Marking 70 years in business, Canon will further accelerate its pursuit of sound growth

This year we celebrate our 70th anniversary. Established in 1937 as a camera manufacturer, Canon has grown into a global company by diversifying into new business fields, beginning with office equipment.
In keeping with our corporate philosophy of kyosei, in 1996 we launched the Excellent Global Corporation Plan with the aim of building a corporate group that continuously contributes to society through technological innovation and is worthy of admiration and respect worldwide. Under the plan we introduced two major changes in our corporate mindset: total optimization and a focus on profit over sales.
Additionally, we carried out a range of development and production reforms, and boosted the competitiveness of our products. As a result, Canon has emerged with a highly profitable business structure and transformed itself from a company relying on a 20th-century sales-oriented management approach, to one that employs a 21st-century profit-oriented approach.
In Phase III of the Excellent Global Corporation Plan, launched in 2006, we aim to achieve sound growth through new technologies while maintaining our highly profitable business structure. Amid economic globalization and the spread of broadband networks, we are implementing further business reforms that will enable us to continually evolve as a truly excellent global company, and continue to thrive for the next hundred, or even two hundred years into the future.
Additionally, we will continue to focus our energies on environmental protection, social contribution, sound corporate governance, and compliance activities befitting a company that espouses the kyoseiphilosophy.
I look forward to your continued understanding andsupport in our endeavors.

In 2006, the first year of Phase III of the Excellent Global Corporation Plan, we posted strong business results, achieving our seventh consecutive year of sales and profit growth.
In Phase III, through the pursuit of sound growth, we have set for ourselves the goal of securing by 2010 a place among the world's 100 leading companies in terms of key business indicators. Based on our performance in 2006, we have made a solid start toward achieving this objective.
Without becoming complacent with our past achievements, we are pressing ahead with a range of initiatives to realize our Phase III objectives. These include further cultivating our technologies to achieve the overwhelming No. 1 position in our core businesses, firmly establishing our display businesses, and establishing automated production lines. Toward these objectives, we continue to focus on reforms targeting improved quality in every facet of our operations. In addition, we are actively exploring next-generation business domains to support growth five years—even ten years—into the future.
Also, as a manufacturer, product quality and safety represent two priorities of vital importance for Canon.
To ensure that such problems do not occur, we will focus renewed attention on this area and carry out activities targeting further improvements in the quality of Canon products.
For these initiatives to succeed, it is important that all Canon employees constantly question the nature of things, and think and act accordingly. On the basis of Canon's "Three Selfs" guiding principle, we will accelerate the pace of sound growth through the strong will and determination that enables us to continue to innovate.
I ask for your continued understanding and support of Canon in the coming years.