Seiko Epson Corp. · TSE:6724
Seiko Epson — FY2017 Earnings Presentation
36 slides from Seiko Epson's earnings presentation, 2018
Slide 1: FY2017 Results and FY2018 Forecast
2017 (20184 F3A HA) AA AREAS 2018 4A 278 tra-L9yy EPSON
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Slide 4: FY2017 results summary
2017S iBRARIA | /\45b EPSON 20164 | 2017 Sega Ca ac. ae ee Fe LINK 10,248 11,100 11,021 +772 = --78 BRATS 658 6.4% 790 7.1%| 747 6.8%! +89 -42 Seales 678 6.6% 720 6.5%] 650 5.9%| -28 -69 5 BFS 674 6.6% 720 6.5%| 626 5.7%! -48 -93 RAF SS 484 4.7% 510 4.6%] 417 3.8%] -66 -92 EPS* (F)) 136.82 144.79 11
Slide 5: FY2017 sales and operating income
Vv 2017 iBHASIA | BACIX> bal AF z = amet, +772 em) 10,248/11,100 RE mare: -78 12,000 FY2016 FY2017 FY2017— | mame. 2 =a MTS mare +2 2,000 FY2016 FY2017 FY2017 “a 6©feTe RM matt, +89, cam) | 658 | 790 MEZEM) more 42)
Slide 6: FY2017 Printing Solutions segment
Vv 2017 BHAI | TUYT1>IVVa—-TYayA EPSON inktt DP sIDM tort FOIIYVIFWIV FAY tO BRM LURES LIXD b ARS LIX bale 83% - - 8% - - 9% - - 1,978 +91 +18 173 “11 -6 -16 +0 +3 DP: Inkjet Printers ‘SIOM ; Serial Impact Dot Matrix Printers
Slide 7: FY2017 Visual Communications segment
; PSav saa 201725 WRB | 573551 em odDy FE EMRE 1,796 1,980 CIXD ha 161 240 PIX> MAR 9.0% 12.1% Fe LM IPS IVRES ORF1DAVVA-YayX~ 169 WIFI AAR 965 BRM LMNs -56 CIX> ha 78 LIX> MAREE 4.9%
Slide 8: FY2017 summary
2017FE ta EPSON B BLA PHS st BOI’ Caos ROACH Asa (SiR, —75 THROHHOAC— KICERRA <i> © WBE LSA OAR TCH A MEETS RA RIC NITRA LGR OIS A Y KEBAYIIYIEF IL, KYDUI-DYA 2-9 -FF2IAI- SUE, BHRIOSIII—, Ortyb ¥ WIRS151 S95 MEBMIRA, 54747 TEF RET. PIOJIAYF TOMI [TRUME] ABABA © FE -MBTCOM MBA ¥ DAUCY ALB (WU9-, JOS
Slide 9: FY2018 forecast summary
2018S imHARAP AB EPSON core ETT (18F3) RH % FAR % AURAL Fe _LMet 11,021 10,500 -521 RFR 747 6.8% 800 7.6% +52 BF tt 650 5.9% 750 7.1% +99 #5 BUF ZS 626 5.7% 740 7.0% +113 HAF at 417 3.8% 580 5.5% +162 EPS"? (Fa) 118.78 164.67 @BLU-b USD 110.85 100.00 (Fa) EUR 129.66 125.00 *LEPS : BRI RMN SNES *2 US
Slide 10: FY2018 forecast sales and operating income
2018473 BHAA IR | BSCIXD ball EPSON FyY2017 Fy2018
Slide 11: FY2018 business overview
Vv 20184 BA BIOEROY EPSON BI am B DY9—-DEDAAET NWRERE BIBL, 1290-9 FEF IDS KER IIDIET AOA BEIRE IS © KBB IID IEF IS, VIR Bafa Rh ART COL ISB MMO RIAN TY BE ¥ —HBRSEDRITZA MS, MLUES AA Mea ¥ TR-SY TiC, ERICH TERMED © 129N- My TET IU. BA VMMMER ICRP 2,000 ~ As ~ <f <IDYLOAY IFIP TVS I-A AREER ES > 1,5
Slide 12: FY2018 initiatives
20184 BAlOHOH es EPSON BS @ IB I1 1751 MESES AA HUEIC RS © FY2018i4, BALEMREN—Zlc, MISA THR ¥ SRO RICAN ERF RICO eRe Y EDRINEREDRAICHIA, FR Ee RAD RRREARSR FOIIWLat NIU FAI BID IYNC LORS: ESM (O4R-D. FERIA, FAIA) OFDWUCRIERS, MRSS
Slide 13: FY2018 forecast Printing Solutions
201845 iBHAM PAB | PUYF1>IVVa—-VayX EPSON (1873) -366 -231 finktt WP 83% 84% : SIDM 8% 7% tort 9% 9%| - JOIST I 1,978 1,840 -138 Emr 173 180 +6 RIFE LNs -16 -20 3 CIXY bls 948 1,000 +51 CIX> MARE 12.9% 14.3%
Slide 14: Segment strategy
20184 BRIO EPSON EVavVI=1=-7-Fay — | m Pitrihly COLI MAL FT IBO HG @ QLVIIN-ERIOIIY OLY STU | EFI IZORBCBRANR -L IT OWM AE @ OATIAVWA—-LavZ | Hip LOMA CH m4 707/\4 Alte | PBX -ARRARS 1 Py TSE
Slide 15: FY2018 forecast by segment
201846 sma MP AR | S2374 SI a, EPSON To LEME -108 IXY bla -24 CIXD Ale Fe EMM tet -63 SLIP STARE -43 ORF{DAYWVA-Tay~ +13 VrIOF I 4 Ath -49 PSMA LMG +16 CIX> Mallet +18 CIXY MAE
Slide 16: FY2018 investment plan
2018 SHAPE OERMICENIT EPSON @ 7 HCITML,. SBSRMMECARS SRO CLO, EDRAET OR PEED, HRIABAERRIS : HBS BSA ARTFUL A HERE © HAMMECRMRL, 4 IDTV I—-OELRAEF NEES © FIRM ROKMDOAA A FETS PB eA AR ACSA E <FY2018 -BAlmeimSA> 3) 1,000 nue FY2017 800 OTR RUA FY2018 600 Pigeon 400 200 0 FY2018 FY2018 (MIL — CT) aoe
Slide 17: FY2017 results
2017 iBRARA 2018FE iBRARIA PA 2017 B4U+RRS FSS ie FREVEIC
Slide 18: FY2017 results summary
2017S iBRARIA | /\45b EPSON 2016) ABieKEA Ca aac. a | ee Fe EM 10,248 11,100 11,021 +772 ~=—--78 BF Rt 658 6.4% 790 7.1%| 747 6.8% +89 -42 BRFles 678 6.6% 720 6.5%] 650 5.9%| -28 -69 #5 BFS 674 6.6% 720 6.5% 626 5.7%| -48 -93 SARA at 484 4.7% 510 4.6%! 417 3.8%] -66 -92 EPS* (F3) 136.82 144.79 118.7
Slide 19: FY2017 Q4 results summary
(2017 40H RASA | /\4Sh 2016 | 2017 | AISEIRALL (3) 4QHi % 4QRH % iRhaH Fe _LIMMA 2,590 2,686 +96 BF Rt 117 4.5% 163 6.1% +45 Beles 105 4.1% 127 4.8% +21 #5 BFS 100 3.9% 116 4.3% +15 POF HAF zt 13 0.5% 70 2.6% +57 EPS* (FA) 3.79 20.65 BRL-hk USD 113.64 108.39 (FA) EUR 121.08 133.20 + EPSP LORI
Slide 20:
Slide 21: FY2017 Q4 Printing Solutions
Vv 2017S B4U+HARA | PYF 1 >IVVa—-YayX% EPSON Fe LMNs 1,756 Wy9- 1,198 WMaktt DP 81% SIDM 8% Forth 11%) FOI wat WIFI 504 tore 58 BRAS LUNs -5 CIX> Millet 184 CIX> Me 10.5% (A) * UP: 42 INN EF IMS et emo. ea +73 | mHOFEL 87) AaB E29 7ET MAE ANS BEOUHAE - | * SIDM: _ | RISERabas © KHDD4-: = | WARD, FER
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Slide 23: FY2017 Q4 segment results
201745 se4naenasem | S732 Sa7 3 EBSON (@F3) * JOF1I9— : MER. 2D 9- FEF IEP DICE FE LM LOAD Millet tIXD RE CAF b-Ih: * Dityk : SFU RE REE Fe EMR °OkM : LPS URE +7) N-YIR RTT DARF{9AYVa-ayX +3) ° UR: : V4 9OF IVR | So BREF LMNs -3 tI XD Mls -8 tIX> PARE
Slide 24: Quarterly gross profit trend
Vv RTA SLU-MEBS +EBAABIHEB EPSON ERR [ 701 | 719 | 766 | 814 | 745 | 811 | 853 —EREEM +35 (OF oe Eumeatt) 31.4% 31.6% | 1,000 29.4% —28-9% S-~29.2%y 29.8% yi 27.6' 27.9) | 800 600 400 200 o |} 2016/1Q 2016/2Q 2016/3Q 2016/4Q 2017/1Q 2017/2Q 2017/3Q 2017/4Q
Slide 25: FY2017 Q4 operating income change
2017FRS40-FHs SRAM MBA EPSON +63 nieve nO ({8F3) 456s ———— 2016/4Q 2017/4Q
Slide 26: Balance sheet trends
Vv MBAS +BIRBES Best (1873) 10,000 5,000 0 2014/3 WAz ({8F3) 2,000 1,000 2014/3% 2015/3 2015/34 2016/3 2016/3 2017/3 2018/3 2017/3 2018/3% _____—
Slide 27: Balance sheet and equity ratio
Vv MNES +BIRBHES EPSON Bilt Ala -AAlF AKER, tyb4rys1 ((8F3) 24.3% sam 18.5% 15.1% 15.0% 16.1% 2,000 ms oa 0 ead A90 593 887 752 631 2014/3 2015/3 2016/3 2017/3 2018/3 RATOMAAl ESSA MAHA a wes A Ls (18°) 49.1% 49.7% 50.5% 49.6% S000 a =< o — —o 4,000 2,000 4,678 4,921 0 wt i 2014/3 2015/3 2016/3% 201
Slide 28: Capex, depreciation and R&D
EBA amir AR EPSON FAME (eA) tea FY2013 FY2014 FY2015 FY2016 FY2017 Fy2018 =m 2h = =m = Fe ase iRadSe eS «eh PS AD ({2F3) GI OA si ec ior hong FY2017 |xPo7n-n mEI0I79 oe pone
Slide 29: Cash flow and return metrics
> hit DY— yyy 1: I0—-/ERRS IER EPSON > MRAMCLSF17F2-70- WV—-Fryy1-70- fy BawcEstrya70- (48F9) 1,148 1,130 ee ' 1,088 ‘ 1,000 sa eae 0 “412 = 515 -1,000 757 -746 FY2013 FY2014 FY2015 FY2016 Fy2017 pt] =” zm =m am ERR FY2013 FY2014° FY2015 = = 2m ROS WL 8.9 9.3 7.8 Panes ROA agalt 10.4 10.6 8.7 eenEe
Slide 30: Shareholder returns
Vv PREEVEIC EPSON RBC IRS ERB AICTONIAT. HEPUROZIEBEIC HY AFS DSRS RATS SO RCA 3 Fl at iB CCM TL CRROD @ PHABVC(tAABCS He)" 40S EB RCLESAT. PRK ASOURBCEARADICHRL, BRE CRBC CANO BRET, LOMA eS w ACHR PAB . 2017 FM 2018 FAR Efe 62) 629 (pf) / WAAR) (3079 /32F) (3179/31F)) URAROMARMOMS (Fi) *? 3 COTA pe
Slide 31: EXCEED YOUR VISION
EPSON EXCEED YOUR VISION
Slide 32: Reference materials
WEA
Slide 33: Quarterly trends by segment
OFRA seas | BSLIXD bs EPSON meL-b (FR) USD 108.15 102.44 109.30 113.64 111,08 111.00 112.92) EUR 122.02 114.28 117,78 121.08 122.12 130.36 132.96 bm (@F) 2016/19 2016/29 2016/30 BOTBIAG 2017/19 2017/29 2017/39] WFPIWa-vIyK =—-1,573 1,613 1,923 1,756 1,659 t>274321>7-sa> 416 460 459 460 463 orra7kmmy
Slide 34: Quarterly operating income by segment
TOHHA SSR Filasitets | BS 7 XD bs EPSON BL ~b (FD) USD 108.15 102.44 109.30 113.64 111.08 111.00 112.92 er 5.28 133.20} EUR 122.02 114.28 117.78 121.08 122.12 130.36 132.96) 4+12.12 wane (@F) 2016/1Q 2016/2Q 2016/39 BONB/AG 2017/19 2017/2Q 2017/39] “mire Drak 128210 317,—s«184 221138351237 +53 t517h
Slide 35: Exchange rate impact
EBR MOM) coat ae om BS RMSLUPAR (HF FY. Joy1 oy- RES FANS, TITY MGORRECR IKE TT. ¥108.38 ¥118.79 +5% “1Hi%EME feyHAtE) ¥111.08 ¥112.92 122.12 ¥130.36 ¥132.96 ¥133.20 +7% +4% +13% +7% +10% EMH +10% HIE +H10%EME +10%8E HOVER! «+ 209IRME + 20% +1090 HE -2% -3% -7% -3% FINES +1HMOETR HE + 1M + 19TH +E +
Slide 36: FY2018 forecast details and exchange rates
ERS EPSON FY2018 ie , an i sa | Simi ale-+ = USD 108.38 ¥110.85 ¥100.00 ¥115.00 USD ¥108.38 ¥110.8S_-¥100.00¥115.00 ¥118.79 ¥129.66 ¥125.00 125.00 W118.79 -¥129.66 «= ¥125.00 —-¥125.00 nee te ont Tae to mac 968 8A21,080 3.30088 1,000 2 96 200 1,2001%8 1,880 2,000 220 - Re 753 794 830 2,100 1610 1.95