April 24, 2018

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2018

Registered company name:
Stock listing:Code number:
URL:

Canon Marketing Japan Inc.

Tokyo Stock Exchange, First Section
8060

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

Representative director:

Masahiro Sakata, President

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

Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071
No

1.Consolidated business results for the three months ended March 31, 2018 (From January 1, 2018 to March 31, 2018)(1) Consolidated Results of Operations

Three months ended

March 31, 2018
March 31, 2017

[Note] Comprehensive Income:Three months ended

March 31, 2018

(Amounts less than one million yen are truncated)

Net sales%(1.3)

Millions of yen

150,802
152,817(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent%(34.4)

Millions of yen

3,715

(2.0)

5,661

8.9

Basic earnings
per share
Yen

Diluted earnings
per share
Yen

30.78

-19.50Total assets

Year ended December 31, 2017

5,758%(28.8)%
2,529 (36.6)

Millions of yen

7.2

3,991

34.1

Three months ended March 31, 2017 : 3,645 million yen [(19.5%)]-(2) Consolidated Financial Position[Reference] Shareholders' equity:

4,101

Three months ended March 31, 2018 : 2,813 million yen [(22.8%)]

March 31, 2017

First quarter ended March 31, 2018

Millions of yen

Millions of yen
493,188
510,832

Net assets

Millions of yen
295,784(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share%

297,522First quarter ended March 31, 2018 : 295,296 million yen

Yen
2,277.32

59.9
58.1

2,290.70

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

2.Dividends
First quarter-end
Year ended December 31, 2017

Yen

Dividend per share

Second quarter-end Third quarter-end
Yen

25.00

-

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

Yen

Year-end

Yen

Annual

Yen-

35.00

60.00

--

60.00

[Note] Revision of cash dividend forecast for this period : None

[Note] Interim dividend for the fiscal year ending December 31, 2018 is unfixed because consolidated financial forecast for the six months fromJanuary 1, 2018 to June 30, 2018 is not fixed. The Year-end dividend for the fiscal year ending December 31, 2018 is equal to the balance ofannual dividend and interim dividend.
3.Consolidated financial forecast for the fiscal year ending December 31, 2018
Net sales

Full year

Millions of yen %645,000 2.0[Note] Revision of forecast for this period : None

(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Operating income Ordinary income
to owners of parent
per share
Millions of yen

32,000-1-% Millions of yen %33,000 4.8

5.2%
21,700 4.9

Millions of yenYen

167.35

*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 March 31, 2018 :As of December 31, 2017 :

151,079,972( ii ) Number of treasury stock at the end of the period
21,411,954
As of March 31, 2018 :As of December 31, 2017 :( iii ) Average number of shares
As of March 31, 2018 :As of March 31, 2017 :

21,411,513

129,668,126
129,670,635* 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.

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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 receivableSecurities
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, net
Tools, furniture and fixtures, net
Rental 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 March 31, 2018

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

58,632
111,554
40,50036,691
1,078
708
4,071
120,0107,145(137)
380,256

30,825
251
3,732
11,05829,016116
89
75,09030,438238
3,598
10,82428,920114
12674,261

5,153
12
316
2
5,485

5,010
11
316
3
5,341

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

9,806
39
403
16,026
4,881
2,608(436)33,329112,931
493,188

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 March 31, 2018

100,940147
125
18,168
6,289
4,586
3,443
128
487
132
22,949157,398

88,225192
126
15,407
1,933
3,147
12,64440
530
82
19,483
141,812

163
438
961
49,604
4,743
55,911
213,310

146
438
1,061
49,522
4,422
55,591
197,40373,30382,820176,911(31,921)301,11373,30382,820174,902(31,922)
299,103

3,159
698(7,345)(4,081)
490
297,522510,832

3,281(36)41(7,093)(3,806)488
295,784
493,188

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

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on investments in partnership
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenseForeign exchange losses
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
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on impairment of fixed assets
Loss on valuation of investment securities
Expenses for restructuring of business bases
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes

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

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

Three months of FY2018(from January 1, 2018
to March 31, 2018)

150,802
98,81951,98348,267
3,715

41
24
130
196

40
25
218
175
460

2
1086
100
5,758

2
71
74
4,101

7467
474

118
118

29
5
8
43
6,190
2,186
4,003
12
3,991

51
190
47
7
198
4,021
1,474
2,546
172,529

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)

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

4,003

Three months of FY2018(from January 1, 2018
to March 31, 2018)

2,546

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

122
(42)
(65)
252
266
2,813

3,638
6

2,804
9

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 assets
Increase (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, net
SubtotalInterest 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
Payments for purchases of intangible assets
Payments for purchases of investment in securities
Proceeds from sales of investments in securities
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
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-

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

Three months of FY2018(from January 1, 2018
to March 31, 2018)

6,190
3,487
9(258)
9,114(67)
421(467)
14
17,239(2,786)(11,337)(8,145)13,01765(4)(4,470)
8,607

4,021
3,305
1
148
303
(16)
9,201
(66)
2(67)
(218)
13,944(4,591)(12,704)(8,534)
4,729
65
(2)
(4,886)(94)(2,497)
(366)
(87)
580
(29,999)(135)(32,506)(2,363)(397)(614)
12(29,996)
207(33,151)(50)(1)(3,891)(12)(3,955)(36)(27,890)
107,285
79,39545(32)(1)(4,539)(11)(4,539)(61)(37,847)
136,979
99,132

Consolidated Quarterly Segment Information
I. Three months of FY2017 (from January 1, 2017 to March 31, 2017)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

ConsumerEnterprise

Sales - external customers

32,54942,75464,67812,824

Total

32,66744,241

68,092

13,533

Net sales

Sales - intersegment

Operating income (loss)[Note]

117
289

1,487

1,955

Area3,414

3,461

Professional

708

(235)

OtherTotalAdjustment Consolidated

9152,817-

152,817774

159,309(6,492)

152,817

764

145

6,492

5,616

(6,492)45-

5,661

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. Three months of FY2018 (from January 1, 2018 to March 31, 2018)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

ConsumerEnterprise

Sales - external customers

26,80744,99063,242

15,775

Total

26,822

47,127

66,372

16,469Net sales

Sales - intersegment

Operating income (loss)[Note]

15(2,149)

2,136

2,494

Area

3,129

2,946

Professional

693

297

OtherTotal(13)

150,802681

157,473

695

116

6,670

3,705

Adjustment Consolidated-150,802(6,670)150,802(6,670)10-

3,715

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.

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