January 29, 2018

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 2017

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
Shiro Hamada, Director, Vice President
Tel. +81-3-6719-9071
Dividend payable date (as planned):
March 29, 2018
U.S. Accounting Standards Applied:No
1.Consolidated business results for the year ended December 31, 2017 (From January 1, 2017 to December 31, 2017)(1) Consolidated Results of Operations

Year ended

December 31, 2017
December 31, 2016

[Note] Comprehensive Income:Year ended(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent

Net sales
Millions of yen

632,189%

Millions of yen(2.6)

27,676

0.5

629,31330,406%

Millions of yen

3.9

28,717

9.9

Year ended December 31, 2017 : 23,697 million yen [153.9%]

Basic earnings
per share

Diluted net income
per share

Yen

Yen

159.48Rate of returnon equity%-

140.06

December 31, 2016-

Total assets

Year ended December 31, 2016

18,161

%

13.9
15.9

Millions of yen

%

7.2

4.8

5.8

%

297,522497,727%

6.2

Equity ratio

Millions of yen

510,832

Operating income to
net sales ratio

Ordinary income tototal assets ratio

4.4(Amounts less than one million yen are truncated)

Net assets

280,919

Net asset per share
Yen

58.1

2,290.70

56.4

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

2,162.96

Year ended December 31, 2016 : 280,472 million yen(3) Cash Flows

Year ended December 31, 2017

20,6792.4

6.5(2) Consolidated Financial Position[Reference] Shareholders' equity:

Millions of yen

9.7

Year ended December 31, 2016 : 9,332 million yen [(39.9)%]

December 31, 2017

Year ended December 31, 2017%

31,491(Amounts less than one million yen are truncated)

Net cash provided byoperating activities

Net cash provided byinvesting activities

28,885

7,963

Millions of yen

Millions of yen

33,306

Year ended December 31, 2016

Net cash provided byfinancing activities
Millions of yen

Cash and cash equivalents
at end of period
Millions of yen(7,145)(19,460)

136,979(6,086)107,285

2.DividendsFirstquarter-endYear ended December 31, 2016
Year ended December 31, 2017

Year ending December 31, 2018
(forecast)

Yen-

Secondquarter-end

Dividend per share

Yen

Third
quarter
-end

Yen

20.00

Full year

Millions of yen

645,000

%

2.0

35.00

-

3.Consolidated financial forecast for the fiscal year ending December 31, 2018
Net sales

Yen-

Annual

30.00

-

25.00

-

Year-end

Yen

50.00
60.00

-

(Consolidated)

Yen

%

6,483

35.7

7,780

37.6

%

2.3

2.7

35.9

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

Millions of yen

Millions of yen-1-

Ratio of
Payout ratio dividends to(Consolidated)
net assets

60.00

Operating income
32,000Total
dividends(annual)%5.2

33,000%

4.8

Profit attributableto owners of parent
Millions of yen%

21,700 4.9

Basic earnings
per share

Yen

167.35

* Others(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries) :(2) Changes in accounting policies and accounting estimates, retrospective restatement

None( 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

(3) Number of issued and outstanding shares (common stock)( i ) Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
151,079,972

As of December 31, 2017 :

151,079,972

As of December 31, 2016 :( ii ) Number of treasury stock at the end of fiscal year
As of December 31, 2017 :

21,411,513
21,409,021

As of December 31, 2016 :( iii ) Average number of shares

129,669,783

As of December 31, 2017 :

129,671,693

As of December 31, 2016 :-2-

(Reference) Summary of Non-Consolidated Financial Results
1.Non-Consolidated business results for the year ended December 31, 2017 (From January 1, 2017 to December 31, 2017)(1) Non-Consolidated Results of Operations

Year ended(Percentage represents increases or decreases from the previous year)

Net sales

December 31, 2017
December 31, 2016

Year ended(Amounts less than one million yen are truncated)

Millions of yen

489,105

Net income
per share
December 31, 2017
December 31, 2016%

Millions of yen(3.3)

16,1832.0

479,457

Operating income

Yen

19,768%Millions of yen

1.9

20,37522.2

Yen

139.91104.83[Reference] Shareholders' equity:

%

22.1

Millions of yen

1.4

18,141

13,593

%

33.5

14.7

-

Total assets

Year ended December 31, 2016

24,881

Net income

Diluted net income
per share(2) Non-Consolidated Financial Position

Year ended December 31, 2017

Ordinary income

Net assets

Millions of yen

Millions of yen

503,790(Amounts less than one million yen are truncated)
Equity ratio

283,887

484,283

272,417%

Net asset per share

56.4
56.3

Year ended December 31, 2017 : 283,887 / Year ended December 31, 2016 : 272,417

Disclaimer :This report is not subject to audit procedures based on the Financial instruments and Exchange
Law in Japan.
Earnings projections are based on information available at the time these materials wereannounced, and the Company cannot guarantee that they will be realized. Also, actual results
may differ from the estimated figures given due to various factors.

-3-

Yen

2,189.33

2,100.83

Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2016

As of December 31, 2017

AssetsCurrent assets

Cash and deposits

76,78566,479Notes and accounts receivable-trade124,475

125,626

Merchandise and finished goods

28,27032,076

Securities

30,500Work in process

70,500834

Raw materials and supplies

958

875

Deferred tax assets

836

4,214

Short-term loans receivable
Other

4,062

90,04490,014

(121)

(98)

6,263

Allowance for doubtful accounts
Total current assets

7,050

362,141

397,506

Buildings and structures, net

47,42530,825Tools, furniture and fixtures, net

3,963

3,732

Non-current assets

Property, plant and equipment

Machinery, equipment and vehicles, net

147

Rental assets, net

251

10,574Land

11,05834,364

Leased assets, net

226Construction in progress

29,016-116

89

Total property, plant and equipment

96,701

Software

6,443

5,153

Right of using facilities

317

316

Total intangible assets

6,819

5,485

Investment securities

7,422

9,027

Intangible assets

Leased assets

53

Other

12

4

Investments and other assets
Long-term loans receivable

10

Net defined benefit asset

75,090

2

-

29

404

Deferred tax assets

17,668

Other

2,483

2,532

32,06432,750

Guarantee deposits

4,824

Allowance for doubtful accounts(344)

Total investments and other assets

Total non-current assets

135,585

Total assets

497,727-4-

16,203
4,880

(327)

113,325

510,832

Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2016

As of December 31, 2017

Liabilities

Current liabilities

Notes and accounts payable-trade102,662

Short-term loans payable
Lease obligations

175

Accrued expenses-

18,968

Income taxes payable

4,689

Accrued consumption taxes

4,296

Provision for bonuses

Provision for directors' bonuses

Provision for loss on order received
Total current liabilities

Non-current liabilities
Lease obligations

Deferred tax liabilities

6,289

4,586

487

22,086

22,949128

132

156,966

157,398

206

163

6

Accrued long service rewards for employees

18,168

461

422

Deferred tax liabilities for land revaluation

125

3,443

23

Other

147

3,473
128

Provision for product warranties

100,940

961

438
961

Net defined benefit liability

53,56849,604

Total non-current liabilities

59,841

55,911

Other

4,675

Total liabilities

Net assets

Shareholders' equity
Capital stock

Capital surplus

4,743

216,808

213,31073,30373,30382,82082,820Retained earnings

163,363

176,911

Total shareholders' equity

287,571

301,113

2,328

3,159

147

98

Treasure stocks(31,914)

Accumulated other comprehensive income

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(14)

Foreign currency translation adjustment

Remeasurements of defined benefit plans(9,560)Total accumulated other comprehensive income

Non-controlling interests

Total liabilities and net assets

6(7,345)(4,081)

280,919

297,522497,727-5-(31,921)(7,099)446

Total net assets-

490

510,832

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

FY2016(from January 1, 2016
to December 31, 2016)

Net sales

629,313

FY2017(from January 1, 2017
to December 31, 2017)

632,189

Cost of sales

403,306

408,417

Selling, general and administrative expenses

198,331

193,365

220

165

Gross profit

226,007

Operating income

27,676

Non-operating income
Interest income

223,771

30,406

Dividend income

132

121

Other

443

493

Insurance income

609

Total non-operating income

549

1,405

1,328

Interest expenses

15

12

Other

270

220

Ordinary income

28,71731,491774

879

Non-operating expenses

Foreign exchange losses

78

Total non-operating expenses

363

Extraordinary income

Gain on sales of non-current assets

661

Gain on sales of investment securities

36

Other

Total extraordinary income

11

244

539
63

1,473

1,482

Loss on sales and retirement of non-current assets

985

898

Loss on disaster

27

Extraordinary losses

Impairment loss

Special extra retirement payments
Other

131

1,033

5

100

1,287

2,054

137

Total extraordinary losses

23

Profit before income taxes

28,90330,918

Income taxes-deferred

1,918

272

Income taxes-current

8,789

Total income taxes
Profit10,707

10,22233

15

18,195

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

18,161-6-

9,950

20,695

20,679-

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

FY2016(from January 1, 2016
to December 31, 2016)

Profit18,195

Other comprehensive income

FY2017(from January 1, 2017
to December 31, 2017)

20,695

Valuation difference on available-for-sale securities

(447)

831

Foreign currency translation adjustment

(80)

(65)

Deferred gains or losses on hedges(15)

Remeasurements of defined benefit plans, net of tax
Total other comprehensive income(8,319)

2,214

9,332

23,697

9,302

23,697(8,862)Comprehensive income

Comprehensive income attributable toComprehensive income attributable to owners of parent

Comprehensive income attributable to non-controlling interests

-7-

20

30

3,001

0

Consolidated Statements of Shareholders' EquityI.

FY2016 (from January 1, 2016 to December 31, 2016)

Capitalstock(Amounts less than one million yen are truncated)
Shareholders' equity

CapitalsurplusRetainedearnings

Treasure
stocksBalance at beginning of current period

73,30382,820151,036(31,911)

Restated balance

73,30382,820151,036(31,911)

Cumulative effects of changes in accounting policies

Changes of items during period
Dividends of surplus(5,835)

Profit attributable to owners of parent

18,161

Purchase of treasury stock
Disposal of treasury stock(2)

Cumulative effects of changes in accounting policies

Restated balance

Changes of items during period－－

73,30382,820

Valuationdifference on
available-forsale
securities

2,775

12,326

163,363(2)(31,914)

Deferred
gains orlosses onhedges287,571

0

Total
Foreign
Remeasurements
accumulated
currencyof definedothertranslation
benefitcomprehensive
adjustment
plansincome224(1,240)1,760

Noncontrollinginterests
430

－
2,775

0

224

(1,240)

1,760

430

18,161

(2)

－

－

－
(446)

2,328

(15)

(15)

(14)

-8-

(77)

(77)
147

(8,319)(8,859)(9,560)(7,099)(8,319)277,438

－

－
(446)

277,438(5,835)－

Profit attributable to non-controlling interests

Total net
assets－－

Disposal of treasury stock

Balance at end of current period

12,324

Accumulated other comprehensive income

Purchase of treasury stock

Total changes of items during period(2)－Profit attributable to owners of parent

Net changes of items other than shareholders' equity

18,161－Dividends of surplus

Dividends paid to non-controlling interests

275,247－

Net changes of items other than shareholders' equity

Balance at beginning of current period-－

Dividends paid to non-controlling interests

Balance at end of current period

275,247(5,835)

Profit attributable to non-controlling interests

Total changes of items during period

Totalshareholders'equity(8,859)

33

(10)

33

(10)

(7)

(8,866)446

280,91916

3,481

Consolidated Statements of Shareholders' Equity
II.

FY2017 (from January 1, 2017 to December 31, 2017)

Capitalstock(Amounts less than one million yen are truncated)
Shareholders' equity

CapitalsurplusRetainedearnings

Treasure
stocksBalance at beginning of current period

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

Restated balance

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

Cumulative effects of changes in accounting policies

Changes of items during period
Dividends of surplus(7,131)

Profit attributable to owners of parent

20,679Purchase of treasury stock
Disposal of treasury stock0

Profit attributable to non-controlling interests

Balance at beginning of current period

Cumulative effects of changes in accounting policies

Restated balance

Changes of items during period

(6)
0

－

0

73,30382,820

Valuationdifference on
available-forsale
securities

2,328

13,548

176,911(6)(31,921)

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

013,541

301,113

(14)

147

Total
Remeasurements
accumulatedof definedotherbenefitcomprehensive
plansincome(9,560)(7,099)Noncontrollinginterests
446

－
2,328

(14)

147

(9,560)(7,099)

446

(6)

－

－
830
830

3,159

20

20
6

-9-

(48)

(48)
98

2,214

2,214

(7,345)

3,017

3,017

(4,081)

280,919

20,679－－280,919(7,131)－

Profit attributable to non-controlling interests

Total net
assets－－

Disposal of treasury stock

Balance at end of current period(6)

Accumulated other comprehensive income

Purchase of treasury stock

Net changes of items other than shareholders' equity

20,679－Profit attributable to owners of parent

Total changes of items during period

287,571－

Dividends of surplus

Dividends paid to non-controlling interests-－

Net changes of items other than shareholders' equity

Balance at end of current period

287,571(7,131)Dividends paid to non-controlling interests
Total changes of items during period

Totalshareholders'equity

15

(12)
40
44

490

0

15

(12)

3,057

16,603

297,522

Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)

FY2016(from January 1, 2016
to December 31, 2016)

Cash flows from operating activities
Profit before income taxes

FY2017(from January 1, 2017
to December 31, 2017)

28,903

Depreciation

Impairment loss

14,268

799

-

131

Amortization of goodwill

Increase (decrease) in allowance for doubtful accounts(34)

Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset
Interest expenses

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

(352)

(286)

78

6

15

(661)

1,248

Increase (decrease) in notes and accounts payable-trade843

Other, net
Subtotal

396(10,982)

Net cash provided by (used in) operating activities(539)(1,098)

(716)

(17)

Income taxes paid

12

(3,917)366

Interest expenses paid

(206)

87

43,939Interest and dividends income received

(40)

(959)

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

1,033(1,271)-

Interest and dividend income

30,91814,870(1,812)

37,774285(12)(9,162)33,30628,885Purchase of property, plant and equipment(10,990)(12,070)

Purchase of intangible assets(1,441)(1,230)Cash flows from investing activities

Proceeds from sales of property, plant and equipment

2,307

Purchase of investment securities(454)

Proceeds from sales of investment securities

796

Net decrease (increase) in short-term loans receivable(9,990)Net cash provided by (used in) investing activities(19,460)

Other, net

311

Cash flows from financing activities-

Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Cash dividends paid

Proceeds from share issuance to non-controlling shareholders
Other, net
Net cash provided by (used in) financing activities

Cash and cash equivalents at beginning of period

49

(6)

(12)

(1)

(6,086)(7,145)

7,712

29,693

107,285- 10 -

147-

99,573

Cash and cash equivalents at end of period

(247)

7,963

(7,127)(47)

Net increase (decrease) in cash and cash equivalents

10(5,833)-

Effect of exchange rate change on cash and cash equivalents

880

(192)

(10)

Dividends paid to non-controlling interests

(733)

(239)
(2)

Purchase of treasury stock

21,355(9)

107,285
136,979

Consolidated Segment Information
I. FY2016 (from January 1, 2016 to December 31, 2016)
Information on net sales and income (loss) by reportable segment.
Business
Solutions

Net sales

Sales - external customers

334,603

Total

334,603

Sales - intersegment
Operating income
AssetsOther

12,052

10,620

Increase in Property, plantand equipment andIntangible assets

8,168

Imaging
System103,269

159,206

128,798

159,206

59,99871,021

25,5283,981

145,217

Depreciation

Amortization of goodwill-

IT
Solutions--

10,887

2,070

1,561

4,114

529

254

(Amounts less than one million yen are truncated)Industrial /Medical32,20832,208

Other

-

25

-

185

Total

25

-

569

20,627

9,194

496

120

544

357

Adjustment Consolidated

629,313-629,313654,842(25,528)

629,313306,059

191,667

497,727

25,528(25,528)

27,676--

27,676

14,870-14,87013,169-13,169

799

-

-

799

[Note]
1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Assets" corresponding to the "Adjustment" is mainly surplus investment funds of the company, such as cash and securities, the assets of
the administrative department and among others.
3. "Operating income" is equal to the "Operating income" of "Consolidated Statements of Income."
II. FY2017(from January 1, 2017 to December 31, 2017)
Information on net sales and income (loss) by reportable segment.
Business
Solutions

IT
Solutions

Imaging
SystemIndustrial /MedicalSales - external customers

338,145

107,368

152,339

34,308

Total

338,145

134,896

152,339

62,606

63,67022,504

1,083

440

Net sales

Sales - intersegment
Operating income
AssetsOther

12,238

10,277

Increase in Property, plantand equipment andIntangible assets

10,222

27,5284,559

130,213

Depreciation

Amortization of goodwill

-

-

2,326
2,510

-

11,688-706

34,308(Amounts less than one million yen are truncated)
Other

-

1,543

-

224

Total

Adjustment Consolidated

632,189-

632,189

659,718(27,528)

632,189

8,238

287,233

223,598

510,832

141

14,268

27
27

-

375

-

2

27,528(27,528)

30,406-

13,666--30,406-

14,268-13,666-[Note]
1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Assets" corresponding to the "Adjustment" is mainly surplus investment funds of the company, such as cash and securities, the assets of
the administrative department and among others.
3. "Operating income" is equal to the "Operating income" of "Consolidated 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 in accordance with the new reportable segments mentioned above.
- 11 --