4Strengthen Specialized
Areas and Create New
Businesses

Group Management
Aimed at Continuous
GrowthMeasures

Implement the service-type business model to expand the stock business
Carry out and accelerate strategies for different customer groups

Achievements

Achieved steady growth in the IT solutions business towards the expansion of a service-type business model.
By business area, we focused on expanding the maintenance and operation service/outsourcing area.
We made Tokyo Nissan Computer System (currently TCS) a wholly owned subsidiary in November 2023.
ITS business by customer segment grew steadily in each area toward the 2025 plan figures.

2025 Financial Targets

9.0％*Upward revision in January 2023

Sales results and targets by business area

Medium-Term Management Plan (2022-2025) Basic Policies
1. Expand IT Solutions Business with Profit
2. Increase the Earnings Capacity of
Existing Businesses

Increase the Earnings
Capacity of Existing
Businesses

Expand IT Solutions Business with Profit

Professional corporate group that solves social andcustomer issues using ICT and the power of humans*Upward revision in January 2023

Basic Policy 2

Basic Policy 1

3. Strengthen Specialized Areas and Create
New Businesses
4. Group Management Aimed at Continuous
GrowthSystems integration
services
Maintenance andoperations services/
outsourcing
IT products andsystem sales

Results for the Current Fiscal Year and Progress of Plans(Billions of yen)

2021

2022

2023

2024

2025

(Result)(Result)(Result)(Forecast)(Forecast)

209.4

221.1

70.9

73.0

(Billions of yen)

241.4
82.0

300.0

290.0

268.9

108.0

98.6
55.0

64.0

37.2

47.6

50.5

101.3

100.5

108.8

115.3

118.0

2020

2021

2022

2023

2024 Forecast

75.0
(25%)

2025 Forecast

The IT solutions businessʼs sales target of ¥300.0 billion for fiscal 2025 is expected to be achieved one year ahead of schedule in fiscal 2024
thanks to the inclusion of Primagest into the Group.
Fiscal 2020 results have been reclassified because the network camera business has been counted as an IT solutions business since fiscal 2021.
A certain product business was reclassified in fiscal 2022, but fiscal 2021 results were not changed.
*3
Fiscal 2024 forecast figures were announced on January 29, 2024.
*1

650.0

of which,
IT solutions sales

221.1

241.4

268.9

290.0

300.0

Operatingincome

39.7

49.9

52.5

54.0

58.0

Operating margin

7.2%

8.5%

8.6%

8.6%

8.9%

ROE
•

•

•

•

•

51

8.2%

9.2%

8.7%

8.4%

9.0%

Sales in fiscal 2023 increased by 3.6% year on year due to the expansion of sales of SI services and IT infrastructure services, the recovery of
office MFP supply, and the brisk sales of new digital interchangeable lens cameras. The IT solutions business, which is positioned as a growthbusiness, continued to perform well, increasing by 11.4% year on year.
Operating income in fiscal 2023 increased by 5.1% year on year despite an increase in selling, general and administrative expenses as a result of
aggressive and effective promotional activities following the transition of COVID-19 to a Class 5 infectious disease, as the increase in gross profit
exceeded these factors. A record high was achieved for the third consecutive year.
In fiscal 2024, we expect to increase sales by 3.4% year on year and operating income by 2.9% year on year by further strengthening the earnings
capacity of the Canon product business and expanding sales in the IT solutions business in a manner that also increases earnings capacity. We
expect sales in the IT solutions business to increase by 7.8% due to the strong performance of SI projects for the manufacturing and financial
industries, despite the lack of large IT infrastructure projects which were in the previous year.
In terms of ROE, we will accelerate business investment for growth and reinforce the cycle of reinvesting generated profits into growth businesses, to improve capital efficiency and earnings capacity. We aim to establish a structure that can reliably achieve ROE of 9% or higher, and aim toachieve 10% in the near future.
We revised upward the net sales forecast to ¥645.0 billion in the “Q1 2024 Results Presentation” announced on April 23, 2024. We aim toachieve the 2025 sales target one year ahead of schedule by accelerating the expansion of the strong IT solutions business.

Canon Marketing Japan Inc. | Integrated Report 2023

Progress on ITS business KPIs by customer segment
Large
corporations
Quasi-major
and upper
medium-sizedenterprises

Edge solutions*1
2021

2023

¥23.0

¥27.0

billionbillion

2025

¥45.0
billion(Net sales)

HOME*2 and IT maintenance and operations

Small andmedium-sizedenterprises

2021

2023

2025

135,000

190,000

220,000(Number of contracts)

Security

ITO*3 and BPO

2021

2021

¥32.5

¥21.5

2023

2023

¥37.1

¥26.0

2025

2025

billionbillionbillionbillion¥48.5
billion(Net sales)¥32.0
billion(Net sales)

Create value through a service-typebusiness model

630.0

Enterprise

609.5

Area

588.1

Co-creation with customers

552.1

*2

Full support for customers

Sales

Edge solutions: Imaging solutions, digital document services, mathematical and demand forecasting, low-code development
HOME: IT support cloud service*3
ITO: IT outsourcing service*1*2

Canon Marketing Japan Inc. | Integrated Report 2023

52

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Business Strategy

Functional Strategy

Progress of Medium-Term Management Plan

Category

Edge solutions

HOME and IT maintenanceand operation

Security

ITO and BPO

We will help customers
resolve security issues byoffering comprehensive
security solutions for protecting the three management assets of information,
personnel and property, in
two aspects of security,
namely cyber security andphysical security.

ITO will expand high value-added services in andactively invest in the data
center business. BPO willtake advantage of thestrengths of QB5 Inc. todevelop business for awide range of customers.

Focus(Makasete IT DX Series service)

Activity
policyFor imaging solutions, wewill actively form capitaland business alliances toexpand the areas where
we offer value. For digital document services, wewill enhance the DigitalWork Accelerator services
to solve customer issues.

We will expand the onestop support service forplanning, selection, introduction, operation, maintenance, and education
on optimal IT solutions toprovide comprehensive
DX support for SMEs.

In both the printing and camera businesses, we maintain a high market share and improve the unit price per unit
under strategies for specific targets, thereby increasing earnings capacity.

Printing Business

Camera Business

Inkjet printers

2nd

Main
activities
in fiscal
2023(progress of

We expanded the lineup of the Makasete IT DX
Series and released nursing care solutions as anindustry-specific service.

We launched Cato SASE
Cloud, which centrally provides network and security
functions such as VPN on
the cloud.

Unit price per unit +47%

We integrated various IT
infrastructure services
u n d e r t h e S O LTA G E
brand and strengthened
it as the core of IT infrastructure services.

Wide format inkjet printers

Unit price per unit +26%
(vs. fiscal 2018)

Office MFPs

1st

3rd

Unit price per unit +10%

Unit price per unit +14%

16
consecutive
years

1st

Unit price per unit +73%
(vs. fiscal 2018)(vs. fiscal 2018)(vs. fiscal 2018)

the plan)

1st32
consecutive
years(vs. fiscal 2018)

In imaging solutions, weformed a capital and business alliance with AWL,
Inc., and in digital document services, we launched
an invoice receipt service.

Digital interchangeable lens cameras

Laser printers* Domestic volume share
Data source: Company research

Focus
Basic Policy 1

In April 2023, we started offering management support services and education support services as new services that are partof the Makasete IT DX Series. We support
everything from IT investment planning tohuman resource development, in addition
to IT selection, introduction, operation, andmaintenance.
In June 2023, we formed a capital andbusiness alliance with CARE CONNECT
JAPAN, Inc., and released nursing care solutions as the first industry-specific service.
We will continue to promote the expansionof new industry-specific services.

Makasete
Management support services
IT coordination services
Response to changes in laws
and systems

Educational support services

Security pack
Security measures
Data protection

Sales strategy development
support services
SFA support services

Protection against
information leaks

Skill improvement support services
Training support services

PC

Industry-specific services

Expand IT Solutions
Business with Profit

DX Series

Nursing care solutions

Expand IT Solutions
Business with Profit

53

Basic Policy 2

Increase the Earnings Capacity of
Existing Businesses

PC
Operational support service
Network

Basic Policy 4

Basic Policy 3Strengthen Specialized Areas andCreate New Businesses

Group Management
Aimed at Continuous
GrowthMeasures

Ensure continuous growth of the industrial equipment business
Create new businesses

Achievements

For further growth in the industrial equipment business, we steadily shifted towards becoming a platform holder with multi-vendor maintenance capabilities, and focused particularly on expanding semiconductor services in which profitability and continuity can be expected.

Operational support service
ServerOperational support service
Application
Operational support service
Industry A, Industry B, ...

Basic Policy 3Strengthen Specialized
Areas and Create New
Businesses

Basic Policy 4

Expand IT Solutions
Business with Profit

Group Management
Aimed at Continuous
GrowthMeasures

Develop strategies tailored to each customer segment
Further enhance the profitability of main product businesses

Achievements

Carried out strategies for specific targets to increase earnings capacity by intensively carrying out strategies
for different customer segments for the printing business, and stepping up our approaches to the intermediatecustomer group which has strong interests in photography for the camera business.

Canon Marketing Japan Inc. | Integrated Report 2023

Increase the Earnings
Capacity of Existing
Businesses

Maintenance and operation

Basic Policy 1
Basic Policy 1

Basic Policy 2

Basic Policy 2

Increase the Earnings
Capacity of Existing
Businesses

Basic Policy 3Strengthen Specialized
Areas and Create New
Businesses

Basic Policy 4Group Management Aimed atContinuous Growth

Measures

Maximize the value of human capital
Establish an engagement improvement cycle
Accelerate business investments toward growth

Achievements

Had the employees takeConducted DX certification and DX business certification exams as part of efforts to strengthen DX education.
The engagement score for fiscal 2023 increased compared to the previous year.
Proactively carried out M&As and capital investments, and investments insystems and human resources.

[Related page]▶Financial Strategy on
pages 25-28▶Human Resources
Strategy on pages 29-38

Canon Marketing Japan Inc. | Integrated Report 2023

54

The Canon MJ Groupʼs Management Strategy

Business Strategy

Overall Strategy

Functional Strategy

Overview of Businesses by Segment
Our business mainly consists of the Canon product business and the IT solutions business. As for customer segments, Canon MJ
operates in the four specific categories, the Consumers, Enterprise, Area, and Professional segments, and helps many customers
create value.

Consumers

Customer
Individuals
segment

Net Sales, Operating Income, and Operating Margin*132.8

Fiscal 2023 net sales¥138.9billionEnterprise

Fiscal 2023 net sales¥220.3billionArea

We sell Canon products such as cameras, whichhave been manufactured since our founding;imaging products; and inkjet printers, as well as
non-Canon consumer products, to individual customers through retailers, online stores, and otherbusiness formats.

5.2
6.9
2019

136.6

129.5

124.7

10.5

10.2

9.9

10.2

12.3

13.6

13.9

13.4

14.1

2020

2021

2022

2023

We sell Canon products and IT solutions directly
to large corporations and quasi-major and uppermedium-sized enterprises to resolve management
issues that vary by industry and business category. Our Major Account Headquarters is in chargeof large corporations while our General Business
Solution Headquarters is in charge of quasi-major
and upper medium-sized enterprises. Meanwhile,
Canon IT Solutions Inc. is in charge of both customer groups.

195.8

Professional

7.3

10.1
2019

13.9

9.4
2020

2021

Net sales (Billions of yen)
Operating margin (%)¥40.2
billion

8.9

17.1

19.7

5.4
14.4
2019

DX Series

4.0
9.0
2020

37 %
Enterprise

35%

Operating income (Billions of yen)

233.9

226.6

220.8

Area

2023

Net Sales, Operating Income, and Operating Margin*

Makasete

We provide products and solutions for customers
in specialist fields, such as production printing,industrial equipment, and healthcare.

8.4

2022

6.9

5.5

15.6

12.0
2021

2022

Net sales (Billions of yen)
Operating margin (%)

229.7

7.8

7.6

18.2

17.5

2023

Fiscal 2023 Breakdown of
Net Sales by Business Segment
IT solutions business

44%

2023

(after reclassiﬁcation)

Operating income (Billions of yen)

Net Sales, Operating Income, and Operating Margin
43.7

Fiscal 2023 net sales

22%

2023

5.1

5.1

We provide Canon products and IT solutions tosmall and medium-sized enterprises in Japan by
fully leveraging our diverse channels for indirect
sales through business partners and system partners and direct sales through Canon System &Support Inc.

CustomerSpecialist fields
segment

6%(after reclassiﬁcation)

220.3

202.7

190.6

184.6

223.7

billionConsumers

Operating income (Billions of yen)

268.3

¥229.7

Professional

Net Sales, Operating Income, and Operating Margin

Customer
Small and medium-sized enterprises
segment

Fiscal 2023 net sales

138.9

9.9

Net sales (Billions of yen)
Operating margin (%)

Customer Large corporations and quasi-major
segment and upper medium-sized enterprises

134.7

Fiscal 2023 Breakdown of
Net Sales by Customer Segment

41.7
30.7

3.7

31.5

1.6

1.9

2019

2020

12.6
7.9

6.2

40.2

5.2

3.6

2.5
2021

Net sales (Billions of yen)
Operating margin (%)

9.0

2022

2023

Canon product business, etc.

56%

Operating income (Billions of yen)*In fiscal 2024, we transferred the organization of some sales channels in the Area segment to the Consumer segment. Accordingly, the results for fiscal 2023 have been
reclassified between these segments.

55

Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

56

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Business Strategy

Functional Strategy

Consumers Segment
As we value our connection with customers, we will promote
one-to-one marketing and create customer value that exceeds
expectations to further strengthen proﬁtability
Senior Vice President, Director of Consumers Business Unit

Koichi Mikami

We sell Canon products such as cameras, which have been manufactured since the time of
our founding; imaging products; and inkjet printers, as well as non-Canon consumer products,
to individual customers through retailers, online stores, and other business formats.

Segment Targets/Our Strengths
Net Sales, Operating Income, and Operating Margin
139.3

138.9
10.2

14.1

9.8

13.7

127.5
10.2

13.0

2023
2024
2025
(Results)(Forecast)(Forecast)
Net sales (Billions of yen)
Operating income (Billions of yen)
Operating margin (%)

2023 Performance Highlights• Sales of digital interchangeable lens cameras remained strong thanks
to increases in opportunities to take pictures and increases in sales of
the EOS R series.
• Sales of inkjet printers decreased due to a shrinking market.
• Sales of IT products rose slightly because sales of high-performance
PCs and PC peripherals remained strong.
Our Strengths• Leading share of the digital interchangeable lens camera market• A membership organization and a diverse menu of services forcustomers with a strong interest in photography• Detailed services and support systems for photographers• Marketing capabilities from the customerʼs perspective, including
product exploration and channel development

Awareness of the Market Environment
Opportunities• Increasing number of photo opportunities dueto the recovery of demand for events andtravel• Growing needs for video creation centeredaround social media• Growing needs for broadcast camera systems
to communicate natural disasters in real time

Risks

• Shrinking digital interchangeable lens camera
market due to further functional improvements
in digital devices• Reductions in print volume due to changes inprinting environment

Toward Achieving the Goals of Our Medium-Term Management Plan
In the consumer market, where trends and technological innovation are rapidly changing and emerging, we strive to deliver valuethat exceeds customer expectations. In the camera business, we will promote one-to-one marketing to strengthen our connection
with the intermediate customer group by focusing on expanding sales of full-frame models, and enhancing service menus. In theprinting business, we will expand sales channels in the SOHO market and e-commerce market, focusing on the sales of high-unitprice products. Furthermore, we will accelerate the creation of new businesses that will become pillars of earnings, and aim to
maintain sales and improve earnings capacity.

57

Canon Marketing Japan Inc. | Integrated Report 2023

Case Study
Fostering of Photographic Culture / Creating Customer Experience Value Tailoredto Each Individual Customer
We promote a variety of activities for customers witha strong interest in photography, including professionals and avid photography enthusiasts. The Canon
Photo Circle has been enriching the photographic
lifestyles of its many members since 1954 by providing a wide range of information, such as introductions
to the works of professional photographers, details
on new products, and shooting and printing techniques. Meanwhile, the Canon Photo Contest, which
was established in 1953, is said to be the largest of
its kind in Japan and has received numerous entries
from professionals and amateurs alike. Furthermore,
we have been a special sponsor of the Photo Koshien(National High School Photography Championships)
since its first event, and supported the developmentof creativity and sensitivity in high school students(584 schools participated in 2023). In 2024, we consolidated user accounts (IDs) into Canon ID for the
purpose of providing optimal information and support
for photo and video activities tailored to each customerʼs needs. This makes it possible to conveniently
use the applications and services provided by Canonwith a single account.
We will continue tocontribute to fostering photo culture,and help our customers enjoy photography more.
Club photo session̶a subjectspecific event under the guidanceof a professional photographer

Incorporating Canonʼs Imaging Technology into Our Broadcasting Activities
Broadcast lenses handled by our broadcasting business enable high-definition video production atbroadcasting stations and in the video productionindustry. In addition, broadcasting camera systems,
known as weather-cams, which are installed at broadcasting stations and key points such as airports andcoastal areas, contribute to society by conveying
real-time images of heavy rain, storms, earthquakes,
and other natural disasters.
In recent years, the demand for video content has
rapidly grown in the video production market, and agreat deal of content is being produced and distributed. In fiscal 2021, Canon Inc. brought together its

long-cultivated imaging and network technologies todevelop a remote camera system for video production that offers high image quality and streamlines
photographic workflow. We will continue to deliver
such products and solutions that address the growing
needs of customers
for remote methodsof video productionthat offer greater efficiency andlabor-saving merits.
BU-43U outdoor remote camera
installed on a building rooftop

Initiatives for Creation of New Value
We are actively taking on the challenge to explore
new businesses that fit the times from a market-in
perspective, as we sense changes in the environment.
One example is the PowerShot V10, a new concept
camera developed and launched to expand the baseof the video market.
Based on the catchphrase “Letʼs Vlog 365 days ayear,” it is equipped with a 1.0-type CMOS sensor anda large-diameter microphone for serious functions
while enjoying easy video shooting with a smartphone-like design.
We are working to provide new imaging value toour core customers of video creators and vloggers,
as well as to smartphone users who have never purchased a camera before.
Furthermore, it is not limited to consumer use, but
is also envisioned for use in the B2B market as video
shooting equipment.

In addition, the Privacy Talk wearable noise reduction device supports comfortable online communication in various places and environments by reducing
oneʼs own voice and minimizing surrounding noise.
Ichikara Lab, Canon MJʼs first in-house start-up,
handled everything from concept planning to productcommercialization and marketing.
We will continue to listen to the voices of our customers, and explore and create new products andservices with an eye to the future.

PowerShot V10 vlog camera

Privacy Talk wearable noise
reduction device

Canon Marketing Japan Inc. | Integrated Report 2023

58

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Business Strategy

Functional Strategy

Enterprise Segment
Aiming to increase sales and proﬁts for ﬁve consecutive ﬁscal years
Through in-depth analysis of customers and industries andthe use of proprietary technologies, we will enhance the quality ofour proposals and deepen co-creation with our customers, thereby
transforming our service-type business into a new pillar of earnings

Canon IT Solutions Inc.

We are co-creating the future with our customers by leveraging
our unique technologies and developing highly skilled professionals,
thereby achieving ITS3000 ahead of schedule.
President, Canon IT Solutions Inc.

Senior Vice President, Director of Enterprise Business Unit

Hiroyuki Matsumoto

We provide Canon products, IT solutions and BPO services that help resolve the various industry- and business-specific issues of our vast range of customers, from large corporations toquasi-major and upper medium-sized enterprises, public agencies, and educational institutions.

Segment Targets/Our Strengths
Net Sales, Operating Income, and Operating Margin
231.2

220.3

8.9

249.0

8.9

9.0

20.5

22.5

2023 Performance Highlights• Sales of IT solutions increased significantly due to an increase in thenumber of large-scale SI projects and the solid performance of thesecond data center• Sales of office MFPs increased due to recovery of product supply.
Sales of laser printers increased thanks to multiple large deals in the
fourth quarter.

Akira Kanazawa

Canon IT Solutions is a systems integrator that engages in the development, operation, andmaintenance of systems for a wide range of sectors, primarily manufacturing and finance, andprovides services to businesses centered on data centers. On the strength of our high levels of
quality control, we offer a vast array of solutions that make use of our very own software andmathematical technologies that have been cultivated over many years.
Aiming to realize VISION 2025, Canon IT Solutions Inc.ʼs vision for fiscal 2025, we will strengthen management based on our
medium-term management plan, which places emphasis on processes and key performance indicators, and forge even further
ahead with the development of our three VISION 2025 business models: the service-type business model, the systems integration model, and the business co-creation model.
With the service-type business model, we will address the issues shared by many of our customers by drawing on our technology and knowledge of various industries and businesses accumulated to date. The systems integration model will facilitate ourdevelopment of systems that capture the essence of our customersʼ issues and underpin their businesses at every stage of the
IT life cycle, including maintenance and operations. With the business co-creation model, we will look into business-related issues
that our customers are unaware of and co-create solutions from a DX point of view. We also remain committed to developing
highly skilled professionals so that we can provide even greater value to customers through these three business models. As thecenterpiece of the Canon MJ Groupʼs ITS3000 strategy, Canon IT Solutions will orchestrate the achievement of this strategy.

Our Strengths

19.7

2023
2024
2025
(Results)(Forecast)(Forecast)
Net sales (Billions of yen)
Operating income (Billions of yen)
Operating margin (%)• Deep and extensive customer base developed throughlong-standing solid relationships with our customers• System construction and development capabilities by approximately 3,500 system engineers mainly from Canon IT Solutions• Highly sophisticated technological capabilities such as proprietary software technology, mathematical technology, language
processing technology, and image analysis technology• Collective strength that allows us to provide a range of IT infrastructure services centered on data centers as well as proposals,
development, maintenance and operations of Canon products
and systems

Awareness of the Market Environment
Opportunities• Expansion of IT investment accompanying business model transformation• Greater demand for IT solutions and BPO due todiversified business processes in response to theneed to improve operational efficiency, enable
employees to concentrate on core duties, and offset the declining workforce• Growing demand for security measures in response
to rising cyberattacks and information leaks

Risks• Lack of talent and intensifying competition
for securing highly skilled professionals in the
IT market• Rapidly increasing number of paperless offices due to widening adoption of telework anddigital workflow

Toward Achieving the Goals of Our Medium-Term Management Plan
The MA Headquarters and GB Solution Headquarters will steadily expand existing businesses, such as Canon products, document
solutions, and imaging solutions, while Canon IT Solutions will expand systems integration services as well as solutions such as
mathematical and demand forecasting and low-code development. Moreover, each organization within the business unit will work
together to create and expand a new service-type business model through co-creation with customers and turn it into a pillar of
earnings. To these ends, we will expand business by investing in human capital and leveraging synergies with Group companies
both inside and outside of the Enterprise Business Unit.

59

Canon Marketing Japan Inc. | Integrated Report 2023

Joint Proposal by Canon MJ and Canon IT Solutions (Edge Solutions)“Large-Scale Disaster Rapid Response Solution” for Property and Casualty Insurance Companies
With the occurrence of large-scale disasters such as
earthquakes and extreme rainfall events on the risein recent years, expediting procedures from on-site
investigation (damage assessment) to payment has
become an urgent issue for property and casualty
insurance companies in order to support the reconstruction of the lives of disaster victims.
Our Large-Scale Disaster Rapid Response Solution
for property and casualty insurance companies aims
to support efficient damage assessment and prompt
insurance claim payment through various IT services.
Its main services include: a payment process video
distribution service that outlines the series of procedures from application to receipt of insurance
claims and can be viewed even at the time of adisaster when it is difficult to make a phone call; animage-sharing system for damage assessment thatallows policyholders to complete the assessment
process by simply taking and sending their own pictures of the damage; a visit appointment & route
optimization system where the policyholders are able
to schedule a visit by an assessor if necessary andthe optimal route of dispatch for the assessor is automatically assigned; a flood damage witnessing appthat allows assessors to complete insurance claim
payment procedures simply by entering informationon the flood damage at the site into a tablet device
in the event of a storm or flood disaster; and an electronic storage service that digitizes procedures related to insurance claim application in disaster-stricken
areas, making it possible for information to be shared
and retrieved quickly.
Among these services, the visit appointment &route optimization system utilizes the same mathematical technology from Canon IT Solutions applied inlogistics optimization solutions.
Our solutions were put to use during the Noto
Peninsula earthquake that occurred in January 2024.
We will continue to provide solutions that leverage
our IT and extensive business knowledge to help
speed up support for victims of large-scale natural
disasters.
Simple claim
application
procedures
Policyholder

Watch the video to checkthe procedures
Report the status ofdamage via website
Request an investigation
via website
Efficient damage
assessment
Flood damage
witnessing app

Speedy claim
payment
Property and casualtyNon-life insurance company
Payment process
video distribution
service
Image-sharing
system for damage
assessment
Visit appointment& routeoptimization
systemElectronicstoragesystemAssessor

Canon Marketing Japan Inc. | Integrated Report 2023

60

The Canon MJ Groupʼs Management Strategy

Business Strategy

Overall Strategy

Functional Strategy

Area Segment
Aiming to increase sales and proﬁts forfour consecutive ﬁscal years
We will expand the scope of DX support from IT investment
planning to education to provide total support for business
innovation for SMEs with room for development
Yasuyuki Uotani

We provide Canon products and IT solutions to small and medium-sized enterprises in Japanby fully leveraging our diverse channels for indirect sales through business partners and system partners and direct sales through Canon System & Support Inc.

Segment Targets/Our Strengths

229.7

7.6

235.0

7.8

245.0

8.0

2023 Performance Highlights• Sales of IT solutions increased thanks to recovery of the supply of business PCs, winning multiple projects for building IT infrastructure, andan increase in the number of orders for the Makasete IT DX Series.
• Sales of office MFPs increased due to recovery of product supply.
Sales of laser printers decreased due to a rebound from the shipment
increases resulting from the recovery of supply in the previous year.

17.5

18.3

2023
2025
2024
(Results)(Forecast)(Forecast)
Net sales (Billions of yen)
Operating income (Billions of yen)
Operating margin (%)• Diverse sales channels that span across the country, such as ourbusiness partners that serve prominent local firms, system partners that are mainly involved in the systems integration business,
and Canon S&S, which engages in direct sales• Ability to propose optimal solutions by combining Canon products, ERP packages, security products, maintenance and operations services, and a variety of other products and services

Awareness of the Market Environment
Opportunities• Rising demand for IT investments as SMEs look
to digitalize their business• Rising demand for security risk measures• Responding to amendments to laws pertaining
to SMEs• Growing demand for business PCs and related
products following the end of Windows 10
support• Expanding AI and cloud services markets

Risks• Lack of talent and intensifying competition
for securing highly skilled professionals due todeclining labor population• Reductions in print volume at offices due tochanges in working styles• Business succession risks due to aging anddeclining labor population

Toward Achieving the Goals of Our Medium-Term Management Plan
IT investment is drawing greater interest among customers of SMEs as a solution to issues such as the need to streamline operations due to labor shortages and strengthen security.
Together with our diverse sales channels throughout the country, we will work to (1) expand sales of document solutions that
capture digitalization trends, (2) expand security solutions sales partners, and (3) accelerate the incorporation of Canon products
and solutions into partnersʼ sales strategies and expand integrated IT solutions services that cover the selection, introduction,
maintenance, and operation of IT equipment. In this way, we will accelerate supporting SME customers in solving their issues andin their business innovation.

61

Canon Marketing Japan Inc. | Integrated Report 2023

Takeshi Hiraga

Canon System & Support is in charge of the direct sales of Canon products and IT solutions andconsulting services for SMEs in Japan. Leveraging our nationwide business network and groupsynergies, we provide support services on a one-stop basis for planning IT investments, selecting and implementing the most optimal solutions to customersʼ issues, day-to-day operations
after implementation, maintenance when problems arise, and education.
Over the years, we have been providing customers with the tools and infrastructure for communicating information to as many
people as possible and to people as far away as possible, which are essential to the continuity of our customersʼ businesses, andhelping ensure stable operations in the process. Since the 1990s, we have been addressing the changing needs associated withthe proliferation of PCs and the internet by providing a range of solutions, including corrective maintenance for PCs and security
devices, in a timely manner. Nowadays, SME customers are faced with issues such as uncertainty with regard to the implementation of DX and a lack of personnel with IT knowledge. In response to these needs, we provide a comprehensive line of support
services to assist our customers in conducting business, such as by helping them plan IT investments and select and implement
appropriate IT system, ensuring stable operations through support for day-to-day maintenance and operations when problems
occur, and offering IT literacy training support. We will continue to help customers evolve their business through the use of IT byacquiring and developing highly knowledgeable and skilled personnel.

Development of the Makasete IT DX Series to Fully Support the IT Environment of SMEs

Our Strengths

19.5

President, Canon System & Support Inc.

Providing new value in line with changing markets and society
For SME customers in Japan, the Group has provided, and supported the stable operation of, tools andinfrastructure that respond to the changing times tohelp customers communicate information to as many
people as possible and to people as far away as possible, through collaboration between local business
partners and Canon System & Support. In line with
this, we are also developing internal business systems
and training human resources for these systems.
In the past, we established a maintenance andrepair structure to minimize customer downtime
as copiers and MFPs became more popular. As theInternet became widespread in the 2000s, Canon
System & Support has established a support structure and provided IT maintenance services by training
engineers to assist the stable operation of PCs andnetworks. In recent years, we have been pursuing initiatives to resolve issues when they are first received
at our customer support center that handles calls for
PC and network problems, without dispatching engineers to the customerʼs site.
While pursuing such initiatives, Canon System &Support focused on the fact that customersʼ IT infrastructure issues are related to day-to-day operations,reviewed its IT maintenance system, and added maintenance and operation services to the Makasete IT DX
Series to strengthen operational support services. We
have now started an initiative to receive calls fromthe customers of our business partners at the customer support center, and we will continue to workwith our business partners to help customers in moreregions to facilitate their business.

Expanded IT maintenance service menu to meet customer needs
Market andcustomer needs

Net Sales, Operating Income, and Operating Margin

At Canon System & Support, we strive to continue expanding
our proﬁtable service-type business by addressing
the concerns of SME customers across Japan throughour comprehensive line of support services.

Canon S&S

Vice President, Director of Area Business Unit

Canon System & Support Inc.

Means of communicating information by customers are changing.

Recently, customers are faced with:・Diversification of security threats ・Shortage of IT-related human resources
・Business transformation through DX ・Response to changes in laws

Spread of PCs and the Internet
MFPs and fax machines
Centered around paper

Stable operation of devices
Before 2000

Need forstable operation of PCs

Failure support for PCs
2001

Failure recovery for
network connections,email, etc.
Responding to network problems
2011

Makasete IT DX Series

Security packseries(Security measures)

2021

Maintenance andoperation*Renewal of maintenanceand operation menuManagement support/educational support
Industry-specificSupport service for implementation of the Act
solutionsconcerning Preservation of Electronic Books (Nursing care and welfare industry)

2022

2023

2024 –

Providing one-stop service forplanning, selection, introduction, operation, maintenance, and education
Providing value to meet customer needs

Canon Marketing Japan Inc. | Integrated Report 2023

62

The Canon MJ Groupʼs Management Strategy

Business Strategy

Overall Strategy

Functional Strategy

Professional Segment
We provide products and solutions for customers in specialist fields, such as production printing, industrial
equipment, and healthcare.
Production Printing

Healthcare

Working to expand sales and further improve proﬁtability
We will enhance our solution business for workﬂow innovation topromote the digitalization of the printing industry

Aiming to achieve net sales of ¥20.0 billion as soon as possible andimprove the proﬁt margin
As one of Japanʼs leading independent systems integration vendors
in healthcare, we provide comprehensive support for our customersʼ
digitization needs and contribute to improving the quality of healthcare

President, Canon Production Printing Systems Inc.

Katsumi Ueda

We propose a range of solutions that combine hardware and software in the data printing services, publication and commercial printing, industrial printing, point-of-purchase systems, large
format printing, document services, and other business fields.

2023 Performance Highlights• Although we were able to receive multiple orders for the ProStream highspeed continuous feed printer and the Colorado industrial printing printer,
which led to the development of the publication and commercial printing
market, data printing service market, and industrial printing market, sales
in this business area decreased due to the loss of multiple projects forhigh-speed continuous feed printers in the previous fiscal year.
Our Strengths• Long-cultivated software development capabilities for workflow innovation• High level of technical capabilities that have supported the stable operation of products and software• Solution proposal capabilities for solving potential customer issues• Strong organizational capabilities with integrated sales, planning,development, and services

Toward Achieving the Goals of Our
Medium-Term Management Plan
In the printing market, which is transitioning fromanalog to digital, we aim to transform our business portfolio so that we become a solutions
company that can resolve diverse and complex
customer issues through total solution proposals
combining hardware, such as high-speed continuous feed printers, and software, including pre- andpost-printing processes, and contribute to the
expansion of the Canon MJ Groupʼs profits.

Aiming for dramatic growth to realize net sales of ¥50.0 billion in the future
As a robust and resilient platform holder that is indispensable to ourcustomers, we address domestic needs with superior overseas technologies
Shunichi Minezaki

We procure semiconductor-related equipment, testing and measuring equipment, and opticalmeasuring equipment from Japanese and overseas manufacturers and sell them primarily tosemiconductor manufacturers, and also provide installation and maintenance support.

2023 Performance Highlights• Although sales of power semiconductors for automobiles, related services, laser interferometers, and the component businessgrew steadily, sales in this business area decreased due to theabsence of multiple projects for semiconductor manufacturingsystems, etc. in the previous fiscal year.
Our Strengths• Ability to research and discover outstanding products
from overseas based on the latest technological trends• Highly specialized personnel who import a variety of
unique products and provide sales, installation, and maintenance support for these products

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Canon Marketing Japan Inc. | Integrated Report 2023

Toward Achieving the Goals of Our
Medium-Term Management Plan
The semiconductor market is expected to continue tosee strong investments, boosted by government subsidy policies. By expanding sales of the semiconductor
service business, in which profitability and continuity
can be expected, we will strengthen our revenue baseto one that is resilient to market changes. We will alsosteadily pursue partnerships with overseas business
partners and launch new businesses, and expand thescale of our non-semiconductor businesses to achieve
the enhancement of the scale of our businesses withthe aim of improving profits.

Yoshinobu Kuroi

As a systems integrator that offers a wide range of IT solutions and services to the medical
and healthcare sectors, centered on electronic medical records, we provide a one-stop service
that covers everything from system proposals and development to installation, operations, andmaintenance.

2023 Performance Highlights• Sales in this business area increased significantly thanks to theacquisition of a new customer base of medium and large-sized
hospitals as a result of the transfer of the medical information
systems integration business from Canon Medical Systems.
Additionally, there was an increase in the number of projects
due to the mandatory introduction of online insurance eligibility
verification systems as a national policy in Japan, and expansion of sales of electronic prescriptions
Our Strengths

Industrial Equipment

Executive Oﬃcer, Group Executive of Industrial Equipment

President, Canon ITS Medical Inc.

• Possession of a specialized and advanced structure specific to medical information systems integration, covering development, assembly, installation, operations, andmaintenance• Efficient provision of solutions that meet customer needs
through the development and offering of cloud services thatcomply with medical guidelines

Toward Achieving the Goals of Our
Medium-Term Management Plan
The spread of electronic medical records in medical settings is expected to progress under thegovernment-led Medical DX Vision 2030. We
promote essential DX in the field by combining
hardware and software from a broad range of
products to solve issues that vary from customer
to customer, ranging from hospitals to clinics anddispensing pharmacies. In addition, by demonstrating the effects of the business integration
with Canon Medical Systems, we will solidify
our customer base, expand our stock business,
and aim to achieve ¥20.0 billion in net sales andimprove earnings capacity.

Segment Targets
Net Sales, Operating Income, and Operating Margin

13.0
9.0

3.6

Production
printing

46.0

44.0

40.2

Percentage of segment sales

9.3

Healthcare

24 ％

38 ％

Fiscal 2023
percentage ofsegment sales
4.1

6.0

2023
2024
2025
(Results)(Forecast)(Forecast)
Net sales (Billions of yen)
Operating income (Billions of yen)
Operating margin (%)

Industrial equipment

38 ％Canon Marketing Japan Inc. | Integrated Report 2023

64

The Canon MJ Groupʼs Management Strategy

The Canon MJ Groupʼs Management Strategy

Business Process Outsourcing (BPO)

MarketingAchieving Drastic Business Growth through Our Unrivaled
Business-Speciﬁc BPO Services in the Promising BPO Market

We will continue to provide the highest quality at
the lowest cost to continue to be chosen by customers

Senior General Manager, BPO Management Center

In 2018, the Company reorganized its business units from a structure based on product and sales channels to one based on markets and customers. At the same time, in order to support our business units more efficiently, we established an organization that
integrated the product planning functions and service and support functions throughout the Company.
We have since reshaped the organization, and our business units are now underpinned by four sections: the Business Innovation
Section, the Business Products Marketing Section, the IT Products Marketing Section, and the Service & Support Section.

Junji Asano

Canon MJ Groupʼs BPO provides business process outsourcing services to a broad
range of customers, including large corporations, quasi-major and upper medium-sizedenterprises, as well as administrative bodies such as central government ministries andagencies and local governments, based on the trust that we have cultivated through ourprinting and IT solutions businesses. We aim to execute high-quality operations on thebehalf of our customers by introducing the latest technology and improving operations.

Customers

Individuals

Segment

Consumers

Large corporations and Small and medium-sized
quasi-major and upper
enterprises
medium-sized enterprises

Specialist fields

Structure
The BPO Management Center consists of more than 1,400 members from Canon MJ and four BPO-related Group companies:
At Canon MJ, we are developing a business platform that enables us to provide even better services, such as service planning,
operational infrastructure development, and audits. Meanwhile, Canon BizAttenda is in charge of performing the businessplanning process of each project, managing their operations, and making improvements while Canon Business Support works
to streamline internal business processes and enhance operational quality.
We have also teamed up with Canon Production Printing Systems Inc., a provider of on-demand color printing and data
printing services, as well as highly specialized external partners to develop a structure that is even more conducive toaddressing the increasingly sophisticated needs of our customers.
We have also been focusing on developing services specialized in specific operations and industries in recent years. In
August 2022, we welcomed QB5 Inc. to the Group, which provides BPO specialized in human resources and labor operations,and in March 2024, we welcomed Primagest to the Group, whose strength lies in BPO specialized in financial industry.

Enterprise

Area

Professional

BPO

Marketing Headquarters
Organization integrating the product planning functions and service
and support functions throughout the Company●Business Innovation Section●IT Products Marketing Section●Business Products Marketing Section ●Service & Support Section

Administrative bodies (including central government
ministries and agencies and local governments)

Routine tasks

Temporary tasks

Entrusted operations

Entrusted operations

Routine tasks

Visualization ofbusiness processes

Entrusted operations

Business consulting
function

BPO

Document digitalization, screening work, help desk, HR-related tasks, etc.
Develop according to customers’ business issues

IT solutions
Digital document services

Group Headquarters

Private sector (including finance, manufacturing,and distribution)

Document management tools

AI Optical Character
Recognition (OCR)

Our customersʼ business environment has undergone drastic changes in recent years, including the increasing speed of technological developments, and they are striving to enhance their competitiveness in accordance with these changes.
We believe that in order to meet our customersʼ expectations, it is essential that we create highly competitive products, solutions, and services by adopting new technologies ahead of our customers, calmly analyzing the rapid and complex changes inmarkets, and exploring and developing growth markets. We achieve high productivity by advancing these processes efficiently
based on overall optimization.

Workflow

Data centers

BPO Management Center

Individual and corporate customers
Marketing functions

Toward Achieving the Goals of Our Medium-Term Management Plan

Digital documents
Printing

Creating value-added solutions through combinations
Imaging solutions

Cybersecurity

External cutting-edge
products and services

The demand for BPO services is expected to increase as employment status and workstyles are being reviewed amid worsening labor shortages. Canon MJ helps customers overcome such social hurdles as the labor shortage and workstyle reform
through the BPO services it provides. We are establishing and rolling out industry-specific services based on the knowledge
gained from large-scale projects involving screening work for financial institutions and administrative agencies.
We are also enhancing services for a wide range of departments, including internal IT support within the customerʼs company and agency service related to human resources. Going forward, we aim to expand BPO services that utilize Canonʼs unique
technological capabilities in document digitization and imaging solutions in an aim to improve sales and profits.

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Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

66

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

MarketingBusiness Innovation

Service & Support

Creating new solutions and services centered around our strengths
in imaging and digital documents

Continuing to be chosen by customers by refining products andtechnologies and achieving both high quality and high productivity

The role of the Business Innovation Section is to continue developing new solutions and services
from a customerʼs perspective by combining our assets, centered on our strengths in digital
documents, imaging, and security.
In imaging solutions, we have formed alliances with multiple vendors in Japan and overseas toexpand video analysis solutions utilizing video and AI, and we continue to create new services
that realize a safe and secure society and improve productivity.
In digital document services, we provide services that are compliant with laws and regulations, asset management platform services for important customer documents, and services
specific to businesses and industries, centered around the DigitalWork Accelerator Series.
We are also developing and providing total security solutions that combine our strengths,
including solutions to prevent the leakage of confidential documents and data, by linking physical security that uses imaging technology with cybersecurity.

We aim to continue to be chosen by our customers by offering after-sales support that ensures
our customers use our products and services safely and with peace of mind, and that exceeds
expectations.
Keeping a birdʼs-eye view of the value chain, we play a central role in quality managementof the products and services handled by the Canon MJ Group, while valuing a customer-driven
approach.
The Group will expand the area of solutions to social issues through its business by combining the Canon product business and the IT solutions business. We continue to address theissues faced by our customers and ”negatives” by refining the specialized skills of engineers
responsible for quality evaluation of the systems and solutions used by customers, call center
staff responsible for maintenance and operation support after installation and assembly, andengineers responsible for repairs and recovery.

Group Executive of
Business Innovation Section
Marketing Headquarters

Ryuji Nakata

The Canon product business is promoting the installation of NETEYE*1
that uses IoT technology. We remotely monitor the operating status ofcustomer equipment and achieve timely onsite inspections.
As a result, this contributes to the stable operation of equipment andthe planned actions of engineers, which improves productivity.
We have also established a system to define the skills required ofengineers and measure skill levels on an annual basis, thereby upgrading
human resources.

Continuing to achieve top market share through the provision ofadvanced Canon products and services*1

Canon Marketing Japan Inc. | Integrated Report 2023

Operating status
3F

Cloud

2F

1F

Achievements in office MFPs
1.4 times the number of units handled per person (vs. fiscal 2019)

Group Executive of
Business Products Marketing Section
Marketing Headquarters

Yasukazu Sawada

Customer Expectations and Requests Are an Essential Source of Growth for the Company
In the midst of rapidly changing environments surrounding our customers and the Company, we believe it is important to understand thevoices of customers and continuously improve and reform business processes.
To continue living up to customer expectations and requests, we actively collect customer feedback based on the six elements of customer
satisfaction*2 through various customer contact points and our own surveys. We continue the activity cycle, in which we analyze this feedback, which leads to improving value chain processes and changing employee behavior.
We aim to stay connected to our customers, and to be a company that continues to be chosen by new customers, as a result of improving
customer satisfaction*3.

Taking on the challenge of profitable growth and evolution
by supporting DX for customers through the provision of
cutting-edge security products and services

67

An online support service that monitors the conditions of equipment using the internet toensure comfortable operating environments

Online Support Service

Canon MJ

IT Products Marketing

The need for cutting-edge information and communication technology (ICT) solutions continues
to grow due to advances in cloud computing, qualitative changes in business through AI, andrising security risks. We provide solutions to such issues with the aim of supporting the digitaltransformation (DX) activities of our customers. In the security business, we are conducting
research and development in the field of cybersecurity with Group companies to provide solutions in accordance with the size of our customersʼ businesses in the hope that the Canon MJ
Group comes to be associated with security solutions.
By providing customers with Canon products in combination with various IT products, wehave developed a system that can help optimize a wide range of business environments andcontribute to customersʼ DX onsite.
We continue to take on the challenge of profitable growth and evolution toward the realization of “ITS3000,” while also expanding the areas in which we contribute to creating new value.

Hiroshi Kashihara
Pursuing a High Product Operating Rate to Achieve both High Quality and High Productivity

Business Products Marketing

The role of the Business Products Marketing Section is to resolve the document-related issuesof our customers and help them focus on their core operations by providing high-quality Canon
products and solutions that are easy to use as well as services that ensure these products andsolutions are utilized in a safe and secure manner.
To achieve this, we share the feedback we receive from customers regarding their expectations, requests, and other matters with Canon Inc. to develop and supply products and solutions of superior value. Furthermore, in response to the environmental demands of society, we
continue to improve resource circulation flows, such as collecting, reusing, and recycling usedproducts, to contribute to a sustainable resource circulation society. These are also our key
roles. We continue to work on improving quality and minimizing costs throughout the entire
value chain process, from product manufacturing to product delivery and after-sales support, inorder to be the company of choice for many customers.

Vice PresidentGroup Executive ofService & Support Section
Marketing Headquarters*2*3

Customer expectations, perceived quality, perceived value, customer satisfaction, willingness to recommend, and loyalty
Highest-ranked in the 2023 Japan Color MFP Customer Satisfaction Study, Small Office Market Division (Maintenance Service Factor), conducted by J.D. Power Japan

Executive Oﬃcer
Group Executive of
IT Products Marketing Section
Marketing Headquarters

Shinya Kondo

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68

The Canon MJ Groupʼs Management Strategy

The Canon MJ Groupʼs Management Strategy

Group IT Strategy

Intellectual Property Strategy

Leading the digital transformation of the business divisions
and headquarters to achieve the Canon MJ Group 2025 Vision
We aim to be a group of IT/digital professionals

Enhancing intellectual property by accumulating knowledge ofcutting-edge technologies to support the achievement of
the Medium-Term Management Plan (2022-2025) and promote
the creation of new businesses

Senior Vice President, In charge of Group IT, Business Process Innovation Project

Senior General Manager of Legal andIntellectual Property Headquarters

Senior General Manager of IT Headquarters

Yukihiro Sasabe

Hirokazu Uchio

We are using our “information, communications and security technology” and “operations and business” expertise to provide systems and services and encourage the digitaltransformation of existing businesses and the creation of new businesses.

To meet the expectations of a variety of customers who count on us to provide safe,
secure, and high-quality products and services, we are firmly protecting technologies
within the Canon MJ Group through rights and strengthening our intellectual property
governance. We also provide a one-stop service in order to integrate intellectual property activities across the Group.

Group IT Strategy that Supports Transformation to a Service-Type Business Model
We are integrally promoting digital transformation with ourbusiness divisions and headquarters. As frameworks for facilitating transformation, which serve as the platform, we areworking on three priority measures: restructuring our management foundation, strengthening IT security, and developing
human resources who foster transformation.
Of these measures, we are making particularly strong headway with “restructuring our management foundation.” As the2025 Vision

Group proceeds with its transformation into a service-typebusiness model, we are sequentially reforming our businessprocesses and mission-critical system in order to adapt flexibly to changes in the business structure and to increase
productivity taking into account the declining number of
employees.

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

Promotion of digital strategies
Problem-solving through data-driven management and the creation of new businesses
Developing an environment fordata-driven management

Frameworks
for facilitatingtransformation

Accompanying the business divisions
to improve or expand their businesses

Creating digital businesses in collaboration
with the business divisions

Strengthening IT security

Developing human resources
who foster transformation

Restructuring our managementfoundation

Develop a system that adapts flexibly
to changes in business and operations

Strengthen the security environment
and technologies that facilitatetransformation

Define and develop IT personnel
who promote transformation

Promotion of digital strategies
To achieve a 25% increase in per-employee productivity* by 2025, in 2023 we focused on data utilization efforts and worked on
the staged development of our data infrastructure through data analysis with our business divisions. In 2024, we intend to reorganize our master data to promote data utilization and data-driven decision making throughout the Company. At the same time,
we plan to restructure our sales and marketing processes.
* Gross profit (value added) per employee compared with 2021 standards

Frameworks for facilitating transformation
Strengthening IT security

Developing human resources who foster transformation

Following the introduction of EDR*1 in 2023, in 2024 we will
strengthen device security by introducing biometric authentication and security chips. In addition, in 2025 we plan to
introduce CASB*2 and promote a shift from traditional perimeter defense security to zero-trust security.

By 2023, 13,951 employees from across the Group have completed an e-learning course to acquire basic knowledge ofdata-driven concepts and data utilization, as part of our effort
to develop human resources in IT solutions. In 2024, we will
add UI/UX and citizen development to the data literacy anddigital marketing selective training programs (workshops thatcover business issues) we conducted in 2023, and we will work
to further enhance the digital literacy of our employees andstrengthen their professional skills. We will also promote skill
certification together with the Human Resources Department.

EDR (Endpoint Detection and Response):
Detects and responds to suspicious behavior on
terminals and other endpoints*2
CASB (Cloud Access Security Broker):
Visualizes and controls the use of cloud services*1

Restructuring our management foundation
By 2023, we have completed the overall formulation of our infrastructure restructuring, including the formulation of abusiness process innovation policy. From 2024, we will sequentially begin innovation to implement new systems basedon this policy, aiming for completion by 2029.

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Canon Marketing Japan Inc. | Integrated Report 2023

Visualization of Added Value and Protection of Intellectual Property through Patents
We appropriately protect the outcome of solution development and research and development to continue to meet
our customersʼ expectations. We visualize the added value
we can provide to customers by acquiring patents, and we
also conduct third-party rights searches (clearance) from thedesign and development stages.

We are also involved in the development of activities tosupport the creation of new businesses at our newly established R&B Promotion Center, and we will work to contributeto further increases in corporate value in the future.

Intellectual Property Strategy to Support the Growth of the IT Solutions Business andthe Creation of New Businesses
Patent portfolio to refine our IT solutions businessby leveraging our unique technological capabilities

Differentiation strategy based on a mix ofintellectual property

In addition to people, goods, capital, and information, theCanon MJ Group values intellectual property as a management resource. In particular, we are actively applying for patents in order to refine our IT solutions business by leveraging
our unique technological capabilities. Over 40% of our current
patent portfolio are patents in the area of security and thefour areas of edge solutions: digital document services, imaging solutions, low-code development, and mathematical anddemand forecasting.
The Canon MJ Group employs many engineers who arefamiliar with AI-related technologies, which are expected tocontinue to grow in the future. AI-related patents accounted
for more than 40% of all new patent applications in 2023, andthe unique technical capabilities in AI are being used to support the IT solutions business.

We recognize that names, designs, and brands are also important
intellectual properties. Our business, intellectual property, andbrand divisions work together to come up with the most appropriate names that are the face of our products and services, andapply for trademark rights.
In this way, the Canon MJ Group is implementing a differentiation strategy based on a mix of intellectual property that
includes technology, names, and even brands.

Patent Portfolio

Cutting-edge technology as an intellectual asset
for the future
The R&B Promotion Centerʼs activities involve working withstartups in a range of new fields. The Intellectual Property
Division has started researching the technologies andcompetitiveness of startups and reporting on their future
prospects. Through these activities, we will learn about
cutting-edge technologies and internally accumulate theacquired knowledge as intellectual assets, which we will use
to create new businesses.

Percentage of AI-related New Patent Applications in 2023

12%
11%
58%

9%
8%
2%

Security
Imaging solutions
Digital document services
Low-code development
Mathematical anddemand forecasting
Others40%

55%

AI (not including
generative AI)
Generative AI
Others5%

Canon Marketing Japan Inc. | Integrated Report 2023

70

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

Sustainability Management
Overview of Canon MJ Group Sustainability Activities

Based on our newly established Purpose, we promote sustainability management by taking on the challenge of creating
new value with a focus on future issues

Vice-Chair of Sustainability Promotion Committee

Hatsumi Hirukawa

Promoting Sustainability Management by Expanding the Range and Scope of the Social Issues We Can Solve
Based on Kyosei, the Canon Groupʼs corporate philosophy,
the Canon MJ Group has been working to solve social issues
through its business activities in harmony with people, society, and nature since 1988.
With social issues becoming increasingly complicatedand serious, in January 2024, we declared ourselves a MIRAI
Marketing Company with a view toward continuing to solve
an extensive range of future social issues with the powerof marketing together with various stakeholders to realize
a sustainable society. This expression has been adopted asa symbol of the Group. In addition, we also established theCanon MJ Groupʼs Purpose, Bringing together hopes andideas with technologies to create a future beyond imagining,in January 2024. In an era marked by accelerating change
and growing uncertainty, the Group will look to the future
constantly as a MIRAI Marketing Company and clarify the significance of our presence in society to increase collaborative
creation and cooperation with stakeholders, as well as unite
the aspirations of Group employees and speed up solutions
to social issues. Under our newly established Purpose, wewill promote sustainability management from a long-term
perspective by looking to future issues and boldly taking on
the challenge of creating new value that is free from conventional frameworks.

Sustainability Promotion Committee Put Under Direct Supervision of the Board of Directors in April 2023
The Canon MJ Group established the Sustainability
Promotion Committee in February 2021 as a place for theconsideration of measures to enhance corporate value
by placing sustainability management at the core ofmanagement plans. Matters to be discussed and resolvedby the Sustainability Promotion Committee are important
topics that relate to the core aspects of management andare cross-organizational themes that span multiple othercommittees and divisions. Therefore, we determined that asystem in which the committee operates under the directsupervision of the Board of Directors was necessary, andin April 2023, the committee, which had operated under
the Management Committee, changed to be under the
direct supervision of the Board of Directors. Importantsustainability matters are deliberated by the Sustainability
Promotion Committee and reported to the Board of

Directors to receive opinions and advice, which is thenreflected in subsequent initiatives.
In 2023, the Sustainability Promotion Committee
convened four times. In addition to establishing the Purpose
and implementing measures to instill it throughout theGroup, the committee reviewed, made decisions on, andconfirmed progress with KPIs for material issues, and also
redesigned our social contribution activities.
Structure of the Sustainability Promotion Committee

Board of Directors
Sustainability Promotion Committee

Secretariat:
Sustainability Promotion Division

Committee chair: President
Committee vice-chair : Executive officer in charge of group corporate planning
Committee members : Directors, directors of business units,
and heads of related divisions

Major Initiatives of the Sustainability Promotion Committee

71

2021

2022

2023

2024 (Planned)• Established the Sustainability
Promotion Committee• Determined the sustainability
management framework• Formulated the Environmental
Vision 2050, 2030 Medium-Term
Environmental Targets, andEnvironmental Policy• TCFD endorsement• Full-scale discussions on our Purpose• Finalized our material issues• Explored, determined, and confirmed
progress with KPIs for materiality issues• Moved under direct supervisionof the Board of Directors• Established our Purpose• Explored, determined, andconfirmed progress with KPIs formateriality issues• Roll out measures to instill the
Purpose• Explore, determine, and confirm
progress with KPIs for materiality issues

Conducted e-learning program to instillknowledge on our human rights policy
Established system aimed at realizing
carbon neutrality• Considered and made decisions tojoin various ESG initiatives• Began joint meetings with theBrand Strategy Committee

Canon Marketing Japan Inc. | Integrated Report 2023

Determined high-priority issues for human rights
Explored updates to our environmental targets• Redesigned our social
contribution activities

Formulate KPIs for human capital andexecute measures to achieve them
Increase engagement throughconducting supplier questionnaire• Start new social contribution
activities

At the Canon MJ Group, we definematerial issues as key issues that need
to be addressed immediately in orderto maintain sustainable growth, and are
implementing initiatives to meet the
expectations and needs of our stakeholders. We are also conducting social
contribution activities aimed at solvingsocial issues in areas where it is difficult for our businesses to reach. Bytaking measures to address material
issues and carrying out social contribution activities, we are working to put
our corporate philosophy and Purpose
into practice.

Canon Group Corporate Philosophy

KyoseiCanon MJ Group Purpose

Bringing together hopes and ideas with technologies
to create a future beyond imagining
Material Issues
Strengthening Our Management
Foundation
Meeting the needs of stakeholders

Coexist in harmony with the global
environment
Improve organizational capabilities toenable diverse human resources to thrive
Promote responsible supply chains
Promote risk and crisis management
Implement sound governance

Resolving Social Issues throughBusiness Activities
Meeting the expectations of stakeholders

Social Contribution Activities

Meeting the expectations of stakeholders

Major fields ofsocial contribution activities
Environmental protection
Regional and cultural revitalization
Personnel development
Safe and secure society
HealthProvide solutions that advancepeopleʼs daily lives, work, andsociety

The Sustainability Promotion Committee Monitors Progress with
Material Issues to Meet Stakeholder Expectations and Needs
The Canon MJ Groupʼs Material Issues

Coexist inharmony withthe global
environment

Provide solutions that
advance people’s
daily lives, work, andsociety

Improve organizational
capabilities to enable
diverse human resources
to thrive

Expectations

Promoteresponsible
supply chains

Promote risk
and crisis
management

Implement
soundgovernance

Needs

After sorting the needs of the Groupʼs various stakeholders,
we analyzed the risks and opportunities related to ourbusiness, and identified six material issues throughdiscussions by the Sustainability Promotion Committee.
Due to their cross-sectional and multifaceted nature,
our approach to material issues is spearheaded by the
Sustainability Promotion Committee, which collaborates withthe human resources, procurement, legal affairs, and otherrelevant internal departments as well as the Human Resources
Strategy Committee, Risk and Crisis Management Committee,
and the Quality Improvement Committee, which operate under
the Management Committee. In addition, the Sustainability
Promotion Committee monitors the progress of initiatives,
identifies the gaps between our targets and the progress
made so far, and updates these targets on a regular basis.
In fiscal 2023, our key initiatives for material issues wereas follows. With respect to the environment, we updated
our 2030 Medium-Term Environmental Targets aimed atrealizing carbon neutrality to bring them in line with SBTistandards, and achieved 100% renewable energy for theelectricity used at five of our business sites, including theGroup headquarters and Canon MJʼs office buildings. To

maintain a recycling rate of 99.9% or higher, one of the 2030
Medium-Term Environmental Targets, we also identified
potential risks, and determined and implemented measuresin response. In terms of respect for human rights, as partof our human rights due diligence process, we identified
high-priority issues and determined countermeasures foreach one. For risk and crisis management, we established
KPIs that are linked to the Companywide risk map andimplemented employee training and cyber-attack drills,
among other measures. Additionally, as part of initiatives
to promote sound governance, we appointed one female
outside director to ensure the diversity of the Board of
Directors, established a Special Committee in January2024, and appointed a majority of outside directors to theNomination and Remuneration Committee.
In fiscal 2024, in addition to implementing measuresin accordance with the KPIs we have set, we will work
to reduce Scope 3 emissions, strengthen engagementwith suppliers to address human rights issues, as well
as formulate KPIs and implement measures related tovisualizing the skills of highly skilled IT personnel under ourhuman capital strategy.

Material Issue Identification Process
2. Consider stakeholder needs in relation
to the Groupʼs material issues

1. Sort the needs of stakeholders
Stakeholder Perspective

Information Source

International community

United Nations

SDGs

Japanese government

SDGs Action Platform

Country

Ministry of the
Economy, Trade andIndustry

Practical Guidelines on
Corporate Governance
Systems

Investor

FTSE Russell

ESG rating criteria

Think tankMitsubishi ResearchInstitute, Inc.

Resolving Societal Issues
through Innovation

Inventory List ofSocietal Issues
Integrate,
Arrange,andClassify

The Canon MJ
Groupʼs Growth
Strategies andPolicies

3. Identify material issues
Material Issues

List of societal
expectations

Long-Term Management
Objectives(2021–2025)

Expectations(one criterion)

List of societal
needs

Medium-Term
Management Plan
(2022–2025)

Needs(ﬁve criteria)

4. Implement and monitor
Implementation of the plans discussed andapproved by the Sustainability Promotion
Committee, the progress of which isregularly checked by said committee

A
C

P

D

Canon Marketing Japan Inc. | Integrated Report 2023

72

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

Sustainability Management

Initiatives for Material Issues (Management Foundation):
Meet the Needs of Stakeholders
Coexist in harmony
with the global
environment

Canon MJ Group 2030 Medium-Term
Environmental Targets

The Canon MJ Group is promoting activities in line with the Canon MJ Group, plastic ,and water
Environmental Vision 2050 and the Canon MJ Group 2030 Medium-Term Letʼs reduce
Environmental Targets, the interim targets of this vision, in an eﬀort tocontribute to the realization of a sustainable society that coexists in harmony with the global environment.
Realization of Carbon Neutrality
Fiscal 2023 Result

in-house CO2 emissions

8.4% decrease
from fiscal 2021

(compared with fiscal 2021)

We have received third-party assurance from LRQA Limited
for our 2023 GHG emissions data (Scope 1, 2, and 3).

Updating the 2030 Medium-Term Environmental
Targets toward carbon neutrality
In 2024, we updated the 2030 Medium-Term Environmental
Targets, the interim targets of the Canon MJ Group
Environmental Vision 2050, under which we aim to achievecarbon neutrality. We have brought these targets in linewith the SBTi*1 standards as follows. (Canon Group received
SBTi certification)*1

Contributing to Customersʼ CO2 Reduction throughOur Business
Canon IT Solutionsʼ Nishi-Tokyo Data Center Building No. 2
Certified as an Outstanding Specified Anti-Global Warming Facility
In March 2023, Nishi-Tokyo Data Center Building No. 2,
owned and operated by Canon IT Solutions Inc., wasrecognized by the Tokyo Metropolitan Governmentʼs Bureau
of Environment as an Outstanding Specified Anti-Global
Warming Facility (near-top-level business facility). As aresult, along with the No. 1 building, which received thesame designation in 2020, the both buildings of the NishiTokyo Data Center have been recognized as business sitesthat have an outstanding system in place for promoting
measures against global warming. On the strength of
its high-performance facilities and excellent operational
quality, which have been refined through the operation of
the No. 1 building, the Nishi-Tokyo Data Center has madecontributions to reductions in our customersʼ CO2 emissions.

• Reduce Scope 1 and 2 emissions by 42% from 2022
levels by 2030

Qualysite Technologies Started Operations Using 100%
Renewable Energy• Reduce Scope 3 (Category 1, 11) emissions by 25%
from 2022 levels by 2030

In June 2023, Qualysite Technologies Inc., which operates
the Nago Data Center, introduced a third-party photovoltaic
ownership model (on-site PPA) KarE-roof *2 provided by
Okinawa New Energy Development Company, Incorporated,a member of the Okinawa Electric Power Company Group,and started using electricity with an installed photovoltaic
power generation capacity of 80 kW. By using non-fossil
certificates with tracking to cover the shortfall in renewableenergy, it was able to operate using 100% renewable energy.

SBTi (Science Based Targets initiative): An international initiative that recommends the setting of GHG emission reduction targets based on scientificevidence*2

KarE-roof is a service in which photovoltaic power generation facilities andstorage batteries are installed with no initial investment, and the generated
electricity is sold to the installer. Okinawa New Energy Development provides one-stop support from exploring options, installation, maintenance, andremoval.

Contribution to the Realization of a Resource-Recycling Society
Fiscal 2030 Target

Recycling rate of

Fiscal 2023 Result

99.9% or higher 99.9％ or higher

At the Canon MJ Group, we aim to maintain a recycling
rate*3 of 99.9% or higher for end-of-use products collected

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Canon Marketing Japan Inc. | Integrated Report 2023

Maintaining and Expanding the Sale of Plastics as
Valuables at Logistics Centers

Canon MJʼs logistics centers across Japan use stretch film toprevent loads from collapsing during transit and use styrofoam as packaging materials.
Instead of throwing thesematerials away as plastic
waste, some logistics centers make effective use ofthem, selling them as plastic
resources.
Compressed stretch films

Fiscal 2030 Target

38% reduction in

Initiatives to Promote Plastic Waste Reduction
and Recyclingfrom customers, such as printers and MFPs. To date, wehave maintained our recycling rate at over 99.9% for sevenconsecutive years. We will continue to do so by identifying
the potential risks, taking measures in response, andmonitoring progress.
*3

Recycling rate (rate at which end-of-use products are converted into new
resources) = Amount of products disposed of through methods other thanlandfill disposal ÷ Total amount of products disposed of

Recycling Used Clear Folders

Canon MJ ʼ s head office building takes part in the
ASKUL Resource-Recycling Platform operated by ASKULCORPORATION, and collects and recycles used clear folders.
In 2023, we recycled 369 kg worth of clear folders.
Making Effective Use of Returned Products, Etc.

We are working to reduce plastic waste by making effective
use of returned products, etc. In 2023, we made effective
use of returned products by reusing used demo equipment
internally and donating products that were returned due todefective outer packaging. We also pursued an initiative thatinvolved removing parts
from returned inkjet printers
and using them in repairs as
parts that meet our quality
requirements.

Recycled printer part reused for
repairs (paper feed cassette)

Water Risks Initiatives
To reduce water resource consumption, Canon MJʼs head
office building, in cooperation with the Shinagawa Grand
Commons Community Development Council, participatesin the Reclaimed Water Utilization Project promoted by
the Tokyo Metropolitan Governmentʼs Bureau of Sewerage
and uses the recycled water supplied by the bureau in
toilets and other facilities. In 2022, we also reduced water
consumption by installing toilet faucets that make minimaluse of water at our head office building.
In another effort to monitor the Canon MJ Groupʼs water
risk, a water risk assessment was carried out in 2022 atits business sites in Japan using the Aqueduct Water Risk
Atlas,*4 which confirmed that its overall water risk falls underthe “low” or “low–medium” levels.
*4

Aqueduct: A global water risk assessment tool developed by the World
Resources Institute (WRI)

Contribution to Biodiversity Conservation and Pollution Prevention
Furusato (Hometown) Project Activities

Initiatives to Prevent Pollution

Guided by its Groupwide Biodiversity Policy, the Canon
Group is carrying out its Furusato (Hometown) Project withthe aim of preserving beautiful and verdant local communities for future generations. In this project, we promoteparticipation in the activities of collaborating organizations
and work to conserve and raise awareness of biodiversity
based on the My Action Declaration,*5 a set of five actions
to protect biodiversity.

For the Canon MJ Groupʼs products manufactured undercontract, we are working to eliminate hazardous chemical substances based on the Canon Green Procurement
Standards.
We confirm that our business partners have establishedproduct chemical management systems in accordance withthe above Standards. We also conduct surveys of raw materials, parts, and secondary materials of products manufactured under contract to check for environmentally hazardous
substances.

*5

An initiative that enables each of us to feel a sense of connection with biodiversity in our daily lives and take action in our immediate surroundings with thegoal of protecting biodiversity

Chemical Substance Management

Furusato(Hometown)
Project

At the Canon MJ Group, we identify and manage all
chemical substances *6 used for after-sales support for
products and similar purposes. In accordance with theChemical Management Procedure that we establishedinternally, we manage chemical substances appropriately,such as by checking the usage and stored amount of
substances deemed to be harmful or hazardous. In addition,
when we use a new chemical substance, we assess its
environmental impact in advance, thereby judging whether
we can use it or not and confirming the appropriate ways ofusing and storing it, among other points.
*6

These substances include office automation cleaners and industrial lubricants
used for maintenance.

Canon Marketing Japan Inc. | Integrated Report 2023

74

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

Supervisory System of the Board of Directors

Sustainability Promotion Committee

The Canon MJ Group has a system in place under which
the Board of Directors supervises matters to be discussed
and resolved by the Sustainability Promotion Committee, as
they are important matters that relate to the core aspectsof management and pertain to the entire organization. The
Board of Directors receives reports on the risks and opportunities associated with climate change from the Sustainability
Promotion Committee at least once a year and monitors the
progress of measures related to such risks and opportunities.

Matters concerning climate change are discussed by the
Sustainability Promotion Committee. The president & representative director, who is the chairperson of the committee,
assumes overall responsibility for all sustainability-related
matters, including climate change. The committee assesses
the impact of climate change on our business once a year or
more and holds discussions concerning our approach to minimizing the identified risks and seizing opportunities.

Risk Management
Risk Management Process

Identify climate change
scenarios andbusinesses impacted
by climate change

Identify importantrisks and opportunities
and arrange concrete
examplesPrepare multiple
scenarios and arrange
assessments on risks
and opportunities

The Sustainability Promotion Division, which oversees matters related to climate change, takes the lead in identifying
the risks and opportunities of climate change and assesses
the situation in cooperation with the relevant internal divisions and Group companies. The Sustainability Promotion
Division also examines responses and countermeasures foreach risk and opportunity, which are reported and proposed

Integration into Companywide
risk management

Assess the impactof each scenario on
our businessfor deliberation to the Sustainability Promotion Committee.
The division also reports and deliberates on certain climatechange-related impacts and matters to risk management
divisions throughout the Company, thereby assuming therole of integrating the impacts of climate change into ourCompanywide risk management.

Strategy
At the Canon MJ Group, we conduct scenario analyses to
identify the various risks and opportunities posed by climatechange to our business. Using the Intergovernmental Panelon Climate Changeʼs Representative Concentration Pathway
C (RCP 1.9) and 4°
C (RCP 8.5) as(RCP) scenarios of 1.5 °well as the International Energy Agency ʼ s Sustainable
Development Scenario (IEA-SDS), the scenario analyses were

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Canon Marketing Japan Inc. | Integrated Report 2023

Time ofOccurrence

Cost ofrenewable energy
facilities

The achievement of CO2 emissions reduction targets and theintroduction of new technologies to accommodate the shift toclean energy would entail the establishment and redevelopment of
renewable energy facilities, leading to higher facility costs.

✓

Low

Short
to longterm

Changesin printing
environment

Changes in the printing environment, such as the increased costof procuring paper due to forest conservation eﬀorts, reductions inpaper use stemming from an increase in customersʼ environmental
awareness, and advances in digitalization, are reducing the printing
needs of customers in certain business ﬁelds.

Reputational
damageThe Companyʼs inability to facilitate the shift to a low-carbon
society may deteriorate its reputation among customers, investors,
and society as a whole.

Damage toproduct storage
facilities

1.5°
C

4°
C

High

Short
to longterm• Provide solutions that are tailored to the needs ofcustomersʼ changing printing environments (provide
digital solutions in increasingly digitalized ﬁelds andmore-eﬃcient printing solutions in areas with highprinting demand)• Expand support for environmentally-friendly paper
such as banana paper

✓

Low

Short
to long
term

Disclose our approach and the status of our measures
to address climate change

Damage to product storage facilities as a result of ﬂooding andother water-related disasters caused by the increasing intensityand frequency of heavy rainfall may impede the Company ʼ sbusiness activities.

✓

Low

Short
to long
term

Propose measures to be implemented at warehousing
companies and carry out some of the measures

Inability tocommute to work

Employeesʼ inability to commute to work due to transportation orother issues caused by the increasing intensity and frequency of
weather-related disasters may impede the Companyʼs businessactivities.

✓

Low

Mediumto long
term

Maintain and promote a system and framework thatallow businesses to continue to operate as usual evenwhen employees do not come to the oﬃce due totelework or other reasons

Increasein averagetemperatures

The rise in average temperatures may lead to higher air conditioning
costs for data center server rooms and business sites.

Low

Short
to longterm• Consider the establishment of energy-saving
facilities• Improve eﬃciency of heat-source equipment

Rise in sea levels

The number of areas susceptible to changing sea levels may
increase and certain facilities located in low-altitude coastal areas
may incur damage or even become submerged.

Low

Mediumto longtermCollect information on and analyze and address therisk of damages

✓

✓

✓

Impact on Business
Opportunities

Details/Speciﬁc Examples

Measures

Reduction ofenergy costs

Lower energy costs resulting from the increasing adoption ofrenewable energy will lead to a more stable supply of energy.

✓

Low

Mediumterm

Collect information on and consider the adoptionof renewable energy

Increases inorganizational
value throughimproved ability
to address
climate change

A systematic approach to climate change that includes
climate risk assessment and risk diversification measures
will help stabilize business operations and facilitate thedevelopment of solid management and business foundations,spurring improvements in external assessments and stock
prices.

✓

Low

Short
to long
term

Disclose our approach and the status of ourmeasures to address climate change

Increased
opportunities
for systems
integration
servicebusinesses• Increasing need for demand forecasting and supply-demandplanning solutions that help reduce CO 2 emissions by
optimizing and streamlining logistics operations• Declining use of paper in manufacturing processes
and growing need for DX that contributes to greater
productivity along the engineering chain• Rising demand for digitalization and document
management services due to greater emphasis on energy
and forest conservation

High

Short
to longterm

Strengthen solutions businesses that help
customers reduce CO 2 emissions and makeeﬀective use of paper resources

Increased
opportunities
for printer and
MFP businesses

Increased demand for environment-friendly products certiﬁed
with environmental labels, such as printers and MFPs

Short
Moderate to longterm

• Strengthen sales of energy-efficient, userfriendly products• Promote the replacement of VOC-emitting
oﬀset printing presses with on-demand printers

Short
to longterm

Strengthen data center businesses that help
customers reduce CO 2 emissions and ensurebusiness continuity

1.5°
C

4°
C

carried out by selecting risks and opportunities that wereshared throughout the Group as well as the Groupʼs key
businesses that have a significant impact on climate change.
The time of occurrence of risks or opportunities related toclimate change impacts is determined based on short- or
medium- to long-term time frames.

Financial
ImpactShort
to longterm

Formulate
responses to risks
and opportunities
Opportunities

Sustainability Promotion Division

Cooperation between business divisionsand Group companies

Low

Technology Government policies/legal frameworks

Transition risks• Identifies and assesses climate change impacts• Monitors climate change impacts, confirms the progress of measures,and reports to the Sustainability Promotion Committee• Reports and makes recommendations on the identified climate change
impacts to risk management divisions throughout the Company✓

Time ofOccurrence• Holds jurisdiction over climatechange-related matters• Serves as the secretariat of the
Sustainability Promotion Committee

The achievement of CO2 emissions reduction targets would require
the installation of energy-saving equipment, leading to higher
equipment costs.

• Collect information on and analyze and address
recent trends in environmental regulations• Promote measures to achieve the 2030 Medium-Term
Environmental Targets (including the considerationof establishing renewable energy facilities and CO2
emissions reduction initiatives)• Collect information on and consider the adoption ofrenewable energy based on the global situation

Financial
ImpactSustainability
Promotion
Division• Convenes at least four times a year with the president & representative
director as the committeeʼs chair• Confirms the progress of climate change initiatives• Reports important climate change-related matters to the Board of
Directors

Cost of energysaving equipment

Scenario

Sustainability
Promotion Division• Promotes environmental measures,
including climate change response

Physical risks

Deliberate

Sustainability
Promotion
Committee• Approves important sustainability management-related matters(including climate change)• Confirms the progress of measures related to risks and opportunities ofclimate change

MediumModerate to longterm

Chronic

Sustainability
Promotion Committee• Oversees sustainability management
initiatives (including climate change)✓

Classification

Oversee

Details

The implementation of carbon taxes would lead to higher electricity
prices and operating costs, as it would entail the payment of taxes
for the amount of CO2 emitted by the Company and raise the costof generating electricity for the power company.

EnergyDeliberate

Board ofDirectors

Climate Change-Related Functions

Impact ofcarbon tax
implementationon the Company
and suppliersCountermeasures

Resilience

Committee

Board of Directors

Details/Speciﬁc Examples

MarketClimate Change Response Promotion Structure

Systems
Business Data
Printers
Integration
Sites
Centers
and MFPs
Services

Risk

Acute

GovernanceImpact on Business

Reputation

Classification

Initiatives for TCFD Recommendations

Products and services

Coexist in harmony
with the global
environment

Scenario

Sustainability Management

Increased
opportunities
for data center
businesses

Systems Printers
Business Data
Integration andSites Centers
Services
MFPs

✓

✓

• Growing demand for zero-carbon data centers that
contribute to reductions in customersʼ Scope 3 emissions✓• Greater demand for robust data centers that can withstandnatural disasters for the purpose of establishing a business
continuity plan (BCP) as a result of the increasing frequency
of weather-related disasters

High

Short term: to 2025 Medium term: 2026 to 2030 Long term: 2031 to 2050

Metrics and Targets
Aiming to realize carbon neutrality, we are working toachieve our goal of reducing in-house CO2 emissions by 38%(compared with 2021) in the Canon MJ 2030 Medium-Term

Environmental Targets. As of the end of 2023, we achieved
an 8.4% reduction*7 in CO2 emissions compared with 2021.
*7

Please refer to page 73 for our measures aimed at the realization of carbon
neutrality.
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76

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

Sustainability Management

Improve organizational
capabilities to enable diverse
human resources to thrive

Improve organizational
capabilities to enable diverse
human resources to thrive

Diversity

Approach to Diversity

Respect for Human Rights

Basic StanceBased on Kyosei, the Canon Groupʼs corporate philosophy, theCanon MJ Group aims to realize a society in which all people,
regardless of culture, customs, language, or ethnicity, canlive and work together in happiness. Through our corporate

activities rooted in Kyosei, we will continue to embrace diversity as we aim to become a company where diverse humanresources with different personalities and values can flourish
and continue to grow by motivating each other.

Empowerment of Women
Eight Canon MJ Group companies have established an
action plan based on their respective issues, which include
the appointment and hiring of female managers.
Canon MJ has acquired two-star Eruboshi (L Star) certification in February 2022. In 2023, we launched the
Empowerment Program, a training program for female chiefs(assistant managers), offering various career development
programs to applicants to support the development of their
future careers. Our action plan sets out our aim to have
women account for at least 6.0% of management positions
and at least 20.0% of chiefs and assistant managers, who

Balancing Work with Childcare and Nursing Care
Aiming to create an environment where employees can work
vibrantly while balancing work with childcare and nursing
care responsibilities, we have a variety of systems in placethat facilitate their career development and allow themto continue to work while focusing
on their personal lives. Both Canon
MJ and Canon IT Solutions haveacquired Platinum Kurumin certification for their excellence in providing
childcare support.

are candidates for management positions, by 2025.
The chart below shows the wage
difference between Canon MJʼs male and female employees.
Wages of Canon MJʼs Female Employees as a Percentage ofMale Employees
All employees

80.8%

Permanent employees

76.5%Part time and contract employees

122.9%

Employing People with Disabilities
Canon MJ strives to create a comfortable workplace environment where all employees, regardless of disability, canmake the most of their abilities and experience and toprovide more employment opportunities for people withdisabilities.

Employees with Disabilities(Non-Consolidated)

Employment rate (%)

148.5

2.20

142.0

2.15

147.5

2.32

policy, which clearly states that we conduct human rights
due diligence, operate a grievance mechanism, conduct
awareness training, and engage in dialogue with stakeholders in order to ensure respect for internationally recognizedhuman rights, including the prohibition of child and forcedlabor, the prevention of unreasonable restrictions on movement and excessive overtime work, and respect for freedomof association and the right to collective bargaining.

Promotion Structure
The Canon MJ Group established the Sustainability
Promotion Committee, chaired by the president & representative director, which discusses, makes decisions regarding,and reviews respect for human rights, one of the material
issues we identified. The committee deliberates and reports
on important matters to the Board of Directors. In addition,

the Sustainability Promotion Division, as the supervising
division, coordinates with relevant departments such as
the Human Resources Department and the Procurement
Department to gain insight into the current situation, andconsiders and executes initiatives to address any issues.

Human Rights Due Diligence

Period covered: January 1, 2023 to December 31, 2023

Number of employees(Number of people)

Based on the United Nations Guiding Principles on Businessand Human Rights, the Canon MJ Group is developing initiatives to promote respect for the human rights of its customers, employees, business partners, and all other stakeholders
involved in the Groupʼs business activities. We promoterespect for human rights by taking measures in accordancewith the Canon Group Human Rights Policy, which was formulated in 2021. We are carrying out activities based on this

139.0

2.29

138.0

2.36

In 2023, the Canon MJ Group identified any adverse impacts
on human rights arising from its business activities in accordance with the United Nations Guiding Principles on Businessand Human Rights, guidelines issued by the Japanese
Government, and other guidance. The Canon MJ Groupʼs
Sustainability Promotion Committee then held discussions

to pinpoint issues to tackle as a priority. Based on this, theSustainability Promotion Committee examined and decided
on countermeasures to be implemented in 2024 for different
rights holders. To reduce human rights risks even further, we
will continue to carry out initiatives based on our plan andconduct activities that lead to improvements.

Rights Holder
High-priority issues

Suppliers Contractors Employees

Discrimination basedon race, gender,
religion, and otherfactors
Harassment
Child labor●

Forced labor●

Customers/
Consumers

Countermeasures in 2024●

Create rules and guidelines on the communication of information such as advertising, PR/websites, and social
media, and ensure compliance●

Ensure all officers and employees are familiar with the Canon Group Code of Conduct●

Raise awareness through training and meetings to prevent harassment
Increase engagement through supplier questionnaire

●

2019

2020

2021

2022

2023

Excessive overtime
work

Have no overtime days (two days a week)/Provide management training to raise awareness about thoroughlymanaging working hours in their departments/Alert employees who might exceed the limit on overtime●●

Improve organizational
capabilities to enable diverse
human resources to thrive

Health and Productivity Management

The Canon MJ Group promotes initiatives to support thehealth of employees and realize health and productivity management based on the principle of “Health First” set forthin the Code of Conduct. Based on our Three-Year HealthManagement Plan, a medium-term plan first rolled out in
2010, and Health and Productivity Management Strategy
Map, formulated in 2022, we engage in health managementwith a focus on cancer, lifestyle disease, and mental health.
As a result of these efforts, 10 Canon MJ Group companies,
including Canon MJ, were selected under the 2024 Certified

Manage and raise awareness of logistics quality continuously, increase efficiency through improvement inbusiness operations, and mitigate work risks●●

Increase engagement through supplier questionnaire
Formulate Health and Productivity Management Strategy Map and seek to further promote health andproductivity management and to prevent occupational accidents●

KENKO Investment for Health Outstanding Organizations
Recognition Program, jointly sponsored by the Ministry of
Economy, Trade and Industry and Nippon Kenko Kaigi.

Occupational healthand safety/
Health hazards andaccidents●

Confirm equipment inventory and compliance with environmental laws, regulations and conventions and checkfor any upgrades of inventory equipment●

Review content of Guidelines for Appropriate Contracting and Induction Training for Staffing Agency Engineers,
raise awareness and hold study sessions about them●

Implement training and awareness-raising activities to prevent the recurrence or occurrence of occupational
accidents at construction subcontractors●●

Manage and identify quality problems and their levels in the market, and implement activities to prevent
recurrence or occurrence●

Confirm worldwide tendency towards tightening personal information protection rules and comply with rules on
the handling of cookie data●

Create rules and guidelines on the communication of information such as advertising, PR/websites, and social
media, and ensure compliance

Invasion of privacy* Please refer to pages 29-38 for initiatives related to human capital.

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Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

78

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Functional Strategy

Business Strategy

Sustainability Management

Promote responsible
supply chains

Procurement Activities

By disclosing our Basic Procurement Policy on our corporate website, we are committed to developing solid relationships with
suppliers and ensuring awareness of our fundamental approach to procurement activities. We also ensure that products and services are consistently procured at appropriate prices while complying with procurement-related laws and regulations and paying
due consideration to protecting the environment.
Through procurement-related initiatives, we will do what we uniquely can do to help solve social issues and build a sustainable
society, together with each one of our suppliers.

Procurement Basic Policy of the Canon MJ Group
1. We pursue safety and quality and strive to ensure the stable procurement of products and services at appropriate prices
in response to customer needs, for the purpose of driving business activities in a smooth, competitive manner.
2. We practice green procurement, or preferential procurement of environmentally friendly products and services, for the
purpose of protecting the global environment.
3. We strive to provide equal opportunities for transactions and procurement based on fair evaluations, in accordance withlaws and social norms.
4. We undertake procurement activities aimed at building trade relationships with suppliers that are to the long-term
benefit of both parties, with the aim of building a sustainable society.

Promote risk andcrisis management

Risk and Crisis Management

The Canon MJ Groupʼs risk management is discussed by the officer who oversees and promotes risk management, the Risk andCrisis Management Committee, and, depending on the nature of the risk, the Internal Controls Evaluation Committee or the
Quality Improvement Committee, among others. This leads to the implementation of various measures to address risks.

Areas of activity of the Risk and Crisis
Management Committee

Board of Directors

1. Preparation and set up of risk management systems
2. Preparation and set up of crisis management
systems (including BCP)
3. Raising and promoting awareness of corporate
ethics and compliance
4. Information security
5. Internal reporting response

At the Canon MJ Group, the Canon MJ Group Procurement
Regulations internally stipulate equal and fair trade, environmental considerations, and compliance with procurement-related laws and regulations. We regularly provide training
related to this to ensure appropriate, fair business dealings.

With new suppliers, we assess the potential risks prior to
engaging in business transactions and conclude basic agreements at the start of each transaction. In this way, we makesure they are committed to complying strictly with laws andordinances and to engaging in fair and honest transactions
that do not violate corporate ethics or erode social trust.

Promoting Green Procurement
For the Canon MJ Groupʼs products manufactured undercontract, we are working to eliminate hazardous chemical substances based on the Canon Green Procurement
Standards.
We confirm that our business partners have establishedproduct chemical management systems in accordance withthe above Standards. We also conduct surveys of raw materials, parts, and secondary materials of products manufactured under contract to check for environmentally hazardous
substances.

Responsible Mineral Procurement
The Canon MJ Group tackles the challenge of sourcing minerals responsibly in conflict-affected areas in accordancewith the Canon Group Basic Policy on Responsible Minerals
Sourcing. We ensure peace of mind for Canon productcustomers by requesting suppliers to confirm the origins ofminerals in their products and help us eliminate the use of
conflict minerals.

Management Committee

Risk and Crisis Management Committee
Chairperson: Director in charge of Group General Administration& Human Resources Management
Committee vice-chair : Senior Vice President in charge of Group IT
Members: Vice Presidents and above,
Group Executive of Corporate Planning Headquarters,
Group Executive of Brand Communication Headquarters,
and Group Executive of Legal and Intellectual Property
Headquarters

Status and Plan of Key Initiatives for Risk and Crisis Management
2023

2024
Metrics (KPIs)

Evaluation

Metrics(KPIs)

Ensure rigorous risk and crisis management

Hold Risk and Crisis Management Committee meetings at least four times a year,
in principle○

Ongoing

Train employees on risk and crisis management

Provide training on compliance, the BCP, and information security, and quality to
all employees at least once a year○

Ongoing

Address information security risks

Conduct cybersecurity training at least once a year○

Ongoing

Key Initiatives

Ensuring Compliance in Procurement

President & representative director

Raising and Promoting Awareness of Corporate Ethics and Compliance
At the Canon MJ Group, we view compliance not only as theobservance of laws and regulations, but also as upholding
laws and social rules, maintaining social justice, and continuing to meet the expectations of society based on thespirit of integrity (being sincere, honest, and earnest). To

ensure that each individual always acts in good faith withhigh ethical standards and a law-abiding spirit, we promotecompliance activities from the perspective of raising awareness, instilling knowledge, and undertaking organizational
measures.

Promoting Information Security
The Canon MJ Group is working to strengthen its information security infrastructure in order to contribute to the realization of a safe, secure, and sustainable society by meansof business activities that resolve the issues of customers
and society through the power of people and ICT. The Grouptakes measures against cyberattacks and other information
security risks and regards the appropriate handling of information assets used in business activities as an importantmanagement priority. We strive to continue to improveinformation security through the use of third-party certifications, such as the Information Security Management System(ISMS) Conformity Assessment Scheme and the PrivacyMark
System. To strengthen information security governance, theRisk and Crisis Management Committee promotes an information security management system involving all employees
through information security policy and strategy formulation,
monitoring, and assessment.

Quality Management
Conducting Supplier Questionnaire
To achieve a responsible supply chain, we conduct questionnaires for major suppliers with the aim of reducing the environmental impact and preventing/mitigating human rights
violations, and gaining insight into the actual state of affairsof the initiatives suppliers are carrying out.

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Canon Marketing Japan Inc. | Integrated Report 2023

Going forward, we will engage with each supplier as necessary based on the results of the questionnaire.

The Canon MJ Group is constantly working to enhancequality so that it continues to provide safe, reliable, andhigh-quality products, services, and support to its customers and earn high levels of customer satisfaction. In
proceeding with our business transformation with the IT
solutions business at the core of our business growth, wehave declared our commitment to continuing to address

customer needs by means of our quality policy, which we
work to ensure awareness of in all of our employees on aregular basis. Moreover, we have established a quality management system that combines the requirements of ISO
9001, the international quality standard, with the Canon MJ
Groupʼs unique framework in an effort to improve customer
satisfaction.

Canon Marketing Japan Inc. | Integrated Report 2023

80

The Canon MJ Groupʼs Management Strategy

Overall Strategy

Business Strategy

Functional Strategy

Sustainability Management

Representative Examples of the Social Value Created
Resolving Social Issues through Business Activities
Enrich lives

Pocket-Sized Telephoto-Type Camera Contributes to a More Fulfilling Life

PowerShot ZOOM is a pocket-sized telephoto-type camera that users can lookthrough like a telescope and also take photos and videos. For example, when
watching a sports game, this enables the user to zoom in on a player by looking
through the camera, and then take a picture of that image. As for watching birds
or other wildlife, users can observe and record their behavior in their natural
habitat while maintaining a sufficient distance. Even when recording daily life
with their family, users can easily take pictures of their children playing and taking part in sporting events from a distance away. PowerShot ZOOM contributes
to a more fulfilling life, as it enables users to capture crucial moments without
missing them, while enjoying scenery that cannot be seen with the naked eye.
Achieve diverse working styles (work) through increased productivity

Resolving Labor Shortages in Nursing Care and Welfare Services by Reducing Workload throughNursing Care Solutions
As the elderly population grows, demand for nursing care and welfare services
is expanding rapidly. Against this backdrop, the labor shortage is becoming
more severe, causing reductions in employee workloads to become a morepressing issue. The Makasete IT DX Series is a one-stop nursing care solutionthat includes the planning, selection, installation, training, operation, and maintenance of equipment and software necessary for improving work efficiency
using ICT, thereby helping to reduce workloads. This encourages the retentionof employees and creates time to interact with facility users, their core duties,
thus contributing to the provision of a fulfilling work environment.
Realize a safe and secure society

Contributing to Disaster Prevention and Mitigation in Local Communities through Smoke
Detection AI and Water Level Measurement AI Services
To create disaster-resilient communities, the national and local governments arepromoting disaster prevention and mitigation using disaster prevention information systems, high-altitude cameras, and various sensor equipment. However, inmost cases, the operation of the high-altitude camera is started after receiving
notification of a disaster. This causes issues, such as delays in disasters being
reported after they occur, and difficulties with confirming the condition of
built-up urban areas. Bind Vision, our image-processing AI collaboration platform, offers AI that can detect smoke and measure water levels. It can detect
abnormalities using AI from images taken and send email notifications, enablinga rapid response in the event of a disaster. This contributes to the realization ofa safe and secure society.

Strengthening Our Management Foundation
Environment

Received Third-party Assurance for Greenhouse Gas (GHG) Emissions

To ensure the reliability of environmental data, the Canon MJ Group conducted third-party verification of its 2023 greenhouse gas (GHG) emission data (Scope 1, 2, and 3) in compliance with the international standard
ISO 14064-3, and received an assurance statement from certification
authority LRQA Limited.
▶ For more information, please refer to our news release below.

https://corporate.canon.jp/newsrelease/2024/pr-0326b(in Japanese only)

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Canon Marketing Japan Inc. | Integrated Report 2023

Social Contribution Activities
Regional and cultural revitalization

Smile for the Future Project for Regional Revitalization in Disaster-stricken Areas
and Nurturing Childrenʼs Hearts
Since January 2012, the Canon MJ Group has been implementing the Smile for
the Future project, based on the concept of enjoying photography, as part ofefforts to promote reconstruction and revitalization in the three prefectures
affected by the Great East Japan Earthquake. This program utilizes the Canon
MJ Groupʼs photography expertise and provides opportunities for a wide rangeof people, from children to adults, to take photos and experience photo printing
under the guidance of a photographer teacher. Through this project, we help
foster communication between people and nurture the hearts of children.

Personnel development

School Building Memorials Project for Cultivating the Creativity and Self-Expression of Children
Since June 2014, the Canon MJ Group has been collaborating with Pentel Co.,
Ltd. to carry out the School Building Memorials project to help create memories of elementary school buildings that are to be demolished and replaced or
merged with other schools. Children draw pictures using the school building asa canvas, and document this work and creation process using a camera. These
photos are then blown up, printed, and donated. Through this project, we arecontributing to fostering childrenʼs awareness of the arts field, as well as toregional revitalization through interaction with local residents.
Safe and secure society

Aiming for a Society in which AEDs can Save as Many Lives as Possible

In 2009, the Canon MJ Group began activities to promote proper AED placement and to promote awareness and training. In 2019, Canon System & Support
introduced AEDs at its business sites throughout Japan. At some locations,
AEDs installed outdoors and in company-owned vehicles have been madeaccessible to local residents. Just as important as AED placement is training toincrease the number of people who can use an AED. We provide CPR (cardiopulmonary resuscitation) training by about 400 certified instructors not only
to employees, but also to customers and business partners nationwide. Morethan 230,000 people have taken the course so far. We are currently working toachieve the target of 300,000 people.

Health and productivity management

Workstyle reform

Selected under the 2024 KENKO Investment for
Health Stock Selection

Awarded a 4.5-Star Rating in the 7th Nikkei
Smart Work Management Survey

At the Canon MJ Group, we believe that efforts to maintainand improve employeesʼ health based on the principle of“Health First” set forth in the Canon Code of Conduct lead
not only to the happiness of employees and their families,
but also to the maximization of individual performance,
thereby contributing to the growth and sustainability of
the company. Canon MJ was included in
the 2024 KENKO Investment for Health
Stock Selection, jointly selected by the
Ministry of Economy, Trade and Industry
and the Tokyo Stock Exchange, as acompany that excels in health and productivity management.

Canon MJ was awarded a 4.5-star rating in the 7th Nikkei
Smart Work Management Survey, exceeding the 4.0-starrating in the previous survey. We received higher points
than last year for our technology utilization, innovation
promotion system, and market expansion areas. As aresult, in the three evaluation elements, we received an S
rating for “utilization of human resources,” an S++ ratingfor “innovation,” exceeding
last yearʼs S rating, and an
S+ rating for “market development,” up from last yearʼs
S rating.

Canon Marketing Japan Inc. | Integrated Report 2023

82

Data

10-Year Consolidated Financial Summary(Millions of yen) (Thousands of U.S. dollars*3)

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2023

¥ 659,432¥ 646,003¥ 629,314¥ 632,190¥ 621,591¥ 621,134¥ 545,060¥ 552,086¥ 588,132¥ 609,473$ 4,292,063

Operating income

25,08826,647

27,67630,40728,94132,44031,31839,69949,94752,495

369,683

Net income before income taxes

25,85827,49828,90330,91930,70833,303

33,46343,09551,52353,057

373,641

Net income attributable to owners of the parent

16,03015,67018,162

20,68020,82622,25021,99729,42035,55236,493

256,993

Equity270,061

277,008

280,473

297,032

303,028

324,476

345,459

374,677

400,372435,509

3,066,965

Total assets

479,747

486,502497,728

510,833

498,791

503,699506,605

526,418

543,740

557,366

3,925,113

Cash flows from operating activities

38,19129,73033,30628,885

16,99022,05338,49032,75737,72528,183

198,472

Cash flows from investing activities(15,221)(44,536)(19,461)

7,964(10,526)(94,585)(26,175)(15,894)(10,107)(10,012)(70,507)

Cash flows from financing activities(4,545)(6,225)(6,086)(7,145)(7,839)(8,557)(6,587)(9,160)(11,260)(13,261)(93,387)

120,607

99,574

107,286

136,980

135,572

54,49460,131

68,02984,632

89,691

631,627

For the year:
Net sales

At year-end:

Cash flows:

Cash and cash equivalents at end of year

Per share of common stock:(Yen)(U.S. dollars*3)¥ 2,082.60¥ 2,136.22¥ 2,162.96¥ 2,290.70¥ 2,336.97¥ 2,502.39¥ 2,664.20¥ 2,883.71¥ 3,081.07¥ 3,352.30

Net income*1

123.62120.84140.06

159.48160.61

171.60169.65226.88274.16281.41

1.98

Cash dividends*2

40.00

45.00

50.00

60.00

60.00

60.00

60.00

90.00

90.00

120.000.85

Equity$23.61

Notes: *1 Net income per share is based on the weighted-average number of shares of common stock outstanding during the respective fiscal years.
*2
Cash dividends per share are the amounts applicable to the respective fiscal years, including dividends to be paid after the end of the respective fiscal years.
*3
The figures have been presented in U.S. dollars by translating all Japanese yen amounts at ¥142 to US$1, the prevailing exchange rate as of December 31, 2023.

Operating Income andOperating Margin

Net Sales
Net Sales (Billions of yen)
659

646

629

632

622

Operating Income (Billions of yen)
Operating Margin (%)

621
545

552

588

50

609

’16

’17

’18

52
340

3.8

’15

Total Current Assets (Billions of yen)
Total Current Liabilities (Billions of yen)
Current Ratio (Times)
348

362

398
383

377

380

40

25

’14

Total Shareholdersʼ Equity and ROE

Working Capital’19 ’20 ’21 ’22 ‘23

(FY)

’14

27

28

30

29

32

3.5
31

3.0
8.5

8.6

7.2
4.1

’15

4.4

’16

4.8

’17

4.7

’18

5.2

5.7

’19 ’20 ’21 ’22 ‘23

(FY)

2.1

2.2

165

160

’14

2.3

396
3.7

420
3.9

419

374

3.8
270

3.1

’15

’16

277

280

297

303

324

’17

130

’18

120

108

107

108

5.7

6.5

7.2

480

487

498

511

56.3 56.9 56.4 58.1
8.2

6.9

400

7.1

499

504

345

2.5

157

Total Assets (Billions of yen)
Total Shareholders’ Equity Ratio (%)

Total Shareholders’ Equity (Billions of yen)
ROE (%)
435

6.1
157

Total Assets andTotal Shareholdersʼ Equity Ratio

9.2

60.8

64.4

507
68.2

526
71.0

544

73.5

(FY)

’14

’15

Net Income Attributable to Ownersof the Parent (Billions of yen)
36
Net Income Margin (%)

557

29

21

8.7

16

16

21

22

22

4.0

18

6.6
5.3

’16

’17

’18

’19 ’20 ’21 ’22 ‘23

(FY)

’14

’15

’16

’17

’18

36

78.0

111

’19 ’20 ’21 ’22 ‘23

Net Income Attributable to
Owners of the Parent andNet Income Margin’19 ’20 ’21 ’22 ‘23

(FY)

2.4

2.4

’14

’15

6.0

6.0

2.9

3.3

3.4

3.6

’16

’17

’18

’19 ’20 ’21 ’22 ‘23(FY)

Note: The yen amounts indicated on the graphs above have been rounded down to the nearest billion yen.

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84

Data

Consolidated Balance Sheet
Canon Marketing Japan Inc. and Consolidated Subsidiaries
December 31, 2023

(Millions of yen)

2023

(Millions of yen)

2022

2022

¥ 45,552¥ 47,376

100

46

8,233

7,453

LIABILITIES AND EQUITYASSETS

CURRENT LIABILITIES:CURRENT ASSETS:
Cash and cash equivalents¥ 89,691¥ 84,632

Notes and accounts payable-trade

Notes accounts receivable-trade and contract assets

111,650

110,432

Current portion of long-term lease obligations

Inventories

39,82638,521

Accrued income taxes

Short-term loans receivable

170,005

180,013

Consumption taxes payable

6,713

5,426

7,482

6,154

Accrued expenses

16,586

16,628(43)(44)

Accrued bonuses

3,223

3,440

418,611

419,708

Accrued directorsʼ bonuses

107

119

Accrued product warranties

269

243

52

115

Other current assets
Allowance for doubtful receivables
Total current assets
PROPERTY, PLANT AND EQUIPMENT:Land

28,36028,360Accrued loss on contracts

Buildings and structures

82,30780,189Other current liabilities

29,75627,216

Machinery and vehicles

167

167

Total current liabilities

110,591

108,062

Furniture and ﬁxtures

15,703

15,225

LONG-TERM LIABILITIES:

Rental assets

34,46335,913

207

74

Long-term lease obligations

Lease assets

24

40

Deferred tax liabilities

178―

Construction in progress

271

897

Allowance for long-term continuous service rewards

723

749

161,295

160,791

Accrued pension and severance cost

7,760

32,142(76,270)(75,514)

Other long-term liabilities

2,398

2,341

85,02585,277

Total long-term liabilities

11,26635,30673,30373,30382,727

82,82759

29

256,880

233,355(2,093)(2,093)

6,861

5,203

87

(15)

Total
Accumulated depreciation
Net property, plant and equipment

COMMITMENTS AND CONTINGENT LIABILITIESINTANGIBLE ASSETS:
Software

5,601

5,365

Goodwill

4,868

327

Customer-related intangible assets

3,409

―

302

303

Facility utilization rights
Other intangible assets

20

Total intangible assets

14,182

5,995

INVESTMENTS AND OTHER ASSETS:EQUITY:SHAREHOLDERSʼ EQUITY:
Common stock:
Authorized, 299,500,000 shares; issued, 131,079,972 shares as of December 31,
2023 and 2022
Capital surplus

16,315

13,312

10

16

Retained earnings

Prepaid pension and severance costs

10,987

393

Treasury stock, at cost; 1,401,615 shares in 2023 and 1,404,790 shares in 2022

Lease deposits

2,559

2,768

Deferred tax assets

5,917

12,904

Unrealized gain (loss) on available-for-sale securities

Other investments and other assets

3,962

3,555

Deferred gain (loss) on derivatives under hedge accounting
Foreign currency translation adjustments

Investments in securities
Long-term loans receivable

Allowance for doubtful receivables
Total investments and other assets
Total assets

(202)

(188)

39,54832,760¥ 557,366¥ 543,740

Stock acquisition rights

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Defined retirement benefit plans
Total
NON-CONTROLLING INTERESTS
Total equity
Total liabilities and equity

85

2023

Canon Marketing Japan Inc. | Integrated Report 2023

344

294

16,611

6,668

434,779

399,571730

801

435,509400,372¥ 557,366¥ 543,740

Canon Marketing Japan Inc. | Integrated Report 2023

86

Data

Consolidated Statement of Income

Consolidated Statement of Comprehensive Income

Canon Marketing Japan Inc. and Consolidated Subsidiaries
Year Ended December 31, 2023

Canon Marketing Japan Inc. and Consolidated Subsidiaries
Year Ended December 31, 2023

(Millions of yen)

2023

2022

¥ 609,473¥ 588,132

COST OF SALES:

404,980

388,843

Gross profit

204,493

199,289

Unrealized gain (loss) on available-for-sale securities

151,998

149,342

52,49549,947

NET SALESSELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Operating income(Millions of yen)

2023

2022

¥ 36,584¥ 35,627

1,659(2,673)

Deferred gain (loss) on derivatives under hedge accounting

102

(38)

Foreign currency translation adjustments

65

194

9,943

3,600

11,7691,083¥ 48,353¥ 36,710¥ 48,247¥ 36,612

106

98

NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS):

OTHER INCOME (EXPENSES):

Defined retirement benefit plans

Interest income

383

300

Dividend income

238

210

Interest expense

(11)

(12)

Insurance income

457

459

Foreign exchange gains―

29

Owners of the parent

Foreign exchange losses(6)―

Non-controlling interests

Loss on investments in partnership

(31)

(29)

Gain on sales of long-lived assets

33Gain on sales of investments in securities

114

730

Loss on sales of investments in securities

(3)

(18)

Loss on sales of shares of subsidiaries and associates

(159)

―

Loss on sales and disposal of long-lived assets

(480)

(124)

Loss on impairment of investments in securities

―

(58)

Other, net

57

86

Total other income (expenses)

562

1,576

Net income before income taxes

53,05751,523Current

15,493

14,244

Deferred

980

1,652

16,473

15,89636,58435,62791

75

36,49335,552¥ 36,584¥ 35,627

Total other comprehensive income
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME ATTRIBUTABLE TO:

INCOME TAXES:

Total income taxes
Net income
NET INCOME ATTRIBUTABLE TO:
Non-controlling interests
Owners of the parent
Net income(Yen)

PER SHARE DATA:
Net income attributable to owners of the parent-Basic¥ 281.41¥ 274.16-Diluted

281.34274.10120.0090.00

Cash dividends applicable to the year

87

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88

Data

Consolidated Statement of Changes in Equity

Canon Marketing Japan Inc. and Consolidated Subsidiaries
Year Ended December 31, 2023

(Thousands of shares/Millions of yen)

(Millions of yen)

Shareholdersʼ equity
Common stock
SharesAmount131,080¥ 73,303¥ 82,824̶Net income attributableto owners of the parent

̶

̶

̶

Cash dividends̶̶

Purchase of treasury stock̶

Disposition of treasury stock

Retainedearnings

Treasury stock

Unrealized
gain (loss) on
available-forsale securities

Deferredgain (loss) on
derivatives
under hedge
accounting¥ 7,873

¥ 23

¥ 126

¥ 3,068¥ 373,950¥ 727¥ 374,677

Foreigncurrencytranslation
adjustments

Deﬁnedretirement
beneﬁt plans

Noncontrollinginterests

Total

Total equity

SharesAmount¥ 208,825(1,405)¥ (2,092)

̶

35,552̶̶

Net income attributableto owners of the parent

̶

̶

̶

̶

35,552

̶

35,552̶̶

(11,022)̶̶Cash dividends

̶

̶

̶

̶

(11,022)̶

(11,022)

̶

̶

̶

̶

(1)

(4)

Purchase of treasury stock

̶

̶

̶

̶

(4)

̶

(4)

̶

̶

3

̶

̶

2

3

Disposition of treasury stock

̶

̶

̶

̶

6

̶

6

Additional purchase ofshares of consolidated
subsidiaries

̶

̶

̶

̶

̶

̶

̶

Additional purchase ofshares of consolidated
subsidiaries

̶

̶

̶

̶

̶

̶

̶

Net income attributable tonon-controlling interests

̶

̶

̶

̶

̶

̶

̶

Net income attributable tonon-controlling interests

̶

̶

̶

̶

̶

75

75

Cash dividends paid to
non-controlling interests

̶

̶

̶

̶

̶

̶

̶

Cash dividends paid to
non-controlling interests

̶

̶

̶

̶

̶

(24)

(24)

Net change in the year

̶

̶

̶

¥ 29

̶

̶

̶

Net change in the year

(2,670)

(38)

168

3,600

1,089

23

1,112

131,080

73,30382,82729

233,355(1,404)(2,093)BALANCE AS OF JANUARY 1, 2023

5,203

(15)

294

6,668

399,571801

400,372

Net income attributable toowners of the parent

̶

̶

̶

̶

36,493̶̶

Net income attributable toowners of the parent

̶

̶

̶

̶

36,493

̶

36,493

Cash dividends

̶

̶

̶

̶

(12,968)̶̶Cash dividends

̶

̶

̶

̶

(12,968)̶

(12,968)

Purchase of treasury stock

̶

̶

̶

̶

̶

(1)

(5)

Purchase of treasury stock

̶

̶

̶

̶

(5)

̶

(5)

Disposition of treasury stock

̶

̶

5

̶

̶

3

5

Disposition of treasury stock

̶

̶

̶

̶

10

̶

10

Additional purchase of sharesof consolidated subsidiaries

̶

̶

(105)

̶

̶

̶

̶

Additional purchase of sharesof consolidated subsidiaries

̶

̶

̶

̶

(105)

̶

(105)

Net income attributable tonon-controlling interests

̶

̶

̶

̶

̶

̶

̶

Net income attributable tonon-controlling interests

̶

̶

̶

̶

̶

91

91

Cash dividends paid to noncontrolling interests

̶

̶

̶

̶

̶

̶

̶

Cash dividends paid to noncontrolling interests

̶

̶

̶

̶

̶

(22)

(22)

Net change in the year

̶

̶

̶

30

̶

̶

̶

Net change in the year

1,658

102

50

9,943

11,783(140)

11,643131,080¥ 73,303¥ 82,727¥ 59¥ 256,880(1,402)¥ (2,093)

BALANCE AS OF DECEMBER 31, 2023

¥ 6,861

¥ 87

¥ 344

¥ 16,611¥ 434,779¥ 730¥ 435,509

BALANCE AS OF JANUARY 1, 2022

BALANCE AS OF JANUARY 1, 2023

BALANCE AS OF DECEMBER 31, 2023

89

Stock
acquisitionrightsCapitalsurplus

Accumulated other comprehensive income (loss)

Canon Marketing Japan Inc. | Integrated Report 2023

BALANCE AS OF JANUARY 1, 2022

Canon Marketing Japan Inc. | Integrated Report 2023

90

Data

Consolidated Statement of Cash Flows

Canon Marketing Japan Inc. and Consolidated Subsidiaries
Year Ended December 31, 2023

(Millions of yen)

2023

(Millions of yen)

2022

2023

CASH FLOWS FROM OPERATING ACTIVITIES:

2022

CASH FLOWS FROM FINANCING ACTIVITIES:¥ 53,057¥ 51,523

9,739

9,593

Amortization of goodwill

199

30

Payments for purchases of treasury stock

Amortization of customer-related intangible assets

303

̶

Dividends paid

(7)

111

Increase (decrease) in accrued pension and severance costs(13,348)(3,480)Decrease (increase) in prepaid pension and severance costs

10,387(46)

Contribution of cash to retirement beneﬁt trust(18,000)̶

Increase (decrease) in accrued bonuses

(299)

(716)

Loss (gain) on sales and disposal of property, plant and equipment, net

152

Loss (gain) on sales of investments in securities
Loss on impairment of investments in securities

Repayments of finance lease obligations

(13)

(56)

Payments for purchases of additional shares of a subsidiary

(260)

̶

(5)

(4)

(12,961)(11,020)

Dividends paid to non-controlling interests

(22)

(24)

Other, net

̶

(156)

(13,261)(11,260)

149

245

Net increase (decrease) in cash and cash equivalents

5,059

16,603108

Cash and cash equivalents as of beginning of year

84,632

68,029

(111)

(712)

Cash and cash equivalents as of end of year

¥ 89,691¥ 84,632

̶

58

Loss (gain) on sales of shares of subsidiaries and associates

159

̶

Loss (gain) on investments in partnership31

29

Decrease (increase) in notes and accounts receivable(61)(2,895)Decrease (increase) in inventories(691)(3,280)

Increase (decrease) in notes and accounts payable-trade(2,503)

986

Income taxes paid

(14,810)(13,820)

3,986

236

28,18337,725(8,343)(8,890)20

24(1,961)(894)

Payments for purchases of investments in securities

(744)

(676)

Proceeds from sales of investments in securities

244

1,330

Payments for purchases of shares of subsidiaries(7,619)(210)

Decrease (increase) in short-term loans receivable, net

10,013

11

Payments for acquisition of businesses

(750)

̶

Other, net

(872)

(802)

(10,012)(10,107)

Net income before income taxes
Depreciation and amortization

Increase (decrease) in allowance for doubtful receivables

Other, net
Net cash provided by operating activities

Net cash used in financing activities
Eﬀect of exchange rate changes on cash and cash equivalents

CASH FLOWS FROM INVESTING ACTIVITIES:Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of intangible assets

Net cash used in investing activities

91

Canon Marketing Japan Inc. | Integrated Report 2023

Canon Marketing Japan Inc. | Integrated Report 2023

92

Data

ESG Data (As of December 31, 2023)
ENVIRONMENT*1

GHG emissions (Scope 1 and 2) (t-CO2)
Scope 1*2
Scope 2*3 (market-based)
Scope 2*3 (location-based)
GHG emissions (Scope 3) (t-CO2)*4
Category 1. Purchased goods and services*5
Category 2. Capital goods*6
Category 3. Fuel- and energy-related activities not includedin Scope 1 or 2*7
Category 4. Upstream transportation and distribution*8
Category 5. Waste generated in operations*9
Category 6. Business travel*10
Category 7. Employee commuting*11
Category 8. Upstream leased assets*12
Category 9. Downstream transportation and distribution*13
Category 10. Processing of sold products
Category 11. Use of sold products*14
Category 12. End-of-life treatment of sold products*15
Category 13. Downstream leased assets*16
Category 14. Franchises
Category 15. Investments
Total
Water intake and wastewater discharge of applicable buildings (m3)*17
Water intake (water supply) Public water
Recycled water
Groundwater
Total
Wastewater discharge
Sewerage system
Total
Waste emissions (t)Total emissions
ESG Data Notes

*1

*2
*3
*4

*5

*6
*7
*8
*9

93

The data covers 15 companies including consolidated subsidiaries in Japan and overseas.
(Canon Marketing Japan Inc., Canon IT Solutions Inc., Qualysite Technologies Inc., Canon
Software America, Inc., Canon IT Solutions (Thailand) Co., Ltd., Material Automation(Thailand) Co., Ltd., TCS, Canon System & Support Inc., A&A Co., Ltd., Canon Production
Printing Systems Inc., Canon ITS Medical Inc., Canon BizAttenda Inc., Canon BusinessSupport Inc., QB5 Inc. and Canon Customer Support Inc.)
Scope 1: Direct emissions (town gas, liquefied petroleum gas, diesel, kerosene, gasoline, etc.)
Scope 2: Intermediate emissions (electricity, steam, etc.)
Values are rounded off to the nearest decimal place and therefore the “total” values may differ from the simple sums. In 2022, the scope of data was expanded to cover companies indicated in *1 and the method of calculation was revised. Results for 2022 are based on therevised calculation logic. Results for 2022 based on the previous method can be accessedon our corporate website.
https://canon.jp/corporate/en/sustainability/esgdata
Calculated by multiplying the Groupʼs purchases by per-unit emissions of individual purchases based on the number obtained by multiplying the carbon footprint of products (CFP) dataof core products by the number of products. In the case of businesses for which CFP data is
not available, calculated by multiplying the amount purchased by per-unit intensity indicatedon the Input-Output Tables of the Ministry of Economy, Trade and Industry
Calculated by multiplying the amount of capital goods purchased by the Group by the intensity indicated on the Input-Output Tables of the Ministry of Economy, Trade and Industry.
Calculated by multiplying the amount of fuel and energy consumed by the Group by theintensity at the time of fuel procurement (resource extraction, production, and delivery).
Deliveries to customers are calculated using the fuel consumption method. Deliveries
between warehouses are calculated using the ton-kilometer method.
Calculated by multiplying the Groupʼs total volume of waste, excluding the volume of used
Canon products previously recorded under Category 12 “End-of-life treatment of sold products,” by the emissions intensity by type of waste and treatment method.

Canon Marketing Japan Inc. | Integrated Report 2023

2019

2020

2021

2022

2023

7,275
43,501

5,765
45,7335,800
51,952

5,916
49,4895,664
47,21173,067313,133
65,341

284,892
41,807632,093
38,966

648,989
40,853615,992
36,335

8,993

9,061

11,34912,363

13,773

4,175
153
12,032
6,915
0
1,073
0
86,30915,118461
00513,703

3,785
93
6,119
7,445
0
967
0
83,331
16,269518
00454,287

4,944
975
2,476
8,712
0
1,450
0
87,844
21,059366
00810,234

6,095
1,613
7,513
7,132
0
3,338
0
106,210
22,605647
00857,358

7,685
1,631
9,075
6,284
0
2,814
0
95,44322,4241,194
0
0812,651

114,389
19,45521,895
155,739
91,137
91,137

115,863
13,99922,001
151,863
82,50882,508124,891
9,596
19,750154,237
75,48075,480125,183
10,54318,486
154,21277,36477,364

118,247
11,704
18,652
148,603
79,01579,01521,098

*10
*11

*12
*13

*14

*15

*16

*17

*18
*19
*20
*21

15,67014,075

14,87916,375

Calculated by multiplying the amount paid for each mode of transportation during the business trip by per-unit emissions of each mode.
Calculated by multiplying the amount paid for each mode of transportation during thecommute by the emissions intensity of each mode. In the case of private car commuting,calculated by converting the total mileage to fuel usage and multiplying it by the intensity
for fuel combustion.
Encompasses leased buildings and vehicles and included in Scope 1 and 2
Calculated by determining average transportation distances and weights of distributed
products for each region and multiplying it by the intensity of transportation. Storage iscalculated by multiplying the average annual inventory volume by energy intensity.
Calculated by determining the lifetime power consumption for main products and multiplying it by the CO2 emission factor published by The Electric Power Council for a Low Carbon
Society.
Calculated by multiplying the CFP data of main products by the number of these products.
In the case of businesses for which CFP data is not available, calculated by multiplying thesales ratio.
Calculated by determining annual power consumption of leased products and multiplying
it by the CO2 emission factor published by The Electric Power Council for a Low Carbon
Society.
Scope of data for water intake and wastewater discharge of applicable buildings covers
Canon Marketing Japan (Headquarters, Konan office, Makuhari office, Aomori office, andKumamoto office), Canon IT Solutions (Nishi-Tokyo office), and Canon Customer Support(Akita office), which account for roughly 46% of the total floor area ratio.
The figure in parentheses indicates the number of men.
The figure in parentheses indicates the percentage of leave taken by men.
The figure in parentheses indicates the percentage of Group employees returning to workthat were men.
The average age of directors and Audit & Supervisory Board members as of December 31 ofeach year.

SOCIETY

Group employees
Number of men
Number of women
Total
Percentage of female Group employees (%)
Group management
Number of men
Number of women
Total
Percentage of female Group managers (%)
Percentage of Group employees taking paid leave (%)
Number of Group employees taking childcare and family care leave*18
Childcare leave
Family care leave
Percentage of Group employees taking childcare leave (%)*19
Percentage of Group employees returning to work
after taking childcare and family care leave*20
Childcare leave
Family care leave
Number of Group retirees and reemployed workers
Number of retirees
Number of reemployed workers
Average age of Group employees
Average number of years of service of Group employees
Number of employees with disabilities (non-consolidated)
Number of employees
Percentage of employees (%)
GOVERNANCE

Number of directors
In-house (men)In-house (women)
In-house total
Outside (men)Outside (women)
Outside total
Total
Number of Audit & Supervisory Board members
In-house (men)In-house (women)
In-house total
Outside (men)Outside (women)
Outside total
Total
Average age of corporate officers*21
Number of Board of Directorsʼ and Audit & Supervisory Board meetings
Number of Board of Directorsʼ meetings
Number of Audit & Supervisory Board meetings
Number of executive officers

2019

2020

2021

2022

2023

13,8903,110
17,00018.3

13,385
3,159
16,54419.1

13,007
3,213
16,22019.8

12,682
3,291
15,973
20.6

12,666
3,423
16,089
21.3

3,037
97
3,134
3.1
74.5

2,898
106
3,004
3.5
64.5

2,785
108
2,893
3.7
63.6

2,683
117
2,800
4.2
73.5

2,668
156
2,824
5.5
66.9

144（18）4（0）−143（26）9（5）−136（43）3（3）−145（62） 175（89）
5（3）
1（0）
49.5 （28.7） 66.3（46.4）

82.4（100.0） 95.6（100.0） 95.8（100.0） 96.1（100.0） 93.3（97.4）
75.0 （−） 100.0（100.0） 100.0（100.0） 100.0（100.0） 100.0 （−）
319
163
44.7
19.6

304
192
44.8
19.6

469
239
45.5
19.5

478
286
45.7
20.0

475
283
45.8
19.6

148.5
2.20

142.0
2.15

147.5
2.32

139.0
2.29

138.0
2.36

2019

2020

2021

2022

2023

4
0
4
2
0
2
6

4
0
4
2
0
2
6

4
0
4
2
0
2
6

4
0
4
3
0
3
7

4
0
4
2
1
3
7

2
0
2
3
0
3
5
63.4

2
0
2
3
0
3
5
62.3

2
0
2
3
0
3
5
62.6

2
0
2
3
0
3
5
63.3

2
0
2
3
0
3
5
63.7

16
20
22

18
17
23

16
17
23

13
17
23

13
16
20

Canon Marketing Japan Inc. | Integrated Report 2023

94

Data

Corporate Data/Investor Information
The Canon MJ Group (as of March 31, 2024)

Third-Party Assessments/Awards Received/Selection for Indexes
Canon MJ has been selected for the FTSE4Good Index Series for 20 consecutive years since fiscal 2004 and for the FTSE
Blossom Japan Index for seven consecutive years since fiscal 2017. In addition, we have been included in numerous indexes,
including the SOMPO Sustainability Index for 12 consecutive years since 2012 and the MSCI Japan ESG Select Leaders Index, ageneral ESG index developed by MSCI Inc., for six consecutive years since 2018.

Position within the Canon Group
Canon Marketing Japan Inc.
Markets Canon products and services in Japan andprovides its unique IT solutions.

Canon
EuropeCanon
Americas

Canon
Marketing Asia

Canon
MarketingJapan

Canon Inc.

Research, development,
and manufacture ofCanon products

Canon
Australia

Segment

Canon MJ Included in the JPX-Nikkei Index 400
In August 2023, Canon MJ was selected, for the first time,
to be listed in the JPX-Nikkei Index 400 which is jointly calculated by the Japan Exchange Group and Nikkei Inc.
The JPX-Nikkei Index 400 is composed of companies withhigh appeal for investors, which meet the requirements ofglobal investment standards, such as efficient use of capitaland investor-focused management perspectives. The index
was developed to promote the attractiveness of Japanesecompanies both in Japan and overseas, to encourage sustained improvements in corporate value and to revitalize thestock market.

Company Name

Canon IT Solutions Inc., Qualysite Technologies Inc.,Enterprise Business Unit

Canon Software America, Inc., Canon IT Solutions (Thailand) Co., Ltd.,
Material Automation (Thailand) Co., Ltd., and TCS Inc.
Canon System & Support Inc. and A&A Co., Ltd.

Area Business Unit
Professional
Business Unit

Production Printing

Canon Production Printing Systems Inc.

Healthcare

Canon ITS Medical Inc.

BPO Services

Primagest, Inc., dcWORKS, Inc., and Leap, Inc.

Service & Support

Canon Customer Support Inc.

Group Headquarters

Canon Marketing Japan Future Investment Limited Liability Partnership

The Group comprises 19 consolidated subsidiaries.

95

Canon BizAttenda Inc., Canon Business Support Inc., QB5 Inc.,

Canon Marketing Japan Inc. | Integrated Report 2023

Canon MJ Ranked atop Nikkei Computer Customer
Satisfaction Survey for 11th Consecutive Year
Canon MJ was ranked No. 1 in the Nikkei Computer
Customer Satisfaction Survey 2023-2024 in the security
products category. We have been ranked atop for 11 consecutive years since the category was created in 2013.
In the Nikkei Computer Customer Satisfaction Survey
2023-2024, personnel responsible for implementing products and services evaluated the levelof satisfaction with IT vendors in all
23 categories of IT-related products
and services for businesses.

Canon MJ Listed in “Greatest IR Improvement PremiumCompanies” and “Best Continual IR Efforts PremiumCompanies” by the Japan Investor Relations Association
Canon MJ was selected as one of “Greatest IR Improvement
Premium Companies” and “Best Continual IR Efforts PremiumCompanies” by the Japan Investor Relations Association (JIRA).
Companies that had made efforts to improve IR and consistently been highly evaluated by the screening committee
members during the 17 year period from 2007 to 2023 wereselected as Greatest IR Improvement Premium Companies,
while companies that had continually applied for the Best IRAward during this period and been recognized as continuing
IR activities overthe medium tolong term wereselected as Best
Continual IR
Efforts PremiumCompanies.

Canon MJ Receives Two-Star Rating in the Information
Technology Federation of Japanʼs Cyber Index Corporate
Survey 2023
Canon MJ was one of 14 companies to receive two stars, thehighest honor, for two consecutive years as a company that
continues to demonstrate outstanding commitment to andinformation disclosure of cybersecurity measures.
The Cyber Index Corporate Survey 2023 is a survey conducted by the Information Technology Federation of Japan on the
cybersecurity initiatives of companies
comprising the Nikkei 500 index andtheir disclosure of such information,
aimed at encouraging private companies to disclose the details of theircybersecurity measures.

Canon Marketing Japan Inc. | Integrated Report 2023

96

Data

Corporate Data/Investor Information

OUR PURPOSE

Corporate Information (as of December 31, 2023)
Trade Name

Canon Marketing Japan Inc.

Date of
Establishment

February 1, 1968

Common Stock ¥73,303 million
Headquarters
16-6, Konan 2-chome, Minato-ku,
Tokyo 108-8011, Japan

Description ofBusiness

Domestic marketing of Canon products andrelated solutions

Number of
Employees

Consolidated: 16,089
Non-consolidated: 4,528

Main Locationsof Operations

Headquarters, Konan office, Makuhari office,and branches (Sapporo, Sendai, Nagoya,
Osaka, Hiroshima, and Fukuoka)
The Tokyo Stock Exchange, the Prime Market(from April 4, 2022)
Securities code: 8060

Stock Listing

Major Shareholders (As of December 31, 2023)

Total number of shares authorized
Number of shares issued

131,079,972 shares

75,70858.4

Number of shareholders

10,898The Master Trust Bank of Japan, Ltd. (Trust Account)

8,517

6.6

Canon Marketing Japan Group Employee Stock
Ownership Association

5,276

4.1

Custody Bank of Japan, Ltd. (Trust Account)

4,069

3.1

STATE STREET BANK AND TRUST COMPANY
5050011,525

1.2

Canon Marketing Japan Group Business Partner
Stock Ownership Association

1,250

1.0

Mizuho Bank, Ltd.

1,001

Canon Inc.

Canon MJ maintains a website that includes information on its financial results, management plan, andsustainability initiatives, including those related to ESG, to further facilitate communication with shareholders. The website contains the following:●

Treasury stock%

Individuals and others
12.3%

Financial
institutions
13.3%

Foreigncompanies,
Eachpersonimagines
their hopes and ideas lie.
THE BANK
OF NEW
YORK, TREATYJASDECa different future. It is here that
1,135
0.9
etc.
ACCOUNT
0.8

13.2%

Securities
companies
1.0%

Shareholder

BNYM SANV
That is why we seek to deeply understand our customers.
BNYMIL LF
600
0.5
Morant Wright Japan
ItFundis why we work with a wide range of partners to bring together

these hopes and ideas with various technologies.

Other domestic
companies
59.1%

And why we create a constant stream of value that satisfies customers’ expectations.

Member of the Integrated Report 2023 editorial team

Stock
Price/Trading
VolumeImagining
the future
beyond where customers are headed, we continue to hone ourskills. And, harnessing our technologies, skills, knowledge, and the power ofStock Price (Yen)
4,800

Trading Volume (Shares)

our people, we challenge ourselves to do the impossible. We are creating a future

10,000,000

full of hope and joy by providing value that satisfies what customers truly desire.
3,600

7,500,000

And it is all for one purpose: to witness the spectacle of a future
beyond imagining with our customers.

2,400

1,200

5,000,000

MIRAI Marketing Company

2,500,000

Canon Marketing Japan Group0
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May
2021

Canon
MarketingJapan| Integrated
Report2023
MarketingJapan
Inc. Inc.
| Integrated
Report2023
1 97Canon

2022

2023

2024

Sustainability website

canon.jp/corporate/en/
sustainability• Environmental, social,and governance (ESG)
initiatives• Sustainability management
policy and structure• Value creation process• The Canon MJ Group’smaterial issues

Integrated Report 2023: Editor’s Postscript

We are committed tomakingthese hopes and ideas reality.
Composition
The Dai-ichi Life Insurance Company, Limited
879
0.7

Note: The shareholding ratio is calculated by deducting the number of treasury
shares (1,401,615 shares) from the total number of issued shares.

●• News for investors• Financial results and otherfinancial information• Information on Long-Term
Management Objectives andMedium-Term Management Plan
• Stock information• Information for individual
investors• Integrated reports

299,500,000 shares

Bringing together hopes and ideas
with technologies to create a future
beyond imagining 1.1

Investor relations website

canon.jp/8060e-ir

Status of Shares (as of December 31, 2023)

Number of Percentage
Shares Held of Ownership(Thousands)(%)

Name of Shareholder

Canon Marketing Japan Website

0Thank you for taking the time to read Integrated Report 2023.
In preparing this Integrated Report , we engaged in dialogue with various stakeholders including shareholders andinvestors, and based on the opinions and feedback we received, we have enhanced the content of the report to provide a better understanding of our business and growth story.
This is the fifth integrated report issued by the Group. We
have endeavored to provide readers with an understandingof the steady progress being made toward the achievementof the Group’s Medium-Term Management Plan (20222025), and the accelerated creation of businesses that
address social issues in preparation for sustainable growth
beyond 2025.
In addition to our business, financial, and human resource
strategies, we hope we have conveyed the aims of our M&A
and capital investment activities to date, the backgroundand aspirations behind the formulation of our Purpose
announced in January 2024, and our efforts to create future-oriented new businesses, starting with the establishment of the R&B functions.
It is our hope that this report helps provide our stakeholders with a better understanding of the Canon MJ Group.
We will continue to value opportunities to engage with our
stakeholders, and therefore, we hope that you continue toshare your honest opinions and feedback.
Executive Oﬃcer
Group Executive of Corporate Planning Headquarters

Takuya Joshin

Canon Marketing Japan Inc. | Integrated Report 2023

98