Medium-Term Management Plan
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| Date | January 29, 2025 |
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| Speaker | Masachika Adachi President |
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Medium-Term Management Plan (2022-2025) Progress Report
Medium-Term Management Plan (2022-2025) Basic Policies
We have announced Medium-Term Management Plan (2022-2025) Progress Report toward the realization of 2025 Vision.
Basic Policy 1 Expand ITS business with profit
- Carry out and accelerate strategies for different customer groups
- Implement the service-type business model to expand the stock business
- Despite differences in progress, the overall KPIs made steady progress, contributing to expanding the ITS business.
- We focused our efforts on further expansion of value we provide, by upgrading ITS business capitalizing on our strength in original technologies.
Edge Solutions*
We refer to the solutions focusing on the areas, industries, and technologies where the Group holds a competitive "edge" as "edge solutions," which consist of imaging solutions, digital document services, mathematical and demand forecasting, and low-code development. With edge solutions, we will continue to hone the strengths of our various existing solutions to create unrivaled IT solutions and expand the areas where we hold an advantage. In addition, we will establish a service-based service model by utilizing our customer base to create solutions individually with customers of large corporations and then expand them to customers of the same industry as well as to quasi-major and upper medium-sized enterprises by converting these solutions into services.
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Edge solutions : video solutions, digital document service, mathematical and demand forecasts, low code development, etc.
HOME* / IT Maintenance and Operations
It is becoming more difficult than ever for SMEs to secure highly skilled professionals, particularly when it comes to acquiring IT and security solutions experts on their own. To overcome these issues, Canon MJ offers a range of services for its SME customers that includes DX support services such as its HOME and HOME Select Series, and IT maintenance and operations service, such as Makasete IT DX Series.
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HOME: IT support service for SMEs (security, cloud services etc.)
Security
Today, cyberspace and physical space are merging in all areas of the world. While their linkage offers many benefits, we must also consider the increasing risk of the impact of cyberattacks on physical space. The Canon MJ Group provides customers with security and peace of mind through the development of comprehensive security solutions that encompass both physical security, such as video surveillance, and cybersecurity, including network intrusion detection and prevention.
ITO* / BPO*
The demand for outsourcing services continues to rise due to the challenge of securing workers caused by the declining birth rate and aging population, the accelerating shift to the cloud and the advancement of security measures due to the evolution of DX, and other factors. At the Canon MJ Group, we help create an environment that allows our customers to focus more closely on their core operations by ensuring a thorough understanding of their entire business.
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ITO: IT Outsourcing
BPO: Business Process Outsourcing
ITS Business: Sales Targets by Business Area
- Amount and ratio of maintenance and operation service/outsourcing increased due to enhancement of the service-type business model and implementation of M&A.
- The consolidated financial plan figure for 2025 at 75.0 billion yen (ratio: 25%) was achieved ahead of schedule.
Basic Policy 2 Increase earnings capacity of existing businesses
- Conduct strategies tailored to customer groups
- Increase the profitability of the business of main products
Canon Product Business: Printing Business / Camera Business
- In the printing business, we executed strategies by classifying customer groups by company size.
- In the camera business, we are pursuing a strategy of classifying customer groups by level of involvement in cameras and focusing our efforts particularly on the intermediate customer group (high amateur group).
- We maintained high market shares and improved unit prices by pursuing strategies for different customer groups and making combined suggestions with the ITS business.
- We continued with the policy of emphasizing profitability, minimizing the decline in sales amid the withdrawal from the market.
Basic Policy 3 Strengthen specialized areas and create new businesses
- Continue growth of the industrial equipment business
- Create new businesses
Continuous Growth in the Industrial Equipment Business
- We provide purchase, sales, installation, and maintenance services for devices related to semiconductor manufacturing, among others, with a high level of insight and technological capabilities.
- We focus on establishing a solid revenue base that is resilient to changes in market conditions, by expanding sales of the semiconductor service business, which is likely to feature both profitability and stability.
Basic Policy 4 Group management aimed at continuous growth
Establish an engagement improvement cycle
We will continue our efforts to visualize and improve engagement scores on the basis of the group employee employee engagement survey in a bid to establish a loop of improvement in engagement and thereby continuously increase corporate value.
Accelerating Investments in Growth: Direction of Cash Allocation
- We use funds combining cash from operating activities and cash on hand for shareholder returns and growth investments while maintaining the necessary funds.
- Of investments for growth at 200.0 billion yen, approx. 70% was invested to the end of 2024.
