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Up to now, Canon has achieved growth by pursuing the basic strategies of diversification and globalization.

The Company has realized steady growth by combining existing and new technologies in order to consistently introduce cutting-edge products that were born in Japan.

However, if we promote diversification through innovation centers only in Japan, it will become difficult to capture future global growth opportunities.

For this reason, it is necessary to promote global diversification as the basis for our Three Regional Headquarters management system.

This does not mean that we will transfer our headquarters overseas. For products developed and manufactured in Japan, Japan will remain the headquarters for that product.

But, for industries and products born outside of Japan, for example, those created in Europe, Europe will become the headquarters for these industries and products.

Canon is making steady progress toward establishing the Three Regional Headquarters management system.

We are working to establish R&D centers in the United States, where we already have a production site, located in Virginia.

In Europe, we will conduct new research and development related to business machines, mainly through Océ.

The establishment of the Three Regional Headquarters management system will also help to diversify risk across the entire Canon Group.

By exporting different products from the three regional headquarters, Canon will be able to mitigate foreign exchange rate risks as well as logistics-related risks.

The Three Regional Headquarters management system is an essential business strategy due to the shift toward globalization.