Canon Marketing Japan Inc.
Oct. 23, 2008

Summary Report of Consolidated Financial Results
For the Third quarter and the nine months ended September 30, 2008
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
Haruo Murase, President and CEO
Masami Kawasaki,
Telephone:Tokyo Stock Exchange,
First SectionTokyo+81-3-6719-9071

Senior Managing Director,
Head of Administrative Department

U.S. Accounting Standards Applied:

1. Business PerformanceNo(From January 1, 2008 to September 30, 2008)(1) Results of Operations
Net Sales
Years ended Dec. 31

Percentage
ChangeThird quarter 2008
Third quarter 2007
Full term 2007

¥ 612,307¥ 640,783¥ 905,136
Net Income(4.4)%+4.0 %

Percentage
ChangeYears ended Dec. 31

Third quarter 2008
Third quarter 2007
Full term 2007

¥ 7,772¥ 13,537¥ 20,033(42.6)%+4.4 %(Millions of yen truncated to the nearest million, %)Percentage
Percentage
Operating
Ordinary
IncomeIncomeChangeChange¥ 17,638(26.6)%¥ 18,213(25.3)%¥ 24,034+4.3 %¥ 24,375+3.1 %¥ 36,886¥ 36,895
Net Incomeper Share(Yen)¥ 54.12¥ 90.72¥ 134.84

Diluted Net
Income perShare-(2) Financial Position
Total Assets
Years ended Dec. 31
Third quarter 2008
Third quarter 2007
Full term 2007

¥ 478,131¥ 512,728¥ 526,124(Millions of yen truncated to the nearest million, %)Stockholders’ Equity
Stockholders’ Equity
Ratio
per Share (Yen)¥ 260,573
53.8%¥ 1,825.72¥ 268,375
51.3%¥ 1,785.72¥ 269,568
50.6%¥ 1,817.59

Total Net Assets(3) Cash Flows

Years ended Dec. 31
Third quarter 2008
Third quarter 2007
Full term 2007

(Millions of yen truncated to the nearest million, %)Net Cash
Net Cash Used in
Net Cash Used in
Cash and Cash
Provided by
Investing Activities Financing Activities
Equivalents at End of
Operating Activities
Period¥ 33,788¥ (24,739)¥ (16,699)¥ 109,529¥ 39,683¥ (24,232)¥ (10,964)¥ 112,684¥ 47,214¥ (21,911)¥ (16,344)¥ 117,2061

Canon Marketing Japan Inc.

2. Earnings Outlook (For the fiscal year ended December 31, 2008)
Net Sales
Full term 2008
% change¥ 840,000(7.2)%

OperatingIncome¥ 28,500(22.7)%

OrdinaryIncome¥ 29,000(21.4)%

NetIncome¥ 12,500(37.6)%(Millions of yen)
Net Incomeper Share (Yen)¥ 87.48

We changed our Earnings Outlook for the fiscal year ended December 31, 2008 that was announced on July 23, 2008.

3.Note1.
2.
3.

There were no changes in scope of significant subsidiaries.
The simple method is adopted in application of standards, such as tax effect accounting and income taxes, etc.
There were changes in accounting procedures.

*Percentage changes for net sales, operating income, ordinary income and net income results indicate increases
or decreases relative to results for the corresponding period in the previous fiscal year.

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
As of September 30, 2008 and 2007
(Millions of yen truncated to the nearest million)

ASSETS
Current assets:
Cash and cash deposits
Notes and accounts receivable
Short-term investments in securities
Inventories
Deferred tax assets
Short-term loans receivableOther current assets
Allowance for doubtful accounts

Property and equipment:
Buildings and structures
Machinery and vehicles
Furniture and fixtures
Rental assets
LandIntangible assets:
Goodwill
SoftwareUtilization rights
Other intangible assets
Investments and other assets:
Investment in securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other investments
Allowance for doubtful accounts
Total fixed assets
Total assets

September 30,
2008

September 30,
2007

December 31,
2007¥ 27,447
135,630
87,39240,6004,856
20,001
6,686(422)
322,193¥ 111,696
161,630
11,20850,250
5,871
6,670
(220)
347,108¥ 41,014
189,551
86,491
37,691
6,056
7
8,151
(310)
368,653

44,573
34
4,693
7,737
41,801
155,938

46,137
60
5,177
7,607
41,865
165,620

45,492
54
5,011
7,236
41,865
157,471

3,128
13,094390
40
16,653

3,522
8,953
393
45
12,915

3,772
9,396
393
44
13,606

7,578
27
19,6109,118
5,120(1,012)40,443
155,938¥ 478,131

19,70734
19,6578,370
5,304(1,218)51,855
165,620¥ 512,728

12,36929
19,262
8,627
4,936(1,020)44,205
157,471¥ 526,1243

Canon Marketing Japan Inc.
(Millions of yen truncated to the nearest million)
LIABILITIES AND NET ASSETS
Current liabilities:
Notes and accounts payable
Short-term bank loans
Accrued expenses
Accrued income taxes
Accrued consumption taxes payable
Deferred tax liabilities
Reserves
Other current liabilities
Long-term liabilities:
Long-term bank loans
Deferred tax liabilities
Liability for employees’ retirement benefits
Liability for directors’ and corporate
auditors’ retirement benefits
Liability for continuous service’s rewordsFor employees
Other long-term liabilities
Total liabilities
Stockholders’ equity:
Common stock
Capital surplus
Retained earnings
Treasury stock
Valuation and translation adjustments:
Net unrealized gain on available-for-salesecurities
Foreign currency translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

September 30,
2008

September 30,
2007

December 31, 2007

¥ 118,837
22,376
1,998
1,400
29
15,05815,882
175,583¥ 138,453
567
24,6793,390
2,309
15,29815,164
199,863¥ 148,329
343
30,167
8,682
3,360
125,386
17,677
213,959281
37,170
748

286
1,913
38,860699

130
338
38,577
738

820

--

2,952
41,973
217,557

2,730
44,489244,352

2,812
42,597
256,556

73,303
83,295120,203(19,699)
257,10273,30382,529112,032(6,251)
261,61273,303
83,296
118,527(9,694)
265,432

(105)

1,415

639

2(103)
3,574
260,573¥ 478,131

14
1,429
5,333
268,375¥ 512,728

14
654
3,481
269,568¥ 526,124

4

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the Third quarter ended September 30, 2008 and 2007
From January 1,2008 to September 30, 2008 (Nine Months)
Third quarter 2008

Net sales
Cost of sales
Gross profit
Selling, general and administrative(Millions of yen truncated to the nearest million, %)Third quarter 2007
Changes
Full Term 2007

% of Net% of Net

Sales

Sales

% of Net
Sales¥ 612,307
411,041
201,266
183,627100.0%
67.1
32.9
30.0

¥ 640,783
433,364
207,418
183,384

100.0%
67.6
32.4
28.6

¥ (28,475)(22,323)(6,152)243(4.4)%
(5.2)
(3.0)
0.1

¥ 905,136
615,389
289,746
252,860

100.0%68.0
32.0
27.9

17,6382.9

24,034

3.8(6,396)(26.6)

36,886

4.1

0.3

687
240
1,095
2,022

0.3

46(240)119(73)

(3.7)

911
61
1,428
2,400

0.3

expenses

Operating income
Other income:Interest and dividend income
Amortization of negative goodwill

Other
Other expenses:
Interest expense
Loss on disposal anddevaluation of inventories
Other
Ordinary income
Extraordinary gains:
Gain on sales of fixed assets
Gain on sales of investments insecurities
Other
Extraordinary losses:
Loss on sales and disposal offixed assets
Loss on devaluation ofinvestments in securities
Provision of liability fordeferment continuous
service’s reword
Expenses related to relocationof restructuring ofconsolidated subsidiaries
Expenses related to relocationof headquarters of affiliatedcompanies
Expenses related to relocationof warehouse
Loss on change in equity
Expenses related to changing inbusiness name
Other
Income before income taxes andminority interests
Income taxes
Minority interests
Net income

733
1,214
1,948
50
1,052
270
1,373
18,213

45
1,314

0.2
3.0

321
1,681
24,3750020
215(262)0.3
3.8

15
12
27

0.0

(51)
(307)
(6,162)66
1,901(18.3)(25.3)

(15)
(11)

0.0

20
(6)

423
2,391
36,895

0.3
4.1

15
805

(23.7)

492
1,313

372

312

59

558

267

-

267

1,235

929

-

929

-

487

-

487

58

142

-

142

-

-

226

(226)

226

132

66
17(66)
115

130
20

0.1

36
2,368
15,866

0.4
2.6

32
655
23,747

0.1
3.7

3
1,712
(7,881)

261.3(33.2)

527
2,757
35,452

0.3
3.9

7,882
211
¥ 7,772

1.3
0.0
1.3

9,968
241
¥ 13,537

1.6
0.02.1(2,086)(30)¥ (5,764)(20.9)(12.5)(42.6)

14,748670¥ 20,033

1.6
0.1
2.2

5

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the Third quarter ended September 30, 2008 and 2007
From July 1,2008 to September 30, 2008 (Three Months)
Third quarter 2008

(Millions of yen truncated to the nearest million, %)Third quarter 2007
Changes% of Net% of NetSales

Net sales
Cost of sales
Gross profit
Selling, general and administrative¥193,683
129,033
64,65061,322100.0%
66.6
33.4
31.7

Sales

¥213,074
143,869
69,20462,170100.0%
67.5
32.5
29.2

¥(19,391)(14,836)(4,554)(847)(9.1)%(10.3)
(6.6)
(1.4)

3.3

(3,707)(52.7)

0.1(69)
134
1276

21.8

expenses

Operating income
Other income:Interest and dividend income
Amortization of negative goodwill

Other
Other expenses:
Interest expense
Loss on disposal anddevaluation of inventories
Other
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes
and minority interests
Current income taxes
Minority interests
Net income

3,327
224
203
427

1.7

7,034

0.2

294
(134)191
350

15236

20365

(4)
(129)

58
310
3,444
219
3,225

0.1
1.8
0.0
0.1
1.7

89
475
6,909
2
170
6,741

0.2
3.2
0.0
0.0
3.2

(30)
(165)
(3,465)(2)
48(3,516)(34.7)(50.2)(100.0)28.1(52.2)

1,867
49¥ 1,308

1.0
0.0
0.7

3,12866¥ 3,546

1.5
0.0
1.7

(1,260)(16)¥ (2,238)(40.3)(25.4)(63.1)

6

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Third quarter ended September 30, 2008 and 2007
From January 1,2008 to September 30, 2008
(Millions of yen truncated to the nearest million)
Third quarter
Third quarter
Full Term2008
2007
2007
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill (negative goodwill)
Increase (decrease) in allowance for doubtful receivables
Reversal of liability for employees’ retirement benefits
Reversal of liability for directors’ and corporate auditors’
retirement benefits
Provision for (Reversal of) allowance for bonus payable
Interest and dividend income
Interest expense
Loss on sales and disposal of property and equipment, net
Gain on sales of investments in securities
Decrease in notes and accounts receivable(Increase) Decrease in inventories
Decrease in notes and accounts payable
Other
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchases of property and equipment
Payments for purchases of intangible assets
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Payments for purchases of investments in subsidiaries
Payments for purchases of investments in subsidiaries¥15,866
8,996
630
77
(1,458)(5)¥23,747
8,699
(240)
(143)
(1,358)(49)

35,452
11,968(61)(251)(1,658)(10)

10,053
(733)
50
354
(0)
53,787(2,898)(29,509)(9,155)46,057746(69)(12,946)
33,788

9,521
(687)
45
296
(12)
38,743
2,027(20,247)(7,904)52,437678(32)(13,400)
39,683

(692)
(911)
66
424
(805)
10,79814,606(10,371)
1,854
60,410881(48)(14,028)
47,214(7,092)(5,452)
(814)
4,070
(18)
-(5,670)(3,866)
(947)
1,522
(343)
(9,439)(7,270)(5,771)(963)
3,188(343)(9,439)27--(19,994)
5,000
(464)
(24,739)(1,000)(4,995)507(24,232)1(1,000)(4,995)
4,681(21,911)(473)(10,013)(6,096)
(124)

(208)
(27)
(5,012)(5,388)
(331)

(587)
(27)
(10,019)(5,383)(331)

7(16,699)(25)(7,676)117,206¥ 109,529

4(10,964)
(49)
4,436
108,247¥ 112,684

4(16,344)
08,958
108,247¥ 117,206accompanying changes in scope of consolidation

Proceeds from purchases of investments in subsidiaries
accompanying changes in scope of consolidation(Increase) decrease in short-term loans receivable
Payments for deposit of long-term time deposits(Increase) decrease in time deposits
OtherNet cash used in investing activities
Cash flows from financing activities:
Decrease in short-term bank loans
Payments for redemption of long-term bank loans
Payments for purchases of treasury stock
Dividends paid
Dividends paid to minority interests inconsolidated subsidiariesOther
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

7

Canon Marketing Japan Inc.

Consolidated Segment Information
For the Third quarter ended September 30, 2008 and 2007

Nine Months
Third quarter 2008
(From January 1 toSeptember 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

Third quarter 2007
(From January 1 toSeptember 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

Business
Solutions

Consumer
Equipment¥ 374,972−
374,972
363,683¥ 11,288¥ 183,782−
183,782
179,162¥ 4,619

Business
Solutions

Consumer
Equipment¥ 373,661−
373,661
362,433¥ 11,227¥ 191,602−
191,602
182,818¥ 8,783(Millions of yen truncated to the nearest million)
Corporate
IndustrialandEquipment
Total
eliminations Consolidated¥ 53,553−
53,553
51,823¥ 1,729¥ 612,307−
612,307594,669¥ 17,638

−
（−）
（−）
（−）
（−）

¥ 612,307−
612,307594,669¥ 17,638(Millions of yen truncated to the nearest million)
Corporate
IndustrialandEquipment
Total
eliminations Consolidated¥ 75,519−
75,51971,496¥ 4,023¥ 640,783−
640,783
616,749¥ 24,034

−
（−）
（−）
（−）
（−）

¥ 640,783−
640,783
616,749¥ 24,034

Three Months
Third quarter 2008
(From January 1 toSeptember 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

Third quarter 2007
(From July1 toSeptember 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

BusinessSolutions

Consumer
Equipment¥ 374,972−
374,972
363,683¥ 11,288¥ 183,782−
183,782
179,162¥ 4,619

Business
Solutions¥ 125,704−
125,704
122,985
2,719

Consumer
Equipment¥ 63,636−
63,636
60,6382,998(Millions of yen truncated to the nearest million)
Corporate
IndustrialandEquipment
Total
eliminations Consolidated¥ 53,553−
53,553
51,823¥ 1,729¥ 612,307−
612,307594,669¥ 17,638

−
（−）
（−）
（−）
（−）

¥ 612,307−
612,307594,669¥ 17,638(Millions of yen truncated to the nearest million)
Corporate
Industrial
andEquipment
Totaleliminations Consolidated¥ 23,732−
23,732
22,4151,317

8¥ 213,074−
213,074
206,039
7,034

−
（−）
（−）
（−）
（−）

¥ 213,074−
213,074
206,039
7,034