April 25, 2017

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2017
Registered company name:
Stock listing:Code number:
URL:
Representative director:
Contact:

Canon Marketing Japan Inc.
Tokyo Stock Exchange, First Section
8060

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

http://cweb.canon.jp/eng/ir
Masahiro Sakata, President
Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071
No

1.Consolidated business results for the three months ended March 31, 2017 (From January 1, 2017 to March 31, 2017)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Net sales
Operating income
Ordinary income
to owners of parent
Millions of yen
Millions of yen
Millions of yen
Three months ended%%% Millions of yen%
152,817
(2.0)
5,661
8.9
5,758
7.2
3,991 34.1
March 31, 2017
155,996
0.4
5,197
49.8
5,372
43.2
2,976 61.0
March 31, 2016
[Note] Comprehensive Income:Three months ended March 31, 2017 : 3,645 million yen [(19.5%)]
Three months ended March 31, 2016 : 4,526 million yen [99.5%]
Basic earnings
per share

Three months ended
March 31, 2017
March 31, 2016

30.78
22.95

Diluted earnings
per share
Yen-(2) Consolidated Financial Position
Total assets
First quarter ended March 31, 2017
Year ended December 31, 2016
[Reference] Shareholders' equity:

Net assets

Millions of yen
489,925
497,727(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Millions of yen
280,661
280,919%Yen
2,161.02
2,162.96

58.0
56.4

First quarter ended March 31, 2017 : 280,220 million yen
Year ended December 31, 2016 : 280,472 million yen

2.Dividends
Dividend per shareFirst quarter-end
Yen-

Dividend per share
Second quarter-end Third quarter-endYen
Yen
20.00
-

Year ended December 31, 2016
Year ending December 31, 2017
Year ending December 31, 2017
(forecast)[Note] Revision of cash dividend forecast for this period : None--

Year-end
Yen
30.00-Annual
Yen
50.00

50.00

[Note] Interim dividend for the fiscal year ending December 31, 2017 is unfixed because consolidated financial forecast for the six months
from January 1, 2017 to June 30, 2017 is not fixed. The Year-end dividend for the fiscal year ending December 31, 2017 is equal to thebalance of annual dividend and interim dividend.
3.Consolidated financial forecast for the fiscal year ending December 31, 2017
(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 %
4.1
2.5
3.1
9.0
645,000
28,80029,60019,800152.69Full year[Note] Revision of forecast for this period : None-1-*Others(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries) :None(2) Application of a specified accounting procedure :Yes(3) Changes in accounting policies and accounting estimates, retrospective restatement( i ) Changes in accounting policies based on revisions of accounting standard :( ii ) Changes in accounting policies other than ( i ) :( iii ) Changes in accounting estimates :( iv ) Retrospective restatement :

None
None
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 March 31, 2017 :
151,079,972
As of December 31, 2016 :( ii ) Number of treasury stock at the end of the period
21,409,517
As of March 31, 2017 :
21,409,021
As of December 31, 2016 :( iii ) Average number of shares
As of March 31, 2017 :As of March 31, 2016 :

129,670,635
129,672,135* Implementation Status of Review Processes
At the time this quarterly Financial Report is released, procedures are underway to review quarterly financial
statements pursuant to the Financial Instruments and Exchange Law.
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, 2016
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Rental assets, net
Land
Leased assets, net
Total property, plant and equipment
Intangible assets
SoftwareLeased assets
Right of using facilities
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Guarantee deposits
Other
Allowance for doutful accounts
Total investments and other assets
Total non-current assets
Total assets-3-

As of March 31, 201776,785
124,475
30,50028,270
834
875
4,214
90,0446,263(121)362,141

48,895
107,22230,50031,096
945
724
4,218
120,0445,724(126)349,244

47,425147
3,963
10,57434,364226
96,70147,058
142
3,843
9,799
34,364200
95,407

6,443
53
317
4
6,819

6,175
54
317
4
6,552

7,422
10
17,668
4,824
2,483
(344)
32,064
135,585
497,727

6,849
10
17,830
4,973
2,406
(349)
31,720133,680
482,925

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2016
Liabilities
Current liabilities
Notes and accounts payable-trade
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other
Total current liabilities
Non-current liabilities
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Accrued long service rewards for employees
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-4-

As of March 31, 2017

102,662175
18,968
4,689
4,296
3,473
128
461
23
22,086
156,966

91,320157
15,0302,047
3,525
12,58722492
22
17,562
142,769

206
422
6
961
53,568
4,675
59,841
216,808

193
443
6
1,038
53,2584,553
59,493202,263

73,30382,820163,363(31,914)287,571

73,30382,820163,464(31,915)
287,6722,328(14)147(9,560)(7,099)446
280,919497,727

1,968
(19)
115
(9,517)(7,452)441
280,661
482,925

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2016(from January 1, 2016
to March 31, 2016)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-

Three months of FY2017(from January 1, 2017
to March 31, 2017)

155,996
101,127
54,86949,672
5,197

152,817
99,13453,68248,021
5,661

69
30
194
294

41
24
130
196

423
91
119
5,372

21086100
5,758

30
4

7467
474

53
98
3
154
5,222
2,235
2,986
10
2,976

29
13
43
6,190
2,186
4,003
123,991

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2016(from January 1, 2016
to March 31, 2016)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive incomeComprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-6-

Three months of FY2017(from January 1, 2017
to March 31, 2017)

2,986

4,003

(400)
(16)
(69)
2,026
1,540
4,526

(359)
(4)
(36)
43(358)
3,645

4,516
10

3,638
6

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Three months of FY2016(from January 1, 2016
to March 31, 2016)
Cash flows from operating activities
Profit before income taxes
DepreciationImpairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Loss (gain) on sales and retirement of property, plant and equipment
Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of finance lease obligations
Purchase of treasury shares
Cash dividends paid
Dividends paid to non-controlling shareholders
Net cash provided by (used in) financing activities
Effect of exchange rate change 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-

Three months of FY2017(from January 1, 2017
to March 31, 2017)

5,222
3,766
98
58
17(303)
9,156
(99)
4
42
12,286(2,525)(9,445)(7,784)
10,494100(4)(6,121)
4,468

6,190
3,487
9(258)
9,114(67)
421(467)
17,239(2,786)(11,337)(8,131)
13,01765(4)(4,470)8,607(1,781)
(490)
(24)
00
62
(2,234)(2,497)
(366)
(87)
580
(29,999)(135)(32,506)(63)(0)(3,243)(10)(3,317)(71)(1,154)
99,573
98,419(50)(1)(3,891)(12)(3,955)(36)(27,890)
107,285
79,395

Consolidated Quarterly Segment Information
I. Three months of FY2016 (from January 1, 2016 to March 31, 2016)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

ImagingSystem

27,19531,791

Industrial /MedicalOtherTotal

Adjustment Consolidated

Net sales
Sales - external customers

86,628-

6,618

10,375-86,62833,813

31,971

10,375

Operating income (loss)

3,403

1,122(325)845

6Sales - intersegment
Total

155,996-

6,618(6,618)6

162,615(6,618)

155,996

149

5,197

-

5,197

-

-

155,996-[Note]
1. "Other" includes businesses, such as shared service businesses, which are not inluded in other reportable segments.
2. "Operating income (loss)" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."
II. Three months of FY2017 (from January 1, 2017 to March 31, 2017)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System26,07829,496

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income

88,481-

6,991

8,751--

9

152,817

-

-

6,991

(6,991)

152,817-88,48133,06929,4968,751

9159,808(6,991)

152,817

3,779

1,091

71631

88

5,661-

5,661[Note]
1. "Other" includes businesses, such as shared service businesses, which are not inluded in other reportable segments.
2. "Operating income" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."*NOTE*
Canon Biz Attenda Inc. and A&A Co., Ltd. , which were previously included in "IT Solutions" segment, are included in "Business Solutions"segment and Canon ITS Medical Inc., which was previously included in "IT Solutions" segment, is included in "Industrial / Medical" segment
starting from the current fiscal year. The segment information for the previous fiscal year is disclosed after reclassifying the figures inaccordance with the new reportable segments mentioned above.

-8-