In 2009, Canon's business performance is feeling the impact of the global economic crisis.

But for Canon, these tough times present a golden opportunity to bolster our corporate structure. We are making a major change in course for Phase III of the Excellent Global Corporation Plan, launched in 2006, from sound growth to improved management quality, and are now preparing for our next leap.

Through the Excellent Global Corporation Plan, introduced in 1996, we transformed the company's corporate mindset with a focus on total optimization and profit, and carried out innovative management reforms. These efforts contributed to creating the foundation on which Canon stands today.

"Improved management quality" refers to the achievement of real-time management that immediately puts into practice strategies based on well-honed decision-making processes. To realize real-time management and become a truly global corporation, we will strengthen both cash flow management and supply chain management while enhancing product competitiveness and profitability to deliver results even amid shrinking markets.

Canon sees itself growing and prospering over the next 100, or even 200 years, and is committed to becoming an excellent global company respected the world over. Based on our corporate philosophy of kyosei, we make every effort to contribute to society and fulfill our corporate responsibilities by constantly refining technology that benefits society. At the same time, we are also focusing on the needs of business and the environment so that our planet may flourish and the people who live on it prosper.

As Canon moves forward, we look forward to your continued understanding and support.

For Canon, 2009 is a year to focus our energies on the next great leap forward. Amid an economic crisis of unprecedented proportions, we are working hard to improve management quality so that we can hit the ground running once the business climate turns around.

More crucial than anything in this effort is the timely release of highly competitive new products realized through a range of innovations, including the development of key components. As we aim for the overwhelming No.1 market position in all current business areas, we are doubling our efforts to establish "cross-media imaging," enabling people to freely and vividly express themselves, giving form to their imagination and creativity through advanced synergies between Canon imaging devices.

Additionally, we are working to realize advanced supply chain management through IT innovations aimed at consolidating information for all business processes throughout the company. We are also promoting in-house production and automated production systems, realizing regionally optimized production bases worldwide, nurturing new core businesses, and developing next-generation technologies. We remain committed to further strengthening our environmental management, improving product quality, and promoting corporate governance and compliance activities to fulfill our corporate responsibilities.

Canon today is the product of having overcome many past trials and tribulations. As we work toward our Excellent Global Corporation Plan goal of joining the ranks of the world's top 100 companies in terms of all key business performance indicators, we continue to innovate, always keeping in mind the spirit of "Speed and Quality" under which the plan was first launched.

In closing, I look forward to your continued understanding and support.