April 22,2014

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2014

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
U.S. Accounting Standards Applied:No

1.Consolidated business results for the three months ended March 31, 2014 (From January 1, 2014 to March 31, 2014)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Three months ended

Operating income

Ordinary income

Millions of yen%

Millions of yen

March 31, 2014

182,697

21.6

9,231

-

9,369

March 31, 2013

150,210

(7.9)

403

(88.6)

536[Note] Comprehensive Income:%

Millions of yen

Net income%

Millions of yen(85.4)

%

5,707

-(35)

-

Three months ended March 31, 2014 : 5,636 million yen [829.0%]
Three months ended March 31, 2013 : 606 million yen [-72.8%]
Net incomeper share

Diluted net income
per share
YenYenMarch 31, 2014

44.01

-March 31, 2013(0.26)-

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

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%

YenFirst quarter ended March 31, 2014

478,159

261,14054.6

2,011.64

Year ended December 31, 2013

467,076

257,07555.0

1,980.22[Reference] Shareholders' equity:

First quarter ended March 31, 2014 : 260,868 million yen
Year ended December 31, 2013 : 256,794 million yen

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

YenYenYenYenYen

Year ended December 31, 2013-12.00

-

12.00

24.00

Year ending December 31, 2014

12.00

-

12.00

24.00

Year ending December 31, 2014
(forecast)[Note] Revision of cash dividend forecast for this period : None

3.Consolidated financial forecast for the fiscal year ending December 31, 2014

(Percentage represents increases or decreases from the previous year)
Net income
Operating income
Ordinary income
Net incomeper shareNet sales

Full year(Amounts less than one million yen are truncated)

Millions of yen%

Millions of yen%

Millions of yen%

673,200

2.4

18,80010.5

19,9009.3[Note] Revision of forecast for this period : None-1-

Millions of yen%

12,000 18.0

Yen92.54

* Others(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries) :(2) Application of a specified accounting procedure :NoneYes(3) Changes in accounting policies and accounting estimates, retrospective restatement( i ) Changes in accounting policies based on revisions of accounting standard :None( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :None(3) Number of issued and outstanding shares (common stock)( i ) Number of issued and outstanding shares at the end of the period (including treasury stock)
As of March 31, 2014 :

151,079,972

As of December 31, 2013 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of March 31, 2014 :21,400,944

As of December 31, 2013 :

21,400,070( iii ) Average number of shares
As of March 31, 2014 :

129,679,259

As of March 31, 2013 :133,086,416

Disclaimer :Earnings projections are based on information available at the time these materials were announced, and theCompany cannot guarantee that they will be realized. Also, actual results may differ from the estimated figures
given due to various factors.

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Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2013

As of March 31, 2014

AssetsCurrent assets
Cash and deposits

20,082

18,573

Notes and accounts receivable-trade132,696

129,624

Short-term investment securities

82,20094,400

Merchandise and finished goods

26,84132,449578

469

Work in process
Raw materials and supplies

814

840

Deferred tax assets

5,088

5,107

Short-term loans receivable

50,00050,000

Other

6,823

7,150

Allowance for doubtful accounts

(188)

(185)

324,938

338,430

49,126

48,584

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net

98

4,510

4,686

Rental assets, net

9,340

8,568

Land

36,01236,012

Lease assets, net
Total property, plant and equipment

685

617

99,684

98,478Intangible assets
Goodwill

447

411

Software12,006

11,069Lease assets

93

77

Right of using facilities

316

316

Other

29

27

12,894

11,902

5,303

5,240

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

1111

Deferred tax assets

16,08416,096

Guarantee deposits

5,571

5,511

Other

2,981

2,872

Allowance for doubtful accounts

(393)

(383)

Total investments and other assets

29,55929,349142,137

139,729

467,076

478,159

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2013

As of March 31, 2014

Liabilities
Current liabilities
Notes and accounts payable-trade108,498

114,627

Lease obligations

446

436

Accrued expenses

24,976

21,787

Income taxes payable

2,996

3,503

Accrued consumption taxes

2,965

2,128

Provision for bonuses

3,506

12,788Provision for directors' bonuses

65

13

Provision for product warranties

654

704

Provision for loss on order received

84

94

Other

20,71916,242

Total current liabilities

164,914

172,327

Long-term loans payable

73

62

Lease obligations

454

365

Deferred tax liabilities

579

574

Deferred tax liabilities for land revaluation

31

31

38,23338,015933

989

Noncurrent liabilities

Provision for retirement benefits
Accrued long service rewards for employees
Other

4,780

4,652

Total noncurrent liabilities

45,08644,691

210,000

217,018

Capital stock

73,30373,303

Capital surplus

82,81982,819Retained earnings

131,331

135,483

Total liabilities
Net assets
Shareholders' equity

Treasury stock(31,896)(31,898)

Total shareholders' equity

255,557

259,708

1,138

1,092

98

67

1,236

1,159

281

272

257,075

261,140

467,076

478,159

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-4-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2013(from January 1, 2013
to March 31, 2013)

Three months of FY2014(from January 1, 2014
to March 31, 2014)

Net sales

150,210

182,697

Cost of sales

100,135

121,651

Gross profit

50,07561,046

Selling, general and administrative expenses

49,671

51,814

403

9,231

68

64

Operating income
Non-operating income
Interest income
Dividends income

1314

Other

189

155

Total non-operating income

271

234

89

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method-3

Foreign exchange losses

69

Other

61

Total non-operating expenses

139

96

536

9,369

Gain on sales of non-current assets

12Gain on sales of investment securities

540

Other00

Total extraordinary income

56

2104

31

Ordinary income

82

Extraordinary income

Extraordinary loss
Loss on sales and retirement of non-current assets
Office transfer expenses

4-

Other

21

81

Total extraordinary losses

130113

Income before income taxes and minority interests

462

9,258

Income taxes

490

3,546

Income (loss) before minority interests

(28)

5,712

Minority interests in income
Net income (loss)

64(35)

5,707※ To reflect this change in the presentation method, the Company has amended classification of its results for the previous fiscal year.
As a result, 798 million yen, which was included in cost of sales in the Consolidated Statements of Income for the previous year, is now
included in selling, general and administrative expenses.

-5-Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2013(from January 1, 2013
to March 31, 2013)
Income (loss) before minority interests

Three months of FY2014(from January 1, 2014
to March 31, 2014)

(28)

5,712

Valuation difference on available-for-sale-securities

569

(46)

Foreign currency translation adjustment

65

(29)

Total other comprehensive income

635

(76)

606

5,636

Comprehensive income attributable to owners of the parent

594

5,630

Comprehensive income attributable to minority interests

125

Other comprehensive income

Comprehensive income
Comprehensive income attributable to-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)Three months of FY2013(from January 1, 2013
to March 31, 2013)

Three months of FY2014(from January 1, 2014
to March 31, 2014)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation

462

9,258

4,265

4,209

Amortization of goodwill

1134

Increase (decrease) in allowance for doubtful accounts

(75)

(12)

Increase (decrease) in provision for retirement benefits

(146)

(199)

Increase (decrease) in provision for directors' retirement benefits(1,046)-Increase (decrease) in provision for bonuses

7,620

9,282

(82)

(79)

89

Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of property, plant and equipment

85

26

13,7383,079

Decrease (increase) in inventories(2,600)(5,592)

Increase (decrease) in notes and accounts payable-trade(13,124)

6,128

Other, net(5,683)(7,584)

Subtotal

Decrease (increase) in notes and accounts receivable-trade

3,433

18,562

Interest and dividends income received

83

78

Interest expenses paid

(8)

(9)

Income taxes paid

(5,115)(2,842)

Net cash provided by (used in) operating activities(1,607)

15,789Cash flows from investing activities
Proceeds from sales of securities
Purchase of property, plant and equipment

10-(5,115)(1,838)Purchase of intangible assets

(681)

(651)

Purchase of investment securities

(85)

(32)

Proceeds from sales of investment securities351

1

Net decrease (increase) in time deposits-100

Purchase of shares of subsidiaries-(939)

10(64)

61(5,584)(3,298)

(203)

(123)

Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Repayments of finance lease obligations
Purchase of treasury shares

(0)

(1)

(1,863)(1,557)

Cash dividends paid to minority shareholders

(9)

(12)

Other, net

0(4)(2,077)(1,699)Cash dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

0(1)

Net increase (decrease) in cash and cash equivalents(9,268)

10,790Cash and cash equivalents at beginning of period

108,259

102,182

Cash and cash equivalents at end of period

98,991

112,973-7-

Consolidated Quarterly Segment Information
I. Three months of FY2013 (from January 1, 2013 to March 31, 2013)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

Imaging
System

26,73634,560Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

82,278-

Sales - intersegment
Total
Operating income (loss)

7,194

6,618
-

16--

150,210-

7,194(7,194)150,210-

82,27833,931

34,5606,618

16157,405(7,194)150,2101,578

82(968)

(384)

95403

-403

[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
II. Three months of FY2014 (from January 1, 2014 to March 31, 2014)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
SystemIndustrial /Medical

33,171

47,985

9,312

OtherTotal

Adjustment Consolidated

182,697-Net sales
Sales - external customers

92,215-

Sales - intersegment
TotalOperating income (loss)

10,636-13--

182,697

10,636(10,636)

92,21543,80747,9859,312

13193,333(10,636)

182,697

-

4,549

1,220

3,207

143

110

9,231

-

9,231

[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
[Note] Starting from FY2014, the segment name of the Industrial Equipment was changed to Industrial / Medical. The change in the segment
name entails no changes in the amounts presented.

-8-