October 23, 2017

Summary Report of Consolidated Financial Results
for the third quarter ended September 30, 2017

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
Masahiro Sakata, President
Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071
Dividend payable date (as planned):
U.S. Accounting Standards Applied: No
1.Consolidated business results for the nine months ended September 30, 2017 (From January 1, 2017 to September 30, 2017)(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

September 30, 2017
September 30, 2016

[Note] Comprehensive Income:Nine months ended

Operating income

Millions of yen

456,245%

Millions of yen(3.4)

15,8490.6

453,707

18,409%Millions of yen

1.0

16,86916.1

Millions of yen

14.6

12,515

(0.2)

%

25.2

9,994

8.0

Nine months ended September 30, 2016 : 10,504 million yen [11.5%]
Basic earnings
per share

Diluted earnings
per shareYen

Yen

96.52

-77.08September 30, 2016-(2) Consolidated Financial Position
Total assets(Amounts less than one million yen are truncated)

Net assets

Millions of yen

489,284

Third quarter ended September 30, 2017
[Reference] Shareholders' equity:%

19,334

Nine months ended September 30, 2017 : 11,656 million yen [11.0%]

September 30, 2017

Year ended December 31, 2016

Profit attributableto owners of parent

Ordinary income

Equity ratio

Millions of yen%

285,478497,727

280,919

Third quarter ended September 30, 2017 : 285,013 million yen

Net assets per share
Yen

58.3

2,198.00

56.4

2,162.96

Year ended December 31, 2016 : 280,472 million yen

2.Dividends

First quarter-end
Yen

Second quarter-end
Yen-

Year ended December 31, 2016

20.00

-Year ending December 31, 2017
Year ending December 31, 2017

Dividend per share
Third quarter-end
Yen-

25.00

-(forecast)Year-end

Annual

Yen

Yen

30.00

50.00

30.00

55.00

[Note] Revision of cash dividend forecast for this period : Yes

3.Consolidated financial forecast for the fiscal year ending December 31, 2017Net sales
Full year

Millions of yen[Note] Revision of forecast for this period : Yes

641,000%

1.9(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)

Operating income

Ordinary income

Millions of yen

Millions of yen

29,800-1-%

7.7

30,600%

6.6

Profit attributableto owners of parent
Millions of yen%

20,000 10.1

Basic earnings
per shareYen

154.24

* 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 :None( ii ) Changes in accounting policies other than ( i ) :None( iv ) Retrospective restatement :None( iii ) Changes in accounting estimates :None(4) Number of issued and outstanding shares (common stock)(i)

Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
As of September 30, 2017 :As of December 31, 2016 :( ii )

151,079,972

Number of treasury stock at the end of the period
As of September 30, 2017 :As of December 31, 2016 :( iii )

151,079,972

Average number of shares

As of September 30, 2017 :As of September 30, 2016 :21,410,602
21,409,021

129,670,167
129,671,854*This report is not subject to quarterly review procedures based on the Financial Instruments and Exchange Act.
Disclaimer :Earnings projections are based on information available at the time these materials were announced, and the Company
cannot guarantee that they will be realized. Also, actual results may differ from the estimated figures given due tovarious factors.

-2-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2016

As of September 30, 2017

AssetsCurrent assets

Cash and deposits

76,78572,739Notes and accounts receivable-trade124,475

106,213

Merchandise and finished goods

28,27031,910875

765Securities

30,500Work in process

30,500834

Raw materials and supplies
Deferred tax assets

926

4,214

Short-term loans receivable
Other

4,200

90,044

120,034

(121)

(107)

6,263

Allowance for doubtful accounts
Total current assets

6,944

362,141

374,126

Buildings and structures, net

47,42531,280Tools, furniture and fixtures, net

3,963

3,699

Non-current assets

Property, plant and equipment

Machinery, equipment and vehicles, net

147

Rental assets, net

261

10,574Land

10,56334,364

Leased assets, net

226Construction in progress

29,610-135
67

Total property, plant and equipment

96,701

Software

6,443

5,478

Right of using facilities

317

317

Total intangible assets

6,819

5,843

Investment securities

7,422

8,086

Intangible assets

Leased assets

53

Other424

Investments and other assets
Long-term loans receivable

10

Net defined benefit asset
Deferred tax assets

17,668

Other

2,483

Total investments and other assets

32,064

Guarantee deposits

4-

4,824

Allowance for doubtful accounts(344)

Total non-current assets

135,585

Total assets

497,727-3-

75,6189355

18,024
5,137
2,404

(322)

33,696

115,158

489,284

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2016

As of September 30, 2017

Liabilities

Current liabilities

Notes and accounts payable-trade102,662

87,755

Accrued expenses

18,96814,263

Lease obligations

175

Income taxes payable

4,689

Accrued consumption taxes

4,296

Provision for bonuses

Provision for directors' bonuses

Provision for loss on order received
Total current liabilities

Non-current liabilities
Lease obligations

Deferred tax liabilities

461

472

22,086

19,978

206

183

961

Net defined benefit liability

53,568Other4,675

Total non-current liabilities

59,841

Total liabilities

216,808

Net assets

Shareholders' equity
Capital stock

73,303

Capital surplus

10143,292

6

Accrued long service rewards for employees

68

156,966

422

Deferred tax liabilities for land revaluation

4,261

13,792

23

Other

2,561

3,473

128

Provision for product warranties

128

82,820443

863

54,2784,744

60,513203,806

73,30382,820Retained earnings

163,363

168,746

Total shareholders' equity

287,571292,951

2,328

2,471

Treasury shares(31,914)

Accumulated other comprehensive income

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(14)

Foreign currency translation adjustment

147

Remeasurements of defined benefit plans

Total accumulated other comprehensive income

Total net assets

98446

464

497,727-4-4(10,512)

280,919

Total liabilities and net assets(31,918)(9,560)(7,099)Non-controlling interests-(7,938)

285,478

489,284

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)

Nine months of FY2016(from January 1, 2016
to September 30, 2016)

Net sales

Nine months of FY2017(from January 1, 2017
to September 30, 2017)453,707

Cost of sales

456,245289,993

Gross profit

Selling, general and administrative expenses

293,665

163,714

162,580

15,84918,409147,864

Operating income

Non-operating income
Interest income

181

124

597

546

1,270

1,145

Dividend income

103

Other386

Insurance income
Total non-operating income

Non-operating expenses
Interest expenses

144,17090384

11Foreign exchange losses

925

Other213

Ordinary income

16,869Total non-operating expenses

26185

250

Extraordinary income

Gain on sales of non-current assets

220

19,334770

Gain on sales of investment securities

864

3539

Total extraordinary income

774

1,467

Loss on sales and retirement of non-current assets

688

825

Other

0

Extraordinary losses
Impairment loss

63

131

Special extra retirement payments-Loss on disaster

22

Other

123

Total extraordinary losses

965

792

100
23

1,740

Profit before income taxes

16,67819,060

Profit10,012

12,507

Profit attributable to owners of parent

9,994

12,515

Income taxes

6,666

Profit (loss) attributable to non-controlling interests

17-5--

6,553(8)

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)

Nine months of FY2016(from January 1, 2016
to September 30, 2016)

Profit10,012Other comprehensive income

Valuation difference on available-for-sale-securities(672)

Deferred gains or losses on hedges(22)

Foreign currency translation adjustment(198)

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

Comprehensive income attributable toComprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

143

19(61)(952)

10,504

11,656

10,482

11,67621-6-

12,507

1,385

491

Comprehensive income

Nine months of FY2017(from January 1, 2017
to September 30, 2017)

(851)

(20)

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)

Nine months of FY2016(from January 1, 2016
to September 30, 2016)

Cash flows from operating activities
Profit before income taxes
Depreciation

Nine months of FY2017(from January 1, 2017
to September 30, 2017)

16,67819,060131

792

11,172

Impairment loss

Amortization of goodwill

172

Increase (decrease) in net defined benefit liability(946)

Increase (decrease) in allowance for doubtful accounts(40)

Decrease (increase) in net defined benefit asset-Increase (decrease) in provision for bonuses

10,344

Interest and dividend income(285)Interest expenses

11

Loss (gain) on sales and retirement of property, plant and equipment(103)

Loss (gain) on sales of investment securities(3)

10,676
-(36)

(838)

(190)

10,318

(214)
9(41)

(539)

Decrease (increase) in notes and accounts receivable-trade

26,911

18,314Increase (decrease) in notes and accounts payable-trade(19,514)(14,991)

Subtotal

33,12230,971

Decrease (increase) in inventories(449)

Other, net(10,955)

Interest and dividends income received

293

Interest expenses paid

(14)

Income taxes paid

(10,921)

Net cash provided by (used in) operating activities

22,480Cash flows from investing activities

Purchase of property, plant and equipment(8,761)

Purchase of intangible assets(1,016)

Proceeds from sales of property, plant and equipment(3,640)(7,705)214(9)(8,819)22,357(8,231)

2,190

19,988

(449)

(726)

Net decrease (increase) in short-term loans receivable(39,989)(29,989)

Net cash provided by (used in) investing activities(47,796)(19,277)

(185)

(153)

(5,837)(7,133)-49

Purchase of investment securities

Proceeds from sales of investment securities

21

Other, net

208

Cash flows from financing activities

Repayments of finance lease obligations
Purchase of treasury shares(1)

Cash dividends paid

Dividends paid to non-controlling shareholders(10)

Proceeds from share issuance to non-controlling shareholders
Other, net-Net cash provided by (used in) financing activities(6,035)

Effect of exchange rate change on cash and cash equivalents(176)

Net increase (decrease) in cash and cash equivalents(31,528)

Cash and cash equivalents at end of period

68,045

Cash and cash equivalents at beginning of period

99,573-7-(897)
822

(242)

(4)

(12)

146

(7,107)(19)(4,046)107,285

103,239

Consolidated Quarterly Segment Information
I. Nine months of FY2016 (from January 1, 2016 to September 30, 2016)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions

Net sales

Sales - external customers

247,718

Total

247,718

Sales - intersegment
Operating income[Note]-

8,103

ITSolutions

ImagingSystem

78,276103,113

97,587103,113

19,311
2,947(Amounts less than one million yen are truncated)Industrial /Medical-3,489

24,578Other
19-

24,578
848

Total

19-

461

Adjustment Consolidated

453,707-453,707(19,311)453,707

19,311(19,311)

15,849-473,018-

15,849

1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Operating income" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."
II. Nine months of FY2017 (from January 1, 2017 to September 30, 2017)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions

Net sales

Sales - external customers

252,234

Total

252,234

Sales - intersegment
Operating income[Note]

8,513-IT
Solutions

ImagingSystem

78,342

99,567

98,36399,56720,021
3,240(Amounts less than one million yen are truncated)Industrial /Medical-

4,949

26,077

Other-

26,077
1,416Total2424290-

Adjustment Consolidated

456,245-456,245(20,021)456,245

20,021(20,021)

18,409-476,266

18,409

1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Operating income" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."*NOTE*Canon Biz Attenda Inc. and A&A Co., Ltd. , which were previously included in "IT Solutions" segment, are included in"Business Solutions" segment and Canon ITS Medical Inc., which was previously included in "IT Solutions" segment, isincluded in "Industrial / Medical" segment starting from the current fiscal year. The segment information for the previous
fiscal year is disclosed after reclassifying the figures in accordance with the new reportable segments mentioned above.

-8--