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  • 1. THE CANON STORY 2 012 2012 / 2 013
  • 2. KyoseiContents01 Kyosei : Canon’s Corporate Philosophy02 Message from Top Management04 Canon Now22 Excellent Global Corporation Plan Phase IV24 Canon up to Now27 Activities Focused on Tomorrow
  • 3. 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. Through corporate activities based on kyosei, Canon strives to resolve imbalances in the world.Truly global companies must foster good relations, not only with their customersand 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
  • 4. Message from Top Management We aim to transform ourselves through flexible ideas in response to the changing times.02
  • 5. 2012 is a year Canon embraces new challenges. In 2011, we faced many ordeals, beginning with the Great East JapanEarthquake. But Canon has always viewed a challenging environment as anopportunity for great advances. Addressing the needs of the changing timesflexibly and with inspired ideas, we aim to return to a path of growth. And to promote further growth, we will steadily move forward with Phase IVof the Excellent Global Corporation Plan, the company’s medium- to long-term management plan launched in 2011, in accordance with our corporatephilosophy of kyosei. We aim to achieve the overwhelming No. 1 position in the world in ourcurrent business domains by bringing to market attractive new products andservices in a timely manner. In our marketing activities, we will work to strengthen our solutions andservices businesses while boosting sales in rapidly growing emergingmarkets. In research and development, the source of Canon’s competitivestrength, we are focused on creating innovation in the U.S. and Europe,further developing our next-generation medical business and cultivatingnew technologies in the field of industrial equipment. We will also work to achieve globally optimized production, the totaloptimization of companywide operational processes through the fullimplementation of IT systems, and the acceleration of the commitmentto “quality first.” At the same time, we will give thorough consideration toenvironmental and compliance issues and work to cultivate human resourcescapable of leading efforts to realize these transformations as part of ouractivities to fulfill our corporate social responsibilities. Through these activities, Canon seeks to grow and prosper over the next100, or even 200, years with the goal of becoming a truly excellent globalcompany that is admired and respected the world over. As we move forward, we look forward to your continued understandingand support. Fujio Mitarai Chairman & CEO Canon Inc. 03
  • 6. Canon Now We will continue following the path of innovation that has brought us to now and will lead us to tomorrow. Net sales (2 011) Asia & Net income (2 011) Oceania Japan 22.2% 19.5% $45,608 million Europe 31.3% Americas 27.0% $3,188 million Global ranking (2011) Net sales $12,333 million FORTUNE Global 500 * Americas Europe Fortune July 25, 2011 issue Employees 19,205 (Net sales) Global ranking 204th (216th in ’10) (Net income) Global ranking 171st (202nd in ’10) Evaluation of five performance measures for fiscal 2010, including net sales, net income, and total assets FT Global 500 Financial Times June 25/26, 2011 issue (Market capitalization) Global ranking 122nd (93rd in ’10) (8th in Technology Hardware & Equipment sector) Market capitalization ranking on March 31, 2011 (the number of outstanding shares multiplied by share price) * FORTUNE Global 500 is a registered trademark of Time Inc. in the United States. Top ten U.S. patent holders by company (2011) Rank Organization Number of patents 1 IBM 6,163 2 SAMSUNG ELECTRONICS 4,899 Canon U.S.A., Inc. Canon Europe Ltd. 3 CANON 2,813 4 PANASONIC 2,566 5 TOSHIBA 2,478 6 MICROSOFT 2,306 7 SONY 2,282 8 SEIKO EPSON 1,535 9 HON HAI PRECISION INDUSTRY 1,485 Major operational sites 10 HITACHI 1,464 Research & Development • Based on weekly patent counts issued by the United States Patent and Trademark Office. Manufacturing • IBM is an abbreviation for International Business Machines Corporation. Sales & Marketing Notes: • Net sales and employee numbers are based on consolidated financial statements for the fiscal year ended December 31, 2011. • U.S. dollar amounts are translated from yen at the rate of JPY78=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2011, solely for the convenience of the reader.04
  • 7. Consolidated subsidiaries (2 011) Employees (2 011) Asia & Japan Oceania 277 198,307 43.4% 35.5% Europe Americas 11.4% 9.7% Business segmentsNet sales $14,270 million Asia & Net sales $19,005 million Sales ratio per segment (%)Employees 22,739 Oceania Employees 156,363 Consumer Business Unit • Including Japan 36.9% Office Business Unit Canon Inc. Headquarters 53.9% Canon (China) Co., Ltd. Canon Marketing Japan Inc. Industry and Others Business Unit Canon Australia Pty. Ltd. 11.8% • Sales ratios do not total 100% due to sales between segments of 2.6%. 05
  • 8. Introduction to Canon Businesses Consumer Business Unit Digital Cinema Cameras Digital imaging enriches and expands the ways and means of communication in daily life. Digital Single Lens Reflex (SLR) Cameras Digital Compact Cameras Digital Camcorders Office Network Multifunction Devices Office Business Unit A variety of digital imaging solutions that deliver high image quality, high precision and high speed. Solutions Software Laser Multifunction Devices s Semiconductor Lithography Equipment Ophthalmic Equipment Document Scanners Color Label / Card Printers LCD Lithography Equipment Digital Radiography Systems Handy Terminals Components06
  • 9. Interchangeable Lenses Inkjet Printers / Commercial Photo Printers Large-Format Inkjet Printers Network Cameras Multifunction Inkjet PrintersCompact Photo Printers Image Scanners Multimedia Projectors Personal Information Products Broadcast Equipment Toner Cartridges Digital Production Printing Systems Laser Printers Industry and Others Business Unit Imaging technologies trusted by professionals that contribute to many different industries.Die Bonders Organic LED Panel Manufacturing Equipment nt Vacuum Thin-Film Deposition Equipment 07
  • 10. Lights! Camera! Action! Answering the call of Hollywood. Imagine a scene from your favorite movie. Now picture this: behind the scenes there were large motion picture cameras, extensive lighting equipment and numerous staff. Yet, despite the elaborate preparations and set-up, the movie’s director may not have been able to fully express his or her vision. In fact, for many scenes, a director is left with no choice but to settle for a compromise. With the launch of the Cinema EOS System, Canon has made its long-awaited entry into the motion picture production industry, expanding the possibilities of creative expression while delivering exceptional imaging quality. With its compact, lightweight body, the EOS C300 digital cinema camera facilitates filming in confined spaces, such as the inside of a car. Its exceptional mobility also enables such shooting possibilities as mounting the camera on a radio-controlled helicopter. But perhaps what amazes filmmakers the most is the outstanding image quality. The EOS C300 even makes possible the capture of sharp, clear, detail-rich images in dark settings that would otherwise require additional lighting. Ushering in this new wave of filmmaking were the movie-shooting capabilities incorporated in the EOS 5D Mark II digital SLR camera. Industry professionals from around the world have praised the rugged performance of its compact, lightweight body, the wide lineup of interchangeable lenses it accommodates, Film industry professionals check out the and the stunning image quality and high sensitivity it delivers. Producing high- performance of the EOS C300. Training programs featuring seminars by experts quality cinematic images with beautiful background blur, the camera has been are offered. used in the production of a number of major motion pictures and television dramas. Spurred by the popularity of the 5D Mark II, Canon sought input from filmmakers working on the front lines of the industry and applied the feedback to the development of the Cinema EOS System lineup of cinematography products. With more than 70 high-performance interchangeable lenses, including new EF Cinema Lenses, the system offers extraordinary expressive capabilities. To provide complete support and direct communication with professional users, the Canon Hollywood Professional Technology & Support Center was recently opened in the heart of the U.S. cinema and television production industry . Canon is striving to provide visual storytellers with the means to convey their stories as envisioned. Perhaps the day is not far off when we will be able to enjoy watching scenes that could previously only be dreamed of.08
  • 11. The Canon Hollywood Professional Technology & Support Center is located in the heart of Hollywood. EF Cinema Lenses are the culmination of more than 70 years of lens technology expertise and knowhow.Cinema EOS System 09
  • 12. A bustling street in rapidly developing Ahmedabad, India’s seventh largest city. Image Square stores share a unified design that enhances Canon’s brand image. Expanding into Emerging Markets10
  • 13. In rapidly growing Ahmedabad, India, communication is blossoming. In the state of Gujarat in western India lies the Ahmedabad District, home of some of the most phenomenal economic growth in one of the world’s fastest developing nations. Buses, cars, rickshaws, motorcycles, bicycles and pedestrians busily shuttle in all directions around the city. Huge new shopping malls, a testament to the rising prosperity, are springing up one after another. In line with this growth has been rising demand for products and services that enhance quality of life. For Canon digital cameras and printers, which offer high image quality and ease of use, the future looks bright indeed. In anticipation of continued rise in demand, Canon India has rolled out a chain of branded retail stores called Canon Image Square. At the stores, customers are able to handle Canon digital cameras and printers to experience their performance and ease of use before purchasing them. With knowledgeable and attentive staff on hand to answer questions about the products, Image Square has gained a reputation for trustworthiness and become a popular shopping destination. As of the end of 2011, there were some 50 Canon Image Square stores in 32 major cities across India. By the end of 2014, we aim to expand this number to 300 stores in 150 cities. Canon also carries out a range of marketing activities in other emerging markets, including China, Indonesia, Russia and Brazil. All around the world,Customers get a hands-on look at thelatest Canon products, including digital we strive to help people experience and enjoy the benefits of enhancedcameras and inkjet and laser printers. communication through Canon’s high-quality imaging capabilities. 11
  • 14. DNA diagnosis could soon make possible customized medical treatment. What if you could take precautions to avoid future illnesses? What if side effects from drugs could be anticipated and avoided? In the U.S., which stands at the forefront of genetic diagnosis, DNA testing is starting to challenge even conventional healthcare wisdom. There are, however, numerous restrictions, such as the high cost of testing, the limited amount of information that a single test yields, and the time required for test results. Canon U.S. Life Sciences, Inc., headquartered in Maryland, home to one of the top “biotechnology clusters” in the United States, conducts R&D in DNA diagnostic systems. The company plays a key role in Canon’s new medical business domain. Applying heater technology employed in the company’s inkjet printers, which can produce heat instantaneously, Canon is developing a system that will enable DNA amplification, an essential part of DNA testing, at speeds never before achieved. Bringing together various Canon imaging technologies, the system also makes use of the CMOS image sensors found in Canon digital cameras, which deliver high-sensitivity performance to capture DNA reactions. Currently, even the simplest DNA tests take approximately one hour, but the practical application of this system could reduce the time to less than 15 minutes while enabling the testing of up to eight patients at once. Access to genetic diagnosis would not only enable the prediction of the effectiveness and side effects of drugs, but also open new doors to “order-made treatments” with each patient receiving the optimum combination of treatment and medication. More importantly, knowledge of one’s susceptibility to certain diseases would allow preventive measures to be taken at an early stage. The development of DNA diagnostic systems and our aim to establish related business in the U.S. represents an important step in the realization of Canon’s Three Regional Headquarters management system encompassing Japan, America and Europe. Through continued research and development in this vital field, Canon aims to advance this technology, making genetic testing more accessible to all.12
  • 15. DNA Diagnostic Device DNA and reagents are put into a cartridge and heated, enabling the amplification of the DNA for testing.CMOS image sensors, featured in EOScameras, are used to capture DNA. Targeting practical application in the near future, Canon U.S. Life Sciences conducts verification experiments on a daily basis. 13
  • 16. Commercial Printing Solutions Adjacent to Toyota Motor Corporation headquarters, Toyota Loops has a barrier- free interior design. Magazines and pamphlets printed by an imagePRESS C7000.14
  • 17. From catalogs to payroll stubs, the printing needs of large companies are growing. On the one hand: brochures, posters, direct mail, manuals and business cards. On the other: confidential documents, training materials and payroll stubs. Business entities have endless printing needs. Until about a decade ago, no matter how small a print job was, companies had no choice but to turn to professional offset printing for beautiful results. Today, they can use an in-house commercial digital press, which offers high image quality and durability. At Toyota Loops, a special-purpose subsidiary of Toyota Motor Corporation (TMC) that handles TMC’s internal printing, large commercial digital presses capable of paper cutting and bookbinding stand in an orderly row. Canon imagePRESS devices now handle the daily output of 300,000 sheets once handled by offset printing. Canon imagePRESS C7000-series machines deliver high-quality color printing while four monochrome imagePRESS devices produce high-resolution black and white output. Digital commercial printing simplifies such pre-output processes as the editing and processing of documents from different departments, which may come in various formats. From the first sheet to the last, users can realize high- quality printing with just the press of a few buttons, and without paper waste. This also benefits the in-house printing of payroll stubs—a challengeCanon imagePRESS systems operate at fullcapacity, handling a variety of printing work. because each stub contains unique information. Toyota Loops chose Canon for other reasons as well. When Toyota Loops was first established, Canon reviewed the placement of printers and the optimal workflow based on the mobility of employees. In Canon’s proposed arrangement, one person would be able to handle multiple printers, ensuring a safe, comfortable, high-efficiency printing environment that, unlike offset printing, is effluent free. In the growing field of commercial printing, Canon considers the customers’ point of view to propose products and solutions that support real needs. 15
  • 18. A parade of enticing dishes at the touch of a finger. A restaurant where ordering is half the fun. As if by magic, delectable dishes appear one after another on the white plates. Here, in the heart of London near Piccadilly Circus, an innovative restaurant called inamo st. james has been creating quite a stir. At inamo st. james there are no menus or tablecloths. There are just white tables and plates. Each table acts as a projection screen for a In addition to menu items, diners can select multimedia projector, which displays photos of the dishes onto the from a variety of scenes and patterns to project on the table to control the ambience. plates. Diners order the dishes they want with the touch of a finger on the projected image. In addition to being able to see the dishes on the menu, customers can use the projector to change the pattern displayed on the table to a design that reflects their mood. The table can also be used to play games. The multimedia projector that makes this system possible was developed by Canon. The high-definition images it projects vividly reproduce each dish in stunning detail. It also gives diners control over the ambience; the stark white tables can be instantly switched to something more colorful. The restaurant, which currently has two locations in London where a total of 128 multimedia projectors are in use, represents one example of how businesses can stay one step ahead through Canon imaging technology. We are committed to developing technologies that deliver new value to lifestyles and to society. A multimedia projector is installed directly above each table, adding color to communication during dining. Imaging Solutions16
  • 19. The innovative idea of using multimediaprojectors to display images on the tableshas proven a hit among customers. 17
  • 20. A meeting with the British Red Cross on plans to develop the skills of volunteers. Social Support Activities Canon supports the Study Café project, which has ten locations in eight major cities throughout Denmark. © Danish Red Cross After training, young people can go on to receive official first-aid certification. © SRC, Andri Pol18
  • 21. Looking out for the future of youngpeople together with the Red Cross.The problems we face in today’s society are not only those that are reportedby the media. If you look carefully around the world, you will find that manysocial problems exist very close to home. The Red Cross has the world’s largest humanitarian assistance network andtheir activities transcend borders, religion and race. In Europe, not only arethey involved in dispute- and disaster-relief activities, they also focus theirenergies on community healthcare and educating youths. Canon Europe,which has long provided support for these activities through charity eventsand various other means, formed a partnership with the Red Cross in 2006to further strengthen the collaborative relationship the two organizationsshare. The company actively cooperates with the Red Cross’s youth supportand education projects spanning 16 European countries, including theUnited Kingdom, Belgium, Finland, France and the Netherlands, offering bothfinancial and physical support to help young people deal with the issues theyencounter in today’s society. The Danish Red Cross launched the Study Café project to help youths fromdisadvantaged communities go on to further education. Young volunteersprovide assistance by helping children with their schoolwork and discussingthe benefits of continuing studies. The Swiss Red Cross supports first-aidtraining for young people. At Canon, we believe that our corporate activities are made possible bythe development of society as a whole. To support the realization of a bettersociety, we will continue carrying out social contribution activities that arerooted in local communities. 19
  • 22. Canon is cultivating global employees who respect different cultures and values. The effects of globalization are visible everywhere you look. An incident in a single country or region can ripple through lives and economies around the world. With operations worldwide, Canon enjoys the support of its customers across the globe. As a corporation that has achieved continued growth thanks to our basic strategy of globalization, a strategy adopted shortly after the Vietnamese trainees recognized for their leadership potential participate in a company’s founding, Canon must continue responding to the progress of training program. globalization. Therefore, it is critical that we cultivate a workforce that can excel in a global environment. One example where this applies is manufacturing, an area in which Canon excels. To develop future leaders capable of fulfilling active roles at our production sites across the world, we conduct global training programs to instill personnel with advanced technological knowledge and the organizational skills required at manufacturing facilities. Trainees spend about one year with experienced Japanese instructors, gaining the knowledge and skills for product manufacturing, and receiving practical experience using advanced equipment and measuring instruments. In addition, trainees study Canon’s management style and the Japanese language. Through interaction with instructors and colleagues, trainees get exposed to various cultures and values while learning about manufacturing approaches and different communication methods. It is important for global employees to remain conscious of the broader world around them. Therefore, it is essential they have contact with people from other cultures and be able to accept differing values while also successfully conveying their own values to others. For personnel who will take on management responsibilities at Canon in the future, we conduct training to provide deep international knowledge and broad global perspectives. To survive and excel in the era of globalization, Canon cultivates truly global personnel all around the world.20
  • 23. Managers from Canon Group companies worldwide participate in training to enhance their management skills.Cultivating Global Personnel Training in the metal stamping of parts, which is vital to manufacturing at Canon. 21
  • 24. Excellent Global Corporation Plan Phase IV Accelerating our transformation into a truly excellent global company. In 2011, Canon embarked on Phase IV of the Excellent Global Corporation Plan. Through Phases I, II and III, we strengthened our financial structure and compiled a steadily growing record of achievements. In pursuit of ongoing transformation, we aim to achieve sound growth based on the company’s corporate philosophy of kyosei with the goal of becoming a truly excellent global company admired and respected the world over. Nagasaki Canon Océ N.V. (Netherlands) Establishing a world-leading Digital SLR camera and multifunction inkjet printer globally optimized production Developing new business through system globalized diversification and Achieving the overwhelming No.1 establishing the Three Regional position in all core businesses and Headquarters management system Canon optimizes productivity by diversifying expanding related and peripheral production facilities worldwide. With the businesses aim of achieving rational production in Canon has intensified efforts to strengthen terms of product quality and cost, we two new business domains: medical comprehensively assess such factors as imaging and intelligent robots for automated distribution, parts procurement, labor, and At Canon, we believe sound growth is production. To date, we had made Japan risk. Production is further enhanced through predicated on strengthening our primary the center for innovation, promoting the in-house production of tools, materials businesses. With innovative and attractive business development and diversification. and technologies, including automated industry-leading products, and an Now, however, we are looking to M&A production systems. emphasis on highly profitable solutions and other methods to achieve innovation and services, we aim to achieve the in the U.S. and Europe as well, creating a overwhelming No. 1 position in each of global R&D framework based on our Three our primary businesses. At the same time, Regional Headquarters management system. we continue to grow secondary businesses in related areas, such as network cameras and the retail photo segment.22
  • 25. Leadership training imageRUNNER ADVANCE Imparting a corporate culture, andCanon Image Square (India) cultivating human resources befitting Building the foundations of a truly excellent global company an environmentally advanced corporationComprehensively reinforcing global The enterprising spirit at the heart of Canonsales capabilities has enabled us to continuously transform the company over many decades. This is As an environmentally progressive company, reflected in Canon’s guiding principles—the Canon pursues environmental conservation San-ji (Three Selfs) Spirit (refer to page 25)— hand in hand with business growth. We which have been passed down since theAs developing and resource-rich economies employ technologies that support energy company’s founding. Today, Canon activelyin Asia, South America and Africa join the savings and resource conservation through works to maintain a corporate culture thatranks of the world’s growth centers, Canon every stage of the product lifecycle—from values transformation. At the same time,continuously assesses trends and aligns initial design and production to eventual our international training programs help toour global sales structure accordingly. In recycling. In all of our corporate activities, develop personnel befitting a truly excellentEurope and the U.S., for instance, we are Canon undertakes efforts to reduce burden global company.strengthening our services and solutions on the environment.sales force and deepening our partnershipwith Océ N.V. In Asia, we focus on theChinese market while expanding sales inASEAN countries. 23
  • 26. Canon up to Now The history of Canon started with the enterprising spirit to make the world’s best camera. Precision Optical Instruments Precision Optical Industry, New York branch office Canola 130 calculator Laboratory established Co., Ltd. founded opened introduced Kwanon camera Japan’s first indirect X-ray Sole European distributor, prototype developed camera introduced Canon Europa, established Hansa Canon camera Company name changed to Canonet camera introduced Canon Camera Co., Inc. introduced Hansa Canon 35mm focal-plane-shutter Canonet Electric Eye (EE) camera Canola 130, the world’s first 10-key NP-1100, Japan’s first plain-paper copying camera electronic calculator machine A modest beginning in a small room Striving for the world’s best camera In 1933, a small laboratory dedicated to making high-quality In 1950, Canon’s first president, Takeshi Mitarai, went to America cameras was set up in a simple apartment room in the for the first time to attend an international trade fair. Having Roppongi area of Tokyo. At the time, all high-quality cameras seen modern factories and a high standard of living first hand, were European with the majority coming from Germany. upon his return, he built a fireproof factory of steel-reinforced It was in this small room that young people with a big dream concrete in the Shimomaruko area of Tokyo, which he saw as earnestly began their work on producing a high-quality essential for Canon to succeed in doing business with the world Japanese camera, marking the beginning of Canon. at large. Mitarai also made clear his respect for humanity by Through hard work and with an enterprising spirit, they stressing the importance of the San-ji, or Three Selfs, spirit, the eventually succeeded in building a prototype, which was guiding principle for Canon employees. In 1955, Canon made named Kwanon after the Buddhist goddess of mercy. The its first step into the global market with the opening of a U.S. following year, in 1935, Japan’s first-ever 35mm focal-plane- office in New York City. In 1957, Canon set up its sole European shutter camera, the Hansa Canon, was born, along with the distributor, Canon Europa, in Geneva, Switzerland. By 1967 Canon brand. exports already topped 50% of the company’s total sales. Canon’s Corporate DNA Respect for Humanity Behind Canon’s 70-plus-year history and development as a provide society with new advances. These motivating factors business lies its corporate DNA: a respect for humanity, an are in turn supported by a respect for humanity, which emphasis on technology, and an enterprising spirit that the encompasses meritocracy and an emphasis on good health. Canon Corporate company has consistently passed on since its foundation. The Canon is committed to passing its corporate DNA on to DNA enterprising spirit on which Canon was started as a venture future generations to ensure the company grows for another Emphasis on Enterprising company and the relentless drive to distinguish itself through 100, or even 200, years. Technology Spirit technology permeate the company, and have continued to24
  • 27. “Cameras in the NP-1100 copying AE-1 SLR camera BJ-80 inkjet printer right hand, machine introduced introduced introduced business machines in the left.” PPC-1 mask aligner LBP-10 laser printer CLC-1 digital full-color introduced introduced copying machine introduced Company name changed to Premier Company PC-10/20 personal copying EOS650 AF SLR Canon Inc. Plan launched machine introduced camera introduced AE-1, the world’s first SLR camera with a LBP-10, the world’s first laser printer with PC-10/20, the world’s first personal copying BJ-80, the world’s first inkjet printer using built-in microcomputer a semiconductor laser machine with an all-in-one cartridge system Bubble Jet technology The challenge of diversification Averting disaster with the Premier Company Plan Soon after its founding, Canon was hard at work in 1941 on By 1970, Canon grew to 44.8 billion yen in sales and more than diversifying itself with the introduction of Japan’s first indirect 5,000 employees. But hit by dollar and oil shocks, followed by X-ray camera and other products. In the 1960s, the company problems with a defective electronic calculator display took further steps toward diversification by adding electrical, component in 1974, the company fell on hard times. In the first physical and chemical technologies to its optical and precision half of 1975, it failed to pay a dividend for the first time since technologies. In 1964, Canon entered the office equipment becoming a public company. In 1976, Canon unveiled its Premier market with the debut of the world’s first 10-key electronic Company Plan, an ambitious strategy to transform Canon into calculator. In 1967, the management slogan “cameras in the an “excellent global company” through such means as right hand, business machines in the left” was unveiled and in introducing a vertical business group constitution and 1969 the company changed its name from Canon Camera Co., establishing a horizontal development, production and sales Inc. to Canon Inc. Canon took on the challenge of developing system. The plan proposed high ideals and pooled the Japan’s first plain-paper copying machine, which it introduced strength of its employees, enabling the company to in 1970, and realized further diversification from one challenging promptly recover. field to the next. The San-ji (Three Selfs) Spirit The Three Selfs, the foundation of the company’s guiding Take the initiative and be Self-motivation proactive in all things. principles that have been passed down since Canon was founded, are self-motivation, self-management and self- Conduct oneself with awareness. For Canon, which strives to be a truly excellent Self-management responsibility and accountability. global corporation while maintaining the legacy of its corporate DNA, the Three Selfs continue to serve as the Understand one’s situation and Self-awareness company’s most important guiding principles. role in all situations. 25
  • 28. Corporate philosophy PowerShot S100 DIGITAL ELPH (DIGITAL imagePRESS C7000VP digital production Excellent Globalof kyosei introduced IXUS) compact digital camera introduced printing system introduced Corporation Planwith the company’s Phase IV launchedsecond inauguration Excellent Global Corporation iR series of network imagePROGRAF iPF9000 Plan launched multifunction devices printer introduced introduced Toner cartridge collection and Canon Inc. ADRs listed on EOS-1Ds digital SLR imageRUNNER ADVANCE recycling program launched the New York Stock Exchange camera introduced network multifunction device introduced PowerShot S100 DIGITAL ELPH (DIGITAL iR3250 network multifunction device EOS-1Ds high-end professional digital imagePROGRAF iPF9000 large-format IXUS in other areas) compact digital camera SLR camera inkjet printer Canon’s second inauguration The Excellent Global Corporation Plan Canon continued to grow under the Premier Company Plan. Canon had developed unprecedented technologies and With the dawn of the personal computer age, Canon introduced carefully nurtured them to create business opportunities and to the world a series of products never before seen, among products unrivaled by any other company. But by the mid-1990s, them a personal copying machine based on an all-in-one the business division system that had been in place since the cartridge system, a laser printer with a semiconductor laser, 1970s was showing signs of wear. Canon also carried debt of and a Bubble Jet inkjet printer. Canon also began promoting more than 840 billion yen, meaning the company needed to global production in earnest on the road to becoming an improve its financial constitution if it was to carry out long-term excellent global company. Then, in 1988, the 51st anniversary R&D projects and launch new businesses. Fujio Mitarai became of the company’s founding, Canon announced its second Canon’s 6th company president in 1995, and in 1996 the inauguration and unveiled its corporate philosophy of kyosei, Excellent Global Corporation Plan was launched. Transforming an unfamiliar term at the time. It also began promoting the corporate mindset from partial to total optimization and such progressive and environmentally sound activities as from a focus on sales to a focus on profits, the new plan was toner cartridge recycling in addition to globalizing its the start of the innovations that characterize today’s Canon. development sites. The Excellent Global Corporation Plan Phase I 1996-2000 Phase II 2001-2005 Phase III 2006-2010 To strengthen its financial base, Canon transformed its mindset Aiming to become No. 1 in all major business areas, Canon Canon moved ahead with such growth strategies as to total optimization and a focus on profit. The company focused on strengthening product competitiveness along enhancing existing businesses and expanding into new areas. instituted various business innovations, including selection with the changing times, stepping up efforts to digitize its Through the thorough implementation of SCM and IT and consolidation of business areas, and reform activities in products. The company also conducted structural reforms reforms, the company targeted the realization of “real-time such areas as production and development. across all Canon Group companies around the world. management” to respond quickly to changes.26
  • 29. Research and Development / DesignEOS C300 digitalcinema cameraintroduced Procurement / Production / Distribution Activities Focused on Tomorrow EOS C300 digital cinema camera Sales and Marketing / Post-Purchase Services Seeing beyond the possibilities of today, Canon pursues innovations that enrich lifestyles and satisfy our social responsibilities. Environment / Quality Social Support Activities 27
  • 30. Research and Development / Design For a future of greater convenience and comfort, we are developing advanced technologies toward the creation of never-before-realized value. The research and development of next-generation printing materials Never content with the status quo. Continuously pursuing transformation. In the 70 years since our founding, Canon has always seen opportunities in challenges. Focused on innovation in technology, we consistently rise to face each new challenge. Terahertz imaging technology research28
  • 31. Super Machine Vision Super Machine Vision (SMV) endows robots with highly intelligent autonomous functionalities, such as machine learning, recognition and visual inspection. To develop SMV, Canon drew from a range of technologies, including imaging, recognition and information-processing technologies, cultivated during the development of diverse products. We aim to apply SMV in various industrial capacities and for safety monitoring. Development of robotic vision for industrial applicationsKyoto University/Canon Joint Research Project High-Accuracy Color Management SystemIn collaboration with Kyoto University, we are Kyuanos, Canon’s high-accuracy colorpursuing practical applications for new medical management system, precisely matches colorsimaging technologies. At the Clinical Research among input and output devices, whichCenter for Medical Equipment Development, can offer varying ranges of color expression.which was established within Kyoto University, Not only does Kyuanos faithfully reproduceclinical research is focusing on such themes colors, it also automatically compensates foras AO-SLO for the early detection of retinal variances in color appearance due to paperdisease, and photoacoustic mammography type, lighting conditions and other factors.enabling the early detection of breast cancer. An AO-SLO (adaptive optics scanning laser ophthalmoscope) 3D CAD Design Canon previously used two types of 3-D computer-aided design. Now we have integrated this into one system, enabling all design information, from development to production preparation, to be shared throughout the company. For example, we are now able to evaluate different parts and mass-production methods while concurrently conducting product development.Ultra-Large-Scale, Ultra-High-Sensitivity CMOS SensorBased on the image sensors used in our Display Developmentdigital cameras and other products, Canon As a world leader in the field of imaging,produced an ultra-high-sensitivity CMOS Canon is actively developing next-generationsensor that is among the largest in the world. high-image-quality displays. We are currentlyInstalling the sensor in the Schmidt Telescope conducting R&D in such areas as organicat the University of Tokyo’s Kiso Observatory, light-emitting diode displays and ultra-high-Institute of Astronomy, enabled the video definition displays for professionals thatrecording of faint meteors with an equivalent surpass Full HD resolution.apparent magnitude of 10. Ultra-high-definition display 29
  • 32. Procurement / Production / Distribution Streamlining our supply chain while raising quality. Pursuing waste-free production through innovation. A man-machine cell (Nagasaki Canon) At Canon, we strive to realize the ultimate in production through the implementation of information technology. From procurement and production through to distribution, sales and service, we are streamlining our supply chain management. Cell production (Canon Suzhou)30
  • 33. Globally Optimized Production To realize globally optimized production, Canon comprehensively considers such factors as costs, distribution, procurement, labor andMan-Machine Cell environmental impact when determiningCanon replaced its conveyer-belt assembly the locations for production bases. Advancedlines with the cell production system, which automated production systems and in-employs teams of skilled workers that house production enable us to improve pricemanufacture each product in its entirety. This competitiveness by manufacturing products inapproach has evolved, and now makes use the same region in which they are consumed.of advanced, high-production-capacity man- Canon Virginiamachine cells with workers performing tasksrequiring a human touch and robots handlingwork best suited to machines. Canon Hi-Tech Thailand Green Procurement Green procurement prioritizes products with minimal environmental burden. To ensure compliance with evolving regulations, we regularly update our green procurement standards, which were first published in 1997. In addition, Canon actively participates in activities organized by JEITA (Japan Electronics and Information Technology Industries Association) aimed at standardizing the survey process used to assess suppliers and other business partners. On-site verification at a green procurement facility Automated Production Systems Canon is currently building automated production lines capable of running nonstop every day of the year. Development is moving forward thanks to a concerted effort by our design, production technology, and manufacturing technology divisions. Improvements in such areas as the quality control of parts are contributing to enhanced production efficiency. Automated production of toner cartridges In-House Production Next-Generation Logistics System Aiming to deliver innovative products while After upgrading our distribution and trading minimizing costs, Canon works to produce systems, Canon launched in 2011 a next- parts and equipment in-house. In addition generation logistics system. We are moving to key components and devices, the Canon closer toward realizing a comprehensive IT Group internally manufactures functional parts, system enabling the entire supply chain to be circuit boards and other major components, centrally managed by integrating order-based and even the molds and manufacturing production and shipping information. equipment used to create parts. An inkjet printer shipment (Canon Vietnam) Image sensor production (Canon Precision) 31
  • 34. Sales and Marketing / Post-Purchase Services In business and in our daily lives, Canon delivers the latest life-enriching products and solutions to customers around the world. A Canon network multifunction device in use at an elementary school (Chicago, U.S.A.) The Canon brand is a registered trademark in over 180 countries and regions and our global sales network continues to expand and evolve. Beyond ensuring that new products reach customers in a timely manner, Canon offers solutions and services that are ahead of the times. Our marketing activities are focused on securing the trust of our customers to ensure that Canon will remain their brand of choice.32
  • 35. Europe Americas Canon Europe Canon Inc. Canon U.S.A. Global Sales Structure Canon U.S.A., Canon Europe, Canon China, Canon Australia and Canon Marketing Japan oversee sales in their respective regions. Through the comprehensive implementation of supply chain management, marketing activities are coordinated with development and production operations through advanced IT systems to ensure that Canon products are Canon China Canon Australia Canon Marketing Japan delivered as needed anywhere in the world. Our sales network also plays an important role in gathering input from customers, which Asia Oceania Japan is fed back into future development and production processes. Marketing with Océ Canon collaborates with Océ in marketing activities. Utilizing both Océ’s products and sales network, we are further expanding our printing business. In addition to Europe, we are also strengthening our collaboration with Océ through the integration of our marketing operations in Asia and the United States. Canon product sales training at Océ Boosting Sales in Emerging Markets To better serve emerging markets in Asia, Russia, the Middle East and Africa, we are strengthening our sales capabilities in eachCanon Managed Document Services region. These efforts include enhancing localIn response to the needs of our customers, sales networks and bolstering service training,Canon optimizes document input-output expanding awareness of the Canon brandenvironments for businesses on a global and its trustworthiness, and introducing newscale, offering a comprehensive range of products designed to satisfy local needs.maintenance and operational services. A Canon India showroom in MumbaiThrough optimal device layout andoperational improvements, along withthe high standard of quality service Canonprovides worldwide, customers can realizesignificant cost savings and productivity gains. 33
  • 36. Sales Network Europe Sodexo (France) Canon Europe offers products, services and solutions uniFLOW With the print management software tailored to the needs of local customers. In recent uniFLOW, developed at Canon years, we have expanded our sales network into Europe, we have strengthened our ability to develop customer-tailored emerging markets, actively conducting marketing solutions. Contributing to the efficient operation of printing systems and activities in such countries and regions as Turkey, reduced total costs, the software has Russia, the Middle East and Africa. earned high marks from users. Fraport (Germany) Boosting Sales in the Russian Market Russia is recognized as a market with huge growth potential. Building on the strong reputation of Canon digital cameras, we aim to become a respected and admired brand in the printing field through nationwide marketing activities centered on our color output devices. The Canon booth at On Demand Russia34
  • 37. Americas Canon Information Technology Services (U.S.A.)Canon U.S.A. continues to grow by tapping into the Canon Business Solutions With more than 60 offices across thepotential of the U.S. market. Flexibly adapting to United States, Canon Business Solutionsevolving markets and customer needs, the company provides service and support for business and production systems. Byconstantly pursues new possibilities. With a renewed integrating our marketing operations with those of Océ, we aim to deliverfocus on providing added value to customers, we solutions to meet the needs of an evenstrive for growth in the market, attractive not only for greater number of customers. Network MFD service trainingits large size, but also for the opportunities it offers tocreate new business. Strengthening Sales in Latin America Canon Latin America has launched a full-fledged effort to boost Canon’s presence in the burgeoning Latin American market. We are expanding our marketing activities in such growing markets as Brazil, the region’s largest national market, as well as Peru and Colombia. A demonstration for dealers (Bolivia) 35
  • 38. Asia & Oceania A Canon China showroom in Beijing In Asia and Oceania, which includes the rapidly Marketing in China Canon China’s marketing and service growing markets of China and India, Canon China activities are tailored to the Chinese and Canon Australia play central roles in our market. Through the promotion of Chinese-language product brand marketing activities. Canon China, which oversees names and large-scale product launch events, the company is enhancing operations in Asia, takes into consideration each awareness of, and affinity for, the country and region’s unique customer needs to Canon brand among consumers. A product launch on Nanjing Road, Shanghai provide ideally suited products. The company aims to create an emotional bond with customers World of EOS through its marketing activities. Canon Australia’s Canon Australia adopted an sales and marketing activities focus on new interactive approach in its sales promotion campaign for digital distribution channels linking Canon products and SLR cameras, which included the launch of a Web community for services to customers throughout Oceania. photographers using Canon cameras and recognizing outstanding photographic works. An EOS camera photo exhibit36
  • 39. Japan A “Live Office” at Canon System & Support’s Kanagawa branchThe Canon Marketing Japan Group oversees New Data Center Canon IT Solutions is building a datamarketing activities and provides solutions for the center featuring some of the mostJapanese market, capitalizing on the consolidated sophisticated technology and security in Japan to protect valuablestrength of the Group’s 26 companies. The “Live customer information. The facility is scheduled to begin operation in theOffice,” which makes use of the Group’s own offices autumn of 2012.as showrooms, offers document solutions centered NishiTokyo Data Center (artist’s conception)on digital multifunction devices. The company alsodelivers new solutions, including a data center- Customer Supportbased cloud service. Canon Customer Support, which For lifestyles, for business, and for society, Canon enables the prompt and efficient handling of customer inquiries, wasMarketing Japan Group is committed to delivering the first customer contact center in Japan to receive the internationalvalue across a wide range of fields that surpasses COPC-2000 CSP management qualitycustomer expectations. standard for four locations at once. Canon Customer Support Center 37
  • 40. Environment / Quality For the future of people and the planet, we strive to reduce environmental burden and offer more enriched lifestyles. A PIXMA MG6200-series multifunction inkjet printer featuring advanced environmental performance Canon pictures a future where the Earth’s thriving natural environment co-exists with society’s increasingly enriched lifestyles. To provide customers with a greater feeling of safety, peace of mind, and satisfaction, we are working tirelessly to improve product performance while minimizing environmental burden. Quality inspection of toner cartridges (Canon Virginia)38
  • 41. Bio-Based Plastic The use of bio-based plastic, a plant-derived material, reduces oil consumption and CO2 emissions during manufacturing. Canon and Toray Industries, Inc. developed a bio-based plastic material that achieves the world’s highest level of flame retardance, which is used in the exterior parts of Canon’s network multifunction devices and digital production printing systems. One of the industry’s largest exterior parts employing bio- based plastic Ink Cartridge RecyclingAction for Green In 1996, Canon initiated a service in JapanBased on our Action for Green environmental to collect used ink cartridges, and hasvision, Canon works to create a society in expanded this service to include Asia, Oceania,which enriched lifestyles and the Earth’s North America and Europe. Furthermore,environment can co-exist. Action for Green for more than 20 years, Canon has beencovers all phases of the product lifecycle— collecting and recycling toner cartridges forproduce, use and recycle—and we carefully laser printers and other devices worldwide.monitor the progress of all related activities. Collection of used ink cartridges (Singapore) Improving Products Based on Customer Feedback To improve the quality of our products, Canon gathers customer feedback and applies it during new product development. For example, in response to requests from medical practitioners, we produced wireless digital radiography devices that are free of cables. In addition to being easier to use, these devices are compact and lightweight, offer reduced X-ray exposure to patients, and deliver high-image-quality results.Environmentally Conscious Office Design R&D for wireless digital radiography equipmentCanon sales offices and other businessfacilities are designed to conserve energy andother resources. Canon Spain’s headquartersbuilding, for example, adopts a system thatoptimizes energy efficiency throughout theentire structure. This system automaticallycontrols the amount of sunlight that enters Quality Verification Testingthe building to maintain a comfortable Canon uses strict standards when conductingtemperature and optimal lighting while quality testing to ensure products are safe andminimizing energy use. reliable. Measurement testing for such aspects as Canon Spain headquarters noise, flame resistance and electromagnetic radiation is conducted at state-of-the-art facilities that have been certified for ISO/IEC and UL testing. As a result, we are able to increase development speed and product quality. Anechoic chamber (Tamagawa General Measurement Testing Laboratory) 39
  • 42. Social Support Activities Striving to be a globally admired and respected company through CSR activities that help build a better society. Canon Green Library for Kids provides textbooks and children’s books. (Vietnam) To fulfill our social responsibility as a good corporate citizen, Canon carries out a diverse range of activities in accordance with the company’s newly adopted CSR policy. These activities, which include environmental conservation, the promotion of arts and culture, and support in disaster-stricken areas, are designed to Canon PhotoMarathon (Singapore) meet the needs of each region.40
  • 43. Canon Group CSR Activity Policy The Canon Group’s approach to CSR is spelled out in our CSR activity policy. Leveraging our advanced technological strengths, global business deployment, and diverse, specialized human resources, we aim to contribute to the realization of a better society. The Tsuzuri Project The Tsuzuri Project is a social-contribution Canon Wind initiative jointly organized by Canon and Canon Wind Inc., a special subsidiary of Oita the Kyoto Culture Association (NPO). Canon Canon Inc., was established in cooperation digital technology and traditional Japanese with the Gyoun Welfare Association to expand craftsmanship come together to create high- employment opportunities for people with resolution full-scale facsimiles of Japanese intellectual disabilities. Many of Canon Wind’s cultural assets, many of which are no longer employees manufacture accessories for the in Japan. As the works are donated to digital cameras produced by Oita Canon. museums and the original owners, the project Canon Wind staff at work contributes to the passing on of important Japanese culture. A section of Seven Sages in a Bamboo Grove, Kenninji Temple WWF Conservation Partner In 1998, Canon Europe became the first corporate Conservation Partner of WWF (World Wide Fund For Nature). This alliance has enabled WWF to expand awareness of the Polar Bear Tracker project and provided imaging equipment for activities in Europe, the Middle East and Africa. Mondweg Elementary School in Vienna, AustriaEnvirothonSince 1997, Canon U.S.A. has supportedEnvirothon, one of the largest environmentaleducation competitions for high school Green Volunteer Actionstudents in North America, which attracts Green Volunteer Action is a program formore than 500,000 participants every year. Chinese university students organized byIn 2011, some 270 U.S. and Canadian winners Canon China in cooperation with the Chinafrom the preliminary rounds participated in Wildlife Conservation Association. Participantsthe final round of the competition. Through learn animal and plant photography andfieldwork and presentations, Envirothon helps their photographs are used in environmentalstudents deepen their understanding of education materials. In 2011, studentnature and the environment. participants from ten universities across An outdoor class on aquatic ecosystems China visited the Dinghushan National Nature Reserve in Guangdong. Nature photography field training 41
  • 44. CANON INC.www.canon.comCANON U.S.A., INC.www.usa.canon.comCANON LATIN AMERICA, INC.www.canonlatinamerica.comCANON CANADA INC.www.canon.caCANON EUROPE LTD.www.canon-europe.comCANON EUROPA N.V.www.canon-europe.comCANON (UK) LTD.www.canon.co.ukCANON FRANCE S.A.S.www.canon.frCANON DEUTSCHLAND GmbHwww.canon.deCANON (CHINA) CO., LTD.www.canon.com.cnCANON HONGKONG CO., LTD.www.canon.com.hkCANON SINGAPORE PTE. LTD.www.canon.com.sgCANON AUSTRALIA PTY. LTD.www.canon.com.au ©Canon Inc. 2012 PUB.AEP036 0612