Sam YoshidaEVP & GM, Business Information Communications Group

Vice Chairman, Canon Solutions America

Business Overview

Canon Group Overview – 2018 Worldwide Key Statistics

Based on Canon Inc. results for the fiscal year ended Dec. 31, 2018

U.S. dollar amounts are translated from yen at the rate of JPY 111= U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 28, 2018.

* Number of employees and debt ratio as of year end.

\ NET SALES: $35.6 Billion

\ NET INCOME: $2.3 Billion

\ R&D INVESTMENT: $2.8 Billion

\ EMPLOYEES: 195,056*

\ 2018 DEBT RATIO: 8.2%*

Canon U.S.A.

Canon Europe

Canon China

Canon HeadquartersCanon Marketing Japan

Canon Australia

AMERICAS | 27%

EUROPE | 26%

JAPAN | 22%

ASIA & OCEANIA | 25%

NET SALES

Total of all segments is not 100% as it includes adjustment.

2018 Global Revenue By Product Category

From input to output,

Canon actively promotes diversification of its businesses,

taking the trusted Canon brand into various fields.

Source: Canon Inc. financial report FY 2018

Consumer

• Cameras

• Lenses

• Video Camcorders

• Inkjet Printers/Peripherals

• Image Scanners

• Broadcasting Equipment

Industry/Others

• Semiconductor Equipment

• Mirror Projection Mask Aligners

• Medical Equipment

• Components

• Computer Information Systems

• Document Scanners

• Personal Information Products

• Production Photo

Office

• Copying Devices

• Network Digital MFDs

• Personal-use Copying Devices

• Laser Printers

• Large-format Inkjet Printers

• Color/Monochrome

Digital Presses

Medical

• Angiography

• Computed Tomography

• Ultrasound

• X-ray

26%

20%

11%

46%

2016

1. IBM

2. Samsung

3. Canon

4. Qualcomm

5. Google

9,100

5,850

3,056

2,735

CANON PATENT, BRAND LEADERSHIP

CANON IS IN THE TOP FIVE FOR 33 CONSECUTIVE YEARS

#1 among Japanese companies

#2 in Ultimate Patent Ownership (NEW Ranking as of 2018 : the global number of active patent families covering a single invention)

#3 overall in the U.S.

Canon invested 8.0% of Net Sales into R&D

IN 2018:

Source: United States Patent and Trademark Office / Canon Inc. financial report FY 2018

F O R T U N E“ W O R L D ’ S M O S T AD M I R E D C O M PAN I E S ”

January 2019

Computer Category Ranking: 4

2017

1. IBM

2. Samsung

3. Canon

4. Intel

5. LG

9,100

5,850

3,056

2,735

2018

1. IBM

2. Samsung

3. Canon

4. Intel

5. LG

9,100

5,850

3,056

2,735

2,474

2019 Direction

Opportunity for Growth Remains Strong

by Adapting to Customer Needs and Market Trends

Cloud / Security ProductionTop Priority

of IT Spending in SMBs

- Improve NW Security

- Expand use of Cloud

- Integrate on premise &

Cloud resources (IDC)

Offset to Digital

Digital Color PV

2018-2021

CAGR +13% (incl.CF)

(Infotrends)

Vertical MarketHigh PV

EducationHealthcare

Finance & Insurance

Approx. 100 Bil. PV / yr(Infotrends)

Digital Transformation

Workflow Automation

Two-Thirds of SMBs

will embrace Digital

Transformation by 2023

(IDC)

Transform Existing Boundaries

Professional Services by CIIS

Total Solution Services

Customers’ Needs

Project Management

Office

imagePROGRAFDR Series

CR Series

imagePRESS Series

imageCLASS Series

Océ Plotwave/Colorwave

Océ VarioPrint Series

iR ADVANCE

Series

Digital

Radiography

Eye Care

Products

Managed Print Services

Color Management

3rd Vender

Image

CaptureHealthcare

Large Format

Digital Press

Production

Solutions

Solutions

PRISMA Workflow Solutions

Expanding Service Area and Customer Satisfaction

3rd Vender

About Us

• Breakthrough Video Content Analytics Solution

• Makes video searchable, quantifiable and actionable

• Review hours of video in minutes; quantitatively analyze to

derive actionable insights for data-driven safety, security and

operational decision making; respond immediately to critical

situational changes

• Currently safeguards National Institutions : Statue of Liberty,

Empire State Building, Amtrak, …

• Acquisition complements the Canon Group’s previous

acquisitions of AXIS Communications and Milestone Systems

BriefCamVIDEO SURVEILLANCE TO ACTIONABLE INTELLIGENCE

Mason OldsSenior Vice President & General Manager, Sales

Business Information Communications Group

Challenges

Attracting changing workforce to our industry

Decline in page volume and cost per copy which we must outrun

Continued push to color, solutions and higher volume users

Diversification

1

2

3

4

Dealer / Channel Acquisition

Major Buying Group

Giant Retailer is Aiming to

Penetrate Into B to B Market

Peter KowalczukPresident

Canon Solutions America

Canon Solutions America Product Portfolio

Canon Solutions

America Trends

STABILITY

Security

Cost of Data Breach

$7.35M*

58% of Malware Attack Victims

are Categorized

as Small and Medium

Businesses (SMBs)

$7.91M*

*Average cost per breach in U.S.

Expansion of Our 5 Pillar Security Strategy

We are expanding our 5 Pillar Security Strategy in two distinct areas:

Device Security and Cybersecurity

OFFICE

PRODUCTIVITY

SECURITY

DOCUMENT

DISTRIBUTION

MOBILE

PRINT

CONTENT

MANAGEMENT/

CAPTURE

PRINT

MANAGEMENT

DRIVER

MANAGEMENT

VERTICAL

ENTERPRISE

SOFTWARE

Expansion of Our Security Strategy

Canon Solutions America is partnering with Barracuda to

provide Security Awareness Training and Concierge Service

• Automatically test and train employees

• Embed learning into your everyday

business processes

• Make it easy for users to instantly

report suspicious emails

Concierge ServiceOnline Security Training

• Turnkey concierge service for customers who

do not have security expertise on staff

Expansion of Our Security Strategy – SIEM Solution

Increasing our ability to provide endpoint protection.

Server-less Printing

Customer Focus

MAXIMUM CUSTOMER

SATISFACTION

Nationwide Sales & Service

97% of customers

surveyed would

recommend Canon

Solutions America

Service!

Francis McMahon

Executive Vice President, Production Print Solutions

New PPS Customers with Inkjet Accounts

Record Page Growth in 2018

Billion83Pages

ProStream 1000: Changing Graphic Arts

4 Installs in 2018 with Incredible

Momentum in 2019

• 262 fpm/min (1170 letter/min duplex)

• 1,200 dpi plus Océ Multilevel at full speed

• Offset-coated, inkjet, uncoated papers

• Standard paper weight 40-300 gsm

• 21.25 mm print width (B2 Capable)

• Supreme print quality

• Outstanding productivity

• Wide media range

ProStream 1000: Incredible Success in 2018

The most successful new product introduction in PPS

history!

• 6.74M avg monthly

volume

• 98% Uptime

• General Comm Print

• Variable Postcards

• 4.15M avg monthly

volume

• 96% Uptime (includes

finishing)

• Premium DM

Both running Offset Coated stock

at full speed with 1200 dpi

A Canon Record

on the VPi300

10 Million Pages

in One Month!1,510 feet

high

Current Volume: 76 Million (2018)

Application: Books

Medias:

5.2 Million Domtar 20LB

2.3 Million Modi Neujet silk

13 Additional Medias

Efficient Operators

Commitment to Our Customers

“Canon Solutions America and PPS allow me to sleep at night.”

- Chris Kropac, PCI Group President

Rob ReddyVice President, BICG Océ Products Large Format, Canon U.S.A.

Senior Vice President, Large Format Solutions, Canon Solutions America

New Products

Canon imagePROGRAF Recent Introductions

New TM Series – 5-Color Pigment Printers New Professional Print & Layout (PPL)

• Built in 24” & 36” to reinforce core mid volume IJ segment

• Expand to new markets w/ switch to pigment ink

• Noise cancelling technology for office environments

• 36” models can produce 144 (A1) drawings/hour

• High yield ink

• Powerful photo layout and printing software for PRO Series

• Independent application or plug-in for Photoshop & Lightroom

• Create custom templates and Save Presets “favorite setting”

• Preview multiple images at once

• Zoom into and out of images

New Océ Arizona 1300 SeriesDo more. Do it smarter. Do it now.

• New addition to the world’s best

selling Arizona flatbed printer series

• The most automated, flexible and

productive mid level flatbed ever

• Advanced technologies:

– Océ Xpert self learning software

– New LED Curing system & LED inks

– Whiter white, clearer varnish

– Faster, instant on, maximum flexibility

New Océ Touchstone

• Easily set up jobs for multi layer,

raised profile printing effects such as:

– Braille applications

– Simulated oil painting brush strokes

– Special embossing effects

– Creates higher value applications

• Free designer extensions for Adobe

Creative Cloud

• Available on a variety of Océ Arizona

models

High Value Flatbed Applications

Océ Colorado 1640

Update

Océ Colorado Update

• 800+ placements worldwide

• Most productive 64” roll printer

• Transforming graphic print providers businesses

– Customers print volumes increasing

– Less operator involvement, less labor

– Lower costs, higher profits

– Printing applications easier and better

• e.g. wall covering panels

Colorado World of Wall Covering - WOW

• 5 Colorado large format printers from 5

countries printed the same wall covering

panels on the same media

• Displayed at 2018 SGIA

• Perfect registration, panel alignment

and no color shift

• Shows the Colorado is the perfect printer

to print wall covering panels

• Now with Type II certification for

un-laminated Dreamscape wallcovering

providing abrasion and fire retardancy

Canon’s Approach to the Evolving

Office Landscape

Introduction

Kristen Goldberg

Director, Enterprise Marketing

Canon U.S.A.

Mark Sinanian

Senior Director, Solutions Marketing

Canon Solutions America

Karsten Huster

President/CEO

NT-ware