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THE CANON STORY 2009/ 2010

© Michel GUNTHER / WWF-Canon

Contents

01 Kyosei: Canon’s Corporate Philosophy 02 Message from Top Management 04 Canon Now 06 Canon Ahead 20 Excellent Global Corporation Plan 22 Canon up to Now 25 Corporate Activities 35 Product Operations

Kyosei

The corporate philosophy of Canon is kyosei. A concise definition of this word would be “Living and working together for the common good,” but our definition is broader: “All people, regardless of race, religion or culture, harmoniously living and working together into the future.” Unfortunately, the presence of imbalances in our world in such areas as trade, income levels and the environment hinders the achievement of kyosei. Addressing these imbalances is an ongoing mission, and Canon is doing its part by actively pursuing kyosei. Truly global companies must foster good relations, not only with their customers and the communities in which they operate, but also with nations and the environment. They must also bear the responsibility for the impact of their activities on society. For this reason, Canon’s goal is to contribute to global prosperity and the well-being of mankind, which will lead to continuing growth and bring the world closer to achieving kyosei.

01

Message from Top Management

02

Improving management quality through continued innovation and progress.

In 2009, Canon’s business performance is feeling the impact of the global economic crisis. But for Canon, these tough times present a golden opportunity to bolster our corporate structure. We are making a major change in course for Phase III of the Excellent Global Corporation Plan, launched in 2006, from sound growth to improved management quality, and are now preparing for our next leap. Through the Excellent Global Corporation Plan, introduced in 1996, we transformed the company’s corporate mindset with a focus on total optimization and profit, and carried out innovative management reforms. These efforts contributed to creating the foundation on which Canon stands today. “Improved management quality” refers to the achievement of real-time management that immediately puts into practice strategies based on well-honed decision-making processes. To realize real-time management and become a truly global corporation, we will strengthen both cash flow management and supply chain management while enhancing product competitiveness and profitability to deliver results even amid shrinking markets. Canon sees itself growing and prospering over the next 100, or even 200 years, and is committed to becoming an excellent global company respected the world over. Based on our corporate philosophy of kyosei, we make every effort to contribute to society and fulfill our corporate responsibilities by constantly refining technology that benefits society. At the same time, we are also focusing on the needs of business and the environment so that our planet may flourish and the people who live on it prosper. As Canon moves forward, we look forward to your continued understanding and support.

For Canon, 2009 is a year to focus our energies on the next great leap forward. Amid an economic crisis of unprecedented proportions, we are working hard to improve management quality so that we can hit the ground running once the business climate turns around. More crucial than anything in this effort is the timely release of highly competitive new products realized through a range of innovations, including the development of key components. As we aim for the overwhelming No.1 market position in all current business areas, we are doubling our efforts to establish “cross-media imaging,” enabling people to freely and vividly express themselves, giving form to their imagination and creativity through advanced synergies between Canon imaging devices. Additionally, we are working to realize advanced supply chain management through IT innovations aimed at consolidating information for all b