July 26, 2023

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2023
Registered company name:

Canon Marketing Japan Inc.

Stock listing:Code number:Tokyo Stock Exchange, Prime Market8060

URL:

https://cweb.canon.jp/eng/ir

Representative director:

Masachika Adachi, President

Contact:

Akihiro Shirone, General Manager Accounting Div. Accounting Headquarters

Dividend payable date (as planned):
U.S. Accounting Standards Applied:

August 25, 2023
No

1.Consolidated business results for the for the six months ended June 30, 2023(From January 1, 2023 to June 30, 2023)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)

Net sales
Six months ended
June 30, 2023
June 30, 2022
[Note] Comprehensive Income:

302,778%
4.5

289,873

5.4

Millions of yen(Percentage represents increases or decreases from the previous year)
Net income attributable
Operating income
Ordinary income
to owners of the parent
Millions of yen
Millions of yen%
% Millions of yen%
27,091(2.7)
27,857(2.0)
18,661(3.7)
27,83235.2

28,41432.0

19,37228.7

Six months ended June 30, 2023 : 20,164 million yen [23.3%]
Six months ended June 30, 2022 : 16,348 million yen [5.1%]
Basic earnings
per share

Diluted net income
per share

Yen

Yen

June 30, 2023

143.91143.87

June 30, 2022

149.39149.36Six months ended(2) Consolidated Financial Position(Amounts less than one million yen are truncated)
Total assets

Second quarter ended June 30, 2023

Shareholders' equity
per share

Equity ratio

Millions of yen
555,725

Millions of yen
414,046

%
74.3

Yen
3,185.97

543,740

400,37273.5

3,081.07

Year ended December 31, 2022
[Reference] Shareholders' equity:

EquitySecond quarter ended June 30, 2023 : 413,153 million yen
Year ended December 31, 2022 : 399,542 million yen

2.Dividends
Dividend per shareFirst quarter-end Second quarter-end
Yen
Yen
Year ended December 31, 2022

-40.00Year ending December 31, 2023

-

50.00

Year ending December 31, 2023
(forecast)Third quarter-end
Yen

Year-end

Annual
Yen

Yen-

50.00

90.00

-

50.00

100.00[Note] Revision of cash dividend forecast for this period : Yes

3.Consolidated financial forecast for the fiscal year ending December 31, 2023

Net sales

Full year

Millions of yen%624,000

6.1(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Basic earnings
Net income attributable
Operating income
Ordinary income
to owners of the parent
per share
Yen
Millions of yen% Millions of yen % Millions of yen %52,000 4.1
53,400 4.7
36,000 1.3
277.61[Note] Revision of forecast for this period : Yes-1-*Others(1) Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries) :(2) Application of a specified accounting procedure :

None
Yes

(3) Changes in accounting policies and accounting estimates, retrospective restatement( i ) Changes in accounting policies based on revisions of accounting standard :Yes( ii ) Changes in accounting policies other than ( i ) :None( iii ) Changes in accounting estimates :None( iv ) Retrospective restatement :None(4) Number of issued and outstanding shares (common stock)( i ) Number of issued and outstanding shares at the end of the period (including treasury stock)
131,079,972
As of June 30, 2023 :As of December 31, 2022 :

131,079,972( ii ) Number of treasury stock at the end of the period
As of June 30, 2023 :1,400,825

As of December 31, 2022 :1,403,572( iii ) Average number of shares
As of June 30, 2023 :

129,677,728

As of June 30, 2022 :

129,676,107* Audits by CPAs or audit corporations are not required for quarterly financial results.

Disclaimer :Earnings projections are based on information available at the time these materials were announced, and theCompany cannot guarantee that they will be realized. Also, actual results may differ from the estimated figures
given due to various factors.

-2-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable-trade and contract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other current assets
Allowance for doubtful receivables
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery and vehicles, netFurniture and fixtures, net
Rental assets, netLand
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Software
Goodwill
Facility utilization rights
Other intangible assets
Total intangible assets
Investments and other assets
Investments in securities
Long-term loans receivable
Prepaid pension and severance costs
Deferred tax assets
Lease deposits
Other investments and other assets
Allowance for doubtful receivables
Total investments and other assets
Total non-current assets
Total assets-3-As of December 31, 2022

As of June 30, 2023

84,132
110,431500
37,89799523
180,012
6,153(43)419,708

102,724
94,944500
41,838265519
180,0108,907(47)429,661

48,384
68
2,670
4,890
28,3595897
85,276

48,612
64
2,734
5,515
28,3594
85,290

5,364
327
302
0
5,995

5,184
435
302
1
5,924

13,31215392
12,904
2,767
3,555
(187)
32,760124,032
543,740

15,63215420
12,393
2,839
3,738
(190)
34,849126,064
555,725

Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)

Liabilities
Current liabilities
Notes and accounts payable-trade
Current portion of long-term lease obligations
Accrued expenses
Accrued income taxes
Consumption taxes payable
Accrued bonuses
Accrued directors’ bonuses
Accrued product warranties
Accrued loss on contracts
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term lease obligations
Allowance for long-term continuous service rewards
Accrued pension and severance costs
Other long-term liabilities
Total long-term liabilities
Total liabilities
EquityShareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on derivatives under hedge accounting
Foreign currency-translation adjustments
Defined retirement benefit plans
Total accumulated other comprehensive income (loss)
Stock acquisition rights
Non-controlling interests
Total equity
Total liabilities and equity-4-

As of December 31, 2022

As of June 30, 2023

47,37645
16,6277,453
5,426
3,439
118
243
114
27,216108,062

44,43985
14,389
8,710
4,160
3,725
38
231
87
31,197
107,06773
749
32,141
2,340
35,305
143,368165
752
31,353
2,339
34,611
141,679

73,30382,827233,354(2,092)
387,392

73,30382,828245,532(2,092)399,571

5,202
(14)
293
6,667
12,14929
801
400,372
543,740

6,750
104
385
6,341
13,58243849
414,046555,725

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2022(from January 1, 2022to June 30, 2022)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance income
Other, net
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Loss on investments in partnership
Other, net
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of long-lived assets
Gain on sales of investments in securities
Other, net
Total extraordinary income
Extraordinary losses
Loss on sales and disposal of long-lived assetsLoss on sales of shares of subsidiaries and associates
Loss on impairment of investments in securities
Other, net
Total extraordinary losses
Net income before income taxes
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent-5-

Six months of FY2023(from January 1, 2023
to June 30, 2023)

289,873
189,126
100,746
72,914
27,832

302,778
200,790
101,988
74,89727,091

142
143
445
148
879

177
149
450
128
906

664
150
76
297
28,414

540
32
61
140
27,857

1
130
15

1
55
56

49405328,376
8,969
19,40634
19,372

376
159
3538
27,375
8,663
18,71150
18,661

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2022(from January 1, 2022
to June 30, 2022)
Net income
Other comprehensive income (loss)
Unrealized gain (loss) on available-for-sale securities
Deferred gain (loss) on delivatives under hedge accounting
Foreign currency-translation adjustments
Defined retirement benefit plans
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable toOwners of the parent
Non-controlling interests-6-

Six months of FY2023(from January 1, 2023
to June 30, 2023)

19,406

18,711(2,955)74
241(419)(3,058)16,3481,549
119
111(326)
1,453
20,164

16,28365

20,09470

Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2022(from January 1, 2022
to June 30, 2022)
Cash flows from operating activities
Net income before income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in accrued pension and severance costs
Decrease (increase) in prepaid pension and severance costs
Increase (decrease) in accrued bonuses
Interest and dividend income
Interest expense
Loss (gain) on sales and disposal of property, plant and equipment, net
Loss (gain) on sales of investments in securities
Loss (gain) on impairment of investments in securities
Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on investments in partnership
Decrease (increase) in notes and accounts receivableDecrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant 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 shares of a subsidiary
Decrease (increase) in short-term loans receivable, net
Payments for acquisition of business
Other, net
Net cash used in investing activities
Cash flows from financing activities
Repayments of finance lease obligations
Payments for purchases of treasury stock
Dividends paid
Dividends paid to non-controlling interests
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-7-Six months of FY2023(from January 1, 2023
to June 30, 2023)

28,3764,877(14)(1,649)
(19)
213
(285)
6
46(13)
4150
16,855421(4,807)(5,679)38,481285(6)(7,004)31,75627,3754,795
51
5(1,280)
(14)
287
(327)
5
59
(55)
159
32
15,498(3,741)(2,961)(709)
39,180326(5)(7,449)32,051(4,312)17(460)(370)
181(476)(5,582)(4,551)3(782)
(189)
109
(100)
2(750)(869)(7,128)(28)(1)(5,833)(23)(5,887)414
20,70068,02888,729(11)(1)(6,480)(22)(6,515)
183
18,591
84,632103,224

Consolidated Quaterly Segment Information
I. Six months of FY2022 (from January 1, 2022 to June 30, 2022)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
Consumers

Enterprise

62,737

95,281

Area

Professional

Other

Total

Adjustments Consolidated

289,873-Net sales
Sales - external customers
Sales - intersegment
Total
Operating income (loss)

107,090

23,204

1,560

5,713

679

3,879

15,549(15,549)

112,80323,8845,440

305,423(15,549)

289,873

4,081(961)

27,80526

27,83220

5,255

62,757

100,536

6,637

9,499

8,548

289,873-[Note]1. “Other” is a business segment that is not included in the reportable segments of the Company. The Other segment includes the shared service
business.
2. Adjustment of Operating income (loss) is the elimination of intersegment transactions.
3. Total segment income (loss) after adjustments for reportable and other business segments equals operating income in the consolidated quarterly
statement of income.

Ⅱ. Six months of FY2023 (from January 1, 2023 to June 30, 2023)
Information on net sales and income (loss) by reportable segment(Amounts less than one million yen are truncated)

Reportable segment
Other

Total

Adjustments Consolidated

Consumers

EnterpriseArea

64,122

101,426

112,969

21,3592,900

302,778

-

10

6,082

5,674

590

3,847

16,205(16,205)

64,132

107,509

118,643

21,9506,748

318,984(16,205)

302,778

6,196

9,870

9,271

2,860

(1,006)27,192(101)

27,091

Professional

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

302,778-[Note]
1. “Other” is a business segment that is not included in the reportable segments of the Company. The Other segment includes the shared service
business.
2. Adjustment of Operating income (loss) is the elimination of intersegment transactions.
3. Total segment income (loss) after adjustments for reportable and other business segments equals operating income in the consolidated quarterly
statement of income.

-8-