October 23, 2014

Summary Report of Consolidated Financial Results
for the third quarter ended September 30, 2014

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
U.S. Accounting Standards Applied:No

1.Consolidated business results for the nine months ended September 30, 2014 (From January 1, 2014 to September 30, 2014)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Nine months ended

Operating income

Millions of yen%

Millions of yen

Ordinary income%Millions of yen

Net income%Millions of yen%

September 30, 2014

479,105

2.2

15,973

90.9

17,13883.5

9,702 107.1

September 30, 2013

468,622

(1.9)

8,368

(15.5)

9,340(14.9)

4,684[Note] Comprehensive Income:(19.3)

Nine months ended September 30, 2014 : 10,020 million yen [60.3%]
Nine months ended September 30, 2013 : 6,252 million yen [7.7%]
Net income
per share

Diluted net income
per share
Yen

Yen

September 30, 2014

74.82

-

September 30, 2013

35.20

-

Nine months ended(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%

Yen

Third quarter ended September 30, 2014

454,519

263,57557.9

2,030.35

Year ended December 31, 2013

467,076

257,07555.0

1,980.22[Reference] Shareholders' equity:

Third quarter ended September 30, 2014 : 263,288 million yen
Year ended December 31, 2013 : 256,794 million yen

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2013

-

12.00

-

12.00

24.00

Year ending December 31, 2014

-

15.00

15.00

30.00

Year ending December 31, 2014
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December 31, 2014

(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Millions of yen%

Millions of yen%

668,400

1.7

24,10041.7

Full year[Note] Revision of forecast for this period : Yes-1-

Millions of yen%

25,500 40.0%

Yen

14,400 41.6

111.04

Millions of yen

* 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 :NoneYes(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)
As of September 30, 2014 :

151,079,972

As of December 31, 2013 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of September 30, 2014 :

21,403,724

As of December 31, 2013 :

21,400,070( iii ) Average number of shares
As of September 30, 2014 :

129,678,039

As of September 30, 2013 :133,085,671

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, 2013

As of September 30, 2014

AssetsCurrent assets
Cash and deposits

20,082

15,913

Notes and accounts receivable-trade132,696

100,625

Short-term investment securities

82,200102,500

Merchandise and finished goods

26,841

31,351

578

586

Work in process
Raw materials and supplies

814

823

Deferred tax assets

5,088

5,098

Short-term loans receivable

50,00050,054

Other

6,823

7,285

Allowance for doubtful accounts

(188)

(106)

324,938

314,133

49,12647,767

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

99

4,510

4,598

Rental assets, net

9,340

9,869

Land

36,01236,557

Leased assets, net

685

607

99,684

99,409Goodwill

447

1,117

Software12,006

9,550

Leased assets

93

134

Right of using facilities

316

317

Other

29

27

12,894

11,147

5,303

5,763

Total property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable

1113Deferred tax assets

16,084

16,074

Guarantee deposits

5,571

5,484

Other2,981

2,869

Allowance for doubtful accounts

(393)

(375)

Total investments and other assets

29,55929,829142,137

140,386

467,076454,519

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2013

As of September 30, 2014

Liabilities
Current liabilities
Notes and accounts payable-trade108,498

Short-term loans payable

90,122-141

Lease obligations

446

385

Accrued expenses

24,976

16,554

Income taxes payable

2,996

4,330

Accrued consumption taxes

2,965

4,496

Provision for bonuses

3,506

12,573

Provision for directors' bonuses

65

37

Provision for product warranties

654

656

Provision for loss on order received

84

22

Other

20,71916,686

Total current liabilities

164,914146,006

Noncurrent liabilities
Bonds payable-50

Long-term loans payable

73

233

Lease obligations

454

460

Deferred tax liabilities

579

592

Deferred tax liabilities for land revaluation

3131

38,23337,884

Provision for retirement benefits
Accrued long service rewards for employees
Other
Total noncurrent liabilities
Total liabilities

933

910

4,780

4,777

45,08644,938210,000

190,944

73,30373,303

Net assets
Shareholders' equity
Capital stock
Capital surplus

82,81982,819Retained earnings

131,331

137,533

Treasury stock(31,896)(31,903)

Total shareholders' equity

255,557

261,752

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

1,138

Deferred gains or losses on hedges

1,378
-

Foreign currency translation adjustmentTotal accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-4-898

149

1,236

1,535

281

287

257,075

263,575

467,076454,519

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Nine months of FY2013(from January 1, 2013
to September 30, 2013)

Nine months of FY2014(from January 1, 2014
to September 30, 2014)

Net sales

468,622479,105

Cost of sales

307,482309,509

Gross profit

161,139

169,595

Selling, general and administrative expenses

152,771153,622

8,368

15,973

186

198

Operating income
Non-operating income
Interest income
Dividend income

73

74

Insurance income

642

593

Other

417

518

1,320

1,385

Total non-operating income
Non-operating expenses
Interest expenses

23

Share of loss of entities accounted for using equity method

24
-

4

Foreign exchange losses

86

Other

239

Total non-operating expenses

348

219

9,340

17,13882

Ordinary income

190

Extraordinary income
Gain on sales of non-current assets
Gain on bargain purchase-

Gain on sales of investment securities
Other
Total extraordinary income12115

41512524554

155

Extraordinary losses
Loss on sales and retirement of non-current assets
Impairment loss

0-

Special extra retirement payments

597-Office transfer expenses

203

Other

176

Total extraordinary losses

97

1,532

253

Income before income taxes and minority interests

7,933

16,910

Income taxes

3,221

7,183

Income before minority interests

4,712

9,726

27

24

4,684

9,702

Minority interests in income
Net income※ To reflect this change in the presentation method, the Company has amended classification of its results for the previous fiscal year.
As a result, 2,721 million yen, which was included in cost of sales in the Consolidated Statements of Income for the previous year, is now
included in selling, general and administrative expenses.

-5-Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Nine months of FY2013(from January 1, 2013
to September 30, 2013)
Income before minority interests

Nine months of FY2014(from January 1, 2014
to September 30, 2014)

4,712

9,726

Other comprehensive income
Valuation difference on available-for-sale-securities

1,437

Deferred gains or losses on hedges

239-

Foreign currency translation adjustment

103

Total other comprehensive income

845

1,540

293

6,252

10,020Comprehensive income attributable to owners of the parent

6,216

10,000Comprehensive income attributable to minority interests

36

19

Comprehensive income
Comprehensive income attributable to-6-

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Nine months of FY2013(from January 1, 2013
to September 30, 2013)

Nine months of FY2014(from January 1, 2014
to September 30, 2014)

Cash flows from operating activities
Income before income taxes and minority interests

7,933

16,910Depreciation

12,956

12,911

Impairment loss

0-

Amortization of goodwill

3578

Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits

-(12)

(134)

(104)

88(403)

Increase (decrease) in provision for directors' retirement benefits(1,046)-

Increase (decrease) in provision for bonuses

9,023

9,080

Interest and dividends income(260)(273)

Interest expenses

2324

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

464118

21,10032,675Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories(3,369)(4,605)

Increase (decrease) in notes and accounts payable-trade(10,229)(18,458)

Other, net(8,850)(10,737)

Subtotal

27,73437,204264

272

Interest and dividends income received
Interest expenses paid

(23)

(24)

Income taxes paid

(8,387)(5,602)

Net cash provided by (used in) operating activities

19,58831,849Cash flows from investing activities
Proceeds from sales of securitiesPurchase of property, plant and equipment
Proceeds from sales of property, plant and equipment30-(10,792)(7,375)239

16(2,462)(2,332)

Purchase of investment securities

(130)

(136)

Proceeds from sales of investment securities

716

Purchase of intangible assets

8

Purchase of shares of subsidiaries-

Proceeds from sales of shares of subsidiaries and associates-

236

Purchase of shares of subsidiaries resulting in change in scope of consolidation-(1,278)(9,998)(40)

Decrease (increase) in time deposits

47

100

Other, net

(56)

108

(22,407)(11,632)

(505)

(399)

Net decrease (increase) in short-term loans receivable

Net cash provided by (used in) investing activities(939)

Net cash provided by (used in) financing activities
Repayments of finance lease obligations
Purchase of treasury shares

(3)

(6)

(3,461)(3,505)

Cash dividends paid to minority shareholders

(9)

(12)

Other, net

0(70)(3,979)(3,994)

Cash dividends paid

Net cash provided by (used in) financing activities

0(0)Net increase (decrease) in cash and cash equivalentsEffect of exchange rate change on cash and cash equivalents(6,798)

16,221

Cash and cash equivalents at beginning of period

108,259

102,182

Cash and cash equivalents at end of period

101,461

118,404-7-Consolidated Quarterly Segment Information
I. Nine months of FY2013 (from January 1, 2013 to September 30, 2013)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System82,173

124,484

Industrial /Medical

OtherTotal

Adjustment Consolidated

Net sales
Sales - external customers

243,165-Sales - intersegment
Total
Operating income (loss)

21,98818,746-51--

468,622-

21,988(21,988)468,622-

243,165

104,161

124,484

18,74651490,610(21,988)468,622

4,716

(42)

4,938

(1,522)

278

8,368

-

8,368

[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
II. Nine months of FY2014 (from January 1, 2014 to September 30, 2014)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

Imaging
SystemIndustrial /Medical87,160122,950

20,618

Other

Total

Adjustment Consolidated

479,105-

Net sales
Sales - external customers

248,335-

Sales - intersegment
Total
Operating income (loss)

26,007-40--

479,105

26,007(26,007)248,335

113,167

122,950

20,61840

505,112(26,007)479,105

-

6,665

2,503

7,383

(921)

342

15,973-

15,973[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
[Note] Starting from FY2014, the segment name of the Industrial Equipment was changed to Industrial / Medical. The change in the segment
name entails no changes in the amounts presented.

-8-