Canon 2007 Annual Report Download - page 6

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4
Progressing toward Phase III Targets
Canon has set the goal of joining the world’s top 100 com-
panies in terms of key performance indicators by 2010, the
end of Phase III of the Excellent Global Corporation Plan. In
addition to this goal, we envision ourselves carrying on for
another century of sustained development and prosperity. To
this end, we will keep our sights firmly fixed on pursuing
higher profits, offering attractive and timely products, and
effectively reducing costs. In particular, Canon is pursuing
key innovation activities, namely: strengthening supply chain
management (SCM), increasing in-house production,
enhancing automated production and improving the effi-
ciency of procurement processes in order to reduce costs.
Based on the Company’s progress in 2007, we are confident
that Canon is now poised to take great strides forward in the
final three years of Phase III.
The Company undertook aggressive investment in infra-
structure during 2007, with the view to ensuring the future
growth of the Canon Group. As one example, capital expen-
diture was directed toward boosting the automated produc-
tion of toner, toner cartridges and ink cartridges. The
Company successfully introduced a newly designed automat-
ed production line for its toner cartridges in 2007 and has
significantly increased the volume and quality of production.
Toward the establishment of fully automated production sys-
tems, the Company will continue to work toward the Group-
wide development of production technologies from a long-
term perspective.
New Management Challenges
After considering the accumulated capabilities of the Group
and future world market conditions, we decided to set our
sights even higher. We raised our 2010 target for consolidat-
ed net sales from ¥5.5 trillion to ¥6 trillion while targeting a
net income to sales ratio of 10% or more.
Our strategies for joining the global top 100 companies
include boosting sales in high-growth emerging markets. At
the same time, we will work toward creating new business-
es, which in certain cases will entail timely mergers and
acquisitions. In the year under review, Canon acquired
majority ownership of Tokki Corporation, and expects Tokki’s