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THE CANON STORYTHE CANON STORY2012 / 20132012 / 2013
Contents01
02
04
22
24
27
Kyosei : Canon’s Corporate Philosophy
Message from Top Management
Canon Now
Excellent Global Corporation Plan Phase IV
Canon up to Now
Activities Focused on Tomorrow
Kyosei
01
The corporate philosophy of Canon is kyosei.
A concise defi nition of this word would be “Living and working together for the common good,”
but our defi nition 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.
02
We aim to transform ourselves through fl exible ideas in response to the changing times.
Message from Top Management
03
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
fl exibly 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 fi eld 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 fi rst.” At the same time, we will give thorough consideration to
environmental and compliance issues and work to cultivate human resources
capable of leading eff orts to realize these transformations as part of our
activities to fulfi ll 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 MitaraiChairman & CEOCanon Inc.
(8th in Technology Hardware & Equipment sector)
Rank Organization Number of patents
1 IBM 6,163
2 SAMSUNG ELECTRONICS 4,899
3 CANON 2,8134 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
10 HITACHI 1,464
04
Notes: • Net sales and employee numbers are based on consolidated fi nancial statements for the fi scal 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.
• Based on weekly patent counts issued by the United States Patent and Trademark Offi ce.
• IBM is an abbreviation for International Business Machines Corporation.
Canon Now
Net salesNet sales (2 011) (2 011)
$45,608 million
Global rankingGlobal ranking (2011) (2011)
FORTUNE Global 500*
FT Global 500
Fortune July 25, 2011 issue
Financial Times June 25/26, 2011 issue
(Net sales)Global ranking
(Market capitalization)Global ranking
(Net income)Global rankingEvaluation of fi ve performance measures for fi scal 2010,
including net sales, net income, and total assets
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.
204th
122nd
171st
(216th in ’10)
(93rd in ’10)
(202nd in ’10)
Top ten U.S. patent holders Top ten U.S. patent holders by companyby company (2011) (2011)
Net incomeNet income (2 011) (2 011)
$3,188 millionJapan19.5%
Americas27.0%
Americas EuropeNet sales
Major operational sites Research & Development
Manufacturing
Sales & Marketing
Employees
million$12,333
19,205
Asia & Oceania 22.2%
Europe31.3%
We will continue following the path of innovation that has brought us to now and will lead us to tomorrow.
Canon U.S.A., Inc. Canon Europe Ltd.
05
36.9%
53.9%
11.8%
Consumer Business Unit
Offi ce Business Unit
Industry and Others Business Unit
Business segments Sales ratio per segment (%)
• Sales ratios do not total 100% due to sales between segments of 2.6%.
Net income (2 011) Consolidated subsidiariesConsolidated subsidiaries (2 011) (2 011)
277EmployeesEmployees (2 011) (2 011)
198,307Japan35.5%
Asia &Oceania
Net sales Net sales
Employees Employees
million million
• Including Japan
$14,270 $19,005
22,739 156,363
Americas9.7%
Asia & Oceania 43.4%
Europe11.4%
Canon (China) Co., Ltd. Canon Marketing Japan Inc.
Canon Inc. Headquarters
Canon Australia Pty. Ltd.
06
Introduction to Canon Businesses
Semiconductor Lithography Equipment
Offi ce Network Multifunction Devices
Ophthalmic Equipment Document Scanners Color Label / Card Printers
Digital Cinema Cameras
LCD Lithography Equipment
Digital Single Lens Refl ex (SLR) Cameras
Digital Radiography Systems
Digital Compact Cameras
Handy Terminals
Solutions Software
Components
Laser Multifunction Devices
Digital Camcorders
s
Digital imaging enriches and expands the ways and means of communication in daily life.
A variety of digital imaging solutions that deliver high image quality, high precision and high speed.
Consumer Business Unit
Offi ce Business Unit
07
Interchangeable Lenses
Toner Cartridges
Inkjet Printers / Multifunction Inkjet Printers
Digital Production Printing Systems
Commercial Photo Printers Large-Format Inkjet Printers Network Cameras
Die Bonders
Compact Photo Printers
Organic LED Panel Manufacturing Equipment
Image Scanners
Laser Printers
Multimedia Projectors
Vacuum Thin-Film Deposition Equipment
Personal Information Products Broadcast Equipment
nt
Imaging technologies trusted by professionals that contribute to many diff erent industries.
Industry and Others Business Unit
08
Film industry professionals check out the
performance of the EOS C300. Training
programs featuring seminars by experts
are off ered.
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 fi lming in confi ned 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 fi lmmakers 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 fi lmmaking 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,
and the stunning image quality and high sensitivity it delivers. Producing high-
quality cinematic images with beautiful background blur, the camera has been
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
fi lmmakers 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 off ers 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.
09
EF Cinema Lenses are the culmination of
more than 70 years of lens technology
expertise and knowhow.
The Canon Hollywood Professional
Technology & Support Center is located in
the heart of Hollywood.
Cinema EOS System
Expanding into Emerging Markets
10
Image Square stores share a unifi ed design
that enhances Canon’s brand image.
A bustling street in rapidly developing
Ahmedabad, India’s seventh largest city.
11
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 off er
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,
we strive to help people experience and enjoy the benefi ts of enhanced
communication through Canon’s high-quality imaging capabilities.
Customers get a hands-on look at the
latest Canon products, including digital
cameras and inkjet and laser printers.
12
DNA diagnosis could soon make possible customized medical treatment.
What if you could take precautions to avoid future illnesses? What if side eff ects
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 amplifi cation, 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
eff ectiveness and side eff ects 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 fi eld, Canon aims to
advance this technology, making genetic testing more accessible to all.
13
Targeting practical application in the near
future, Canon U.S. Life Sciences conducts
verifi cation experiments on a daily basis.
DNA and reagents are put into a cartridge
and heated, enabling the amplifi cation of
the DNA for testing.
CMOS image sensors, featured in EOS
cameras, are used to capture DNA.
DNA Diagnostic Device
14
Magazines and pamphlets printed by an
imagePRESS C7000.
Adjacent to Toyota Motor Corporation
headquarters, Toyota Loops has a barrier-
free interior design.
Commercial Printing Solutions
15
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: confi dential 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 off set printing for beautiful results.
Today, they can use an in-house commercial digital press, which off ers 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 off set 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 simplifi es such pre-output processes as the
editing and processing of documents from diff erent departments, which may
come in various formats. From the fi rst sheet to the last, users can realize high-
quality printing with just the press of a few buttons, and without paper waste.
This also benefi ts the in-house printing of payroll stubs—a challenge
because each stub contains unique information.
Toyota Loops chose Canon for other reasons as well. When Toyota Loops
was fi rst established, Canon reviewed the placement of printers and the
optimal workfl ow 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-effi ciency printing environment that, unlike off set
printing, is effl uent free.
In the growing fi eld of commercial printing, Canon considers the customers’
point of view to propose products and solutions that support real needs.
Canon imagePRESS systems operate at full
capacity, handling a variety of printing work.
16
A multimedia projector is installed directly
above each table, adding color to
communication during dining.
In addition to menu items, diners can select
from a variety of scenes and patterns to
project on the table to control the ambience.
A parade of enticing dishes at the touch of a fi nger.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
multimedia projector, which displays photos of the dishes onto the
plates. Diners order the dishes they want with the touch of a fi nger
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 refl ects 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-defi nition 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.
Imaging Solutions
17
The innovative idea of using multimedia
projectors to display images on the tables
has proven a hit among customers.
18
After training, young people can go on to
receive offi cial fi rst-aid certifi cation.
© SRC, Andri Pol
A meeting with the British Red Cross on
plans to develop the skills of volunteers.
Canon supports the Study Café project,
which has ten locations in eight major
cities throughout Denmark.
© Danish Red Cross
Social Support Activities
19
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 fi nd 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, off ering both
fi nancial 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 benefi ts of continuing studies. The Swiss Red Cross supports fi rst-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.
20
Vietnamese trainees recognized for their
leadership potential participate in a
training program.
Canon is cultivating global employees who respect different cultures and values.
The eff ects 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
company’s founding, Canon must continue responding to the progress of
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 fulfi lling 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 diff erent 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 diff ering 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.
21
Training in the metal stamping of parts,
which is vital to manufacturing at Canon.
Managers from Canon Group companies
worldwide participate in training to
enhance their management skills.
Cultivating Global Personnel
Accelerating our transformation into a truly excellent global company.
22
In 2011, Canon embarked on Phase IV of the Excellent Global Corporation Plan. Through Phases I, II and III, we
strengthened our fi nancial 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.
Achieving the overwhelming No.1 position in all core businesses and expanding related and peripheral businesses
Developing new business through globalized diversifi cation and establishing the Three Regional Headquarters management system
Establishing a world-leading globally optimized production system
At Canon, we believe sound growth is
predicated on strengthening our primary
businesses. With innovative and attractive
industry-leading products, and an
emphasis on highly profi table solutions
and services, we aim to achieve the
overwhelming No. 1 position in each of
our primary businesses. At the same time,
we continue to grow secondary businesses
in related areas, such as network cameras
and the retail photo segment.
Canon has intensifi ed eff orts to strengthen
two new business domains: medical
imaging and intelligent robots for automated
production. To date, we had made Japan
the center for innovation, promoting
business development and diversifi cation.
Now, however, we are looking to M&A
and other methods to achieve innovation
in the U.S. and Europe as well, creating a
global R&D framework based on our Three
Regional Headquarters management system.
Canon optimizes productivity by diversifying
production facilities worldwide. With the
aim of achieving rational production in
terms of product quality and cost, we
comprehensively assess such factors as
distribution, parts procurement, labor, and
risk. Production is further enhanced through
the in-house production of tools, materials
and technologies, including automated
production systems.
Digital SLR camera and multifunction inkjet printer
Océ N.V. (Netherlands)
Nagasaki Canon
Excellent Global Corporation Plan Phase IV
23
Comprehensively reinforcing global sales capabilities
Building the foundations of an environmentally advanced corporation
Imparting a corporate culture, and
cultivating human resources befi tting
a truly excellent global company
As developing and resource-rich economies
in Asia, South America and Africa join the
ranks of the world’s growth centers, Canon
continuously assesses trends and aligns
our global sales structure accordingly. In
Europe and the U.S., for instance, we are
strengthening our services and solutions
sales force and deepening our partnership
with Océ N.V. In Asia, we focus on the
Chinese market while expanding sales in
ASEAN countries.
As an environmentally progressive company,
Canon pursues environmental conservation
hand in hand with business growth. We
employ technologies that support energy
savings and resource conservation through
every stage of the product lifecycle—from
initial design and production to eventual
recycling. In all of our corporate activities,
Canon undertakes eff orts to reduce burden
on the environment.
The enterprising spirit at the heart of Canon
has enabled us to continuously transform
the company over many decades. This is
refl ected in Canon’s guiding principles—the
San-ji (Three Selfs) Spirit (refer to page 25)—
which have been passed down since the
company’s founding. Today, Canon actively
works to maintain a corporate culture that
values transformation. At the same time,
our international training programs help to
develop personnel befi tting a truly excellent
global company.
Canon Image Square (India)
imageRUNNER ADVANCE
Leadership training
24
A modest beginning in a small room Striving for the world’s best cameraIn 1933, a small laboratory dedicated to making high-quality
cameras was set up in a simple apartment room in the
Roppongi area of Tokyo. At the time, all high-quality cameras
were European with the majority coming from Germany.
It was in this small room that young people with a big dream
earnestly began their work on producing a high-quality
Japanese camera, marking the beginning of Canon.
Through hard work and with an enterprising spirit, they
eventually succeeded in building a prototype, which was
named Kwanon after the Buddhist goddess of mercy. The
following year, in 1935, Japan’s fi rst-ever 35mm focal-plane-
shutter camera, the Hansa Canon, was born, along with the
Canon brand.
In 1950, Canon’s fi rst president, Takeshi Mitarai, went to America
for the fi rst time to attend an international trade fair. Having
seen modern factories and a high standard of living fi rst hand,
upon his return, he built a fi reproof factory of steel-reinforced
concrete in the Shimomaruko area of Tokyo, which he saw as
essential for Canon to succeed in doing business with the world
at large. Mitarai also made clear his respect for humanity by
stressing the importance of the San-ji, or Three Selfs, spirit, the
guiding principle for Canon employees. In 1955, Canon made
its fi rst step into the global market with the opening of a U.S.
offi ce in New York City. In 1957, Canon set up its sole European
distributor, Canon Europa, in Geneva, Switzerland. By 1967
exports already topped 50% of the company’s total sales.
Canonet Electric Eye (EE) camera Canola 130, the world’s fi rst 10-key
electronic calculator
NP-1100, Japan’s fi rst plain-paper copying
machine
Hansa Canon 35mm focal-plane-shutter
camera
Precision Optical Instruments Laboratory established
Precision Optical Industry, Co., Ltd. founded
New York branch offi ce opened
Canola 130 calculator introduced
Kwanon camera prototype developed
Japan’s fi rst indirect X-ray camera introduced
Sole European distributor, Canon Europa, established
Hansa Canon camera introduced
Company name changed to Canon Camera Co., Inc.
Canonet camera introduced
Behind Canon’s 70-plus-year history and development as a
business lies its corporate DNA: a respect for humanity, an
emphasis on technology, and an enterprising spirit that the
company has consistently passed on since its foundation. The
enterprising spirit on which Canon was started as a venture
company and the relentless drive to distinguish itself through
technology permeate the company, and have continued to
provide society with new advances. These motivating factors
are in turn supported by a respect for humanity, which
encompasses meritocracy and an emphasis on good health.
Canon is committed to passing its corporate DNA on to
future generations to ensure the company grows for another
100, or even 200, years.
Canon’s Corporate DNA Respect forHumanity
Canon Corporate DNA
Emphasis onTechnology
EnterprisingSpirit
The history of Canon started with the enterprising spirit to make the world’s best camera.
Canon up to Now
The San-ji (Three Selfs) Spirit
25
The challenge of diversifi cation Averting disaster with the Premier Company PlanSoon after its founding, Canon was hard at work in 1941 on
diversifying itself with the introduction of Japan’s fi rst indirect
X-ray camera and other products. In the 1960s, the company
took further steps toward diversifi cation by adding electrical,
physical and chemical technologies to its optical and precision
technologies. In 1964, Canon entered the offi ce equipment
market with the debut of the world’s fi rst 10-key electronic
calculator. In 1967, the management slogan “cameras in the
right hand, business machines in the left” was unveiled and in
1969 the company changed its name from Canon Camera Co.,
Inc. to Canon Inc. Canon took on the challenge of developing
Japan’s fi rst plain-paper copying machine, which it introduced
in 1970, and realized further diversifi cation from one challenging
fi eld to the next.
By 1970, Canon grew to 44.8 billion yen in sales and more than
5,000 employees. But hit by dollar and oil shocks, followed by
problems with a defective electronic calculator display
component in 1974, the company fell on hard times. In the fi rst
half of 1975, it failed to pay a dividend for the fi rst time since
becoming a public company. In 1976, Canon unveiled its Premier
Company Plan, an ambitious strategy to transform Canon into
an “excellent global company” through such means as
introducing a vertical business group constitution and
establishing a horizontal development, production and sales
system. The plan proposed high ideals and pooled the
strength of its employees, enabling the company to
promptly recover.
AE-1, the world’s fi rst SLR camera with a
built-in microcomputer
LBP-10, the world’s fi rst laser printer with
a semiconductor laser
PC-10/20, the world’s fi rst personal copying
machine with an all-in-one cartridge system
BJ-80, the world’s fi rst inkjet printer using
Bubble Jet technology
“Cameras in the right hand, business machines in the left.”
NP-1100 copying machine introduced
AE-1 SLR camera introduced
BJ-80 inkjet printer introduced
PPC-1 mask aligner introduced
LBP-10 laser printer introduced
CLC-1 digital full-color copying machine introduced
Company name changed to Canon Inc.
Premier Company Plan launched
PC-10/20 personal copying machine introduced
EOS650 AF SLR camera introduced
The Three Selfs, the foundation of the company’s guiding
principles that have been passed down since Canon was
founded, are self-motivation, self-management and self-
awareness. For Canon, which strives to be a truly excellent
global corporation while maintaining the legacy of its
corporate DNA, the Three Selfs continue to serve as the
company’s most important guiding principles.
Take the initiative and be
proactive in all things.
Conduct oneself with
responsibility and accountability.
Understand one’s situation and
role in all situations.
Self-motivation
Self-management
Self-awareness
26
To strengthen its fi nancial base, Canon transformed its mindset
to total optimization and a focus on profi t. The company
instituted various business innovations, including selection
and consolidation of business areas, and reform activities in
such areas as production and development.
Aiming to become No. 1 in all major business areas, Canon
focused on strengthening product competitiveness along
with the changing times, stepping up eff orts to digitize its
products. The company also conducted structural reforms
across all Canon Group companies around the world.
Canon moved ahead with such growth strategies as
enhancing existing businesses and expanding into new areas.
Through the thorough implementation of SCM and IT
reforms, the company targeted the realization of “real-time
management” to respond quickly to changes.
Phase I 1996-2000 Phase II 2001-2005 Phase III 2006-2010
Corporate philosophy of kyosei introduced with the company’s second inauguration Excellent Global Corporation
Plan launchediR series of network multifunction devices introduced
imagePRESS C7000VP digital production printing system introduced
EOS-1Ds digital SLR camera introduced
imageRUNNER ADVANCE network multifunction device introduced
Canon Inc. ADRs listed on the New York Stock Exchange
Toner cartridge collection and recycling program launched
PowerShot S100 DIGITAL ELPH (DIGITAL IXUS) compact digital camera introduced
imagePROGRAF iPF9000 printer introduced
Excellent Global Corporation Plan Phase IV launched
iR3250 network multifunction device EOS-1Ds high-end professional digital
SLR camera
imagePROGRAF iPF9000 large-format
inkjet printer
PowerShot S100 DIGITAL ELPH (DIGITAL
IXUS in other areas) compact digital camera
The Excellent Global Corporation Plan
The Excellent Global Corporation PlanCanon’s second inaugurationCanon continued to grow under the Premier Company Plan.
With the dawn of the personal computer age, Canon introduced
to the world a series of products never before seen, among
them a personal copying machine based on an all-in-one
cartridge system, a laser printer with a semiconductor laser,
and a Bubble Jet inkjet printer. Canon also began promoting
global production in earnest on the road to becoming an
excellent global company. Then, in 1988, the 51st anniversary
of the company’s founding, Canon announced its second
inauguration and unveiled its corporate philosophy of kyosei,
an unfamiliar term at the time. It also began promoting
such progressive and environmentally sound activities as
toner cartridge recycling in addition to globalizing its
development sites.
Canon had developed unprecedented technologies and
carefully nurtured them to create business opportunities and
products unrivaled by any other company. But by the mid-1990s,
the business division system that had been in place since the
1970s was showing signs of wear. Canon also carried debt of
more than 840 billion yen, meaning the company needed to
improve its fi nancial constitution if it was to carry out long-term
R&D projects and launch new businesses. Fujio Mitarai became
Canon’s 6th company president in 1995, and in 1996 the
Excellent Global Corporation Plan was launched. Transforming
the corporate mindset from partial to total optimization and
from a focus on sales to a focus on profi ts, the new plan was
the start of the innovations that characterize today’s Canon.
27
ActivitiesFocused on Tomorrow
Seeing beyond the possibilities of
today, Canon pursues innovations
that enrich lifestyles and satisfy
our social responsibilities.
EOS C300 digital cinema camera introduced
EOS C300 digital cinema camera
Research and Development / Design
Procurement / Production / Distribution
Sales and Marketing / Post-Purchase Services
Environment / Quality
Social Support Activities
28
For a future of greater convenience and comfort,we are developing advanced technologies toward the creation of never-before-realized value.
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.
The research and development of next-generation printing materials
Terahertz imaging technology research
Research and Development / Design
29
3D CAD Design
Kyoto University/Canon Joint Research Project
Super Machine Vision
High-Accuracy Color Management System
Display DevelopmentUltra-Large-Scale, Ultra-High-Sensitivity CMOS Sensor
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 diff erent parts and
mass-production methods while concurrently
conducting product development.
In collaboration with Kyoto University, we are
pursuing practical applications for new medical
imaging technologies. At the Clinical Research
Center for Medical Equipment Development,
which was established within Kyoto University,
clinical research is focusing on such themes
as AO-SLO for the early detection of retinal
disease, and photoacoustic mammography
enabling the early detection of breast cancer.
Kyuanos, Canon’s high-accuracy color
management system, precisely matches colors
among input and output devices, which
can off er varying ranges of color expression.
Not only does Kyuanos faithfully reproduce
colors, it also automatically compensates for
variances in color appearance due to paper
type, lighting conditions and other factors.
As a world leader in the fi eld of imaging,
Canon is actively developing next-generation
high-image-quality displays. We are currently
conducting R&D in such areas as organic
light-emitting diode displays and ultra-high-
defi nition displays for professionals that
surpass Full HD resolution.
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.
Based on the image sensors used in our
digital cameras and other products, Canon
produced an ultra-high-sensitivity CMOS
sensor that is among the largest in the world.
Installing the sensor in the Schmidt Telescope
at the University of Tokyo’s Kiso Observatory,
Institute of Astronomy, enabled the video
recording of faint meteors with an equivalent
apparent magnitude of 10.
An AO-SLO (adaptive optics scanning laser ophthalmoscope)
Ultra-high-defi nition display
Development of robotic vision for industrial applications
30
Streamlining our supply chain while raising quality.Pursuing waste-free production through innovation.
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.
A man-machine cell (Nagasaki Canon)
Cell production (Canon Suzhou)
Procurement / Production / Distribution
31
Man-Machine Cell
In-House Production
Automated Production Systems
Green Procurement
Globally Optimized Production
Next-Generation Logistics System
Canon replaced its conveyer-belt assembly
lines with the cell production system, which
employs teams of skilled workers that
manufacture each product in its entirety. This
approach has evolved, and now makes use
of advanced, high-production-capacity man-
machine cells with workers performing tasks
requiring a human touch and robots handling
work best suited to machines.
Aiming to deliver innovative products while
minimizing costs, Canon works to produce
parts and equipment in-house. In addition
to key components and devices, the Canon
Group internally manufactures functional parts,
circuit boards and other major components,
and even the molds and manufacturing
equipment used to create parts.
Canon is currently building automated
production lines capable of running nonstop
every day of the year. Development is
moving forward thanks to a concerted
eff ort by our design, production technology,
and manufacturing technology divisions.
Improvements in such areas as the quality
control of parts are contributing to enhanced
production effi ciency.
Green procurement prioritizes products with
minimal environmental burden. To ensure
compliance with evolving regulations, we
regularly update our green procurement
standards, which were fi rst 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.
To realize globally optimized production, Canon
comprehensively considers such factors as
costs, distribution, procurement, labor and
environmental impact when determining
the locations for production bases. Advanced
automated production systems and in-
house production enable us to improve price
competitiveness by manufacturing products in
the same region in which they are consumed.
After upgrading our distribution and trading
systems, Canon launched in 2011 a next-
generation logistics system. We are moving
closer toward realizing a comprehensive IT
system enabling the entire supply chain to be
centrally managed by integrating order-based
production and shipping information.
Canon Hi-Tech Thailand
Image sensor production (Canon Precision)
Automated production of toner cartridges
On-site verifi cation at a green procurement facility
Canon Virginia
An inkjet printer shipment (Canon Vietnam)
32
In business and in our daily lives,Canon delivers the latest life-enriching products and solutions to customers around the world.
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 off ers 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.
A Canon network multifunction device in use at an elementary school (Chicago, U.S.A.)
Sales and Marketing / Post-Purchase Services
33
Marketing with Océ
Boosting Sales in Emerging Markets
Global Sales Structure
Canon Managed Document Services
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.
To better serve emerging markets in Asia,
Russia, the Middle East and Africa, we are
strengthening our sales capabilities in each
region. These eff orts include enhancing local
sales networks and bolstering service training,
expanding awareness of the Canon brand
and its trustworthiness, and introducing new
products designed to satisfy local needs.
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
delivered as needed anywhere in the world.
Our sales network also plays an important
role in gathering input from customers, which
is fed back into future development and
production processes.
In response to the needs of our customers,
Canon optimizes document input-output
environments for businesses on a global
scale, off ering a comprehensive range of
maintenance and operational services.
Through optimal device layout and
operational improvements, along with
the high standard of quality service Canon
provides worldwide, customers can realize
signifi cant cost savings and productivity gains.
Canon product sales training at Océ
A Canon India showroom in Mumbai
Canon Europe
Canon China
Canon Inc.
Canon Australia
Canon U.S.A.
Canon Marketing Japan
Europe
Asia Oceania
Americas
Japan
34
Canon Europe off ers products, services and solutions
tailored to the needs of local customers. In recent
years, we have expanded our sales network into
emerging markets, actively conducting marketing
activities in such countries and regions as Turkey,
Russia, the Middle East and Africa.
Sodexo (France)
Sales Network
uniFLOW
Boosting Sales in the Russian Market
With the print management software
uniFLOW, developed at Canon
Europe, we have strengthened our
ability to develop customer-tailored
solutions. Contributing to the effi cient
operation of printing systems and
reduced total costs, the software has
earned high marks from users.
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 fi eld through nationwide
marketing activities centered on our
color output devices.
Fraport (Germany)
The Canon booth at On Demand Russia
Europe
35
Canon U.S.A. continues to grow by tapping into the
potential of the U.S. market. Flexibly adapting to
evolving markets and customer needs, the company
constantly pursues new possibilities. With a renewed
focus on providing added value to customers, we
strive for growth in the market, attractive not only for
its large size, but also for the opportunities it off ers to
create new business.
Canon Information
Technology Services (U.S.A.)
Canon Business Solutions
Strengthening Sales in Latin America
With more than 60 offi ces across the
United States, Canon Business Solutions
provides service and support for
business and production systems. By
integrating our marketing operations
with those of Océ, we aim to deliver
solutions to meet the needs of an even
greater number of customers.
Canon Latin America has launched a
full-fl edged eff ort 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.
Network MFD service training
A demonstration for dealers (Bolivia)
Americas
36
In Asia and Oceania, which includes the rapidly
growing markets of China and India, Canon China
and Canon Australia play central roles in our
marketing activities. Canon China, which oversees
operations in Asia, takes into consideration each
country and region’s unique customer needs to
provide ideally suited products. The company
aims to create an emotional bond with customers
through its marketing activities. Canon Australia’s
sales and marketing activities focus on new
distribution channels linking Canon products and
services to customers throughout Oceania.
A Canon China showroom
in Beijing
Marketing in China
World of EOS
Canon China’s marketing and service
activities are tailored to the Chinese
market. Through the promotion of
Chinese-language product brand
names and large-scale product launch
events, the company is enhancing
awareness of, and affi nity for, the
Canon brand among consumers.
Canon Australia adopted an
interactive approach in its sales
promotion campaign for digital
SLR cameras, which included the
launch of a Web community for
photographers using Canon cameras
and recognizing outstanding
photographic works.
A product launch on Nanjing Road, Shanghai
An EOS camera photo exhibit
Asia & Oceania
37
The Canon Marketing Japan Group oversees
marketing activities and provides solutions for the
Japanese market, capitalizing on the consolidated
strength of the Group’s 26 companies. The “Live
Offi ce,” which makes use of the Group’s own offi ces
as showrooms, off ers document solutions centered
on digital multifunction devices. The company also
delivers new solutions, including a data center-
based cloud service.
For lifestyles, for business, and for society, Canon
Marketing Japan Group is committed to delivering
value across a wide range of fi elds that surpasses
customer expectations.
A “Live Offi ce” at Canon
System & Support’s
Kanagawa branch
New Data Center
Customer Support
Canon IT Solutions is building a data
center featuring some of the most
sophisticated technology and
security in Japan to protect valuable
customer information. The facility is
scheduled to begin operation in the
autumn of 2012.
Canon Customer Support, which
enables the prompt and effi cient
handling of customer inquiries, was
the fi rst customer contact center in
Japan to receive the international
COPC-2000 CSP management quality
standard for four locations at once.
NishiTokyo Data Center (artist’s conception)
Canon Customer Support Center
Japan
38
For the future of people and the planet, we strive to reduce environmental burden and off er more enriched lifestyles.
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.
A PIXMA MG6200-series multifunction inkjet printer featuring advanced environmental performance
Quality inspection of toner cartridges (Canon
Virginia)
Environment / Quality
39
Action for Green
Quality Verifi cation Testing
Improving Products Based on Customer Feedback
Environmentally Conscious Offi ce Design
Ink Cartridge Recycling
Bio-Based Plastic
Based on our Action for Green environmental
vision, Canon works to create a society in
which enriched lifestyles and the Earth’s
environment can co-exist. Action for Green
covers all phases of the product lifecycle—
produce, use and recycle—and we carefully
monitor the progress of all related activities.
Canon uses strict standards when conducting
quality testing to ensure products are safe and
reliable. Measurement testing for such aspects as
noise, fl ame resistance and electromagnetic
radiation is conducted at state-of-the-art
facilities that have been certifi ed for ISO/IEC and
UL testing. As a result, we are able to increase
development speed and product quality.
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,
off er reduced X-ray exposure to patients, and
deliver high-image-quality results.
Canon sales offi ces 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 effi ciency throughout the
entire structure. This system automatically
controls the amount of sunlight that enters
the building to maintain a comfortable
temperature and optimal lighting while
minimizing energy use.
In 1996, Canon initiated a service in Japan
to collect used ink cartridges, and has
expanded this service to include Asia, Oceania,
North America and Europe. Furthermore,
for more than 20 years, Canon has been
collecting and recycling toner cartridges for
laser printers and other devices worldwide.
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 fl ame retardance, which is used in the
exterior parts of Canon’s network multifunction
devices and digital production printing systems.
Anechoic chamber (Tamagawa General Measurement
Testing Laboratory)
R&D for wireless digital radiography equipment
Canon Spain headquarters
Collection of used ink cartridges (Singapore)
One of the industry’s largest exterior parts employing bio-
based plastic
40
Striving to be a globally admired and respected company through CSR activities that help build a better society.
To fulfi ll 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
meet the needs of each region.
Canon Green Library for Kids provides textbooks and children’s books. (Vietnam)
Canon PhotoMarathon (Singapore)
Social Support Activities
41
Green Volunteer Action
Envirothon
WWF Conservation Partner
The Tsuzuri Project
Canon Wind
Canon Group CSR Activity Policy
Green Volunteer Action is a program for
Chinese university students organized by
Canon China in cooperation with the China
Wildlife Conservation Association. Participants
learn animal and plant photography and
their photographs are used in environmental
education materials. In 2011, student
participants from ten universities across
China visited the Dinghushan National Nature
Reserve in Guangdong.
Since 1997, Canon U.S.A. has supported
Envirothon, one of the largest environmental
education competitions for high school
students in North America, which attracts
more than 500,000 participants every year.
In 2011, some 270 U.S. and Canadian winners
from the preliminary rounds participated in
the fi nal round of the competition. Through
fi eldwork and presentations, Envirothon helps
students deepen their understanding of
nature and the environment.
In 1998, Canon Europe became the fi rst
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.
The Tsuzuri Project is a social-contribution
initiative jointly organized by Canon and
the Kyoto Culture Association (NPO). Canon
digital technology and traditional Japanese
craftsmanship come together to create high-
resolution full-scale facsimiles of Japanese
cultural assets, many of which are no longer
in Japan. As the works are donated to
museums and the original owners, the project
contributes to the passing on of important
Japanese culture.
Canon Wind Inc., a special subsidiary of Oita
Canon Inc., was established in cooperation
with the Gyoun Welfare Association to expand
employment opportunities for people with
intellectual disabilities. Many of Canon Wind’s
employees manufacture accessories for the
digital cameras produced by Oita Canon.
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.
Nature photography fi eld training
An outdoor class on aquatic ecosystems
Mondweg Elementary School in Vienna, Austria
A section of Seven Sages in a Bamboo Grove, Kenninji Temple
Canon Wind staff at work
CANON INC.www.canon.com
CANON U.S.A., INC.www.usa.canon.com
CANON LATIN AMERICA, INC.www.canonlatinamerica.com
CANON CANADA INC.www.canon.ca
CANON EUROPE LTD.www.canon-europe.com
CANON EUROPA N.V.www.canon-europe.com
CANON (UK) LTD.www.canon.co.uk
CANON FRANCE S.A.S.www.canon.fr
CANON DEUTSCHLAND GmbHwww.canon.de
CANON (CHINA) CO., LTD.www.canon.com.cn
CANON HONGKONG CO., LTD.www.canon.com.hk
CANON SINGAPORE PTE. LTD.www.canon.com.sg
CANON AUSTRALIA PTY. LTD.www.canon.com.au
©Canon Inc. 2012 PUB.AEP036 0612
