Canon Marketing Japan Inc.
January 26, 2010

Summary Report of Consolidated Financial Results
For the fiscal year ended December 31, 2009

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
Masami Kawasaki, President
Yo Shibasaki,Telephone:Tokyo Stock Exchange,
First Section
Tokyo+81-3-6719-9071

Managing Director
Senior General Manager, Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance (From January 1, 2009 to December 31, 2009)(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

Change¥686,614¥827,486(17.0)%(8.6)%Net Income
per Share(Yen)

DilutedNet
Incomeper Share-Years ended Dec. 31

Full term 2009
Full term 2008

Years ended Dec. 31

Full term 2009
Full term 2008¥(31.62)¥78.63OperatingIncome¥6,297¥25,415

Change(75.2)%(31.1)%

Ordinary
Income¥8,222¥25,943

Change(68.3)%(29.7)%NetIncome¥(4,343)¥11,185

Change(44.2)%

Net Income to
Stockholders’ EquityRatio

Ordinary Income
toTotal Assets Ratio

Operating Income toNet Sales Ratio(1.7)%
4.3 %

1.8%
5.1%

0.9%
3.1%

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

Total Net Assets

Years ended Dec. 31

Full term 2009
Full term 2008
Note
Stockholders’ Equity¥449,607¥484,936¥250,875¥259,043

Stockholders’ Equity

Stockholders’ Equity

Ratio

per Share (Yen)
54.9%
52.6%

Full term 2009:246,829millions of yen / Full term 2008:255,220millions of yen1

¥1,797.31¥1,858.39

Canon Marketing Japan Inc.

(3) Cash Flows(Millions of yen truncated to the nearest million)

Years ended Dec. 31

Net Cash Provided

Net Cash Used in

Net Cash Used in

Cash and Cashby Operating Activities

Investing Activities

Financing Activities

Equivalents at End ofPeriod

Full term 2009
Full term 2008

¥18,145¥41,122¥(25,834)¥(28,967)¥(4,324)¥(21,738)¥95,575¥107,588

2. Dividends

Dividend per

The end of

The end ofInterima TermAnnual

Total

Dividend ratio

Dividend toDividends for fullsharetotal assets

term

Full term 2008

¥20.00¥20.00¥40.00¥5,619 million

50.9%

2.2%

Full term 2009¥10.00¥10.00¥20.00¥2,746million-1.1%

Full term 2010----（Target）
Note
Dividends for the Full term 2010 have not be decided yet. They will be disclosed as soon as a decision is made.

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

Change¥690,000

0.5%

Years ended Dec. 31

Interim 2010
Full term 2010

Years ended Dec. 31

Interim 2010
Full term 2010

OperatingIncome¥8,000Net Incomeper Share(Yen)¥21.84

NoteEarnings Outlook of the Interim 2010 is not be disclosed.

2

Change27.0%

Ordinary
Income¥9,000Change9.5%

Net
Income¥3,000Change-Canon Marketing Japan Inc.

4. Notes(1) Significant changes in subsidiaries during the periodNo(2) Changes in accounting principles and procedures and presentation methods, etc. related to the preparation of consolidated
financial statements
(i)
(ii)

Changes associated with the revision of accounting standards, etc.
Changes other than (i)
Yes

Yes

(3) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
Full term 2009
151,079,972 shares
Full term 2008
151,079,972 shares(ii) Number of treasury stocks at the end of the period
Full term 2009
13,747,552 shares
Full term 2008
13,745,742 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.

3Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of December 31, 2009 and 2008
(Millions of yen truncated to the nearest million)

ASSETS

December31, 2008December
31, 2009

Current assets:
Cash and deposits
Notes and accounts receivable-trade
Short-term investment securities
Inventories
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Short-term loans receivable
Other
Allowance for doubtful accounts¥24,501
149,548
88,09634,143
5,388
20,0006,473(460)¥17,676
125,738
78,12022,027
3,213
545
4,360
40,00010,714(567)

Total current assets

327,692

301,828

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

44,105
30
4,455
7,659
41,739-40,908
3
4,216
6,809
31,629622

Total property, plant and equipment

97,98984,189Goodwill
SoftwareLease assets
Right of using facilities
Other

2,925
15,598
389
116

2,335
21,63726
288
103

Total intangible assets

19,02824,392

6,420
25
20,326
8,791
5,829(1,168)

5,154
21
21,2369,016
5,300(1,532)40,225
157,243¥484,936

39,196
147,778¥449,607

Noncurrent assets:
Property, plant and equipment

Intangible assets:

Investments and other assets:
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 December 31, 2009 and 2008

LIABILITIES(Millions of yen truncated to the nearest million)
December
December31, 2008
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

123,896
28,137
6,085
2,280
7
3,084
114
1,106
290
18,736

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

Total current liabilities

183,739

153,709

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

279
37,122
804
937
3,010

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

Total noncurrent liabilities

42,153225,893

45,022
198,731

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,303
83,289123,616(24,730)

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

Total shareholders' equity

255,477

246,985

(212)
(45)

(116)
(39)

(257)
3,822
259,043484,936

(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 adjustmentsMinority interests
Total net assets

Total liabilities and net assets

Consolidated Balance SheetsCanon Marketing Japan Inc.

Consolidated Statements of Income
For the Full term ended December 31, 2009 and 2008
From January 1to December 31(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
Loss on retirement of inventories
Loss on valuation of inventories
OtherTotal non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on adjustment for changes of accounting standard for measurement ofLoss on valuation of investment securities
Expenses related to restructuring of consolidated subsidiaries
Loss on valuation of golf club membership
Expenses related to changing in business nameProvision for accrued prior year's long service rewards for employees
Expenses related to relocation of headquarters of affiliated companies
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income (loss)

Full term
2008¥827,486
554,467
273,019
247,603
25,415Full term
2009¥686,614
453,556
233,058
226,760
6,297

844
125
565
1,022
2,557

627
85
544
1,132
2,388

67
1,394
218
349
2,029
25,943

87
376
464
8,222

0
0
25
25

5,595
0
1665,762

604
144-593
10,768
1,299
1,103
65
15
5727
14,579(595)
1,476
1,925
3,402
345
¥(4,343)

1,124
592
27
138
929
142
36
3,740
22,228
10,336238
10,574468¥11,185

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of changes in net assets
For the Full term ended December 31, 2009 and 2008
From January 1to December 31(Millions of yen truncated to the nearest million)

Full term
2008

Full term
2009

Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Contributions to employee welfare pension fundTotal changes of items during the period
Balance at the end of current periodTreasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Contributions to employee welfare pension fundTotal changes of items during the period
Balance at the end of current period¥73,303¥73,303¥73,303¥73,303¥83,296¥83,289(6)(6)¥83,289

(0)
(0)
(0)
¥83,288¥118,527¥123,616(6,093)
11,185(3)
5,088¥123,616(4,120)(4,343)(0)(8,463)¥115,152¥(9,694)¥(24,730)(15,066)30(15,036)¥(24,730)

(3)
1(25)
(27)
¥(24,758)¥265,432¥255,477(6,093)
11,185(15,066)
23(3)(9,954)¥255,477(4,120)(4,343)
(3)
1(25)
(0)
(8,491)¥246,985

Consolidated statements of changes in net assets

Canon Marketing Japan Inc.

Consolidated Statements of changes in net assets
For the Full term ended December 31, 2009 and 2008
From January 1to December 31(Millions of yen truncated to the nearest million)

Full term
2008

Full term
2009

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustmentBalance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period¥639¥(212)(852)(852)¥(212)

95
95¥(116)¥14¥(45)

(59)
(59)
¥(45)

55
¥(39)

¥654

¥(257)(911)(911)¥(257)

100
100¥(156)¥3,481¥3,822341
341¥3,822223
223¥4,046¥269,568¥259,043(6,093)
11,185(15,066)
23(3)
(570)
(10,525)¥259,043(4,120)(4,343)
(3)
1(25)
(0)
324
(8,167)¥250,875

Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Total net assets
Balance at the end of previous period
Changes of items during the periodDividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Changes by sales of subsidiaries' stocks
Contributions to employee welfare pension fundNet changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Consolidated statements of changes in net assets

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the Full term ended December 31, 2009 and 2008
From January 1to December 31(Millions of yen truncated to the nearest million)

Full term2008
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 in allowance for doubtful accounts(Decrease) increase in provision for retirement benefits
Increase 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 sales of investment securities
Decrease in notes and accounts receivable-trade
Decrease in inventories(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) investment 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
Purchase of investments in subsidiaries resulting in change in scopeof consolidation
Proceeds from purchase of investments in subsidiaries resulting inchange in scope of consolidation
Payments for sales of investments in subsidiaries resulting inchange in scope of consolidation(Increase) in short-term loans receivable
Decrease in time deposits
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Repayments of finance lease obligations
Net (decrease) in short-term loans payable
Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activitiesEffect of exchange rate change on cash and cash equivalents
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Full term
2009¥22,228
12,059144
833
323(1,515)
50
(969)
67
577
(0)
38,7893,577(24,449)1,452¥(595)
12,356
10,768849509
845
40(712)
87(5,181)
7
23,281
8,634(16,828)(6,145)53,168976(85)(12,937)
41,122

27,918736(87)(10,422)
18,145(9,046)(8,579)
(816)
4,075
(18)

(6,957)
6,204(9,590)(8)16--(396)

32--

(188)

(19,993)
5,300
79(28,967)(19,999)
5,010
76(25,834)(473)(15,066)(6,097)(124)
23(21,738)(34)(9,617)
117,206¥107,588(77)(3)(4,121)(121)
1(4,324)(0)(12,013)
107,588¥95,575

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Business Segment Information
For the Full term ended December 31, 2009 and 2008
From January 1to December 31

Full term 2008
BusinessSolutions(Millions of yen truncated to the nearest million)Corporate Consolidate
Consumer Industrial
Total
anddEquipment Equipment
eliminations¥495,943
495,943
482,587
13,356¥265,827
265,827
255,583
10,243¥65,71565,71563,9001,815¥827,486
827,486
802,071
25,415

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

¥827,486
827,486
802,071
25,415¥208,180
10,478144
13,702¥86,654
1,012
3,018

¥48,008568
1,060¥342,843
12,059144
17,781¥142,092-¥484,936
12,059144
17,781

Net sales:
Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income, pamortization, Impairment loss, Capital
Total assets
Depreciation and amortization

Impairment loss
Capital expenditure

Full term 2009
BusinessSolutions(Millions of yen truncated to the nearest million)
Consumer Industrial
Total
Corporate Consolidate
Equipment Equipment
anddeliminations

Net sales:¥419,217 ¥241,747 ¥25,649 ¥686,614
419,217
241,747
25,649686,614422,494
231,063
26,759680,317(3,276)
10,683(1,109)6,297
Total assets, Depreciation and amortization, Impairment loss, Capital expenditure
Total assets¥199,710¥81,644 ¥17,495 ¥298,851
Depreciation and amortization
10,5071,308
540
12,356
Impairment loss
700
150
9,918
10,768
Capital expenditure
12,4553,467
1,116
17,039Unaffiliated customers
Intersegment
Total
Operating expenses
Operating income (loss)

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

¥686,614
686,614680,317
6,297¥150,756-¥449,607
12,356
10,76817,039Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2. Main Products & Services
Segment
Business Solutions

Consumer Equipment

Industrial Equipment

Main Products / Services
Business-use multifunctional products, print-on-demand (POD) digitalpresses, laser-beam printers, large format ink-jet printers, business-use
facsimiles, liquid crystal projectors, document scanners, color card printers,
color label printers, teleconference system, network cameras, service andsupport, system integration, embedded software, infrastructure&operation,
solution&software products, computer devices, network devices
Digital cameras, film cameras, interchangeable lenses, digital video cameras,
ink-jet printers, compact photo printers, personal-use plain-paper copiers,
personal-use scanners, electronic dictionaries, calculators, personal
computers
Lithography equipment for semiconductor manufactures and othersemiconductor manufacturing equipment, Lithography equipment for LCD
manufactures, medical equipment (digital X-ray cameras, ophthalmicequipment), broadcasting equipment

Consolidated Segment Information