January 28, 2020

Summary Report of Consolidated Financial Results
for the fiscal year ended December 31, 2019
Registered company name:
Code number:Canon Marketing Japan Inc.
Tokyo Stock Exchange, First Section
8060

URL:

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

Representative director:

Masahiro Sakata, President

Contact:

Shiro Hamada, Director Vice President

Stock listing:Tel. +81-3-6719-9071
Dividend payable date (as planned):
U.S. Accounting Standards Applied:

March 27, 2020
No

1.Consolidated business results for the year ended December 31, 2019 (From January 1, 2019 to December 31, 2019)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)

Net salesYear ended
December 31, 2019
December 31, 2018
[Note] Comprehensive Income:

621,134%(0.1)

621,591(1.7)

Millions of yen(Percentage represents increases or decreases from the previous year)
Profit attributable
Operating income
Ordinary income
to owners of parent
Millions of yen% Millions of yen% Millions of yen%
32,43912.1
33,937
11.2
22,2506.8
28,941(4.8)

30,519(3.1)

20,826

0.7

Year ended December 31, 2019 : 30,965 million yen [123.7%]
Year ended December 31, 2018 : 13,842 million yen [(41.6)%]
Basic earnings
per share

Diluted net income
per share

Rate of returnon equity

Ordinary income tototal assets ratio

Yen

Yen

December 31, 2019171.60171.58

7.1

6.8

5.2

December 31, 2018160.61

-

6.9

6.0

4.7

Year ended%

Operating income to
net sales ratio%%(2) Consolidated Financial Position

Year ended December 31, 2019

Net assets

Millions of yen
503,698

Millions of yen
325,092

498,790

303,570

Year ended December 31, 2018
[Reference] Shareholders' equity:(Amounts less than one million yen are truncated)
Equity ratio
Net asset per share

Total assets

%
64.4

Yen
2,502.39

60.8

2,336.97

Year ended December 31, 2019 : 324,475 million yen
Year ended December 31, 2018 : 303,027 million yen(3) Cash Flows(Amounts less than one million yen are truncated)
Net cash provided byoperating activities

Net cash provided byinvesting activities

Net cash provided byfinancing activities

Cash and cash equivalents
at end of period

Year ended December 31, 2019

Millions of yen
22,052Millions of yen(94,584)

Millions of yen(8,557)

Millions of yen
54,493

Year ended December 31, 2018

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

2.Dividends
Dividend per shareFirst
quarter-end

Secondquarter
-end

Yen

Third
quarter-endYear ended December 31, 2018

-

Yen
25.00

Year ended December 31, 2019

-

30.00

Year ending December 31, 2020
(forecast)-Year-end

Annual(Consolidated)

Yen-

Ratio of
Total
dividends to
Payoutratio
dividends (Consolidated)
net assets(annual)

-

Yen
35.00

Yen
60.00

Yen
7,780

%
37.4

%
2.6

-

30.00

60.00

7,779

35.0

2.5

-

-

-

-

[Note] Dividend for the fiscal year ending December 31, 2020 is unfixed.
3.Consolidated financial forecast for the fiscal year ending December 31, 2020

Net sales% Millions of yen
600,000 (3.4)
34,000Millions 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-1-% Millions of yen %35,000 3.1

4.8%
22,800 2.5

Millions of yen

Yen

175.84

*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 :Yes( 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 the period (including treasury stock)
151,079,972
As of December 31, 2019 :As of December 31, 2018 :

151,079,972( ii ) Number of treasury stock at the end of the period
21,413,743
As of December 31, 2019 :As of December 31, 2018 :

21,412,840( iii ) Average number of shares
As of December 31, 2019 :

129,666,745

As of December 31, 2018 :

129,667,717-2-

(Reference) Summary of Non-Consolidated Financial Results
1.Non-Consolidated business results for the year ended December 31, 2019 (From January 1, 2019 to December 31, 2019)(1) Non-Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Operating income
Ordinary income
Net income

Net salesYear ended

Millions of yen%

Millions of yen

December 31, 2019473,229(0.5)

December 31, 2018

475,741(2.7)

Net income
per share
Yen

Year ended%

Millions of yen% Millions of yen%

15,669(3.0)

18,987(3.2)

13,287 (21.7)

16,148(18.3)

19,615(21.2)

16,959(6.5)

Diluted net income
per share
Yen

December 31, 2019

102.48102.47

December 31, 2018

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

Total assets

Net assets

Year ended December 31, 2019

Millions of yen
489,371

Millions of yen
297,426

Year ended December 31, 2018495,585

292,521[Reference] Shareholders' equity:

%
60.8

Yen
2,293.78

59.0

2,255.94

Year ended December 31, 2019 : 297,426 / Year ended December 31, 2018 : 292,521* Audits by CPAs or audit corporations are not required for financial results.

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, 2018
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
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
SoftwareLeased 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, 2019

65,071
117,041
70,50031,182
1,191
647
90,014
7,792(91)
383,349

53,993112,666
500
33,281
206
622
170,0126,197(75)
377,403

28,657112
3,059
10,842
28,91863
333
71,987

26,948
99
3,315
9,403
28,91831
14,09582,813

4,940
5
316
2
5,265

4,148
2
315
2
4,469

7,985
36
304
23,039
4,423
2,832
(432)
38,188
115,441
498,790

11,03735393
20,792
4,358
2,775
(382)
39,011
126,295
503,698

Consolidated Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2018
Liabilities
Current liabilities
Notes and accounts 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, 201975,831
100
16,676
6,967
4,063
3,437
79
447
147
22,151
129,90351,542
72
17,855
8,235
5,901
3,373
99
651
189
32,101
120,023

116
29
1,019
59,887
4,264
65,317
195,220103
1,042
53,956
3,480
58,582
178,606

73,30382,820189,957(31,924)
314,156

73,30382,820202,783(31,926)
326,979

2,518
1
75(13,725)(11,129)542
303,570
498,790

3,929
11
51
(6,497)(2,504)616
325,092
503,698

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2018(from January 1, 2018
to December 31, 2018)
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
Other non-operating expenses
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
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 investment securities
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
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

FY2019(from January 1, 2019
to December 31, 2019)

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

621,134
420,107
201,026
168,586
32,439

197
153
547
494
413
1,807

196
154
767
247
302
1,667

12
216
229
30,51912
157
169
33,937

126
489
214
830

13
2
15

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

206
82
329
31
649
33,302
12,626(1,663)
10,963
22,33989
22,250* Starting from FY2019, the Company recorded a portion of personnel expenses and others, which had previously been posted as
selling expenses, as the cost of sales. This is because the Company changed the aggregation range of costs as a result of examining thepositioning of costs for the performance obligation of services, which has been increasingly important in recent years in the wake of theearly adoption of the Accounting Standard for Revenue Recognition in FY2019. Compared with the previous method, this change
caused an increase of 20,072 million yen in the cost of sales and a decrease in gross profit by the same amount in FY2019. There is no
impact on operating income, ordinary income and profit before income taxes.

-6-

Consolidated Statements of Income(Amounts less than one million yen are truncated)
FY2018(from January 1, 2018
to December 31, 2018)
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-

FY2019(from January 1, 2019
to December 31, 2019)

20,893

22,339

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

1,412
9
(24)
7,228
8,625
30,965

13,77963

30,87589

Consolidated Statements of Shareholders' EquityI.

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

CapitalsurplusRetainedearnings

Total
shareholders'equityTreasurystocks73,30382,820176,911(31,921)301,113

Dividends of surplus--(7,780)-(7,780)

Profit attributable to owners of parent--

20,826-

20,826

Purchase of treasury stock

-

-

-

(3)

(3)

Disposal of treasury stock

-

0

-

0

0

Profit attributable to non-controlling interests

-

-

-

-

-

Dividends paid to non-controlling interests

-

-

-

-

-

Net changes of items other than shareholders' equity

-

-

-

-

-

-

0

13,046(3)

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

314,156

Changes of items during period

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

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

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

Noncontrollinginterests

Total net
assets

3,159

6

98

(7,345)(4,081)

490

297,522

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)

(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

Changes of items during period

Net changes of items other than shareholders' equity-8-Consolidated Statements of Shareholders' Equity
II.

FY2019 (from January 1, 2019 to December 31, 2019)(Amounts less than one million yen are truncated)
Shareholders' equity
Capitalstock

Balance at beginning of current period

CapitalsurplusRetainedearnings

Total
shareholders'equityTreasurystocks73,30382,820189,957(31,924)

314,156

-

-

(996)

-

(996)

73,30382,820188,961(31,924)

313,160

Dividends of surplus--(8,428)-(8,428)

Profit attributable to owners of parent--

22,250-22,250Purchase of treasury stock

-

-

-

(2)

(2)

Profit attributable to non-controlling interests

-

-

-

-

-

Dividends paid to non-controlling interests

-

-

-

-

-

Net changes of items other than shareholders' equity

-

-

-

-

-

-

-

13,821(2)

13,81973,30382,820202,783(31,926)

326,979

Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period

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

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

Deferred
gains orlosses onhedges

Total
Remeasurements accumulatedof defined benefit
other
plans
comprehensive
incomeForeigncurrencytranslation
adjustment

Noncontrollinginterests

Total net
assets

2,518

1

75

(13,725)(11,129)542

303,570

-

-

-

-

-

-

(996)

2,518

1

75

(13,725)(11,129)542

302,573

Dividends of surplus

-

-

-

-

-

-

(8,428)

Profit attributable to owners of parent

-

-

-

-

-

-

22,250Purchase of treasury stock

-

-

-

-

-

-

(2)

Profit attributable to non-controlling interests

-

-

-

-

-

89

89

Dividends paid to non-controlling interests

-

-

-

-

-

(15)

(15)

1,410

9

(24)

7,228

8,625

0

8,625

Total changes of items during period

1,410

9

(24)

7,228

8,625

74

22,519Balance at end of current period

3,929

11

51

(6,497)(2,504)616

325,092

Cumulative effects of changes in accounting policies
Restated balance
Changes of items during period

Net changes of items other than shareholders' equity-9-Consolidated Statements of Cash Flows(Amounts less than one million yen are truncated)
FY2018(from January 1, 2018
to December 31, 2018)

FY2019(from January 1, 2019
to December 31, 2019)

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 securities
Loss (gain) on valuation of investment 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

30,70813,281
15
99
1,228
(66)
2
(351)
12
182
(488)
158
(494)
8,355
858
(25,105)(3,032)25,365351(12)(8,713)
16,99033,302
12,257
82
(66)
4,468
(19)
(64)
(350)
12
190
(2)
329
(247)
4,857
(1,805)(24,301)
4,038
32,683346(12)(10,965)
22,052

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(9,905)263(2,238)
(677)
1,534

(11,651)
16(1,450)(1,383)
328

526

-

(0)
(30)
(10,526)(79,997)(446)(94,584)

91
(135)
(3)
(7,778)(11)
0(7,838)(33)(1,407)
136,979
135,571(109)(2)(8,426)(15)(2)(8,557)
11(81,077)
135,571
54,493

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
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 -

Consolidated Segment Information
I. 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
Consumers

EnterpriseArea

150,157

176,598

243,735

Professional

Other

Total

Adjustment Consolidated

621,591-

Net sales
Sales - external customers

44,656

3,442

13,833

1,769

4,549

28,808(28,808)

257,568

46,425

7,992

650,399(28,808)

621,591

12,078851

87

29,081(140)

28,94182,302

67,714

21,544

2,144

226,891

271,898

498,790

778

7,872

3,358

446

56

12,512769

13,281

681

6,741

3,086

207

18

10,7359

10,74587

8,569

150,244

188,167

Operating income (loss)

7,340

8,724

Assets53,186

Depreciation
Increase in Property, plantand equipment andIntangible assets

Sales - intersegment
Total

621,591-

Other[Note]
1. Other includes call center business and BPO service business, which are not included 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 consistof 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 -

Consolidated Segment Information
II. FY2019 (from January 1, 2019 to December 31, 2019)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
Consumers

EnterpriseArea

132,737

186,652

256,139

Professional

Other

Total

Adjustment Consolidated

621,134-

Net sales
Sales - external customers

41,887

3,717

12,170

1,787

5,579

28,767(28,767)

268,30943,6759,297

649,901(28,767)

621,134

14,398

1,617

(714)

32,235203

32,43994,42374,46524,736

2,352

240,738

262,960

503,698

641

7,462

3,218

387

28

11,737519

12,257617

17,723

2,516

544

22

21,42327

21,45053

9,176

132,790

195,828

Operating income (loss)

6,865

10,070Assets44,760Depreciation
Increase in Property, plantand equipment andIntangible assets

Sales - intersegment
Total

621,134-

Other[Note]
1. Other includes call center business and BPO service business, which are not included 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 consistof 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*(Changes in Reporting Segments)
Starting from the first quarter of the current year, the Company transferred “Visual Solutions,” which was a subsegment of the “Professional”
segment, to the “Enterprise” and “Area” segments. In addition, the amount of intersegment transactions changed because the Company
consolidated the planning and development functions of the security business, which were scattered across group companies, into the business
units with marketing oversight at Canon Marketing Japan.
Prior-year segment information has been restated accordingly to reflect these changes.

(Changes in Accounting Policy)
Starting from the beginning of the first quarter of the current year, the Company applied the revenue recognition accounting standard andguidance and since the Company changed its accounting methods for revenue recognition, it also changed its measurement methods for thesegment income or loss of its business segments accordingly.
Compared to the previous method, in FY2019, this change caused a decrease of 1,846 million yen in net sales and an increase of 19 million
yen in segment income in the “Consumers” segment, a decrease of 11 million yen in net sales and a decrease of 16 million yen in segment
income in the “Enterprise” segment, a decrease of 84 million yen in net sales and a decrease of 33 million yen in segment income in the“Area” segment, a increase of 0 million yen in net sales and a increase of 0 million yen in segment income in the “Professional” segment, anda decrease of 11 million yen in net sales and a decrease of 0 million yen in segment income in the “Other” segment.

- 12 -