July 27, 2021

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2021
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:

Masachika Adachi, President

Contact:

Masahiko Banno, General Manager Accounting Div. Accounting Headquarters

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

August 27,2021
No

1.Consolidated business results for the for the six months ended June 30, 2021(From January 1, 2021 to June 30, 2021)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net income attributable toOperating income
Ordinary income
owners of parent

Net sales
Six months ended

21,520%29.2

Millions of yen

20,586%
56.7

Millions of yen

275,149%
4.8

Millions of yen

June 30, 2021

15,056%51.1

June 30, 2020

262,593(13.3)

13,140(2.1)

16,653

16.1

9,963

5.6

[Note] Comprehensive Income:Millions of yen

Six months ended June 30, 2021 : 15,559 million yen [44.6%]
Six months ended June 30, 2020 : 10,762 million yen [(11.1%)]
Basic earnings
per share

Diluted net income
per share

YenYenJune 30, 2021

116.11116.10June 30, 2020

76.84

76.83

Six months ended(2) Consolidated Financial Position
Total assets
Second quarter ended June 30, 2021

Millions of yen
507,569

Millions of yen
356,487

%
70.1

Yen
2,743.84

506,604

346,11468.2

2,664.20

Year ended December 31, 2020
[Reference] Shareholders' equity:(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Net assets

Second quarter ended June 30, 2021 : 355,809 million yen
Year ended December 31, 2020 : 345,458 million yen

2.Dividends
Dividend per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Year ended December 31, 2020

-20.00Year ending December 31, 2021

-

30.00

Year ending December 31, 2021
(forecast)Year-end

Annual
Yen

Yen-

40.00

60.00

-

30.00

60.00

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

3.Consolidated financial forecast for the fiscal year ending December 31, 2021
Net sales
Millions of yen

Full year

567,000(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Basic earnings
Net income attributable
Operating income
Ordinary income
to owners of parent
per share% Millions of yen% Millions of yen %35,000 11.8
35,800 1.6

4.0[Note] Revision of forecast for this period : Yes-1-%
24,200 10.0

Millions of yen

Yen

186.62

*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, 2021 :As of December 31, 2020 :

131,079,972( ii ) Number of treasury stock at the end of the period
As of June 30, 2021 :

1,404,251

As of December 31, 2020 :

1,412,822( iii ) Average number of shares
As of June 30, 2021 :

129,671,398

As of June 30, 2020 :

129,666,993* 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, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
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, netMachinery, equipment and vehicles, netTools, furniture and fixtures, net
Rental assets, netLand
Lease 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
Investments in securities
Long-term loans receivable
Prepaid pension and severance costs
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, 2021

59,631
105,328500
27,091
103
631
180,006
7,122(66)
380,349

74,98386,006500
28,757163559
180,0147,504(31)378,457

43,402
87
3,004
7,281
28,35916
1,577
83,72944,794
82
3,039
6,891
28,35911
2,465
85,643

5,373
1
294
0
5,669

5,649
0
303
0
5,953

11,30235
415
19,219
3,427
2,659
(205)
36,855
126,255
506,604

12,271
25414
19,004
3,228
2,674
(105)
37,514
129,111507,569

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2020
Liabilities
Current liabilities
Notes and accounts payable-trade
Lease obligations
Accrued expenses
Accrued income taxes
Consumption taxes payable
Accrued bonuses
Accrued directors’ bonuses
Accrued product warranties
Accrued 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
Accrued pension and severance costs
Other long-term liabilities
Total long-term liabilities
Total liabilities
EquityShareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income (loss)
Net unrealized gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income (loss)
Non-controlling interests
Total equity
Total liabilities and equity-4-

As of June 30, 2021

44,10754
16,166
7,004
5,547
5,664
75
453
8
29,356
108,440

40,97251
13,287
7,384
4,082
4,775
24
471
10
28,924
99,98374
1951
47,883
3,139
52,049160,49067
1
1,008
47,246
2,775
51,098151,082

73,30382,814
188,481(2,103)
342,495

73,30382,824
198,351(2,091)
352,3874,230(29)
5(1,243)2,962
655
346,114506,604

4,392
12
74
(1,057)3,421
678
356,487
507,569

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2020(from January 1, 2020
to June 30, 2020)
Net sales
Cost of sales
Gross profitSelling, 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, net
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Other, net
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of shares of subsidiaries and associates
Gain on sales of investments in securities
Other, net
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on disaster
Loss on sales of shares of subsidiaries and associates
Loss on COVID-19
Other, net
Total extraordinary losses
Net income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent-5-

Six months of FY2021(from January 1, 2021
to June 30, 2021)

262,593
175,746
86,84773,707
13,140275,149
180,079
95,06974,483
20,586

118
105
450
61
2,748
159
3,642

135
119
495
187－
130
1,069

68
114
129
16,653637
91
135
21,520

280
－
119
20419

4895
2
1903

48－
737
211
4
1,001
16,071
6,045
10,026
63
9,963

62
168
－－－
231
22,192
7,101
15,091
34
15,056

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2020(from January 1, 2020
to June 30, 2020)
Net income
Other comprehensive income (loss)
Net unrealized gains or losses on available-for-sale securities
Deferred gains / (losses) on hedges
Foreign currency translation adjustments
Defined retirement 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 FY2021(from January 1, 2021
to June 30, 2021)

10,02615,091

(182)
(13)
(15)
948
735
10,762

161
4278
186
468
15,55910,701
60

15,51544

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2020(from January 1, 2020
to June 30, 2020)

Six months of FY2021(from January 1, 2021
to June 30, 2021)

Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in accrued pension and severance costs
Decrease (increase) in prepaid pension and severance costs
Increase (decrease) in accrued bonuses
Interest and dividend income
Interest expense
Loss (gain) on sales and disposal of property, plant and equipment, net
Loss (gain) on sales of investments 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 operating activities

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)22,96822,192
5,222
(134)
(212)
(23)
(873)
(254)
6
52
(2)
(895)
(187)
19,318(1,775)(3,129)(1,901)37,401254(6)(6,800)30,848Cash 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 investments in securities
Proceeds from sales of investments in securities(11,765)
1,003(2,120)(248)
272(9,610)6(967)
(869)
388

828

1,062

0(55)
(12,085)2(370)(10,357)(40)(1)(3,890)(26)
0(3,958)(42)
6,882
54,493
61,376(29)(1)(5,183)(21)－(5,237)
97
15,35160,13175,483

Proceeds from sales of shares of a subsidiary 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
Repayments of finance lease obligations
Payments for purchases of treasury stock
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net 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-7-Consolidated Quaterly Segment Information
I. 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
Consumers

Enterprise

50,217

87,970

Area

Professional

Other

Total

Adjustment Consolidated

262,593-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

106,439

16,3301,634

262,593

26

4,921

4,794

749

3,184

13,676(13,676)-50,244

92,892111,234

17,0804,818

276,270(13,676)

262,593

2,029

5,441

4,718

1,381(437)13,133

6

13,140[Note]
1. Other includes call center business and BPO service business, which are not included 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 FY2021 (from January 1, 2021 to June 30, 2021)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
Consumers

Enterprise

61,20986,721

Area

Professional

OtherTotal

Adjustment Consolidated

275,149-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

110,517

15,392

1,308

275,149

21

5,167

5,697

751

3,888

15,526(15,526)-

61,23091,889116,215

16,143

5,197

290,676(15,526)

275,149

6,684

6,244

7,314

1,532

(1,216)

20,55828

20,586[Note]
1. Other includes call center business and BPO service business, which are not included 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)
Part of the organization that conducted direct sales to medium-sized/second-tier companies in the Area segment was transferred to theEnterprise segment in 2021. Accordingly, results for 2020 have been reclassified between the segments.

-8-