October 24, 2018

Summary Report of Consolidated Financial Results
for the third quarter ended September 30, 2018

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, 2018 (From January 1, 2018 to September 30, 2018)(1) Consolidated Results of Operations

Nine months ended

September 30, 2018
September 30, 2017

[Note] Comprehensive Income:Nine months ended

September 30, 2018

(Amounts less than one million yen are truncated)

Net sales%(1.8)

Millions of yen

447,923456,245

0.6(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%
15,899(13.6)
17,306(10.5)
11,551 (7.7)
18,40916.1

Basic earnings
per shareYen

Diluted earnings
per shareYen

96.52-89.09Total assets

Year ended December 31, 2017

12,51525.2-(2) Consolidated Financial Position[Reference] Shareholders' equity:

14.6

Nine months ended September 30, 2017 : 11,656 million yen [11.0%]

September 30, 2017

Third quarter ended September 30, 201819,334

Nine months ended September 30, 2018 : 13,177 million yen [13.1%]

Millions of yen
495,017
510,832

Net assets

Millions of yen
302,906(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share%

297,522

Third quarter ended September 30, 2018 : 302,371 million yen

61.1
58.1

Yen
2,331.90
2,290.70

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

2.Dividends
First quarter-end
Yen

Year ended December 31, 2017-

Year ending December 31, 2018

Dividend per share

Second quarter-end Third quarter-end
Yen
Yen
25.00
25.00

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

Yen

Annual

Yen

35.00

60.00

35.00

60.00

[Note] Revision of cash dividend forecast for this period : No

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

Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Net sales
Operating income Ordinary income
to owners of parent
per share
Yen
Millions of yen %Millions of yen
Millions of yen %% Millions of yen %620,000 (1.9)
27,000 (11.2)
28,500 (9.5)
19,000 (8.1)
146.53[Note] Revision of forecast for this period : Yes-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( 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 September 30, 2018 :As of December 31, 2017 :

151,079,972( ii ) Number of treasury stock at the end of the period
21,412,516
As of September 30, 2018 :As of December 31, 2017 :( iii ) Average number of shares

As of September 30, 2018 :As of September 30, 2017 :

21,411,513

129,667,869
129,670,167* 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, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
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, 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, 2018

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

73,730104,319
40,50032,627
1,104
694
4,034
120,0197,945(124)
384,850

30,825
251
3,732
11,05829,016116
89
75,09029,233250
3,117
11,081
28,91880
308
72,991

5,153
12
316
2
5,485

4,359
7
316
2
4,685

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

10,15331
400
15,025
4,478
2,842(441)
32,490110,167
495,017

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)

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 December 31, 2017

As of September 30, 2018

100,94014712518,168
6,289
4,586
3,443
128
487
132
22,949157,398

83,339192
113
13,7572,507
3,870
12,90271
464
277
19,844
137,340

163
438
961
49,604
4,743
55,911
213,310130925
49,396
4,318
54,770
192,11173,30382,820176,911(31,921)301,11373,30382,820180,683(31,923)
304,882

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

3,951
29
97
(6,589)(2,511)534
302,906
495,017-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)

Nine months of FY2017(from January 1, 2017
to September 30, 2017)

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
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 investments in securities
Gain on sales of shares of subsidiaries and associatesOther extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on impairment of fixed assets
Loss on valuation of investments in securities
Special extra retirement payments
Expenses for restructuring of business bases
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes

Nine months of FY2018(from January 1, 2018
to September 30, 2018)456,245
293,665
162,580
144,170
18,409
124
90
546
384
1,145

447,923
290,889
157,034
141,134
15,899

-926
185
220
19,334864539
63
1,467
825
792
5
100

9
177
187
17,306-17
1,740
19,060
6,553
12,507(8)12,515

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

153
115
544
455
324
1,593-

124
489
214
828
257
15
94
57
59
485
17,6506,044
11,60654
11,551-

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 FY2017(from January 1, 2017
to September 30, 2017)12,507

Nine months of FY2018(from January 1, 2018
to September 30, 2018)

11,606

143
19
(61)
(952)
(851)
11,656

792
23
(0)
756
1,571
13,177

11,676(20)

13,12255

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
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 changein 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
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
Proceeds from share issuance 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 FY2017(from January 1, 2017
to September 30, 2017)

Nine months of FY2018(from January 1, 2018
to September 30, 2018)

19,06010,676
792
(36)
(838)
(190)
10,318
(214)
9(41)
(539)
25
18,314(3,640)(14,991)(7,730)30,971214(9)(8,819)22,357

17,65010,196
15
141
947
(50)
9,467
(268)
9
131(488)(455)
21,087(544)(17,606)(9,035)31,197268(9)(8,676)22,780(8,231)
19,988
(897)
(726)
822

(8,109)255(1,139)
(668)
1,490

(29,989)(242)(19,277)(30,005)(29)(37,679)

147
(153)
(4)
(7,133)(12)49(0)(7,107)(19)(4,046)107,285
103,239

45
(99)
(2)
(7,782)(11)
0(7,851)
1(22,749)
136,979
114,230-526

Consolidated Quarterly Segment Information
I. Nine months of FY2017 (from January 1, 2017 to September 30, 2017)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

Consumers

Enterprise

Area

Sales - external customers

109,117

123,624

183,653

38,045

Total

109,329

131,142

193,415

40,014

Net sales

Sales - intersegment

Operating income (loss)[Note]

212

5,691

7,518

5,478

9,761

8,007

Professional

1,968(1,161)

Other

Total

Adjustment Consolidated

1,805

456,245-456,2455,313

479,214(22,969)

456,245

3,508
328

22,96918,344(22,969)65-

18,409

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. Nine months of FY2018 (from January 1, 2018 to September 30, 2018)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment

Consumers

Enterprise

Area

Sales - external customers

96,274

130,579

181,137

37,912

Total

96,343

139,114

190,787

40,037

Net sales

Sales - intersegment

Operating income (loss)[Note]

68

377

8,535

6,759

9,649

9,235

Professional

2,124(625)OtherTotal

2,019

447,9235,200

471,482

3,180
122

23,55815,869Adjustment Consolidated-447,923(23,558)

447,923(23,558)
29-

15,899

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.
*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.
We established the BPO Management Center in July 2018 to strengthen the BPO service business. As a result, the reporting segment for
Canon BizAttenda Inc., which engages mainly in the BPO service business, was changed from “Enterprise” to "Other."
Results for fiscal 2017 and segment information for the January - June results in fiscal 2018 are presented after they are prepared based on theclassification method applicable after the change.

-8-