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CANON ANNUAL REPORT 2006
Fiscal Year Ended December 31, 2006

Table of contents

  • Page 1
    CANON ANNUAL REPORT 2006 Fiscal Year Ended December 31, 2006

  • Page 2
    CORPORATE PROFILE Canon develops, manufactures and sells a wide lineup of copying machines, printers, cameras, optical products, industrial equipment and other products to meet a diverse range of customer needs. The Company has developed its business activities on a global scale. Canon is a ...

  • Page 3
    ...U.S. dollar amounts are translated from yen at the rate of JPY119=U.S.$1, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 29, 2006, solely for the convenience of the reader. 3. Canon has made a three-for-two stock split on July 1, 2006. All per share information has...

  • Page 4
    TO OUR STOCKHOLDERS Continuing Our Upward Journey with Innovation and Sound Growth 2

  • Page 5
    ...of its Excellent Global Corporation Plan aimed at attaining sound growth. The Company achieved record earnings and posted its seventh consecutive year of sales and profit growth, as well as increased sales across all major product categories and all operating regions. The global economy continued on...

  • Page 6
    ...CORPORATION PLAN-PHASE III Steady Advances for Sound Growth Under Phase III, Canon aims to enter the ranks of the global top 100 companies by 2010 in terms of key performance indicators. The Company has set targets for 2010 of ¥5.5 trillion in consolidated net sales and a net income to sales ratio...

  • Page 7
    ...Ranking: 35 (4th among all Japanese companies) FORTUNE Global 500 is a registered trademark of FORTUNE Magazine, a division of Time Inc. in the United States of America. economic development spreads to more nations around the world led by the BRIC economies (Brazil, Russia, India, and China), Canon...

  • Page 8
    EXCELLENT GLOBAL CORPORATION PLAN-PHASE III 1 Achieve the overwhelming No. 1 position in existing core businesses and develop three new display businesses Canon has achieved global No. 1 market positions for such core products as copying machines, LBPs and digital cameras, and will strive not ...

  • Page 9
    2 Establish new production systems to maintain international competitiveness a global scale and to boost production. In Japan, the Company is promoting the automated production of such products as toner and ink cartridges, for which there is a sharp increase in demand. Canon will take active steps ...

  • Page 10
    ... Regional Headquarters system. Canon U.S.A., Inc., Canon Europe Ltd., and Canon Europa N.V. have made steady progress in implementing structural reforms and new businesses. These companies will be encouraged to apply their human and capital resources in order to expand their areas of business and...

  • Page 11
    ..., the Company opened the Canon Global Management Institute in Tokyo in May 2006. It will function as a development center for future leaders and executives of the Group worldwide. Canon aims to become a company that produces human resources that play supporting roles in the world of business and...

  • Page 12
    ... & CEO, Canon Europe Ltd. Toshio Homma Group Executive, L Printer Business Promotion Headquarters Shunji Onda Deputy Group Executive, Finance & Accounting Headquarters Shigeru Imaiida Senior Managing Director, Canon ANELVA Corporation Corporate Auditors Managing Directors Akiyoshi Moroe Group...

  • Page 13
    ..., IT systems, and promotion of corporate ethics. Internal controls over financial reporting as of December 31, 2006, have been assessed as effective by the management and the independent registered public accounting firm. (Please refer to p.89 and p.91) Other Corporate Governance Committees Canon...

  • Page 14
    ... with disclosure regulations prescribed by stock exchanges. With 46.9% of Canon's shares owned by non-Japanese investors as of December 31, 2006, the Group goes to great lengths to promote close relations with non-Japanese institutional investors, maintaining IR bases in Europe and the United States...

  • Page 15
    ... by resolution of a general meeting of shareholders. The Company currently has five corporate auditors, although the minimum number of corporate auditors required pursuant to the Corporation Law is three. 4. Shareholder Approval of Equity Compensation Plans The NYSE Corporate Governance Rules...

  • Page 16

  • Page 17
    ... RESEARCH & DEVELOPMENT ...16 PRODUCTION ...18 SALES & MARKETING ...20 CORPORATE SOCIAL RESPONSIBILITY ...22 Photo: To celebrate the 100th anniversary of the Beijing Zoo, Canon cosponsored a photography and essay competition entitled "The Beijing Zoo and me," focusing on the themes of protecting...

  • Page 18
    ...to injections. Bolstering Product Competitiveness Canon strives to be No. 1 in the world in each of its core business areas by boosting product competitiveness. Toward this end, the Company cultivates the New HD CMOS sensor incorporated in Canon HD camcorders produces full high-definition video 16

  • Page 19
    ... CMOS sensor for video camcorders that enables the high-speed reading of images in full HD (1,920 x 1,080 pixels). Canon believes that shared-platform technologies are vital for accelerating and reinforcing product development. The Company has established its unique color management technology that...

  • Page 20
    ... the integration of interchangeable SLR camera lens production with camera manufacturing operations. At the same time, the Company is stepping up production capacity in order to meet growing demand. Oita Canon Materials Inc. completed construction of a new toner and toner cartridge facility in 2006...

  • Page 21
    ... its competitive position in global markets, while responding to increasing demand for Canon products. To bolster this effort, the Company will establish automated production systems through "three-in-one" foundation integrating development, production technology and manufacturing knowhow. Canon is...

  • Page 22
    ... order to expand sales and secure profits. Canon U.S.A. plans to make its full-fledged entry into such new markets as POD, and bolster its large-format printer business. Furthermore, by reinforcing the supply chain to ensure the timely and accurate delivery of products to customers, the Company aims...

  • Page 23
    ... in Asian markets by improving education among its staff in sales, services and call center operations. Canon is also promoting the expansion of its solutions business and high-valueadded products for professionals, such as largeformat printers and digital SLR cameras. Moreover, the Company is...

  • Page 24
    ... at every stage, from procurement and production to use and recycling. The Company promotes energy and resource conservation as well as the elimination of hazardous substances in all of its business operations. Factor 2 Canon's mid-to long-term environment-management plan, known as Vision 2010...

  • Page 25
    ...energy-saving technologies Recycling Stage Canon is active in recycling and remanufacturing its products. For instance, the Company pioneered the recycling of toner cartridges from copying machines and Ceramic heater Toner Pressure roller Fixing film enables toner fixing with localized warming to...

  • Page 26
    ... the application of cutting-edge technology essential to managing park wildlife and ecosystems. Canon Envirothon The Canon Envirothon is North America's largest high school environmental education competition. More than 500,000 teenagers are involved in a year-long learning process that combines in...

  • Page 27
    ... excitement of sports and international exchange through various programs. Training and Nurturing Employees Striving to achieve the objectives of its Excellent Global Corporation Plan, Canon has redoubled its efforts in educating personnel and offering specialized training at all levels, including...

  • Page 28

  • Page 29
    ... 10.2% • Components, etc. Share of Consolidated Sales Photo: Canon solutions using MEAP technology made it possible for the Omni Hotel Business Center in Atlanta to enhance their operational efficiency and provide an around-the-clock self copying service by credit card payment for customer...

  • Page 30
    ... Products Operations The market for office imaging products is seeing an overall shift toward color models. While color models have largely become the norm in offices in Japan, there remains ample room for greater expansion in Europe and the United States. In response, Canon plans to introduce high...

  • Page 31
    ... output of color documents in office environments, Canon continuously seeks to enhance the speed and consistency of its MFDs for greater productivity. One such example is Canon's Twin Belt Fixing (TBF) technology. In electrophotographic printing, toner is transferred to paper by heat and fused to...

  • Page 32
    ...Products Operations Canon maintains an unwavering commitment to producing photo-quality inkjet printers. FINE (Full-photolithography Inkjet Nozzle Engineering) is Canon's key inkjet printing technology for precise ejection of ultra-fine ink droplets up to one-picoliter*, resulting in images of high...

  • Page 33
    ... 10%. Through color on-demand fixing, the color LBP5000 realizes zero warm-up time and was well received in the Asian market. Canon also posted sales increases for inkjet printers. Among the Company's leading new products were the PIXMA MP600, a high-speed MFP featuring outstanding ease of use, and...

  • Page 34
    ...digital cameras, we will expand our push into the BRIC and other emerging economies to complement existing operations in Japan, Western Europe and the United States. In addition, Canon intends to boost sales and profits in such new business areas as compact photo printers, LCD projectors and network...

  • Page 35
    ... of compact digital photo printers with the release of the SELPHY ES1, featuring an integrated ink and paper casPowerShot SD800 IS DIGITAL ELPH sette. With the built-in DIGIC imaging (DIGITAL IXUS 850 IS in some areas) processor for simple operation and high-quality photo prints, this model has...

  • Page 36
    ... amount of time and resources. We are working to create base machines that only require new key components to be developed in order to meet the latest market needs. Canon will work closely with customers to provide highly advanced LCD-panel and semiconductor-production equipment that matches...

  • Page 37
    ... of CF-60DSi digital mydriatic retinal cameras and TX-F non-contact tonometers MPA-8800 offset the decrease. As a result, overall sales of ophthalmic equipment remained largely unchanged from the previous year. Spurred by strong growth of CXDI-50G HDTV lenses for studios and live broadcasts, as well...

  • Page 38
    .... Canon Marketing (Taiwan) Co., Ltd. Canon India Pte. Ltd. Canon Semiconductor Engineering Korea Inc. Canon Semiconductor Equipment Taiwan Inc. RESEARCH & DEVELOPMENT Canon Development Americas, Inc. Canon Technology Europe Ltd. Canon Research Centre France S.A.S. Canon Information Systems Research...

  • Page 39
    ...21) Disclosures about the Fair Value of Financial Instruments and Concentrations of Credit Risk ...88 (22) Supplemental Cash Flow Information (23) Subsequent Event MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING ...89 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ...90 37

  • Page 40
    ...business machines product group has three sub-groups: office imaging products, computer peripherals and business information products. Summary of Operations In 2006, the first year of a new five-year management plan- Phase III of Canon's Excellent Global Corporation Plan-Canon achieved record highs...

  • Page 41
    ... times in order to achieve early recovery of related product expenses by strengthening supply-chain management. Canon's management seeks to meet its liquidity and capital requirements primarily with cash flow from operations. Management also seeks debt-free operations. For a manufacturing company...

  • Page 42
    ... Benefit Plans Canon has significant employee retirement and severance benefit obligations which are recognized based on actuarial valuations. Inherent in these valuations are key assumptions, including discount rates and expected return on plan assets. Management must consider current market...

  • Page 43
    ...fiscal 2006, Canon estimated a discount rate of 2.7% and an expected long-term rate of return on plan assets of 4.8%. In estimating the discount rate, Canon uses available information about rates of return on high-quality fixed-income governmental and corporate bonds currently available and expected...

  • Page 44
    ... printers, inkjet multifunction peripherals and image scanners. Business information products include micrographic equipment, personal computers and calculators. • The cameras product group includes single lens reflex ("SLR") cameras, compact cameras, digital cameras and digital video camcorders...

  • Page 45
    ... multifunction models-including the high-speed user-friendly PIXMA MP600 and overseas entry- Return on Sales (%) Sales by Product (Millions of yen) Business Machines Office imaging products Computer peripherals Business information products Sales by Region (Millions of yen) Japan Americas Europe...

  • Page 46
    ... of digital video camcorders, the launch of consumer-market HDV models equipped with Canon HD CMOS sensors contributed to expanded sales, filling out the company's digital camcorder lineup along with MiniDV and DVD models. Video camcorders accounted for the remaining 10% and 12% of camera sales in...

  • Page 47
    SEGMENT INFORMATION BY PRODUCT Millions of yen Business Machines Cameras Optical and Other Products Corporate and Eliminations Consolidated 2006: Net sales: Unaffiliated customers Intersegment Total Operating cost and expenses Operating profit Assets Depreciation and amortization Capital ...

  • Page 48
    ..., marketable securities, investments and corporate properties, are included in "Corporate and Eliminations." 3. Segment information by geographic area is determined by the location of the Company or its relevant subsidiary making the sale. The segments are defined under Japanese GAAP. In grouping of...

  • Page 49
    ...currency exchange contracts. The return on foreign operation sales is usually lower than that from domestic operations because foreign operations consist mainly of marketing activities. Return on foreign operation sales is calculated by dividing net income of foreign subsidiaries, after factoring in...

  • Page 50
    ... credit ratings from two rating agencies, Moody's Investors Services, Inc. ("Moody's") and Standard and Poor's Rating Services ("S&P"). In addition, Canon maintains a rating from Rating and Investment Information, Inc. ("R&I"), a rating agency in Japan, for access to the Japanese capital market...

  • Page 51
    ...for its requirements for the foreseeable future. Canon's capital requirements are primarily dependent on management's business plans regarding the levels and timing of capital expenditures and investments. The working capital ratio (ratio of current assets to current liabilities) for fiscal 2006 was...

  • Page 52
    ...the Excellent Global Corporation Plan, with an objective to realize "Sound Growth" toward "Joining the World's Top 100 Companies." Canon has established the following as key strategies: • Realize the overwhelming No.1 position worldwide in all current core businesses, • Expand operations through...

  • Page 53
    ... Development Headquarters, where platform technology R&D, such as system Large-Scale Integration (LSI) chips, network technology and visual information technology, is conducted • Device Technology Development Headquarters, where key device R&D, such as for semiconductor devices, is conducted Canon...

  • Page 54
    ...across a number of major financial institutions. Canon's international operations expose Canon to the risk of changes in foreign currency exchange rates. Canon uses foreign exchange contracts to manage certain foreign currency exchange exposures principally from the exchange of U.S. dollar and euro...

  • Page 55
    ... lower growth rate in major areas of Japan, the U.S., and Europe. Business competition in general, however, is expected to further intensify and the business conditions surrounding the Canon Group will likely remain difficult. Under these circumstances, the Canon Group has positioned 2007, the...

  • Page 56
    ... high-speed automation equipment; bringing the in-house production of more key parts, taking procurement innovation activities to an even higher level; and building an IT system that centralizes business information for everything from planning and development to production, sales, procurement...

  • Page 57
    ... through reforms of its production and procurement systems. Canon expects the market for compact digital cameras to expand in the intermediate term. However, profit margins for the overall industry are moving lower as prices fall and competition increases. Therefore, Canon seeks to continue cutting...

  • Page 58
    ... of property, plant and equipment Capital expenditure Long-term debt, excluding current installments Stockholders' equity Total assets Per share data: Income before cumulative effect of change in accounting principles: Basic Diluted Net income: Basic Diluted Cash dividends declared Stock price: High...

  • Page 59
    ... 56.97 38.38 Notes: 1. U.S. dollar amounts are translated from yen at the rate of U.S.$1 = ¥119, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 29, 2006. 2. Canon has made a three-for-two stock split on July 1, 2006. All per share information has been adjusted to...

  • Page 60
    ... (note 20) Investments (notes 4 and 11) Property, plant and equipment, net (notes 7 and 8) Other assets (notes 8, 9, 10, 13 and 14) Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term loans and current portion of long-term debt (note 11) Trade payables (note 12...

  • Page 61
    ...2006, 2005 and 2004 Thousands of U.S. dollars (note 2) 2006 Net sales Cost of sales (notes 10, 13 and 20) Gross profit Operating expenses: Selling, general and administrative expenses (notes 1, 10, 13 and 20) Research and development expenses Operating profit Other income (deductions): Interest and...

  • Page 62
    ... income (loss) Total stockholders' equity Common Stock Legal reserve Retained earnings Treasury stock Balance at December 31, 2003 Conversion of convertible debt and other Stock exchanged under exchange offering Capital transaction by consolidated subsidiaries and affiliated companies Cash...

  • Page 63
    ... by operating activities Cash flows from investing activities: Purchases of fixed assets Proceeds from sale of fixed assets Purchases of available-for-sale securities Purchases of held-to-maturity securities Proceeds from sale of available-for-sale securities Increase in time deposits Acquisitions...

  • Page 64
    ..."Company") and subsidiaries (collectively "Canon") is one of the world's leading manufacturers in such fields as office imaging products, computer peripherals, business information products, cameras, and optical related products. Office imaging products consist mainly of copying machines and digital...

  • Page 65
    ...Affiliated Companies Investments in affiliated companies over which Canon has the ability to exercise significant influence, but does not hold a controlling financial interest, are accounted for by the equity method. (k) Impairment of Long-Lived Assets Long-lived assets, such as property, plant and...

  • Page 66
    ... sale of consumer products, equipment, supplies, and related services under separate contractual arrangements. Canon recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title and risk of loss have been transferred to the customer, the sales price is fixed...

  • Page 67
    ...December 31 for the majority of its plans. See Note 13 for further discussion of the effect of adopting SFAS 158 on Canon's consolidated financial statements. In September 2006, the Securities and Exchange Commission ("SEC") staff published Staff Accounting Bulletin No. 108, "Considering the Effects...

  • Page 68
    ... The consolidated financial statements presented herein are expressed in Japanese yen and, solely for the convenience of the reader, have been translated into United States dollars at the rate of ¥119= U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market on December...

  • Page 69
    ...Gross Unrealized Holding Losses Fair Value 2006: Current: Available-for-sale: Government bonds Bank debt securities Held-to-maturity: Corporate debt securities Noncurrent: Available-for-sale: Government bonds Corporate debt securities Fund trusts Equity securities Held-to-maturity: Corporate debt...

  • Page 70
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED CANON INC. AND SUBSIDIARIES Thousands of U.S. dollars Cost Gross Unrealized Holding Gains Gross Unrealized Holding Losses Fair Value 2006: Current: Available-for-sale: Government bonds Bank debt securities Held-to-maturity: Corporate debt ...

  • Page 71
    ... value of those investments. Investments in affiliated companies accounted for by the equity method amounted to ¥40,143 million ($337,336 thousand) and ¥31,418 million at December 31, 2006 and 2005, respectively. Canon's share of the net earnings (losses) in affiliated companies accounted for by...

  • Page 72
    ...sheets. (8) Finance Receivables and Operating Leases Finance receivables represent financing leases which consist of sales-type leases and direct-financing leases resulting from the marketing of Canon's and complementary third-party products. These receivables typically have terms ranging from 1 to...

  • Page 73
    ... of developed technology, and are subject to a weighted average amortization period of approximately 9 years. In 2004, the Company acquired all of the outstanding common shares of a precision plastic mold manufacturer, in an exchange offering for 866,880 shares of the Company's common stock. The...

  • Page 74
    ...the year Recognition of acquired company's tax benefits Translation adjustments and other Balance at end of year During the year ended December 31, 2006, Canon recognized ¥1,038 million ($8,723 thousand) of deferred tax benefits relating to preexisting net operating tax losses of a ¥ 40,161 2,297...

  • Page 75
    ... $128,260 113,025 15,395 3,513 580 168 $260,941 Canon entered into an agreement whereby certain assets were deposited into an irrevocable trust to meet the debt service requirements of the: 2.95% Japanese yen notes; and 2.27% Japanese yen notes in the aggregate amount of ¥20,000 million ($168,068...

  • Page 76
    ... and severance plans. Benefits payable under the plans are based on employee earnings and years of service. The contributory plans in Japan mainly represented the Employees' Pension Fund plans ("EPFs"), composed of the substitutional portions based on the pay-related part of the old age pension...

  • Page 77
    ... Service cost Interest cost Plan participants' contributions Amendments Actuarial gain Benefits paid Acquisition Foreign currency exchange rate changes Other Benefit obligations at end of year Change in plan assets: Fair value of plan assets at beginning of year Actual return on plan assets Employer...

  • Page 78
    ...$ 25,412 (757) (704,840) $ (680,185) Amounts recognized in accumulated other comprehensive income (loss) at December 31, 2006 consist of: Millions of yen Thousands of U.S. dollars Actuarial loss Prior service cost Net transition obligation ¥ 139,305 (94,935) 3,610 ¥ 47,980 $1,170,630 (797,773...

  • Page 79
    ... of plan assets: Projected benefit obligations Fair value of plan assets Plans with accumulated benefit obligations in excess of plan assets: Accumulated benefit obligations Fair value of plan assets Components of Net Periodic Benefit Cost Net periodic benefit cost for Canon's employee retirement...

  • Page 80
    ... account the expected long-term rate of return on plan assets, Canon formulates a "model" portfolio comprised of the optimal combination of equity securities and debt securities. Plan assets are invested in individual equity and debt securities using the guidelines of the "model" portfolio in order...

  • Page 81
    ... not deductible for tax purposes Tax benefits not recognized on operating losses of subsidiaries Income of foreign subsidiaries taxed at lower than Japanese statutory tax rate Tax credit for research and development expenses Other Effective income tax rate 40.0% 0.3 - (2.1) (4.1) 0.4 34.5% 40...

  • Page 82
    ... of yen 2006 2005 Thousands of U.S. dollars 2006 Deferred tax assets: Inventories Accrued business tax Accrued pension and severance cost Research and development-costs capitalized for tax purposes Property, plant and equipment Accrued expenses Net operating losses carried forward Other Total gross...

  • Page 83
    ... the conversion of convertible debt. In accordance with the Corporation Law of Japan, conversion into common stock of convertible debt is accounted for by crediting one-half or more of the conversion price to the common stock account and the remainder to the additional paid-in capital account. 81

  • Page 84
    ... of account in accordance with financial accounting standards of Japan. Such amount was ¥1,494,372 million ($12,557,748 thousand) at December 31, 2006. Retained earnings at December 31, 2006 included Canon's equity in undistributed earnings of affiliated companies accounted for by the equity method...

  • Page 85
    ... adjustments are as follows: Year ended December 31 Before-Tax Amount Millions of yen Tax (Expense) or Benefit Net-of-Tax Amount 2006: Foreign currency translation adjustments Net unrealized gains and losses on securities: Amount arising during the year Reclassification adjustments for gains and...

  • Page 86
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED CANON INC. AND SUBSIDIARIES Year ended December 31 Thousands of U.S. dollars Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount 2006: Foreign currency translation adjustments Net unrealized gains and losses on securities: Amount ...

  • Page 87
    ... fail to meet their obligations, because most of the counterparties are internationally recognized financial institutions and contracts are diversified across a number of major financial institutions. Foreign currency exchange rate risk management Canon's international operations expose Canon to the...

  • Page 88
    ... are made to ensure that those companies operate with less financial risk. For each guarantee provided, Canon would have to perform under a guarantee if the borrower defaults on a payment within the contract periods of 1 year to 30 years, in the case of employees with housing loans, and of 1 year to...

  • Page 89
    ... and distributing these digital products. In May 2004, VG Wort filed a civil lawsuit against Hewlett-Packard GmbH seeking levies on multi-function printers. This is an industry test case under which Hewlett-Packard GmbH represents other companies sharing common interests, and Canon has undertaken to...

  • Page 90
    ... of Canon's long-term debt instruments are based on the quoted price in the most active market or the present value of future cash flows associated with each instrument discounted using Canon's current borrowing rate for similar debt instruments of comparable maturity. Foreign exchange contracts The...

  • Page 91
    ... Framework (the COSO criteria). Based on its assessment, management concluded that, as of December 31, 2006, Canon's internal control over financial reporting was effective based on the COSO criteria. Canon's independent registered public accounting firm, Ernst & Young ShinNihon has issued an audit...

  • Page 92
    ... with the standards of the Public Company Accounting Oversight Board (United States), the effectiveness of Canon Inc. and subsidiaries' internal control over financial reporting as of December 31, 2006, based on criteria established in Internal Control-Integrated Framework issued by the Committee...

  • Page 93
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM The Board of Directors and Stockholders of Canon Inc. We have audited management's assessment, included in the accompanying Management's Report on Internal Control over Financial Reporting, that Canon Inc. and subsidiaries (the "Company") ...

  • Page 94
    ... Receipts are traded on the New York Stock Exchange (CAJ). Stockholders' Annual General Meeting: March 29, 2007, in Tokyo Further Information: For publications or information, please contact the Corporate Communications Center, Canon Inc., Tokyo, or access Canon's Website at www.canon.com/ 92

  • Page 95
    This publication was printed on 100% recycled paper by an ISO 14001-accredited printer. The inks used, containing neither VOCs (volatile organic compounds) nor mineral oils, excel in decomposition and de-inking. PUB. BEP016 0704SZ 19.3 Printed in Japan 93

  • Page 96
    CANON INC. 30-2, Shimomaruko 3-chome, Ohta-ku, Tokyo 146-8501, Japan