April 22, 2020

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2020
Registered company name:

Canon Marketing Japan Inc.

Stock listing:Code number:Tokyo Stock Exchange, First Section
8060

URL:

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

Representative director:

Masahiro Sakata, President

Contact:

Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071

Dividend payable date (as planned):
U.S. Accounting Standards Applied:No

1.Consolidated business results for the three months ended March 31, 2020 (From January 1, 2020 to March 31, 2020)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)

Net sales
Three months ended
March 31, 2020
March 31, 2019
[Note] Comprehensive Income:

141,483%(6.3)

150,930

0.1

Millions of yen(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent
Millions of yen% Millions of yen% Millions of yen%
7,767
10.7
7,791
7.4
4,104(14.1)
7,016

88.8

7,251

76.8

4,780

89.0

Three months ended March 31, 2020 : 3,525 million yen [(48.4%)]
Three months ended March 31, 2019 : 6,830 million yen [142.8%]
Basic earnings
per share
Yen

Diluted earnings
per share
Yen

March 31, 2020

31.66

31.65

March 31, 2019

36.87

36.86

Three months ended(2) Consolidated Financial Position
Total assets
First quarter ended March 31, 2020

Millions of yen
488,249

Millions of yen
324,700

503,698

325,092

Year ended December 31, 2019
[Reference] Shareholders' equity:(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Net assets

%66.4

Yen
2,499.28

64.4

2,502.39

First quarter ended March 31, 2020 : 324,071 million yen
Year ended December 31, 2019 : 324,475 million yen

2.Dividends
Dividend per shareFirst quarter-end
Year ended December 31, 2019

Yen-

Year ending December 31, 2020-

Second quarter-end Third quarter-end
Yen
Yen
30.00

Year ending December 31, 2020-

(forecast)Year-end---

AnnualYen

Yen

30.00

60.00

-

[Note] Revision of cash dividend forecast for this period : None
[Note] Dividend for the fiscal year ending December 31, 2020 is unfixed.
3.Consolidated financial forecast for the fiscal year ending December 31, 2020

Net sales
Millions of yen

Full year-(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
Yen% Millions of yen % Millions of yen % Millions of yen %-[Note] Revision of forecast for this period : Yes[Note] Due to the COVID-19 coronavirus outbreak, it is difficult to make a reasonable financial forecast as there are many uncertain elements
now that will impact business results . Therefore, we have withdrawn the financial forecast published on January 28, 2020,
and a new forecast has yet to be determined. We will disclose the revised figures when it becomes possible to reasonably forecast businessresults.

-1-

*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( 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)
131,079,972
As of March 31, 2020 :As of December 31, 2019 :

151,079,972( ii ) Number of treasury stock at the end of the period
1,413,955
As of March 31, 2020 :As of December 31, 2019 :

21,413,743( iii ) Average number of shares
As of March 31, 2020 :

129,666,081

As of March 31, 2019 :

129,667,095* 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.

-2-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2019
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
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, netTools, 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, 2020

53,993112,666
500
33,281
206
622
170,0126,197(75)
377,403

54,914
98,880500
32,940100
607
170,0116,274(80)364,150

26,948
99
3,315
9,403
28,91831
14,09582,813

26,33096
3,256
8,903
28,35925
14,133
81,105

4,148
2
315
2
4,469

4,907
2
294
0
5,204

11,03735393
20,792
4,358
2,775(382)39,011
126,295
503,698

9,484
35
392
21,0604,224
2,963(372)
37,789124,099488,249

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2019
Liabilities
Current liabilities
Notes and accounts payable
Lease obligations
Accrued expenses
Accrued income taxes
Consumption taxes payable
Provision for bonuses
Provision for directors' bonusesProvision for product warranties
Provision for loss on order received
Other current liabilities
Total current liabilities
Long-term liabilities
Lease obligations
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

As of March 31, 2020

51,542
72
17,855
8,235
5,901
3,373
99
651
189
32,101
120,023

47,481
62
14,072
3,548
4,502
11,86320603
175
23,285
105,615103
1,042
53,956
3,480
58,582
178,606

89
1,135
53,3303,377
57,933
163,548

73,30382,820202,783(31,926)
326,979

73,30382,814
173,181(2,104)
327,194

3,929
1151(6,497)(2,504)616
325,092
503,698

2,887
(1)
55
(6,064)(3,123)629
324,700
488,249[Note](Note in the event of a notable fluctuation in the amount of stakeholders' equity)(cancellation of treasury stock)
At the Board of Directors meeting held on February 26, 2020, pursuant to the provisions of Article 178 of the Companies Act, theBoard of Directors resolved to cancel treasury stock as follows. As of March 11, 2020, 20,000,000 shares of treasury stock worth 29,822
million yen were cancelled. As a result, capital surplus fell by 5 million yen, retained earnings fell by 29,816 million yen and treasury
stock declined by 29,822 million yen. As of the end of the first quarter of the consolidated fiscal year under review, capital surplus stoodat 82,814 million yen, retained earnings at 173,181 million yen, and treasury stock at 1,413,000 shares worth 2,104 million yen.

-4-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2019(from January 1, 2019
to March 31, 2019)
Net salesCost 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 expense
Foreign exchange losses
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on sales of shares of subsidiaries and associates
Loss on valuation of investment securities
Other extraordinary losses
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 FY2020(from January 1, 2020
to March 31, 2020)

150,930
102,233
48,696
41,6807,016

141,483
94,61746,86539,097
7,767

42
25
141
95
304

58
26
65
150

2
65
68
7,251

2
33
90
127
7,791

22279
34
314

29
6
1
38
7,216
2,384
4,831
51
4,780

26
737
4767
7,338
3,191
4,146
41
4,104Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2019(from January 1, 2019
to March 31, 2019)
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-Three months of FY2020(from January 1, 2020
to March 31, 2020)

4,831

4,146707
6(0)
1,286
1,999
6,830

(1,042)(13)1433(621)
3,525

6,778
52

3,485
39

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Three months of FY2019(from January 1, 2019
to March 31, 2019)

Three months of FY2020(from January 1, 2020
to March 31, 2020)

Cash flows from operating activities
Profit before income taxes
Depreciation
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 sales of shares of subsidiaries and associates
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

7,216
3,049
(25)
1,139
(4)
8,853
(67)
221(141)
6,930(2,861)(6,327)(5,219)12,56667(2)(6,213)
6,417

7,338
2,948
1500
(5)
8,522
(85)
2(254)(14)
737
0
11,657(491)(3,037)(10,284)
17,53682(2)(7,397)
10,218Cash flows from investing activities
Payments for purchases of property, plant and equipment
Proceeds from sales 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(1,338)2(517)(5)168(5,794)
1,003(1,323)
(76)
85-

828

(60,000)(117)(61,809)0(95)(5,372)(33)(0)(4,539)(15)(4,588)11(59,969)
135,571
75,602(20)(0)(3,833)(26)(3,881)(44)920
54,49355,414

Proceeds from sales of shares of subsidiaries resulting in change inscope of consolidation
Decrease (increase) in short-term loans receivable, net.
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
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-Consolidated Quarterly Segment Information
I. Three months of FY2019(from January 1, 2019 to March 31, 2019)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
ConsumerEnterprise

25,89047,420

Area

Professional

OtherTotal

Adjustment Consolidated

150,930-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

64,586

11,677

1,355

3,022

482

1,325

7,320

(7,320)67,608

12,1602,680

158,251(7,320)150,930

800

188

7,003

12

7,016

16

2,474

25,90749,894(1,286)

3,517

3,783

150,930-[Note]
1. Other includes call center business and BPO 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 FY2020 (from January 1, 2020 to March 31, 2020)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
OtherTotalAdjustment Consolidated

ConsumerEnterprise

24,66644,676

62,796

8,314

1,028

141,483-

8

2,182

2,676

374

1,610

6,851

(6,851)

24,67446,85865,472

8,689

2,639

148,334(6,851)

141,483

5

3,447

3,895

650

(210)

7,787

(19)

7,767

Area

Professional

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

141,483-[Note]
1. Other includes call center business and BPO 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.

-8-