Canon Marketing Japan Inc.
January 27, 2009

Summary Report of Consolidated Financial Results
For the fiscal year ended December 31, 2008
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
Haruo Murase, President and CEO
Masami Kawasaki,
Telephone:Tokyo Stock Exchange,
First Section
Tokyo+81-3-6719-9071

Senior Managing Director,
Head of Administrative Department

U.S. Accounting Standards Applied:No

1. Business Performance (From January 1, 2008 to December 31, 2008)(1) Results of Operations

Years ended Dec. 31

Full term 2008
Full term 2007

Years ended Dec. 31

Full term 2008
Full term 2007

Years ended Dec. 31

Full term 2008
Full term 2007

Net Sales¥827,486¥905,136

Percentage
Change(8.6)%+4.4 %(Millions of yen truncated to the nearest million, %)Operating
Percentage
Ordinary
Percentage
IncomeChangeIncomeChange¥25,415(31.1)%¥25,943(29.7)%¥36,886+8.7 %¥36,895+8.5 %Net Income¥11,185¥20,033

Percentage
Change(44.2)%+6.5 %Net Incomeper Share(Yen)¥78.63¥134.84ReturnOn Equity

Return on
AssetsOperatingincome ratio(Net Income)(OrdinaryIncome)

4.3%
7.6%

5.1%
7.0%

Diluted Net
Income perShare-3.1%
4.1%(2) Financial Position

Total Assets
Years ended Dec. 31(Millions of yen truncated to the nearest million, %)Stockholders’
Total Net Assets
Stockholders’Equity per Share
Equity Ratio(Yen)¥259,043
52.6%¥1,858.39¥269,568
50.6%¥1,817.59

Full term 2008
¥484,936
Full term 2007
¥526,124
NoteNet assets
Full term 2008:155,220millions of yen/

Full term 2007266,086 millions of yen(3) Cash Flows

Years ended Dec. 31
Full term 2008
Full term 2007

Net Cash
Provided byOperating Activities¥ 41,122¥ 47,214(Millions of yen truncated to the nearest million)
Net Cash Used in
Net Cash Used in
Cash and CashInvesting
FinancingEquivalents atActivities
Activities
End of Period¥(28,967)¥(21,738)¥107,588¥(21,911)¥(16,344)¥117,206

Canon Marketing Japan Inc.

2. Dividends
Dividend per share

The end ofInterim
Full term 2007
¥18.00
Full term 2008
¥20.00
Full term 2009（Target）

The end ofa term
¥18.00¥20.00-Annual¥36.00¥40.00-

Total
Dividends for full term
¥5,388 million¥5,619 million

Dividendratio
28.7%
50.9%
-Dividend tototal assets
2.1%
2.2%

The Dividend per share of FY2009 have not decided yet. (As Jan,27, 2009)

3. Earnings Outlook (For the fiscal year ending December 31, 2009)
Net Sales

Operating
IncomeFull term 2008
¥814,000¥21,000
Percentage Change(1.6)%(17.4)%
We don’t have Earnings Outlook for the 1st half of FY 2009.

(Millions of yen truncated to the nearest million, %)OrdinaryNet IncomeNet Income
Incomeper share(yen)¥23,000¥10,000¥72.82(11.3)%(5.2)%

4. Notes(1) Significant changes in subsidiaries during the periodNo(2) 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.
(ii) Changes other than (i)YesNo(3) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
Full term 2008
151,079,972 shares
Full term 2007
151,079,972shares(ii) Number of treasury stocks at the end of the period
Full term 2008
13,745,742 shares
Full term 2007
4,684,846 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.

Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of December 31, 2008 and 2007
(Millions of yen truncated to the nearest million)

ASSETS

December 31, December 31,2008
2007

ChangeCurrent assets:
Cash and cash deposit
Notes and accounts receivable
Marketable securities
Inventories
Deferred tax assets
Short-term loans receivable
Other current assets
Allowance for doubtful receivables\24,501
149,548
88,09634,143
5,388
20,0006,473(460)\41,014
189,551
86,491
37,691
6,056
8,158
(310)

\(16,512)(40,003)
1,604(3,548)(667)
20,000(1,685)(149)

327,692

368,653(40,960)

44,105
30
4,455
7,659
41,73945,492
54
5,011
7,236
41,865(1,387)
(24)
(555)
423
(126)

97,98999,659(1,670)2,925
15,598
389
116

3,772
9,396
393
44(846)
6,201
(4)
71

19,02813,606

5,422

6,420
25
20,326
8,791
5,829(1,168)12,36929
19,262
8,627
4,936(1,020)(5,949)
(3)
1,064
164
893
(148)

40,22544,205(3,979)157,243\484,936

157,471\526,124(227)\(41,188)

Property and equipment:
Buildings and structures
Machinery and vehicles
Furniture and fixtures
Rental assets
Land

Intangible assets:
Goodwill
SoftwareUtilization rights
Other assets

Investments and other assets:
Investments in securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other investments
Allowance for doubtful receivables

Total fixed assets

Total assets

Consolidated Balance Shhets

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

LIABILITIES AND NET ASSETS

December 31, December 31,
2008
2007

ChangeCurrent liabilities:
Notes and accounts payable
Short-term bank loans
Accrued expenses
Accrued income taxes
Accrued consumption taxes payable
Deferred tax liabilities
Reserves
Other current liabilities

123,896
28,137
6,085
2,280
74,59518,736

148,329343
30,167
8,6823,360
12
5,386
17,677(24,433)(343)(2,029)(2,597)(1,079)
(4)
(790)
1,058

183,739

213,959(30,216)

279
37,122
804
937
3,010

130
338
38,577
738
2,812

(130)
(58)
(1,455)66
937
197

42,153225,893

42,597
256,556(443)(30,663)

73,303
83,289123,616(24,730)

73,303
83,296
118,527(9,694)(6)
5,088(15,036)

255,477

265,432(9,954)

(212)
(45)

639
14

(852)
(59)

(257)
3,822
259,043484,936654
3,481
269,568
526,124(911)
341(10,525)(41,188)

Long-term liabilities:
Long-term bank loans
Deferred tax liabilities
Liability for employees’ retirement benefits
Liability for directors’ and corporate auditors’ retirement benef
Negative Goodwill
Other long-term liabilities

Total liabilities
Stockholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock

Valuation and translation adjustments
Net unrealized gain on available-for-sale securities
Foreign currency translation adjustments

Minority interests
Total net assets

Total liabilities and net assets

Consolidated Balance Shhets

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the Full term ended December 31, 2008 and 2007
From January 1, 2007 to December 31, 2008
(Millions of yen truncated to the nearest million, %)Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income:Interest and dividend income
Amortization of negative goodwill
OthersOther expenses:
Interest expense
Loss on disposal and devaluation of inventories
OthersOrdinary income
Extraordinary gains:
Gain on sales of fixed assets
Gain on sales of investments in securities
Gain on sales of affiliate companies
OthersExtraordinary losses:
Loss on sales and disposal of fixed assets
Loss due to impairment
Loss on revaluation of investments in securities
Provision of liability for deferment continuous service’s reword
Expenses related to relocation of restructuring of consolidated
subsidiaries
Expenses related to relocation of headquarters of affiliatedcompanies
Expenses related to changing in business nameLoss on revaluation of golf club membership
Loss on sales of affiliate companies
Expenses related to relocation of Warehouse
Loss on change in equity
OthersIncome before income taxes and minority interests
Current income taxes
Deferred income taxes
Minority interests
Net income

Full term 2008
Full term 2006
% of% ofNet Sales
Net Sales\827,486
100.0 \905,136
100.0
554,46767.0 615,389
68.0
273,01933.0 289,746
32.0
247,60329.9 252,860
27.9
25,415
3.1
36,886
4.1
969
1,587
2,557
67
1,613
349
2,029
25,943
00
25
25

0.3

911
61
1,428
2,400

0.3
3.1

66
1,901
423
2,391
36,895

0.0

15805
459
33
1,313

Change\(77,649)(60,922)(16,727)(5,256)(11,470)

0.3

58
(61)
159
156

0.3
4.1

0(287)(74)(362)(10,952)

0.1

(15)
(805)
(459)
(8)
(1,288)

604
144
1,124
929

558
94
1,235
-

46
49
(110)
929

592-

592

142
138
27
36
3,740
22,228
10,336238
468\11,185

20
2
269
226
130
219
2,757
35,452
14,469278
670\20,033

142
117
25(269)
(226)
(130)
(182)
983
(13,223)(4,133)(39)(202)\(8,847)

0.4
2.7
1.2
0.0
0.1
1.4

0.3
3.9
1.6
0.0
0.1
2.2

Consolidated Statements of IncomeCanon Marketing Japan Inc.

Consolidated Statements of Changes in Net Assets
For the Full term ended December 31, 2007 and 2006
(Millions of yen truncated to the nearest million)

Stockholders’ equity

Valuation and translation adjustments Minority
interests
Common Capital Retained Treasury
Total
Valuation
ForeignTotal
currencystock
surplus earnings stock stockholders' difference
valuation
equityontranslation
andavailable- adjustment translation
for-saleadjustment
securities
sTotalnet
assets73,30382,529104,076(1,235)

258,673

1,676

17

1,693

3,100

263,467

Cash dividends--(5,575)-(5,575)----(5,575)

Net income--

20,033-

20,033----

20,033

Stock exchange
Purchases of treasury
stock
Disposition of treasury
stockAcqusition by the parent
company of parent
company stock held byconsoliated subsidiaries
Contributions to employee
walfare pension fund

-

766

-

1,562

2,329

-

-

-

-

2,329

-

-

-

(10,025)(10,025)

-

-

-

-

(10,025)

-

1

-

3

4

-

-

-

-

4-

(1)

-

-

(1)

-

-

-

-

(1)

-

-

(6)

-

(6)

-

-

--

(6)

Other,Net-----(1,036)(2)(1,039)380(658)

Change in the term

-766

14,451(8,458)6,758(1,036)(2)(1,039)

380

6,100

Balance at December 31,2007

73,303

83,296

118,527(9,694)

265,432

639

14

654

3,481

269,568

Balance at December 31,2007

Balance at December 31,2006

73,303

83,296

118,527(9,694)

265,432

639

14654

3,481

269,568

Cash dividends--(6,093)-(6,093)----(6,093)

Net income
Purchases of treasury
stock
Disposition of treasury
stock
Contributions to employeewalfare pension fund--

11,185-

11,185----11,185

Other,Net
Change in the term
Balance at

December 31,2008---(15,066)(15,066)----(15,066)

-

(6)

-

30

23

-

--

-23

-

-

(3)

-

(3)

-

-

--

(3)

-----

(852)

(59)

(911)

341

(570)

-

(6)

5,088

(15,036)(9,954)

(852)

(59)

(911)

341

(10,525)

73,303

83,289123,616(24,730)

255,477

(212)

(45)

(257)

3,822

259,043

Consolidated Statements of Change in Net Assets

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Full term ended December 31, 2008 and 2007
(Millions of yen truncated to the nearest million)

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Loss on impairment of fixed assets
Amortization of goodwill (negative goodwill)(Decrease) increase in allowance for doubtful receivables
Reversal of employees’ retirement benefits(Reversal of) provision for directors’ and corporate auditors’
retirement benefits
Interest and dividend income
Interest expense
Loss on sales and disposal of property and equipment, net
Gains on sales of investment in securities
Loss on sales of affiliate companies
Decrease in notes and accounts receivable
Decreasein inventories
Decrease in notes and accounts payable
Other
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Proceeds from sale of investments in securities
Payments for purchases of property and equipment
Payments for purchases of intangible assets
Payments for purchases of investments in securities
Proceeds from sales of investments in securitiesPayments for purchases of investments in subsidiaries
Payments for purchases of investments in subsidiaries
accompanying changes in the scope of consolidation
Proceeds from purchases of investments in subsidiaries
accompanying changes in the scope of consolidation
Proceeds from sale of affiliate companies
Increase in short-term loans receivable
Proceeds from deposit to long-lived time deposit
Payments for deposit to long-term time deposit
Increase in time deposits
OtherNet cash used in investing activities
Cash flows from financing activities:
Decrease in short-term bank loansPayments for purchases of treasury stock
Dividends paid by the Company
Dividends paid to minority interests inOtherNet cash 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

Full term
2008

Full term
2007

Change\22,228
12,059144
833
323(1,515)\35,452
11,968
94
(61)
(251)
(1,658)\(13,223)
90
49
895
574
142

50

(10)

61

(969)
67
577
0
38,7893,577(24,449)
1,452
53,168976(85)(12,937)
41,122(911)
66
424
(805)
(189)
10,79814,606(10,371)
1,256
60,410881(48)(14,028)
47,214

(58)
0
153
805
189
27,990(11,029)(14,078)
195(7,241)
95
(36)
1,091
(6,092)(9,046)(8,579)
(816)
4,075
(18)

220
(7,270)(5,771)
(963)
3,188
(343)

(220)
(1,776)(2,808)
147
886
325

-

(9,439)

9,439

32

-

32

(19,993)
5,300
79(28,967)

4,167(1,000)100(4,995)
195(21,911)(4,167)(19,993)
1,000
10010,295(115)(7,055)(473)(15,066)(6,097)(124)
23(21,738)(34)(9,617)
117,206\107,588(587)(10,019)(5,383)(331)(22)(16,344)
0
8,958
108,247¥117,206

113(5,047)
(713)
207
46
(5,393)(34)(18,576)
8,958\(9,617)

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the Full term ended December 31, 2008 and 2007
(Millions of yen truncated to the nearest million)
Full term 2008
Business Consumer Industrial
TOTAL Corporate Consolidatedand(From January 1 to December Solutions Equipment Equipment
elimination31)

Net sales
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income\495,943 \265,827
495,943 265,827
482,587 255,583\13,356 \10,243\65,715 \827,486
65,715 827,486
63,900 802,071\1,815 \25,415

\(-)
(-)
(-)
(-)

\827,486
827,486
802,071\25,415\208,180
10,478144\86,654
1,012-\48,008 \342,843 \142,092
568
12,059144-\484,936
12,059144

13,702

3,018

AssetsAssetsDepreciation and amortization
Loss on impairment of fixedassets
Capital expenditures

1,060(Millions of yen truncated to the nearest million)
Full term 2007
Business Consumer Industrial(From January 1 to December Solutions Equipment Equipment
31)
Net sales:
Unaffiliated customers¥516,719 \284,375 \104,041
Intersegment
Total
516,719 284,375 104,041
Operating expenses
499,496 270,041
98,712
Operating income\17,223 \14,334\5,32817,781
TOTAL\905,136
905,136868,250\36,886-17,781

Corporate Consolidated
andelimination

(-)
(-)
(-)
\(-)

\905,136
905,136868,250\36,886\80,208 \390,399 \135,725
724
11,96894-\526,124
11,96894

AssetsAssetsDepreciation and amortization
Loss on impairment of fixedassets
Capital expenditures\217,682
10,125
94\92,508
1,118-

9,750

1,939

1,073

12,762-

12,762

Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteris
2.Main Products in Each Segment
Segment
Main Products / Service
Business Solutions
Business-use multifunctional products, print-on-demand (POD) digitalpresses, laser-beam printers, large format ink-jet printers, office-usefacsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, microfilm equipment, computer products,
network equipment, software, service and support, IT service
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

Industrial Equipment

Lithography equipment for semiconductor manufactures and othersemiconductor manufacturing equipment, Lithography equipment for
LCD manufactures, optical metrology equipment, television cameralenses, surveillance camera lenses, medical equipment (digital X-raycameras, ophthalmic equipment, intraocular lenses (IOLs)), high-speed
optical wireless transceiver systems

Consolidated Segment Information