Canon Marketing Japan Inc.
July 26, 2010

Summary Report of Consolidated Financial Results
For the Second quarter ended June 30, 2010
Registered Company Name:

Canon Marketing Japan Inc.

Stock Listing:Code No.:
URL:
Representative Director:
Contact:8060
http://cweb.canon.jp/eng/ir
Masami Kawasaki, President
Yo Shibasaki,

Headquarters:

Tokyo Stock Exchange,
First SectionTokyo

Telephone:+81-3-6719-9071

Managing Director,
Senior general manager of Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance ( From January 1, 2010 to June 30, 2010 )(1) Results of Operations (Year-to-date)(Millions of yen truncated to the nearest million, %)Net Sales

ChangeYears ended Dec. 31

Second quarter 2010
Second quarter 2009

¥334,194¥336,202
Net Income(0.6)%
ChangeYears ended Dec. 31

Second quarter 2010
Second quarter 2009

¥1,333¥ (4,577)-Operating
Income¥2,873¥3,659ChangeNet Incomeper Share(Yen)¥9.62¥(33.33)

Diluted Net
Income perShare-(21.5)%-Ordinary
Income¥4,096¥4,675

Change(12.4)%-(2) Financial Position(Millions of yen truncated to the nearest million, %)Total Assets

Total Net AssetsStockholders’
Stockholders’ Equity
Equity Ratio
per Share (Yen)
Second quarter 2010
¥ 436,698¥250,885
57.4%¥ 1,771.53
Full term 2009
¥ 449,607¥250,875
54.9%¥ 1,797.31【Reference】Stockholder’s Equity: Second quarter 2010 ¥250,729/ Full term 2009 ¥246,829
Years ended Dec. 31

2. Dividends(Yen)
Dividend per share

Full term 2009
Full term 2010
Full term 2010（Target）

The end of
the First
quarter-

The end of
the Secondquarter¥10.00¥10.00-The end of
the Thirdquarter

The end ofa term-

¥10.00-

Annual¥20.00-【Note】Dividends for Full term 2010 have not be decided yet. They will be desclosed as soon as a dicision is made.

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Canon Marketing Japan Inc.

3. Earnings Outlook (For the Fiscal year ending December 31, 2010)(Millions of yen truncated to the nearest million, %)Net Sales

Full term 2010
Percentage Change

Operating
Income¥690,000
0.5%

Ordinary
Income¥8,00027.0%

Net Income¥9,0009.5%¥3,000-Net Income
per share(Yen)¥21.41

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 (i): Yes(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
the Second quarter 2010
151,079,972 shares
Full term 2009
151,079,972 shares(ii) Number of treasury stocks at the end of the period
the Second quarter 20109,546,823 shares
Full term 2009
13,747,552 shares(iii) Number of shares during the period (first six months)
the Second quarter 2010
138,732,306 shares
the Second quarter 2009
137,333,321 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.

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Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of June 30, 2010 and December 31, 2009
(Millions of yen truncated to the nearest million)

ASSETS

June 30,2010

December 31,2009

Current assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts¥18,270
101,971
94,81919,009
1,831
471
4,851
40,0006,656(533)¥17,676
125,738
78,12022,027
3,213
545
4,360
40,00010,714(567)

287,349

301,828

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

39,577
23,747
7,508
35,266
1,021

40,908
3
4,216
6,809
31,629622

Total property, plant and equipment
Intangible assets:

87,12384,189Goodwill
SoftwareLease assets
Right of using facilities
Other

1,883
22,419
55
288
120

2,335
21,63726
288
103

Total intangible assets
Investments and other assets:

24,767

24,392

3,915
17
21,2508,757
3,876(358)

5,154
21
21,2369,016
5,300(1,532)37,457
149,348¥436,698

39,196
147,778¥449,607

Total current assets

Noncurrent assets:
Property, plant and equipment:

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

Total investments and other assets

Total noncurrent assets

Total assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Balance Sheets
As of June 30, 2010 and December 31, 2009
(Millions of yen truncated to the nearest million)

LIABILITIES

June 30,
2010

December 31,
2009

Current 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

89,295277
20,821
3,082
1,634
7
3,071
52
861
1,072
20,534

106,443
189
22,902
697
2,268
8
3,138
26
878
130
17,025

Total current liabilities

140,711

153,709

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

869
2,068
37,291
693
1,081
3,097

502
2,078
37,538
844
1,007
3,050

Total noncurrent liabilities

45,101
185,81345,022
198,731

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,30382,819111,939(17,191)

73,303
83,288115,152(24,758)

Total shareholders' equity

250,870

246,985

(56)
(84)

(116)
(39)

(141)
155
250,885436,698

(156)
4,046
250,875
449,607

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 interestsTotal net assets

Total liabilities and net assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Statements of Income
For the Second quarter ended June 30, 2010 and 2009 (Year-to-date)(Millions of yen truncated to the nearest million)

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

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

The Second
quarter of 2010
¥334,194
222,175
112,019
109,145
2,873

369
68
524
346
1,307

214
52
546
657
1,471

67
225
292
4,675

16
231
248
4,096

5,571161
5,732

0400
210
611

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

174
450
476
1,101
3,606
2,201
71
¥1,333

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Second quarter ended June 30, 2010 and 2009 (Year-to-date)(Millions of yen truncated to the nearest million)

The SecondThe Second
quarter of 2009 quarter of 2010
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for directors' retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of property, plant and equipment
Loss (gain) on transfer of business
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 income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing 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 in scopeof consolidation
Payments for sales of investments in subsidiaries resulting in change
in scope of consolidation
Decrease (increase) in short-term loans receivable
Decrease (increase) in time deposits
Proceeds from transfer of business
Other, net
Net cash provided by (used in) investing activities
Net cash 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¥(3,040)
5,716
10,684
418
577
(3)
(60)
(437)
67(5,425)
42,707
7,687(32,407)(6,478)20,006458(67)(6,086)
14,310¥3,606
6,340
450
451
(168)
437
(150)
(267)
16
163
(400)
23,802
3,130(17,148)
2,275
22,541
277
(16)
2,920
25,722(3,900)5,901(5,521)(2)
9(8,315)438(2,870)
(40)
515

(396)

-

(188)

-

(19,999)
5,000
(191)
(19,289)

1,776
638(7,858)(18)(2)(2,733)(63)
0(2,816)4(7,791)
107,588¥99,796(117)(1)(1,378)(64)
1(1,562)(7)
16,294
95,575¥111,870

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the Second quarter ended June 30, 2010 and 2009 (Year-to-date)the Second quarter ended June 30, 2009
(From January 1 to June 30)

BusinessSolutions

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income (loss)¥225,519
225,519¥2,555the Second quarter ended June 30, 2010
(From January 1 to June 30)
Net sales:
Unaffiliated customers
Intersegment
Total
Operating income

BusinessSolutions¥227,037
227,037(¥1,188)

Consumer
Equipment¥97,871
97,871¥2,236
ConsumerEquipment¥100,300
100,300¥4,061(Millions of yen truncated to the nearest million)
Industrial
Corporate andConsolidated
Equipmenteliminations¥12,811
12,811(¥1,132)

\(-)
(-)
(-)

¥336,202
336,202¥3,659(Millions of yen truncated to the nearest million)
Industrial
Corporate andConsolidated
Equipmenteliminations¥6,856
6,856¥1\(-)(-)(-)¥334,194334,194¥2,873

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) digital presses,
personal-use pain-paper copiers, laser printers, large format ink-jet printers,
office-use facsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, teleconference system, network cameras, service
and support, system integration, embeded software, infrastructure&operation,
solution&software products, computer devices, network devices
Consumer Equipment

Digital cameras, interchangeable lenses, digital video cameras, ink-jet printers,compact photo printers, personal-use scanners, electronic dictionaries,
calculators

Industrial Equipment

Industrial equipment (impoted equipmet etc.), medical equipment (digital X-raycameras, ophthalmic equipment), broadcasting equipment

3.Segment change
The personal-use pain-paper copiers & personal computers which we had included in consumer equipment segment
until 2009, have been changed segment to a business solutions segment from 1Q in 2010.

Consolidated Segment Information