Hello, everyone. I am Masachika Adachi. Thank you for taking the time out of your busy schedule to attend this briefing on our financial results and management policies. I will explain the long-term management objectives, 2026, 2030, and the medium-term management plan, 2026-2028. This is today's agenda. We will start with a review of the long-term management objectives, 2021-2025. This is a summary of our review. We continued to perform strongly, achieving increases in sales and profits for five consecutive fiscal periods and managing to set record highs in operating income, ordinary income, and net income attributable to owners of the parent. With regard to management indicators, we succeeded in achieving the initial plan figures set in April 2021 for all indicators.
I will go into more detail later, but the IT Solutions business we are focusing on grew significantly, with sales reaching the target of JPY 300 billion ahead of schedule and going on to exceed JPY 340 billion. On the financial front, we practiced management focused on capital efficiency, aggressively making growth investments while at the same time conducting treasury stock acquisition and eliminating short-term loans to the parent company. We also succeeded in increasing the dividend per share to 2.8x the 2020 level. Also from a management foundation perspective, we established our purpose, indicating the direction we need to move in going forward. In addition, we reviewed the composition of the board of directors and established a special committee.
I would like to reiterate that our ability to deliver such a strong business performance is largely down to the initiatives we have implemented in line with our long-term management objectives since 2016. Let's review the past 10 years in light of these initiatives. This slide focuses first on the five-year period from 2016 to 2020. During this five-year period, we sought transformation to a robust structure by implementing a strategy of business selection and concentration and transforming our operating structure to one tailored to different customer segments. The key point here is that the transformation of our operating structure into one tailored to different customer segments in 2018 made it easier for us to conduct proposal activities that accurately met customer needs.
I believe that the structural reform of low profitability businesses, the improvement of profit through aggregation of common functions supporting business divisions, and the strengthening of customer contact points through structural changes led to improvement in profitability from 2021 onwards. Moving on to a review of the five-year period from 2021 to 2025. This five-year period began amid the business upheaval caused by the COVID-19 pandemic, but we were prepared thanks to the initiatives we had implemented in the five years from 2016 to 2020 and were able to minimize the slump in our business performance. With products in short supply due to semiconductor shortages and purchase prices rising, we further accelerated the IT Solutions business we had strengthened to date and turned around our business performance.
In the Canon products business, we increased profitability by strengthening business process transformation proposals and achieving both improved customer satisfaction and productivity in maintenance service. We also strengthened a stable revenue base by increasing recurring business in both the IT Solutions business and the Canon products business. Since the pandemic, the IT Solutions business has continued to grow steadily and become a core business, with a sales composition ratio exceeding 50% in 2025. In particular, the growth of maintenance and operation service outsourcing has been greater than planned and led to improvement in profitability. This growth has been achieved through the aggressive allocation of funds to growth investments to enable profitable growth. We have also aggressively executed M&A and investments to accelerate business growth. Going forward, we will focus on the realization of group synergy more than ever before.
In addition, we have also taken measures on the financial front. We have acquired treasury stock several times since 2024 and eliminated short-term loans to the parent company for the purpose of improving capital efficiency. From this perspective, I believe it was the long-term management objectives, 2021, 2025, that enabled us to achieve profitable growth by building on the foundations laid in the five years from 2016 to 2020 and steadily promoting adaptation to environmental changes and aggressive growth investments. I will now move on to a review of key topics. Let me begin with the IT Solutions business. Under our previous long-term management objectives, we set out and implemented strategies for different customer groups in pursuit of expansion of service type business. Although results vary for each KPI, we have managed to achieve significant growth in all KPIs compared with 2020.
As a result of pursuing expansion in service type business, the sales of the IT Solutions business as a whole have grown to JPY 343.4 billion, exceeding the JPY 300.0 billion sales target. Furthermore, highly profitable maintenance and operation service outsourcing, which has been a focus of our efforts, has grown significantly, with sales reaching a 136% increase compared with 2020. The composition ratio also rose steadily, increasing by 8 percentage points. In the Canon products business, we have been working on the goals of further enhancing added value and improving profitability. As I mentioned earlier, despite rising purchase prices during the pandemic, we managed to increase unit prices through stronger proposals incorporating IT solutions tailored to customers' industries and operations.
In maintenance service, we also focused on balancing improvement in customer satisfaction and improvement in the productivity of engineers. As a result, while the market as a whole was contracting, we succeeded in minimizing the decline in sales and managed to expand profit through higher profitability. Moving on to business investment. Under our previous long-term management objectives, we defined our primary area for growth investment as the IT Solutions business and focused on aggressive investment in this area. We have acquired three companies through M&A and invested in 17 companies, gaining colleagues who will work with us to expand the IT Solutions business. We have also invested in 14 companies through a CVC setup with a view to transformation of the business portfolio over an even longer term. We intend to continue steadily achieving sustainable growth through aggressive execution of growth investment.
One of the things we changed drastically under the previous long-term management objectives was our financial strategy. Over the five-year period from 2021 to 2025, our operating cash flow amounted to around JPY 210.0 billion. This is 1.5x that produced over the five-year period from 2016 to 2020. We used this operating cash flow together with cash on hand to make returns to shareholders, execute growth investments, and acquire treasury stock. In terms of shareholder returns through dividends, we raised our payout ratio and paid total dividends of JPY 71.8 billion. As for growth investments, we executed M&A, investments and other business investments in human resources, and investments in internal systems. As a result, growth investments amounted to JPY 172.6 billion.
We also implemented treasury stock acquisition several times to a total value of JPY 96.7 billion. Additionally, we focused on eliminating all of the short-term loans to the parent company, which had stood at JPY 180.0 billion five years earlier. I believe that our ability to generate cash flow has the potential to be even higher over the next five years, and I will explain the use of this cash flow later. Under our previous long-term management objectives, we promoted open innovation through activities such as M&A and investments, gaining more colleagues with high levels of expertise in their respective fields. In January 2024, we established the Canon MJ Group's purpose in order to unify the aspirations of group employees while further advancing co-creation and collaboration with stakeholders to accelerate the resolution of social issues.
On the human capital front, we are implementing measures to promote the upskilling and reskilling of all employees. We are also working to develop an infrastructure for cultivating human resources with high levels of expertise. We have also steadily implemented measures on the governance front, putting in place a structure for sound corporate management. As you can see, under the previous long-term management objectives, we have, I believe, made steady progress on various fronts through initiatives such as those mentioned. We will keep pushing forward, striving for the next growth phase. Now, I would like to explain my perception of the current status as we look five years ahead to 2030. With changes in the social environment picking up pace, it has become difficult to make any predictions, but I believe that changes such as those shown here are inevitable and almost bound to happen.
Changes such as these need to be addressed by all companies, and I believe that there are some business opportunities for us in these changes. In the face of such business opportunities, we will leverage our strengths and provide unique products and services. Through the progress we have made so far, we have developed the four strengths shown here. We have an extensive customer base encompassing customers ranging from large corporations to SMEs and individuals in areas including industrial equipment. In addition, we have dealings with business partners that specialize in many different areas. I believe our technological capabilities are a strength unique to us. We have a deep understanding of our customers and expertise developed through business activities. Additionally, we employ a large number of engineers who enable a consistent process from system construction to maintenance and operation.
Since we have strengthened recurring business in both the IT Solutions business and the Canon products business, we are able to maintain business links with customers and have a stable revenue base. Turning last to our financial structure, we have a robust, sound financial base and have increased our ability to generate cash flow. Leveraging our strengths, we will tap into the business opportunities mentioned earlier over the next five years. I will explain our newly formulated long-term management objectives 2026, 2030. This page provides the position of our new long-term management objectives in comparison with our past objectives prior to starting explanation. As I said in my review, during the five-year period from 2016 to 2020, we transformed to a robust management structure. During the five-year period from 2021 to 2025, we focused on accelerating profitable growth.
I would like the five-year period covered by the long-term management objectives, 2026-2030, to be a period when we move toward further leaps forward. This shows our vision and basic policies formulated based on the positioning mentioned in the previous page. We have set our vision as a corporate group dedicated to creating new businesses that drive future growth through the power of people and technologies. Our basic strategies are one, corporate value sustainably increased by solving social issues through business. Two, becoming a highly profitable corporate group centered on the growth of service-type businesses. Three, create a virtuous circle through the strengthening of management capital. This shows our management indicators. We target net sales of JPY 850.0 billion, operating income of JPY 75.0 billion, and ROE of 12%.
I will explain in more detail later, but in our core IT Solutions business, we will aim for net sales of JPY 500.0 billion with a service outsourcing sales target of JPY 200.0 billion. On the growth investment front, we plan to execute investments of JPY 200.0 billion over five years and also plan to make returns to shareholders through dividends of JPY 100.0 billion. This shows our perspective on the business portfolio and aiming for these management indicators. We will grow the IT Solutions business as a core business by balancing growth and improvement in profitability. We also intend to achieve non-continuous growth through M&A. In the Canon products business, we aim to strengthen profitability without any drop-off in sales. We will promote cross-selling with the IT Solutions business and pursue improvement in productivity.
Among specialized areas, we will focus on expansion of the industrial equipment business. We will also continue exploring to create new business. This shows our perspective on the cash allocation assumed as a basis for achieving business growth. In the five-year period from 2026 to 2030, we will generate operating cash flow of JPY 300.0 billion and allocate all of this to growth investments and shareholder returns through dividends. We plan to allocate JPY 200.0 billion to growth investments and JPY 100.0 billion to shareholder returns through dividends. We will use cash on hand not only for working capital, but also as M&A contingency funds and capital for treasury stock acquisition. This shows the main investment areas and content of our planned growth investments of JPY 200.0 billion.
As for the main investment areas, we will continue to focus growth investments on expansion of the IT Solutions business. In terms of investment content, we will make business investments to create service-type businesses in addition to M&A and other investments, and we will also continue to invest in human resources and IT and capital expenditures. As I explained with respect to growth investments, the enhancement of human capital is crucial for the realization of everything explained so far. In terms of engagement, we have implemented measures to improve engagement in the past, but going forward, we will achieve even higher engagement driven by a strong desire for growth built on a foundation of trust between the company and its employees. For the realization of highly skilled personnel, we will first and foremost continue to promote the upskilling and reskilling of all employees.
In addition, we will further expand personnel who undertake advanced duties and create new value regardless of area by enhancing training programs more than ever before, and also hiring outside talent where necessary. My presentation so far has focused on the long-term management objectives. We established this long-term management objectives and vision in line with a consistent philosophical structure based on the Canon Group corporate philosophy of Kyosei and our purpose. Moreover, on formulating the current long-term management objectives, we redefined Canon MJ Group's material topics as the seven shown in this slide. These seven matters that are high priorities for the Canon MJ Group and most important for stakeholders were extracted by identifying among internal and external stakeholders' expectations and demands. We will execute specific strategies according to this unshakable axis.
Next, I would like to explain our three-year plan from 2026 to 2028 for achieving our 2030 goals. This shows the 2028 target values we have set to achieve the 2030 management indicators. We will target net sales of JPY 750.0 billion and operating income of JPY 66.0 billion. I will now explain the plan in line with the business portfolio explained earlier. Starting with the IT Solutions business, we aim to achieve net sales of JPY 400.0 billion in 2028. Furthermore, starting from the current long-term management objectives, we are also partially revising the classifications of this business. We have changed formerly maintenance and operation service outsourcing into service outsourcing.
In addition, some operations previously classified under SI services and IT products and system sales that incorporate software services utilizing our company's intellectual property have been reclassified into the service outsourcing segment. Please refer to the appendix for further details. The key takeaway is that by expanding service type businesses, we will achieve growth in the service outsourcing category, which is the most profitable among the categories. In this service outsourcing category, we aim to achieve a sales composition ratio of 35% and net sales of JPY 140.0 billion in 2028 in order to target a sales composition ratio of 40% and net sales of JPY 200.0 billion in 2030. Expanding the service type business that was explained in the basic policies section is the most important policy for achieving growth in service outsourcing.
To this end, we have defined specific focus areas with a view to expanding the service-type business. For large corporations and quasi-major and upper-medium-sized enterprises, we will focus on value creation integration through services such as imaging x AI solutions, as well as on Business Process Services, BPS through BPO and IT outsourcing. For SMEs, we will focus on full support for SMEs through services such as Makasete IT DX series. Meanwhile, in the area of security, we will focus on total security through services such as cyber x physical security and cloud security services for all customer groups. We will set KPIs for each of these focus areas to drive strategy implementation. This shows the KPIs for each focus area. As also mentioned earlier, expanding service-type business is the key to expansion of sales from service outsourcing.
By identifying focus areas, we will achieve growth and improvement of profitability in the IT Solutions business alongside aggressive growth investment. Additionally, AI initiatives are essential for achieving growth in the IT Solutions business. We have already used AI to increase internal operational efficiency and improve development efficiency, and we have also made progress integrating AI into our services. Further use of generative AI is essential, and we will not only use AI internally, but also create highly unique services through synergy between accumulated know-how and our assets and through collaborative creation with customers. Moving on to the Canon products business. While significant growth in the market as a whole is not on the cards, there are customers that require Canon products, and we believe that we can maintain sales and strengthen profitability by making well aimed proposals to these customers.
In the B2B market, we will increase added value through cross-selling with the IT Solutions business and combined solution suggestions for the IT Solutions business. We will balance customer satisfaction improvement and productivity improvement in maintenance services. In the B2C market, we will conduct clearly targeted marketing activities. In both markets, data-driven decision making will be essential, and we will pursue higher productivity through sales structure optimization. A key strategy we will focus on in the B2B market is cross-selling with the IT Solutions business. We will leverage our broad customer base to increase the cross-selling rate by proposing Canon devices to customers we deal with in the IT Solutions business. Meanwhile, in the printing business, we will strengthen our ability to propose not only general OA outputs, but also devices that can be used in customer's industry-specific core operations.
In the B2C market, we will focus on customers with a medium to strong interest. We will get customers with a medium to strong interest to buy high performance cameras and interchangeable lenses for specific genres of photography, and also strengthen links with customers by encouraging them to sign up for our Canon ID website. By providing relevant services tailored to customer camera preferences such as EOS Academy, Photo Club members and maintenance, we will improve the customer experience and work to maximize LTV. In the industrial equipment business, which is a specialized area, we will build our strengths as a platform holder by matching the increasingly diverse needs of customers with various seeds. By leveraging our technological capabilities, we will be able to strengthen our partnerships with companies that possess the world's most advanced technologies in the semiconductor industry.
We will further enhance our products and expand the areas where we provide value. In terms of new business, we will drive the creation of new businesses originating from social issues, with emphasis on R&D functions. We are already pursuing investment through CVC and industry-government-academia collaboration, and we will further step up such initiatives. Finally, I would like to explain about shareholder returns. Looking at our dividend policy over the five-year period covered by the previous long-term management objectives, we paid dividends of JPY 71.8 billion. We will continue aiming for a payout ratio of around 40% or above, with a planned total dividend payout of JPY 100 billion over the next five years. As explained earlier. Next, I will explain our capital policy.
As part of capital policy under the current long term management objectives, we will implement a share split and the acquisition of treasury stock. While we continue to see dividends as central to shareholder returns, we also intend to flexibly execute treasury stock acquisition based on consideration of the market environment and our financial position. In addition to business growth, we also intend to achieve a target ROE of 12% through a combination of such active capital policy measures. During the five-year period from 2021 to 2025, we practiced management with a focus on capital efficiency and steadily implemented measures to accelerate profitable growth. The next five years will be a period when we work towards further leaps forward.
Based on our vision of a corporate group dedicated to creating new businesses that drive future growth through the power of people and technologies, we will achieve further improvement in our corporate value through a strong commitment on the part of each employee to work together with diverse, like-minded business partners to shape the future. We hope you will continue to look forward to great things from us. This brings me to the end of my presentation. Thank you very much.