Canon Marketing Japan Inc.
April 22, 2010

Summary Report of Consolidated Financial Results
For the First quarter ended March 31, 2010
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 of Accounting
Headquarters

U.S. Accounting Standards Applied:No

1. Business Performance ( From January 1, 2010 to March 31, 2010 )(1) Results of Operations(Millions of yen truncated to the nearest million, %)Net Sales

ChangeYears ended Dec. 31

First quarter 2010
First quarter 2009

¥170,116¥169,832
Net Income

0.2%
ChangeYears ended Dec. 31

First quarter 2010
First quarter 2009¥657
¥ (4,541)-

Operating
Income¥2,108¥ (354)

ChangeNet Incomeper Share(Yen)¥4.79¥(33.07)

Diluted Net
Income perShare--

Ordinary
Income¥2,262¥ (117)

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

Total Net Assets

Years ended Dec. 31

First quarter 2010
¥ 445,892
Full term 2009
¥ 449,607【Reference】Stockholder’s Equity: First quarter 2010

Stockholders’
Stockholders’ Equity
Equity Ratio
per Share (Yen)¥250,304
55.2%¥ 1,793.29¥250,875
54.9%¥ 1,797.31¥246,276 / Full term 2009 ¥246,829

2. Dividends(Yen)Dividend per share

Full term 2009
Full term 2010
Full term 2010（Target）

The end of
the Firstquarter-

The end of
the Secondquarter¥10.00-The end of
the thirdquarter

The end of
a term
-¥10.00-

Annual¥20.00-【Note】Dividends for Full term 2010 have not be decided yet. They will be desclosed as soon as a dicision is made.

1Canon Marketing Japan Inc.

3. Earnings Outlook (For the Fiscal year ending December 31, 2010)(Millions of yen truncated to the nearest million, %)Net SalesFirst six months 2010
Full term 2010
Percentage Change

Operating
IncomeOrdinary
IncomeNet Income---¥690,0000.5%¥8,00027.0%¥9,0009.5%¥3,000-Net Income
per share(Yen)¥21.84【Note】Earnings Outlook for the first six months 2010 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): Yes(4) Number of shares issued (common shares)(i) Number of shares issued at the end of the period (including treasury stocks)
the first quarter 2010
151,079,972 shares
Full term 2009
151,079,972 shares(ii) Number of treasury stocks at the end of the period
the first quarter 2010
13,748,067 shares
Full term 2009
13,747,552 shares(iii) Number of shares during the period (first three months)
the first quarter 2010
137,331,964 sharesthe first quarter 2009
137,333,505 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.

2Canon Marketing Japan Inc.

Consolidated Balance Sheets
As of March 31, 2010 and 2009
(Millions of yen truncated to the nearest million)

ASSETS

March 31,2010December 31,
2009

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¥17,388
117,675
85,51923,525
2,061
476
4,298
40,00010,402(564)¥17,676
125,738
78,12022,027
3,213
545
4,360
40,00010,714(567)

300,784

301,828

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

40,186
3
4,049
6,459
31,509653

40,908
3
4,216
6,809
31,629622

Total property, plant and equipment
Intangible assets:

82,862

84,189Goodwill
SoftwareLease assets
Right of using facilities
Other

2,108
21,798
24
288
97

2,335
21,63726
288
103

Total intangible assets
Investments and other assets:

24,317

24,3924,455
19
20,878
8,944
5,155(1,527)

5,154
21
21,2369,016
5,300(1,532)37,927145,107¥445,892

39,196
147,778¥449,607

Total current assets

Noncurrent assets:
Property, plant and equipment:

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 March 31, 2010 and 2009

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

100,734
205
20,519
1,508
2,054
7
10,69426
871
671
13,609106,443
189
22,902
697
2,268
8
3,138
26
878
130
17,025

Total current liabilities

150,905

153,709

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

517
2,084
37,292
644
1,054
3,089

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

Total noncurrent liabilities

44,682
195,587

45,022
198,731

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,303
83,288114,436(24,759)

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

Total shareholders' equity

246,269

246,985

42
(35)

(116)
(39)

7
4,028
250,304
445,892

(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 adjustments

Minority interests
Total 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, 2010 and 2009
(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
Gain on sales of golf memberships
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on revision of retirement benefit plan
Loss on valuation of investment securities
Loss on adjustment for changes of accounting standard formeasurement of inventories
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Minority interests in income
Net income (loss)

The First
The First quarter
quarter of 2009of 2010
¥169,832¥170,116
114,010
114,477
55,822
55,63856,17753,529(354)
2,108
168
17168
354

110
7180
298

9
107
116(117)

8136
145
2,262

0
5
5400
2402

37
131
796

53
317
163
5

1,299
81
2,347(2,458)
2,036
46¥(4,541)

14
554
2,110
1,409
43¥657

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
For the First quarter ended March 31, 2010 and 2009
(Millions of yen truncated to the nearest million)

The FirstThe First
quarter of 2009 quarter of 2010
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
Decrease in provision for directors' retirement benefits
Increase in provision for bonuses
Interest and dividends income
Interest expenses
Loss on sales and retirement of property, plant and equipment
Gain on transfer of business
Decrease in notes and accounts receivable-trade
Decrease (increase) 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) investing activities
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 in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period¥(2,458)
2,890
131
202
628
(299)
(108)
8,796
(186)
936
30,185
1,503(21,964)(7,697)
11,669202(9)(6,058)
5,803¥2,1103,180317
226(8)
435
(199)
7,596
(118)
852(400)
8,045(1,624)(5,709)(4,856)
9,056
122(8)(717)
8,453(1,514)(3,251)
(0)
70
5,000
(37)
204

(1,574)(1,225)
(19)
2
1,776
198
(842)

(4)
(1)
(2,747)(63)0(2,817)
3
3,194
107,588¥110,783(55)
0(1,374)(64)
0(1,496)(1)
6,112
95,575¥101,687

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
For the First quarter ended March 31, 2010 and 2009
the First quarter ended March 31, 2009
(From January 1 to March 31)

BusinessSolutions

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income¥115,880
115,880(¥84)

the First quarter ended March 31, 2010
(From January 1 to March 31)

BusinessSolutions

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income¥117,838
117,838¥598

Consumer
Equipment¥45,605
45,605¥240
Consumer
Equipment¥48,370
48,370¥1,211(Millions of yen truncated to the nearest million)
Consolidated
Industrial
Corporate
Equipment
andeliminations¥8,3468,346(¥510)

\(-)
(-)
(-)

¥169,832
169,832(¥354)(Millions of yen truncated to the nearest million)
Consolidated
Industrial
CorporateEquipment
andeliminations¥3,9073,907¥298\(-)(-)(-)¥170,116
170,116¥2,108Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2.Main Products in Each Segment
Main Products / Service
Segment
Business-use multifunctional products, print-on-demand (POD) digital
Business Solutions
presses, personal-use pain-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, embeded software,
infrastructure&operation, solution&software products, computer devices,
network devices
Consumer Equipment

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

Industrial Equipment

Semiconductor manufacturing equipment, medical equipment (digital X-raycameras, ophthalmic equipment), broadcasting equipment

3.Segment change
The personal-use pain-paper copiers & personal computers which we had included in consumer equipment segment
until 2009, have been changed segment to a business solutions segment from 1Q in 2010.

Consolidated Segment Information