October 23, 2020

Summary Report of Consolidated Financial Results
for the third quarter ended September 30, 2020

Registered company name:
Stock listing:

Canon Marketing Japan Inc.

Code number:Tokyo Stock Exchange, First Section
8060

Representative director:

Masahiro Sakata, President

URL:

Contact:

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

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

Shiro Hamada, Director Vice President

Tel. +81-3-6719-9071

No

1.Consolidated business results for the nine months ended September 30, 2020 (From January 1, 2020 to September 30, 2020)(1) Consolidated Results of Operations

Nine months ended

September 30, 2020
September 30, 2019

[Note] Comprehensive Income:Nine months ended(Amounts less than one million yen are truncated)

Net sales%(15.1)

Millions of yen

392,929
463,029(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent%(14.7)

Millions of yen

20,3893.4

23,88924,06550.2

24,914

Basic earnings
per share

Yen

Diluted earnings
per share

110.73

16,50642.9

Yen

127.29(2) Consolidated Financial Position
Total assets[Reference] Shareholders' equity:

14,358110.71

127.30

September 30, 2019Year ended December 31, 2019

44.0

Nine months ended September 30, 2020 : 15,826 million yen [(22.2)%]%(13.0)

Millions of yen

Nine months ended September 30, 2019 : 20,334 million yen [54.3%]

September 30, 2020

Third quarter ended September 30, 2020%(3.4)

Millions of yen

Millions of yen
488,178
503,698(Amounts less than one million yen are truncated)
Equity ratio
Net asset per shareNet assets

Millions of yen
334,411%325,092

Third quarter ended September 30, 2020 : 333,749 million yen

68.4
64.4

Yen
2,573.88
2,502.39

Year ended December 31, 2019 : 324,475 million yen

2.Dividends
First quarter-end
Yen-

Year ended December 31, 2019

Second quarter-end
Yen

30.00

-

Year ending December 31, 2020
Year ending December 31, 2020

20.00

Dividend per share
Third quarter-end-

Yen-(forecast)Year-end

Yen

AnnualYen

30.00

60.00

30.00

50.00

[Note] Revision of cash dividend forecast for this period : Yes

3.Consolidated financial forecast for the fiscal year ending December 31, 2020
Net sales

Full year%
537,000 (13.5)

Millions of yen[Note] Revision of forecast for this period : Yes(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

24,000-1-%(26.0)%
27,700 (18.4)

Millions of yen%
16,800 (24.5)

Millions of yen

Yen

129.56

*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)
131,079,972
As of September 30, 2020 :As of December 31, 2019 :

151,079,972( ii ) Number of treasury stock at the end of the period
1,412,406
As of September 30, 2020 :As of December 31, 2019 :( iii ) Average number of shares

As of September 30, 2020 :As of September 30, 2019 :

21,413,743

129,667,198
129,666,867* 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, netMachinery, equipment and vehicles, netTools, furniture and fixtures, net
Rental assets, netLand
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 September 30, 2020

53,993112,666
500
33,281
206
622
170,012
6,197(75)377,403

68,25085,403500
29,145122578
170,0116,578(70)
360,519

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

26,317
90
3,106
7,682
28,35918
18,287
83,863

4,148
2
315
2
4,469

5,109
1
294
0
5,405

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

11,21435
388
20,113
4,045
2,968
(376)
38,389127,658
488,178

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' bonuses
Provision 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[Note]

As of September 30, 2020

51,542
72
17,855
8,235
5,901
3,373
99651
189
32,101
120,023

39,51456
12,493
2,311
4,507
13,29647516
53
24,062
96,861103
1,042
53,956
3,480
58,582
178,606

83
867
52,843
3,112
56,905
153,767

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

73,30382,814
180,842(2,102)334,857

3,929
11
51
(6,497)(2,504)616
325,092
503,698

3,940
(42)
27
(5,033)(1,108)661
334,411488,178(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.

-4-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)

Nine months of FY2019(from January 1, 2019
to September 30, 2019)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Gain on investments in partnership
Subsidies for employment adjustment
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
Gain on sales of investment securities
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and retirement of non-current assets
Loss on impairment of fixed assets
Loss on sales of shares of subsidiaries and associates
Loss on valuation of investment securities
Loss on COVID-19
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes

463,029
313,953
149,075
125,186
23,889ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-5-

Nine months of FY2020(from January 1, 2020
to September 30, 2020)

392,929
261,329
131,600
111,211
20,389144110
481
199
232
1,168

180109451
161
2,748
208
3,859

9133
142
24,914926
148
183
24,065

92
11283
230
20
533

169
82
8
4
266
24,659
8,072
16,58780
16,506

956
737
270
4
1,970
22,628
8,192
14,43577
14,358

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)

Nine months of FY2019(from January 1, 2019
to September 30, 2019)16,587

Nine months of FY2020(from January 1, 2020
to September 30, 2020)

14,435

875
(0)
(41)
2,914
3,747
20,33411(53)
(30)
1,463
1,390
15,826

20,25578

15,75471

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 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
Cash 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

Proceeds from sales of shares of subsidiaries resulting in change
in scope 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
Other, net
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-

Nine months of FY2019(from January 1, 2019
to September 30, 2019)

Nine months of FY2020(from January 1, 2020
to September 30, 2020)

24,659
9,172
82
(35)
3,347
(11)
9,660
(255)
9
154
(2)
(199)
10,321(2,108)(24,981)(7,598)22,217253(9)(10,943)
11,51822,628
8,415
(4)
1,519
(13)
9,956
(290)
9(213)
(230)
737
(161)
25,144
3,356(11,001)(11,571)
48,281287(9)(13,503)
35,055(5,748)10(1,321)(1,205)275(12,843)
1,006(3,115)(279)
538(69,998)(278)(78,266)

0(288)(14,152)(87)(1)(8,421)(15)(2)(8,528)(21)(75,298)
135,571
60,273(56)(1)(6,482)(26)
0(6,567)(78)
14,25654,49368,750-828

Consolidated Quarterly Segment Information
I. Nine months of FY2019 (from January 1, 2019 to September 30, 2019)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

ConsumerEnterprise

Area

Sales - external customers

91,800142,587

193,046

32,573

Total

91,843

149,589

202,180

33,864

Net sales

Sales - intersegment

Operating income (loss)[Note]

42

2,577

7,001

8,267

9,134

11,653

Professional

1,290

1,675

OtherTotal

3,021

463,0297,150

484,628

4,129(382)21,59823,791

Adjustment Consolidated-

463,029(21,598)

463,029(21,598)
98-

23,889

1. Other includes call center business and BPO service business, which are not included 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. Nine months of FY2020 (from January 1, 2020 to September 30, 2020)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

ConsumerEnterprise

Area

Sales - external customers

81,419119,571

167,041

22,515

Total

81,453

126,550

174,304

23,624

Net sales

Sales - intersegment

Operating income (loss)[Note]

33

5,780

6,979

6,739

7,263

7,290

Professional

1,108

1,764

OtherTotal

2,382

392,9297,118

413,050

4,736(1,138)20,121

20,436

Adjustment Consolidated-(20,121)(20,121)(46)

392,929-392,929
20,389

1. Other includes call center business and BPO service business, which are not included 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-