July 24,2012

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2012

Registered company name:
Stock listing:Code number:
URL:
Representative director:
Contact:

Canon Marketing Japan Inc.
Tokyo Stock Exchange, First Section
8060
http://cweb.canon.jp/eng/ir
Masami Kawasaki, President
Yo Shibasaki, Director Senior Vice President
Tel. +81-3-6719-9071
Scheduled date for commencement of dividend payment:
August 27, 2012
NoU.S. Accounting Standards Applied:

1.Consolidated business results for the six months ended June 30, 2012 (From January 1, 2012 to June 30, 2012)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Six months ended

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

June 30, 2012

332,844

13.1

7,815

535.1

8,695

197.7

4,688

146.0

June 30, 2011

294,328(11.9)

1,230(57.2)

2,920(28.7)

1,905

42.8

[Note] Comprehensive Income:Millions of yen%Six months ended June 30, 2012 : 4,747 [129.7%] / Six months ended June 30, 2011 : 2,066 [-%]Net income
per share

Six months ended

Diluted net income
per share
Yen

Yen

June 30, 2012

34.16

-June 30, 2011

13.89

-

(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

Second quarter ended June 30, 2012
Year ended December 31, 2011
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

447,154254,38956.8

1,850.86

447,765

251,30756.0

1,827.25

Second quarter ended June 30,2012 : 254,190 / Year ended December 31, 2011 : 250,670

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

YenYenYenYenYen

Year ended December 31, 2011

-

10.00

-

10.00

20.00

Year ending December 31, 2012

-

10.00
-

10.00

20.00

Year ending December 31, 2012
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December31, 2012

Net sales
Millions of yen

Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net income
Operating income
Ordinary income
Net income
per share%

Millions of yen%

701,000 10.8

17,000101.4[Note] Revision of forecast for this period : Yes-1-

Millions of yen%

18,000 68.7

Millions of yen%

10,000 47.8

Yen72.84

* Others(1) Changes in significant subsidiaries during the period :None*This refers to changes in specified subsidiaries resulting in change of scope of consolidation.
(2) Application of a specified accounting procedure :Yes

(3) Changes in accounting policies, accounting estimates and retrospective restatement( i ) Changes in accounting policies with revision of accounting standards :None( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :None(4) Number of shares issued (common stock)( i ) Number of shares issued at the end of the period (including treasury stocks)
As of June 30, 2012 :

151,079,972

As of December 31, 2011 :

151,079,972( ii ) Number of treasury stock at the end of the period :As of June 30, 2012 :

13,743,835

As of December 31, 2011 :

13,895,071( iii ) Average number of shares during the period
Six months ended June 30, 2012 :

137,251,879

Six months ended June 30, 2011 :

137,184,290

Disclaimer :Projections made in this report are based on information available at the time of publication.
Owing to various factors, actual results may differ from these projections.

-2-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2011

As of June 30, 2012

AssetsCurrent assets
Cash and deposits

19,30325,213

Notes and accounts receivable-trade

123,027

110,187

Short-term investment securities

83,21985,729Merchandise and finished goods

24,701

27,662438

506

Raw materials and supplies

1,193

1,295

Deferred tax assets

4,410

4,481

Short-term loans receivable

40,02840,011

Other

5,770

6,476

Allowance for doubtful accounts

(215)

(231)

301,878

301,334

40,23339,8281112

Tools, furniture and fixtures, net

3,831

4,199

Rental assets, net

6,963

8,507

Land

36,832

36,831

Lease assets, net

1,255

1,054

Construction in progress

2,799

5,363

Total property, plant and equipment

91,92895,796Work in process

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net

Intangible assets
Goodwill

524

85

Software19,257

17,455

Lease assets

253

205

Right of using facilities

317

317

Other

82

68

20,435

18,132

4,084

4,099

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

30

31

Deferred tax assets

19,02018,928

Guarantee deposits

7,857

6,312Other

2,977

3,015

Allowance for doubtful accounts

(446)

(497)

Total investments and other assets

33,52331,891

145,886

145,819447,765

447,154

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2011

As of June 30, 2012

Liabilities
Current liabilities
Notes and accounts payable-trade

100,046

91,201

Short-term loans payable

1,616

1,180

Current portion of bonds

1,115

1,127

Lease obligations

604

579

Accrued expenses

21,46921,052Income taxes payable

1,685

4,577

Accrued consumption taxes

2,208

2,360

Provision for bonuses

3,365

3,489

Provision for directors' bonuses

3723

Provision for product warranties

726

906

Provision for loss on order received

255

92

Other

17,95821,002

Total current liabilities

151,090

147,595

Noncurrent liabilities
Bonds payable60

Long-term loans payable

-564

250

1,152

922

Deferred tax liabilities

639

605

Deferred tax liabilities for land revaluation

31

31

37,25937,567

Lease obligations

Provision for retirement benefits
Provision for directors' retirement benefits

906

936

Accrued long service rewards for employees

918

981

Other

3,835

3,872

Total noncurrent liabilities

45,36745,168

196,457

192,764

Capital stock

73,30373,303

Capital surplus

82,81982,819120,107

Total liabilities
Net assets
Shareholders' equity

Retained earnings

116,933

Treasury stock(22,189)(21,890)

Total shareholders' equity

250,866

254,340

(61)

(23)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges-0

Foreign currency translation adjustments

(133)

(127)

Total accumulated other comprehensive income

(195)

(150)

Minority interests
Total net assets
Total liabilities and net assets-4-636199

251,307254,389

447,765

447,154

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2011(from January 1, 2011
to June 30, 2011)

Six months of FY2012(from January 1, 2012
to June 30, 2012)

Net sales

294,328

332,844

Cost of sales

191,013214,378

Gross profit

103,315

118,466

Selling, general and administrative expenses

102,084

110,650

1,230

7,815

199

142

Operating income
Non-operating income
Interest income
Dividends income

60

65

Insurance income

570

588

Gain on bad debts recovered

475

Other
Total non-operating income

-637

336

1,943

1,132

Non-operating expenses
Interest expenses

55

48

Other

197

204

Total non-operating expenses
Ordinary income

253

252

2,920

8,695

0

12,393179

Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill
Gain on sales of investment securities

0

Other

61-

Total extraordinary income

02,393242

Loss on sales and retirement of noncurrent assets

165

230

Impairment loss

203

0

Loss on disaster

950

Office transfer expenses
Loss on adjustment for changes of accounting standard for asset
retirement obligation

12Extraordinary loss

Loss on cancellation of lease contracts
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income
Net income

-5-

127

1,173

-

34-

494

21

3,033

379

2,280

8,558

365

3,860

1,915

4,698

109

1,905

4,688

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2011(from January 1, 2011
to June 30, 2011)
Income before minority interests

Six months of FY2012(from January 1, 2012
to June 30, 2012)

1,915

4,698

153

41

Other comprehensive income
Valuation difference on available-for-sale-securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income-0(2)

7151

49

2,066

4,747

2,057

4,733

913

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2011(from January 1, 2011
to June 30, 2011)

Six months of FY2012(from January 1, 2012
to June 30, 2012)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

2,280

8,558

Depreciation and amortization

7,236

7,747

Impairment loss

203

0

Amortization of goodwill

456

438

Gain on negative goodwill(2,393)(179)

Increase (decrease) in allowance for doubtful accounts

(170)

67

Increase (decrease) in provision for retirement benefits

(333)

353

Increase (decrease) in provision for directors' retirement benefits

(126)

30

Interest and dividends income

(260)

(207)

Interest expenses

55

48

Loss (gain) on sales and retirement of property, plant and equipment

126

218

Loss on disaster

950

Decrease (increase) in notes and accounts receivable-trade-26,737

12,562(574)(2,825)

Increase (decrease) in notes and accounts payable-trade(31,831)(8,845)

Other, net(3,243)

2,495

Subtotal(887)

20,462

Interest and dividends income received

268

208

Decrease (increase) in inventories

Interest expenses paid

(55)

(48)

Income taxes paid

(4,451)(1,032)

Net cash provided by (used in) operating activities(5,125)

19,589Proceeds from sales of short-term investment securities

1,000

19

Purchase of property, plant and equipment(4,282)(8,962)132(1,745)(1,499)Net cash provided by (used in) investing activities

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities(5)(6)

Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation

16498

Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities

(290)

-

1,000(34)210

1,755(3,946)(8,596)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-(749)

(227)

(316)

(0)

(103)

(1,376)(1,373)

(7)

(8)

1(47)

(1,611)(2,598)00

Net increase (decrease) in cash and cash equivalents(10,683)

8,395

Cash and cash equivalents at beginning of period

109,575

102,372

Cash and cash equivalents at end of period

98,891

110,767-7-

Consolidated Quarterly Segment Information
I. Six months of FY2011 (from January 1, 2011 to June 30, 2011)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Consumer
Imaging

48,744

76,631

IndustrialEquipment

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

162,184-

6,656

14,222-

162,184

62,966

76,631

6,656

1,120(1,554)

1,520

87

111

294,328-

14,222(14,222)-111

308,551(14,222)294,328

56

1,230

-

1,230--

294,328[Note] "Other" includes shared service businesses.
[Note] The Company acquired shares in ELK CORPORATION & OCE-JAPAN CORPORATION to make it a consolidated subsidiary. Asa result, ELK CORPORATION & OCE-JAPAN CORPORATION became a wholly-owned subsidiary of the Company. This transaction
resulted in a negative goodwill of 2,393 million yen, which was recognized in extraordinary income (as gain on negative goodwill) for thesecond quarter of FY2011, but was not allocated to reporting segments.
II. Six months of FY2012 (from January 1, 2012 to June 30, 2012)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

Consumer
Imaging

53,64286,094

IndustrialEquipment

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

175,343-

17,660103

13,055-

175,343

66,69886,094

17,6605,457

422,310(166)332,844-

332,844

13,055(13,055)-103

345,900(13,055)

332,844

171

7,815

-

7,815

-

-

[Note] "Other" includes shared service businesses.
[Note]The Company completed a share exchange transaction involving shares in SHOWA INFORMATION SYSTEMS CO., LTD.. As aresult, SHOWA INFORMATION SYSTEMS CO., LTD. became a wholly-owned subsidiary of the Company. This transaction resulted in anegative goodwill of 179 million yen, which was recognized in extraordinary income (as gain on negative goodwill) for the second quarter ofFY2012, but was not allocated to reporting segments.
*NOTE*As a result of the change in reportable segments, the "Commercial Imaging Equipment", which was previously included in"Industrial Equipment" segment, is included in "Consumer Imaging" segment starting from the current fiscal year.
The segment information for the previous fiscal year is disclosed after reclassifying the figures in accordance with the newreportable segments mentioned above.

-8-