April 21, 2015

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2015

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
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, 2015 (From January 1, 2015 to March 31, 2015)(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

Net income

Millions of yen%

Millions of yen%

Millions of yen%March 31, 2015

155,370(15.0)

3,469(62.4)

3,753(59.9)

1,848(67.6)March 31, 2014

182,69721.6

9,231-

9,369-

5,707-[Note] Comprehensive Income:Millions of yen%

Three months ended March 31, 2015 : 2,268 million yen [(59.8)%]
Three months ended March 31, 2014 : 5,636million yen [829.0%]
Net income
per share

Diluted net income
per share
Yen

Yen

March 31, 2015

14.26

-

March 31, 2014

44.01

-

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, 2015

464,081266,704

57.4

2,054.51

Year ended December 31, 2014

479,747

270,35256.3

2,082.60[Reference] Shareholders' equity:

First quarter ended March 31, 2015 : 266,417 million yen
Year ended December 31, 2014 : 270,061 million yen

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

Yen

YenYenYenYen

Year ended December 31, 2014

-

15.00

-

25.00

40.00

Year ending December 31, 2015

20.00

-

20.00

40.00

Year ending December 31, 2015
(forecast)[Note] Revision of cash dividend forecast for this period : None

3.Consolidated financial forecast for the fiscal year ending December 31, 2015

(Percentage represents increases or decreases from the previous year)
Net income
Operating incomeOrdinary income
Net income
per share

Net sales

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

Millions of yen%

Millions of yen%

Millions of yen%

681,000

3.3

26,000

3.6

27,2002.4[Note] Revision of forecast for this period : None-1-%

Yen

16,900 5.4

130.33

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 :NoneYes(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 ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :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 March 31, 2015 :

151,079,972

As of December 31, 2014 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of March 31, 2015 :

21,405,454

As of December 31, 2014 :

21,404,708( iii ) Average number of shares*

As of March 31, 2015 :

129,674,890

As of March 31, 2014 :

129,679,259

Because of a change in the accounting policy, the calculation of retirement benefit obligations and service costs was modified,effective from the current term. As a result, the net defined benefit liability at the beginning of the first quarter increased by
4,062 million yen, while the retained earnings decreased by 2,662 million yen. The impact on the operating profit, ordinary
profit, and profit before income taxes for the current first quarter will be minimal.

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, 2014

As of March 31, 2015

AssetsCurrent assets
Cash and deposits

36,107

12,937

Notes and accounts receivable-trade

128,473

111,319

Securities

84,500104,700

Merchandise and finished goods

26,471

29,941

488

798

Work in process
Raw materials and supplies

855

859

Deferred tax assets

4,860

4,853

Short-term loans receivable

50,05450,054

Other

7,899

6,903

Allowance for doubtful accounts

(113)

(88)

339,596322,279

48,152

48,356

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

99

4,374

4,489

Rental assets, net

10,637

10,181

Land36,30136,263

Tools, furniture and fixtures, net

Leased assets, net

584

524

100,059

99,823

Goodwill

1,090

1,033

Software

9,362

9,331

Leased assets

116

105

Right of using facilities

317

317

Other

20

17

10,906

10,806

6,292

7,029

Total property, plant and equipment
Intangible assets

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

1111

Deferred tax assets

15,04016,356

Guarantee deposits

5,338

5,309

Other

2,859

2,780

Allowance for doubtful accounts

(357)

(316)

Total investments and other assets

29,184

31,171

140,151

141,802479,747

464,081

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2014

As of March 31, 2015

Liabilities
Current liabilities
Notes and accounts payable-trade

101,337

93,432

Lease obligations

343

289

Accrued expenses

24,115

20,136

Income taxes payable

5,918

1,650

Accrued consumption taxes

7,619

3,068

Provision for bonuses

3,346

12,264

Provision for directors' bonuses

119

41

Provision for product warranties

679

661

Provision for loss on order received

21

11

Other

21,27017,511

Total current liabilities

164,770

149,067

Lease obligations

445

412

Deferred tax liabilities

540

540

Deferred tax liabilities for land revaluation29

29

Accrued long service rewards for employees

997

1,044

Net defined benefit liability

37,862

41,764

Other

4,748

4,519

Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

44,62348,310209,394

197,377

73,30373,303

Net assets
Shareholders' equity
Capital stock
Capital surplus

82,81982,819

Retained earnings

143,864

139,808

Treasury shares(31,905)(31,907)

Total shareholders' equity

268,082

264,024

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,704

Deferred gains or losses on hedges

2,218
-

Foreign currency translation adjustment

272

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-4-

4276

1(107)

1,978

2,392

291

287

270,352

266,704

479,747

464,081

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2014(from January 1, 2014
to March 31, 2014)

Three months of FY2015(from January 1, 2015
to March 31, 2015)

Net sales

182,697

155,370

Cost of sales

121,651

101,063

Gross profit

61,04654,307

Selling, general and administrative expenses

51,81450,837

Operating income

9,231

3,469

6461

Non-operating income
Interest income
Dividend income

1426

Other155

309

Total non-operating income

234

397

Interest expenses

97

Share of loss of entities accounted for using equity method

3Non-operating expenses

Foreign exchange losses

-

Other

82

Total non-operating expenses
Ordinary income

198696

113

9,369

3,753

Extraordinary income
Gain on sales of non-current assets

2Insurance income on disaster0-

17Gain on sales of investment securities

0

Other0-Total extraordinary income

2183125-

Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on disaster

-

14

Other

81

11

Total extraordinary losses

11351

Income before income taxes and minority interests

9,258

3,719

Income taxes

3,5461,862

Income before minority interests

5,712

1,857

Minority interests in income
Net income

-5-4

8

5,707

1,848

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2014(from January 1, 2014
to March 31, 2014)
Income before minority interests

Three months of FY2015(from January 1, 2015
to March 31, 2015)

5,712

1,857

Other comprehensive income
Valuation difference on available-for-sale-securities

(46)

513

-4(29)

2

Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax-(109)

(76)

411

5,636

2,268

Comprehensive income attributable to owners of parent

5,630

2,262

Comprehensive income attributable to minority interests

56

Total 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 FY2014(from January 1, 2014
to March 31, 2014)

Three months of FY2015(from January 1, 2015
to March 31, 2015)

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

9,258

3,719

Depreciation

4,209

4,006

Amortization of goodwill

3461

Increase (decrease) in allowance for doubtful accounts

(12)

(65)

Increase (decrease) in provision for retirement benefits

(199)

--

(321)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses
Interest and dividend income

9,282

8,917

(79)

(88)

Interest expenses

97

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

2624

Decrease (increase) in notes and accounts receivable-trade

3,079

17,255Decrease (increase) in inventories(5,592)(3,782)

Increase (decrease) in notes and accounts payable-trade

6,128(7,905)

Other, net(7,584)(12,192)

Subtotal

18,562

9,637Interest and dividends income received

7888

Interest expenses paid

(9)

(7)

Income taxes paid

(2,842)(6,244)

Net cash provided by (used in) operating activities

15,7893,474

Cash flows from investing activities(1,838)(1,819)Purchase of intangible assets

Purchase of property, plant and equipment(651)(1,125)Purchase of investment securities

(32)

(69)

Proceeds from sales of investment securities

10

Net decrease (increase) in time deposits

100-

Purchase of shares of subsidiaries

(939)

-00

Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities

61

(46)

(3,298)(3,061)

(123)

(127)

(1)

(1)

Cash flows from financing activities
Repayments of finance lease obligations
Purchase of treasury shares
Cash dividends paid

(1,557)(3,242)

Cash dividends paid to minority shareholders

(12)

(10)

Other, net(4)-(1,699)(3,382)(1)(0)

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

10,790(2,969)Cash and cash equivalents at beginning of period

102,182

120,607

Cash and cash equivalents at end of period

112,973

117,637-7-

Consolidated Quarterly Segment Information
I. Three months of FY2014 (from January 1, 2014 to March 31, 2014)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System33,171

47,985

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

92,215-

Sales - intersegment

10,636

9,312
-

13-

-

182,697-

10,636(10,636)

182,697-

Total

92,21543,80747,9859,312

13193,333(10,636)

182,697

Operating income

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.
II. Three months of FY2015 (from January 1, 2015 to March 31, 2015)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

ImagingSystem

Industrial /Medical

28,542

34,542

7,324

Other

Total

Adjustment Consolidated

155,370-Net sales
Sales - external customers

84,954-

Sales - intersegment
Total
Operating income (loss)

7,717

-

6-

-

155,370

7,717(7,717)

84,95436,26034,5427,324

6163,088(7,717)

155,3702,676

989(418)

115

106

3,469

-

3,469

[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.

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