Canon Marketing Japan Inc.
October 25, 2010

Summary Report of Consolidated Financial Results
For the Third quarter ended September 30, 2010
Registered Company Name:

Canon Marketing Japan Inc.

Stock Listing:Code No.:
URL:
epresentative 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 September 30, 2010 )(1) Results of Operations (Year-to-date)(Millions of yen truncated to the nearest million, %)Net Sales

ChangeYears ended Dec. 31

Third quarter 2010
Third quarter 2009

¥491,229¥496,709
Net Income(1.1)%
ChangeYears ended Dec. 31

Third quarter 2010
Third quarter 2009¥296
¥ (4,536)-Operating
Income¥2,122¥4,086

ChangeNet Incomeper Share(Yen)¥2.12¥(33.04)

Diluted Net
Income perShare-(48.1)%-Ordinary
Income¥3,578¥5,630Change(36.4)%-(2) Financial Position(Millions of yen truncated to the nearest million, %)Total Assets

Total Net Assets

Stockholders’
Stockholders’ Equity
Equity Ratio
per Share (Yen)
Third quarter 2010
¥ 440,545¥248,469
56.4%¥ 1,754.44
Full term 2009
¥ 449,607¥250,875
54.9%¥ 1,797.31【Reference】Stockholder’s Equity: Third quarter 2010 ¥248,311/ Full term 2009 ¥246,829
Years ended Dec. 31

2. Dividends(Yen)Dividend per share
Full term 2009
Full term 2010
Full term 2010（Target）

The end of theFirst quarter-

The end of theSecond quarter¥10.00¥10.00-The end of theThird quarter-

The end ofa 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 Sales

Full term 2010
Percentage Change

Operating
Income¥677,000(1.4)%

Ordinary
Income¥7,00011.2%

Net Income¥8,500
3.4%¥3,000-Net Income
per share(Yen)¥21.41【Note】We changed the earnings outlook from that was announced on July 26.

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 Third quarter 2010
151,079,972 shares
Full term 2009151,079,972 shares(ii) Number of treasury stocks at the end of the period
the Third quarter 2010
9,546,589 shares
Full term 2009
13,747,552 shares(iii) Number of shares during the period (first three months)
the Third quarter 2010
139,665,953 shares
the Third quarter 2009
137,333,160 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 September 30, 2010 and December 31, 2009
(Millions of yen truncated to the nearest million)

ASSETS
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

September
30,
2010

December 31,
2009¥16,677
102,716
96,19923,328
1,665
479
4,691
40,0007,379(536)¥17,676
125,738
78,12022,027
3,213
545
4,360
40,00010,714(567)292,602

301,828

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

39,234
2
3,594
7,153
35,187
1,294

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

Total property, plant and equipment
Intangible assets:

86,466

84,189Goodwill
SoftwareLease assets
Right of using facilities
Other

1,656
22,185
56
288
113

2,335
21,63726
288
103

Total intangible assets
Investments and other assets:

24,29924,392

3,741
17
21,2228,773
3,770(347)

5,154
21
21,2369,016
5,300(1,532)

37,176
147,942¥440,545

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
Other
Allowance 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 September 30, 2010 and December 31, 2009
(Millions of yen truncated to the nearest million)

September30,
2010

December 31,
2009

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

93,316312
20,000
2,409
1,653
7
10,95479
836
564
17,144

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

Total current liabilities

147,280

153,709

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

1,125
2,069
36,889746
8253,139

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

Total noncurrent liabilities

44,795
192,077

45,022
198,731

Capital stock
Capital surplus
Retained earnings
Treasury stock

73,30382,819109,486(17,191)

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

Total shareholders' equity

248,417

246,9852(108)

(116)
(39)

(106)
157
248,469
440,548

(156)
4,046
250,875
449,607

LIABILITIESCurrent liabilities:

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
From January 1 to September 30, 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
Non-operating income:Interest income
Dividends income
Insurance income
OtherTotal non-operating income
Non-operating expenses:
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income:Gain on sales of noncurrent assets
Gain on transfer of business
Gain on sales of investments in securities
Other
Total extraordinary income
Extraordinary loss:
Loss on sales and retirement of noncurrent assets
Impairment loss
Loss on valuation of investment securities
Other
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes
Minority interests in income
Net income (loss)

The Third
quarter of 2009
¥496,709
326,100
170,608
166,521
4,086

The Third
quarter of 2010
¥491,229
325,709
165,520
163,397
2,122

503
71
533
794
1,903

307
55
590
805
1,759

77
281
359
5,630

26
277
303
3,578

5,595
166
5,761

0
400
211
612

310
10,685
2,708
13,704(2,312)2,060
164¥(4,536)

338
458
361
417
1,575
2,614
2,239
79
¥296

Consolidated Statements of Income

Canon Marketing Japan Inc.

Consolidated Statements of Cash Flows
From January 1 to September 30, 2010 and 2009
(Millions of yen truncated to the nearest million)

The Third
The Third
quarter of 2009 quarter of 2010
Net cash provided by (used in) operating activitiesIncome (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 and equipment
Loss (gain) on transfer of business
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing 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 investment in subsidiaries resulting in change in scopeof consolidation
Payments for sales of investments in subsidiaries resulting in change
in scope of consolidation
Decrease (increase) in short-term loans receivable
Decrease (increase) in time deposits
Proceeds from transfer of business
Other, net
Net cash provided by (used in) investing 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 provided by (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¥(2,312)
8,790
10,685
633
555
321
(9)
8,271
(575)
77
(5,307)42,5682,415(27,074)(12,365)
26,674596(77)(10,781)
16,411¥2,614
9,981
458
677
(176)
45(97)
7,856
(362)
26
237
(400)
23,076(1,022)(13,127)(3,387)
26,400
375
(26)
2,564
29,313(5,257)
5,959(8,037)(2)
15(9,472)
534(4,110)
(58)
515

(396)

-

(188)

-

(19,999)
5,000(199)(23,106)

(0)
1,776
874
(9,939)(41)(3)(4,118)(121)
1(4,283)(2)(10,981)
107,588¥96,607(210)(2)(2,794)(64)
1(3,069)(2)
16,301
95,575¥111,876

Consolidated Statements of Cash FlowsCanon Marketing Japan Inc.

Consolidated Segment Information
From January 1 to September 30, 2010 and 2009
the Third quarter ended September 30, 2009
(From January 1 to September 30)

BusinessSolutions

Consumer
Equipment(Millions of yen truncated to the nearest million)
Industrial
Corporate andConsolidated
Equipmenteliminations

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income (loss)¥328,567
328,567¥419

the Third quarter ended September 30, 2010
(From January 1 to September 30)

BusinessSolutions¥150,567
150,567¥5,146
Consumer
Equipment¥17,574
17,574(¥1,478)

\(-)
\(-)

¥496,709
496,709¥4,086(Millions of yen truncated to the nearest million)
Industrial
Corporate andConsolidated
Equipmenteliminations

Net sales:
Unaffiliated customers
Intersegment
Total
Operating income (loss)¥332,684
332,684(¥1,186)¥148,890
148,890¥3,672¥9,6539,653(¥363)

\(-)
\(-)

¥491,229
491,229¥2,122

Notes:
1.Organization of Segments
The Canon Marketing Japan Group has organized segments according to product and market characteristics.
2.Main Products in Each Segment
Segment
Main Products / Service
Business Solutions
Business-use multifunctional products, print-on-demand (POD) digital presses,
personal-use pain-paper copiers, laser printers, large format ink-jet printers,
office-use facsimiles, liquid crystal projectors, document scanners, color cardprinters, color label printers, teleconference system, network cameras, service
and support, system integration, embedded 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

Industrial equipment (imported equipment etc.), medical equipment (digital Xray cameras, 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