January 29, 2019

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 2018
Registered company name:

Canon Marketing Japan Inc.

Stock listing:Code number:Tokyo Stock Exchange, First Section
8060

URL:

https://cweb.canon.jp/eng/ir

Representative director:

Masahiro Sakata, President

Contact:

Shiro Hamada, Director Vice President
Tel. +81-3-6719-9071

Dividend payable date (as planned):
U.S. Accounting Standards Applied:

March 28, 2019
No

1.Consolidated business results for the year ended December 31, 2018 (From January 1, 2018 to December 31, 2018)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent

Net salesYear ended

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2018

621,591(1.7)

28,941(4.8)

30,519(3.1)

20,826

0.7

December 31, 2017

632,1890.5

30,4069.9

31,491

9.7

20,67913.9[Note] Comprehensive Income:Millions of yen%

Year ended December 31, 2018 : 13,842 million yen [(41.6)%]
Year ended December 31, 2017 : 23,704 million yen [154.0%]

Basic earnings
per share

Diluted net income
per share

Yen

Yen

Year ended

Rate of returnon equity

Ordinary income tototal assets ratio%

Operating income to
net sales ratio%%

December 31, 2018160.61

-

6.9

6.0

4.7

December 31, 2017159.48

-

7.2

6.2

4.8

(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Total assets

Net assets

Millions of yen

Millions of yen%

Yen

Year ended December 31, 2018498,790

303,57060.8

2,336.97

Year ended December 31, 2017

510,832

297,52258.1

2,290.70[Reference] Shareholders' equity:Year ended December 31, 2018 : 303,027 million yen
Year ended December 31, 2017 : 297,031 million yen(3) Cash FlowsNet cash provided byoperating activities

Net cash provided byinvesting activities

Millions of yen

Millions of yen(Amounts less than one million yen are truncated)
Net cash provided by
Cash and cash equivalents
financing activities
at end of period
Millions of yen

Millions of yen

Year ended December 31, 2018

16,990(10,526)(7,838)135,571

Year ended December 31, 2017

28,885

7,963(7,145)

136,979

2.Dividends
Dividend per shareFirst
quarter-end

Secondquarter-end

Thirdquarter-end

Year-end

Total
dividends(annual)AnnualPayout ratio(Consolidated)

Ratio ofdividends to
net assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Yen

%

%

Year ended December 31, 2017

-

25.00

-

35.00

60.00

7,780

37.6

2.7

Year ended December 31, 2018

-

25.00

-

35.00

60.00

7,780

37.4

2.6

Year ending December 31, 2019

-

-

-

-

60.00

37.2

(forecast)(Note) The allocation between 2Q-end and year-end of the annual dividend (forecast) of the fiscal year ending December 2019 is to be determined.

3.Consolidated financial forecast for the fiscal year ending December 31, 2019
Net sales

Operating income

Millions of yen %Full year

622,000(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)

0.1

Ordinary income

Profit attributableto owners of parent
Millions of yen

Millions of yen%

Millions of yen %29,5001.9

30,700-1-

0.6

Basic earnings
per share%Yen

20,900 0.4

161.18

*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 :None( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( 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)
151,079,972
As of December 31, 2018 :As of December 31, 2017 :

151,079,972( ii ) Number of treasury stock at the end of fiscal year
21,412,840
As of December 31, 2018 :As of December 31, 2017 :

21,411,513( iii ) Average number of shares
As of December 31, 2018 :

129,667,717

As of December 31, 2017 :

129,669,783-2-

(Reference) Summary of Non-Consolidated Financial Results

1.Non-Consolidated business results for the year ended December 31, 2018(From January 1, 2018 to December 31, 2018)(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, 2018

475,741(2.7)

16,148(18.3)

19,615(21.2)

16,959(6.5)

December 31, 2017

489,105

2.0

19,76822.2

24,88122.1

18,141

33.5

Net income
per share
Year ended

Millions of yen%

Diluted net income
per share
Yen

Yen

December 31, 2018

130.79-December 31, 2017139.91-(2) Non-Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio

Net asset per share%

Yen

Year ended December 31, 2018495,585

292,52159.0

2,255.94

Year ended December 31, 2017

503,790

283,88756.4

2,189.33[Reference] Shareholders' equity:Year ended December 31, 2018 : 292,521 / Year ended December 31, 2017 : 283,887

Disclaimer :This report is not subject to audit procedures based on the Financial instruments and Exchange
Law in Japan.
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, 2017
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other current assets
Allowance for doubtful receivables
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Rental assets, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
SoftwareLease assets
Utilization rights
Other intangible assets
Total intangible assets
Investments and other assets
Investment in securities
Long-term loans receivable
Net defined benefit assets
Deferred tax assets
Lease deposits
Other investments and other assets
Allowance for doubtful receivables
Total investments and other assets
Total non-current assets
Total assets-4-

As of December 31, 2018

66,479125,626
70,50032,076
958
836
4,062
90,0147,050(98)397,506

65,071
117,041
70,50031,182
1,191
647
3,895
90,014
7,792(91)
387,244

30,825
251
3,732
11,05829,016116
89
75,09028,657112
3,059
10,842
28,91863
333
71,987

5,153
12
316
2
5,485

4,940
5
316
2
5,265

9,027
29
404
16,203
4,880
2,532
(327)
32,750113,325
510,832

7,985
36
304
19,143
4,423
2,832
(432)
34,292
111,545498,790

Consolidated Balance Sheets(Amounts less than one million yen are truncated)

Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Lease obligations
Accrued expenses
Accrued income taxes
Consumption taxes payable
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other current liabilities
Total current liabilities
Long-term liabilities
Lease obligations
Deferred tax liabilities
Allowance for long-term continuous service rewards
Net defined benefit liabilities
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Stockholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total stockholders' equity
Accumulated other comprehensive income (loss)
Net unrealized gains on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income (loss)
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of December 31, 2017

As of December 31, 2018

100,940147
125
18,168
6,289
4,586
3,443
128
487
132
22,949157,398

75,831
100
16,676
6,967
4,063
3,437
79
447
147
22,151
129,903

163
438
961
49,604
4,743
55,911
213,310

116
29
1,019
59,887
4,264
65,317
195,220

73,30382,820176,911(31,921)301,11373,30382,820189,957(31,924)
314,156

3,159
6
98(7,345)(4,081)
490
297,522510,8322,518
1
75(13,725)(11,129)542
303,570
498,790-

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2017(from January 1, 2017
to December 31, 2017)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Gain on investments in partnership
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investments in securities
Gain on sales of shares of subsidiaries and associates
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of fixed assets
Loss on impairment of fixed assets
Loss on disaster
Loss on valuation of investments in securities
Special extra retirement payments
Expenses for restructuring of business bases
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes

FY2018(from January 1, 2018
to December 31, 2018)

632,189
408,417
223,771
193,365
30,406

621,591
403,417
218,173
189,231
28,941

165
121
549

197
153
547
494
413
1,807

493
1,328
12
11
220
244
31,49112216
229
30,519

879
539
63
1,482

830

898
1,033
5
100
4
13
2,054
30,9189,950
272
10,222
20,69515
20,679ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

-6-

126
489
214

311
15
64
158
57
34
641
30,708
9,893
(77)
9,815
20,89366
20,826

Consolidated Statements of Comprehensive Income(Amounts less than one million yen are truncated)
FY2017(from January 1, 2017
to December 31, 2017)
ProfitOther comprehensive income (loss)
Net unrealized gains or losses on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to
Owners of parent
Non-controlling interests-7-

FY2018(from January 1, 2018
to December 31, 2018)

20,69520,893

831
20
(57)
2,214
3,008
23,704

(640)
(4)
(25)
(6,379)(7,050)13,842

23,697
7

13,77963

Consolidated Statements of Shareholders' EquityI.

FY2017 (from January 1, 2017 to December 31, 2017)(Amounts less than one million yen are truncated)
Shareholders' equity
Capitalstock

Balance at beginning of current period

Capitalsurplus73,303Retainedearnings

82,820Total
shareholders'equityTreasure
stocks163,363(31,914)287,571

Changes of items during period
Dividends of surplus(7,131)(7,131)

Profit attributable to owners of parent

20,67920,679Purchase of treasury stock
Disposal of treasury stock

(6)

(6)

0

0

0

Profit attributable to non-controlling interests-

Dividends paid to non-controlling interests-

Net changes of items other than shareholders' equity-

Total changes of items during period
Balance at end of current period-

013,548(6)

13,54173,30382,820176,911(31,921)301,113

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current period

2,328

Total
Foreign
Remeasurements accumulated
currencyof defined benefit
othertranslationplanscomprehensive
adjustment
incomeDeferred
gains orlosses onhedges(14)

147(9,560)(7,099)Noncontrollinginterests

446

Total net
assets

280,919

Changes of items during period
Dividends of surplus-(7,131)

Profit attributable to owners of parent-

20,679Purchase of treasury stock-(6)

Disposal of treasury stock-0

Profit attributable to non-controlling interests

-

15

15

Dividends paid to non-controlling interests

-

(12)

(12)

Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period

830

20

(48)

2,214

3,017

40

3,057

830

20

(48)

2,214

3,017

44

16,603

3,159

6

98

(7,345)(4,081)

490

297,522-8-

Consolidated Statements of Shareholders' Equity
II.

FY2018 (from January 1, 2018 to December 31, 2018)(Amounts less than one million yen are truncated)
Shareholders' equity
Capitalstock

Balance at beginning of current period

Capitalsurplus73,303Retainedearnings

82,820Total
shareholders'equityTreasure
stocks

176,911(31,921)301,113

Changes of items during period
Dividends of surplus(7,780)(7,780)

Profit attributable to owners of parent

20,826

20,826

Purchase of treasury stock
Disposal of treasury stock

(3)

(3)

0

0

0

Profit attributable to non-controlling interests-

Dividends paid to non-controlling interests-

Net changes of items other than shareholders' equity-

Total changes of items during period
Balance at end of current period-

0

13,046(3)

13,04373,30382,820189,957(31,924)

314,156

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current period

Deferred
gains orlosses onhedges3,159

Foreigncurrencytranslation
adjustment
6

98

Total
Remeasurements accumulatedof defined benefit
other
plans
comprehensive
income(7,345)(4,081)

Noncontrollinginterests

490

Total net
assets297,522

Changes of items during period
Dividends of surplus-(7,780)

Profit attributable to owners of parent-

20,826

Purchase of treasury stock-(3)

Disposal of treasury stock-0

Profit attributable to non-controlling interests

-

66

66

Dividends paid to non-controlling interests

-

(11)

(11)

Net changes of items other than shareholders' equity

(640)

(4)

(23)

(6,379)(7,047)(3)(7,050)Total changes of items during period

(640)

(4)

(23)

(6,379)(7,047)51

6,047

Balance at end of current period

2,518

1

75

△13,725△11,129542

303,570-9-

Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
FY2017(from January 1, 2017
to December 31, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on impairment of fixed assets
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in net defined benefit liabilities
Decrease (increase) in net defined benefit assets
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expense
Loss (gain) on sales and disposal of property, plant and equipment, net
Loss (gain) on sales of investment in securities
Loss (gain) on investments in partnership
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 received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchases of intangible assets
Payments for purchases of investment in securities
Proceeds from sales of investments in securities
Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation
Decrease (increase) in short-term loans receivable, net.
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable, net
Repayments of finance lease obligations
Payments for purchases of treasury stock
Dividends paid
Dividends paid to non-controlling shareholders
Proceeds from share issuance to non-controlling 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- 10 -FY2018(from January 1, 2018
to December 31, 2018)

30,91814,268
1,033
(40)
(959)
(206)
(30)
(286)
12
6
(539)
31
(1,098)(3,917)(1,812)395
37,774285(12)(9,162)
28,88530,70813,281
15
99
1,228
(66)
2
(351)
12
182
(488)
(494)
8,355
858
(25,105)(2,874)25,365351(12)(8,713)
16,990(12,070)
21,355(1,230)(733)
880(9,905)263(2,238)
(677)
1,534

-

526

10
(247)
7,963

(0)
(30)
(10,526)

147
(192)
(6)
(7,127)(12)
49(1)(7,145)(9)29,693
107,285
136,979

91
(135)
(3)
(7,778)(11)
0(7,838)(33)(1,407)
136,979
135,571

Consolidated Segment Information
I. FY2017 (from January 1, 2017 to December 31, 2017)

Information on net sales and income (loss) by reportable segment.

(Amounts less than one million yen are truncated)

Reportable segment
Other

Total

Adjustment Consolidated

2,466

632,189

-

2,793

4,684

30,945(30,945)257,919

54,1407,150

663,135(30,945)

632,189

7,728

11,432(1,869)397

30,35947

30,40658,366

83,09467,89632,741

1,493

243,592

267,240

510,832

Depreciation

852

7,935

3,553

1,096

35

13,473795

14,268

Increase in Property, plantand equipment andIntangible assets

609

8,565

3,578

891

11

13,656

9

13,666

Consumers

EnterpriseArea

165,996

167,653244,726

51,346292

9,981

13,192

166,289

177,635

Operating income (loss)

12,670AssetsProfessional

Net sales
Sales - external customers
Sales - intersegment
Total

632,189-

Other[Note]
1. "Other" includes call center business and BPO service business, which are not inluded in reportable segments.
2. Adjustments are as follows:(1) Adjustment of Operating income (loss) is the elimination of intersegment transactions.
(2) Adjustment in segment assets are corporate assets that do not belong to individual reportable segments. The corporate assets mainly
consist of surplus funds (cash and marketable securities), assets related to land of head office, buildings, and the administrative division of
the head office.
(3) Adjustment in depreciation expenses are depreciation expenses related to the buildings of the head office that do not belong to individual
reportable segments.
(4) Adjustment in increase of property, plant and equipment and intangible assets consist of capital investment amount of the buildings of thehead office that do not belong to individual reportable segments.
3. Total amount of Operating income (loss) for Reportable segments, Other and Adjustment is equal to the Operating income of Consolidated
Quarterly Statements of Income.

- 11 -

II. FY2018(from January 1, 2018 to December 31, 2018)

Information on net sales and income (loss) by reportable segment.

(Amounts less than one million yen are truncated)

Reportable segment
Other

Total

Adjustment Consolidated

2,714

621,591

-

2,778

4,262

31,706(31,706)

255,91052,447

6,977

653,297(31,706)

621,591

9,609

13,027(937)

48

29,081(140)

28,94153,18680,31367,15824,0892,144

226,891

271,898

498,790

Depreciation

778

7,860

3,226

589

56

12,512769

13,281

Increase in Property, plantand equipment andIntangible assets

681

6,733

2,989

313

18

10,7359

10,745

Consumers

EnterpriseArea

150,157

176,182

242,866

49,66887

11,534

13,043150,244

187,717

Operating income (loss)

7,333

AssetsProfessional

Net sales
Sales - external customers
Sales - intersegment
Total

621,591-

Other[Note]
1. "Other" includes call center business and BPO service business, which are not inluded in reportable segments.
2. Adjustments are as follows:(1) Adjustment of Operating income (loss) is the elimination of intersegment transactions.
(2) Adjustment in segment assets are corporate assets that do not belong to individual reportable segments. The corporate assets mainly
consist of surplus funds (cash and marketable securities), assets related to land of head office, buildings, and the administrative division of
the head office.
(3) Adjustment in depreciation expenses are depreciation expenses related to the buildings of the head office that do not belong to individual
reportable segments.
(4) Adjustment in increase of property, plant and equipment and intangible assets consist of capital investment amount of the buildings of thehead office that do not belong to individual reportable segments.
3. Total amount of Operating income (loss) for Reportable segments, Other and Adjustment is equal to the Operating income of Consolidated
Quarterly Statements of Income.

*NOTE*Starting from January 1, 2018, the Group transitioned to a new organizational structure from the existing one based on products to one basedon markets and customers, as part of efforts to achieve Phase III of our Long-Term Management Objectives. Accordingly it has changed
reportable segments from the existing ones of Business Solutions, IT Solutions, Imaging System and Industrial/Medical to the new ones,
Consumer, Enterprise, Area and Professional from this first quarter of consolidated accounting period.
We established the BPO Management Center in July 2018 to strengthen the BPO service business. As a result, the reporting segment for
Canon BizAttenda Inc., which engages mainly in the BPO service business, was changed from “Enterprise” to "Other."
Results for fiscal 2017 and segment information for the January - June results in fiscal 2018 are presented after they are prepared based on
the classification method applicable after the change.

- 12 -