Canon 2011 Annual Report Download - page 7

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05
Company plans to accelerate clinical research into the use of optical ultra-
sound mammography systems.
Under the fourth strategy, Canon further strengthened sales and market-
ing functions in China, where economic growth continues, and worked to
tap into such emerging markets as India, Brazil and Russia. We have also
boosted our cooperative efforts with Oc±N.V. and taken steps to reinforce
our solutions business supporting improved office productivity.
In addition, we have worked to reduce the cost of sales ratio through the
promotion of Dzman-machine celldzproduction along with boosting the auto-
mated production rate for toner cartridges.
SUSTAINED GROWTH THROUGH ADVANCES IN
MANUFACTURING
Although economic growth rates are slowing in emerging countries, forecasts
point to continued growth. By contrast, Canon cannot expect major overall
growth in developed countries, which are facing structural factors hindering
their economies. Accordingly, a full-scale recovery will take more time, espe-
cially in the eurozone. Meanwhile, the yen is expected to remain at historical
highs, underscoring the ongoing difficult business climate for Canon.
Nevertheless, I believe that Canon is capable of achieving growth regard-
less of the circumstances. To date, Canon has overcome the challenge of a
strong yen through the conviction that earnings can be generated through
manufacturing. Canon’s strength lies in its ability to differentiate its prod-
ucts, improve quality and continually realize cost reductions. These stem
from the Company’s tireless pursuit of advances in manufacturing, including
switchover from conveyor belt-based production to the cell production sys-
tem, the adoption of Dzman-machine celldzproduction, and the development of
automated production systems. Going forward, Canon will further hone
this strength by reaffirming its commitment to its own production systems
with the aim of becoming a company capable of realizing sustained growth.
2012 marks the second fiscal year of Phase IV. As the entire Canon Group
works in concert to fulfill our 2015 targets, we look forward to your ongo-
ing understanding and support.
FUJIO MITARAI
Chairman & CEO
Canon Inc.
02 13
STRATEGY Business Units Management System Financial SectionSTRATEGY