January 26,2012

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 2011

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
March 28, 2012
Scheduled date of ordinary shareholders’ meeting:March 29, 2012
Scheduled date for commencement of dividend payment:
U.S. Accounting Standards Applied:No
1.Consolidated business results for the year ended December 31, 2011 (From January 1, 2011 to December 31, 2011)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net salesYear ended
31-Dec-11
31-Dec-10[Note] Comprehensive Income:Ordinary income

Operating income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

632,418

△ 6.2

8,441

9.1

10,668

12.5

6,763

81.6%

674,159

△ 1.8

7,735

22.8

9,480

15.3

3,724

-Year ended December 31,2011 : 6,732 (77.2%) / Year ended December 31, 2010 : 3,799 (-%)
Net income
per share

Year ended

Diluted net income Net income to stock
per share
holders' equity ratio

YenYenOperating income tonet sales ratio

Ordinary income tototal assets ratio%%%

31-Dec-11

49.30

-

2.7

2.4

1.3

31-Dec-10

26.70

-

1.5

2.1

1.1

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

Net assets

Millions of yen

Millions of yen

Year ended December 31, 2011
Year ended December 31,31 2010
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

447,765

251,30756.0

1,827.25

448 592
448,592

246 846
246,846

55 055.0

1 798 16
1,798.16

Year ended December 31,2011 : 250,670 / Year ended December 31, 2010 : 246,679(3) Cash FlowsNet cash provided byoperating activities(Amounts less than one million yen are truncated)
Net cash provided by
Cash and cash equivalents
financing activities
at end of period

Net cash provided byinvesting activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended December 31, 2011

8,715

(12,107)(3,811)

102,372

Year ended December 31, 2010

35,186(13,011)(8,171)

109,575

Total
dividends(annual)Ratio of
Payout ratio dividends tonet assets

2.Dividends
Dividend per share

Dividend per shareFirst
quarter-end

Secondquarter-end

Thirdquarter-end

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

Yen%%

Year ended December 31, 2010

-

10.00

-

10.00

20.00

2,787

74.9

1.1

Year ended December 31, 2011

-

10.00

-

10.00

20.00

2,743

40.6

1.1

-

10.00

-

10.00

20.00

Year ending December 31, 2012
(forecast)

3.Consolidated financial forecast for the fiscal year ending December31, 2012

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

Net sales

Six months ending June 30, 2012

39.2

Millions of yen%

Millions of yen---717,000 13.4

12,000[Note] Consolidated financial forecast of the Interim 2012 is not be disclosed-1-%

YenMillions of yen%

Millions of yen%------42.2

13,100 22.8

7,000

3.5

51.03

4.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) Changes in accounting principles, procedures and presentation methods, etc. related to the preparation ofconsolidated financial statements :( i ) Changes in accounting policies with revision of accounting standards :Yes( ii ) Changes in accounting policies other than ( i ) :None(3) Number of shares issued (common stock)( i ) Number of shares issued at the end of the period (including treasury stocks)
As of December 31, 2011 :

151,079,972

As of December 31, 2010 :

151,079,972( ii ) Number of treasury stock at the end of the period :As of December 31, 2011 :

13,895,071

As of December 31, 2010 :

13,895,647( iii ) Average number of shares during the period
Year ended December 31, 2011 :

137,184,507

Year ended December 31, 2010 :

139,504,341-2-

(Reference) Summary of Non-Consolidated Financial Results
1.Non-Consolidated business results for the year ended December 31, 2011 (From January 1, 2011 to December 31, 2011)(1) Non-Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net salesYear ended

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

31-Dec-11

510,905

△ 9.4

8,655

12.3

11,431

10.8

4,691 △ 19.5

31-Dec-10

563,714

△ 3.3

7,706

11.6

10,320

△ 2.6

5,828

Net income
per share
Year ended

Millions of yen%

-Diluted net income
per shareYen

Yen

31-Dec-11

34.20

-

31-Dec-10

41.78

-

(2) Non-Consolidated Financial Position(Amounts less than one million yen are truncated)Year ended December 31, 2011
Year ended December 31, 2010
[Reference] Shareholders' equity:

Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%Yen

440,151

249,64256.7

1,819.75

457,894

247,69154.1

1,805.54

Year ended December 31,2011 : 249,642 / Year ended December 31, 2010 : 247,691

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-Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2010

As of December 31, 2011

AssetsCurrent assets
Cash and deposits

15,975

19,303

Notes and accounts receivable-trade

118,886

123,027

Short-term investment securities

94,59983,219Merchandise and finished goods

19,00524,701Work in process

1,115

438

410

1,193

Raw materials and supplies
Deferred tax assets

4,930

4,410

Short-term loans receivable

40,00040,028

Other

7,278

5,770

Allowance for doubtful accounts

(509)

(215)

301,693

301,878

38,73840,233111Tools, furniture and fixtures, net

3,395

3,831

Rental assets, net

7,073

6,963

Land

35,08336,832

Lease assets, net

1,330

1,255

504

2,799

86,12791,928

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

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill

1,429

524

Software21,857

19,257

Lease assets

55

253

Right of using facilities

288

317

Other105

82

23,736

20,435

4,133

4,084

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

1530

Deferred tax assets

20,87419,020

Guarantee deposits

8,624

7,857

Other

3,716

2,977

Allowance for doubtful accounts

(329)

(446)

Total investments and other assets

37,03533,523

146,899

145,886

448,592

447,765

Total noncurrent assets
Total assets-4-Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2010

As of December 31, 2011

Liabilities
Current liabilities
Notes and accounts payable-trade

102,849

100,046

Short-term loans payable

-

1,616

Current portion of bonds

-

1,115

Lease obligations

431

604

Accrued expenses

24,38921,469

Income taxes payable

5,055

1,685

Accrued consumption taxes

2,607

2,208

Provision for bonuses

2,888

3,365

Provision for directors' bonuses

55

37

Provision for product warranties

803

726

Provision for loss on order received

526

255

Other

17,641

17,958

Total current liabilities

157,247

151,090

Noncurrent liabilities
Bonds payable-Long-term loans payable-

Lease obligations

1,069

Deferred tax liabilities

2,021

Deferred tax liabilities for land revaluation

564
1,152
639

-

Provision for retirement benefits

60

36,50631
37,259Provision for directors' retirement benefits

801

906

Accrued long service rewards for employees

915

918

Other

3,184

3,835

Total noncurrent liabilities

44,49845,367201,745

196,457

Capital stock

73,30373,303

Capital surplus

82,81982,819116,933

Total liabilities
Net assets
Shareholders' equity

Retained earnings

112,914

Treasury stock(22,191)(22,189)

Total shareholders' equity

246,845

250,866

Valuation difference on available- for-sale securities

(47)

(61)

Foreign currency translation adjustments

(118)

(133)

Total valuation and translation adjustments

(165)

(195)

Valuation and translation adjustments

Minority interests
Total net assets
Total liabilities and net assets-5-166636

246,846

251,307448,592

447,765

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2010(from January 1, 2010
to December 31, 2010)

FY2011(from January 1, 2011
to December 31, 2011)

Net sales

674,159

632,418

Cost of sales

446,615

409,526

Gross profit

227,543

222,892

Selling, general and administrative expenses

219,807

214,450

7,735

8,441

396

332

Operating income
Non-operating income
Interest income
Dividends income

6988

Insurance income

597

622

Gain on bad debts recovered-475

Other

1,072

1,204

Total non-operating income

2,135

2,722

Non-operating expenses
Interest expenses

3589

Other

355

406

Total non-operating expenses
Ordinary income

391

495

9,480

10,66841Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill-

Gain on sales of investment securities

211

Gain on transfer of business

400

Other11-

Total extraordinary income

4,491

1615

4,507

Loss on sales and retirement of noncurrent assets

455

425

Impairment loss

493

Extraordinary loss
484

Loss on disaster
Loss on adjustment for changes of accounting standard for asset
retirement obligation

-991

-

1,173

Office transfer expenses-503

Loss on valuation of investment securities

45285

Loss on cancellation of lease contracts

20635Loss on valuation of golf club membership

32

13

Expenses related to changing in business name12

Other-

266

291

1,512

4,203

Income before income taxes and minority interests

8,584

10,972

Total extraordinary losses
Income taxes-current

5,096

3,234

Income taxes-deferred(325)970

Total income taxes

4,770

4,204

Income before minority interests-

Minority interests in income
Net income-6-

6,767

89

3

3,724

6,763

Consolidated Statements of Comprehensive Income(Amounts less than one million yen are truncated)
FY2010(from January 1, 2010
to December 31, 2010)
Income before minority interests

FY2011(from January 1, 2011
to December 31, 2011)
-

6,767

Valuation difference on available-for-sale-securities

-

(17)

Other comprehensive income
Deferred gains or losses on hedges-(0)

Foreign currency translation adjustment

-

(17)

Total other comprehensive income

-

(34)

-

6,732

Comprehensive income attributable to owners of the parent

-

6,734

Comprehensive income attributable to minority interests-(1)

Comprehensive income
Comprehensive income attributable to-7-

Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
FY2011(from January 1, 2011
to December 31, 2011)

FY2010(from January 1, 2010
to December 31, 2010)
Net cash provided by (used in) operating activities
Income before income taxes and minority interests

8,584

10,972

Depreciation and amortization

13,73915,331

Impairment loss

493

484

Amortization of goodwill

904

905

Gain on negative goodwill-(4,491)

Increase (decrease) in allowance for doubtful accounts

(221)

(335)

Increase (decrease) in provision for retirement benefits

(326)

(651)

Increase (decrease) in provision for directors' retirement benefits

(43)

(63)

Interest and dividends income(466)(420)

Interest expenses

3589

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

308

293

Loss on disaster-991

Loss (gain) on transfer of business

(400)

-

Loss (gain) on sales of investment securities

(211)

181

Decrease (increase) in notes and accounts receivable-trade

6,901

4,983

Decrease (increase) in inventories

3,926(2,164)

Increase (decrease) in notes and accounts payable-trade(3,593)(9,781)Other, net

2,639(1,356)

Subtotal

32,26914,967Interest and dividends income received

477

429

Interest expenses paid

(35)

(89)

Income taxes (paid) refund

2,474(6,592)

Net cash provided by (used in) operating activities

35,1868,715

386

1,000(11,488)(11,976)

Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

645

1,600

(5,237)(3,625)Purchase of investment securities

(231)

(19)

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

519

317

Decrease (increase) in short-term loans receivable

(0)

13-

1,000

Purchase of intangible assets-Decrease (increase) in time deposits
Proceeds from transfer of business

(417)

1,776

Other, net
Net cash provided by (used in) investing activities-617

0(13,011)(12,107)-(350)

(313)

(603)

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(5,002)(1)

Cash dividends paid

(2,791)(2,745)

(64)

(64)

Cash dividends paid to minority shareholders
Other, netNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

1(46)(8,171)(3,811)(3)0

Net increase (decrease) in cash and cash equivalents

13,999(7,202)

Cash and cash equivalents at beginning of period

95,575109,575

Cash and cash equivalents at end of period

109,575

102,372-8-Consolidated Segment Information
FY2011 (from January 1, 2011 to December 31, 2011)
Major companies and organizations in each segment
Segment
Business Solutions

IT Solutions

Consumer Imaging

Industrial Equipment

Major companies / organizations

Canon Marketing Japan Inc.
Business Solutions Company
Canon System & Support Inc.
Showa Information Systems Co., Ltd.
Océ-Japan Corporation
Canon Print Square Inc.
Canon Marketing Japan Inc.
IT Product Promotion Headquarters
Canon MJ IT Group Holdings Inc.
Canon IT Solutions Inc.
Canon Software Inc.
Edifist Learning Inc.
other 9 companies
Canon Marketing Japan Inc.
Consumer Imaging Company
Canon Customer Support Inc.
Canon Field Assist Inc.
WithPhoto Inc.
Canon Marketing Japan Inc.
Industrial Equipment Sales Headquarters
ELK CORPORATION
other 2 companies

Major products in each segment
Segment

Major products / services

Business Solutions

Business-use multifunctional products, print-on-demand (POD) digital presses,
personal-use plain-paper copiers, laser printers, large format ink-jet printers,
office-use facsimiles, liquid crystal projectors, document scanners, color card
printers, color label printers, teleconference system, network cameras, service
and support

IT Solutions

System integration, embedded software, infrastructure&operation,
solution&software products, computer devices, network devicesConsumer Imaging

Digital cameras, interchangeable lenses, digital video cameras, ink-jet printers,compact photo printers, personal-use scanners, electronic dictionaries,
calculators

Industrial Equipment

Semiconductor manufacturing equipment, medical equipment (digital X-raycameras, ophthalmic equipment), medical system, healthcare related product,
broadcasting equipment

Information on net sales and income (loss) by reported segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

ConsumerImaging

97,941

179,503

IndustrialEquipment

Other

Total

Adjustment Consolidated

Net sales
Sales - outside customers

325,136-

26,53029,610-226(26,530)

658,949(26,530)

632,418

124,472

Operating income (loss)

3,488(3,072)

8,387

(245)

(116)

8,441

-

8,441

Assets147,928

55,29462,55623,544

12,299301,623

146,141

447,765

2,104

574

183

15,331-

15,331

905

-

905

16,184-

16,18429,610-26,530325,136

179,503-

632,418

Sales - intersegment
Total

226

632,418

Other
9,842

2,626

Amortization of goodwill

7898

Increase in Property, plantand equipment andIntangible assets

6,766

5,258Depreciation

1,584

-9-

471

2,103