April 23, 2019

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2019
Registered company name:

Canon Marketing Japan Inc.

Stock listing:Code number:Tokyo Stock Exchange, First Section
8060

URL:

https://cweb.canon.jp/eng/ir

Representative director:

Masahiro Sakata, President

Contact:

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 three months ended March 31, 2019 (From January 1, 2019 to March 31, 2019)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent

Net sales
Three months ended
March 31, 2019
March 31, 2018
[Note] Comprehensive Income:%
0.1

Millions of yen

7,251

%
76.8

Millions of yen

7,016

%
88.8

Millions of yen

150,930

4,780

%
89.0

150,802

(1.3)

3,715

(34.4)

4,101(28.8)

2,529(36.6)

Millions of yen

Three months ended March 31, 2019 : 6,830 million yen [142.8%]Three months ended March 31, 2018 : 2,813 million yen [(22.8%)]

Three months ended

Basic earnings
per share
Yen

March 31, 2019

36.87

March 31, 2018

19.50

Diluted earnings
per shareYen
36.86-(2) Consolidated Financial Position
Total assets
First quarter ended March 31, 2019

Millions of yen
492,965

Millions of yen
304,849

498,790

303,570

Year ended December 31, 2018
[Reference] Shareholders' equity:(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Net assets

%61.7

Yen
2,346.56

60.8

2,336.97

First quarter ended March 31, 2019 : 304,270 million yen
Year ended December 31, 2018 : 303,027 million yen

2.Dividends
Dividend per shareFirst quarter-end
Year ended December 31, 2018

Yen
-Year ending December 31, 2019-

Second quarter-end Third quarter-end
Yen
25.00

Year ending December 31, 2019---

(forecast)Year-end

Yen

Annual

Yen

Yen

35.00

60.00

-60.00[Note] Revision of cash dividend forecast for this period : None
[Note] Interim dividend for the fiscal year ending December 31, 2019 is unfixed because consolidated financial forecast for the six months fromJanuary 1, 2019 to June 30, 2019 is not fixed. The Year-end dividend for the fiscal year ending December 31, 2019 is equal to the balance ofannual dividend and interim dividend.

3.Consolidated financial forecast for the fiscal year ending December 31, 2019

Net sales% Millions of yen
622,000 0.1
29,500Millions of yen

Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Operating income Ordinary income
to owners of parent
per share[Note] Revision of forecast for this period : None-1-% Millions of yen %30,700 0.6

1.9%
20,900 0.4

Millions of yenYen

161.18

*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 the period (including treasury stock)
151,079,972
As of March 31, 2019 :As of December 31, 2018 :

151,079,972( ii ) Number of treasury stock at the end of the period
21,412,895
As of March 31, 2019 :As of December 31, 2018 :

21,412,840( iii ) Average number of shares
As of March 31, 2019 :

129,667,095

As of March 31, 2018 :

129,668,126* Audits by CPAs or audit corporations are not required for quarterly financial results.
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.

-2-

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
SecuritiesMerchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other current assets
Allowance for doubtful receivables
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Rental assets, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareLease assets
Utilization rights
Other intangible assets
Total intangible assets
Investments and other assets
Investment in securities
Long-term loans receivable
Net defined benefit assets
Deferred tax assets
Lease deposits
Other investments and other assets
Allowance for doubtful receivables
Total investments and other assets
Total non-current assets
Total assets-3-

As of March 31, 2019

65,071
117,041
70,50031,182
1,191
647
90,014
7,792(91)
383,349

70,102
110,674
5,500
34,390128
643
150,0147,150(98)378,505

28,657112
3,059
10,842
28,91863
333
71,98728,211
109
3,112
10,12828,91847360
70,888

4,940
5
316
2
5,265

4,892
33152
5,214

7,985
36
304
23,0394,423
2,832(432)38,188
115,441
498,790

9,014
35
302
22,127
4,412
2,863(400)38,356
114,459
492,965

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2018
Liabilities
Current liabilities
Notes and accounts payable
Lease obligations
Accrued expenses
Accrued income taxes
Consumption taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other current liabilities
Total current liabilities
Long-term liabilities
Lease obligations
Deferred tax liabilities
Allowance for long-term continuous service rewards
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Stockholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders' equity
Accumulated other comprehensive income (loss)
Net unrealized gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income (loss)
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

As of March 31, 201975,831
100
16,676
6,967
4,063
3,437
79
447
147
22,151
129,90369,50791
15,7572,500
3,592
12,29113448
19,846124,049

116
29
1,019
59,887
4,264
65,317
195,220

120
1
1,118
59,156
3,669
64,065
188,115

73,30382,820189,957(31,924)
314,156

73,30382,820189,203(31,924)
313,401

2,518
175(13,725)(11,129)542
303,570
498,7903,226874(12,439)(9,130)579
304,849
492,965

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2018(from January 1, 2018
to March 31, 2018)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on investments in partnership
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary incomeGain on sales of fixed assets
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on impairment of fixed assets
Loss on valuation of investment securities
Expenses for restructuring of business bases
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

Three months of FY2019(from January 1, 2019
to March 31, 2019)

150,802
98,81951,98348,267
3,715

150,930
102,233
48,696
41,6807,016

4025218
175
460

4225
141
95
304

2
71
74
4,101

2
65
68
7,251

118
118

2251
190
47
7
198
4,021
1,474
2,546
17
2,529

29
6
1
38
7,216
2,384
4,831
51
4,780

* Starting from the first quarter of the current fiscal year, the Company recorded a portion of personnel expenses and others, which had
previously been posted as selling expenses, as the cost of sales. This is because the Company changed the aggregation range of costs asa result of examining the positioning of costs for the performance obligation of services, which has been increasingly important in recentyears in the wake of the early adoption of the Accounting Standard for Revenue Recognition in the first quarter of the current fiscalyear. Compared with the previous method, this change caused an increase of 4,866 million yen in the cost of sales and a decrease ingross profit by the same amount in the first quarter of the current fiscal year. There is no impact on operating income, ordinary income
and profit before income taxes.

-5-Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2018(from January 1, 2018
to March 31, 2018)
ProfitOther comprehensive income (loss)
Net unrealized gains or losses on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable toOwners of parent
Non-controlling interests-6-

Three months of FY2019(from January 1, 2019
to March 31, 2019)

2,546

4,831

122(42)
(65)
252
266
2,813

707
6(0)
1,286
1,999
6,830

2,804
96,77852

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Three months of FY2018(from January 1, 2018
to March 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on Impairment of fixed assets
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expense
Loss (gain) on sales and disposal of property, plant and equipment, net
Loss (gain) on investments in partnership
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchases of property, plant and equipment
Payments for purchases of intangible assets
Payments for purchases of investment in securities
Proceeds from sales of investments in securities
Decrease (increase) in short-term loans receivable, net.
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable, net
Repayments of finance lease obligations
Payments for purchases of treasury stock
Dividends paid
Dividends paid to non-controlling shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-7-

Three months of FY2019(from January 1, 2019
to March 31, 2019)

4,021
3,305
1148
303
(16)
9,201
(66)
2(67)
(218)
13,944(4,591)(12,704)(8,534)
4,729
65
(2)
(4,886)
(94)

7,216
3,049
(25)
1,139
(4)
8,853
(67)
221(141)
6,930(2,861)(6,327)(5,219)12,56667(2)(6,213)6,417(2,363)(397)(614)
12(29,996)
207(33,151)(1,338)
(517)
(5)
168
(60,000)(114)(61,809)45(32)(1)(4,539)(11)(4,539)(61)(37,847)
136,979
99,132(33)(0)(4,539)(15)(4,588)
11(59,969)
135,571
75,602

Consolidated Quarterly Segment Information
I. Three months of FY2018 (from January 1, 2018 to March 31, 2018)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
ConsumerEnterprise

26,80745,088

Area

Professional

Other

Total

Adjustment Consolidated

150,802-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

63,451

14,614

840

3,351

416

1,246

7,114

(7,114)66,802

15,031

2,087

157,917(7,114)

150,802

803

151

3,705

10

3,715

15

2,085

26,822

47,174(2,148)

2,208

2,690

150,802-[Note]
1. Other includes call center business and BPO service business, which are not inluded in reportable segments.
2. Adjustment of Operating income (loss) is the elimination of intersegment transactions.
3. Total amount of Operating income (loss) for Reportable segments, Other and Adjustment is equal to the Operating income of Consolidated
Quarterly Statements of Income.

II. Three months of FY2019 (from January 1, 2019 to March 31, 2019)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
Other

Total

Adjustment Consolidated

ConsumerEnterprise

25,89047,42064,586

11,677

1,355

150,930

-

16

2,474

3,022

482

1,325

7,320

(7,320)25,90749,89467,608

12,1602,680

158,251(7,320)150,930(1,286)

3,517

3,783

800

188

7,003

12

7,016

Area

Professional

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

150,930-[Note]
1. Other includes call center business and BPO service business, which are not inluded in reportable segments.
2. Adjustment of Operating income (loss) is the elimination of intersegment transactions.
3. Total amount of Operating income (loss) for Reportable segments, Other and Adjustment is equal to the Operating income of Consolidated
Quarterly Statements of Income.

*NOTE*(Changes in Reporting Segments)
Starting from the first quarter of the current year, the Company transferred “Visual Solutions,” which was a subsegment of the “Professional”
segment, to the “Enterprise” and “Area” segments. In addition, the amount of intersegment transactions changed because the Company
consolidated the planning and development functions of the security business, which were scattered across group companies, into the business
units with marketing oversight at Canon Marketing Japan.
Prior-year first-quarter segment information has been restated accordingly to reflect these changes.
(Changes in Accounting Policy)
Starting from the beginning of the first quarter of the current year, the Company applied the revenue recognition accounting standard andguidance and since the Company changed its accounting methods for revenue recognition, it also changed its measurement methods for thesegment income or loss of its business segments accordingly.
Compared to the previous method, in the first quarter of the current year, this change caused a decrease of 131 million yen in net sales and anincrease of 83 million yen in segment income in the “Consumers” segment, a decrease of 249 million yen in net sales and a decrease of 26
million yen in segment income in the “Enterprise” segment, a decrease of 129 million yen in net sales and a decrease of 52 million yen insegment income in the “Area” segment, a decrease of 13 million yen in net sales and a decrease of 3 million yen in segment income in the“Professional” segment, and a decrease of 19 million yen in net sales and a decrease of 1 million yen in segment income in the “Other”
segment.

-8-