Enterprise Segment
Business Briefing
July 24, 2024

* The figures are rounded off to the nearest 100 million yen in this material.
* Forward-looking statements and results forecasts presented in this material are based on the management’s assumptions using currently available information and therefore contain inherent risks
and uncertainties. As a consequence, due to a range of possible factors, actual results may materially differ from the forecasts.
© Canon Marketing Japan Inc. 2024

Hello everyone. I am Hatsumi Hirukawa.
Thank you very much for joining us today.
Before the business briefing, let me again introduce you to the Enterprise segment.

Introduction to Enterprise Segment(Billions of yen)

4

Professional
Net sales

Operating income

40.2

3.6

6%

1

22%

Consumers

Net sales（9.0%）

138.9

Operating income

14.1（10.2%）Net sales 609.5

3

OperatingincomeOperatingmarginArea
Net sales

Operating income

229.7

175

（7.6%）

37%

52.5
8.6%
IT solutions
44%
sales ratio

2

35%（FY2023）

Enterprise
Net sales

220.3

Operating income

19.7（8.9%）* Starting from FY2024, the Company transferred a part of the sales channel organization in the “Area” segment, to the “Consumer” segments. As a result, the FY2023 financial results have been reclassified
between the two segments.
* The sales shares of individual segments are calculated on their respective simple total sales.
* In addition to what is mentioned above, net sales of -19.7 billion yen and operating income of -2.4 billion yen are posted for the other segment, which are elimination of inter-segment transactions, shared service
business and corporate expenses that do not belong to any segment.

© Canon Marketing Japan Inc. 2024

1

We have organizations dedicated to specific markets and customers, and there are four segments:
Consumers, Enterprise, Area and Professional.
One of them is the Enterprise segment, which serves large corporations and quasi-major and uppermedium-sized enterprises. It contributed 35% of the Company's total net sales for 2023.
The Company defines the IT solutions business as a growth area.
Its share of the total net sales of the Company rose to 44%.
The most recent results for the first half of 2024 show that the share reached 48.5%.

Introduction to Enterprise Segment(Billions of yen)

4

Professional

Sales of IT solutions

3

16.5

1

6%

11%

Total Sales of
IT solutions

268.9

Consumers

Sales of IT solutions

29.4

25%
Area

Sales of IT solutions

70.2（FY2023）

2

58%

Enterprise

Sales of IT solutions

160.0* Total sales of IT solutions is the FY 2023 results and is not reclassified in consideration of a business transfer, etc.
* The sales shares of individual segments are calculated on their respective simple total sales.
* In addition to what is mentioned above, IT solutions sales of -7.1 billion yen are posted for the other segment, which are elimination of inter-segment transactions, shared service business and corporate expenses
that do not belong to any segment.
© Canon Marketing Japan Inc. 2024

2

When we observe sales of IT solutions by segment, the Enterprise segment is responsible for nearly
60% of total sales of IT solutions for the Company.
In other words, the Enterprise segment that we will be explaining today is at the heart of the IT
solutions business as a growth area for the Company.
I hope that our presentation about the Enterprise segment will help you better understand our potential
for future growth.
Now please let me hand over to Hiroyuki Matsumoto, Director of Enterprise Business Unit.
He will be speaking about the business strategy.

Enterprise Segment Business Briefing

July 24, 2024
Hiroyuki Matsumoto
Senior Vice President
Director of Enterprise Business Unit

* The figures are rounded off to the nearest 100 million yen in this material.
* Forward-looking statements and results forecasts presented in this material are based on the management’s assumptions using currently available information and therefore contain inherent risks
and uncertainties. As a consequence, due to a range of possible factors, actual results may materially differ from the forecasts.
© Canon Marketing Japan Inc. 2024

Agenda1 Outline of Enterprise Segment••••

Scope of Enterprise Segment
History of the Enterprise Segment
Trends in Net Sales and Operating Income in the Enterprise Segment
Our Strength

2 Growth Strategy for Enterprise Segment•

Direction of Growth of Enterprise Segment•

Independent Growth Targets••

Notion of Integrated Growth
Initiatives for Integrated Growth

3 For Continued Growth in Future••© Canon Marketing Japan Inc. 2024

Primagest, Inc. joins the Group
Achieving the Purpose
4

I am Hiroyuki Matsumoto, Director of Enterprise Business Unit.
I will be proceeding according to the order of this agenda.

Notification in this material
Canon Marketing Japan Inc. Canon MJ
Canon IT Solutions Inc.  Canon ITS
GB Solution Division  GBS HQs

１．Outline of Enterprise Segment© Canon Marketing Japan Inc. 20245

Scope of Enterprise Segment* MA : Major Accounts
GB : General Business

Number of employees

3,000
Quasi-major
and upper
medium-sizedenterprises

SMEs(Canon Marketing Japan Inc.)

Canon IT
Solutions Inc.

© Canon Marketing Japan Inc. 2024

TCS
Inc.

GBS HQs(Canon Marketing Japan Inc.)

Area Segment

300

MA HQsEnterprise Segment

Large
corporations

Business Partners
HQs(Canon Marketing Japan Inc.)

Canon System & Support
Inc.

6

We will be starting with the scope of our segment.
The MA HQs serve large corporations with at least 3,000 employees, while the GBS HQs quasi-major
and upper medium-sized enterprises with workforces ranging from 300 to 3,000.
Canon IT Solutions Inc. and TCS Inc. serve all these customers.

History of the Enterprise Segment
2003

2008

2018

2021

Structure based on markets and customers

Structure based on products and sales channels

Strengthen the customer base
GBS HQs

Canon IT Solutions Inc.
● Acquires Sumitomo Metal System Solutions Co., Ltd.
● Acquires Argo 21 Corporation●Establishment of Canon
IT Solutions Inc.
Shift to be・a prime vender・a service provider offering comprehensive
services based on data centers© Canon Marketing Japan Inc. 2024

Enterprise Business Unit established

MA HQs

2023

Further deepening of thecustomer base
Expansion of thecustomer base

● GBS HQs established

Integrated
GrowthCo-creation of solutions
with customers with a
combination ofcustomer base andtechnological strengths

From a co-creation partner
into a co-imagination andco-creating company●Acquires TCS Inc.

7

Let us move on to the history of our segment.
Until 2017, our structure was based on products and sales channels.
For large corporations served by the MA HQs, we worked to strengthen customer bases. We had
multiple divisions serving quasi-major and upper medium-sized enterprises. That was part of why wefailed to establish a method for sales activities.
Canon IT Solutions was established in 2008 through the merger between Argo 21 Corporation
and Canon System Solutions Inc., a company renamed from Sumitomo Metal System Solutions Co.,
Ltd. when it joined the Canon MJ Group in 2003. It has been working to shift to be a prime vendor andto a service provider.
In 2018, we set up the Enterprise Business Unit with the objective of changing the structure into a form
based on markets and customers.
The MA HQs continued to deepen its customer base. In 2021, we launched the GBS HQs and worked
to establish a sales approach targeting quasi-major and upper medium-sized enterprises. Canon IT
Solutions continued its activities with a view to evolving from a co-creation partner into a co-imaginationand co-creating company.
In recent years, these three entities have been working on integrated growth.
In 2023, TCS joined the Canon Marketing Japan Group.

Trends in Net Sales and Operating Income in the Enterprise Segment(Billions of yen)
14.0%

220.3
195.8

188.2

190.6

184.6

12.0%

202.7

Net sales

8.4%

8.9%

7.3%
4.6%

5.1%

Operatingmargin
8.0%

5.1%

6.0%

Operatingincome

8.7

13.9

10.1

10.0%

19.7

17.1

9.4

4.0%

2.0%

0.0%

2018

2019

2020

2021

2022

2023

* The FY 2018 and FY2020 financial results have been reclassified due to business transfer, etc.
© Canon Marketing Japan Inc. 2024

8This slide demonstrates the trends in net sales and operating income in our segment.
In 2020, growth slowed due to the COVID-19 pandemic. Subsequently, both net sales and operating
income increased steadily. Our operating margin rose to 8.9%.
Canon IT Solutions made solid progress in the shift to be a prime vendor and a service provider.
As the number of projects increased, the operating ratio of system engineers went up. In addition,customers accepted increases in prices of Canon products, reflecting cost increases. We thus secured
an increase in our operating margin.

Our Strengths
Customer baseTechnological and development strengths

Canon product business

3,500 system engineers╺ Leading market share in laser printers (LBP)╺ System integration (SI) service basedin Japanon problems unique to customers╺ Third-largest market share in office╺ Project management that creates

multifunction printers (MFP) in Japan

exciting quality╺ More than 200 network camera models╺ Full support for the IT lifecycle based(constituting the widest model range in Japan)

on diverse knowledge and expertise* Share : FY2023 results (Company research)

Sales system

R&D╺ Sales teams for different customer groups╺ Mathematical science╺ Solid relationships at all levels from the╺ Software technology╺ Language processing technology

front lines to management╺ Extensive knowledge about business╺ Image analysis technology

categories and industries and the ability tomake proposals to them

© Canon Marketing Japan Inc. 2024

9This slide shows an analysis of our strengths.
The left side is about our customer base. Throughout our history, a large number of customers havebeen using Canon products, including laser-beam printers (LBPs), multifunction printers (MFPs) and,lately, network cameras.
Our strength in our customer base is seen in the construction of close relationships with customers by
separate sales organizations serving different customer groups.
The right side refers to technological and development strengths. Canon IT Solutions holds 3,500
system engineers who have outstanding development capabilities. In research and development, wehave numerous technologies in which we enjoy an edge, including mathematical science technologies.
I think our greatest strength lies in that we possess both the customer base and technological anddevelopment strengths.

Our Strengths

Canon MJ

Canon ITS

CustomerbaseTechnological anddevelopment strengths
 3,500 system engineers Advanced technologicalstrengths

 Depth Breadth

Holding both customer base and technological and development strengths© Canon Marketing Japan Inc. 2024

10This slide provides a simple picture of our strengths.
Canon MJ possesses a customer base with both great depth and breadth,whereas Canon IT Solutions has technological and development strengths.
Our strategy is to combine them to full harness our resources.

２．Growth Strategy for Enterprise Segment© Canon Marketing Japan Inc. 2024

11

I will now move on to our future strategy for growth in the Enterprise segment.

Direction of Growth of Enterprise Segment
Integrated growth of Canon MJ
and Canon ITSCanon ITS
Current business
Canon MJ
Current business

Independent growth

Independent growth2023© Canon Marketing Japan Inc. 2024

2030
12

First, Canon MJ’s traditional businesses have independently achieved growth. We will continue toexpand them.
Canon IT Solutions have also grown their original businesses as an operating company and it willcontinue to do so.
My main focus today is the approaches we will take to growth markets through further integration
between Canon MJ and Canon IT Solutions.

Independent Growth Targets (from 2023 to 2025)）

Canon MJ

Canon productbusiness(MFP and LBP)

Edge solutions(documents andvideos)

BPO

Sales

Sales

Sales

Canon ITS

101%

160%

180%

Systemintegration modelService provision
model

Business cocreation model

Sales

Sales

Number of personnel
for co-creation

135%

110%

Maintenance/operations
services andoutsourcing

SI service© Canon Marketing Japan Inc. 2024

Approx.
4 times

SI service
Maintenance/operations
services andoutsourcing

13

We start by looking at the independent growth targets.
This slide presents the targets from 2023 to 2025.
In the Canon products business, document volumes in the overall market are trending lower. However,as I explained earlier, the GBS HQs will take the initiative in increasing the number of MFPs and LBPs
in a bid to increase sales as well.
Regarding Edge solutions, we will strive to achieve massive growth in sales of document and imaging
solutions. For business process outsourcing (BPO), we are gaining more and more large orders. We
will strive to achieve more stable growth.
Next, we are looking at Canon IT Solutions. The market for the system integration model is still large,
and we have set a target of 10% growth. Meanwhile, we will seek sharper growth in the service
provision model. For the business co-creation model, we will quadruple our co-creator workforce andstrive to achieve continuous growth.

Notion of Integrated Growth
Our Strengths
Customer baseLarge corporations
market(MA HQs and Canon ITS)

Quasi-major and uppermedium-sized enterprises
market(GBS HQs and Canon ITS)

© Canon Marketing Japan Inc. 2024

Technological anddevelopment strengths

 Depth Breadth

Expansion of thecustomer base

14

Next, the notion of integration growth.
I would like to touch on how we will make good use of our customer base and our technological anddevelopment strengths.
For the large corporations market, the MA HQs have a solid customer base. Our focus is on providing
these customers with proposals based on our technological and development strengths.
For the quasi-major and upper medium-sized enterprises market, the GBS HQs was launched in 2021
and it has now established its current style of sales activities. To begin with, it will work to quickly
expand the customer base of Canon products, among others.

Initiatives for Integrated Growth
Large corporations market

Expand Canon ITS' areas of strength
continuously
MA HQs×
Canon ITS

© Canon Marketing Japan Inc. 2024

Expand Canon ITS' areas of strength continuouslywith the use of the MA HQs' customer baseCreate new service businesses
Create new service businesses by combining the
MA HQs' customer base with Canon ITS'
technological and development strengths

15

There are two specific initiatives for integrated growth in the large corporations market.
The first is to continuously expand Canon IT Solutions' areas of strength. It means introducing thebusiness, that Canon IT Solutions excels in, to the MA HQs’ customer base.
The second is to create new service businesses. This is a business creation initiative for the future. It
aims to launch new services based on the MA HQs' customer base and on Canon IT Solutions'
technological and development strengths and to promote them to large number of customers.

MA HQs & Canon ITS｜Expand Canon ITS' areas of strength continuously

Canon MJ

Canon ITS

Depth of customer baseTechnological anddevelopment strengths

Case 1 with a large
manufacturer

Cooperation

Project worth around 3 billion yen

Case 2 with a large
manufacturer
Project worth around 2 billion yen

Businessdevelopment

Production andcost management
solution, etc.

Take advantage of the depth of Canon MJ's customer base and Canon ITS' technologicaland development strengths to achieve growth of the Enterprise Segment© Canon Marketing Japan Inc. 2024

16

We will now take an in-depth look at the first one, namely expanding Canon IT Solutions' areas ofstrength continuously.
It is an effort to introduce solutions in which Canon IT Solutions is superior to the customer base of the
MA HQs .
As you see in the Cases in this slide, we are working to propose to large manufacturers a solution for
production and cost management developed by Canon IT Solutions.
The slide only shows cases with two companies, but projects are currently underway with several othercompanies. We are always seeking collaborations like this in order to expand.

MA HQs & Canon ITS｜Create new service businesses
Rollout of services

Creation of services
Canon MJ
Customer base
Depth

Canon ITSTechnology
Development

capacity

Use the depth of thecustomer base to identify
latent issues facing
customers

Canon MJ
Customer base
BreadthUse the technological anddevelopment strengths todevelop services that canbe expanded to othersectors

Use its broad customer
base to carefully
implement direct sales
activities

Display the strengths in a one-stop manner from service creation to expansion© Canon Marketing Japan Inc. 202417

We move on now to the second initiative to create new service businesses.
The MA HQs have a large number of customers with whom it has long and close relationships.
It explores solutions to their latent issues together with them.
Here, Canon IT Solutions' capabilities in technologies and development are combined to create newservices. Capitalizing on the breadth of the customer base, the sales team gives careful proposals to
promote the services in the industry.

Example of Service Business Creation｜Shinkin Deposited Asset Navi
Circumstances
surrounding
shinkin banks

Diversification of deposited assets✓ Prolonged low interest rates✓ Shift from savings to investment(investment trust, insurance, public bonds, foreign
currency deposits, and others)

 Issues of deposited assets business• Offer full information (on risks and management policies) to investors• Improve sales branches' capabilities to give proposals• Compliance check etc.

Shinkin Deposited Asset Navi

Support for deposited assets business✓ A shared system accessible to all shinkin banks in
Japan✓ An on-screen guide to all processes from proper
product explanations to contracting✓ Compliance efforts and strengthening of sales
capabilities conducted at the same time
✓ Cloud service employed to reduce introduction costs© Canon Marketing Japan Inc. 2024

Shinkin banks all over the country

Shinkin Central Bank

Provision of services

Co-creation

Canon MJ

Canon ITS
Cooperation
Shinkin Deposited
Asset Navi

Joint system

18Here, let me present one example of the services we aspire to create towards the future.
It is a service called Shinkin Deposited Asset Navi. It is used mainly by Shinkin banks.
This service was created against the backdrop of persistent low interest rates and a social trend that
saw a shift from savings to investments. In this situation, it is time-consuming to train sales personnel tohandle investment trusts and equivalent financial instruments. A customer asked us if there is any way
to make it possible for inexperienced sales staff to deal with such products.
This service is designed to help sales staff give appropriate proposals and complete the contractconclusion process in compliance with the Financial Instruments and Exchange Act, simply by talking
with customers as instructed on the screen.
Canon IT Solutions has developed it on the basis of issues Canon MJ learned about by talking acustomer. It is now used by shinkin banks all over the country.

Example of Service Business Creation｜Shinkin Deposited Asset Navi An original service developed on the basis of reports from the front line
2007

2010

Joint systemdevelopmentwith the Bank of
Nagoya, Ltd.

Version forshinkin banks
developed with
the Saitamaken
Shinkin Bank

2016

Version fortablets developedwith Johoku
Shinkin Bank

Service for each company

2018

Spread toshinkin banks
across thecountry(Shinkin Central
Bank)

2024

Currently
serving nearly
60 shinkin
banks

Cloud Service

A system created with customers continues to develop with them
© Canon Marketing Japan Inc. 2024

19This service is based on a system that was jointly developed in 2007 with the Bank of Nagoya, Ltd.,
which falls under the category of regional banks. We listened untiringly to the staff on the front lines andspent considerable time on development.
We applied this to the Saitamaken Shinkin Bank.
Subsequently, we developed a version for tablets jointly with Johoku Shinkin Bank.
The service earned high marks for its user-friendliness and its interface.
Under the supervision of Shinkin Central Bank, which is a leader among the shinkin banks acrossJapan, it was transformed into a cloud service.
It is now used by around 60 shinkin banks nationwide.
We still receive opinions and requests from shinkin bank personnel around the country and we add
new functions in response. This service will therefore continue to constantly develop.

３．For Continued Growth in Future© Canon Marketing Japan Inc. 2024

20

We will be moving on now to discuss our continued growth in the future.

Primagest Joins Canon MJ GroupEnterprise Segment
Customer baseTechnological anddevelopment strengths(1)
Promoting to theEnterprise segment's
customer base

(2)

(1)

Creation of BPO services based onstrengths of both sides

Promoting toPrimagest's customer
base

BPO quality
Customer basePrimagest Inc.
© Canon Marketing Japan Inc. 2024

21

Up to this point, I have talked about the growth within the Enterprise segment.
This past spring, Primagest joined the Canon MJ Group, and I would like to talk a little about synergy
with it.
Primagest is engaged mainly in BPO services, but it also carries out systems development.
First, we will promote the products and services handled by the Enterprise segment to Primagest's
customers. At the same time, we will promote Primagest's BPO services to customers of the Enterprisesegment.
We will combine Primagest’s system development with the technological and development strengths of
the Enterprise segment to enhance service quality. In so doing, we will create and spread services thattake greater advantage of these strengths.

Achieving the Purpose

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

MIRAI Marketing Company
Canon Marketing Japan Group© Canon Marketing Japan Inc. 2024

22

Let me conclude with our commitment to achieving the Purpose.
Today, my briefing focused chiefly on our growth strategy.
However, we put customers first.
Everyone in the Enterprise segment will individually think about how to bring together hopes and ideas tocreate a future beyond imagining, as stated in the Purpose shown in this slide,
while constantly maintaining ties with customers.
It is with this approach that we will be seeking to achieve steady and sustained growth.
Thank you very much.