July 22, 2015

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2015

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
Masahiro Sakata, President
Yo Shibasaki, Director Senior Vice President
Tel. +81-3-6719-9071
Dividend payable date (as planned):
August 26, 2015
U.S. Accounting Standards Applied:No
1.Consolidated business results for the three months ended June 30, 2015 (From January 1, 2015 to June 30, 2015)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Six months ended

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

314,096

(4.3)

8,522

(31.9)

9,585(28.7)

5,075

328,355

6.1

12,511207.7

13,452

176.4

7,851 297.9

June 30, 2015
June 30, 2014
[Note] Comprehensive Income:Operating income

Millions of yen%

(35.4)

Six months ended June 30, 2015 : 5,787 million yen [(27.2)%]
Six months ended June 30, 2014 : 7,950million yen [177.9%]
Net income
per share

Diluted net income
per share
Yen

Yen

June 30, 2015

39.14

-June 30, 2014

60.55

-

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

Net assets

Millions of yen

Millions of yen

Second quarter ended June 30, 2015
Year ended December 31, 2014
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

461,777

270,22058.5

2,081.53

479,747

270,35256.3

2,082.60

Second quarter ended June 30, 2015 : 269,918 million yen
Year ended December 31, 2014 : 270,061 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, 2014

-

15.00

-

25.00

40.00

Year ending December 31, 2015

-

20.00
-

20.00

40.00

Year ending December 31, 2015
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December 31, 2015

(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%

Millions of yen%

666,000

1.0

26,000

3.6

27,200

2.4

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

Yen

15,600 (2.7)

120.30Millions 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 :Yes( 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 fiscal year (including treasury stock)
As of June 30, 2015 :

151,079,972

As of December 31, 2014 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of June 30, 2015 :

21,406,850

As of December 31, 2014 :

21,404,708( iii ) Average number of shares*As of June 30, 2015 :

129,674,131

As of June 30, 2014 :

129,678,657

Because of a change in the accounting policy, the calculation of retirement benefit obligations and service costs was modified,effective from the current term. As a result, the net defined benefit liability at the beginning of the first half increased by 4,062
million yen, while the retained earnings decreased by 2,662 million yen. The impact on the operating profit, ordinary profit,and profit before income taxes for the current first half will be minimal.

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, 2014

As of June 30, 2015

AssetsCurrent assets
Cash and deposits

36,107

13,604

Notes and accounts receivable-trade

128,473

105,639

Securities

84,50078,100

Merchandise and finished goods

26,471

26,601

488

923

Work in process
Raw materials and supplies

855

835

Deferred tax assets

4,860

4,850

Short-term loans receivable

50,05480,054

Other

7,899

8,319

Allowance for doubtful accounts

(113)

(99)

339,596

318,828

48,152

48,129Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

98

4,374

4,543

Rental assets, net

10,637

11,344Land

36,301

36,263Tools, furniture and fixtures, net

Leased assets, net
Total property, plant and equipment

584

508

100,059

100,797

Intangible assets
Goodwill

1,090

966

Software

9,362

8,960

Leased assets

116

95

Right of using facilities

317

317

Other

20

16

10,906

10,357

6,292

7,690

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

1110

Deferred tax assets

15,04016,315

Guarantee deposits

5,338

5,325

Other

2,859

2,765

Allowance for doubtful accounts

(357)

(315)

Total investments and other assets

29,184

31,792

140,151

142,948479,747

461,777

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2014

As of June 30, 2015

Liabilities
Current liabilities
Notes and accounts payable-trade

101,337

87,825

Lease obligations

343

265

Accrued expenses

24,115

19,407

Income taxes payable

5,918

4,295

Accrued consumption taxes

7,619

3,005

Provision for bonuses

3,346

4,447

Provision for directors' bonuses

119

41

Provision for product warranties

679

638

21

3

Other

Provision for loss on order received

21,27023,016

Total current liabilities

164,770

142,945

Lease obligations

445

419

Deferred tax liabilities

540

590

Deferred tax liabilities for land revaluation29

29

Accrued long service rewards for employees

997

1,061

Net defined benefit liability

37,862

41,834

Other

4,748

4,677

Noncurrent liabilities

Total noncurrent liabilities
Total liabilities

44,623

48,611

209,394

191,556

73,30373,303

Net assets
Shareholders' equity
Capital stock
Capital surplus

82,81982,819Retained earnings

143,864

143,035

Treasury shares(31,905)(31,910)

Total shareholders' equity

268,082

267,248

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

1,704

Deferred gains or losses on hedges

2,665
-

Foreign currency translation adjustment

272

Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-4-32841(283)

1,978

2,669

291302

270,352

270,220479,747

461,777

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2014(from January 1, 2014
to June 30, 2014)

Six months of FY2015(from January 1, 2015
to June 30, 2015)

Net sales

328,355

314,096

Cost of sales

213,641

201,967

Gross profit

114,713112,128

Selling, general and administrative expenses

102,201

103,606

Operating income

12,511

8,522

132

141

Non-operating income
Interest income
Dividend income

7187

Insurance income

584

573

Other309

462

1,097

1,263
16

Total non-operating income
Non-operating expenses
Interest expenses

18

Share of loss of entities accounted for using equity method

1

Foreign exchange losses

145

Other

136

137

Total non-operating expenses

157

200

13,452

9,585

Gain on sales of non-current assets

32

Gain on bargain purchase12

Ordinary income-Extraordinary income

Insurance income on disaster-

Gain on sales of investment securities

210

Other

1

Total extraordinary income

1723

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

109

Loss on disaster
Group reorganization expensesOther90

Total extraordinary losses

90-14-

10074

199279

Income before income taxes and minority interests

13,2699,330

Income taxes

5,400

4,235

Income before minority interests

7,868

5,094

1718

7,851

5,075

Minority interests in income
Net income-5-

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2014(from January 1, 2014
to June 30, 2014)
Income before minority interests

Six months of FY2015(from January 1, 2015
to June 30, 2015)

7,868

5,094

Valuation difference on available-for-sale-securities

130960

Deferred gains or losses on hedges(0)3Foreign currency translation adjustment(48)

14-(285)

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

81693

7,950

5,787

Comprehensive income attributable to owners of parent

7,930

5,766

Comprehensive income attributable to minority interests

1921

Comprehensive income
Comprehensive income attributable to-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2014(from January 1, 2014
to June 30, 2014)

Six months of FY2015(from January 1, 2015
to June 30, 2015)

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

13,2699,330

Depreciation

8,587

8,018

Amortization of goodwill

56

122

Gain on bargain purchase

(12)

-

Increase (decrease) in allowance for doubtful accounts

(37)

(55)

Increase (decrease) in provision for retirement benefits(292)--(550)

Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for bonuses

356

1,101

Interest and dividend income(203)(228)

Interest expenses

1816

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

81

86

37,96322,926

520(543)

Increase (decrease) in notes and accounts payable-trade(30,365)(13,512)

Other, net(5,779)(7,544)

Subtotal

24,163

19,168Interest and dividends income received

203

227

Interest expenses paid

(18)

(16)

Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories

Income taxes paid

(2,884)(6,426)

Net cash provided by (used in) operating activities

21,46412,952(5,419)(6,183)956(1,400)(2,033)

(97)

(94)

418(939)-

175

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of shares of subsidiaries
Proceeds from sales of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change in scope of consolidation(555)-Net decrease (increase) in short-term loans receivable(29)(29,999)

Net decrease (increase) in time deposits

100-

Other, net

16(141)(8,293)(38,372)

(269)

(228)

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

(3)

(4)

(1,556)(3,238)Cash dividends paid to minority shareholders

(12)

(10)

Other, net

(70)

0

(1,912)(3,482)

Cash dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(0)011,258(28,903)

Cash and cash equivalents at beginning of period

102,182

120,607

Cash and cash equivalents at end of period

113,440

91,704

Net increase (decrease) in cash and cash equivalents-7-Consolidated Quarterly Segment Information
I. Six months of FY2014 (from January 1, 2014 to June 30, 2014)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

ImagingSystem

60,99083,096

Industrial /Medical

OtherTotal

Adjustment Consolidated

Net sales
Sales - external customers

169,826-Sales - intersegment
Total
Operating income (loss)

18,664

14,414-27--

328,355-

18,664(18,664)

328,355-

169,826

79,654

83,096

14,41427

347,019(18,664)

328,355

5,235

2,129

5,415(495)226

12,511-

12,511[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
II. Six months of FY2015 (from January 1, 2015 to June 30, 2015)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

Imaging
SystemIndustrial /Medical56,46578,622

14,105

Other

Total

Adjustment Consolidated

314,096-

Net sales
Sales - external customers

164,888-

Sales - intersegment
Total
Operating income (loss)

14,668-14--314,096

14,668(14,668)

164,888

71,13378,622

14,105

14

328,765(14,668)

314,096

4,381

1,537

2,635(256)

223

8,522

-

8,522

[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.

-8--