October 25, 2016

Summary Report of Consolidated Financial Results
for the third quarter ended September 30, 2016

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
Masahiro Sakata, President
Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071
U.S. Accounting Standards Applied:No

1.Consolidated business results for the nine months ended September 30, 2016 (From January 1, 2016 to September 30, 2016)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Nine months ended

Profit attributableto owners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

453,707(3.4)

15,8491.0

16,869

(0.2)

9,994

8.0

469,535(2.0)

15,698(1.7)

16,895

(1.4)

9,252

(4.6)

September 30, 2016
September 30, 2015
[Note] Comprehensive Income:Operating income

Millions of yen%

Nine months ended September 30, 2016 : 10,504 million yen [11.5%]Nine months ended September 30, 2015 : 9,420 million yen [(6.0)%]
Basic earnings
per share

Diluted earnings
per share

Yen

Yen

September 30, 2016

77.08

-

September 30, 2015

71.35

-

Nine months ended(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net assets per share%

Yen

Third quarter ended September 30, 2016

462,303

282,09560.9

2,172.06

Year ended December 31, 2015

486,502277,43856.9

2,136.22[Reference] Shareholders' equity:

Third quarter ended September 30, 2016 : 281,653 million yen
Year ended December 31, 2015 : 277,008 million yen

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2015

-20.00

-

25.00

45.00

Year ending December 31, 2016

-

20.00

25.00

45.00

Year ending December 31, 2016
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December 31, 2016Net sales
Millions of yen

Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Basic earnings
Operating income
Ordinary income
to owners of parent
per share%

Millions of yen%

Millions of yen%

638,000 (1.2)

27,0001.3

28,2000.6[Note] Revision of forecast for this period : Yes-1-%

Yen

17,700 13.0

136.50Millions of yen

* 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 :Yes( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :None(4) Number of issued and outstanding shares (common stock)(i)( ii )( iii )

Number of issued and outstanding shares at the end of fiscal year (including treasury stock)
As of September 30, 2016 :

151,079,972

As of December 31, 2015 :

151,079,972

Number of treasury stock at the end of the period
As of September 30, 2016 :21,408,513

As of December 31, 2015 :

21,407,663

Average number of shares
As of September 30, 2016 :

129,671,854

As of September 30, 2015 :

129,673,723* Implementation Status of Review Processes
At the time this quarterly Financial Report is released, procedures are underway to review quarterly financial
statements pursuant to the Financial Instruments and Exchange Law.
Disclaimer :Earnings projections are based on information available at the time these materials were announced, and the Company
cannot guarantee that they will be realized. Also, actual results may differ from the estimated figures given due tovarious factors.

-2-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2015

As of September 30, 2016

AssetsCurrent assets
Cash and deposits

36,77349,145

Notes and accounts receivable-trade125,906

98,841

Securities

62,80018,900

Merchandise and finished goods

28,327

28,683791

866Work in processRaw materials and supplies

887

889

Deferred tax assets

5,280

5,304

Short-term loans receivable

80,054

120,044

Other

6,922

6,272

Allowance for doubtful accounts

(201)

(109)

347,542

328,839

46,92647,275

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

175

152

4,357

4,420

Rental assets, net

11,511

10,801

Land

35,93934,455Tools, furniture and fixtures, net

Leased assets, net
Total property, plant and equipment

400

261

99,31097,074

Intangible assets
Goodwill

820

615

Software

8,268

6,862

Leased assets

7659

Right of using facilities

317

317

Other

15

5

9,499

7,859

7,789

7,131

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

1010

Deferred tax assets

14,76814,307

Guarantee deposits

5,274

4,952

Other

2,605

2,478

Allowance for doubtful accounts

(298)

(350)

Total investments and other assets

30,15028,530138,959

133,464

486,502462,303

Total non-current assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2015

As of September 30, 2016

Liabilities
Current liabilities
Notes and accounts payable-trade

101,834

82,268

Lease obligations

222

194

Accrued expenses

22,11814,389

Income taxes payable

6,201

2,164

Accrued consumption taxes

5,131

3,081

Provision for bonuses

3,506

13,849Provision for directors' bonuses

13066

Provision for product warranties

529

499

Provision for loss on order received

416

Other

19,99917,650Total current liabilities

159,678

134,180

Lease obligations

321240

Deferred tax liabilities

581

497

Deferred tax liabilities for land revaluation

2625

Accrued long service rewards for employees

943

863

Net defined benefit liability

42,82239,825

Other

4,689

4,574

Non-current liabilities

Total non-current liabilities
Total liabilities

49,38546,027

209,064

180,208

73,30373,303

Net assets
Shareholders' equity
Capital stock
Capital surplus

82,82082,820Retained earnings

151,036

155,196

Treasury shares(31,911)(31,913)

Total shareholders' equity

275,247

279,406

2,775

2,103

0

(21)Foreign currency translation adjustment

224

21

Remeasurements of defined benefit plans(1,240)144

Total accumulated other comprehensive income

1,760

2,247

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

Non-controlling interests
Total net assets
Total liabilities and net assets-4-430441

277,438

282,095

486,502462,303

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Nine months of FY2015(from January 1, 2015
to September 30, 2015)

Nine months of FY2016(from January 1, 2016
to September 30, 2016)

Net sales

469,535

453,707

Cost of sales

300,003289,993

Gross profit

169,531

163,714Selling, general and administrative expenses

153,833

147,864

Operating income

15,69815,849217

181

Dividend income

91

103

Insurance income

584

597

Other

619

386

1,513

1,270
11

Non-operating income
Interest income

Total non-operating income
Non-operating expenses
Interest expenses

22

Foreign exchange losses

116

25

Other

178

213

Total non-operating expenses

316

250

16,895

16,869Gain on sales of non-current assets

11770

Insurance income on disaster21

Ordinary income
Extraordinary income

-

Other

04

Total extraordinary income

33

774

Extraordinary losses
Loss on sales and retirement of non-current assets

152

Impairment loss

688-

Loss on disaster

14

Group reorganization expenses

102

Other

105

Total extraordinary losses

131
22
123

375

965

Income before income taxes and minority interests

16,553

16,678

Income taxes

7,279

6,666

Profit9,274

10,012

21

17

9,252

9,994

Profit attributable to non-controlling interests
Profit attributable to owners of parent-5-Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Nine months of FY2015(from January 1, 2015
to September 30, 2015)
ProfitNine months of FY2016(from January 1, 2016
to September 30, 2016)

9,274

10,012Other comprehensive income
Valuation difference on available-for-sale-securities

694

Deferred gains or losses on hedges

(672)
-(22)

Foreign currency translation adjustment

(35)

(198)

Remeasurements of defined benefit plans, net of tax

(512)

1,385

Total other comprehensive income

145

491

9,420

10,5049,380

10,482

40

21

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Nine months of FY2015(from January 1, 2015
to September 30, 2015)

Nine months of FY2016(from January 1, 2016
to September 30, 2016)

Cash flows from operating activities
Income before income taxes and minority interests

16,553

Depreciation

11,696

Impairment loss

16,678
11,172-

Amortization of goodwill

182

131
172

Increase (decrease) in allowance for doubtful accounts

(84)

(40)

Increase (decrease) in net defined benefit liability

(728)

(946)

10,177

10,344

(308)

(285)

Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses

22

11

Loss (gain) on sales and retirement of property, plant and equipment

110

(103)

Decrease (increase) in notes and accounts receivable-trade22,92628,051

Decrease (increase) in inventories(3,997)(449)

Increase (decrease) in notes and accounts payable-trade(11,848)(19,514)

Other, net(14,476)(10,958)

Subtotal

29,06933,122

Interest and dividends income received

306

293

Interest expenses paid

(22)

(14)

Income taxes paid

(10,467)(10,921)

Net cash provided by (used in) operating activities

18,88622,480(9,480)(8,761)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities

98

2,190

(2,529)(1,016)

(111)

(449)

Proceeds from sales of invesment securities

1821Proceeds from sales of shares of subsidiaries and associates

5-(29,999)(39,989)

Net decrease (increase) in short-term loans receivable
Other, net
Net cash provided by (used in) investing activities

(217)

208

(42,216)(47,796)

(300)

(185)

(6)

(1)

Cash flows from financing activities
Repayments of finance lease obligations
Purchase of treasury shares(5,836)(5,837)

Dividends paid to non-controlling shareholders

Cash dividends paid

(10)

(10)

Other, net(1)-(6,154)(6,035)

(1)

(176)

Net increase (decrease) in cash and cash equivalents(29,485)(31,528)

Cash and cash equivalents at beginning of period

120,607

99,573

Cash and cash equivalents at end of period

91,121

68,045

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents-7-Consolidated Quarterly Segment Information
I. Nine months of FY2015 (from January 1, 2015 to September 30, 2015)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

ImagingSystem

83,798

119,979

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

244,754-

Sales - intersegment
Total
Operating income (loss)

21,53820,748-254--

469,535-

21,538(21,538)

469,535-

244,754

105,337

119,979

20,748254

491,073(21,538)

469,535

6,815

2,641

6,273

(366)

334

15,698-15,698[Note]
1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Operating income (loss)" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."
II. Nine months of FY2016 (from January 1, 2016 to September 30, 2016)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

Imaging
System86,153103,113

Industrial /Medical

Other

Total

Adjustment Consolidated

Net sales
Sales - external customers

244,836-

Sales - intersegment

20,322

19,584-19--453,707-

20,322(20,322)453,707-

Total

244,836

106,475

103,113

19,58419

474,029(20,322)453,707

Operating income

7,638

3,567

3,489

812342

15,849-15,849[Note]
1. "Other" includes businesses, such as shared service businesses, which are not included in other reportable segments.
2. "Operating income" is equal to the "Operating income" of "Consolidated Quarterly Statements of Income."-8-