October 23,2013

Summary Report of Consolidated Financial Resultsfor the third quarter ended September 30, 2013

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 nine months ended September 30, 2013 (From January 1, 2013 to September 30, 2013)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Nine months ended

Ordinary income

Net income%Millions of yen%

Millions of yen%

468,622

(1.9)

8,368

(15.5)

9,340(14.9)

4,684

477,500

6.0

9,898

283.6

10,980147.6

5,801 142.2

September 30, 2013
September 30, 2012
[Note] Comprehensive Income:Operating income

Millions of yen

Millions of yen%

(19.3)

Nine months ended September 30, 2013 : 6,252 million yen [7.7%]
Nine months ended September 30, 2012 : 5,804 million yen [141.2%]
Net income
per share

Diluted net income
per share
YenYen35.20-Nine months ended
September 30, 2013

42.26
September 30, 2012
* Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses are deductedfrom net sales in order to present them on a net basis.
Accordingly, figures after retrospective reclassification in accordance with such changes are presented for FY2012 and thereafter.

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

Net assets

Millions of yen

Millions of yen

Third quarter ended September 30, 2013
Year ended December 31, 2012
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

447,887

256,866

57.3

1,928.22

462,574

254,08854.9

1,907.50

Third quarter ended September 30, 2013 : 256,615 million yen
Year ended December 31, 2012 : 253,862 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, 2012

-

10.00

-

14.00

24.00

Year ending December 31, 2013

-

12.00

12.00

24.00

Year ending December 31, 2013
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December 31, 2013

(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
Millions of yen%

Millions of yen%659,300

0.0

16,9000.6

Full year[Note] Revision of forecast for this period : Yes-1-%

Millions of yen%

Yen

18,000 (0.6)

10,6000.2

79.65

Millions of yen

* 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 :

None

Yes

(3) Changes in accounting policies and accounting estimates, retrospective restatement( i ) Changes in accounting policies based on revisions of accounting standard :Yes( ii ) Changes in accounting policies other than ( i ) :Yes( iii ) Changes in accounting estimates :Yes( iv ) Retrospective restatement :None(4) 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 September 30, 2013 :

151,079,972

As of December 31, 2012 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of September 30, 2013 :

17,995,806

As of December 31, 2012 :

17,993,202( iii ) Average number of shares
Third quarter ended September 30, 2013 :133,085,671

Third quarter ended September 30, 2012 :

137,279,867

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, 2012

As of September 30, 2013

AssetsCurrent assets
Cash and deposits

23,406

19,461

Notes and accounts receivable-trade127,648

106,640

Short-term investment securities

85,02982,100

Merchandise and finished goods

27,32830,649575

651

Work in process
Raw materials and supplies

923

878

Deferred tax assets

4,708

4,725

Short-term loans receivable

40,00250,001

Other

7,214

8,892

Allowance for doubtful accounts

(230)

(195)

316,608

303,805

49,26549,245

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

1210

4,687

4,486

Rental assets, net

8,217

9,372

Land

36,342

36,113

Lease assets, net

1,038

Construction in progress

713-

Total property, plant and equipment

199,564

99,942

Goodwill

61

26

Software15,376

12,705

Lease assets

176

112

Right of using facilities

317

316

Intangible assets

Other

54

35

15,986

13,196

4,108

5,843

23

11

Deferred tax assets

17,596

16,842

Guarantee deposits

6,202

5,724

Other

2,984

2,924

Allowance for doubtful accounts

(501)

(400)

Total investments and other assets

30,41530,943145,965

144,082

462,574

447,887

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

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2012

As of September 30, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade104,162

93,932

Lease obligations

586

468

Accrued expenses

25,02818,489

Income taxes payable

5,122

1,437

Accrued consumption taxes

2,680

1,764

Provision for bonuses

2,989

12,013

Provision for directors' bonuses

6350

Provision for product warranties

764

715

Provision for loss on order received

2057

Other

21,97917,463

Total current liabilities

163,397

146,393

Lease obligations

859

523

Deferred tax liabilities

569

569

Deferred tax liabilities for land revaluation31

31

Provision for retirement benefits

37,80037,837

Provision for directors' retirement benefits

1,046

Accrued long service rewards for employees

900

Noncurrent liabilities

903

Other

3,880

4,761

Total noncurrent liabilities

45,08844,627

208,486

191,020

Capital stock

73,30373,303

Capital surplus

82,81982,819Retained earnings

124,624

125,848

Total liabilities
Net assets
Shareholders' equity

Treasury stock(26,891)(26,894)

Total shareholders' equity

253,855

255,076

Valuation difference on available-for-sale securities

61

1,497

Foreign currency translation adjustment

(54)

41

Accumulated other comprehensive income

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-4-6

1,538

225

251

254,088

256,866

462,574

447,887

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Nine months of FY2012(from January 1, 2012
to September 30, 2012)

Nine months of FY2013(from January 1, 2013
to September 30, 2013)

Net sales

477,500

468,622

Cost of sales

316,630

310,204

Gross profit

160,870

158,418

Selling, general and administrative expenses

150,971

150,049

9,898

8,368

214

186

Operating income
Non-operating income
Interest income
Dividends income

7173

Insurance income

635

642

Other

486

417

1,407

1,320

Total non-operating income
Non-operating expenses
Interest expenses

65

Foreign exchange losses

23-

Other259

Total non-operating expenses
Ordinary income

86239

325

348

10,9809,340

28Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill

179

Gain on sales of investment securities

62

Other

01244

125373554

Total extraordinary income

115

Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss

0

Special extra retirement payments

0-597

Office transfer expenses

132

Loss on valuation of investment securities

40

Other

29

176

Total extraordinary losses

203-576

1,532

Income before income taxes and minority interests

10,649

7,933

Income taxes4,831

3,221

Income before minority interests

5,817

4,712

1627

5,801

4,684

Minority interests in income
Net income-5-Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Nine months of FY2012(from January 1, 2012
to September 30, 2012)
Income before minority interests

Nine months of FY2013(from January 1, 2013
to September 30, 2013)

5,817

4,712

Valuation difference on available-for-sale-securities

(7)

1,437

Deferred gains or losses on hedges

0

Foreign currency translation adjustment

(5)

103

Other comprehensive income

Total other comprehensive income

-(12)

1,540

5,804

6,252

Comprehensive income attributable to owners of the parent

5,785

6,216

Comprehensive income attributable to minority interests

1936

Comprehensive income
Comprehensive income attributable to-6-

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Nine months of FY2012(from January 1, 2012
to September 30, 2012)

Nine months of FY2013(from January 1, 2013
to September 30, 2013)

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

10,6497,933

Depreciation and amortization

11,913

12,956

Impairment loss

00

Amortization of goodwill

450

35

Gain on negative goodwill(179)-Increase (decrease) in allowance for doubtful accounts

85(134)

Increase (decrease) in provision for retirement benefits

531

88

Increase (decrease) in provision for directors' retirement benefits

77(1,046)

Increase (decrease) in provision for bonuses

8,554

9,023

Interest and dividends income

(285)

(260)

65

23

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

249464

Decrease (increase) in notes and accounts receivable-trade16,311

21,100Decrease (increase) in inventories(6,347)(3,369)

Increase (decrease) in notes and accounts payable-trade(9,254)(10,229)

Other, net(3,730)(8,850)Subtotal

29,092

27,734

Interest and dividends income received

282

264

Interest expenses paid

(66)

(23)

Income taxes paid

(2,426)(8,387)

Net cash provided by (used in) operating activities

26,882

19,588Net 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

1930(13,134)(10,792)

33

239(2,131)(2,462)

Purchase of investment securities

(8)

(130)

Proceeds from sales of investment securities

138716

Net decrease (increase) in short-term loans receivable

23(9,998)

Purchase of intangible assets

Decrease (increase) in time deposits

(47)

47

1,648(56)(13,458)(22,407)

Redemption of bonds(1,156)-Net increase (decrease) in short-term loans payable

Other, netNet cash provided by (used in) investing activities
Net cash provided by (used in) financing activities(1,979)-Repayments of finance lease obligations

(477)

(505)

Purchase of treasury stock

(103)

(3)

Cash dividends paid

(2,749)(3,461)

Cash dividends paid to minority shareholders

(8)

(9)

Other, net

00(6,474)(3,979)00

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

6,948(6,798)

Cash and cash equivalents at beginning of period

102,372

108,259

Cash and cash equivalents at end of period

109,321

101,461-7-Consolidated Quarterly Segment Information
I. Nine months of FY2012 (from January 1, 2012 to September 30, 2012)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System

78,984125,122

Industrial
Equipment

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

249,097-

Sales - intersegment
Total
Operating income (loss)

19,31324,142-

154--477,500-

19,313(19,313)477,500-

249,097

98,297125,122

24,142

154

496,813(19,313)477,500

6,325

(73)

4,094(739)

291

9,898

-

9,898

[Note] "Other" includes shared service businesses.
II. Nine months of FY2013 (from January 1, 2013 to September 30, 2013)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
SystemIndustrial
Equipment

82,173

124,484

18,746

OtherTotal

Adjustment Consolidated

468,622-Net sales
Sales - external customers

243,165-

Sales - intersegment
Total
Operating income (loss)

21,988-51--

468,622

21,988(21,988)

243,165

104,161

124,484

18,74651490,610(21,988)468,622

-

4,716

(42)

4,938

(1,522)

278

8,368

-

8,368

[Note] "Other" includes shared service businesses.
[Note] Starting from FY2013, the segment name of the Consumer Imaging was changed to Imaging System. The change in the segment nameentails no changes in the amounts presented.
[Note] About " I. Nine months of FY2012 (from January 1, 2012 to September 30, 2012)"
Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses arededucted from net sales in order to present them on a net basis. As a result of the retrospective reclassification, selling, general andadministrative expenses decreased by 9,249 million yen for the Business Solutions segment, by 234 million yen for the IT Solutions segment,by 5,175 million yen for the Imaging System segment, by 12 million yen for the Industrial Equipment segment and 0 million yen for the othersegment from the figures before the reclassification. Nonetheless, such decreases do not have an effect on the segment income.

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