Canon Marketing Japan Inc.
October 26, 2009

Summary Report of Consolidated Financial Results
For the Third quarter ended September 30, 2009

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
Masami Kawasaki, President
Yo Shibasaki,
Telephone:Tokyo Stock Exchange,
First Section
Tokyo+81-3-6719-9071

Managing Director,
Senior general manager of Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance (From January 1, 2009 to September 30, 2009)(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Change (%)

Years ended Dec. 31

Third quarter 2009
Third quarter 2008

¥496,709¥612,307(4.4)%Net Income

Change (%)

Years ended Dec. 31

Third quarter 2009
Third quarter 2008

¥ (4,536)¥7,772(42.6)%

Operating
Income¥4,086¥17,638

Change (%)

Net Incomeper Share(Yen)¥(33.04)¥ 54.12

Diluted Net
Income perShare-(26.6)%

Ordinary
Income¥5,63018,213

Change (%)(25.3)%(2) Financial Position(Millions of yen truncated to the nearest million, %)Total Assets

Total Net Assets

Stockholders’
Stockholders’ Equity
Equity Ratio
per Share (Yen)
Third quarter 2009
¥ 440,690¥250,537
56.0%¥1,796.19
Full term 2008
¥ 484,936¥259,043
52.6%¥ 1,858.39【Reference】Stockholder’s Equity: Third quarter 2009 ¥246,676 / Full term 2008 ¥255,220
Years ended Dec. 31

2. Dividends(Yen)Dividend per share

Full term 2008
Full term 2009
Full term 2009（Target）

The end of
the firstquarter-

The end of
the secondquarter¥20.00¥10.00-The end of
the thirdquarter

The end ofa term-¥20.00-【Note】Dividends for the end of a term and Full term 2009 have not be decided yet.

1Annual¥40.00-

Canon Marketing Japan Inc.

3. Earnings Outlook (For the Fiscal year ending December 31, 2009)(Millions of yen truncated to the nearest million, %)Net Sales

Full term 2009
Percentage Change

Operating
Income¥695,000(16.0)%

Ordinary
Income¥6,500(74.4)%¥8,000(69.2)%

Net Income¥(4,400)-

Net Income
per share(yen)¥(32.04)【Note】Earnings Outlook changed.

4. Notes(1) Significant changes in subsidiaries during the period : No
(2) Use of simplified accounting procedures : Yes(3) 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. : Yes(ii) Changes other than : No
(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
the Third quarter 2009
151,079,972 shares
Full term 2008
151,079,972 shares(ii) Number of treasury stocks at the end of the period
the Third quarter 2009
13,747,226shares
Full term 2008
13,745,742 shares(iii) Number of shares during the period (first nine months)
the Third quarter 2009
137,333,160 shares
the Third quarter 2008
143,606,505 shares

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

Canon Marketing Japan Inc.

Consolidated Balance Sheets
September 30, 2009 and December 31, 2008
(Millions of yen truncated to the nearest million)

The Third quarter of 2009ASSETS

September
30, 2009

December31, 2008

ChangeCurrent assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts¥14,718
106,467
82,12026,613
4,758
630
7,437
40,00010,945(574)¥24,501
149,548
88,09629,920
3,411
811
5,388
20,0006,473(460)¥(9,783)(43,081)(5,976)(3,307)
1,347
(181)
2,049
20,0004,472(114)

Total current assets

293,117327,692(34,575)

Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, netRental assets, net
Land
Lease assets, net

41,521
4
4,376
7,532
31,897392

44,105
30
4,455
7,659
41,739-(2,584)
(26)
(79)
(127)
(9,842)392

Total property, plant and equipment

85,724

97,989(12,265)

Goodwill
SoftwareLease assets
Right of using facilities
Other

2,551
21,540
27
288
109

2,925
15,598389
116(374)
5,942
27
(101)
(7)

Total intangible assets

24,51819,0285,490

Investment securities
Long-term loans receivable
Deferred tax assets
Guarantee deposits
Other
Allowance for doubtful accounts

5,374
23
18,962
9,126
5,414(1,571)

6,420
25
20,326
8,791
5,829(1,168)(1,046)(2)(1,364)
335
(415)
(403)

Total investments and other assets

37,33040,225(2,895)

147,573¥440,690

157,243¥484,936(9,670)¥(44,246)

Noncurrent assets:
Property, plant and equipment

Intangible assets:

Investments and other assets:

Total noncurrent assets

Total assets

Consolidated Balance SheetsCanon Marketing Japan Inc.
(Millions of yen truncated to the nearest million)

LIABILITIES

September
30, 2009

December31, 2008

ChangeCurrent liabilities:
Notes and accounts payable-trade
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Deferred tax liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other

96,197100
19,147
2,211
1,268
7
11,40083
798
138
16,412

123,896
28,137
6,085
2,280
7
3,084
114
1,106
290
18,736(27,699)
100(8,990)(3,874)(1,012)
0
8,316
(31)
(308)
(152)
(2,324)

Total current liabilities

147,765

183,739(35,974)

Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Accrued long service rewards for employees
Other

348
306
37,012
794
911
3,013

279
37,122
804
937
3,010

348
27
(110)
(10)
(26)
3

Total noncurrent liabilities

42,387
190,153

42,153225,893234(35,740)

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,30383,288
114,958(24,758)

73,303
83,289123,616(24,730)(1)(8,658)(28)

Total shareholders' equity

246,792

255,477(8,685)

(67)
(48)

(212)
(45)

145
(3)

(116)
3,861
250,537
440,690

(257)
3,822
259,043484,936141
39(8,506)(44,246)

Noncurrent liabilities:

Total liabilities
Shareholders’ equity:

Valuation and translation adjustments
Valuation difference on available-for- sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments

Minority interests
Total net assets

Total liabilities and net assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Statements of Income
For the Third quarter ended September 30, 2009 and 2008
From January 1to September 30(Millions of yen truncated to the nearest million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Insurance income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Loss on disposal and devaluation of inventories
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
OtherTotal extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on devaluation of investments in securities
Provision of liability for deferment continuous service’s reward
Expenses related to restructuring of consolidated subsidiaries
Expenses related to relocation of headquarters of affiliatedcompanies
Expenses related to changing in business name
Other
Total extraordinary losses(Loss) income before income taxes and minority interests
Income taxes
Minority interests in income
Net (loss) income

Nine months
Nine months
The third quarter The third quarter Changeof 2009of 2008
¥496,709¥612,307 ¥(115,598)
326,100
411,041(84,941)
170,608
201,266(30,658)
166,521
183,627(17,106)
4,086
17,638(13,552)
503
71
533
794
1,903

733
1,214
1,948

(230)
71
533
(420)
(45)

77
281
359
5,630

50
1,052
270
1,373
18,21327(1,052)
11(1,014)(12,583)

5,595
166
5,761

0
20
21

5,595
146
5,740

310
10,685
-

372
267

(62)
10,685
(267)

-

929
487

(929)
(487)

2,70813,704(2,312)2,060
164¥(4,536)

142
132
36
2,368
15,8667,882
211¥7,772(142)
(132)
2,672
11,336(18,178)(5,822)(47)¥(12,308)【Note】We do not rearrange the results of 2008 in accounting system of 2009.

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the Third quarter ended September 30, 2009 and 2008
From July 1 to September 30(Millions of yen truncated to the nearest million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Office transfer expenses
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Minority interests in income
Net income

Three months
Three months
The thirdThe third quarter
quarter of 2009of 2008
¥160,506¥193,683
105,394
129,033
55,11264,65054,68561,322427
3,327

Change¥(33,177)(23,639)(9,538)(6,637)(2,900)

134
3457
595

224
203
427(90)
3254
168

1056
66
955

15
294
310
3,444

(5)
(238)
(244)
(2,489)

24
5
29

-

24
5
29

142
096
18
257
728
685
1¥40

219
219
3,225
1,867
49
¥1,308

142
096
(201)
38(2,497)(1,182)(48)¥(1,268)【Note】We do not rearrange the results of 2008 in accounting system of 2009.

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the third quarter ended September 30, 2009 and 2008
From July 1 to September 30(Millions of yen truncated to the nearest million)

The thirdThe thirdquarter of 2009 quarter of 2008
Net cash provided by (used in) operating activities(Loss) income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits(Decrease) in provision for directors' retirement benefits
Increase in provision for bonuses
Interest and dividends income
Interest expenses
Gain (loss) on sales and retirement of property, plant and equipment
Decrease in notes and accounts receivable-trade
Decrease (increase) in inventories(Decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation
Payments for sales of investments in subsidiaries resulting inchange in scope of consolidation(Increase) in short-term loans receivable
Decrease in time deposits
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Decrease in short-term bank loans
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
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Change¥(2,312)
8,790
10,685
633
555
321
(9)
8,271
(575)
77
(5,307)42,5682,415(27,074)(12,365)¥15,866 ¥(18,178)
8,996
(206)
10,685630
377
478(1,458)
1,779
(5)
(4)
10,053(1,782)
(733)
158
50
27354
(5,661)53,787(11,219)(2,898)5,313(29,509)2,435(9,155)(3,210)26,674596(77)(10,781)
16,41146,057746(69)(12,946)
33,788(19,383)
(150)
(8)
2,165
(17,377)(5,257)
5,959(8,037)(2)
15(7,092)(5,452)
(814)
4,070

1,835
5,959
(2,585)812(4,055)

(396)

(18)

(378)

(188)

27

(188)

(19,999)
5,000(199)(23,106)(19,994)5,000(464)(24,739)

(5)
0
265
1,633

(41)
(3)
(4,118)(121)
1(473)(10,013)(6,096)(124)
7(41)
10,0101,978
3(6)(4,283)(2)(10,981)
107,588¥96,607(16,699)
12,416(25)
23(7,676)(3,305)
117,206(9,618)¥109,529 ¥(12,922)

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information

For the third quarter ended September 30, 2009 and 2008

Nine months
From January 1, 2009 to September 30, 2009

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income (loss)

From January 1, 2008 to September 30, 2008

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
anddSolutions Equipment Equipment
eliminations¥315,573 ¥163,561
315,573 163,561¥309¥5,255¥17,574 ¥496,709
17,574 496,709¥(1,478)¥4,086

\(-)
(-)
(-)

¥496,709
496,709¥4,086(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
Solutions Equipment Equipment
anddelimination¥374,972 ¥183,782
374,972 183,782¥11,288¥4,619¥53,553 ¥612,307
53,553 612,307¥1,729 ¥17,638

\(-)
(-)
(-)

¥612,307
612,307¥17,638

Three months
From July 1, 2009 to September 30, 2009

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income (loss)

From July1, 2008 to September 30, 2008

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
dSolutions Equipment Equipment
andeliminations¥98,962
98,962¥(2,113)¥56,782
56,782¥2,887¥4,762 ¥160,506
4,762 160,506¥(346)
¥427

\(-)
(-)
(-)

¥160,506
160,506¥427(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
Solutions Equipment Equipment
anddelimination¥117,854
117,854¥2,009¥60,047
60,047¥1,143¥15,781 ¥193,683
15,781 193,683¥174¥3,327

\(-)
(-)
(-)

¥193,683
193,683¥3,327

Consolidated Segment Information

Canon Marketing Japan Inc.
Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2.Main Products in Each Segment
Segment
Business Solutions

Main Products / Service
Business-use multifunctional products, print-on-demand (POD) digitalpresses, laser-beam printers, large format ink-jet printers, business-use
facsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, teleconference system, network equipment,
software, service and support, system integration, embedded
software,infrastructure&operation, solution&software products,
computer devices, network devices

Consumer Equipment

Digital cameras, film cameras, interchangeable lenses, digital videocameras, ink-jet printers, compact photo printers, personal-use plainpaper copiers, personal-use facsimiles, personal-use scanners,
electronic dictionaries, calculators, personal computers

Industrial Equipment

Lithography equipment for semiconductor manufactures and othersemiconductor manufacturing equipment, Lithography equipment for
LCD manufactures, medical equipment (digital X-ray cameras,
ophthalmic equipment), broadcasting equipment

Consolidated Segment Information