Canon Marketing Japan (8060) investor relations material

Review of past performance and management objectives

• Achieved record highs in sales, operating income, and net income for five consecutive years, meeting all management targets set in 2021.

• IT Solutions business exceeded sales targets, growing 64% and reaching JPY 343.4 billion, with maintenance/outsourcing up 136% versus 2020.

• Aggressive growth investments, M&A, and treasury stock acquisitions improved capital efficiency and shareholder returns, with dividends per share rising to 2.8x 2020 levels.

• Structural reforms and business focus led to improved profitability and resilience during the COVID-19 pandemic.

• Enhanced governance with more outside directors and a special committee.

Business environment and group strengths

• Identified climate change, workforce shifts, AI advances, and cyber threats as key external factors.

• Opportunities include rising demand for productivity, security, and semiconductor-related products.

• Strengths include a broad customer base, deep operational expertise, robust recurring business, and strong financials.

Strategic initiatives and business transformation

• Shifted to a robust management structure by focusing on business selection, customer segmentation, and recurring revenue.

• Expanded IT Solutions as a core business, with maintenance and operation service outsourcing driving profitability.

• Executed M&A and CVC investments to accelerate business growth and portfolio transformation.

• Enhanced governance, board structure, and established a group purpose to unify direction.