July 27, 2020

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2020
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:

August 27, 2020
No

1.Consolidated business results for the six months ended June 30, 2020 (From January 1, 2020 to June 30, 2020)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)

Net sales(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent
Millions of yen%
Millions of yen%
Millions of yen%

Millions of yen%

June 30, 2020

262,593(13.3)

13,140(2.1)

16,653

16.1

9,963

5.6

June 30, 2019

302,856

0.8

13,41838.8

14,348

30.5

9,436

26.9

Six months ended[Note] Comprehensive Income:Six months ended June 30, 2020 : 10,762 million yen [(11.1%)]
Six months ended June 30, 2019 : 12,099 million yen [43.7%]
Basic earnings
per share

Diluted earnings
per share
Yen

Yen

June 30, 2020

76.84

76.83

June 30, 2019

72.78

72.77

Six months ended(2) Consolidated Financial Position
Total assets(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Net assets

Millions of yen

Millions of yen%

Yen

Second quarter ended June 30, 2020

477,290

331,94169.4

2,554.91

Year ended December 31, 2019503,698

325,09264.4

2,502.39[Reference] Shareholders' equity:

Second quarter ended June 30, 2020 : 331,290 million yen
Year ended December 31, 2019 : 324,475 million yen

2.Dividends
Dividend per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen
Year ended December 31, 2019-

30.00

Year ending December 31, 2020-

20.00

Year ending December 31, 2020

Year-end--(forecast)

Annual
Yen

Yen

30.00

60.00

Yen

Yen

20.00

40.00

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

3.Consolidated financial forecast for the fiscal year ending December 31, 2020(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Operating income
Ordinary income
to owners of parent
per share

Net sales

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

Millions of yen%

Millions of yen%

Millions of yen%

532,000(14.4)

21,000(35.3)

24,700(27.2)[Note] Revision of forecast for this period : Yes-1-

Millions of yen%
14,600 (34.4)

Yen

112.60*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( 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)131,079,972
As of June 30, 2020 :As of December 31, 2019 :

151,079,972( ii ) Number of treasury stock at the end of the period
1,412,097
As of June 30, 2020 :As of December 31, 2019 :

21,413,743( iii ) Average number of shares
As of June 30, 2020 :

129,666,993

As of June 30, 2019 :

129,666,970* 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, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise 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, netLand
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 June 30, 2020

53,993112,666
500
33,281
206
622
170,012
6,197(75)377,403

60,876
81,357500
29,376140586
170,011
10,482(70)
353,261

26,948
99
3,315
9,403
28,91831
14,09582,81325,879
93
3,123
8,404
28,35921
14,16580,048

4,148
2
315
2
4,469

5,313
1
294
0
5,610

11,03735393
20,792
4,358
2,775
(382)
39,011
126,295
503,698

10,88635388
20,416
4,095
2,925
(379)
38,369124,028
477,290

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2019
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
Allowance for long-term continuous service rewards
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Stockholders' equityCommon 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

As of June 30, 2020

51,542
72
17,855
8,235
5,901
3,373
99651
189
32,101
120,023

35,59660
12,565
6,937
3,928
4,951
31546110
23,17487,902103
1,042
53,956
3,480
58,582
178,606

95
1,104
53,146
3,100
57,447
145,349

73,30382,820202,783(31,926)
326,979

73,30382,814179,040(2,102)333,056

3,929
11
51
(6,497)(2,504)616
325,092
503,698

3,746
(2)
38
(5,549)(1,766)650
331,941
477,290[Note](Note in the event of a notable fluctuation in the amount of stakeholders' equity)(cancellation of treasury stock)
At the Board of Directors meeting held on February 26, 2020, pursuant to the provisions of Article 178 of the Companies Act, theBoard of Directors resolved to cancel treasury stock as follows. As of March 11, 2020, 20,000,000 shares of treasury stock worth 29,822
million yen were cancelled.
As a result, capital surplus fell by 5 million yen, retained earnings fell by 29,816 million yen and treasury stock declined by 29,822
million yen.

-4-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2019(from January 1, 2019
to June 30, 2019)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Gain on investments in partnership
Subsidies for employment adjustment
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on sales of shares of subsidiaries and associates
Loss on valuation of investment securities
Loss on COVID-19
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-

Six months of FY2020(from January 1, 2020
to June 30, 2020)

302,856
206,069
96,786
83,36813,418262,593
175,746
86,84773,707
13,140

93
106
474
161
203
1,038

118
105
450
61
2,748
159
3,642

6102
108
14,34868
114
129
16,653

5
5280
119
20
419

14782157
14,196
4,694
9,501
65
9,436

48
737
211
4
1,001
16,071
6,045
10,02663
9,963

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2019(from January 1, 2019
to June 30, 2019)
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-

Six months of FY2020(from January 1, 2020
to June 30, 2020)

9,501

10,026

539
(2)
(38)
2,100
2,597
12,099(182)
(13)
(15)
948
735
10,762

12,03761

10,70160

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2019(from January 1, 2019
to June 30, 2019)

Six months of FY2020(from January 1, 2020
to June 30, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
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 sales of investment in securities
Loss (gain) on sales of shares of subsidiaries and associates
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

14,196
6,098
(38)
2,239
(7)
868
(200)
6135
(161)
16,244(350)(29,592)
(142)
9,296
197
(6)
(6,208)3,280

16,071
5,754
(1)
1,067
(7)
1,610
(223)
6(236)
(119)
737
(61)
29,175
3,094(14,928)(11,778)
30,162221(6)(7,409)22,968Cash flows from investing activities
Payments for purchases of property, plant and equipment
Proceeds from sales 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(3,954)6(704)(215)
204(11,765)
1,003(2,120)
(248)
272

-

828

(29,998)(204)(34,865)0(55)(12,085)(63)(0)(4,535)(15)(4,615)(22)(36,222)
135,571
99,348(40)(1)(3,890)(26)
0(3,958)(42)
6,882
54,493
61,376

Proceeds from sales of shares of subsidiaries resulting in change inscope of consolidation
Decrease (increase) in short-term loans receivable, net.
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of finance lease obligations
Payments for purchases of treasury stock
Dividends paid
Dividends paid to non-controlling shareholders
Other, net
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-

Consolidated Quarterly Segment Information
I. Six months of FY2019(from January 1, 2019 to June 30, 2019)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
ConsumerEnterprise

57,661

93,858

Area

Professional

Other

Total

Adjustment Consolidated

302,856-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

126,701

22,340

2,294

6,127

873

2,699

14,556(14,556)

132,829

23,213

4,993

317,412(14,556)

302,856

1,263

(92)

13,37542

13,4185

4,850

57,666

98,708(269)

5,501

6,973

302,856-[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. Six months of FY2020 (from January 1, 2020 to June 30, 2020)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
OtherTotal

Adjustment Consolidated

ConsumerEnterprise

50,26681,895

112,403

16,331

1,696

262,593

-

26

4,464

4,814

749

3,184

13,239(13,239)

50,29386,359117,217

17,081

4,881

275,833(13,239)

262,593

1,995

5,185

5,164

1,369(581)

13,133

6

13,140

Area

Professional

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

262,593-[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.

-8-