Canon Marketing Japan Inc.
January 26, 2011

Summary Report of Consolidated Financial Results
For the fiscal year ended December 31, 2010

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

Managing Director
Senior General Manager, Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance (From January 1, 2010 to December 31, 2010)(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Change674,159
686,614(1.8)%(17.0)%Net Income
per Share(Yen)

DilutedNet
Incomeper Share-Years ended Dec. 31

Full term 2010
Full term 2009

Years ended Dec. 31

Full term 2010
Full term 2009(26.70)(31.62)

OperatingIncome
7,735
6,297

Change22.8%(75.2)%

Ordinary
Income9,480
8,222

Change15.3 %(68.3)%

Net
Income3,724(4,343)

Change-Net Income to
Stockholders’ EquityRatio

Ordinary Income
toTotal Assets Ratio

Operating Income toNet Sales Ratio

1.5 %(1.7) %

2.1%
1.8%

1.1%
0.9%

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

Total Net Assets

Years ended Dec. 31

Full term 2010
Full term 2009
Note
Stockholders’ Equity

448,592
449,607

246,846
250,875

Stockholders’ Equity

Stockholders’ Equity

Ratio

per Share (Yen)
55.0%
54.9%

Full term 2010:246,679millions of yen / Full term 2009:246,829millions of yen

1

1,798.16
1,797.31

Canon Marketing Japan Inc.

(3) Cash Flows(Millions of yen truncated to the nearest million)

Years ended Dec. 31

Net Cash Provided

Net Cash Used in

Net Cash Used in

Cash and Cashby Operating Activities

Investing Activities

Financing Activities

Equivalents at End ofPeriod

Full term 2010
Full term 2009

35,18618,145(13,011)(25,834)(8,171)(4,324)

109,575
95,575

2. Dividends(Yen, %)

Dividend per

The end of

The end ofInterima TermAnnual

Total

Dividend ratio

Dividend toDividends for fullsharetotal assets

term

Full term 2009

10.00

10.00

20.00

2,746 million

Full term 2010

10.00

10.00

20.00

2,787 million

Full term 2011

10.00

10.00

20.00

-1.1%
74.9%

1.1%

68.6%

（Target）

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

Change685,000

1.6%

Years ended Dec. 31

Interim 2011
Full term 2011

Years ended Dec. 31

Interim 2011
Full term 2011

Operating
Income9,000

Net Income
per Share(Yen)
29.16

Note
Earnings Outlook of the Interim 2011 is not be disclosed.

2

Change16.3%

Ordinary
Income10,000Change5.5%

Net
Income4,000

Change7.4%

Canon Marketing Japan Inc.

4. Notes(1) Significant changes in subsidiaries during the periodNo(2) Changes in accounting principles and procedures and presentation methods, etc. related to the preparation of consolidated
financial statements(i)

Changes associated with the revision of accounting standards, etc.

(ii)

Changes other than (i)

Yes

Yes

(3) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
Full term 2010
151,079,972 shares
Full term 2009
151,079,972 shares(ii) Number of treasury stocks at the end of the period
Full term 2010
13,895,647 shares
Full term 2009
13,747,552 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.

3

Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of December 31, 2010 and 2009
(Millions of yen truncated to the nearest million)

ASSETS

December 31, December 31,20092010

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

17,676
125,738
78,12022,027
3,213
545
4,360
40,00010,714(567)

15,975
118,886
94,59919,005
1,115
410
4,930
40,0007,278(509)

301,828

301,693

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

40,908
3
4,216
6,809
31,629622-

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

Total property, plant and equipment
Intangible assets:

84,18986,127

Goodwill
SoftwareLease assets
Right of using facilities
Other

2,335
21,637
26
288
103

1,429
21,85755
288
105

Total intangible assets
Investments and other assets:

24,392

23,736

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

5,154
21
21,2369,016
5,300(1,532)

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

Total investments and other assets

39,196
147,778449,607

37,035
146,899
448,592

Total 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 December 31, 2010 and 2009
(Millions of yen truncated to the nearest million)

LIABILITIES

December 31, December 31,
2009
2010

Current liabilities:
Notes and accounts payable-trade
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Deferred tax liabilities
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other106,443
189
22,902
697
2,268
8
3,138
26
878
130
17,025

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

153,709

157,247502
2,078
37,538
844
1,007
3,050

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

45,022
198,73144,498201,745

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,303
83,288115,152(24,758)

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

Total shareholders' equity

246,985

246,845

(116)
(39)

(47)
(118)

(156)
4,046
250,875
449,607(165)
166
246,846448,592

Total current liabilities

Noncurrent liabilities:
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Accrued long service rewards for employees
Other
Total 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 Full term ended December 31, 2010 and 2009
From January 1 to December 31(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
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 transfer of business
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on cancellation of lease contracts
Loss on valuation of investment securities
Loss on valuation of golf club membership
Expenses related to changing in business nameLoss on adjustment for changes of accounting standard for measurementof inventories
Expenses related to restructuring of consolidated subsidiaries
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income (loss)

Full term
2009
686,614453,556
233,058
226,760
6,297

Full term
2010
674,159446,615
227,543
219,807
7,735

627
85
544
1,132
2,388

396
69
597
1,072
2,135

87
376
464
8,222

35
355
391
9,480

5,595
0
166
5,762

4
400
211
615

593
10,768
1,103
15
5

455
493
206
45
32
12

1,299
65
727
14,579
(595)
1,476
1,925
3,402
345
(4,343)

266
1,512
8,584
5,096
(325)
4,770
89
3,724

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of changes in net assets
For the Full term ended December 31, 2010 and 2009
From January 1 to December 31(Millions of yen truncated to the nearest million)

Full term
2009

Full term
2010

Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Changes by share exchange
Changes by sales of subsidiaries' stocks
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Disposal of treasury stock
Contributions to employee welfare pension fundChanges by share exchange
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Changes by share exchange
Changes by sales of subsidiaries' stocks
Total changes of items during the period
Balance at the end of current period

73,30373,30373,30373,303

83,28983,288(0)(0)(0)
83,288(0)
(468)
(468)
82,819123,616

115,152(4,120)(4,343)(0)(8,463)
115,152(2,788)
3,724
(0)
(0)
(3,173)(2,238)112,914(24,730)(24,758)

(3)
1(25)
(27)
(24,758)(5,002)
2
7,567
2,566
(22,191)

Consolidated statements of changes in net assets

Canon Marketing Japan Inc.

Consolidated Statements of changes in net assets
For the Full term ended December 31, 2010 and 2009
From January 1 to December 31(Millions of yen truncated to the nearest million)

Full term
2009
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Contributions to employee welfare pension fundChanges by share exchange
Total changes of items during the period
Balance at the end of current period

Full term
2010

255,477

246,985(4,120)(4,343)
(3)
1(25)
(0)
(8,491)
246,985(2,788)3,724(5,002)
1(0)
3,925
(140)
246,845

(212)

(116)

95
95
(116)

69
69(47)(45)(39)

55(39)

(78)
(78)
(118)

(257)

(156)

100
100(156)

(9)
(9)
(165)

3,822

4,046

223
223
4,046

(3,925)45(3,879)166

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Minority interests
Balance at the end of previous period
Changes of items during the period
Changes by share exchange
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Consolidated statements of changes in net assets

Canon Marketing Japan Inc.

Consolidated Statements of changes in net assets
For the Full term ended December 31, 2010 and 2009
From January 1 to December 31(Millions of yen truncated to the nearest million)

Full term
2009

Full term
2010

Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)Purchase of treasury stock
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Contributions to employee welfare pension fundNet changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

259,043

250,875(4,120)(4,343)
(3)
1(25)
(0)
324
(8,167)
250,875(2,788)3,724(5,002)1(0)36(4,028)
246,846

Consolidated statements of changes in net assets

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Full term ended December 31, 2010 and 2009
From January 1 to December 31(Millions of yen truncated to the nearest million)

Full term
2009
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of 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 (gain) on transfer of business
Loss (gain) on sales of investment securities
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
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
Payments for sales of investments in subsidiaries resulting inchange in scope of consolidation
Net decrease (increase) in short-term loans receivable
Net decrease (increase) in time deposits
Proceeds from transfer of business
Other, net
Net cash provided by (used in) investing 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

Full term
2010

(595)
12,356
10,768849509
845
40(712)
87(5,181)‐
7
23,281
8,634(16,828)(6,145)

8,584
13,739
493
904
(221)
(326)
(43)
(466)
35
308
(400)
(211)
6,901
3,926
(3,593)
2,639

27,918736(87)(10,422)
18,14532,269
477
(35)
2,474
35,186(6,957)
6,204(9,590)(8)
16(11,488)
645(5,237)
(231)
519

(396)

‐

(188)

‐

(19,999)
5,010‐
76(25,834)

(0)
‐
1,776
1,003
(13,011)(77)(3)(4,121)(121)
1(4,324)(0)(12,013)
107,588
95,575(313)(5,002)(2,791)(64)
1(8,171)(3)
13,99995,575109,575

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Business Segment Information
For the Full term ended December 31, 2010 and 2009From January 1to December 31

Full term 2009
BusinessSolutions

Consumer
Equipment(Millions of yen truncated to the nearest million)
Industrial
Total
Corporate Consolidated
Equipment
andeliminations

Net sales:
438,738
222,227
25,649686,614438,738
222,227
25,649686,614441,759
211,798
26,759680,317(3,021)
10,428(1,109)6,297
Total assets, Depreciation and amortization, Impairment loss, Capital expenditure
204,953
76,401
17,495
298,851
Total assets
10,5801,234
54012,356
Depreciation and amortization
700
150
9,918
10,768
Impairment loss12,726
3,196
1,116
17,039
Capital expenditure

(-)
(-)
(-)
(-)

686,614686,614680,317
6,297

150,756-449,607
12,356
10,76817,039Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income (loss)

Full term 2010
BusinessSolutions

Consumer
Equipment(Millions of yen truncated to the nearest million)
Industrial
Total
Corporate Consolidated
Equipment
andeliminations

Net sales:
440,732
219,780
13,646674,159
440,732
219,780
13,646674,159441,599
210,597
14,226
666,423
(866)
9,183
(580)
7,735
Total assets, Depreciation and amortization, Impairment loss, Capital expenditure
Total assets
205,158
74,126
8,688
287,973
Depreciation and amortization
11,462
1,921
354
13,739Impairment loss
493
Capital expenditure
16,3151,457
224
17,996

(-)
(-)
(-)
(-)

674,159
674,159
666,423
7,735

160,619-448,592
13,739493
17,996

Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income (loss)

Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2. Main Products & Services
SegmentBusiness Solutions

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

Consumer Equipment

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

Industrial Equipment

Lithography equipment for semiconductor manufactures and othersemiconductor manufacturing equipment, lithography equipment for LCD
manufactures, medical equipment (digital X-ray cameras, ophthalmic
equipment), broadcasting equipment

Consolidated Segment Information