July 25, 2018

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2018

Registered company name:
Stock listing:

Canon Marketing Japan Inc.

Code number:Tokyo Stock Exchange, First Section
8060

Representative director:

Masahiro Sakata, President

URL:

Contact:

Dividend payable date (as planned):
U.S. Accounting Standards Applied:

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

Shiro Hamada, Director Vice President

Tel. +81-3-6719-9071

August 27, 2018
No

1.Consolidated business results for the six months ended June 30, 2018 (From January 1, 2018 to June 30, 2018)(1) Consolidated Results of Operations

Six months ended

June 30, 2018
June 30, 2017

[Note] Comprehensive Income:Six months ended

June 30, 2018

(Amounts less than one million yen are truncated)

Net sales%(1.0)

Millions of yen

300,523
303,657(0.8)(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%
9,664
(11.8)
10,996(7.0)
7,436 (11.2)
10,961

6.3

Basic earnings
per shareYen

Diluted earningsper shareYen

64.59-57.35

Total assets

Year ended December 31, 2017

8,375

26.1

-(2) Consolidated Financial Position[Reference] Shareholders' equity:

5.4

Six months ended June 30, 2017 : 7,397 million yen [(2.2%)]

June 30, 2017

Second quarter ended June 30, 2018

11,829Six months ended June 30, 2018 : 8,421 million yen [13.8%]

Millions of yen
490,157
510,832

Net assets

Millions of yen
301,392(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share%

297,522

Second quarter ended June 30, 2018 : 300,884 million yen

61.4
58.1

Yen
2,320.42
2,290.70

Year ended December 31, 2017 : 297,031 million yen

2.Dividends
First quarter-end
Yen

Year ended December 31, 2017

Year ending December 31, 2018

-Dividend per share

Second quarter-end Third quarter-end
Yen
Yen
25.00
25.00

-

Year ending December 31, 2018
(forecast)Year-end

Yen

Annual

Yen

-

35.00

60.00

-

35.00

60.00

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

3.Consolidated financial forecast for the fiscal year ending December 31, 2018

Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Net sales
Operating income Ordinary income
to owners of parent
per share
Yen
Millions of yen %Millions of yen
Millions of yen %% Millions of yen %625,000 (1.1)
28,500 (6.3)
30,000 (4.7)
20,200 (2.3)
155.78[Note] Revision of forecast for this period : Yes-1-*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( iii ) Changes in accounting estimates :None( ii ) Changes in accounting policies other than ( i ) :( iv ) Retrospective restatement :

None

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 June 30, 2018 :As of December 31, 2017 :

151,079,972( ii ) Number of treasury stock at the end of the period
21,412,112
As of June 30, 2018 :As of December 31, 2017 :( iii ) Average number of shares
As of June 30, 2018 :As of June 30, 2017 :

21,411,513

129,668,003
129,670,401* 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, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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, netRental 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 June 30, 2018

66,479125,626
70,50032,076
958
836
4,062
90,0147,050(98)397,506

66,947105,262
40,50030,528
1,320
656
4,038
120,0199,401(135)
378,538

30,825
251
3,732
11,05829,016116
89
75,09029,850265
3,384
11,60628,92097
16474,289

5,153
12
316
2
5,485

4,672
9
316
3
5,000

9,027
29
404
16,203
4,880
2,532
(327)
32,750113,325
510,832

9,733
31
402
15,293
4,499
2,811
(442)
32,328111,619
490,157

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)As of December 31, 2017

Liabilities
Current liabilities
Notes and accounts payable
Short-term loans 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 June 30, 2018

100,940147
125
18,168
6,289
4,586
3,443
128
487
13222,949
157,398

78,596192
125
15,885
4,784
4,090
5,103
47
466
79
24,450133,822

163
438
961
49,604
4,743
55,911
213,310140
1,012
49,4604,329
54,942
188,765

73,30382,820176,911(31,921)301,11373,30382,820179,809(31,922)304,0103,159
6
98(7,345)(4,081)
490
297,522510,832

3,639
(3)
79
(6,841)(3,126)507
301,392
490,157

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)

Six months of FY2017(from January 1, 2017
to June 30, 2017)

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
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investments in securities
Gain on sales of shares of subsidiaries and associates
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on impairment of fixed assets
Loss on valuation of investments in securities
Special extra retirement payments
Expenses for restructuring of business bases
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes

303,657
195,896
107,760
96,798
10,961

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-

Six months of FY2018(from January 1, 2018
to June 30, 2018)

300,523
195,532
104,991
95,326
9,664

82
87
539
301
1,011

111
111
536
465253
1,477

6137
143
11,8296139
145
10,996

837
467
63
1,368

120
378
214
714

212
5
100
10
328
12,868
4,484
8,384
8
8,375

106
1590
47
16
276
11,434
3,965
7,468
32
7,436

Consolidated Quarterly Statements of Comprehensive Income

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-(Amounts less than one million yen are truncated)

Six months of FY2017(from January 1, 2017
to June 30, 2017)

8,384

Six months of FY2018(from January 1, 2018
to June 30, 2018)

7,468

(1)
0(68)
(918)
(986)
7,397

480
(9)
(22)
504
952
8,421

7,396
08,39228

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on Impairment of fixed assetsIncrease (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 investments in partnership
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, netSubtotal
Interest 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
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
Proceeds from sales of shares of subsidiaries resulting in change
in scope 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
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
Proceeds from share issuance 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-

Six months of FY2017(from January 1, 2017
to June 30, 2017)

Six months of FY2018(from January 1, 2018
to June 30, 2018)

12,868
7,059
(15)
(725)
(174)
1,229
(170)
6(626)(467)
15
26,015
2,193(22,615)(4,173)
20,421169(6)(4,510)16,074

11,434
6,746
15
153
626
(33)
1,668
(222)
6(14)
(377)
(465)
20,116
1,369(22,333)(2,131)
16,558222(6)(5,009)11,765(5,854)
1,990
(600)
(162)
634

(6,358)250(855)(614)
291(29,989)(229)(34,213)(30,005)
77(36,686)(103)(2)(3,886)(12)
49
0(3,955)(34)(22,128)
107,285
85,15745(65)(1)(4,537)(11)
0(4,571)(39)(29,531)
136,979
107,447-526

Consolidated Quarterly Segment Information
I. Six months of FY2017 (from January 1, 2017 to June 30, 2017)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

Consumers

Enterprise

Sales - external customers

70,45884,162

124,598

24,421

Total

70,631

89,175

131,139

25,719Net sales

Sales - intersegment

Operating income (loss)[Note]

173

2,556

5,013

3,580

Area

6,541

5,455

Professional

1,298(958)

OtherTotal

Adjustment Consolidated

17

303,657-

303,657

1,544

318,211(14,554)

303,657

1,527
245

14,554

10,879(14,554)
81-

10,961

1. Other includes call center business and shared 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 FY2018 (from January 1, 2018 to June 30, 2018)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

Consumers

Enterprise

Sales - external customers

60,97588,953

122,933

27,653

Total

61,03094,669129,383

28,963

Net sales

Sales - intersegment

Operating income (loss)[Note]

54(1,107)

5,715

4,847

Area

6,449

6,014

Professional

1,310(214)

OtherTotal

7300,523

1,145

315,192

1,138
112

14,6699,653

Adjustment Consolidated-300,523(14,669)

300,523(14,669)
109,664

1. Other includes call center business and shared 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*Starting from January 1, 2018, the Group transitioned to a new organizational structure from the existing one based on products to one basedon markets and customers, as part of efforts to achieve Phase III of our Long-Term Management Objectives. Accordingly it has changed
reportable segments from the existing ones of Business Solutions, IT Solutions, Imaging System and Industrial/Medical to the new ones,Consumer, Enterprise, Area and Professional from this first quarter of consolidated accounting period.
Segment information for the previous first quarter of consolidated accounting period has been restated to reflect the recategorizations.

-8--