Towards the Continuous
Growth of the Canon MJ Group
January 29, 2024
Canon Marketing Japan Inc.
President

Masachika Adachi

1•

With respect to the Medium-Term Management Plan (2022–2025), I briefed
you about what we will be doing up to 2025.

•Now I will be discussing our actions to achieve continuous growth.

2Canon Group’s Corporate Philosophy, Kyosei

Customers
Employees

Business
partners

Educationaland research
institutions

Shareholders
and investors

Publicagencies andlocal
governments

StudentsNGOs
and NPOs

Local
communities•

Under the Canon Group‘s philosophy of Kyosei, the Canon MJ Group has
since 1988 been seeking to realize a society in which all people, regardlessof culture, customs, language, or ethnicity, can live and work together inhappiness.

•We believe that the realization of Kyosei itself will lead the achievement ofsustainability management. This notion will not change in the future.

3

The History of the Evolution of the Canon MJ Group▶︎ We have evolved by hearing voices from the market based on our customer-centric
approach and by exerting our enterprising nature that is a part of our DNA.
10,0000.1

9,000

0.09Net sales
8,0000.08

Operating margin

7,0000.07

6,0000.06

2010-

5,000

4,0000.04

1990-

Systems integrator function (systems integration business)

3,0000.03

1980-

2,000

1,0000.05

IT provider function

0.02

Trading company function (sale of PCs and servers of other companies)

0.01

1968-

Sale of cameras and business machines
01968

1980

1990

2000

2010

2020

2025

0

•

Fifty-five years have passed since the founding of the Company.

•We, the group that is in charge of the domestic market, have evolved byhearing voices from the market on the basis of our customer-centric
approach and by exerting our enterprising nature that is a part of our DNA
in looking to the future.

•As a result, we have achieved the outcomes mentioned in the earlier
presentation on the Medium-Term Management Plan.

4

Increasingly Complicated and Serious Social Issues

Uniformed
schooleducationLong working
hours

Destruction ofecosystems

ClimatechangeDeclining
population
Food shortage

Low birthrate
and aging
population

Concentrationof thepopulationin cities

Decliningbirth rate
Aging
infrastructure

Decline ofJapan's ruralregions•Social issues today are becoming more complicated and serious at anaccelerating pace.

•Now we are looking back on the past 55 years of our operation to think
about the next 50 years.

•Amid accelerating changes and increasing uncertainty, the Canon MJ Groupis determined to continue solving an extensive range of future social issues
together with its stakeholders.

5MIRAI Marketing Company•

To coincide with this resolution, we have declared ourselves as a MIRAI
Marketing Company. This expression has been adopted as a symbol of theGroup.

•In addition, we have established the Canon MJ Group's Purpose. We thought
this was essential for looking to the future constantly as a MIRAI Marketing
Company, and clarifying, under the corporate philosophy Kyosei, its
significance of our presence in society to unite the aspirations of Groupemployees. We also felt we needed it to accelerate solutions to social issues
by stepping up collaborative creation and cooperation with stakeholders.

6The Canon MJ Group’s Purpose

Bringing together hopes and ideas with technologies
to create a future beyond imagining•The Purpose is "Bringing together hopes and ideas with technologies tocreate a future beyond imagining."•"Hopes and ideas" refer to those held by customers and we will value them.
We also place a high value on our own intrinsic drive.

•"Technologies" here refers not only to technologies themselves but also toknow-how and knowledge. It also includes what is owned by our various
business partners.

•With this Purpose, together with people sharing the same aspirations insideand outside the company, we hope to create something new that is
unshackled from conventional thinking and to create a future beyond
imagining.

7Bringing together hopes and ideas with technologies
to create a future beyond imagining•

We prepared a video clip that seeks to offer a deeper understanding of theconcept behind the Purpose. Please take a look.

•To fulfill this Purpose, our employees will unite their aspirations and work tosolve social issues together with our stakeholders.

8Approach to Solving Social Issues
Concentr
ation ofthepopulati
on incities
Lowbirthrate
and aging
population

Foodshortage

Destructi
on ofecosyste
msFuture

Declining
populati
onAginginfrastru
cture
Uniformed school
education

Solving social issues

ClimatechangeLongworkinghours

Present•

We will now move on to look at specific measures towards the Purpose.

•With a view to achieving continuous growth from 2026 onwards, the Canon
MJ Group will expand its existing businesses from a forecasting perspective
and will step up actions towards new fields from a backcasting perspective
based on increasingly complicated and serious social issues. In so doing, wewill strive to solve social issues.

9Approach to Solving Social Issues
Concentr
ation ofthepopulation incities
Lowbirthrateand aging
population

R&B

Food
shortage

Destructi
on ofecosyste
msFuture

Declining
populati
onAging
infrastru
cture

Research ＆ Business Development

Solving social issues

Uniformed school
education

ClimatechangeLongworkinghours

Present
Healthcare
tech

Food
tech・・・

To increase actions in exploring new business areas with a future-oriented
approach, establishing a specialized R&B organization•As a practical engine for achieving this, we launched a new specializedorganization from this January that plays both research and businessdevelopment (R&B) functions, which are in other words a search function
and a new business creation function. We gathered members with different
experience and skills from inside and outside the company to form this neworganization.

•The R&B organization is a specialized organization for constantly tacklingnew fields with a future-oriented approach.

•It will strive to step into, for example, healthcare technologies and foodtechnologies, or other new business areas that are not an extension of theCanon MJ Group's existing businesses.

10R&B Initiatives

Creating new businesses through open innovationby connecting technologies and needs
ResearchBusiness Development

Exploration of new technologies
and business ideas
IndustryAcademiaGovernment
Collaboration

Collaboration
with startups(CVC)

Business development
based on social issues

RB

Worldwide information
gatheringfrom VC, academia, startups
and moreBusiness
concept

Internal
entrepreneurs

Business verificationand support
Launching new businesses andconnecting to existing businesses
to address social issues

Establishing a corporate venture capital fundto create a better future together with startups•Next, I will be talking about specific R&B initiatives.

•In terms of its research function, the organization will construct a worldwide
network of open innovation through collaboration between the industrial,academic, and governmental sectors and cooperation with startups in order tostrengthen the business development function. It will thus search fortechnologies and business ideas that will develop into new businesses.

•In its business development function, it will strive to create businesses in newfields on the basis of social issues with a future-oriented approach. In thisprocess, it will use the open innovation network in addition to assets we havecultivated.

•In parallel, it will connect with the existing businesses from the perspectives ofbusiness compatibility and use of resources in the hope that this will lead to theexpansion of these businesses.

•The major objective of launching a specialized body for R&B is to strengthen thebusiness creation function of the overall Group by carrying out a combination ofthese two functions.

•We have pushed ahead with open innovation by means such as venture capital
investment, M&A, and collaborative creation with other companies.

•However, to further accelerate the conventional initiatives and to address social
issues that are becoming increasingly complicated and serious, we need to bringon board more partners from a broader point of view.

•Under this situation, we will be setting up a corporate venture capital fund toengage in dialogues with startups and to create a better future with everyone.

11

Establishment of a Corporate Venture Capital Fund•This new fund is named Canon Marketing Japan MIRAI Fund. This nameembodies our aspiration to accelerate the creation of future markets.

12

Investment Area

Human perspectives
Well Being

Life Purpose

Work-in-Life

Creating services that empower

Achieving work-in-life that cananyone to experience thebe enjoyed by anyone byvitality to live in good healtheliminating the limitations

through spiritual enrichment

such as space and time

Human Potential Enlargement
Creating a society in which anyone can pursue a lifestylethat suits them by expanding the various abilities that humans possess

Emerging Industries

Regional Regeneration

Creating new industries using

Visualizing and rediscovering regionalinnovative technologies thatvalue, and creating region-driven

solve social issues

Industrial perspectives
Business Transformationbusinesses

Business Revitalization
Disrupting existing industrial structuresto create new competitive strength through co -creation•

In the process of studying the scope of investment, we assumed social issues inareas not confined to those of our existing businesses. We imagined social issues
with a future-oriented approach and output a significant volume of views and ideas
on what the world we wish to create.

•Consequently, we organized our ideas broadly into two types of perspectives. One
is human perspectives and the other is industrial perspectives.

•Traditionally, the Canon MJ Group has leveraged the strength of marketing forsolving social issues and for cultivating new markets in the B2C and B2B sectors.

•We see these two kinds of perspectives as best suited to our initiatives for newmarkets by utilizing the marketing strength and organizational capabilities that wehave cultivated.

•Canon Marketing Japan MIRAI Fund has settled on six areas from these twoperspectives. It will invest widely in startups holding the latest technologies andbusiness ideas related to these areas in a bid to accelerate collaboration towards
business creation based on future social issues.

•From human perspectives, we will consider working with startups in the area ofhealthcare technologies, for example, with a view to creating personalized healthand medical care.

•From industrial perspectives, we will seek to collaborate with startups in the domain
of food technologies, for example, that strive to stimulate the food industry.

•

We will revise these investment areas regularly to continue creating new businesses
that will help solve social issues in a future-oriented approach.

•We are eager to work hand-in-hand with startups sharing the same aspirations toaccelerate the implementation of advanced technologies in society.

13Acceleration of Open Innovation
Collaboration withacademic institutions

Two-party partner

GlobalBrainCorporation⚫ An abundance ofexperience and resources⚫ A solid worldwide network

Fund Size: 10 billion yen
Fund Term: 10 years

Startups⚫ Implementation ofadvanced technology
and research in society⚫ Participation incollaborative projects

Canon
MarketingJapan

Academia

Collaboration between industry,
government and academia

Startups in Japan and overseas

Collaboration withgovernment entities⚫ Stages eligible for investment: Allstages, mainly in startups in the earlyand middle stages of development of
their businesses.

⚫ Conducting demonstration
experiments⚫ Participation in collaborative
projects

Government

Carrying out open innovation with stakeholders
aspiring to co-create a future filled with hope and joy•

Canon Marketing Japan MIRAI Fund emphasizes strategic returns. We have chosen theform of a two-party partnership for two purposes. One is to make swift investments instartups that will lead to new business creation. The other is to seek support fromexperts in fund management.

•We are joined by Global Brain Corporation as a partner. It has extensive experienceand resources as well as a solid global network.

•We will work with startups in Japan and beyond at all stages and make active use of
the Canon MJ Group's customer base, sales channels and other assets to proceed
towards the implementation of advanced technologies in society.

•We will also address collaboration between industry, academia and government inorder to carry out broader open innovation. Together with universities, othereducational institutions and the government sector, we will seek to introduce newtechnologies in society and take steps to solve latent social issues with the aim ofcreating a sustainable society.

•At present, in a joint research project with the University of Tokyo, we are also working
with the Tokyo Metropolitan Government to accelerate innovation. Please stay tuned,as we will be presenting details about this in the future.

•At the time of undertaking initiatives in new business areas, one key factor is that awide variety of human resources play active roles.

•Canon MJ Group has long been working intensively to develop innovation experts byoperating an internal entrepreneur program and dispatching staff to venture capitalcompanies, where they are training to become venture capital specialists.

•We are also actively recruiting more outside personnel owning a wide variety of careerbackgrounds and experience.

•In the future, we will work harder to develop personnel for innovation, increase
dialogues with startups and step up collaboration among industry, academia andgovernment in a bid to expand the circles of collaborative creation and to forge a future
filled with hopes and joy together.

14MIRAI Marketing Company

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

Thank you for your continued support for the future of the Canon MJ Group.

•This concludes my presentation. Thank you very much.

15

Reference materials

16

Canon MJ Group's Purpose, Story and Symbol MarkPurpose

Story

Bringing together hopes and ideas with technologies

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

to create a future beyond imagining

We are committed to making these hopes and ideas reality. That is
why we seek to deeply understand our customers. It is why we workwith a wide range of partners to bring together these hopes and ideas
with various technologies. And why we create a constant stream ofvalue that satisfies customers’ expectations.

Symbol MarkThis mark symbolizes thePurpose.
The individual circles that differ
in size and color represents
diverse hopes, ideas andtechnologies.
The infinite ring of these circles
evokes the image of the endless
circulation of the new future.

Imagining the future beyond where customers are headed, wecontinue to hone our skills. And, harnessing our technologies, skills,
knowledge, and the power of our people, we challenge ourselves todo the impossible. We are creating a future full of hope and joy byproviding 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.
Canon MJ Group's Purpose
Bringing together hopes and ideas with technologies to create afuture beyond imagining

17Together with Stakeholders▶︎

By stating our “purpose (significance of our presence in society)”, we aim to further refine ourselves andextend the scope of social issues we can solve together with stakeholders.
SocietyCanon MJ Group

Response to increasingly
complicated and serious social issues
The significance of ourpresence in society

PurposeMIRAI Marketing Company

Employees

Customers

Businesspartners

Shareholders
and investors

Educational Students Public agencies
andandlocalresearchgovernments
institutions

NGOandNPO

Local
communities

18Website⚫ Purposehttps://canon.jp/corporate/en/purpose⚫ R&B
https://canon.jp/corporate/en/rb⚫ CVC
https://canon.jp/corporate/en/rb/mirai-fund19