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

Introduction to Enterprise Segment(Billions of yen)

4

ProfessionalNet sales

Operating income

40.2

3.66%

122%

ConsumersNet sales（9.0%）

138.9

Operating income

14.1（10.2%）

Net sales 609.5

3

Operatingincome
Operatingmargin

52.5
8.6%
IT solutions
44%
sales ratio

AreaNet sales

Operating income

229.7

175（7.6%）

37%（FY2023）235%

Enterprise
Net sales

Operating income

220.3

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

Introduction to Enterprise Segment(Billions of yen)

41

Professional

6%

Sales of IT solutions

11%

16.5

3

Consumers

Sales of IT solutions

29.4

25%
Area

Sales of IT solutions

70.2

Total Sales of268.9
IT solutions（FY2023）

258%

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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 risksand 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• Primagest, Inc. joins the Group• Achieving the Purpose© Canon Marketing Japan Inc. 2024

4

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. 2024

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

Number of employees

3,000
Quasi-majorand uppermedium-sizedenterprises

SMEs© Canon Marketing Japan Inc. 2024

MA HQs(Canon Marketing Japan Inc.)

Canon IT
Solutions Inc.

TCS
Inc.

GBS HQs(Canon Marketing Japan Inc.)

Area Segment

300

Enterprise Segment

Large
corporations

Business Partners
HQs(Canon Marketing Japan Inc.)

6

Canon System & Support
Inc.

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 HQsCanon 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 baseIntegrated
Growth● GBS HQs establishedCo-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

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

220.3
195.8

188.2

202.7

190.6

184.6

12.0%

Net sales

8.4%

8.9%

7.3%
4.6%

5.1%

8.0%

6.0%

Operatingincome

8.7

Operatingmargin

5.1%

13.9

10.1

10.0%

17.1

19.7

9.4

4.0%

2.0%

0.0%

2018

2019

2020

2021

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

820222023

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 systemR&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

9

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. 202410

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

11Direction of Growth of Enterprise Segment
Integrated growth of Canon MJand Canon ITSCanon ITS
Current business

Canon MJ
Current business

Independent growth

Independent growth2023© Canon Marketing Japan Inc. 2024

2030
12

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

Number of personnel
for co-creation

Sales

135%

110%

Maintenance/operations
services andoutsourcing

SI service© Canon Marketing Japan Inc. 2024

13Approx.
4 times

SI service
Maintenance/operations
services andoutsourcing

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

◼ Depth◼ Breadth

Expansion of thecustomer base14

Technological anddevelopment strengths

Initiatives for Integrated Growth

Large corporations market

Expand Canon ITS' areas of strength
continuously
Expand Canon ITS' areas of strength continuouslywith the use of the MA HQs' customer base
MA HQs×Canon ITS© Canon Marketing Japan Inc. 2024

Create new service businesses
Create new service businesses by combining theMA HQs' customer base with Canon ITS'
technological and development strengths

15

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 yenBusinessdevelopment

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

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 customerbase to carefully
implement direct sales
activities

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

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 banks all over the country

Shinkin Deposited Asset Navi
Support for deposited assets business✓ A shared system accessible to all shinkin banks inJapan✓ 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. 202418

Shinkin Central Bank

Provision of services

Co-creation

Canon MJ

Canon ITS
Cooperation
Shinkin Deposited
Asset Navi

Joint system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 ofNagoya, Ltd.

Version forshinkin banks
developed withthe Saitamaken
Shinkin Bank

2016

Version fortablets developedwith Johoku
Shinkin Bank

Service for each company

2018

Spread toshinkin banks
across thecountry(Shinkin CentralBank)

2024

Currently
serving nearly
60 shinkinbanks

Cloud Service

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

19

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

20

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

(2)

(1)

Creation of BPO services based onstrengths of both sides

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

21

Promoting toPrimagest's customerbase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. 202422