Canon Marketing Japan Inc.
April 22, 2008

Summary Report of Consolidated Financial Results
For the 1st quarter of the fiscal year ended December 31, 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 March 31, 2008)(1) Results of Operations
Net Sales
Years ended Dec. 31

Percentage
Change

1st quarter 2008
1st quarter 2007
Full term 2007

¥ 212,003¥ 213,439¥ 905,136
Net Income(0.7) %
+6.3 %

Percentage
ChangeYears ended Dec. 31

1st quarter 2008
1st quarter 2007
Full term 2007

¥ 3,630¥ 5,151¥ 20,033(29.5)%+33.0%(Millions of yen truncated to the nearest million, %)Percentage
Percentage
Operating
Ordinary
IncomeIncomeChangeChange¥ 7,680(18.6)%¥ 7,824(16.2)%¥ 9,429+32.0%¥ 9,334+28.5%¥ 36,886¥ 36,895
Net Incomeper Share(Yen)¥ 25.03¥ 34.42¥ 134.84

Diluted Net
Income perShare-(2) Financial Position
Total Assets
Years ended Dec. 31st1 quarter 2008
1st quarter 2007
Full term 2007

¥ 512,626¥ 510,597¥ 526,124(Millions of yen truncated to the nearest million, %)Stockholders’ Equity
Stockholders’ Equity
Ratioper Share (Yen)¥ 264,450
50.9%¥ 1,817.36¥ 265,963
51.5%¥ 1,756.29¥ 269,568
50.6%¥ 1,817.59

Total Net Assets(3) Cash FlowsNet Cash (Used in)
Net Cash Used inProvided byInvesting Activities
Operating Activities
Years ended Dec. 31
1st quarter 2008
1st quarter 2007
Full term 2007

¥ 7,642¥ (5,412)¥ 47,214¥ (125)¥ (9,251)¥(21,911)

1(Millions of yen truncated to the nearest million, %)Net Cash Used in
Cash and Cash
Financing Activities
Equivalents at End ofPeriod¥ (8,395)¥ (2,786)¥(16,344)¥ 116,293¥ 90,797¥117,206

Canon Marketing Japan Inc.

2. Earnings Outlook (For the fiscal year ended December 31, 2008)
Net Sales
Half term 2008
% change
Full term 2008
% change¥ 441,000+3.1%¥ 925,000+2.2%

Operatingincome¥14,000(17.6)%¥34,000(7.8)%

Ordinary Income

Net Income¥14,000(19.8)%¥ 34,000(7.8)%¥ 8,000(19.9)%¥ 19,000(5.2)%(Millions of yen)
Net Incomeper Share (Yen)¥ 55.70¥ 132.28

Notes:
1. There were no changes in Scope of Consolidation and Application of Equity Method
2. The simple method is adopted in appropriation standards, such as tax effect accounting and income taxes, etc.
3. There were no changes in accounting procedures.
4. 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 March 31, 2008 and 2007
(Millions of yen truncated to the nearest million)

ASSETS
Current assets:
Cash and cash deposits
Notes and accounts receivable
Marketable securities
Inventories
Deferred tax assets
Other current assets
Allowance for doubtful receivables

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:
Investments in securities
Long-term loans receivable
Deferred tax assets
Lease deposits
Other investments
Allowance for doubtful receivables
Total fixed assets
Total assets

March 31, 2008

March 31, 2007

December 31, 2007

¥ 33,566
170,358
93,12647,6796,109
8,438(255)
359,023¥ 92,802
187,571
8,218
55,806
6,918
7,250(221)358,346¥41,014
189,551
86,491
37,691
6,056
8,158
(310)
368,653

45,453
44
5,084
6,652
41,86599,09946,785
63
5,334
7,041
41,210100,435

45,492
54
5,011
7,236
41,86599,6593,568
10,540393
43
14,545

5,563
366
42
5,972

3,772
9,396
393
44
13,6067,581
26
19,5508,851
4,973(1,025)39,957
153,602¥512,626

15,44013
19,0197,830
4,710(1,171)45,842
152,251¥510,597

12,36929
19,262
8,627
4,936(1,020)44,205
157,471¥526,124

3

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
Negative goodwill
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

March 31, 2008

March 31, 2007

December 31, 2007

¥144,411
302
26,247
3,407
1,741
12
14,614
15,789206,526¥141,402
27,151
4,168
2,101
14,034
13,338202,196¥148,329
343
30,167
8,682
3,360
12
5,386
17,677
213,95963
319
37,801
641

255
38,759597

130
338
38,577738

2,824
41,650248,176

257
2,567
42,437
244,633

2,812
42,597
256,556

73,303
83,295
118,934(14,695)
260,836

73,30382,530106,527(1,245)
261,11473,303
83,296
118,527(9,694)
265,432

208

1,738

639

(18)
189
3,423
264,450¥512,626

16
1,754
3,093
265,963¥510,597

14654
3,481
269,568¥526,124

4

Canon Marketing Japan Inc.

Consolidated Statements of Income
For the 1st Quarter ended March 31, 2008 and 2007
From January 1,2008 to March 31, 2008
st1 quarter 2008

Net sales
Cost of sales
Gross profit
Selling, general and administrative¥212,003
144,288
67,71460,034(Millions of yen truncated to the nearest million, %)1 quarter 2007
Full Term 2007
Changest% of Net% of Net

Sales

Sales

100.0%
68.1
31.9
28.3

% of Net
Sales¥213,439
144,588
68,85059,421100.0%
67.7
32.3
27.9

¥(1,435)(299)(1,135)613(0.7)% ¥905,136(0.2)
615,389(1.6)
289,7461.0
252,860

100.0%
68.0
32.0
27.9

3.6

9,429

4.4

(1,749)(18.6)

36,886

4.1

0.3

157
186
172
517

0.3

96(186)
123
33

6.4

911
61
1,428
2,4000.3

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
Other
Extraordinary losses:
Loss on sales and disposal offixed assets
Loss on revaluation ofinvestments in securities
Expenses related toheadquarters in affiliatedcompanies
Expenses related to relocationof restructuring of
consolidated subsidiaries
Expenses related to changing inbusiness name
Other
Income before income taxes andminority interests
Current income taxes
Minority interests
Net income

7,680
254
296
550
16278
110
405
7,824
0
20
20

11
519

0.2
3.7

81612
9,334

0.0

12
12

5(240)

0.3
4.4

28(206)(1,509)

0.0

(12)
20
7

66
1,901

(33.7)(16.2)

423
2,391
36,895

0.3
4.1

60.3

15
1,298
1,313

0.1

92

74

18

558

77

-

77

1,235

220-

220

58

107-

107-

44-

44

20

14
555
7,290

0.3
3.4

23
97
9,249

0.1
4.3

(9)
458
(1,959)470.2(21.2)

883
2,757
35,4520.33.93,650
9¥3,630

1.7
0.0
1.7

4,054
43
¥5,151

1.9
0.0
2.4(404)(34)(1,520)(10.0)(79.0)(29.5)

14,748670¥20,033

1.6
0.1
2.25

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the 1st Quarter ended March 31, 2008 and 2007
From January 1,2008 to March 31, 2008
(Millions of yen truncated to the nearest million)
1st Quarter 2008 1st Quarter 2007
Full Term2007
Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill (negative goodwill)
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
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 (used in) 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¥7,290
3,080
221
(49)
(789)
(97)

¥9,249
2,684
(186)
(23)
(714)
(106)

¥35,452
11,968(61)(251)(1,658)
(10)

9,693
(254)
16
91
19,159(9,986)(3,918)(8,353)
16,106289(35)(8,718)
7,642

9,331
(157)
11
61
6,976
(3,808)(15,952)(5,618)
1,746
168
(11)
(7,314)(5,412)

(692)
(911)
66
424
10,79814,606(10,371)
1,048
60,410881(48)(14,028)
47,214(1,711)(1,833)
(34)
4,008
(18)
-

(1,167)
(851)
(623)
980
(2)

(7,270)(5,771)
(963)
3,188
(343)
(9,439)

(100)
(436)
(125)

(1,000)(4,995)(2,000)409(9,251)(1,000)(4,995)
4,683(21,911)(108)(5,003)(3,221)
(62)

(10)
(3)
(2,695)(50)(587)(10,019)(5,383)(331)

1(8,395)(34)(913)
117,206¥ 116,293(27)(2,786)0(17,450)
108,247¥ 90,797(22)(16,344)
0
8,958
108,247¥117,206

accompanying changes in scope of consolidation

Payments for deposit to long-term time deposits
Increase in time deposits
Increase in other investments
OtherNet cash used in investing activities
Cash flows from financing activities:
Decrease in short-term bank loans
Payments for purchases of treasury stock
Dividends paid by the Company
Dividends paid to minority interests inconsolidated subsidiaries
OtherNet 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 period6Canon Marketing Japan Inc.

Consolidated Segment Information
For the 1st quarter ended March 31, 2008 and 2007

1st quarter 2008
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

1st quarter 2007
Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income

BusinessSolutions¥131,288
131,288
125,785¥5,503BusinessSolutions¥123,826
123,826
118,870¥4,955

Consumer
Equipment¥60,498
60,49859,417¥1,081

Consumer
Equipment¥63,169
63,16959,914¥3,254(Millions of yen truncated to the nearest million)
Corporate
IndustrialandEquipment
Total
eliminations Consolidated¥20,216
20,216
19,120¥1,095¥212,003
212,003204,323¥7,680

¥

¥

(-)
(-)
(-)
(-)

¥212,003
212,003204,323¥7,680(Millions of yen truncated to the nearest million)
Corporate
IndustrialandEquipment
Total
eliminations Consolidated¥26,443
26,44325,224¥1,218

7¥213,439
213,439
204,009¥9,429

¥¥(-)
(-)
(-)
(-)

¥213,439
213,439
204,009¥9,429