In 2008, Canon entered the third year of Phase III of the company's Excellent Global Corporation Plan, which was launched in 1996 based on our corporate philosophy of kyosei. In accordance with the Excellent Global Corporation Plan, we aim to become a corporate group deserving of admiration and respect the world over by continuously contributing to society through technological innovation. By implementing a mindset focusing on total optimization and profit, Canon has made great strides through reforms targeting such areas as production and development. In 2006, we launched Phase III of the Plan, targeting sound growth through constant innovation while maintaining a highly profitable business structure.
As a world-class digital imaging company, Canon will continue to unlock the potential of technology to provide innovative new products and services while, at the same time, speeding up the development of new business domains that will support the company's growth in the years to come.
As a company that considers the responsibility of working toward the realization of a sustainable society a matter of course, Canon is committed to maintaining environmentally conscious business practices while actively promoting comprehensive social-contribution, corporate-governance and compliance activities.
Canon was founded in 1937 as a camera manufacturer and over the course of its 70-year history, the values that have contributed to the company's DNA include respect for human dignity, an emphasis on technology, and an enterprising spirit.
As the company moves forward amid fierce global competition and works to fulfill its social responsibilities, it is essential that we pass on these values. To ensure that Canon continues to grow as a truly excellent global company over the next one hundred, or even two hundred years, we must never feel content to simply stand on past accomplishments.We must remain committed to Canon's DNA as we continue our pursuit of innovation.
I sincerely look forward to your continued understanding and support in our endeavors.

Thanks to your continued support, Canon celebrated its 70th anniversary in 2007, crowning the milestone with our eighth consecutive year of sales and profit growth—the best results in the company's history.
As the midpoint of Phase III of the company's Excellent Global Corporation Plan, 2008 represents an important year for us. One of our key management objectives during this important five-year phase is for Canon to join the ranks of the top 100 global companies by 2010 in terms of all major management indicators.
To accelerate sound growth, Canon is promoting technological innovation with the aim of capturing the overwhelming No. 1 market position in all of its existing business areas while also actively pursuing partnerships with academia, research institutions, and other companies around the world in an effort to foster future areas of business.
Moreover, we are moving forward with various reforms, including in-house manufacturing, automated manufacturing, and the installation of a Group-wide IT system, to further bolster business efficiency.
Additionally, we are working to raise awareness among our employees about such issues as the environment, product quality, and safety, which are of paramount importance to a manufacturer, and encourage all employees to view these issues as personal priorities.
Canon is now working to realize cross-media imaging, a concept that supports the expression and recreation of thoughts and ideas, images and information, enabling synergies that transcend time and space. By creating new value through advanced interactive connectivity between diverse Canon imaging devices, we believe that we can contribute to society and further expand the potential of visual information.We intend to make this vision a reality through total optimization that goes beyond conventional business boundaries.
We look forward to your continued understanding and support of Canon in the years ahead.