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CANON ANNUAL REPORT 2010 5
improved the profi tability of existing businesses
and established new businesses through innova-
tion, but, hit by the global recession in 2008, our
record of eight consecutive years of sales and
profi t growth came to an end.
To overcome this crisis, we temporarily revised
our strategy, shifting our focus in 2010 to improv-
ing management quality. We accelerated cost
reductions, facilitated higher capital-investment
effi ciencies and promoted inventory reductions
through the establishment of advanced supply
chain management (SCM). These initiatives proved
effective, enabling Canon to maintain a high stock-
holders’ equity ratio and accumulate retained earn-
ings and cash and cash equivalents. Furthermore, we
joined the global top 100 companies in terms of
market value.
Future Business Environments
Despite such uncertainties as high unemployment in the
United States, fi nancial instability in Europe, and persistent
defl ation in Japan, advanced nations are expected to con-
tinue moving toward gradual economic recovery.
Meanwhile, China, India and other emerging nations are
expected to sustain their steady economic growth. It is
apparent that these emerging nations will drive the growth
of the global economy. Also, looking at social and industrial
trends, the acceleration of information communication
technology (ICT) and increasing awareness of environmen-
tal issues will play increasingly important roles. As corpora-
tions focus their energies on these growing fi elds, global
competition in these areas is expected to further intensify.
Strategies for Phase IV
Under the new slogan “Aiming for the Summit—Speed &
Sound Growth,” Canon aims to realize rapid transformation
in anticipation of the changes of the times. Through this
transformation, we will again take on the challenge of
joining the world’s top 100 companies in terms of all key
performance indicators. To this end, we have formulated six
strategies, as follows:
1. Achieving the overwhelming No. 1 position in all core busi-
nesses and expanding related and peripheral businesses
2. Developing new business through globalized diversifi ca-
tion and establishing the Three Regional Headquarters
management system
3. Establishing a world-leading globally optimized produc-
tion system
4. Comprehensively reinforcing global sales capabilities
5. Building the foundations of an environmentally advanced
corporation
6. Imparting a corporate culture, and cultivating human
resources befi tting a truly excellent global company
In line with these strategies, we have set the following
targets for 2015, the fi nal year of Phase IV.
Net sales: ¥5 trillion or more
Operating profi t ratio: 20% or more
Net income ratio: 10% or more
Stockholders’ equity ratio: 75% or more
By achieving these targets, Canon aims to renew itself
and become a truly excellent global corporation. I would like
to ask you all for your continued support and understanding.
Fujio Mitarai
Chairman and CEO
Canon Inc.