Canon Marketing Japan Inc.
July 21, 2011

Summary Report of Consolidated Financial Results
For the Second quarter ended June 30 , 2011
Registered Company Name:

Canon Marketing Japan Inc.

Stock Listing:Code No.:
URL:
Representative Director:
Contact:8060
http://cweb.canon.jp/eng/ir
Masami Kawasaki, President
Yo Shibasaki,

Headquarters:

Tokyo Stock Exchange,
First SectionTokyo

Telephone:+81-3-6719-9071

Director
Senior Vice President
U.S. Accounting Standards Applied:No

1. Business Performance ( From January 1, 2011 to June 30, 2011 )(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Operating
IncomeChangeYears ended Dec. 31

Ordinary
IncomeChangeChangeSecond quarter 2011
294,328（11.9）%

1,230(57.2)%

2,920(28.7)%

334,194（0.6）%

2,873(21.5)%

4,096(12.4)%

Net Income
per Share(Yen)

Diluted Net
Income perShare-

Second quarter 2010

Net Income

ChangeYears ended Dec. 31

Second quarter 2011
1,905

42.8%

Second quarter 2010

13.89
--

1,333

9.62

(2) Financial Position(Millions of yen truncated to the nearest million, %)Total Assets

Total Net Assets

Years ended Dec. 31Stockholders’Equity Ratio

Stockholders’ Equityper Share (Yen)

Second quarter 2011
421,593247,74958.7%

1,803.16

Full term 2010
448,592
246,846
55.0%【Reference】Stockholder’s Equity: Second quarter 2011 247,365 / Full term 2010 246,679

1,798.16

2. Dividends(Yen)
Dividend per share

Full term 2010
Full term 2011
Full term 2011
（Target）

The end of
the Firstquarter-

The end of
the Secondquarter
10.00
10.00

The end of
the thirdquarter

The end of
a termAnnual-

10.00

20.00

-

10.00

20.00

Canon Marketing Japan Inc.

3. Earnings Outlook (For the Fiscal year ending December 31, 2011)(Millions of yen truncated to the nearest million, %)Net Sales

OperatingIncomeOrdinary
IncomeNet Income

Net Incomeper share(Yen)

Full term 2011
653,000

6,300

8,200

3,600

(3.1)%(18.6)%(13.5)%(3.3)%

26.24

Percentage Change

4. Notes(1) Significant changes in subsidiaries during the period : No
(2) Use of simplified accounting procedures : Yes(3) Changes in accounting principles and procedures and presentation methods, etc. related to the preparation ofconsolidated financial statements(i) Changes associated with the revision of accounting standards, etc. : Yes(ii) Changes other than (i): No(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)

the second quarter 2011
Full term 2010

151,079,972 shares
151,079,972 shares(ii) Number of treasury stocks at the end of the period

the second quarter 2011
Full term 2010

13,895,451 shares
13,895,647 shares(iii) Number of shares during the period (first three months)

the second quarter 2011
the second quarter 2010

137,184,290 shares
138,732,306 shares

Disclaimer:
Projections made in this report are based on information available at the time of publication.
Owing to various factors, actual results may differ from these projections.

Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of June 30, 2011 and December 31,2010(Millions of yen truncated to the nearest million)

ASSETS

December 31,
2010

June 30,
2011

Current assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and suppliesDeferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts

15,975
118,886
94,59919,005
1,115
410
4,930
40,0007,278(509)21,991
98,21677,00020,732
1,264
721
5,320
40,018
5,738(349)

301,693

270,654

Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Rental assets, net
Land
Lease assets, net
Construction in progress

38,738
1
3,395
7,073
35,083
1,330
504

39,297
12
3,746
6,705
37,542
1,482
3,920

Total property, plant and equipmentIntangible assets:

86,127

92,708Goodwill
SoftwareLease assets
Right of using facilities
Other

1,429
21,857
55
288
105

978
20,555407
309
96

Total intangible assets
Investments and other assets:

23,73622,346

Investment securities
Long-term loans receivable
Deferred tax assets
Deferred tax assets for land revaluation
Guarantee deposits
Other
Allowance for doubtful accounts

4,133
15
20,874
8,624
3,716
(329)

4,322
40
20,765
831
7,495
2,858
(429)

Total investments and other assets

37,035
146,899
448,592

35,884150,939
421,593Total current assets

Noncurrent assets:
Property, plant and equipment:

Total noncurrent assets

Total assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Balance Sheets
As of June 30, 2011 and December 31,2010(Millions of yen truncated to the nearest million)

LIABILITIES

December 31,
2010

June 30,
2011

Current liabilities:
Notes and accounts payable-trade
Short-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for directors' bonuses
Provision for product warrantiesProvision for loss on order received
Other

102,849431
24,389
5,055
2,607
2,888
55
803
526
17,641

76,490405
614
17,831
1,273
1,426
3,190
27765
476
22,500Total current liabilities

157,247

125,004

Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Accrued long service rewards for employees
Other

1,069
2,021
36,506
801
915
3,184

1,127
513
1,433
3,366
37,032
737
1,011
3,617

Total noncurrent liabilities

44,498201,745

48,839173,844

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,30382,819112,914(22,191)

73,30382,819113,447(22,190)

Total shareholders' equity

246,845

247,379

(47)
(118)

106
(120)

(165)
166
246,846448,592(14)384
247,749
421,593

Noncurrent liabilities:

Total liabilities
Shareholders’ equity:

Valuation and translation adjustments:
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total valuation and translation adjustments

Minority interests
Total net assets

Total liabilities and net assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Statements of Income
For the Second quarter ended June 30, 2011 and 2010
(Millions of yen truncated to the nearest million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income:Interest income
Dividends income
Insurance income
Gain on bad debts recovered
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
Gain on negative goodwill
Gain on sales of investment securities
Gain on transfer of business
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on disaster
Loss on adjustment for changes of accounting standard for
asset
i on cancellation
bli i of lease contracts
Loss
Other
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income
Net income

The Second
quarter of 2010
334,194
222,175
112,019
109,145
2,873

The Second
quarter of 2011
294,328
191,013103,315
102,084
1,230

214
52
546
657
1,471

199
60
570
475
637
1,943

16
231
248
4,096

55
197
253
2,920

0
210
400

0
2,3930-

611

2,393

174
450-

165
203
950

206
269
1,101
3,606
2,201
71
1,333

1,173
34
506
3,033
2,280
365
1,915
10
1,905

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Second quarter ended june 30, 2011 and 2010
(Millions of yen truncated to the nearest million)

The Second
The Second
quarter of 2010 quarter of 2011
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Gain on negative goodwill
Increase(decrease)in allowance for doubtful accounts
Increase(decrease)in provision for retirement benefits
Increase(decrease)in provision for directors' retirement benefits
Interest and dividends income
Interest expenses
Loss(gain) on sales and retirement of property, plant and equipment
Loss on disaster
Loss(gain) on transfer of business
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 income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net 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
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting in change in scopeof consolidation
Decrease(Increase) in time deposits
Proceeds from transfer of business
Other, net
Net cash provided by (used in) iinvesting activities
Net cash provided by(used in) financing activities
Repayments of finance lease obligations
Purchase of treasury stock
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
Net increase(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

3,606
6,340
450
451
(168)
437
(150)
(267)
16
163
(400)
23,802
3,130(17,148)
2,275
22,541
277
(16)
2,920
25,772

2,280
7,236
203
456
(2,393)
(170)
(333)
(126)
(260)
55
126
950
26,737(574)(31,831)(3,243)
(887)
268
(55)
(4,451)(5,125)(8,315)438(2,870)
(40)
515

1,000
(4,282)
1(1,745)
(5)
164

-

(290)

1,776
638
(7,858)1,000
210(3,946)(117)(1)(1,378)(64)
1(1,562)(7)
16,294
95,575111,870

(227)
(0)
(1,376)(7)
1(1,611)0(10,683)
109,575
98,891

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the Second quarter ended June 30, 2011
Main Company and Organization in Each Segment
Main Company / Organization

Segment

Business Solutions

IT Solutions

Consumer Imaging

Industrial Equipment

Main Products in Each Segment
Segment

Business Solutions

IT Solutions

Canon Marketing Japan Inc.
Business Solutions Company
Canon System & Support Inc.
Océ Japan Corporation
Canon Print Square Inc.
Canon Marketing Japan Inc.
IT Product Promotion Headquarters
Canon MJ IT Group Holdings
Canon IT Solutions Inc.
Canon Software Inc.
Edifist Learning Inc.
Other 9 companies
Canon Marketing Japan Inc.
Consumer Imaging Company
Canon Customer Support Inc.
Canon Field Assist Inc.
withPhoto Inc.
Canon Marketing Japan Inc.
Industrial Equipment Sales Headquarters
ELK Corporation
Other 2 companies

Main Products / Service
Business-use multifunctional products, print-on-demand (POD) digitalpresses, personal-use plain-paper copiers, laser printers, large format
ink-jet printers, office-use facsimiles, liquid crystal projectors, document
scanners, color card printers, color label printers, teleconference system,
network cameras, service and support,
System integration, embedded software, infrastructure&operation,solution&software products, computer devices, network devices

Consumer Imaging

Digital cameras, interchangeable lenses, digital video cameras, ink-jetprinters, compact photo printers, personal-use scanners, electronic
dictionaries, calculators

Industrial Equipment

Semiconductor manufacturing equipment, medical equipment (digital Xray cameras, ophthalmic equipment), medical system ,healthcare related
product, broadcasting equipment

the Second quarter ended June 30,(From January 1 to June 30)

Net sales:
Unaffiliated customersIntersegment
Total
Operating income

BusinessSolutions

162,184
162,184
1,120

IT
Solutions

48,744
14,222
62,966(1,554)

Consumer
Imaging

75,83875,838
1,623

Industrial
Equipment

7,449
7,449(14)(Millions of yen truncated to the nearest million)
Total
Adjustment
Consolidated

Other

111
111
56

294,328
14,222308,551
1,230(14,222)(14,222)-294,328
294,328
1,230

Consolidated Segment Information