Seiko Epson : Explanatory presentation (with notes)(1.1MB)

Second Quarter Financial Results

Fiscal Year 2022

(Ending March 2023)

October 28, 2022

Seiko Epson Corporation

© Seiko Epson Corporation 2022

Disclaimer regarding forward-looking statements

The foregoing statements regarding future results reflect the Company's expectations based on information available at the time of announcement. The information contains certain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, the competitive environment, market trends, general economic conditions, technological changes, exchange rate fluctuations and our ability to continue to timely introduce new products and services.

Note regarding business profit

Business profit is calculated by deducting cost of sales and SGA expenses from revenue.

Although not defined in the statement of consolidated comprehensive income, this indicator is very similar to the concept of operating income under J-GAAP. Epson will present this information as a reference, as the Company believes users of financial statements will find it useful when evaluating Epson's financial performance.

Numerical values presented herein

Numbers are rounded down to the unit indicated. Percentages are rounded off to one decimal place. Years mentioned in these materials are fiscal years unless otherwise indicated.

© Seiko Epson Corporation 2022

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• Summary
• Second-QuarterFinancial Results
• FY2022 Full-Year Financial Outlook & Shareholder Returns
• Topics

© Seiko Epson Corporation 2022

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Summary

• Q2 Results (YoY)

¥335.2B in revenue (+¥66.8B), ¥26.8B in business profit (+¥1.3B),

¥23.7B in profit for the period (+¥4.7B)

• Selling prices were adjusted according to the balance between supply and demand amid ongoing supply constraints and soaring materials and logistics costs.
  Revenue, business profit, and profit for the period received positive impacts from exchange rate volatility.

Note: Revenue was in line with the internal plan on which the previous outlook (July 29) was based, but business profit exceeded the plan by about ¥6B. Visual communications results were stronger than expected.

• FY2022 full-year outlook (vs. previous outlook)

¥1,390B in revenue (+¥30B), ¥100B in business profit (no change),

¥82B in profit for the period (+¥8B)

• We factored into the current outlook a downward revision of unit sales due to slower than expected easing of supply constraints, in addition to a further deceleration of the Chinese market versus the previous outlook.
• We raised the revenue outlook and reiterated the business profit, as we will continue to adjust prices and control spending.
• The outlook for profit for the period was raised primarily due to Q2 foreign exchange gains.

© Seiko Epson Corporation 2022

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• This is a summary of the key points in today's presentation.
• Our second-quarter results were negatively impacted by ongoing supply constraints associated with semiconductor shortages and by skyrocketing materials and logistics costs compared to the same period last year.
  Even so, we recorded both revenue and profit growth largely due to dynamic pricing of products in accordance with the balance between supply and demand and as a result of the weaker yen.
• We have factored into the current full-year financial outlook a downward revision of unit sales due to slower than expected easing of supply constraints and a further deceleration of the Chinese market versus the previous outlook, but we are reiterating the business profit outlook, as we will continue to dynamically price products and to control costs.
• Details are provided on the slides that follow.

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• Summary
• Second-QuarterFinancial Results
• FY2022 Full-Year Financial Outlook & Shareholder Returns
• Topics

© Seiko Epson Corporation 2022

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