Policy on Holding Strategic Shareholdings
Policy Regarding Strategic Holdings
For the medium- to long-term growth of Canon, ceaseless improvement of respective systems like development, production, and sales, is essential. It is, however, difficult to achieve all of them solely through the management resources of Canon Group. Canon decides in some cases to hold shares of companies outside Canon Group as part of cooperation with such companies, when it determines that such shareholding would be beneficial to strengthening of those systems.
Details of Examining the Rationale of Strategic Share Holdings
Canon evaluates each of its strategic shareholdings from qualitative aspects, such as the purpose of the holding, and quantitative aspects, whether the return on investment from the holding exceeds Canon’s cost of capital and reports the results annually to the Board of Directors to verify the rationale for the holdings from a medium- to long-term perspective.