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1. THE CANON STORY
2 012
2012 / 2 013

2. Kyosei
Contents
01 Kyosei : Canon’s Corporate Philosophy
02 Message from Top Management
04 Canon Now
22 Excellent Global Corporation Plan Phase IV
24 Canon up to Now
27 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 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

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 Japan
Earthquake. But Canon has always viewed a challenging environment as an
opportunity for great advances. Addressing the needs of the changing times
flexibly 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 IV
of the Excellent Global Corporation Plan, the company’s medium- to long-
term management plan launched in 2011, in accordance with our corporate
philosophy of kyosei.
We aim to achieve the overwhelming No. 1 position in the world in our
current business domains by bringing to market attractive new products and
services in a timely manner.
In our marketing activities, we will work to strengthen our solutions and
services businesses while boosting sales in rapidly growing emerging
markets. In research and development, the source of Canon’s competitive
strength, we are focused on creating innovation in the U.S. and Europe,
further developing our next-generation medical business and cultivating
new technologies in the field of industrial equipment.
We will also work to achieve globally optimized production, the total
optimization of companywide operational processes through the full
implementation of IT systems, and the acceleration of the commitment
to “quality first.” At the same time, we will give thorough consideration to
environmental and compliance issues and work to cultivate human resources
capable of leading efforts to realize these transformations as part of our
activities to fulfill our corporate social responsibilities.
Through these activities, Canon seeks to grow and prosper over the next
100, or even 200, years with the goal of becoming a truly excellent global
company that is admired and respected the world over.
As we move forward, we look forward to your continued understanding
and 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 segments
Net 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 Components
06

9. Interchangeable Lenses Inkjet Printers / Commercial Photo Printers Large-Format Inkjet Printers Network Cameras
Multifunction Inkjet Printers
Compact 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 Markets
10

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 the
latest Canon products, including digital we strive to help people experience and enjoy the benefits of enhanced
cameras 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 EOS
cameras, 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.
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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 challenge
Canon imagePRESS systems operate at full
capacity, 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 Solutions
16

19. The innovative idea of using multimedia
projectors to display images on the tables
has 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 Pol
18

21. Looking out for the future of young
people together with the Red Cross.
The problems we face in today’s society are not only those that are reported
by the media. If you look carefully around the world, you will find that many
social problems exist very close to home.
The Red Cross has the world’s largest humanitarian assistance network and
their activities transcend borders, religion and race. In Europe, not only are
they involved in dispute- and disaster-relief activities, they also focus their
energies on community healthcare and educating youths. Canon Europe,
which has long provided support for these activities through charity events
and various other means, formed a partnership with the Red Cross in 2006
to further strengthen the collaborative relationship the two organizations
share. The company actively cooperates with the Red Cross’s youth support
and education projects spanning 16 European countries, including the
United Kingdom, Belgium, Finland, France and the Netherlands, offering both
financial and physical support to help young people deal with the issues they
encounter in today’s society.
The Danish Red Cross launched the Study Café project to help youths from
disadvantaged communities go on to further education. Young volunteers
provide assistance by helping children with their schoolwork and discussing
the benefits of continuing studies. The Swiss Red Cross supports first-aid
training for young people.
At Canon, we believe that our corporate activities are made possible by
the development of society as a whole. To support the realization of a better
society, we will continue carrying out social contribution activities that are
rooted in local communities.
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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, and
Canon Image Square (India) cultivating human resources befitting
Building the foundations of a truly excellent global company
an environmentally advanced
corporation
Comprehensively reinforcing global The enterprising spirit at the heart of Canon
sales 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 the
As developing and resource-rich economies employ technologies that support energy company’s founding. Today, Canon actively
in Asia, South America and Africa join the savings and resource conservation through works to maintain a corporate culture that
ranks 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 to
our global sales structure accordingly. In recycling. In all of our corporate activities, develop personnel befitting a truly excellent
Europe 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 partnership
with Océ N.V. In Asia, we focus on the
Chinese market while expanding sales in
ASEAN 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 to
24

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 Global
of kyosei introduced IXUS) compact digital camera introduced printing system introduced Corporation Plan
with the company’s Phase IV launched
second 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 / Design
EOS C300 digital
cinema camera
introduced
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 research
28

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 applications
Kyoto University/Canon Joint Research Project High-Accuracy Color Management System
In collaboration with Kyoto University, we are Kyuanos, Canon’s high-accuracy color
pursuing practical applications for new medical management system, precisely matches colors
imaging technologies. At the Clinical Research among input and output devices, which
Center for Medical Equipment Development, can offer varying ranges of color expression.
which was established within Kyoto University, Not only does Kyuanos faithfully reproduce
clinical research is focusing on such themes colors, it also automatically compensates for
as AO-SLO for the early detection of retinal variances in color appearance due to paper
disease, 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 Sensor
Based on the image sensors used in our Display Development
digital 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-generation
sensor that is among the largest in the world. high-image-quality displays. We are currently
Installing the sensor in the Schmidt Telescope conducting R&D in such areas as organic
at the University of Tokyo’s Kiso Observatory, light-emitting diode displays and ultra-high-
Institute of Astronomy, enabled the video definition displays for professionals that
recording 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 and
Man-Machine Cell environmental impact when determining
Canon replaced its conveyer-belt assembly the locations for production bases. Advanced
lines with the cell production system, which automated production systems and in-
employs teams of skilled workers that house production enable us to improve price
manufacture each product in its entirety. This competitiveness by manufacturing products in
approach has evolved, and now makes use the same region in which they are consumed.
of advanced, high-production-capacity man- Canon Virginia
machine cells with workers performing tasks
requiring a human touch and robots handling
work 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 each
Canon Managed Document Services region. These efforts include enhancing local
In response to the needs of our customers, sales networks and bolstering service training,
Canon optimizes document input-output expanding awareness of the Canon brand
environments for businesses on a global and its trustworthiness, and introducing new
scale, offering a comprehensive range of products designed to satisfy local needs.
maintenance and operational services. A Canon India showroom in Mumbai
Through optimal device layout and
operational improvements, along with
the high standard of quality service Canon
provides worldwide, customers can realize
significant 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 Russia
34

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 the
potential of the U.S. market. Flexibly adapting to United States, Canon Business Solutions
evolving markets and customer needs, the company provides service and support for
business and production systems. By
constantly pursues new possibilities. With a renewed integrating our marketing operations
with those of Océ, we aim to deliver
focus on providing added value to customers, we solutions to meet the needs of an even
strive for growth in the market, attractive not only for greater number of customers.
Network MFD service training
its large size, but also for the opportunities it offers to
create 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 exhibit
36

39. Japan
A “Live Office” at Canon
System & Support’s
Kanagawa branch
The Canon Marketing Japan Group oversees New Data Center
Canon IT Solutions is building a data
marketing activities and provides solutions for the center featuring some of the most
Japanese market, capitalizing on the consolidated sophisticated technology and
security in Japan to protect valuable
strength of the Group’s 26 companies. The “Live customer information. The facility is
scheduled to begin operation in the
Office,” 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 also
delivers new solutions, including a data center-
Customer Support
based cloud service.
Canon Customer Support, which
For lifestyles, for business, and for society, Canon enables the prompt and efficient
handling of customer inquiries, was
Marketing Japan Group is committed to delivering the first customer contact center in
Japan to receive the international
value across a wide range of fields that surpasses
COPC-2000 CSP management quality
customer 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 Recycling
Action for Green
In 1996, Canon initiated a service in Japan
Based on our Action for Green environmental to collect used ink cartridges, and has
vision, 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 been
covers all phases of the product lifecycle— collecting and recycling toner cartridges for
produce, 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 equipment
Canon sales offices and other business
facilities are designed to conserve energy and
other resources. Canon Spain’s headquarters
building, for example, adopts a system that
optimizes energy efficiency throughout the
entire structure. This system automatically
controls the amount of sunlight that enters Quality Verification Testing
the building to maintain a comfortable Canon uses strict standards when conducting
temperature and optimal lighting while quality testing to ensure products are safe and
minimizing 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