April 23,2012

Summary Report of Consolidated Financial Results
for the first quarter ended March 31, 2012

Registered company name:
Stock listing:Code number:
URL:
Representative director:
Contact:

Canon Marketing Japan Inc.
Tokyo Stock Exchange, First Section
8060
http://cweb.canon.jp/eng/ir
Masami Kawasaki, President
Yo Shibasaki, Director Senior Vice President
Tel. +81-3-6719-9071
Scheduled date for commencement of dividend payment:
U.S. Accounting Standards Applied:No

1.Consolidated business results for the three months ended March 31, 2012 (From January 1, 2012 to March 31, 2012)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Three months ended

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%March 31, 2012

167,554

10.6

3,540

188.9

3,678

168.6

1,958-March 31, 2011

151,533(10.9)

1,225(41.9)

1,369(39.5)(572)-[Note] Comprehensive Income:Millions of yen%Three months ended March 31,2012 : 2,227 (-%) / Three months ended March 31, 2011 : (409) (-%)
Net income
per share

Three months ended

Diluted net income
per share
Yen

Yen

March 31, 2012

14.28

-March 31, 2011(4.17)-(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Net assets

Millions of yen

Millions of yen

First quarter ended March 31, 2012
Year ended December 31, 2011
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

452,257

252,15155.6

1,833.46

447,765

251,30756.0

1,827.25

First quarter ended March 31,2012 : 251,522 / Year ended December 31, 2011 : 250,670

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

YenYenYenYenYen

Year ended December 31, 2011-10.00

-

10.00

20.00

Year ending December 31, 2012

10.00

-

10.00

20.00

Year ending December 31, 2012
(forecast)[Note] Revision of cash dividend forecast for this period : None

3.Consolidated financial forecast for the fiscal year ending December31, 2012

Net sales
Millions of yen%---717,000 13.4

12,000Six months ending June 30, 2012
Full year(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net income
Operating income
Ordinary income
Net income
per share
Millions of yen[Note] Revision of forecast for this period : None
[Note] Consolidated financial forecast of the interim 2012 is not be disclosed.

-1-%Millions of yen%

Millions of yen----42.2

13,100 22.8

7,000%

Yen--

3.5

51.03

4.Others(1) Changes in significant subsidiaries during the period :None*This refers to changes in specified subsidiaries resulting in change of scope of consolidation.
(2) Application of a specified accounting procedure :Yes(3) Changes in accounting policies, accounting estimates and retrospective restatement( i ) Changes in accounting policies with revision of accounting standards :None( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :None(4) Number of shares issued (common stock)( i ) Number of shares issued at the end of the period (including treasury stocks)
As of March 31, 2012 :

151,079,972As of December 31, 2011 :

151,079,972( ii ) Number of treasury stock at the end of the period :As of March 31, 2012 :

13,895,292

As of December 31, 2011 :

13,895,071( iii ) Average number of shares during the period
Three months ended March 31, 2012 :

137,184,777

Three months ended March 31, 2011 :

137,184,134

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-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2011

As of March 31, 2012

AssetsCurrent assets
Cash and deposits

19,303

22,975

Notes and accounts receivable-trade

123,027

121,670

Short-term investment securities

83,21979,329Merchandise and finished goods

24,701

29,059438

501

Raw materials and supplies

1,193

1,314

Deferred tax assets

4,410

4,439

Short-term loans receivable

40,02840,026

Other

5,770

6,603

Allowance for doubtful accounts

(215)

(246)

301,878

305,674

40,23340,2971112

Tools, furniture and fixtures, net

3,831

4,162Rental assets, net

6,963

7,086

Land

36,832

36,831

Lease assets, net

1,255

1,160

Construction in progress

2,799

5,333

Total property, plant and equipment

91,92894,884Work in process

Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net

Intangible assets
Goodwill

524

304

Software19,25718,306

Lease assets

253

234

Right of using facilities

317

317

Other

82

75

20,435

19,237

4,084

4,401

Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable30

22

Deferred tax assets

19,02018,914

Guarantee deposits

7,857

6,500

Other

2,977

3,129

Allowance for doubtful accounts

(446)

(508)

Total investments and other assets

33,52332,460145,886

146,583

447,765452,257

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2011

As of March 31, 2012

Liabilities
Current liabilities
Notes and accounts payable-trade

100,046

99,237

Short-term loans payable

1,616

1,285Current portion of bonds

1,115

1,127

Lease obligations

604

592

Accrued expenses

21,46920,482

Income taxes payable

1,685

2,029

Accrued consumption taxes

2,208

1,932

Provision for bonuses

3,365

11,602

Provision for directors' bonuses

3711

Provision for product warranties

726

744

Provision for loss on order received

255

107

Other

17,95815,646

Total current liabilities

151,090

154,799

Noncurrent liabilities
Bonds payable60

Long-term loans payable

-564

504

1,152

1,048

Deferred tax liabilities

639

607

Deferred tax liabilities for land revaluation

3131

37,25937,393

Provision for directors' retirement benefits

906

875

Accrued long service rewards for employees

918

984

Lease obligations

Provision for retirement benefits

Other

3,835

3,860

Total noncurrent liabilities

45,36745,306

196,457

200,105

Capital stock

73,30373,303

Capital surplus

82,81982,819Retained earnings

116,933

117,519

Treasury stock(22,189)(22,190)

Total shareholders' equity

250,866

251,452(61)

170

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available- for-sale securities
Deferred gains or losses on hedges-0

Foreign currency translation adjustments

(133)

(100)

Total accumulated other comprehensive income

(195)

70636

629

251,307

252,151447,765452,257

Minority interests
Total net assets
Total liabilities and net assets-4-Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Three months of FY2011(from January 1, 2011
to March 31, 2011)

Three months of FY2012(from January 1, 2012
to March 31, 2012)

Net sales

151,533167,554

Cost of sales

99,850109,069

Gross profit

51,68258,485

Selling, general and administrative expenses

50,45654,944

Operating income

1,225

3,540

8371

Non-operating income
Interest income
Dividends income

915

Other

165

182

Total non-operating income

258

269

825

Non-operating expenses
Interest expenses
Foreign exchange losses

-29

Other

106

77

Total non-operating expenses

114

132

1,369

3,678

Gain on sales of noncurrent assets

00

Other

00

Total extraordinary income

0187

125

Impairment loss

00

Loss on disaster929

Ordinary incomeExtraordinary income

Extraordinary loss
Loss on sales and retirement of noncurrent assets

Office transfer expenses
Loss on adjustment for changes of accounting standard for asset
retirement obligation

7

Loss on valuation of investment securities
Other

126

1,131

-

298

-

193

5

2,648

257

(1,278)

3,422

Income taxes

(713)

1,466

Income (loss) before minority interests

(565)

1,956

Total extraordinary losses
Income (loss) before income taxes and minority interests

Minority interests in income (loss)
Net income (loss)

-5-

6(2)

(572)

1,958

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Three months of FY2011(from January 1, 2011
to March 31, 2011)
Income (loss) before minority interests

Three months of FY2012(from January 1, 2012
to March 31, 2012)

(565)

1,956

144

235

Other comprehensive income
Valuation difference on available-for-sale-securities
Deferred gains or losses on hedges-

Foreign currency translation adjustment

11

Total other comprehensive income

035

156

271

(409)

2,227

Comprehensive income attributable to owners of the parent(416)2,224Comprehensive income attributable to minority interests

73

Comprehensive income
Comprehensive income attributable to-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Three months of FY2011(from January 1, 2011
to March 31, 2011)

Three months of FY2012(from January 1, 2012
to March 31, 2012)

Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests(1,278)3,422

Depreciation and amortization

3,652

3,797

Impairment loss
Amortization of goodwill

00227

220

Increase (decrease) in allowance for doubtful accounts

(13)

93

Increase (decrease) in provision for retirement benefits

(174)

156

Increase (decrease) in provision for directors' retirement benefits

(165)

(31)

Increase (decrease) in provision for bonuses

7,461

8,236

(92)

(87)

Interest and dividends income
Interest expenses

825

Loss (gain) on sales and retirement of property, plant and equipment

52123

Loss on disaster

929-Decrease (increase) in notes and accounts receivable-trade

15,316

1,278

Decrease (increase) in inventories(6,830)(4,485)

Increase (decrease) in notes and accounts payable-trade(10,847)(809)

Other, net(5,736)(4,734)

Subtotal

2,510

7,206

9686

Interest and dividends income received
Interest expenses paid

(8)

(25)

Income taxes paid

(4,330)(997)

Net cash provided by (used in) operating activities(1,731)

6,270

Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities

1,000-

Purchase of property, plant and equipment(1,806)(5,511)

(792)

(654)

Purchase of intangible assets
Purchase of investment securities(4)(6)

Proceeds from sales of investment securities

1632404

Net decrease (increase) in short-term loans receivable
Decrease (increase) in time deposits

1,000

Other, net
Net cash provided by (used in) investing activities

-51

1,624

(387)

(4,518)

-

(390)

(109)

(159)

(0)

(0)

(1,373)(1,373)(7)(8)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, netNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents0(47)(1,490)(1,980)00

Net increase (decrease) in cash and cash equivalents(3,608)(228)

Cash and cash equivalents at beginning of period

109,575

102,372

Cash and cash equivalents at end of period

105,966

102,144-7-Consolidated Quarterly Segment Information
I. Three months of FY2011 (from January 1, 2011 to March 31, 2011)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

Consumer
Imaging

24,152

38,146

Industrial
Equipment

OtherTotal

Adjustment Consolidated

Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

86,162
-

3,019

53

7,330

-

86,162

31,48338,146

3,019

2,283(802)

(265)

(5)

151,533-

7,330(7,330)-53

158,864(7,330)151,533

(34)

1,176

49

1,225

-

-

151,533[Note] "Other" includes shared service businesses.
II. Three months of FY2012 (from January 1, 2012 to March 31, 2012)
Information on net sales and income (loss) by reportable segment.

(Amounts less than one million yen are truncated)

BusinessSolutions

ITSolutions

Consumer
ImagingIndustrialEquipment

Sales - external customers

90,142

27,37039,293

10,698

Sales - intersegment
Total

6,951

-

6,951

(6,951)-90,142

34,32239,293

10,69850

174,506(6,951)

167,554

Operating income (loss)

3,764

443

(1,000)

304

28

3,540

-

3,540

Other

Total

Adjustment Consolidated

167,554-

Net sales-50--[Note] "Other" includes shared service businesses.
*NOTE*As a result of the change in reportable segments, the "Commercial Imaging Equipment", which was previously included in"Industrial Equipment" segment, is included in "Consumer Imaging" segment starting from the current fiscal year.
The segment information for the previous fiscal year is disclosed after reclassifying the figures in accordance with the newreportable segments mentioned above.

-8-167,554