Interim report
Page 1
Registered company name: Canon Marketing Japan Inc. Stock listing: Tokyo Stock Exchange, Prime Market Securities code: URL: https://corporate.jp.canon/en/ir Representative director: Masachika Adachi, President Inquiries: Akihiro Shirone, General Manager, Accounting Div. Dividend payable date (as planned): - U.S. Accounting Standards Applied: No 1.Consolidated financial results for the nine months ended September 30, 2026 (From January 1, 2026 to September 30, 2026) (1) Consolidated results of operations (Amounts less than one million yen are truncated) (Percentage represents increases or decreases from the same period last year) Nine months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen September 30, 2026 September 30, 2025 [Note] Comprehensive income: For the nine months ended September 30, 2026 : 28,542 million yen [8.2%] For the nine months ended September 30, 2025 : 26,368 million yen [(3.7%)] Nine months ended September 30, 2026 September 30, 2025 (2) Consolidated financial position (Amounts less than one million yen are truncated) As of September 30, 2026 December 31, 2025 [Reference] Shareholders' equity: As of September 30, 2026 : 391,969 million yen As of December 31, 2025 : 412,785 million yen 2.Cash dividends For the year ended December 31, 2025 For the year ending December 31, 2026 For the year ending December 31, 2026 (forecast) [Note] 1. Revision of cash dividends forecast for this period : None 3.Consolidated financial forecast for the fiscal year ending December 31, 2026 (Amounts less than one million yen are truncated) (Percentage represents increases or decreases from the previous year) Millions of yen % Millions of yen % Millions of yen % Millions of yen % Full year 0.8 7.0 6.1 [Note] 1. Revision of forecast for this period : None － 100.00 170.00 － 40.00 － 2. The basic earnings per share for the year ending December 31, 2026 (forecast) represents the amounts stated after giving effect to the share split described in 2. Cash dividends. Millions of yen Millions of yen Shareholders' equity per share Dividend per share Yen Yen Operating income Ordinary income Net income attributable to owners of the parent Basic earnings per share First quarter-end Second quarter-end Third quarter-end Yen 211.48685,000 63,000 8.3 64,000 44,000 Net sales 5.3 39,527 6.1 27,275 156.09 [Note] The Company conducted a share split in the proportion of two shares for one share of common stock, with the record date set as March 31, 2026 and the effective date set as April 1, 2026. Both of the basic earnings per share and diluted earnings per share, mentioned above, have been calculated on the assumption that the share split had been implemented at the beginning of the previous fiscal year. [Note] The Company conducted a share split in the proportion of two shares for one share of common stock, with the record date set as March 31, 2026 and the effective date set as April 1, 2026. The shareholders’ equity per share, mentioned above, has been calculated on the assumption that the share split had been implemented at the beginning of the previous fiscal year. Yen Yen Total assets Equity 156.15 125.30 125.25 October 26, 2026 Summary Report of Consolidated Financial Results for the Third Quarter Ended September 30, 2026 8060 Net sales Operating income Ordinary income Net income attributable to owners of the parent Basic earnings per share Diluted earnings per share 1.1 32,59947,698 20.7 % 507,670 3.2 46,915 22.8 19.5 491,822 3.9 38,201 2. The Company conducted a share split in the proportion of two shares for one share of common stock, with the record date set as March 31, 2026 and the effective date set as April 1, 2026. The annual dividends per share for the year ending December 31, 2026 and for the year ending December 31, 2026 (forecast) represents the amounts stated after giving effect to the share split. It should be noted that the annual dividends per share for the year ending December 31, 2026 (forecast) prior to giving effect to the share split would be 190.00 yen. % Yen Yen Yen Equity-to-asset ratio 538,750 392,692 72.8 1,903.71 Year-end Annual 564,426 413,814 73.1 1,925.07 Yen 55.00 95.00 － 70.00 Note : This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. - 1 -
Page 2
*Others None Yes (3) Changes in accounting policies, changes in accounting estimates, and restatement ( i ) None ( ii ) None ( iii ) Changes in accounting estimates : None ( iv ) Restatement : None (4) Number of issued and outstanding shares (common stock) ( i ) Number of issued and outstanding shares as of end of period (including treasury stock) As of September 30, 2026 : As of December 31, 2025 : ( ii ) Number of treasury stock as of end of period As of September 30, 2026 : As of December 31, 2025 : ( iii ) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year) Nine months ended September 30, 2026 : Nine months ended September 30, 2025 : Disclaimer : Earnings forecasts are based on information available at the time of announcement of these materials, and the Company cannot guarantee that they will be realized. Also, actual results may differ from the estimated figures given due to various factors. 7,733,234 208,772,109 217,682,639 * Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an independent auditor : None Scheduled date of disclosure: October 29, 2026 [Note] The Company conducted a share split in the proportion of two shares for one share of common stock, with the record date set as March 31, 2026 and the effective date set as April 1, 2026. The number of issued and outstanding shares (common stock), mentioned above, has been calculated on the assumption that the share split had been implemented at the beginning of the previous fiscal year. * Upon the completion of the review of the Japanese-language originals of the consolidated quarterly financial results by the independent auditor, the Company will disclose the Japanese-language originals of the consolidated quarterly financial results with the review report. 16,262,001 (1) Significant changes in the scope of consolidation during the period : 222,159,944 222,159,944 Changes in accounting policies due to revisions to accounting standards and other regulations : Changes in accounting policies due to other reasons : (2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements : - 2 -
Page 3
Consolidated Quarterly Balance Sheets (Amounts less than one million yen are truncated) As of December 31, 2025 As of September 30, 2026 Assets Current assets Cash and deposits 159,573 125,788 Notes, accounts receivable-trade and contract assets 126,624 108,710 Certificates of deposit due within three months 500 － Merchandise and service parts 39,681 53,462 Work in process 217 482 Supplies 463 475 Other current assets 12,641 13,326 Allowance for doubtful receivables (55) (51) Total current assets 339,646 302,194 Non-current assets Property, plant and equipment Buildings and structures, net 43,549 45,903 Machinery and vehicles, net 51 45 Furniture and fixtures, net 4,429 4,234 Rental assets, net 7,365 8,021 Land 28,154 28,154 Lease assets, net 1 0 Construction in progress 3,246 32 Total property, plant and equipment 86,797 86,392 Intangible assets Software 14,087 22,098 Goodwill 20,774 19,377 Customer-related intangible assets 16,799 16,060 Facility utilization rights 299 299 Other intangible assets 0 0 Total intangible assets 51,961 57,837 Investments and other assets Investments in securities 21,971 26,800 Prepaid pension and severance costs 55,930 57,431 Deferred tax assets 302 339 Lease deposits 2,730 2,579 Other investments and other assets 5,363 5,453 Allowance for doubtful receivables (276) (277) Total investments and other assets 86,021 92,326 Total non-current assets 224,780 236,556 Total assets 564,426 538,750 - 3 -
Page 4
Consolidated Quarterly Balance Sheets (Amounts less than one million yen are truncated) As of December 31, 2025 As of September 30, 2026 Liabilities Current liabilities Notes and accounts payable-trade 52,125 52,466 Short-term bank loans 1,100 1,100 Current portion of long-term loans 209 809 Current portion of long-term lease obligations 142 150 Accrued expenses 17,652 15,455 Accrued income taxes 10,170 8,072 Consumption taxes payable 7,182 3,270 Accrued bonuses 3,588 12,836 Accrued directors’ bonuses 140 75 Accrued product warranties 196 202 Accrued loss on contracts 123 179 Other current liabilities 32,448 28,667 Total current liabilities 125,081 123,287 Long-term liabilities Long-term loans 1,489 721 Long-term lease obligations 219 193 Allowance for long-term continuous service rewards 784 701 Accrued pension and severance costs 6,915 7,064 Deferred tax liabilities 13,764 11,777 Other long-term liabilities 2,357 2,311 Total long-term liabilities 25,530 22,770 Total liabilities 150,612 146,057 Equity Shareholders' equity Common stock 73,303 73,303 Capital surplus 82,710 82,695 Retained earnings 226,048 239,679 Treasury stock (20,365) (50,700) Total shareholders' equity 361,696 344,977 Accumulated other comprehensive income (loss) Unrealized gain (loss) on available-for-sale securities 9,049 8,865 Deferred gain (loss) on derivatives under hedge accounting 166 (12) Foreign currency translation adjustments 475 498 Defined retirement benefit plans 41,398 37,639 Total accumulated other comprehensive income (loss) 51,089 46,992 Stock acquisition rights 112 134 Non-controlling interests 917 589 Total equity 413,814 392,692 Total liabilities and equity 564,426 538,750 - 4 -
Page 5
Consolidated Quarterly Statements of Income (Amounts less than one million yen are truncated) Nine months of FY2025 Nine months of FY2026 (from January 1, 2025 (from January 1, 2026 to September 30, 2025) to September 30, 2026) Net sales 491,822 507,670 Cost of sales 335,012 345,315 Gross profit 156,810 162,355 Selling, general and administrative expenses 118,609 115,439 Operating income 38,201 46,915 Non-operating income Interest income 349 356 Dividend income 206 217 Insurance income 476 470 Gain on investments in partnership 435 － Other, net 257 204 Total non-operating income 1,726 1,249 Non-operating expenses Interest expense 50 73 Investment partnership management expenses 152 153 Foreign exchange losses 27 25 Loss on investments in partnership － 14 Other, net 169 200 Total non-operating expenses 400 467 Ordinary income 39,527 47,698 Extraordinary income Gain on sales of long-lived assets 0 0 Gain on sales of investments in securities 1,555 1,118 Other, net － 17 Total extraordinary income 1,555 1,136 Extraordinary losses Loss on sales and disposal of long-lived assets 68 107 Loss on sales of investments in securities 2 9 Impairment loss 494 － Other, net 4 － Total extraordinary losses 570 117 Net income before income taxes 40,512 48,717 Income taxes 13,176 16,070 Net income 27,335 32,646 Net income attributable to non-controlling interests 60 46 Net income attributable to owners of the parent 27,275 32,599 - 5 -
Page 6
Consolidated Quarterly Statements of Comprehensive Income (Amounts less than one million yen are truncated) Nine months of FY2025 Nine months of FY2026 (from January 1, 2025 (from January 1, 2026 to September 30, 2025) to September 30, 2026) Net income 27,335 32,646 Other comprehensive income (loss) Unrealized gain (loss) on available-for-sale securities 1,267 (191) Deferred gain (loss) on derivatives under hedge accounting (48) (178) Foreign currency translation adjustments (124) 24 Defined retirement benefit plans (2,061) (3,759) Total other comprehensive income (966) (4,104) Comprehensive income 26,368 28,542 Comprehensive income attributable to Owners of the parent 26,322 28,493 Non-controlling interests 46 48 - 6 -
Page 7
Consolidated Quarterly Statements of Cash Flows (Amounts less than one million yen are truncated) Nine months of FY2025 Nine months of FY2026 (from January 1, 2025 (from January 1, 2026 to September 30, 2025) to September 30, 2026) Cash flows from operating activities Net income before income taxes 40,512 48,717 Depreciation and amortization 8,909 9,790 Impairment loss 494 － Amortization of goodwill 1,397 1,397 Amortization of customer-related intangible assets 1,189 738 Increase (decrease) in allowance for doubtful receivables 103 (2) Increase (decrease) in accrued pension and severance costs 126 4 Decrease (increase) in prepaid pension and severance costs (4,473) (6,794) Increase (decrease) in accrued bonuses 9,947 9,248 Interest and dividend income (556) (574) Interest expense 50 73 Loss (gain) on sales and disposal of property, plant and equipment, net 61 90 Net loss (gain) on sales of investments in securities (1,552) (1,108) Net loss (gain) on investments in partnership (435) 14 Investment partnership management expenses 152 153 Decrease (increase) in notes and accounts receivable 16,704 18,089 Decrease (increase) in inventories (4,307) (14,057) 695 (2,129) Other, net (11,794) (9,130) Subtotal 57,224 54,519 Interest and dividends received 536 558 Interest paid (48) (73) Income taxes paid (19,350) (17,701) 38,361 37,302 Cash flows from investing activities Payments for purchases of property, plant and equipment (7,412) (8,607) Proceeds from sales of property, plant and equipment 38 8 Payments for purchases of intangible assets (4,799) (7,940) Payments for purchases of investments in securities (1,058) (5,344) Proceeds from sales of investments in securities 2,368 1,274 Decrease in short-term loans receivable, net 50,010 － Other, net (651) (982) Net cash provided by (used in) investing activities 38,495 (21,592) Cash flows from financing activities Repayments of finance lease obligations (0) (119) Repayments of long-term loans (167) (167) Payments for purchases of additional shares of a subsidiary － (361) Payments for purchases of treasury stock (1,072) (30,351) Dividends paid (16,325) (18,947) Dividends paid to non-controlling interests (26) (26) Proceeds from share issuance to non-controlling interests 5 5 Other, net (0) 0 Net cash used in financing activities (17,588) (49,967) Effect of exchange rate changes on cash and cash equivalents (123) (28) Net increase (decrease) in cash and cash equivalents 59,144 (34,285) Cash and cash equivalents as of beginning of period 110,726 160,073 Cash and cash equivalents as of end of period 169,870 125,788 Net cash provided by operating activities Increase (decrease) in notes and accounts payable-trade - 7 -
Page 8
Consolidated Quarterly Segment Information I. For the nine months of FY2025 (from January 1, 2025 to September 30, 2025) Information on net sales and income (loss) by reportable segment (Amounts less than one million yen are truncated) Enterprise Area Consumers Professional Net sales External customers 187,267 170,085 97,375 33,923 3,169 491,822 － 491,822 Intersegment 9,915 8,254 11 958 5,879 25,019 (25,019) － 197,183 178,340 97,387 34,882 9,049 516,842 (25,019) 491,822 Segment income (loss) 14,091 16,128 7,286 3,607 (2,958) 38,155 45 38,201 [Note] II. For the nine months of FY2026 (from January 1, 2026 to September 30, 2026) Information on net sales and income (loss) by reportable segment (Amounts less than one million yen are truncated) Enterprise Area Consumers Professional Net sales External customers 198,250 169,153 101,425 35,243 3,598 507,670 － 507,670 Intersegment 7,069 8,400 23 1,068 6,260 22,821 (22,821) － 205,320 177,553 101,448 36,311 9,858 530,492 (22,821) 507,670 Segment income (loss) 16,881 18,583 9,519 4,006 (2,193) 46,797 118 46,915 [Note] Reportable segment Other Total Adjustments Consolidated Total 3. Total segment income (loss) after adjustments for reportable and other business segments equals operating income in the consolidated quarterly statements of income. 2. Adjustment of segment income (loss) eliminates intersegment transactions. 1. “Other” is a business segment that is not included in the reportable segments of the Company and includes the shared service business. Total 2. Adjustment of segment income (loss) eliminates intersegment transactions. 1. “Other” is a business segment that is not included in the reportable segments of the Company and includes the shared service business. 3. Total segment income (loss) after adjustments for reportable and other business segments equals operating income in the consolidated quarterly statements of income. Consolidated Reportable segment Other Total Adjustments - 8 -