Seiko Epson Corp. · TSE:6724
Seiko Epson — Q2 2015 Earnings Presentation
38 slides from Seiko Epson's earnings presentation, 2015
Slide 1: EPSON Exceed Your Vision
EPSON EXCEED YOUR VISION 20154 (201643A Fi) 2-H RAAS 20154F10A 29H tra-I9yy ested y ‘ y zi
Slide 2: B PRRBLCHHNSicMOWCOFS BA
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Slide 3: 1.
EPSON YOUR VION 1. ME
Slide 4: Consolidated results summary
RB IS(h (HB 2 ERASE ARS) EPSON 3 Ane 7/30 (ar) eH % 7/307 % bt] % mele aay +301 +29 5,128} - [S400 eam o-oo =| = -106 37 509 9.9% 440 8.1% 402 7.4% 9 - geo 785 15.3% -368 (68), = --22 #1 (485) (9.5%) Biss ied 447, 7e -46.9%| (-14%) -5.2% 806 15.7% -405 = (-104) -38 (505) (9.9%) FADS BOL 7 -50.3%| (-
Slide 5: Results summary by period
RB \S1h (B20) 20145 2015 20k 208 A A 103.92 122.23 A A Py 137.76 135.98 A A +5.8% -13.4% +6.1% -7.0% -18.2% LFS 1QHMEIS 2,790 274 277 % +9,8% +9.9% 279: +10,0% 174 115.00 A 125.00 A +6,2% HL 2015/4/1EMAREBLUT IMC DA2ZROMALEDTHRN DERM, EPS. AD MEORT Me (ACMI) CLO
Slide 6: 2015 Q2 operating income variance
2015#ES20M PBI XD KB EPSON BE Fil tt uae) 2,665 2,790 Tae tite 3,000 WMHs = _-36 S - OLS: 2,500 453 [—| Be70999 FLW +20 2,000 — —; $28 | _ BRN +28 1,500 1,000 sso 500 £ a 5 FLW +84 ae l= "0 ef wes = -56 -3)G15s)-_ (4 }- {12} {-129) _ {-102). Fostpomy-amessa 2014/2Q 2015/2Q 2015/29 2014/29 2015/2Q 20
Slide 7: Segment overview: inkjet printers
SB 2 TEAR Dh (BRFSS SATII AR) EPSON BEC iH BENROBZAL — PRAANOARMBTS + UPIis, ABH1IYI9D7 — USS ICL OEERO EFIL- AAR eth Shs 2 NS HBBET LOM. 49 — ALKA IA-MwSET IA OF LISA OME F — 49D-WyFEF IE E7127 BS + JOLVII9I-O2QMF -— JOVIII-HRR RR SOARBeiciR - RKB — thine EF IL =y9 776 + OKROMENE SCRE — ++ hRORMMBA
Slide 8: 2015 forecast
2015 E#a P18 EPSON 20144 2015 RM | % «= 7/307 % IR LO 10,863 - 11,300 - 11,000 - “' - (0 1,012, 9.3% 1,020 9.0% 820 75% ()02 - (200 1,313 12.1% -403 = (-103) -90 ' 8% 8.3% ™1(1,013) (9.3%) 1,000 8 910 30.7% |(-10.2%) -9.0% 1,325 12.2% “445, (-144)) -120 (1,024) (9.4%) 1,000 6.6% 880 -33.6% |(-14.1%)
Slide 9: FY2015 forecast: revenue variance
2015S EMP AR (FELINE) Pm B#vIx>bs] EPSON (483) 14,000 12,000 10,000 — 8,000 - 6,000 4,000 2,000 oO: 10,863 11,300 mma MAF wt +136 -300 zzz 7,000 7] 6,000 +25 | 5.000 Lh lia MEF wt 4,000 3,000 +28 -110 4,000 +111 mate (48F3) 5,400 : | MEF -150 | ___0_ eee: = (34) (10) (40). Fate goeee (20) (_-9 J (30
Slide 10: FY2015 forecast: operating income variance
201SFERMPR (BF) > BAvIx>bs] EPSON 3 u GO) _feama-mmm] (229) C213) (200) Ga) FY2014-FY2015-FY2015_— | PUMA -43 1H = 1H_——s2H_—s 2H 3 xa mare sure [MEFM +0 HOF RM MOF OFM
Slide 11: Business initiatives
SOREL EPSON @ FRO YE (xtRTEIP AR) ¥ SE1S@H8 FPA Stil CE ICR RR SIR eH ¥ PRASEURZMCSRILEIC, PRILISUAZAIERAIRS TE + DP HBR AMR SSE WEBB OIE + TRAST CBU SRR CANTO AGES RIC => FPGAS A EN GRIS A -TS> MIS + PHRORAMR. PRHAKOMAT BSSURALEO JENBE, HAHEAO RIBLI ABBA = THA. BURR ORY + MAS Me7OE-—Yav sak PAROS H
Slide 12: Business initiatives
SRO RIEL @ FHOMLA (Betz SATE AR) BAIWAOZAL BA OMO HG + PRKCHISEH PS + MBSR <FOIIWLaS NIU F4 I> + PRIAKRCO ry + KHDUL9— : BARES AYU AROS «= (ChAT RBRAIRA CHO Bim, ASSE me <TUY4-> + DP EKER CR iter + DP : RENEE RLCAA OAM EA FE it4T MBI + BI : Ete BES LORRTE HX 11
Slide 13: Business initiatives
SOREL EPSON @ FHOR Yh (Beles XIAP AA) BAUR OZNE BROMO <70y1949—> + RAMRCLOHBGK = + WLS PyTIchSTHBIV “BAP (AA) C>ADIX + RAD OHS Maas FE RAORCLO LD =— + Ory h SAREE f= #7099 (FIA BHAI AYF) EYAL 19{8F4 © ANV—-YAYOMIteR), BRAROERIEM + RHA O AMAR MCDA SRO A THEE 12
Slide 14: Inkjet printer market trends
LIPHREZ OIE (ABBY 79D IEF LOUK) EPSON | BACBISCIRAET AIBC FTL Ct | Y KEB1 IID IEF VOPR TEER SOF CHES (XTRTRB20% A ERR HAST BIOL CHB ME RIAD) 600 (56) 400 . if . mm Hf FY2010 Y ACK CARTERS wmnz)-t 13
Slide 15: Inkjet printer market share
LIPHREROE (LIPCLBPOTIBIA Feit -KE) EPSON <KBAIABUIVUY 5-H FI/OY—-BMYIP> (22-2) 100% | © APABITUD9—HiBIS Eas IAM) a (20084F'520144FE TIC ad 10% 55 Ak) Ye E/JOLBPIS Aa) Va APA TIPB DNA) ln © IDYYOAPZIILIPE DIVUX IDYYAPAPUIDP 10% |) HEAT AMIP . » o.oo 8 8 8 Cy2008 2009 2010 2011 2012 2013 2014 15% : IO
Slide 16: Inkjet printer market share
IJPHAROEM (IIPCLBPOTIniKin sE) a 15 <IUY 9-H FOIOLV—-WYIF> — exm-2) <4 ERUP> <4YK> @ TTYL ORKE BAY IID IEF IWS @ IDV OKABE IID VET MWS PRICIPHBCSVSL LV MLA BRALA @ 2014 €/70LBPISia) 00% =e =: 100% + > ls 90% | =—_ = 90% | 80% —i— 80% + 60% ff 8 60% | oi DPI 9N— My SEFN ae | 40% 40% - 3 30% | 20% —__
Slide 17: Inkjet printer ink sales
SE1S#258 Sr PRA S st BOs 4D OF ESHER TO CER AITHERS <UPACRES EX (448 Et) C4958 LURES > ase eKBMIYIIVIEF wR ATR ee = WERL (GMM, SMR LSM —L—KCHE) er 8,000 i ee 6,000 4,000 2,000 0 1,000 FY2010 14 a & 16
Slide 18: 17
17
Slide 19: 2015 Q2 results
1) 201548 S20+HRa 18
Slide 20: Revenue by quarter
POFRATS LUSTER & BEI XD Gl 19 2,665, 3,019. \2,715) 2,609 pon El mera +155 et SW em 2014/2Q 2014/3Q 2014/4Q 2015/1Q 2015/2Q 19
Slide 21: Printing solutions revenue
POE RASS_LUNSS Lat BUYS 4D IVVUa—Lay Xv x> EPSON 500 20 2014/2Q meet -10 CXHDYYS—: SFR THOM LM mcm «860 +5| | ©POSTU>S—-S2i8 erp: MBM +91 KEM I9S IEF ES = {IR LBA FMB Re *14/2Q°15/2Q UP 77% 80% — ~~ SIDM 11% 11% Page,SCN 12% 9% = DP LIX hI 2015/2Q th ‘ ‘SIDM : Serial impact dot matrix printers: Page
Slide 22: Printing solutions revenue
Vv POE RASS EINZS HERR PULP STIL: ERIDVIYeI xy EPSON 453 2014/2Q | 474 | _S xa: ROU ergle ecu) N-VP) RRR EROVSH mer = +1! \ ewig, Faust —e Dry kY-BET *14/2Q'15/2Q KM 52% 51% | © COA: MBE 37% 32% RAVEN LBRO TOR 11% 17% 7 (eee © — AME OMBH17IUCLS WDE, MBIA THN [Perera «ops : MEM +23 HARES 2015/2Q IX N
Slide 23: Operating margin by quarter
POF HR ARTG ER RU — As Ee ETS em) 658) i (773) (806 (70 oy 29.7% Pe (7m Lunaatt) 28.0% 27.9% 26.7% 26.5% > 0 4 | oon 2014/1Q 2014/2Q 2014/3Q 2014/4Q 2015/1Q 2015/2Q 22
Slide 24: Operating income by quarter
POF AA BFE » BSI XD bl (4873) 500 400 100 | 273 | 345 _ 158 363 TRON (112) (107 ([-81) (410 (102)—|2ttmA-mam Ase RMtE +9 2014/2Q 2014/3Q 2014/4Q 2015/1Q 2015/2Q 23
Slide 25: Foreign exchange impact
BRAM LAD A EPSON ({8F3) BERGER EFM | Sars USD +2187 A4(8F EUR +88] +8{8F 0 2014/2Q 2015/2Q © BURAMEI XP RUS CIA BUC RM TOMAS SS PR OMMMETY 24
Slide 26: Balance sheet and cash flow
PAAR TRS SIR BES EPSON WEA (KAZ) 10,000 5,000 7,785 10,062 0 (8) -2013/3% 2014/3% 2014/9% 2015/3% 2015/9% rs a) IFRS IFRS IFRS IFRS PE 2,000 v0 264 A 2,208 0 (ery) 2013/3 2014/3% 2014/9% 2015/38 2015/9% axme IFRS IFRS IFRS IFRS 25
Slide 27: Financial position and equity ratio
PAAR TRS SIR BES EPSON ARTA AATF ABRKFE 34.9% ii 24.3% 21.9% 2,000 pa 2013/3 ct 2014/9 2015/3 2015/9 Base IFRS IFRS IFRS MATLOMBA CHES SSD - MALS Bes DIS (aCa*- BCAA) 6,000 — 39.9% 45.9% 49.1% 50.7% oo oo a & 2,000 3,623 4,427 4,943 2,567 t , ee (48F9) = 2013/3 2014/34 2014/94 2015/3% 2015/99 Bae IF
Slide 28: 2) 2015 forecast
2) 201548 #M@y48 27
Slide 29: 2015 forecast: operating income variance
2015 BMPR (FEL) > BHCIXDKGI (@F3) 10,863 11,300 mma MAF wt +136 -300 14,000 12,000 z= 7] 6,000 10,000 — 8,000 - 6,000 Lh lia +28 MAFWtt -110 f j mate +111 7,000 5,000 4,000 3,000 (48F3) 5,400 a: . i | mePwtt -150 Os 4a ea. ‘J 4 (34) (10) (40). Fate goeee {20} (_-9 }(_30 } (19 } FY2014 FY2015 FY2015
Slide 30: Forecast by segment
({48F9) §,000 — BERLIN PAB PIU TDI VVa—-yay Av x EPSON 7,308 7,570 FY2014 FY2015 FY2015 Rh MEFS Sare HHA = } 29
Slide 31: Forecast by segment
BF LIN PAB PIVY I-A EPSON AHA Feb) (am) 5,111 5,300 [REG 305 2.460 BEER) 2.840 BES 4,000 Le: 2,000 . . ses =a: 7s 2,000 — 7 5) 1,000 - ig ez... ee ee. 0 0 . L FY2014 ~FY2015 FY2015 1H 1H 2H 2H 30 RM — DFA SDF tos; serial impact dot matrix printers MIPS MM MEFS SPS 30
Slide 32: Forecast by segment
BERLIN PAB POLST) -ES7099yvI xb EPSON MHA Zeus HA Fe LUNE } [oe int (@F3) 1,734 1,800 BRmeae (Fa) 920 880 1,000 — — 2,000 =— = 1,500 750 - 1,078} [050 520 1,000 500 anna: +3 mare +0 500 250 - mat: +59 MOF -20 0 0 +37. _-30- L=+320 pers FY2014 FY2015 _FY2015 1M HH 2H 1 RA MOR Sore EFS RR MATS OTe
Slide 33: Forecast by segment
(XCEEO YOUR WEHON (Fa) 1,200 800 SRILA PAR WV AIOF/ (4 AhB A Fi 1,078 FY2014 Fy2015 FY2015 OFA Sere 1H mare 1H 2H 2H 2A MTS SF 32
Slide 34: FY2015 forecast operating income
201SFERMPR (BF) > BAvIx>bs] EPSON 3 u GO) _feama-mmm] (229) C213) (200) Ga) FY2014-FY2015-FY2015_— | PUMA ~43 1H = 1H_——s2H_—s 2H 3 xm more sapm [MEF +0 HOF8 RM MOF! saya
Slide 35: Capital expenditure and R&D
SNe S A - AMMAN ES BL EPSON ORM OMGRDM (3) 700 454 470 500 - 389-376 431393 37g 407 et 444 0 FY2011 FY2012 FY2013 FY2014 FY2015 Bm Bama IFRS IFRS IFRS Riel RA RA AN $8 FY2014 34" FY2015 48 Regn xeowN BABA MGR WyF4yIVI1-ay% 221 230 390 250 ty1PNIz1=7-s3ay 68 72 100 80 OLPSTN- RRI099Y 83 80 90 90 tOm-
Slide 36: Free cash flow
DU -Fryy1-F0— Fil (83) BRAMCLStr751-70— MM AMICLS4+r7>1-70- IY F¥9FI-7O- 1,000 - 0 } 1,000 FY2011 FY2012 BABE BaAmS RA RA 35 1,148 FY2013 IFRS Ri 1,088 35
Slide 37: ROA and ROE
ERS ROHS EPSON (%) .0 30. 27.7; 26.3 20.0 10.0 —>ROA: (BARS) HMMS / RAR OR) “10.0 - , (IFRS) EGER es / RAT IN) pos. (S45*) BRE etm “TFRS) —-PRLLARRSWMRR : WMRER / ME LURE -20.0 (Be) See eR CE) “O ROE: (reps) geet aL ANH URING PALOMA CMMTOMMRAS /MEROFBEAMS SID OF) -30.0 FY201 FY2012 FY2013 FY2014 FY2
Slide 38: EPSON Exceed Your Vision
EPSON EXCEED YOUR VISION 37