Financial Highlights

During the period from January to March of the fiscal year under review, the Japanese economy continued to recover moderately. Despite a partial standstill due mainly to price increases brought about by the surging energy and raw material prices, there were signs that consumer spending was picking up as a result of a recovery in domestic travel, etc. Corporate capital expenditure was robust, chiefly due to investments for the replacement of equipment and enhancement of production capacity primarily in the manufacturing industry, which had been postponed because of the COVID-19 pandemic and higher prices, and for reduction of labor to address the workforce shortage. In particular, appetite for IT investment in manufacturing and financial businesses and a wide range of other sectors was high and remained strong.

Under these economic conditions, the Canon Marketing Japan Group recorded net sales of 167,316 million yen (up 6.4% year on year), mainly reflecting strong sales from maintenance and operation service/outsourcing and IT products and system sales among IT solutions.
In terms of profit, operating income decreased 4.6% year on year, to 13,169 million yen, ordinary income decreased 5.5% year on year, to 13,203 million yen, and net income attributable to owners of the parent decreased 7.5% year on year, to 8,809 million yen. Because the increase in SG&A expenses, mainly due to the increased amortization of goodwill, etc. associated with Primagest group’s consolidation as a subsidiary, more than offset a rise in gross profit associated with higher sales.

Looking ahead to conditions in fiscal 2025, the Japanese economy is expected to continue to recover gradually, despite some areas remaining stagnant. However, economic uncertainty is expected to persist due to the impact of continually rising prices, which will likely cause consumer pessimism and affect consumer consumption, the impact of US policy trends regarding corporate capital expenditure and other factors. Regarding US policy trends, the direct impact of policies regarding the import/export of merchandise, etc. on the business activities of the Canon MJ Group is minimal as our activities are conducted mainly in the Japanese market.
Given this economic environment, the Group has decided not to change the consolidated results forecasts announced on January 29, 2025.