Canon Marketing Japan Inc.
２Jul 23, 2008

Summary Report of Consolidated Financial Results
For the Interim of fiscal year ended June 30, 2008
Registered Company Name:

Canon Marketing Japan Inc.

Stock Listing:Code No.:
URL:
Representative Director:
Contact:

8060
Headquarters:
http://cweb.canon.jp/co-profile/ir-e
Haruo Murase, President and CEO
Masami Kawasaki,
Telephone:Tokyo Stock Exchange,
First Section
Tokyo+81-3-6719-9071

Senior Managing Director,
Head of Administrative Department

U.S. Accounting Standards Applied:

1. Business PerformanceNo(From January 1, 2008 to June 30, 2008)(1) Results of Operations
Net Sales
Years ended Dec. 31

Percentage
ChangeInterim 2008
Interim 2007
Full term 2007

¥ 418,624¥ 427,709¥ 905,136
Net Income(2.1) %
+3.7%

Percentage
ChangeYears ended Dec. 31

Interim 2008
Interim 2007
Full term 2007

¥ 6,464¥ 9,990¥ 20,033(35.3)%+7.7%(Millions of yen truncated to the nearest million, %)Percentage
Percentage
Operating
Ordinary
IncomeIncomeChangeChange¥ 14,311(15.8)%¥ 14,769(15.4)%¥ 16,999+4.0%¥ 17,465+3.6%¥ 36,886¥ 36,895
Net Incomeper Share(Yen)¥ 44.79¥ 66.75¥ 134.84

Diluted Net
Income per
Share-(2) Financial Position
Total Assets
Years ended Dec. 31
Interim 2008
¥ 486,206
Interim 2007
¥ 503,819
Full term 2007
¥ 526,124Notes:
Shareholders’ equity (millions of yen)Interim 2008
¥ 263,913
Interim 2007
¥ 267,786
Full term 2007
¥ 266,086(Millions of yen truncated to the nearest million, %)Stockholders’ Equity
Stockholders’ Equity
Ratio
per Share (Yen)¥ 267,492
54.3%¥ 1,837.47¥ 272,898
53.2%¥ 1,789.16¥ 269,568
50.6%¥ 1,817.59

Total Net Assets(3) Cash Flows(Millions of yen truncated to the nearest million, %)Net Cash (Used in)
Net Cash Used in
Net Cash Used in
Cash and Cash
Provided by
Investing Activities Financing Activities
Equivalents at End of
Operating Activities
PeriodYears ended Dec. 31
Interim 2008
Interim 2007
Full term 2007

¥ 22,925¥ 18,788¥ 47,214¥ (25,395)¥ (21,115)¥ (21,911)

1¥ (8,769)¥ (2,796)¥ (16,344)¥ 105,944¥ 103,136¥ 117,206

Canon Marketing Japan Inc.

2. Dividends
Dividend per share

The end ofInterim¥18.00

Full term 2007
Full term 2008Full term 2008（Target）

The end ofa term
¥22.00

Annual¥40.00¥20.00¥40.00¥20.003. Earnings Outlook (For the fiscal year ended December 31, 2008)
Net Sales
Full term 2008% change¥ 875,000(3.3)%

Operatingincome¥32,500(11.9)%

Ordinary Income

Net Income¥ 33,000(10.6)%¥ 17,000(15.1)%(Millions of yen)
Net Income
per Share (Yen)¥ 118.36

4.Note(1) Significant changes in subsidiaries during the periodNo(2) Changes in accounting principles and procedures and presentation methods, etc. related to the preparation of consolidated
financial statements(i) Changes associated with the revision of accounting standards, etc. No(ii) Changes other than (i) Yes(3) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
Interim 2008
151,079,972 sharesInterim 2007
150,523,896 shares
Full term 2007
151,079,972 shares(ii) Number of treasury stocks at the end of the period
Interim 2008
7,451,381 sharesInterim 2007
852,329 shares
Full term 2007
4,684,846 shares

2Canon Marketing Japan Inc.

(Reference) Summary of Non-Consolidated Financial Results

1.Non-Consolidated Business Performance(1)Results of Operations

Years ended Dec. 31

Interim 2008
Interim 2007
Full term 2007

Years ended Dec. 31

Interim 2008
Interim 2007
Full term 2007

(2)

Net Sales¥353,531¥376,036¥777,348

Net Income¥6,670¥8,531¥15,795

Percentage
Change(6.0)%+3.2%

Percentage
Change(21.8)%+3.4%

Operating
Income¥9,156¥12,489¥25,483(Millions of yen truncated to the nearest million, %)Percentage
Ordinary
Percentage
ChangeIncomeChange(26.7)%¥11,303(18.7)%+4.5%¥13,908+3.6%¥27,429

Net Incomeper Share(Yen)¥46.22¥57.00¥106.31

Non-Consolidated Financial Position

Total Assets

Total Net Assets

Years ended Dec. 31

Interim 2008
¥489,304
Interim 2007
¥494,163
Full term 2007
¥522,556
Notes:
Shareholders’ equity (millions of yen)Interim 2008
¥259,214Interim 2007
¥265,358
Full term 2007
¥261,159¥259,214¥265,358¥261,159(Millions of yen truncated to the nearest million, %)Stockholders’
Stockholders’Equity per Share
Equity Ratio(Yen)
53.0%¥1,804.75
52.73%¥1,772.94
50.0%¥1,783.93

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.

3

Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of June 30, 2008 and 2007
(Millions of yen truncated to the nearest million)
June 30, 2008ASSETS
Current assets:
Cash and cash deposits
Notes and accounts receivable
Marketable securities
Inventories
Deferred tax assets
Short-term loans receivable
Other current assets
Allowance for doubtful receivables

Property and equipment:
Buildings and structures
Machinery and vehicles
Furniture and fixtures
Rental assets
LandIntangible assets:
Goodwill
SoftwareUtilization rights
Other intangible assets
Investments and other assets:
Investments in securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other investments
Allowance for doubtful receivables
Total fixed assets
Total assets

June 30, 2007

December 31, 2007

¥33,349
144,977
82,99437,802
4,844
20,0036,786(241)330,517¥ 109,138
168,269
4,218
43,019
5,947
7,170
(234)
337,530¥41,014
189,551
86,491
37,691
6,056
7
8,151
(310)
368,653

45,041
38
4,973
8,118
41,865100,036

46,641
61
5,594
8,110
41,865102,273

45,492
54
5,011
7,236
41,86599,6593,363
11,446390
41
15,241

3,709
8,050
397
43
12,200

3,772
9,396
393
44
13,606

8,187
24
19,435
8,703
4,984
(925)
40,410155,689¥486,206

20,05033
19,301
8,418
5,295(1,284)51,814
166,288¥503,819

12,36929
19,262
8,627
4,936(1,020)44,205
157,471¥526,124

4

Canon Marketing Japan Inc.
(Millions of yen truncated to the nearest million)
LIABILITIES AND NET ASSETS
Current liabilities:
Notes and accounts payable
Short-term bank loans
Accrued expenses
Accrued income taxes
Accrued consumption taxes payable
Deferred tax liabilities
Reserves
Other current liabilities
Long-term liabilities:
Long-term bank loans
Deferred tax liabilities
Liability for employees’ retirement benefits
Liability for directors’ and corporate
auditors’ retirement benefits
Liability for continuous service’s reword
Other long-term liabilities
Total liabilities
Stockholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Valuation and translation adjustments:
Net unrealized gain on available for salesecurities
Foreign currency translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

June 30, 2008

June 30, 2007

December 31, 2007

¥120,954
23,839
4,261
1,422
32
4,984
20,860176,354¥126,126
668
26,336
5,899
2,754
5,815
18,517
186,118¥148,329
343
30,167
8,682
3,360
12
5,386
17,677
213,959

344
37,504
678

383
1,930
39,148661

130
338
38,577
738

903
2,928
42,359218,7142,679
44,802230,9212,812
42,597
256,556

73,303
83,295
121,767(14,697)
263,668

73,30382,528111,357(1,250)265,938

73,303
83,296
118,527(9,694)
265,432

239

1,814

639

5
244
3,579
267,492¥486,206

34
1,848
5,111
272,898¥503,819

14
654
3,481
269,568¥526,124

5

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the Interim ended June 30, 2008 and 2007
From January 1,2008 to June 30, 2008
Interim 2008

Net sales
Cost of sales
Gross profit
Selling, general and administrative(Millions of yen truncated to the nearest million, %)Interim 2007
Full Term 2007

% of Net% of Net

Sales

Sales

% of Net
Sales¥418,624
282,008
136,616
122,305

100.0%
67.4
32.6
29.2

¥427,709
289,495
138,213
121,213100.0%
67.7
32.3
28.3

¥905,136
615,389
289,746
252,860

100.0%
68.0
32.0
27.9

14,311

3.4

16,9994.0

36,886

4.1

0.4

393
374
904
1,671

0.4

911
61
1,428
2,400

0.3

expenses

Operating income
Other income:Interest and dividend income
Amortization of negative goodwill

Other
Other expenses:
Interest expense
Loss on disposal anddevaluation of inventories
Other
Ordinary income
Extraordinary gains:
Gain on sales of fixed assets
Gain on sales of investments insecurities
Other
Extraordinary losses:
Loss on sales and disposal of
fixed assets
Loss on revaluation ofinvestments in securities
Provision of liability fordeferment continuous
service’s reword
Expenses related toheadquarters in affiliatedcompanies
Expenses related to relocationof restructuring ofconsolidated subsidiaries
Expenses related to relocationof warehouse
Expenses related to changing inbusiness name
Other
Income before income taxes andminority interests
Current income taxes
Deferred income taxes
Minority interests
Net income

509
1,011
1,521
34
816
211
1,063
14,769

25
948

0.3
3.5

231
1,205
17,465

0
0
20
21

66
1,901

0.3
4.1

12
12
24

0.0

423
2,391
36,895

0.3
4.1

15
805

0.0

492
1,313

291

214

558

207

-

1,235

929

-

-

423

-

58

142

-

-

-

226

226

130

11

20

0.1

24
2,149
12,641

0.5
3.0

32
484
17,005

0.1
4.0

657
2,757
35,452

0.3
3.9

4,685
1,329
161
¥6,464

1.1
0.3
0.2
1.5

5,589
1,250
175
¥9,990

1.3
0.3
0.1
2.3

14,469278670¥20,033

1.6
0.00.1
2.2

6

Canon Marketing Japan Inc.

Consolidated Statements of Changes in Net Assets
For the Interim ended June 30, 2008and 2007
(Millions of yen truncated to the nearest million)
Stockholders’ equity

Valuation and translation
adjustments
Net unrealized

CapitalCommonstock

Retainedearnings

surplus

Total
stock

Treasurystockgain onavailable-for-sa

Minority
interests

Foreigncurrencytranslation
adjustments

Total
net assets

Total

le securities

Balance at December
31,2007
Cash dividends
Net income
Purchases oftreasury stock
Disposition oftreasury stock
Employee welfare
fund
Other-Net
Change in the term
Balance atJune
30,2008
Balance at December
31,2006
Cash dividends
Net income
Purchases oftreasury stock
Disposition oftreasury stock
Purchases oftreasury stock
belonging toconsolidated
subsidiary by parent
company
Employee welfare
fund
Other-Net
Change in the term
Balance atJune
30,2007
Balance at December
31,2006
Cash dividends
Net income
Stock exchange
Purchases oftreasury stock
Disposition oftreasury stock
Purchases oftreasury stock fromsubsidiary by parent
company
Employee welfare
fund
Other-NetChange in the term
Balance at
December 31,2007

73,30382,296

118,527(9,694)

265,432

639

14

654

3,481

269,568----(3,220)-(3,220)

-

-

-

-

(3,220)

6,464

-

6,464

-

-

-

-

6,464

-

-

-

(5,007)(5,007)

-

-

-

-

(5,007)

-

(0)

-

4

3-

-

-

-

3-

-

(3)

-

(3)

-

-

-

-

(3)

-

(0)

3,239

(5,003)(1,763)

(400)
(400)

(8)
(8)

(409)
(409)

97
97

(311)
(2,075)73,303

83,295

121,767(14,697)

263,668

239

5244

3,579

267,492

73,30382,529104,076(1,235)

258,673

1,676

17

1,693

3,100

263,467--(2,703)-(2,703)----(2,703)

-

-

9,990

-

9,990

-

--

-

9,990

-

-

-

(14)

(14)

----

(14)

-

0

-

0

0

-

-

-

-0

-

(1)

-

-

(1)

----

(1)

--

(6)

-(6)

-

--

-

(6)

-

(1)

7,280

(14)

7,264

137
137

17
17

154
154

2,011
2,011

2,165
9,430

73,30382,528111,357(1,250)265,938

1,814

34

1,848

5,111

272,898

73,30382,529104,076(1,235)

258,673

1,676

17

1,693

3,100

263,467-766(5,575)20,033-

1,562(5,575)20,033
2,329----(5,575)20,033
2,329

-

--

(10,025)(10,025)----(10,025)

-

1-

3

4----

4

-

(1)

--

(1)

--

(6)

-(6)

---

-

(6)

-

766

14,451(8,458)6,758(1,036)(1,036)(2)(2)(1,039)(1,039)

380
380

(658)
6,100

73,303

83,296

118,527(9,694)

265,432

639

14

654

3,481

269,5687(1)Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Interim ended June 30, 2008 and 2007
From January 1,2008 to June 30, 2008
(Millions of yen truncated to the nearest million)
Interim 2008
Interim 2007
Full Term2007
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill (negative goodwill)
Decrease in allowance for doubtful receivables
Reversal of liability for employees’ retirement benefits
Reversal of liability for directors’ and corporate auditors’
retirement benefits
Interest and dividend incomeInterest expense
Loss on sales and disposal of property and equipment, net
Gain on sales of investments in securities
Decrease in notes and accounts receivable(Increase) Decrease in inventories
Decrease in notes and accounts payable
Other
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities:(Increase) Decrease short-term loans receivable
Payments for purchases of property and equipment
Payments for purchases of intangible assets
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Payments for purchases of investments in subsidiaries
Payments for purchases of investments in subsidiaries¥12,641
6,077
426
(164)
(1,098)(60)¥17,005
5,541
(374)
(63)
(1,051)(87)¥35,452
11,968(61)(251)(1,658)
(10)

(509)
34
275
(0)
44,512(107)(27,375)(3,178)31,473519(53)(9,014)22,925

(393)
25
200
(12)
32,101
9,151(32,574)(3,168)26,299387(25)(7,874)
18,788

(911)
66
424
(80)
10,79814,606(10,371)
1,161
60,410881(48)(14,028)
47,214(19,996)(5,258)(3,265)
(723)
4,010
(18)
-(4,466)(2,234)
(624)
1,522
(343)
(9,439)1(7,270)(5,771)
(963)
3,188
(343)
(9,439)(100)(43)(25,395)(1,000)(4,995)465(21,115)(1,000)(4,995)
4,681(21,911)(473)(5,007)(3,226)
(65)

(10)
(8)
(2,691)(58)(587)(10,019)(5,383)(331)

3(8,769)(22)(11,261)
117,206¥ 105,944(26)(2,796)
12(5,111)
108,247¥ 103,136(22)(16,344)
08,958108,247¥117,206

accompanying changes in scope of consolidation

Payments for deposit to long-term time deposits
Increase in time deposits
OtherNet cash used in investing activities
Cash flows from financing activities:
Decrease in short-term bank loans
Payments for purchases of treasury stock
Dividends paid by the Company
Dividends paid to minority interests inconsolidated subsidiaries
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

8Canon Marketing Japan Inc.

Consolidated Segment Information
For the Interim ended June 30, 2008 and 2007

Interim 2008
(From January 1 toJune 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

Interim 2007
(From January 1 toJune 30)

BusinessSolutions¥257,118
257,118
247,838¥9,279Business
Solutions

Consumer
Equipment¥123,734
123,734
120,258¥3,476

Consumer
Equipment(Millions of yen truncated to the nearest million)
CorporateandIndustrial
eliminations ConsolidatedEquipment
Total¥37,771
37,771
36,216¥1,555¥418,624
418,624
404,313¥14,311

¥

¥

(-)
(-)
(-)
(-)

¥418,624
418,624
404,313¥14,311(Millions of yen truncated to the nearest million)
Corporate
andIndustrial
eliminations Consolidated
Equipment
Total

Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income
Full term 2007
(From January 1 to
December 31)¥247,956
247,956
239,448¥8,508BusinessSolutions¥127,965
127,965
122,180¥5,785¥51,786
51,78649,080¥2,706

Consumer
Equipment

IndustrialEquipment¥284,375
284,375
270,041¥14,334¥104,041
104,041
98,712¥5,328¥427,709
427,709410,709¥16,999

¥

¥(-)
(-)
(-)
(-)

¥427,709
427,709410,709¥16,999

Total

Corporate
andeliminations

Consolidated

¥ (-)
(-)
(-)
(-)

¥905,136
905,136868,250¥36,866

Net sales
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income¥516,719
516,719
499,496¥17,223

9¥905,136
905,136868,250¥36,886