January 28,2014

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 2013

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
Masami Kawasaki, President
Yo Shibasaki, Director Senior Vice President
Tel. +81-3-6719-9071
Dividend payable date (as planned):
March 28, 2014
U.S. Accounting Standards Applied:No
1.Consolidated business results for the year ended December 31, 2013 (From January 1, 2013 to December 31, 2013)(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, 2013
December 31, 2012
[Note] Comprehensive Income:Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

657,215(0.3)

17,012

1.3

18,2100.6

10,167(3.9)%

659,218

4.2

16,80299.0

18,108

69.7

10,578

56.4

Year ended December 31, 2013 : 11,452 million yen [5.9%]
Year ended December 31, 2012 : 10,814 million yen [60.6%]
Net income
per share

Diluted net income Net income to stock
per share
holders' equity ratio

YenYear ended

Yen

Operating income tonet sales ratio

Ordinary income tototal assets ratio%%%

December 31, 2013

76.67

-

4.0

3.9

2.6

December 31, 2012

77.45

-

4.2

4.0

2.5

[Note] Equity in earnings/losses of affiliates: Year ended December 31, 2013 : - Year ended December 31, 2012 : * Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses are deductedfrom net sales in order to present them on a net basis.
Accordingly, figures after retrospective reclassification in accordance with such changes are presented for FY2012 and thereafter.

(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, 2013
Year ended December 31, 2012
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

467,076

257,07555.0

1,980.22

462,574

254,08854.9

1,907.50

Year ended December 31, 2013 : 256,794 million yen
Year ended December 31, 2012 : 253,862 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, 2013

28,780(25,757)(9,105)102,182

Year ended December 31, 2012

33,767(16,066)(11,813)108,259

2.Dividends
Dividend per share

Dividend per shareFirstquarter-end

Secondquarter-end

Thirdquarter-end

Year-end

AnnualTotal
dividends(annual)Ratio of
Payout ratio dividends tonet assets

Yen

Yen

Yen

Yen

Yen

Yen%%

Year ended December 31, 2012

-

10.00

-

14.00

24.00

3,236

31.0

1.3

Year ended December 31, 2013

-

12.00

-

12.00

24.00

3,153

31.3

1.2

-

12.00

-

12.00

24.00

Year ending December 31, 2014
(forecast)

3.Consolidated financial forecast for the fiscal year ending December 31, 2014

(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

25.9

Millions of yen%

Millions of yen%

Millions of yen%

673,200

2.4

18,80010.5

19,900

9.3-1-Millions of yen%

12,000 18.0

Yen

92.54

* 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 ) :Yes( iii ) Changes in accounting estimates :Yes( 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, 2013 :

151,079,972

As of December 31, 2012 :

151,079,972( ii ) Number of treasury stock at the end of fiscal year
As of December 31, 2013 :

21,400,070

As of December 31, 2012 :

17,993,202( iii ) Average number of sharesYear ended December 31, 2013 :

132,624,059

Year ended December 31, 2012 :

136,577,235-2-

(Reference) Summary of Non-Consolidated Financial Results
1.Non-Consolidated business results for the year ended December 31, 2013 (From January 1, 2013 to December 31, 2013)(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, 2013

511,959

0.0

11,426

3.2

14,980

8.1

8,104

8.6

December 31, 2012

511,767

0.2

11,80736.4

13,857

21.2

7,463

59.1

Net income
per share
Year ended%

Diluted net income
per share
Yen

December 31, 2013

Millions of yen

Yen

61.11

-December 31, 2012
54.65
* Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses are deductedfrom net sales in order to present them on a net basis.
Accordingly, figures after retrospective reclassification in accordance with such changes are presented for FY2012 and thereafter.

(2) Non-Consolidated Financial Position(Amounts less than one million yen are truncated)Year ended December 31, 2013
Year ended December 31, 2012
[Reference] Shareholders' equity:

Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%Yen

458,957

250,09154.5

1,928.53

453,118

249,59355.1

1,875.42

Year ended December 31,2013 : 250,091 / Year ended December 31, 2012 : 249,593

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, 2012

As of December 31, 2013

AssetsCurrent assets
Cash and deposits

23,40620,082

Notes and accounts receivable-trade127,648

132,696

Short-term investment securities

85,02982,200

Merchandise and finished goods

27,32826,841

575

578

Work in processRaw materials and supplies

923

814

Deferred tax assets

4,708

5,088

Short-term loans receivable

40,00250,000

Other

7,214

6,823

Allowance for doubtful accounts

(230)

(188)

316,608

324,938

49,26549,126

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net

12

9

4,687

4,510

Rental assets, net

8,217

9,340

Land

36,34236,012

Lease assets, net

1,038

685

Total property, plant and equipment

99,564

99,684

Intangible assets
Goodwill

61447

Software15,376

12,006

Lease assets

176

93

Right of using facilities

317

316

Other5429

15,986

12,894

4,108

5,303

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

23

11

Deferred tax assets

17,596

16,084

Guarantee deposits

6,202

5,571

Other

2,984

2,981

Allowance for doubtful accounts

(501)

(393)

Total investments and other assets

30,41529,559145,965

142,137

462,574

467,076

Total noncurrent assets
Total assets-4-Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2012

As of December 31, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade104,162

108,498

Lease obligations

586

446

Accrued expenses

25,02824,976

Income taxes payable

5,122

2,996

Accrued consumption taxes

2,680

2,965

Provision for bonuses

2,989

3,506

Provision for directors' bonuses

63

65

Provision for product warranties

764

654

Provision for loss on order received

2084

Other

21,97920,719Total current liabilities

163,397

164,914

Noncurrent liabilities
Long-term loans payable-73

Lease obligations

859

454

Deferred tax liabilities

569

579

Deferred tax liabilities for land revaluation

3131

Provision for retirement benefits

37,80038,233

Provision for directors' retirement benefits

1,046

Accrued long service rewards for employees

-900

933

Other

3,880

4,780

Total noncurrent liabilities

45,08845,086

208,486

210,000

Capital stock

73,30373,303

Capital surplus

82,81982,819Retained earnings

124,624

131,331

Treasury stock(26,891)(31,896)

Total shareholders' equity

253,855255,557

Valuation difference on available-for-sale securities

61

1,138

Foreign currency translation adjustment

(54)

98

6

1,236

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-5-225281

254,088257,075

462,574

467,076

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2012(from January 1, 2012
to December 31, 2012)

FY2013(from January 1, 2013
to December 31, 2013)Net sales

659,218

657,215

Cost of sales

438,333

437,005

Gross profit

220,884

220,209

Selling, general and administrative expenses

204,082

203,197

Operating income

16,802

17,012285

251

Non-operating income
Interest income
Dividends income

97

95

Insurance income

639

648

Other742

655

1,764

1,650

Total non-operating income
Non-operating expenses
Interest expenses

75

30

Foreign exchange losses

43120

Other338

302

Total non-operating expenses

458

453

18,10818,210Gain on sales of noncurrent assets

115

25

Gain on negative goodwill

131

Gain on sales of investment securities

116

Ordinary income
Extraordinary income

Other
Total extraordinary income

603

0

1364

629

518

638

Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss

0

Special extra retirement payments

5-597

Office transfer expenses

142

203

Expenses related to changing in business name149

3

Loss on valuation of golf club membership

120

Loss on valuation of investment securities

38

Loss on cancellation of lease contracts

0

Other

82

Total extraordinary losses

336

944

1,785

Income before income taxes and minority interests

17,52817,054

Income taxes-current

5,890

6,330

Income taxes-deferred

1,035

517

Total income taxes

6,925

6,848

Income before minority interests

10,603

10,206

Minority interests in income
Net income-6-25

38

10,578

10,167

Consolidated Statements of Comprehensive Income(Amounts less than one million yen are truncated)
FY2012(from January 1, 2012
to December 31, 2012)
Income before minority interests

FY2013(from January 1, 2013
to December 31, 2013)

10,603

10,206125

1,077

Other comprehensive income
Valuation difference on available-for-sale-securities
Deferred gains or losses on hedges

0

Foreign currency translation adjustment

85

Total other comprehensive income
Comprehensive income

168

211

1,246

10,814

11,452

10,780

11,3973454

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-7-Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
FY2012(from January 1, 2012
to December 31, 2012)

FY2013(from January 1, 2013
to December 31, 2013)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

17,52817,054

Depreciation and amortization

16,317

17,447

Impairment loss

05

Amortization of goodwill

46252

Gain on negative goodwill(131)-Increase (decrease) in allowance for doubtful accounts

70(150)

Increase (decrease) in provision for retirement benefits

630

483

Increase (decrease) in provision for directors' retirement benefits

139(1,046)

Interest and dividends income(382)(347)

Interest expenses

7530

Loss (gain) on sales and retirement of property, plant and equipment278510(110)(598)

Decrease (increase) in notes and accounts receivable-trade

Loss (gain) on sales of investment securities(4,689)(4,730)Decrease (increase) in inventories(2,301)

432

Increase (decrease) in notes and accounts payable-trade

4,115

4,191

Other, net

3,963

3,541

Subtotal

35,96736,879Interest and dividends income received

379

349

Interest expenses paid

(76)

(30)

Income taxes paid

(2,504)(8,417)

Net cash provided by (used in) operating activities

33,76728,780Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

1930(15,753)(13,691)665

326(2,767)(3,512)

Purchase of investment securities

(14)

(194)

Proceeds from sales of investment securities
Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation

219

1,307

Net decrease (increase) in short-term loans receivable

27

Purchase of intangible assets

Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investing activities-44(9,998)

(16)

47

1,552

(116)

(16,066)(25,757)(2,180)-Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

(617)

(631)

Purchase of treasury stock

Repayments of finance lease obligations(5,104)(5,005)

Cash dividends paid

(2,746)(3,458)Cash dividends paid to minority shareholders

(8)

(9)

Other, net(1,155)0

Net cash provided by (used in) financing activities(11,813)(9,105)

Effect of exchange rate change on cash and cash equivalents

04Net increase (decrease) in cash and cash equivalents

5,887(6,077)

Cash and cash equivalents at beginning of period

102,372

108,259

Cash and cash equivalents at end of period

108,259

102,182-8-Consolidated Segment Information
I. FY2012 (from January 1, 2012 to December 31, 2012)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Imaging
System105,418

192,003

Industrial
Equipment

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

330,919-

Sales - intersegment
Total
Operating income (loss)
Assets

330,919

25,58030,673-130,999

192,003203-

30,673

203

659,218-

25,580(25,580)

684,798(25,580)

6,299

195

10,917(1,201)591

16,802

143,91163,86477,447

18,73911,911

315,873

2,661

146,700

659,218
659,218
16,802
462,574

Other
10,287

2,584

Amortization of goodwill

1461

Increase in Property, plantand equipment andIntangible assets

8,503

11,303

Depreciation

542-

242
-

1,629

491

IT
Solutions

Imaging
SystemIndustrial
Equipment

112,049

191,71933

16,317-

16,317462-

462

21,961-

21,961[Note] "Other" includes shared service businesses.
II. FY2013 (from January 1, 2013 to December 31, 2013)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)
Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

327,263-

Sales - intersegment
Total
Operating income (loss)
Assets327,263

30,25026,106-

67-

26,10667657,215-

30,250(30,250)

687,466(30,250)

142,299

191,729

5,535

387

12,491(1,765)364

17,012

135,459

66,65981,880

19,075

11,089314,164

3,185

2,811

152,912657,215
657,215
17,012
467,076

Other
Depreciation

10,811-

Amortization of goodwill
Increase in Property, plantand equipment andIntangible assets

9,284

52
2,926

461
-

1,654

177
-

539

12

17,447-

17,44752-

52

14,416-

14,416[Note] "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
[Note] Starting from FY2013, the segment name of the Consumer Imaging was changed to Imaging System. The change in the segment nameentails no changes in the amounts presented.
[Note] Corporate assets included in Adjustment, which amount to 152.9 billion yen, are mainly surplus operating funds (cash and securities)of the relevant companies and assets related to their administrative divisions.
[Note] About " I. FY2012 (from January 1, 2012 to December 31, 2012)"
Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses arededucted from net sales in order to present them on a net basis. As a result of the retrospective reclassification, selling, general andadministrative expenses decreased by 13,079 million yen for the Business Solutions segment, by 304 million yen for the IT Solutions segment,
by 8,614 million yen for the Imaging System segment, by 16 million yen for the Industrial Equipment segment and 0 million yen for the othersegment from the figures before the reclassification. Nonetheless, such decreases do not have an effect on the segment income.

-9-