Integrated Report

For the year ended December 31, 2019

2019

ResolvingSocial Issues

with IT Solutions

PROFILE

Strengths of the Canon Marketing Japan (Canon MJ) Group

We have built solid relationships with

numerous customers over our more than 50

years of selling Canon brand products.

Customer needs have diversified with our

businesses. We will draw on customer trust

and our track record to deliver optimal

products and solutions that match the needs

of large corporations through small-to-

medium-sized enterprises.

Since our inception as part of Canon’s sales

division, we have been the exclusive seller in

Japan of Canon brand cameras, inkjet printers,

office multifunction printers (MFPs), laser

beam printers (LBPs), and other Canon brand*

offerings, and have maintained high market

shares. We also offer maintenance services

and support.

* Excluding semiconductor exposure equipment, LCD substrate

exposure equipment, and medical devices

We have amassed technologies by acquiring

companies with top capabilities and

developing state-of-the-art technologies.

We leverage advanced development expertise

based on our deep business and industry

insight to offer a range of IT solutions,

including systems development, cloud

services, and data center services.

Customer Base and Sales Capabilities

IT Solutions Capabilities Canon Brand

Third-Party Assessments

The FTSE4Good Index Series has included Canon MJ for the past 16 years. In addition, we became part of FTSE Blossom Japan and the SNAM Sustainability Index for the third

consecutive time in the year under review. We were also part of the MSCI Japan ESG Select Leaders Index in 2018.

Sompo Sustainability Index

2020

THE INCLUSION OF Canon Marketing Japan Inc. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Canon Marketing Japan Inc. BY MSCI OR ANY OF ITS AFFILIATES.THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

Group Mission

Help resolve social issues with advanced imaging and IT solutions

Group Vision

The Canon Marketing Japan Group understands and grows with its customers.

Establishment

1968

Position within the Canon Group

Market and provide solutions, primarily in Japan

CanonEurope Canon

AsiaMarketing

CanonAustralia

CanonU.S.A.

CanonInc.

Research and development,

and manufacturing of

Canon’s products

Canon Marketing JapanWe market Canon’s products and services in

Japan and provide our unique IT solutions.

1Canon Marketing Japan Inc. I Integrated Report 2019

CONTENTS

Overview of the Canon MJ Group

4 An Interview with the President

10 Financial and Nonfinancial Highlights

12 Review by Segment

Value Creation of the Canon MJ Group

14 Milestones

16 Canon MJ Group’s Value Creation Process

18 Growth Scenario under the Medium-Term Management Plan

20 Special Feature: Case Study—Resolving Social Issues with IT Solutions

Segment Strategies

24 Consumers Segment

26 Enterprise Segment

28 Area Segment

30 Professional Segment

Sustainable Management—ESG Initiatives

34 Sustainable Management

36 Initiatives Underpinning Sustainable Growth

40 Corporate Governance

47 Board of Directors and Audit & Supervisory Board Members

Financial, ESG, and Corporate Data

48 Ten-Year Consolidated Financial Summary

50 Financial Review

52 Consolidated Financial Statements

80 ESG Data

82 Canon MJ Group Companies

83 Corporate Data

2 Canon Marketing Japan Inc. I Integrated Report 2019

Editorial Policy

The Canon MJ Group began publishing an integrated report from fiscal 2019, replacing the annual report.

Integrated Report 2019 aims to provide information that various stakeholders need to understand how the Group generates corporate value. The report

presents more nonfinancial information that showcases the Group’s ability to create value over the medium through long terms and contribute to social

sustainability. Detailed financial information is available through such channels as the Group’s website and the securities report. Detailed CSR-related

information remains available through the Group’s website, the CSR report, and other vehicles.

Reference Guidelines

International Integrated Reporting Framework of the International Integrated Reporting Council (IIRC), and Ministry of Economy, Trade and Industry (METI) Guidance for

Integrated Corporate Disclosure and Company-Investor Dialogues for Collaborative Value Creation

Reporting Period

This report covers fiscal 2019, ended December 31, 2019, and also includes activities and information before and after that term.

Scope of Coverage

Canon Marketing Japan Inc. and domestic and overseas Group companies

Disclaimer Regarding Forward-Looking Statements

This integrated report contains forward-looking statements about the future performance and management plans of the Canon MJ Group. All forward-looking statements

are based on management’s 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.

Financial Information

Information on website

https://cweb.canon.jp/eng/ir/

Summarized

Detailed

Information on website

https://cweb.canon.jp/csr/(in Japanese only)

Nonfinancial Information

Integrated ReportCSR Report

Digest

Corporate

Governance Report

CSR

Report

Information

Security

Report

Securities Report

Categories and Positioning of Disclosed Information

3Canon Marketing Japan Inc. I Integrated Report 2019