Canon Marketing Japan (8060) Investor update summary

Review of past performance and management objectives

• Achieved record highs in sales and profits for five consecutive years, meeting all management indicator 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.

• Structural reforms, customer-focused strategies, and enhanced governance with more outside directors and a special committee increased profitability and resilience.

• Dividend per share increased 2.8 times since 2020, with treasury stock buybacks improving capital structure.

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.

Financial strategy and capital allocation

• Operating cash flow from 2021–2025 reached JPY 210.0 billion, 1.5 times the previous five years.

• Growth investments totaled JPY 172.6 billion, with JPY 96.7 billion spent on treasury stock acquisition.

• Eliminated JPY 180.0 billion in short-term loans to the parent company, strengthening financial structure.

• Raised dividend payout ratio, distributing JPY 71.8 billion in dividends.