January 26, 2016

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 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):
March 30, 2016
U.S. Accounting Standards Applied:No
1.Consolidated business results for the year ended December 31, 2015 (From January 1, 2015 to December 31, 2015)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net salesYear ended
December 31, 2015
December 31, 2014
[Note] Comprehensive Income:Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

646,002(2.0)

26,647

6.2

28,040

5.6

15,670(2.2)%

659,4320.3

25,08747.5

26,55345.8

16,03057.7

Year ended December 31, 2015 : 15,537 million yen [(7.5)%]
Year ended December 31, 2014 : 16,794 million yen [46.6%]
Net income
per share

Diluted net income
per share

Yen

Year ended

Net income to stock
holders' equity ratio

Yen

Operating income to
net sales ratio

Ordinary income tototal assets ratio

%

%

%

December 31, 2015

120.84

-

5.7

5.8

4.1

December 31, 2014123.62

-

6.1

5.6

3.8

[Note] Investment profit (loss) on equity method: Year ended December 31, 2015 : -Year ended December 31, 2014 : (3) million yen(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

Year ended December 31, 2015
Year ended December 31, 2014
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

486,502277,43856.9

2,136.22

479,747

270,35256.3

2,082.60

Year ended December 31, 2015 : 277,008 million yen
Year ended December 31, 2014 : 270,061 million yen(3) Cash FlowsNet cash provided byoperating activities(Amounts less than one million yen are truncated)
Net cash provided by
Cash and cash equivalents
financing activities
at end of period

Net cash provided byinvesting activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended December 31, 2015

29,730(44,536)(6,224)

99,573

Year ended December 31, 2014

38,190(15,221)(4,544)

120,607

2.Dividends
Dividend per shareFirst
quarter-end

Secondquarter-end

Thirdquarter-end

Year-end

Ratio of
Payout ratio dividends to(Consolidated)
net assets

Total
dividends(annual)Annual(Consolidated)

Yen

Yen

Yen

Yen

Yen

Yen

%

%

Year ended December 31, 2014

-

15.00

-

25.00

40.00

5,187

32.4

2.0

Year ended December 31, 2015

-

20.00

-

-

-

-

-

-

Year ending December 31, 2016
(forecast)--

3.Consolidated financial forecast for the fiscal year ending December 31, 2016

-

-

-

(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

Full year-

Millions of yen%

Millions of yen%

Millions of yen%

660,000

2.2

27,0001.3

28,200

0.6

-1-

%

Yen

17,700 13.0

136.50Millions of yen

* Others(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries) :None(2) 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(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)
As of December 31, 2015 :

151,079,972

As of December 31, 2014 :

151,079,972( ii ) Number of treasury stock at the end of fiscal year
As of December 31, 2015 :

21,407,663

As of December 31, 2014 :

21,404,708( iii ) Average number of shares
As of December 31, 2015 :

129,673,421

As of December 31, 2014 :

129,677,416-2-

(Reference) Summary of Non-Consolidated Financial Results
1.Non-Consolidated business results for the year ended December 31, 2015 (From January 1, 2015 to December 31, 2015)(1) Non-Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net salesYear ended

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2015

495,699(2.5)

15,876(2.0)

20,096

2.1

11,8491.7

December 31, 2014

508,551(0.7)

16,19741.8

19,69031.4

11,65543.8

Net income
per share
Year ended

Millions of yen%

Diluted net income
per share
Yen

Yen

December 31, 2015

91.38

-

December 31, 2014

89.88

-

(2) Non-Consolidated Financial Position(Amounts less than one million yen are truncated)Year ended December 31, 2015
Year ended December 31, 2014
[Reference] Shareholders' equity:

Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%

Yen

476,136

264,98055.7

2,043.47

471,326

258,83254.9

1,996.00

Year ended December 31, 2015 : 264,980 / Year ended December 31, 2014 : 258,832

Disclaimer :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-

Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2014

As of December 31, 2015

AssetsCurrent assets
Cash and deposits

36,107

36,773

Notes and accounts receivable-trade

128,473

125,906

Securities

84,50062,800

Merchandise and finished goods

26,471

28,327488

791

Work in process
Raw materials and supplies

855

887

Deferred tax assets

4,860

5,280

Short-term loans receivable

50,05480,054

Other

7,899

6,922

Allowance for doubtful accounts

(113)

(201)

339,596

347,542

48,152

46,926

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

9175

Tools, furniture and fixtures, net

4,374

4,357

Rental assets, net

10,637

11,511Land

36,30135,939Leased assets, net
Total property, plant and equipment

584

400

100,059

99,310Intangible assets
Goodwill

1,090

820

Software

9,362

8,268

Leased assets

116

76

Right of using facilities

317

317

Other

20

15

10,906

9,499

6,292

7,789

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

11

10

Deferred tax assets

15,04014,768

Guarantee deposits

5,338

5,274

Other

2,859

2,605

Allowance for doubtful accounts

(357)

(298)

Total investments and other assets

29,18430,150140,151

138,959

479,747

486,502

Total non-current assets
Total assets-4-Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2014

As of December 31, 2015

Liabilities
Current liabilities
Notes and accounts payable-trade

101,337

101,834

Lease obligations

343

222

Accrued expenses

24,115

22,118

Income taxes payable

5,918

6,201

Accrued consumption taxes

7,619

5,131

Provision for bonuses

3,346

3,506

Provision for directors' bonuses

119

130

Provision for product warranties

679

529

Provision for loss on order received

21

4

Other

21,27019,999Total current liabilities

164,770

159,678

Lease obligations

445

321

Deferred tax liabilities

540

581

Deferred tax liabilities for land revaluation

29

26

Accrued long service rewards for employees

997

943

Net defined benefit liability

37,862

42,822

Other

4,748

4,689

Non-current liabilities

Total non-current liabilities
Total liabilities

44,62349,385

209,394

209,064

73,30373,303

Net assets
Shareholders' equity
Capital stock
Capital surplus

82,81982,820Retained earnings

143,864

151,036

Treasury shares(31,905)(31,911)

Total shareholders' equity

268,082

275,247

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

1,704

Deferred gains or losses on hedges

2,775
-

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

-5-

0

272

224

1

(1,240)

1,978

1,760

291

430

270,352

277,438

479,747

486,502

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2014(from January 1, 2014
to December 31, 2014)

FY2015(from January 1, 2015
to December 31, 2015)

Net sales

659,432

646,002

Cost of sales

425,895

412,897

Gross profit

233,536

233,104

Selling, general and administrative expenses

208,448

206,457

Operating income

25,087

26,647

Interest income

263

288

Dividend income

99

118

Insurance income

596

598

Non-operating income

Other

797

763

1,756

1,770

Interest expenses

32

26

Share of loss of entities accounted for using equity method

3

Total non-operating income
Non-operating expenses

Foreign exchange losses

-

123

Other

254

Total non-operating expenses

290

376

26,55328,040Gain on sales of non-current assets

71

348

Gain on sales of investment securities

4

Ordinary income

226

Extraordinary income
82-

Gain on sales of shares of subsidiaries and associates

56

Insurance income on disaster

331

Settlement received

255

34

Gain on bargain purchase

12

Other
Total extraordinary income

5

38

679

559

Loss on sales and retirement of non-current assets

216

368

Special extra retirement payments

13-

Extraordinary losses
524-Group reorganization expenses

102

Loss on disaster

390

14

Impairment loss

52

Loss on litigation

600

-

0

-

Loss on valuation of golf club membership
Other

148

89

1,374

1,102

Income before income taxes and minority interests

25,85827,497

Income taxes-current

8,686

10,301

Income taxes-deferred

1,108

1,468

Total income taxes

9,794

11,769

Income before minority interests

16,063

15,728

Total extraordinary losses

Minority interests in income
Net income

-6-

33

57

16,03015,670Consolidated Statements of Comprehensive Income(Amounts less than one million yen are truncated)
FY2014(from January 1, 2014
to December 31, 2014)
Income before minority interests

FY2015(from January 1, 2015
to December 31, 2015)

16,063

15,728Other comprehensive income
Valuation difference on available-for-sale-securities

566

Deferred gains or losses on hedges

1,071
-

Foreign currency translation adjustment

164

Remeasurements of defined benefit plans, net of tax-

Total other comprehensive income

0(20)(1,242)

731

(190)

16,794

15,537

Comprehensive income attributable to owners of parent

16,77015,451

Comprehensive income attributable to minority interests

24

85

Comprehensive income
Comprehensive income attributable to-7-Consolidated Statements of Shareholders' Equity
I. FY2014 (from January 1, 2014 to December 31, 2014)(Amounts less than one million yen are truncated)
Shareholders' equity
Capital stock
Balance at beginning of current period

Capital surplus

Retained earnings

Total shareholders'equityTreasury stocks

73,30382,819131,331(31,896)

255,557

73,30382,819131,331(31,896)

255,557

Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period
Dividends of surplus(3,501)

Net income

16,030Purchase of treasury stocks
Disposal of treasury stocks

0

Change of scope of equity method(3,501)
16,030
(9)

(9)

0

0

3

3

Minority interests in income－

Dividends paid to minority shareholders－

Net changes of items other than shareholders' equity－

Total changes of items during period
Balance at end of current period－

012,532(8)

12,52473,30382,819143,864(31,905)

268,082

Accumulated other comprehensive income

Balance at beginning of current period

Valuationdifference on
available-for-salesecurities

Foreign currencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total accumulated
Minority interests
othercomprehensive
income

1,138

98

－

1,236

281

257,075

1,138

98

－

1,236

281

257,075

Total net assets

Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period
Dividends of surplus－(3,501)

Net income－

16,030Purchase of treasury stocks－(9)

Disposal of treasury stocks－

0

Change of scope of equity method－

Minority interests in income

－

33

33

Dividends paid to minority shareholders

－

(12)

(12)

742

(9)

732

Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

3

566

174

1

566

174

1

742

10

13,277

1,704

272

1

1,978

291

270,352-8-

Consolidated Statements of Shareholders' Equity
II.

FY2015 (from January 1, 2013 to December 31, 2015)

Capital stock
Balance at beginning of current period

73,303(Amounts less than one million yen are truncated)
Shareholders' equity
Total
CapitalRetained
Treasuryshareholders'surplusearnings
stocksequity82,819Cumulative effects of changes in accounting policies
Restated balance

143,864(31,905)(2,662)73,30382,819Changes of items during period

141,201

268,082(2,662)(31,905)

265,419(2,662)(2,662)

Dividends of surplus(5,835)(5,835)

Net income

15,67015,670Purchase of treasury stocks(7)

Disposal of treasury stocks

0

0

(7)
0

Sales of shares of consolidated subsidiaries－

Minority interests in income－

Dividends paid to minority shareholders－

Net changes of items other than shareholders' equity－

Total changes of items during period
Balance at end of current period

Balance at beginning of current period

－

0

9,834

(6)

9,828

73,30382,820151,036(31,911)275,247

Valuationdifference on
available-forsale
securities
1,704

Accumulated other comprehensive income
Total
DeferredForeign
Remeasurem
accumulated
gains orcurrency
ents ofother
losses ontranslation
definedhedgesadjustment benefit plans comprehensi
ve income
272
1
1,978

Minority
interests

291

Cumulative effects of changes in accounting policies
Restated balance

Total net
assets270,352(2,662)

1,704

-

272

1

1,978

291

267,690

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

Net income－

15,670Purchase of treasury stocks－(7)

Disposal of treasury stocks－

0

Sales of shares of consolidated subsidiaries

63

63

Minority interests in income

57

57

Dividends paid to minority shareholders

(10)

(10)

Net changes of items other than shareholders' equity

1,070

0

(47)

(1,242)

(218)

27

(190)

Total changes of items during period

1,070

0

(47)

(1,242)

(218)

138

9,748

Balance at end of current period

2,775

0

224

(1,240)

1,760

430

277,438-9-

Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
FY2014(from January 1, 2014
to December 31, 2014)

FY2015(from January 1, 2015
to December 31, 2015)

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

25,85827,497

Depreciation

17,09015,524

Impairment loss
Amortization of goodwill

5

2

138

242

Gain on bargain purchase

(12)

-

Increase (decrease) in allowance for doubtful accounts

(114)

29

Increase (decrease) in provision for retirement benefits

(474)

(917)

Interest and dividend income

(362)

(407)

Interest expenses

32

26

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

95

(25)

Loss (gain) on sales of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories

(2)

(70)

4,847

2,599

303

(2,161)

Increase (decrease) in notes and accounts payable-trade(7,243)496

Other, net

3,617(2,971)

Subtotal

43,77839,865Interest and dividends income received

362

406

Interest expenses paid

(32)

(26)

Income taxes paid

(5,918)(10,514)

Net cash provided by (used in) operating activities

38,19029,730(10,332)(12,384)439

801(3,353)(3,002)

(180)

(131)

32

168

(939)

-

239

125

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(1,278)-Net decrease (increase) in short-term loans receivable(40)(29,999)

Decrease (increase) in time deposits

109-

Other, net

82

(112)

(15,221)(44,536)

Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable

(141)

-

Repayments of finance lease obligations

(527)

(375)

(9)

(7)

(3,501)(5,832)

(12)

(10)

Purchase of treasury shares
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(353)

0

(4,544)(6,224)(0)(2)

Net increase (decrease) in cash and cash equivalents

18,424(21,033)

Cash and cash equivalents at beginning of period

102,182

120,607

Cash and cash equivalents at end of period

120,607

99,573- 10 -

Consolidated Segment Information
I. FY2014 (from January 1, 2014 to December 31, 2014)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System

115,716

185,406

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

330,233-

Sales - intersegment
Total
Operating income (loss)
Assets

330,233

33,03328,024-51--

28,02451

659,432-

33,033(33,033)

692,465(33,033)

148,750

185,406

8,206

3,163

14,257(977)

438

25,087

138,579

65,03977,93919,725

9,395

310,679

3,065

2,489

484

174

169,067

659,432
659,432
25,087479,747

Other
Depreciation

10,876-

Amortization of goodwill
Increase in Property, plantand equipment andIntangible assets

10,089

102

-

2,320

1,322

36

-

755

40

17,090-17,090

138

-

138

14,528-

14,528[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
II. FY2015 (from January 1, 2015 to December 31, 2015)
Information on net sales and income (loss) by reportable segment.
Business
Solutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System112,621

178,701

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

326,870-

Sales - intersegment
Total
Operating income (loss)
Assets326,870

28,57927,153-656-

27,153656

646,002-

28,579(28,579)

674,582(28,579)

141,200

178,701

8,991

4,135

13,841(742)

421

26,647140,51065,30474,981

19,212

9,394

309,403

2,151

1,996

527

169

177,098

646,002
646,002
26,647
486,502

Other
Depreciation

10,679-Amortization of goodwill
Increase in Property, plantand equipment andIntangible assets

10,621

97
2,398

1,080

145
445

7

15,524-

15,524

242

-

242

14,553-

14,553[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.

- 11 -