Canon Marketing Japan Inc.
July 23, 2009

Summary Report of Consolidated Financial Results
For the Second quarter ended June 30, 2009

Registered Company Name:

Canon Marketing Japan Inc.

Stock Listing:Code No.:
URL:
Representative Director:
Contact:

8060
Headquarters:
http://cweb.canon.jp/co-profile/ir-e
Masami Kawasaki, President
Yo Shibasaki,
Telephone:Tokyo Stock Exchange,
First Section
Tokyo+81-3-6719-9071

Managing Director,
Senior general manager of Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance (From January 1, 2009 to June 30, 2009)(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Change (%)

Years ended Dec. 31

Second quarter 2009
Second quarter 2008

¥336,202¥418,624(2.1)%Net Income

Change (%)

Years ended Dec. 31

Second quarter 2009
Second quarter 2008

¥ (4,541)¥6,4,64(35.3)%

Operating
Income¥3,659¥14,311

Change (%)

Net Incomeper Share(Yen)¥(33.33)¥ 44.79

Diluted Net
Income perShare-(15.8)%

Ordinary
Income¥4,675
14,769Change (%)(15.4)%(2) Financial Position(Millions of yen truncated to the nearest million, %)Total Assets

Total Net Assets

Stockholders’
Stockholders’ Equity
Equity Ratioper Share (Yen)
Second quarter 2009
¥ 434,471¥252,014
57.1%¥ 1,806.42
Full term 2008
¥ 484,936¥259,043
52.6%¥ 1,858.39【Reference】Stockholder’s Equity: Second quarter 2009 ¥248,034 / Full term 2008 ¥255,220
Years ended Dec. 31

2. Dividends(Yen)Dividend per share

Full term 2008
Full term 2009
Full term 2009（Target）

The end of
the Secondquarter-

The end of
the Secondquarter¥20.00¥10.00-The end of
the thirdquarter

The end of
a term-¥20.00-【Note】Dividends for the end of a term and Full term 2009 have not be decided yet.

1Annual¥40.00-

Canon Marketing Japan Inc.

3. Earnings Outlook (For the Fiscal year ending December 31, 2009)(Millions of yen truncated to the nearest million, %)Net Sales

Full term 2009
Percentage Change

Operating
Income¥705,000(14.8)%

Ordinary
Income¥5,500(78.4)%¥7,000(73.0)%

Net Income¥(5,000)-

Net Income
per share(yen)¥(36.41)【Note】Earnings Outlook for the net sales and net income changed.

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 of consolidated
financial statements(i) Changes associated with the revision of accounting standards, etc. : Yes(ii) Changes other than : 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 2009
151,079,972 shares
Full term 2008
151,079,972 shares(ii) Number of treasury stocks at the end of the period
the Second quarter 2009
13,746,968shares
Full term 2008
13,745,742 shares(iii) Number of shares during the period (first six months)
the Second quarter 2009
137,333,321 shares
the Second quarter 2008
144,326,617 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.

2

Canon Marketing Japan Inc.

Consolidated Balance Sheets
From January 1, 2009 to June 30, 2009
(Millions of yen truncated to the nearest million)The Second quarter of 2009ASSETS

June 30,2009

December31, 2008

ChangeCurrent assets:

Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts¥18,808
106,341
80,99822,083
4,116
521
8,489
40,0006,799(581)¥24,501
149,548
88,09629,920
3,411
811
5,388
20,0006,473(460)¥(5,693)(43,207)(7,098)(7,837)
705
(290)
3,101
20,000326(121)

Total current assets

287,577

327,692(40,115)

Buildings and structures, net
Machinery, equipment and and vehicles, net
Tools, furniture and fixtures, net
Rental assets, net
Land
Lease assets, net

42,054
4
4,228
7,954
31,921
254

44,105
30
4,455
7,659
41,739-(2,051)
(26)
(227)
295
(9,818)254

Total property, plant and equipment

86,41897,989(11,571)

Goodwill
SoftwareLease assets
Right of using facilities
Other

2,773
19,708
29
289
116

2,925
15,598
389
116

(152)
4,110
29(100)0Total intangible assets

22,91519,0283,887

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

5,659
24
18,9009,027
5,533(1,586)

6,420
25
20,326
8,791
5,829(1,168)(761)(1)(1,426)
236
(296)
(418)

Total investments and other assets

37,55940,225(2,666)

146,893¥434,471

157,243¥484,936(10,350)¥(50,465)

Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process

Noncurrent assets:
Property, plant and equipment

Intangible assets:

Investments and other assets:

Total noncurrent assets

Total assets

Consolidated Balance SheetsCanon Marketing Japan Inc.
(Millions of yen truncated to the nearest million)

LIABILITIESMarch 31,2009

December31, 2008

ChangeCurrent 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
Other

90,86472
19,833
3,229
1,556
7
3,080
55
846
96
20,805

123,896
28,137
6,085
2,280
7
3,084
114
1,106
290
18,736(33,032)72(8,304)(2,856)
(724)
0(4)
(59)
(260)
(194)
2,069

Total current liabilities

140,449

183,739(43,290)

Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Accrued long service rewards for employees
Other

229
321
36,686
743
1,060
2,965

279
37,122
804
937
3,010

229
42(436)
(61)
123
(45)

Total noncurrent liabilities

42,006
182,456

42,153225,893(147)(43,437)

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,303
83,288116,291(24,757)

73,303
83,289123,616(24,730)(1)(7,325)(27)

Total shareholder's equity

248,125

255,477(7,352)

(18)
(26)

(212)
(45)

194
19

(45)
3,933
252,014434,471

(257)
3,822
259,043484,936212
111(7,029)(50,465)

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 assetsConsolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Statements of Income
For the Second quarter ended June 30, 2009 and 2008
From January 1, 2009 to June 30, 2009
(Millions of yen truncated to the nearest million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss (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 loss (income)Extraordinary income:Gain on sales of noncurrent assetsOther
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Other
Total extraordinary losses
Loss (income) before income taxes and minority interests
Income taxes
Minority interests in income
Net loss (income)

The Second
quarter of 2009
¥336,202
220,706
115,496
111,836
3,659

The Second
quarter of 2008
¥418,624
282,008
136,616
122,305
14,311

369
68
524
346
1,307

509
1,011
1,521

(140)
68
524
(665)
(214)

67
225
292
4,675

34
1,027
1,063
14,76933(802)(771)(10,094)

5,571161
5,732

020
21

5,571
(20)
5,711

168
10,6842,594
13,447(3,040)1,374
162¥(4,577)

291
1,858
2,149
12,641
6,014
161¥6,464(123)
10,684736
11,298(15,681)(4,640)1¥(11,041)

Change¥(82,422)(61,302)(21,120)(10,469)(10,652)【Note】Interest income for the second quarter of 2008 includes Dividends income

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Second quarter ended June 30, 2009 and 2008
(Millions of yen truncated to the nearest million)

The SecondThe Second
quarter of 2009 quarter of 2008
Net cash provided by (used in) operating activities(Loss) income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Decrease in provision for retirement benefits
Decrease in provision for directors' retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of property, plant andDecrease in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase in notes and accounts payable-tradeOther, net
SubtotalInterest and dividends income received
Interest expences paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment 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 inscope of consolidation
Payments for sales of investments in subsidiaries resulting inchange in scope(Increase) in short-term loans receivable
Decrease (increase) in time deposits
Other, net
Net cash provided by (used in) investment 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 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

Change¥(3,040)
5,716
10,684
418
577
(3)
(60)
(437)
67
(5,425)42,707
7,687(32,407)(6,478)¥12,641 ¥(15,681)
6,077
(361)
10,684
426
(8)
(164)
741
(1,098)1,095(60)
0(509)
72
34
33
275(5,700)44,512(1,805)(107)
7,794(27,375)(5,032)(3,178)(3,300)20,006458(67)(6,086)
14,31031,473519(53)(9,014)22,925(11,467)
(61)
(14)
2,928
(8,615)(3,900)5,901(5,521)(2)
9(5,258)(3,265)(723)4,010

1,358
5,901
(2,256)721(4,001)

(396)

(18)

(378)

(188)

-(188)(19,999)
5,000
(191)
(19,289)(19,996)(100)(43)(25,395)

(3)
5,100
(148)
6,106

(18)
(2)
(2,733)(63)
0(2,816)
4(7,791)
107,588¥99,796(5,007)(3,226)(65)(470)(8,769)(22)(11,261)
117,206¥105,944

(18)
5,005
493
2470
5,953
26
3,470
(9,618)¥(6,148)

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the Second quarter ended June 31, 2009 and 2008
the Second quarter ended June 30,(From January 1 to June 30)(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
Solutions Equipment Equipment
andd

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income¥216,611 ¥106,779
216,611 106,779¥2,423¥2,368the Second quarter ended June 30,(From January 1 to June 30)(Millions of yen truncated to the nearest million)
Business Consumer Industrial
TOTAL Corporate Consolidate
Solutions Equipment Equipment
andd¥12,811 ¥336,202
12,811 336,202(¥1,132)¥3,659\(-)(-)(-)¥336,202
336,202¥3,659Net sales:
Unaffiliated customers
Intersegment
Total
Operating income¥257,118 ¥123,734
257,118 123,734¥9,279¥3,476¥37,771 ¥418,624
37,771 418,624¥1,555 ¥14,311

\(-)
(-)
(-)

¥418,624
418,624¥14,311

Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2.Main Products in Each Segment
Segment
Main Products / Service
Business Solutions
Business-use multifunctional products, print-on-demand (POD) digitalpresses, laser-beam printers, large format ink-jet printers, office-use
facsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, microfilm equipment, computer products,
network equipment, software, service and support, system Integration,embeded software,infrastructure&operation, solution&software products,
computer devices, network devices
Consumer Equipment

Digital cameras, film cameras, interchangeable lenses, digital videocameras, ink-jet printers, compact photo printers, personal-use plainpaper copiers, personal-use facsimiles, personal-use scanners,
electronic dictionaries, calculators, personal computers

Industrial Equipment

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

Consolidated Segment Information