July 23,2013

Summary Report of Consolidated Financial Results
for the second quarter ended June 30, 2013

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
Dividend payable date (as planned):
August 27, 2013
U.S. Accounting Standards Applied: No
1.Consolidated business results for the six months ended June 30, 2013 (From January 1, 2013 to June 30, 2013)(1) Consolidated Results of Operations(Amounts less than one million yen are truncated)(Percentage represents increases or decreases from the previous year)
Net sales

Six months ended

Ordinary income

Net income%

Millions of yen%

Millions of yen%309,432

(4.2)

4,066

(48.0)

4,867(44.0)

1,973

323,044

9.8

7,815

535.1

8,695

197.7

4,688 146.0

June 30, 2013
June 30, 2012
[Note] Comprehensive Income:Operating income

Millions of yen

Millions of yen%

(57.9)

Six months ended June 30, 2013 : 2,861 million yen [(39.7)%]
Six months ended June 30, 2012 : 4,747 million yen [129.7%]
Net income
per share

Six months ended
June 30, 2013

Diluted net income
per shareYenYen

14.83-34.16
June 30, 2012
* Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses are deductedfrom net sales in order to present them on a net basis.
Accordingly, figures after retrospective reclassification in accordance with such changes are presented for FY2012 and thereafter.

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

Net assets

Millions of yen

Millions of yen

Second quarter ended June 30, 2013
Year ended December 31, 2012
[Reference] Shareholders' equity:

Equity ratio

Net asset per share%Yen

436,878

255,07358.3

1,914.81

462,574

254,08854.9

1,907.50

Second quarter ended June 30, 2013 : 254,833 million yen
Year ended December 31, 2012 : 253,862 million yen

2.Dividends
Dividend per share

Dividend per share

Year-end

AnnualFirst quarter-end

Second quarter-end

Third quarter-end

YenYen

Yen

Yen

Yen

Year ended December 31, 2012

-

10.00

-

14.00

24.00

Year ending December 31, 2013

-

12.00
-

12.00

24.00

Year ending December 31, 2013
(forecast)[Note] Revision of cash dividend forecast for this period : None
3.Consolidated financial forecast for the fiscal year ending December 31, 2013

(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

Net sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

665,600

1.018,000

7.1

19,0004.9

10,6000.2

79.65

Full year[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 ) :Yes( iii ) Changes in accounting estimates :Yes( 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)
As of June 30, 2013 :

151,079,972

As of December 31, 2012 :

151,079,972( ii ) Number of treasury stock at the end of the period
As of June 30, 2013 :

17,994,269

As of December 31, 2012 :

17,993,202( iii ) Average number of shares
Second quarter ended June 30, 2013 :133,086,106

Second quarter ended June 30, 2012 :

137,251,879

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.

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Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2012

As of June 30, 2013

AssetsCurrent assets
Cash and deposits

23,406

19,747

Notes and accounts receivable-trade127,648

106,558

Short-term investment securities

85,02987,619

Merchandise and finished goods

27,32825,370575

512Work in process
Raw materials and supplies

923

856

Deferred tax assets

4,708

4,734

Short-term loans receivable

40,00240,000

Other

7,214

7,516

Allowance for doubtful accounts

(230)

(184)

316,608

292,733

49,26548,853

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

12

11

4,687

4,534

Rental assets, net

8,217

9,469

Land

36,342

36,342

Lease assets, net

1,038

801

Total property, plant and equipment

99,564

100,012Intangible assets
Goodwill

61

38

Software15,376

13,295

Lease assets

176

133

Right of using facilities

317

317

Other

54

42

15,986

13,827

4,108

4,798

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

23

16

Deferred tax assets

17,596

17,193

Guarantee deposits

6,202

5,795

Other

2,984

2,933

Allowance for doubtful accounts

(501)

(433)

Total investments and other assets

30,41530,304145,965

144,145

462,574

436,878

Total noncurrent assets
Total assets-3-Consolidated Quarterly Balance Sheets(Amounts less than one million yen are truncated)
As of December 31, 2012

As of June 30, 2013

Liabilities
Current liabilities
Notes and accounts payable-trade104,162

87,061

Lease obligations

586

496

Accrued expenses

25,02820,202

Income taxes payable

5,122

1,953

Accrued consumption taxes

2,680

2,551

Provision for bonuses

2,989

3,083

Provision for directors' bonuses

63

33

Provision for product warranties

764

711

Provision for loss on order received

20142

Other21,979

21,019Total current liabilities

163,397

137,257

Lease obligations

859

627

Deferred tax liabilities

569

569

Deferred tax liabilities for land revaluation31

31

Provision for retirement benefits

37,80037,516

Provision for directors' retirement benefits

1,046

Accrued long service rewards for employees

900

Noncurrent liabilities

996

Other

3,880

4,806

Total noncurrent liabilities

45,08844,547

208,486

181,804

Capital stock

73,30373,303

Capital surplus

82,81982,819Retained earnings

124,624

124,734

Total liabilities
Net assetsShareholders' equity

Treasury stock(26,891)(26,892)

Total shareholders' equity

253,855

253,964

Valuation difference on available-for-sale securities

61827

Foreign currency translation adjustment

(54)

42

Accumulated other comprehensive income

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-4-6869225

240

254,088

255,073462,574

436,878

Consolidated Quarterly Statements of Income(Amounts less than one million yen are truncated)
Six months of FY2012(from January 1, 2012
to June 30, 2012)

Six months of FY2013(from January 1, 2013
to June 30, 2013)

Net sales

323,044

309,432

Cost of sales

214,378

206,229

Gross profit

108,666

103,203

Selling, general and administrative expenses

100,850

99,136

7,815

4,066

142

129

Operating income
Non-operating income
Interest income
Dividends income

65

70

Insurance income

588

587

Other336

310

1,132

1,097

Interest expenses

4816

Foreign exchange losses

977

194

202

Total non-operating income
Non-operating expenses

OtherTotal non-operating expenses
Ordinary income

252

296

8,695

4,867

13

Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill

179

Gain on sales of investment securities

61

Other01242

120

230

322

Total extraordinary income

115

Extraordinary loss
Loss on sales and retirement of noncurrent assets
Impairment loss

0

Special extra retirement payments-

Office transfer expenses

127

597
137

Other

21

27

Total extraordinary losses

379

1,084

Income before income taxes and minority interests

8,558

3,903

Income taxes

3,860

1,914

Income before minority interests

4,698

1,988

Minority interests in income
Net income-5-

9154,688

1,973

Consolidated Quarterly Statements of Comprehensive Income(Amounts less than one million yen are truncated)
Six months of FY2012(from January 1, 2012
to June 30, 2012)
Income before minority interests

Six months of FY2013(from January 1, 2013
to June 30, 2013)

4,698

1,988

Valuation difference on available-for-sale-securities

41766

Deferred gains or losses on hedges

0

Foreign currency translation adjustment

7

Other comprehensive income

Total other comprehensive income

10549872

4,747

2,861

Comprehensive income attributable to owners of the parent4,733

2,835

Comprehensive income attributable to minority interests

1325

Comprehensive income
Comprehensive income attributable to-6-Consolidated Quarterly Statements of Cash Flows(Amounts less than one million yen are truncated)
Six months of FY2012(from January 1, 2012
to June 30, 2012)

Six months of FY2013(from January 1, 2013
to June 30, 2013)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

8,558

3,903

Depreciation and amortization

7,747

8,590

Impairment loss

0Amortization of goodwill

438

Gain on negative goodwill

23(179)-Increase (decrease) in allowance for doubtful accounts

67(113)

Increase (decrease) in provision for retirement benefits353(250)

Increase (decrease) in provision for directors' retirement benefits

30(1,046)

(207)

(199)

Interest and dividends income
Interest expenses

48

16

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

218286

Decrease (increase) in notes and accounts receivable-trade

12,562

21,173

Decrease (increase) in inventories(2,825)

2,069

Increase (decrease) in notes and accounts payable-trade(8,845)(17,101)

Other, net

2,495(1,614)

Subtotal

20,462

15,738208

206

Interest and dividends income received
Interest expenses paid

(48)

(16)

Income taxes paid

(1,032)(5,082)

Net cash provided by (used in) operating activities

19,58910,8451910(8,962)(8,960)3257(1,499)(1,353)

Net cash provided by (used in) investing activities
Proceeds from sales of short-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assetsPurchase of investment securities

(6)

(94)

Proceeds from sales of investment securities

98699

Net decrease (increase) in short-term loans receivable19

1Decrease (increase) in time deposits

(34)

34

Other, net

1,736

(33)

Net cash provided by (used in) investing activities(8,596)(9,638)Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable(749)-Repayments of finance lease obligations

(316)

(355)

Purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(103)

(1)

(1,373)(1,866)

(8)

(9)

(47)

0(2,598)(2,232)00

Net increase (decrease) in cash and cash equivalents

8,395(1,024)

Cash and cash equivalents at beginning of period

102,372

108,259

Cash and cash equivalents at end of period

110,767

107,235-7-

Consolidated Quarterly Segment Information
I. Six months of FY2012 (from January 1, 2012 to June 30, 2012)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

ITSolutions

ImagingSystem

53,49083,011

IndustrialEquipment

OtherTotal

Adjustment Consolidated

Net sales
Sales - external customers

168,786-

Sales - intersegment
Total
Operating income (loss)

13,055

17,652-103--

323,044-

13,055(13,055)

323,044-

168,786

66,546

83,011

17,652

103

336,100(13,055)

323,044

5,457

42

2,310

(166)

171

7,815

-

7,815

[Note] "Other" includes shared service businesses.
II. Six months of FY2013 (from January 1, 2013 to June 30, 2013)
Information on net sales and income (loss) by reportable segment.
BusinessSolutions(Amounts less than one million yen are truncated)

IT
Solutions

ImagingSystem

IndustrialEquipment

55,527

77,764

12,437

Other

Total

Adjustment Consolidated

309,432-

Net sales
Sales - external customers

163,669-

Sales - intersegment
Total
Operating income (loss)

14,443-

33--

309,432

14,443(14,443)

163,669

69,971

77,764

12,43733

323,876(14,443)

309,432

-

3,397

16

1,484(1,000)

168

4,066

-

4,066

[Note] "Other" includes shared service businesses.
[Note] Starting from FY2013, the segment name of the Consumer Imaging was changed to Imaging System. The change in the segment nameentails no changes in the amounts presented.
[Note] About " I. Six months of FY2012 (from January 1, 2012 to June 30, 2012)"
Starting from FY2013, some of promotion expenses that have previously been presented in selling, general and administrative expenses arededucted from net sales in order to present them on a net basis. As a result of the retrospective reclassification, selling, general andadministrative expenses decreased by 6,656 million yen for the Business Solutions segment, by 151 million yen for the IT Solutions segment,by 3,083 million yen for the Imaging System segment, by 8 million yen for the Industrial Equipment segment and 0 million yen for the othersegment from the figures before the reclassification. Nonetheless, such decreases do not have an effect on the segment income.

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