Canon Marketing Japan Inc.
April 21, 2011

Summary Report of Consolidated Financial Results
For the First quarter ended March 31, 2011
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

Director
Senior Vice President
U.S. Accounting Standards Applied:No

1. Business Performance ( From January 1, 2011 to March 31, 2011 )(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Operating
IncomeChangeYears ended Dec. 31

Ordinary
IncomeChangeChangeFirst quarter 2011
151,533（10.9）%

1,225

170,1160.2%

2,108(41.9)%

1,369First quarter 2010

Net Income

Net Incomeper Share(Yen)

ChangeYears ended Dec. 31

First quarter 2011

(572)

First quarter 2010(39.5)%-2,262
Diluted Net
Income perShare-(4.17)
-657

4.79

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

Total Net Assets

Years ended Dec. 31

Stockholders’Equity Ratio

Stockholders’ Equity
per Share (Yen)First quarter 2011
428,868

245,057

57.1%

1,785.13

Full term 2010
448,592【Reference】Stockholder’s Equity: First quarter 2011

246,84655.0%
244,890 / Full term 2010 246,679

1,798.16

Canon Marketing Japan Inc.

2. Dividends(Yen)
Dividend per share

The end of
the First
quarter

Full term 2010
Full term 2011
Full term 2011（Target）-

The end of
the Second
quarter
10.00-

The end of
the thirdquarter

The end of
a term-Annual

10.00
-

20.00
-

【Note】Dividends for Full term 2011 have not be decided yet. They will be desclosed as soon as a dicision is made.

3. Earnings Outlook (For the Fiscal year ending December 31, 2011)(Millions of yen truncated to the nearest million, %)Net SalesFirst six months 2011
Full term 2011

OperatingIncome-Ordinary
Income-Net Income-

633,000

01,300(6.1)%(100)%(86.3)%

Net Income
per share(Yen)--(1,900)(13.85)Percentage Change-【Note】Earnings Outlook for the first six months 2011 has not be announced.

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): NO(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
the first quarter 2011
151,079,972 shares
Full term 2010
151,079,972 shares(ii) Number of treasury stocks at the end of the period
the first quarter 2011
13,896,004 shares
Full term 2010
13,895,647 shares(iii) Number of shares during the period (first three months)
the first quarter 2011
137,184,134 sharesthe first quarter 2010
137,331,964 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.

Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of March 31, 2011 and December 31,2010(Millions of yen truncated to the nearest million)

ASSETS

March 31,2011

December 31,2010

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

16,316
103,554
89,65024,851
1,279
495
5,409
40,0005,214(486)15,975
118,886
94,59919,005
1,115
410
4,930
40,0007,278(509)

Total current assets

286,285

301,693

Buildings and structures, net
Machinery, equipment and vehicles, netTools, furniture and fixtures, net
Rental assets, net
Land
Lease assets, net
Construction in progress

38,283
1
3,237
6,256
35,083
1,343
1,279

38,738
1
3,395
7,073
35,083
1,330
504

Total property, plant and equipment
Intangible assets:

85,485

86,127

Goodwill
SoftwareLease assets
Right of using facilities
Other

1,201
21,120
52
288
98

1,429
21,85755
288
105

Total intangible assets
Investments and other assets:

22,76023,736

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

3,747
14
20,785
7,508
2,619(338)

4,133
15
20,874
8,624
3,716
(329)

Total investments and other assets

34,336
142,582
428,868

37,035
146,899
448,592

Noncurrent assets:
Property, plant and equipment:

Total noncurrent assets

Total assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Balance Sheets
As of March 31, 2011 and December 31,2010

LIABILITIES(Millions of yen truncated to the nearest million)
March 31, December 31,
2011
2010

Current liabilities:
Notes and accounts payable-trade
Lease obligations
Accrued expenses
Income taxes payable
Accrued consumption taxes
Provision for bonuses
Provision for directors' bonuses
Provision for product warranties
Provision for loss on order received
Other

92,002426
18,794224
1,597
10,35013765
567
14,769102,849431
24,389
5,055
2,607
2,888
55
803
526
17,641

Total current liabilities

139,511

157,247

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

1,085
2,020
36,313
635
988
3,256

1,069
2,021
36,506
801
915
3,184

Total noncurrent liabilities

44,299183,81044,498201,745

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,30382,819110,970(22,192)

73,30382,819112,914(22,191)

Total shareholders' equity

244,901

246,845

97
(107)

(47)
(118)

(10)
166
245,057
428,868(165)
166
246,846448,592

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 First quarter ended March 31, 2011 and 2010
(Millions of yen truncated to the nearest million)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income:Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income:Gain on sales of noncurrent assets
Gain on transfer of business
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on disaster
Loss on adjustment for changes of accounting standard for
retirement obligations
Loss on valuation of investment securities
Loss on revision of retirement benefit plan
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Loss before minority interests
Minority interests in income
Net income (loss)

The First quarter The First quarterof 2010of 2011
170,116
151,533
114,477
99,85055,63851,68253,529
50,456
2,108
1,225
110
7180
298

83
9165
258

8136
145
2,262

8106
114
1,369

400
2402

00053
317-870929

5163
14554
2,110
1,409
43657

1,131
298
201
2,648
(1,278)(713)(565)
6(572)

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the First quarter ended March 31, 2011 and 2010
(Millions of yen truncated to the nearest million)

The First
The First
quarter of 2010 quarter of 2011
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
Increase（decrease) in provision for bonuses
Interest and dividends income
Interest expenses
Loss(gain) on sales and retirement of property, plant andLoss on disaster
Loss(gain) on transfer of business
Decrease(increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Iincrease (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Decrease in short-term loans receivable
Decrease in time deposits
Proceeds from transfer of business
Other, net
Net cash provided by (used in) iinvesting 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 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

2,110
3,180
317
226
(8)
435
(199)
7,596
(118)
852(400)
8,045(1,624)(5,709)(4,856)
9,056
122
(8)
(717)
8,453

(1,278)
3,652
0
227
(13)
(174)
(165)
7,461
(92)
852
929
15,316(6,830)(10,847)(5,736)
2,510
96
(8)
(4,330)(1,731)(1,574)(1,225)
(19)
2
1,776
198
(842)

1,000
(1,806)
(792)
(4)
163
0
1,000
51
(387)

(55)
(0)
(1,374)(64)
0(1,496)(1)
6,112
95,575
101,687(109)(0)(1,373)(7)
0(1,490)0(3,608)109,575
105,966

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the First quarter ended March 31, 2011
Main Company and Organization in Each Segment
Segment
Business Solutions

IT Solutions

Consumer Imaging

Industrial Equipment
Main Products in Each Segment
Segment

Business Solutions

IT Solutions

Main Companiy / Organization

Canon Marketing Japan Inc.
Business Solutions Company
Canon System & Support Inc.
Canon Print Square Inc.
Canon Marketing Japan Inc.
IT Product Promotion Headquarters
Canon MJ IT Group Holdings Inc.
Canon IT Solutions Inc.
Canon Software Inc.
Edifist Learning Inc.
Other 9 companies
Canon Marketing Japan Inc.
Consumer Imaging Company
Canon Field Assist Inc.
Canon Customer Support Inc.
Canon Marketing Japan Inc.
Industrial Equipment Sales Headquarters

Main Products / Service
Business-use multifunctional products, print-on-demand (POD) digitalpresses, personal-use plain-paper copiers, laser printers, large format
ink-jet printers, office-use facsimiles, liquid crystal projectors, document
scanners, color card printers, color label printers, teleconference
system, network cameras, service and support
System integration, embedded software, infrastructure&operation,
solution&software products, computer devices, network devices

Consumer Imaging

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

Industrial Equipment

Semiconductor manufacturing equipment, medical equipment (digital Xray cameras, ophthalmic equipment), broadcasting equipment

the First quarter ended March 31, 2011
(From January 1 to March 31)

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income

BusinessSolutions

86,162
86,1622,283

ITSolutions24,152
7,330
31,483(802)Consumer
Imaging

37,77937,779(197)

IndustrialEquipment

3,385
3,385
(73)

Other5353(34)(Millions of yen truncated to the nearest million)
TotalAdjustmentConsolidated

151,533
7,330
158,864
1,176(7,330)(7,330)49

151,533
151,533
1,225

Consolidated Segment Information