Canon 2003 Annual Report Download - page 9

maintaining the company’s leading position in its current
fields of business, but also for exploring possibilities in other
markets. “Our fundamental approach is to have sufficient
depth, as well as breadth, in core technologies so that we
can always adapt to changes over time,” he says.
Another role of advanced technology in Mr. Mitarai’s
vision is to solve environmental problems, a subject about
which he is unequivocally forthright. “Sacrificing the
environment for profit is not an option in advanced
countries,” he declares. “It is not a matter of choosing one
thing over another, but a matter of co-existence.”
Canon has lived up to Mr. Mitarai’s ideals, adopting
aggressive recycling targets, dramatically reducing the
amount of energy used in the production and distribution of
its goods, and making stunning technological breakthroughs
that have enabled Canon products to establish new
standards for energy efficiency in many fields.
Recently Canon made an official entrance into the
business field of environmental technology, receiving
governmental approval to start operations focused on
environmental analysis and testing. An engineering business
charged with testing and evaluating soil and groundwater
contamination has already been established.
Global Strategic Thinking
At the same time that Canon has pursued Mr. Mitarai’s
environmental and research ideals, corporate profits have
risen dramatically. The latest record-setting mark, net
income of 275 billion yen on sales topping three trillion
yen in fiscal 2003, was achieved despite the significant
appreciation of the yen against the dollar, testimony to
Canon’s success in building a truly global organization.
When Mr. Mitarai took over as president and CEO, he
radically changed the way Canon employed its capital.
Under Mr. Mitarai’s direction, Canon has reduced long-term
interest-bearing debt from a high of 843.1 billion yen to
below 100 billion yen at the end of fiscal 2003 through cash
repayments. Moreover, investor relations have been made
a priority. The upshot: Today Canon claims 49.8% overseas
investors and an expanding number of retail investors.
By focusing on a healthy financial constitution, better cash
flow and higher dividends, Mr. Mitarai has produced a recipe
for success that has been prescribed for the whole of Japan.
The Poll of Public Opinion
Mr. Mitarai’s achievements resonate with the public. A
December 2003
Nikkei Sangyo Shimbun survey ranked him
as the No. 1 manager of the year in Japan. His achieve-
ments burnish the luster of the company as a whole, as
does Canon’s prominence as one of the post-recession
bellwethers. Japanese university students consistently rank
Canon among their top choices for employment following
graduation. Results such as these show that Mr. Mitarai is
clearly accomplishing his goal of making Canon “a first-rate
company in every country and region where we exist.”
To ensure compliance with regulations such as RoHS, Canon employees work
closely with regular suppliers, as shown here at a supplier’s plant in Shenzen, China.
A new state-of-the-art technology research center will be located in the
compound with the Canon headquarters in Shimomaruko.
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