October 24,2011

Summary Report of Consolidated Financial Resultsfor the third quarter ended September 30, 2011

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
Masami Kawasaki, President
Yo Shibasaki, Director Senior Vice President
Tel. +81-3-6719-9071
Scheduled date for commencement of dividend payment:－U.S. Accounting Standards Applied:No
1.Consolidated business results for the nine months ended September 30, 2011 (From January 1, 2011 to September 30, 2011)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the same period of the previous year)
Net sales

Nine months ended

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2011

450,414

△ 8.3

2,580

21.6

4,434

23.9

2,395

708.8

September 30, 2010

491,229

△ 1.1

2,122

△ 48.1

3,578△ 36.4296－%

Diluted net income
per share

Net income
per share
Nine months ended

Millions of yenYen

Yen

September 30, 2011

17.46

－

September 30, 2010

2.12－(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Equity ratio

Total assets

Net assets

Millions of yen

Millions of yen

Net asset per share%

Yen

Third quarter ended September 30, 2011

439,164

246,71856.1

1,795.71

Year ended December 31, 2010

448,592

246,84655.0

1,798.16【Reference】 Shareholders' equity:

Third quarter ended September 30,2011 : 246,344 / Year ended December 31, 2010 : 246,679

2.Dividends
Dividend per share

Dividend per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2010

－

10.00

－

10.00

20.00

Year ending December 31, 2011

－

10.00
10.00

20.00

Year-end

Year ending December 31, 2011
(forecast)

Annual【Note】 Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December31, 2011

Net sales
Millions of yen

Full year

653,000(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net income
Operating incomeOrdinary income
Net income
per share%△ 3.1

Millions of yen%

6,300 △ 18.6

【Note】 Revision of forecast for this period : None-1-

Millions of yen%

8,200 △ 13.5%

Yen△ 3.326.24

Millions of yen

3,600

4.Others(1) Changes in significant subsidiaries during the period :None*This refers to changes in specified subsidiaries resulting in change of scope of consolidation.
(2) Application of a simplified and specified accounting procedure :Yes(3) Changes in accounting principles, procedures and presentation methods, etc. related to the preparation ofconsolidated financial statements :( i ) Changes in accounting policies with revision of accounting standards :Yes( ii ) Changes in accounting policies other than ( i ) :None(4) Number of shares issued (common stock)( i ) Number of shares issued at the end of the period (including treasury stocks)
As of September 30, 2011 :

151,079,972

As of December 31, 2010 :

151,079,972( ii ) Number of treasury stock at the end of the period :As of September 30, 2011 :

13,895,119

As of December 31, 2010 :

13,895,647( iii ) Average number of shares during the period
Nine months ended September 30, 2011 :

137,184,360

Nine months ended September 30, 2010 :

139,665,953

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.

-2-Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2010

As of September 30, 2011

AssetsCurrent assets
Cash and deposits

15,975

18,273

Notes and accounts receivable-trade

118,886

106,003

Short-term investment securities

94,59985,100

Merchandise and finished goods

19,00526,558Work in process

1,115

1,477

Raw materials and supplies

410

712

Deferred tax assets

4,930

4,726

Short-term loans receivable

40,00040,028

Other

7,278

6,568

Allowance for doubtful accounts

(509)

(365)

301,693

289,083

38,73840,749112

Tools, furniture and fixtures, net

3,395

3,626

Rental assets, net

7,073

6,323

Land

35,08336,483

Lease assets, net

1,330

1,377

504

2,655

86,127

91,228

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

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill

1,429

749

Software21,85720,018

Lease assets

55

383

Right of using facilities

288

309

Other

105

89

23,736

21,548

4,133

4,126

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Deferred tax assets for land revaluation

15

24

20,874

21,664－831

Guarantee deposits

8,624

8,255

Other

3,716

2,826

Allowance for doubtful accounts

(329)

(424)

Total investments and other assets
Total noncurrent assets
Total assets-3-37,035

37,304

146,899

150,081448,592

439,164

Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2010

As of September 30, 2011

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable

102,849

91,060－354

Lease obligations

431

610

Accrued expenses

24,38918,363

Income taxes payable

5,055

365

Accrued consumption taxes

2,607

1,303

Provision for bonuses

2,888

11,561

Provision for directors' bonuses

55

41

Provision for product warranties

803

717

Provision for loss on order received

526

713

Other

17,641

19,098

Total current liabilities

157,247

144,190

Bonds payable

－

1,127

Long-term loans payable－

461

Lease obligations

1,069

1,306

Deferred tax liabilities

2,021

3,295

Provision for retirement benefits

Noncurrent liabilities

36,50636,854

Provision for directors' retirement benefits

801

761

Accrued long service rewards for employees

915

821

Other

3,184

3,628

Total noncurrent liabilities

44,49848,255201,745

192,446

Capital stock

73,30373,303

Capital surplus

82,81982,819Total liabilities
Net assets
Shareholders' equity

Retained earnings

112,914

112,564

Treasury stock(22,191)(22,190)

Total shareholders' equity

246,845

246,497

Valuation difference on available- for-sale securities

(47)

(9)

Foreign currency translation adjustments

(118)

(142)

Total valuation and translation adjustments

(165)

(152)

Valuation and translation adjustments

Minority interests
Total net assets
Total liabilities and net assets

-4-

166

373246,846

246,718

448,592

439,164

Consolidated Statements of Income(Amounts less than one million yen are truncated)
Nine months of FY2010(from January 1, 2010
to September 30, 2010)

Nine months of FY2011(from January 1, 2011
to September 30, 2011)

Net sales

491,229

450,414

Cost of sales

325,709291,540

Gross profit

165,520

158,874

Selling, general and administrative expenses

163,397

156,293

2,122

2,580

307

312

Operating income
Non-operating income
Interest income
Dividends income

5566

Insurance income

590

617－475

Gain on bad debts recovered
Other805779

1,759

2,251

Interest expenses

26114

Other277

283

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income

303

398

3,578

4,43401－

2,393

Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill
Gain on sales of investment securities

2110

Gain on transfer of business

400－

Other－0612

2,394

Loss on sales and retirement of noncurrent assets

338

309

Impairment loss

458

204－

979－

1,173

361

298

Total extraordinary income
Extraordinary loss

Loss on disasterLoss on adjustment for changes of accounting standard for asset
retirement obligation
Loss on valuation of investment securities
Other417

406

1,575

3,371

Income before income taxes and minority interests

2,614

3,457

Income taxes

2,239

1,060

Income before minority interests－2,396

Minority interests in income

791

Net income

296

2,395

Total extraordinary losses-5-Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
Nine months of FY2010(from January 1, 2010
to September 30, 2010)

Nine months of FY2011(from January 1, 2011
to September 30, 2011)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

2,614

3,457

Depreciation and amortization

9,981

11,145

Impairment loss

458

204

Amortization of goodwill

677

685

Gain on negative goodwill－(2,393)

Increase (decrease) in allowance for doubtful accounts

(176)

(158)

Increase (decrease) in provision for retirement benefits

45(493)

(97)

(102)

Increase (decrease) in provision for bonuses

7,856

8,637

Interest and dividends income

(362)

(378)

Interest expenses

26114

Loss (gain) on sales and retirement of property, plant and equipment237

246－979(400)－
18,971

Increase (decrease) in provision for directors' retirement benefits

Loss on disaster
Loss (gain) on transfer of business
Decrease (increase) in notes and accounts receivable-trade

23,076

Decrease (increase) in inventories(1,022)(6,552)

Increase (decrease) in notes and accounts payable-trade(13,127)(17,262)

Other, net(3,387)(7,074)

Subtotal

26,40010,027

Interest and dividends income received

375

386

Interest expenses paid

(26)

(114)

Income taxes (paid) refund

2,564(6,637)

Net cash provided by (used in) operating activities

29,313

3,662－

1,000(9,472)(6,737)

Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

534

1,611

(4,110)(2,806)

Purchase of investment securities

(58)

(17)

Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation

515

164－

(290)

Decrease (increase) in short-term loans receivable(0)4

Decrease (increase) in time deposits－1,000

Proceeds from transfer of business

1,776

－

Purchase of intangible assets

Other, net
Net cash provided by (used in) investing activities

874

(588)

(9,939)(6,658)－(103)

(210)

(388)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, netNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(2)

(1)

(2,794)(2,749)

(64)

(64)

1

1(3,069)(3,306)(2)

0Net increase (decrease) in cash and cash equivalents

16,301(6,301)

Cash and cash equivalents at beginning of period

95,575109,575

Cash and cash equivalents at end of period

111,876

103,273-6-Consolidated Segment Information
For the nine months of FY2011 (from January 1, 2011 to September 30, 2011)
Major companies and organizations in each segment
Segment
Business SolutionsIT Solutions

Consumer Imaging

Industrial Equipment

Major companies / organizations
Canon Marketing Japan Inc.
Business Solutions Company
Canon System & Support Inc.
Océ-Japan Corporation
Canon Print Square Inc.
Canon Marketing Japan Inc.
IT Product Promotion Headquarters
Canon MJ IT Group Holdings Inc.
Canon IT Solutions Inc.
Canon Software Inc.
Edifist Learning Inc.
other 9 companies
Canon Marketing Japan Inc.
Consumer Imaging Company
Canon Customer Support Inc.
Canon Field Assist Inc.
WithPhoto Inc.
Canon Marketing Japan Inc.
Industrial Equipment Sales Headquarters
ELK CORPORATION
other 2 companies

Major products in each segment
Major products / servicesSegment

Business Solutions

Business-use multifunctional products, print-on-demand (POD) digital presses,
personal-use plain-paper copiers, laser printers, large format ink-jet printers,
office-use facsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, teleconference system, network cameras, service andsupport

IT Solutions

System integration, embedded software, infrastructure&operation,solution&software products, computer devices, network devices

Consumer Imaging

Digital cameras, interchangeable lenses, digital video cameras, ink-jet printers,compact photo printers, personal-use scanners, electronic dictionaries, calculators

Industrial Equipment

Semiconductor manufacturing equipment, medical equipment (digital X-raycameras, ophthalmic equipment), medical system, healthcare related product,
broadcasting equipment

Information on net sales and income (loss) by reported segment.

(Amounts less than one million yen are truncated)

BusinessSolutions

ITSolutions

Consumer
ImagingIndustrial
Equipment

240,595

72,661

120,793

16,191

172

450,414－450,414－

20,317－－－

20,317(20,317)－240,595

92,979120,793

16,191

172

470,732(20,317)450,414

1,899(2,623)

3,405

36(137)

2,580

－

2,580

Other

Total

Adjustment Consolidated

Net sales
Sales - outside customers
Sales - intersegment
Total
Operating income (loss)-7-