Canon 2008 Annual Report Download - page 63

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61
needs and that use high-quality HD imaging and dual fl ash
memory technologies.
The business application projector market experienced the
effects of the current global economic downturn beginning in the
fourth quarter of 2008. Canon has reduced its unit and monetary
projections for 2009.
The economic slowdown has affected high value-added
products fi rst, and the effects have started to be observed in
Canon’s high-resolution, high-brightness (high-luminosity), and
high value-added products. Notwithstanding this trend, Canon
continues to receive inquiries from system integrators and other
imaging professionals, and is seeking to expand high value-added
sales despite this current global economic downturn.
Optical and other products segment
In the semiconductor-production equipment industry, equipment
manufacturers must provide high quality products corresponding
to rapid technology progress. Canon will continue to focus on
developing new products which adopt leading-edge technologies,
such as immersion exposure technology and ultra precision
processing and measurement technology.
In the LCD production mask aligner market, Canon will seek
to strengthen its technical capabilities to meet the recent trend
toward larger glass-substrates due to the increasing demand for
larger LCD televisions.
In addition, Canon will continue to make distinctive products
enabling high resolution and high productivity.
In the TV lens market, demand for HDTV, which has grown
in the United States and Japan, is now growing in Europe. In
particular, there has been increased demand for lenses used for
broadcasting sporting events and for producing dramas and
documentaries in HDTV. Although Canon has observed a slow-
down in demand for these TV lenses starting at the end of fi scal
2008 due to the current global economic downturn, in the
medium term, Canon still expects that digitization will drive
worldwide replacement demand. At the same time, there have
been signs of expanded HDTV applications by the media, starting
with relatively inexpensive HDTV production, as the TV lens
market structure shows signs of change. Canon already has
signifi cant market share worldwide for this class of lens and intends
to continue to strengthen its market position in this market.
The economic downturn has caused a decline in the large
format printer market, accordingly, Canon’s sales fell below last
year’s sales performance. Canon will continue to lower costs of
production and improve inventory turnover by expanding its
market share and achieving economics of scale that improve
its profi tability.
Forward looking statements
The foregoing discussion and other disclosure in this report
contains forward-looking statements that refl ect management’s
current views with respect to certain future events and fi nancial
performance. Actual results may differ materially from those
projected or implied in the forward-looking statements. Further,
certain forward-looking statements are based upon assumptions
of future events that may not prove to be accurate. The following
important factors could cause actual results to differ materially
from those projected or implied in any forward-looking statements:
foreign currency exchange rate fl uctuations; the uncertainty of
Canon’s ability to implement its plans to localize production and
other measures to reduce the impact of foreign currency exchange
rate fl uctuations; uncertainty as to economic conditions in
Canon’s major markets; uncertainty of continued demand for
Canon’s high-value-added products; uncertainty as to the recovery
of computer and related markets; uncertainty of recovery in
demand for Canon’s semiconductor production equipment;
Canon’s ability to continue to develop products and to market
products that incorporate new technology on a timely basis,
are competitively priced, and achieve market acceptance; the
possibility of losses resulting from foreign currency transactions
designed to reduce fi nancial risks from changes in foreign
currency exchange rates; and inventory risk due to shifts in
market demand.