Seiko Epson : Explanatory Presentation (with notes)

Summary

• Q4 Results

  • Both revenue and business profit increased YoY.

    • Grew revenue in printing solutions and manufacturing-related & wearables

    • Profit grew on higher revenue. In addition, there was a negative impacted from reduced inventory in the same period last year.

  • Revenue was generally in line with the internal plan, but business profit exceeded the plan owing to higher-than-expected selling prices, particularly in office & home printing, as well as the impact of inventory in visual communications.

• FY2025 full-year financial outlook

  • We have factored in the impact from additional U.S. tariff rates but will mitigate the negative impact by responding rapidly and flexibly.

  • Both revenue and business profit are expected to decrease due to the negative impact of exchange rates.

  • We anticipate paying an annual dividend per share of 74 yen for FY2025, continuing with our basic policy to provide stable dividends despite uncertainty regarding factors such as

the impact of U.S. tariffs.

© Seiko Epson Corporation 2025

• This is a summary of the key points in today's presentation.

• Fourth quarter revenue and business profit increased year on year.

• Revenue was generally in line with the internal plan, but business profit exceeded the plan owing to higher-than-expected selling prices, particularly in office & home printing, as well as the impact of inventory in visual communications.

• U.S. tariff effects have been factored into the FY2025 full-year financial outlook, but we will mitigate the negative impact by responding rapidly and flexibly.

• We also took into account the negative impact of exchange rates, and both revenue and business profit are expected to decrease compared to the last year.

• We expect to continue to pay steady dividends in line with our basic policy and plan to pay an annual dividend of 74 yen per share for FY2025.

  • Fourth-Quarter Financial Results

  • FY2024 Full-Year Financial Result

  • Epson 25 Renewed Progress

  • FY2025 Full-Year Financial Outlook and Shareholder Returns

  © Seiko Epson Corporation 2025

© Seiko Epson Corporation 2025 2

Financial Highlights (Fourth Quarter)

*1 Basic earnings per share for the period

*2 The exchange effect on currencies other than the USD and EUR is compared by converting the amounts to JPY using current and previous period exchange rates. The current period is shown as an index versus 100 for the previous period.

© Seiko Epson Corporation 2025

• These are our fourth-quarter results.

• Revenue was ¥339.1 billion, up by ¥17.2 billion year on year, on growth in printing solutions and manufacturing-related & wearables.

• Business profit was ¥15.6 billion, up by ¥5.2 billion on higher revenue.

• Profit from operating activities was ¥12.2 billion. It was impacted by foreign exchange losses due to the appreciation of the yen across the fourth quarter, as well as an impairment loss of ¥0.7 billion in manufacturing solutions resulting from worsening profitability due primarily to a slow market recovery in key sales regions.

• Profit before tax was ¥11.1 billion. Profit for the period was

  ¥7.7 billion.

• Revenue was generally in line with the internal plan that served as the basis for the previous forecast.

• However, business profit exceeded the plan owing to higher than expected unit sales and selling prices, particularly in office & home printing, as well as the impact of inventory in visual communications.

• I will explain the disparities between the plan and our results in each business on the coming slides.

  FY2024 Q4 Results | Printing Solutions (1)

  (Billion JPY)

  *1 I/C printers, high-capacity ink tank printers, ink, etc. *2 LIJ, RIPS, I/C printers, ink, etc. *3 Scanners, SIDMs, LPs, dry-process office papermaking systems

  （Milion Units）

  6.0

  Offce & Home IJP Hardware Sales

  Office Shared IJP I/C Model

  High-Capacity Ink Tank Printer (Japan, N.America & W.Europe) High-Capacity Ink Tank Printer (Other regions)

  Office & Home IJP Ink Revenue (YoY ratio)

  Office Shared IJP (Hardware & Ink) Revenue

  +15%

  (Billion JPY)

  30.0

  YoY(JPY)

  YoY(LC)

  +10%

  4.0

  +5%

  20.0

  +0%

  2.0

  -5%

  10.0

  -10%

  0.0

  -15%

  0.0

  © Seiko Epson Corporation 2025

  4

  • Office & Home Printing

  • Revenue grew as IJP hardware sales for high-capacity ink tank and office shared printers increased while unit prices remained flat.

  • Although ink cartridge sales decreased, IJP ink revenue increased overall on growth in sales of high-capacity ink bottles and office shared IJP ink.

• The financial results in printing solutions are shown here.

• Revenue was ¥248.3 billion, up ¥18.0 billion year on year. Segment profit was ¥28.1 billion, up ¥6.3 billion.

• Revenue in office & home printing was ¥167.5 billion. Business profit was ¥15.4 billion.

• Revenue for inkjet printer hardware increased as unit sales grew for high-capacity ink tank printers and office shared printers while unit prices remained flat.

• Inkjet printer ink revenue increased on expanded sales of high-capacity ink bottles and office shared IJP ink, which more than made up for weakness in ink cartridge sales resulting from a change in the number of printers in the field.

• Business profit increased on higher revenue and the absence of a negative impact on profit from inventory reductions as was experienced in the same period last year.

• Both revenue and business profit exceeded the internal plan mainly because unit sales of hardware and ink exceeded expectations and we were able to keep selling prices from deteriorating.

  Commercial & Industrial Printing	Q4/FY2023 Actual	Q4/FY2024 Actual
  Revenue	68.1	80.7
  Commercial & Industrial IJP 47.9		60.0
  Small printers, Other 20.2		20.7
  Business profit ROS	10.7 15.8%	12.6 15.7%

  YoY Exchange effect	YoY ratio
  +12.5 +0.5	+18.5%
  +12.1	+25.4%
  +0.4	+2.1%
  +1.9 -0.1	+17.8%

  FY2024 Q4 Results | Printing Solutions (2)

  (Billion JPY)

  (Billion JPY)

  50.0

  C&I IJP : Finished Products Business Revenue

  Existing Areas (Photo)

  Growth Areas (Corporate, Signage, Textile, Label)

  C&I IJP : Printhead Sales Business Revenue

  (Billion JPY)

  30.0

  Small Printers, Other Revenue

  20.0

  25.0

  10.0

  0.0

  0.0

  © Seiko Epson Corporation 2025

  5

  • Commercial & Industrial Printing

  • Sales of commercial & industrial IJP finished products were flat year on year due to constrained customer investment.

  • Printhead sales grew on robust demand from Chinese printer manufacturers.

  • Includes the financial results of Fiery in commercial & industrial IJP, acquired in Dec. 2024

  • Demand remained steady in the small printers and other category.

• Commercial & industrial printing revenue was ¥80.7 billion. Business profit was ¥12.6 billion.

• The commercial & industrial inkjet printer finished products business saw performance vary across different product categories and regions. Overall, however, customers continue to refrain from investing and were flat compared to the same period last year.

• Printhead sales continued to grow on robust demand from Chinese printer manufacturers.

• Fiery's results for the four months following the acquisition in December are included in the fourth quarter results.

• Sales of small printers and other products remained stable because, although sales were weak in North America, they expanded in Europe and Asia.

• Both revenue and business profit fell short of the internal plan. This was due to soft demand for commercial & industrial inkjet printer finished products, as well as to the higher amortization expenses resulting from the valuation of Fiery's intangible assets.

  Visual Communications	Q4/FY2023 Actual	Q4/FY2024 Actual	YoY	Exchange effect	YoY ratio
  Revenue Segment profit ROS	48.1 7.1 14.8%	44.7 4.9 11.1%	-3.4 -2.1	+0.1 -0.4	-7.2% -30.3%
  （YoY ratio) Revenue(JPY) Revenue(LC) Q'ty * The indicators in sales trends are based on values tracked internally by Epson					(Billion JPY)
  Manufacturing-related & Wearables	Q4/FY2023 Actual	Q4/FY2024 Actual	YoY	Exchange effect	YoY ratio
  Revenue	43.3	47.2	+3.9	+0.6	+9.2%
  Manufacturing Solutions* 6.9		5.4	-1.5		-21.8%
  Wearable Products 7.6		9.2	+1.6		+21.1%
  Microdevices, Other 24.2		26.7	+2.4		+10.1%
  PC 5.3		6.9	+1.6		+30.0%
  Inter-segment revenue -0.8		-1.0	-0.1		-
  Segment profit ROS	-1.8 -4.2%	-0.3 -0.7%	+1.5	-0.1	-

  • Projector sales trends*

  FY2024 Q4 Results | Visual Communications

  Manufacturing-related & Wearables

  (Billion JPY)

  * We began recording micro injection molding machine business, etc., financial results in "corporate expenses, others" from FY24Q3. (The impact is minor.)

  © Seiko Epson Corporation 2025

  6

  • Manufacturing-Related & Wearables

  • Manufacturing solutions controlled spending amid ongoing investment curbs in China, Europe and the Americas.

  • Wearable products saw continued firm demand from visitors to Japan.

  • Microdevices, other showed signs of a recovery in demand.

  • PC demand increased as OS support nears its end.

• Visual communications revenue was ¥44.7 billion, a decrease of ¥3.4 billion.

• Sales of high-lumen projectors increased, but global markets remained soft, and sales of projectors for office and education use declined.

• Segment profit was ¥4.9 billion, down ¥2.1 billion on lower revenue.

• Revenue exceeded the plan. Segment profit also exceeded the plan due to the revenue increase and to the positive impact on profit of a larger than anticipated increase in inventories.

• Manufacturing related and wearables revenue was ¥47.2 billion, an increase of ¥3.9 billion. Segment profit was a loss of ¥0.3 billion.

• In manufacturing solutions, manufacturers in China, Europe, and North America continued to show reluctance to invest in automation.

• Wearable products revenue remained strong thanks to a recovery in demand from visitors to Japan.

• In microdevices and other products, market inventory adjustments appear to be winding down, and we have recently begun seeing a recovery in demand.

• A rise in PC demand was seen ahead of the end of operating system support.

• The loss recorded for segment profit shrank owing to these factors.

• Revenue and segment profit both fell short of the internal plan.

  FY2022				FY2023				FY2024
  371.5 (27.9%)				391.9 (29.8%)				403.4 (29.6%)
  82.9	88.5	97.3	102.5	92.1	97.0	101.5	101.2	96.4	98.2	99.6	109.0

  Unit sales changes + Office & home IJP hardware and ink, printheads, small printers, microdevices, etc. - Projectors, etc.

  Price changes + Projectors, etc. - Office & home IJPs, microdevices, etc.

  Parts & transport cost changes Little change from the same period last year

  Other changes + Positive impact compared to the same period last year, when profit was negatively impacted by reduced inventories. - Labor & other costs increased as unit sales increased

  Selling, General & Administrative Expenses

  Business Profit Change Cause Analysis

  Selling, General & Administrative Expenses

  Business Profit Changes

  (Billion JPY)

  +9.5

  +0.0

  -0.9

  -0.3

  15.6

  10.3

  -3.0

  (Billion JPY)

  120.0 SG&A Expenses to Sales Revenue Ratio

  32.2%

  30.5%

  29.3%

  30.0% 28.7%

  31.4% 28.7%

  29.1% 28.5%

  27.9% 26.4%

  FY23/Q4

  Unit sales Price changes Parts costs, Other changes * Impact of FY24/Q4

  27.0%

  100.0

  taransportation exchange rates

  costs * Includes the effects of inventory changes

  39.1

  36.3

  36.1 36.7

  80.0

  33.5

  33.9

  34.5 35.2 37.8

  32.5

  30.7

  28.3

  6.9

  60.0

  8.0 9.7

  6.9 8.4 6.9 4.8 6.5 5.1

  8.8

  4.2

  4.9

  4.5 7.5 9.5 9.8 7.1

  8.0 9.1

  9.3 7.6 8.0 8.9

  5.7

  40.0 10.9

  12.2

  11.3 11.1 10.9 10.9 11.6 10.9 10.6 10.7 10.0 9.7

  20.0

  33.3 34.7 35.1 35.6 36.5 36.3 36.9 37.5 38.6 38.2 38.0

  41.9

  0.0

  © Seiko Epson Corporation 2025

  7

  +4.4

  Labor Cost

+1.5

-0.5

+0.0

+2.4

+7.8

• The graph on the left shows the trend in selling, general and administrative expenses.

• Labor costs and depreciation costs, which are included in the Other category, increased mostly due to the acquisition of Fiery.

• Let's look at the graph on the right and the change factors that affected business profit.

• Unit sales in many businesses and products increased.

• Price changes and parts and transportation costs did not change significantly from the same period last year.

• Other changes were flat. In this period there are no negative effects from reduced inventories we saw in the same period last year. On the other hand, there was an increase in labor costs and other fixed costs as unit sales increased.

  1,266.4 1,341.5 1,413.0			1,456.4

  Interest-bearing liabilities Ratio
  19.2% 17.4%
  243.1 233.2	14.5%				15.4% 224.7
  		204.7

  92.0

  34.0

  123.6

  42.2

  308.3

  389.4

  358.1

  369.7

  57.4% 52.6% 54.2%				55.3%
  665.6 727.3		810.9			804.7

  Statements of Financial Position

  Total assets

  (Billion JPY)

  1,500.0

  Interest-bearing liabilities/ Ratio of interest-bearing liabilities

  (Billion JPY)

  500.0

  400.0

  1,000.0

  300.0

  200.0

  500.0

  100.0

  0.0

  0.0

  End of Mar 2022

  End of Mar 2023

  End of Mar 2024

  End of Mar 2025

  End of Mar 2022

  End of Mar 2023

  End of Mar 2024

  End of Mar 2025

  Net Cash

  (Billion JPY)

  Inventories / Turnover by days*

  Inventories

  (Billion JPY)

  600.0

  Equity/ Equity ratio attributable to owners of the parent company

  (Billion JPY)

  1,000.0

  Equity

  Ratio

  107days

  100days

  100days

  99days

  800.0

  400.0

  1.4

  60.6

  2.0 56.8

  84.8

  74.2

  1.2

  57.3

  76.5

  600.0

  2.4 53.1

  200.0

  67.4

  400.0

  242.5

  185.3

  225.0

  234.6

  200.0

  0.0

  0.0

  End of Mar 2022

  End of Mar 2023

  End of Mar 2024

  End of Mar 2025

  End of Mar 2022

  End of Mar 2023

  End of Mar 2024

  End of Mar 2025

  * Turnover by days : Ending balance of inventory / Prior 12 months revenue per day

  © Seiko Epson Corporation 2025 8

  
  
  

• The major items on the statements of financial position were as shown here.

• Total assets at the end of the fiscal year increased to

  ¥1,456.4 billion. This was largely due to the acquisition of Fiery.

• Inventories were about the same as at the end of the previous fiscal year.

• The equity ratio attributable to owners of the parent company was a healthy 55.3%.

  • Fourth-Quarter Financial Results

  • FY2024 Full-Year Financial Result

  • Epson 25 Renewed Progress

  • FY2025 Full-Year Financial Outlook and Shareholder Returns

  © Seiko Epson Corporation 2025

© Seiko Epson Corporation 2025 9

FY2024 Financial Highlights (Full Year)

*1 Basic earnings per share for the year

*2 The exchange effect on currencies other than the USD and EUR is compared by converting the amounts to JPY using current and previous period exchange rates.

The current period is shown as an index versus 100 for the previous period.

© Seiko Epson Corporation 2025

• Next, I will explain our fiscal 2024 full-year financial results.

• We posted ¥1,362.9 billion in revenue, ¥89.5 billion in business profit, and ¥55.1 billion in profit for the period.

• Exchange rate volatility from last fiscal year had a ¥41.1 billion positive effect on revenue and a ¥3.5 billion positive effect on business profit due to yen depreciation.

  Cause Analysis of Changes in Business Profit (vs. the Previous Outlook of Jan. 31)

  • Business profit was ¥89.5 billion, exceeding the previous outlook.

    • Unit sales in office & home printing as well as projectors exceeded expectations.

    • Selling prices were higher than anticipated in office & home printing.

    • Parts costs and transportation costs, as well as other changes, was basically in line with the plan.

    • Positive impact in exchange rates from yen depreciation

  Previous (Jan. 31) Outlook

  (Billion JPY)

  64.7

  +11.0

  +19.0

  +2.0

  +85.0

  +7.0

  -19.0

  Actual

  +3.5

  89.5

  64.7

  +14.0

  +9.0

  +16.0

  -18.0

  FY23 Actual

  Unit sales *1

  Price changes

  Parts & transportation costs

  Other changes *2

  Exchange rate impact

  FY24 Outlook/Actual

  *1 Fiery's share of the business profit equivalent is entirely accounted for as a change in unit sales in the current outlook.

  *2 Includes the effects of inventory changes & accounting adjustments in the PC business

  © Seiko Epson Corporation 2025

  11
  
  
  

• Now, let me explain the factors that caused business profit to exceed the previous outlook.

• Unit sales in office & home printing as well as projectors exceeded expectations.

• Prices in office & home printing also exceeded expectations.

• Although there were changes in parts and transportation costs, as well as in other costs, the overall total was generally in line with the plan.

• Exchange rates positively impacted profit owing to the weak yen.

  Printing Solutions		FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual	YoY	Exchange effect	YoY Ratio	vs.1/31 Outlook
  Revenue		918.6	977.0	980.1	+61.4	+28.0	+6.7%	+3.1
  Segment profit		96.1	122.0	124.8	+28.7	+1.5	+29.9%	+2.8
  ROS		10.5%	12.5%	12.7%
  Office & Home Printing		FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual	YoY	Exchange effect	YoY Ratio	vs.1/31 Outlook
  Revenue		650.8	674.0	680.4	+29.6	+17.7	+4.6%	+6.4
  	Office & Home IJP (SOHO/ Home IJP)*1	508.4	523.0	530.6	+22.1		+4.4%	+7.6
  	Office & Home IJP (Office Shared IJP)*2	71.8	86.0	83.1	+11.2		+15.7%	-2.8
  	Other*3	70.5	65.0	66.7	-3.8		-5.4%	+1.7
  Business profit		53.6	60.0	63.9	+10.2	-3.1	+19.1%	+3.9
  ROS		8.2%	8.9%	9.4%

  SOHO/Home High-capacity ink tank printers	12.00 13.10 13.10
  SOHO/ Home I/C model	3.25	3.10	3.15
  Office Shared IJP	0.30	0.35	0.35
  Ink revenue JPY	+6%	+1%	+3%
  YoY ratio Local currency	-0%		+0%

  Commercial & Industrial Printing	FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual	YoY	Exchange effect	YoY Ratio	vs.1/31 Outlook
  Revenue	267.9	303.0	299.7	+31.8	+10.3	+11.9%	-3.2
  Commercial & Industrial IJP	193.0	224.0	220.1	+27.1		+14.0%	-3.8
  	Small Printers, Other	74.8	79.0	79.5	+4.7	+6.3%	+0.5
  Business profit	42.4	62.0	60.9	+18.4	+4.6	+43.6%	-1.0
  ROS	15.8%	20.5%	20.3%

  FY2024 Financial Results | Printing Solutions

  (Billion JPY）

  • Office & Home Printing

    • Sales of high-capacity ink tank printers grew from the previous year in emerging markets and Western Europe.

    • Office shared IJPs are increasingly displacing laser printers, and both hardware and ink sales grew.

  • Office & Home IJP sales trends*4

  YoY -9%

  Hardware q'ty

  Approx., million 15.55

  +6%

  16.55

  +7%

  16.60

  *1 I/C printers, high-capacity ink tank printers, ink, etc. *2 LIJ, RIPS, I/C printers, ink, etc. *3 Scanners, SIDMs, LPs, dry-process office papermaking systems

  *4: The indicators in sales trends are based on values tracked internally by Epson

  © Seiko Epson Corporation 2025

  12

  FY24

  Actual

• Here you see the full-year financial results by segment.

  Visual Communications	FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual	YoY	Exchange effect	YoY Ratio	vs.1/31 Outlook
  Revenue	217.4	202.0	203.7	-13.6	+8.1	-6.3%	+1.7
  Segment profit	31.5	25.0	29.0	-2.5	+1.9	-8.1%	+4.0
  ROS	14.5%	12.4%	14.2%
  						(Billion JPY）
  (YoY ratio)	FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual
  Hardware q'ty Aprrox, million	1.80	1.55	1.55
  YoY	-5%	-13%	-13%
  * The indicators in sales trends are based on values tracked internally by Epson
  Manufacturing-related & Wearables	FY2023 Actual	FY2024 1/31 Outlook	FY2024 Actual	YoY	Exchange effect	YoY Ratio	vs.1/31 Outlook
  Revenue	179.9	182.0	181.4	+1.5	+5.2	+0.9%	-0.5
  	Manufacturing solutions*	24.7	23.0	22.0	-2.6	-10.8%	-0.9
  	Wearable Products	34.7	37.0	39.3	+4.5	+13.2%	+2.3
  	Microdevices, Other	104.3	105.0	103.7	-0.6	-0.6%	-1.2
  	PC	19.6	21.0	20.7	+1.0	+5.5%	-0.2
  	Inter-segment revenue	-3.5	-4.0	-4.4	-0.8	-	-0.4
  Segment profit	-1.5	-2.0	-3.2	-1.6	+0.2	-	-1.2
  ROS	-0.9%	-1.1%	-1.8%

  • Projector Sales Trends*

  FY2024 Financial Results |

  Visual Communications Manufacturing-related & Wearables

  (Billion JPY）

  * We began recording micro injection molding machine business, etc., financial results in "corporate expenses, others" from FY24Q3. (The impact is minor.)

  © Seiko Epson Corporation 2025

  13

  • Manufacturing-related & Wearables

    • Manufacturing solutions: Impacted by curbed investment in China, Europe, and the Americas.

    • Wearable products: Sales grew on a recovery in demand from visitors to Japan.

    • Microdevices: A market recovery was seen in crystal devices, but adjustments in semiconductors continue.

    • PC: Sales grew, but results were negatively affected by accounting adjustments in Q3.

© Seiko Epson Corporation 2025 14

FY2024 Review (Vs. Initial Outlook)

• Exceeded the initial outlook targets* of ¥80.0 billion in business profit and an ROS of 6.0% for FY2024

• Contained fixed costs (in other changes) in response to the shortfall in unit sales (microdevices & projectors) resulting from market softness. Exchange rates had a positive impact.

* Initial outlook for the first year working toward the new FY25 targets for Epson 25 Renewed (announced in April 2024).

Cause analysis of change in business profit

(Billion JPY)

+64.7

+29.0

+9.0

+2.0

+80.0

-23.0

-2.0

*1 Fiery's share of the business profit equivalent is entirely accounted for as a change in unit sales in the current outlook.

*2 Includes the effects of inventory changes & accounting adjustments in the PC business

© Seiko Epson Corporation 2025

• Let me explain our status toward Epson 25 Renewed targets.

• Commercial & industrial IJP and office shared IJP grew in FY2024.

• On the other hand, unit sales of microdevices and projectors declined due to market changes. Nevertheless, we were able to exceed the initial plan for business profit by controlling fixed costs.

  	Future steps announced Apr. 2024	FY2024 Review
  Office shared IJPs	IJP value messaging	strengthened IJP value messaging
  Commercial & industrial IJP	applications
  Manufacturing solutions
  Overall

  • Respond to demands for greater convenience and lower prices and continue to reduce costs

  • Revise regional & partner strategies and strengthen

  • Launched A4 linehead inkjet multifunction printers. Expanded & enhanced the lineup

  • Revised regional & partner strategies and

  • Expand and enhance the finished products lineup based on platforms

  • Respond to demand for lower priced consumables

  • Improve PORT usage rate and expand paid services by enhancing functionality & messaging

  • Strengthen printhead sales for existing and new

  • Expanded and enhanced the finished product lineup

  • Launched low priced consumables

  • Issues for PORT in understanding customer needs

  • Printhead sales captured growing demand for textiles

  • Acquired Fiery

  • Continue to enhance product competitiveness by improving cost performance while expanding and enhancing the product lineup

  • Strengthen the development and packaging of solutions that customers can easily deploy

  • Strengthen sales in Southeast Asia & India

  • Given the challenging business environment, drove profit structure and operational reforms

  • Revamped platforms and began developing new price competitive products

  • Take actions to reduce costs globally

  • Reduced fixed and other costs

  • Conducted restructuring of semiconductor related fab in Singapore

  • Reorganized sales companies in North America

  FY2024 Initiatives

  • The future steps announced in April 2024 are generally on track.

    • Fiery was acquired for future growth in commercial & industrial IJP.

    • Drive profit structure reform and operations innovations in manufacturing solutions.

  © Seiko Epson Corporation 2025

  16
  
  
  

• The future steps announced in April of last year are generally on track.

• In commercial & industrial IJP, we took steps toward further growth, including the acquisition of Fiery.

• In response to the challenging business environment in manufacturing solutions, we initiated a revamping of the profit structure and promoted operational reforms.

  • Fourth-Quarter Financial Results

  • FY2024 Full-Year Financial Result

  • Epson 25 Renewed Progress

  • FY2025 Full-Year Financial Outlook and Shareholder Returns

  © Seiko Epson Corporation 2025

© Seiko Epson Corporation 2025 17

Impact of U.S. Tariffs

• Effects of U.S. tariffs have been factored into the FY2025 financial outlook.

  • We expect to keep the negative impact on business profit to ¥8.0 billion.

    • We estimate a ¥17.0 billion increase in tariffs (10% Additional tariff basic rate, 20% for China*)

    • Outlook reflects higher prices in the U.S. and lower unit sales due to curbed demand.

* U.S. tariffs toward China are unclear, and has a small impact to Epson as we will take countermeasures

• We will closely monitor the situation and respond swiftly and flexibly to fulfill our supply responsibilities to customers.

  • Optimize sales & promotions in response to changes in demand.

  • Production transfer

    • Although less than 10% of our U.S. imports are produced in China, we are planning to transfer the

production of some products to other sites to minimize the impact.

© Seiko Epson Corporation 2025

• Next, I will explain the financial outlook for the 2025 fiscal year.

• We included the effects of U.S. tariffs in our outlook.

• We see tariffs increasing by ¥17 billion. However, after factoring in higher prices in the U.S. and a decline in unit sales due to curbed demand, we expect to limit the negative impact on business profit to ¥8 billion.

• Although less than 10% of our North American imports are produced in China, we are planning to transfer the production of some products to other sites to minimize the impact.

• We will continue to closely monitor the tariff situation and do everything we can to respond rapidly and flexibly to fulfill our supply responsibilities to customers.

  	FY2024		FY2025			Change
  (Billion JPY)	Actual	％		Outlook	％	YoY	%
  Revenue	1,362.9		1,320.0			-42.9	-3.2%
  Business profit	89.5	6.6%		75.0	5.7%	-14.5	-16.3%
  Profit from operating activities	75.1	5.5%		63.0	4.8%	-12.1	-16.1%
  Profit before tax	78.3	5.8%		59.0	4.5%	-19.3	-24.7%
  Profit for the year attributable to owners of the parent company	55.1	4.0%		41.0	3.1%	-14.1	-25.7%
  EPS*1(JPY)	168.75		127.99
  USD Exchange rate EUR (JPY, index)	¥152.47 ¥163.64		¥141.00 ¥155.00
  	Other currencies*２	-		90		*1
  Exchange sensitivity *3 (Billion JPY)	USD	EUR		Other currencies		Estimated exchange effect (Billion JPY)
  Revenue	-3.2	-1.5		-4.8		-97.0
  Business profit	+0.7	-0.9		-2.7		-25.0

  FY2025 Financial Outlook (Full Year)

  Basic earnings per share for the year

  *2 The exchange effect on currencies other than the USD and EUR is compared by converting the amounts to JPY using current and previous period exchange rates. The current period is shown as an index versus 100 for the previous period.

  *3 Annual impact of a 1-yen increase in the value of the yen versus the USD & EUR (in billions of yen)

  Annual impact of a 1% increase in the value of the yen versus other currencies (in billions of yen)

  © Seiko Epson Corporation 2025

  19

  • Revenue

  • Revenue to decline due to foreign exchange effects

  • Business profit

  • Profit to decline due to foreign exchange and U.S. tariff effects

  • Profit from operating activities

  • Increased restructuring expenses while foreign exchange loss decreased

  • Profit before tax

  • Increased foreign exchange loss and decreased interest income

• I would like to explain our 2025 full fiscal year financial outlook.

• The outlook assumes a substantial yen appreciation.

• In the 2025 fiscal year, we expect changes in exchange rates from last fiscal year to have a negative ¥97 billion impact on revenue and a ¥25 billion impact on business profit.

• Due to this, we have forecasted ¥1, 320 billion in revenue and ¥75 billion in business profit.

• Profit from operating activities is expected to come in at ¥63 billion due to foreign exchange loss resulting from yen appreciation and due to restructuring costs as we seek to increase profitability.

• Profit for the period is forecasted to be ¥41 billion.

  FY24 Actual	Unit sales *1	Price changes	Parts &	Other	Subtotal *2	U.S. tariff	Counter-	Exchange rate	FY25
  			transportation	changes		impact	measures	impact	Outlook
  			costs

  Cause Analysis of Changes in Business Profit (FY25 vs FY24)

  • Forecast ¥75 billion factoring in the impact of exchange rates and U.S tariffs.

    • Unit sales of commercial & industrial IJPs, office shared IJPs, and microdevices are expected to increase. Fiery will also contribute to profit growth.

    • We expect to keep prices for high-capacity ink tank printers at about the same level as last year. An improved projector model mix is expected to positively impact profit, while prices for microdevices are expected to decline.

    • Transportation costs will increase.

    • In other costs, we will implement cost control actions.

  Cause analysis of change in business profit

  (Billion JPY)

  +18.0

  +9.0

  108.0

  89.5

  +9.0

  -3.0

  -5.0

  -17.0

  75.0

  -25.0

  *1 Fiery's share of the business profit equivalent is entirely accounted for as a change in unit sales in the current outlook.

  *2 Includes the effects of inventory changes

  © Seiko Epson Corporation 2025

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• This shows a cause analysis of change in business profit.

• The global economy in the 2025 fiscal year is clouded by uncertainty, but the shift from analog to digital printing in the commercial & industrial printing industry will continue.

• Unit sales of commercial & industrial inkjet printers are expected to increase, and Fiery will also contribute to profit growth.

• We will act to maintain prices of high-capacity ink tank printers. These and other actions are expected to keep prices at about the same level as last year.

• Higher ocean freight costs are expected to cause transportation costs to increase.

• As for other costs, we will implement cost control actions.

• After estimating ¥108 billion after these factors, we took into account exchange rate and U.S. tariff impacts, resulting in a forecast of ¥75 billion.

  FY2025 Financial Outlook | Printing Solutions

  (Billion JPY）

  • Office & Home Printing

  • High-capacity ink tank printers: Unit sales are expected to slightly increase while prices should be flat YoY.

  • Office shared IJPs: Enhance the product lineup, strengthen our approach to end-users, and accelerate laser printer displacement.

  • Ink sales: Sales of high-capacity ink bottles & office shared printer ink will increase, but ink cartridge sales will decrease.

  • Office & Home IJP sales trends*4

  YoY

  +7%

  -0%

  *1: I/C printers, high-capacity ink tank printers, ink, etc. *2: LIJ, RIPS, I/C printers, ink, etc. *3: Scanners, SIDMs, LPs, dry-process office papermaking systems

  *4 The indicators in sales trends are based on values tracked internally by Epson

  +26.8 +12.2%

  -3.5

  -4.5%

  © Seiko Epson Corporation 2025

  21

  • Commercial & Industrial Printing

  • Finished products: Expand and enhance the lineup and grow sales.

  • Printhead sales: Expand sales in China, the largest market.

  • Fiery's results are reflected in the commercial & industrial IJP category.

  • Small printers: Sales are expected to be steady.

  +0.1%

• Next, let's look at the situation segment by segment.

• Printing solutions will be negatively impacted by exchange rate volatility, and we expect revenue to decline by ¥30.1 billion to ¥950 billion and segment profit to decline by ¥18.8 billion to ¥106 billion.

• Office & home printing revenue will decline due to foreign exchange effects.

• In SOHO and home inkjet printer hardware, we expect a slight increase in unit sales of high-capacity ink tank printers, with prices remaining at similar levels to last year due to the introduction of new products.

• In office shared inkjet printers, we will continue to expand the lineup and enhance solution proposals to end-users in order to accelerate the replacement of laser printers.

• As for ink sales, we expect sales of high-capacity ink bottles and ink for office shared printers to increase but sales of ink cartridges to decrease.

• Business profit is expected to decline mainly due to the decline in ink revenue.

• We expect revenue in commercial & industrial printing to increase on sales growth, but business profit is remaining flat year on year due to foreign exchange effects.

• The finished products business will increase sales by expanding and enhancing the lineup.

• Printhead sales will further expand sales in China, the largest market.

• Fiery's business is reflected in the commercial & industrial inkjet printer category.

• Sales of small printers are expected to be steady, supported by replacement demand.

  Visual Communications	FY2024 Actual	FY2025 Outlook
  Revenue	203.7	189.0
  Segment profit	29.0	19.0
  ROS	14.2%	10.1%

  	FY2024 Actual	FY2025 Outlook
  Hardware q'ty Aprrox, million	1.55	1.50
  YoY	-13%	-4%

  • Projector Sales Trends*

  Manufacturing-related & Wearables	FY2024 Actual	FY2025 Outlook
  Revenue	181.4	187.0
  	Manufacturing solutions* 22.0	23.0
  	Wearable Products 39.3	39.0
  	Microdevices, Other 103.7	106.0
  	PC 20.7	23.0
  	Inter-segment revenue -4.4	-4.0
  Segment profit	-3.2	11.0
  ROS	-1.8%	5.9%

  YoY	YoY Ratio
  +5.5	+3.1%
  +0.9	+4.1%
  -0.3	-0.9%
  +2.2	+2.2%
  +2.2	+11.0%
  +0.4	-
  +14.2	-

  FY2025 Financial Outlook |

  Visual Communications Manufacturing-related & Wearables

  (Billion JPY）

  * YoY ratio, The indicators in sales trends are based on values tracked internally by Epson

  (Billion JPY）

  * We began recording micro injection molding machine business, etc., financial results in "corporate expenses, others" from FY24Q3. (The impact is minor.)

  © Seiko Epson Corporation 2025

  22

  -7.3%

  -34.5%

• Visual communications revenue is expected to come in at

  ¥189 billion, a decrease of ¥14.7 billion, due to foreign exchange effects.

• Projector demand in the education market is expected to remain soft, but growth is forecast in home projectors and in the high-lumen category.

• We forecast ¥19 billion in segment profit, a decrease of ¥10 billion due to the negative impact of inventory reductions on profit as well as foreign exchange effects.

• In manufacturing related and wearables, we expect ¥187 billion in revenue, an increase of ¥5.5 billion. Segment profit is seen increasing by ¥14.2 billion to ¥11 billion.

• Manufacturing solutions customers are still being cautious about investing, but we aim to increase sales by introducing strategically priced products.

• Operational reforms, including the fixed cost reductions that we introduced last year, are expected to improve profitability.

• We do not foresee substantial change in wearable products market conditions, but we will continue taking action to improve profitability.

• The microdevices market is expected to gradually recover.

• We expect to see the benefits of last year's efforts to reduce fixed and other costs.

• Segment profit will rise due to a combination of higher revenue and lower costs.

  		FY2024	FY2025	YoY
  Printing Solutions	Revenue	980.1	1,023.0	+42.8
  	Business profit	124.8	129.0	+4.1
  	ROS	12.7%	12.6%
  Visual Communications	Revenue	203.7	205.0	+1.2
  	Business profit	29.0	25.0	-４.０
  	ROS	14.2%	12.2%
  Manufacturing-related & Wearables	Revenue	181.4	195.0	+13.5
  	Business profit	-3.2	１３.０	+16.２
  	ROS	-1.8%	6.7%
  Consolidated Total	Revenue	1,36２.９	1,417.0	＋54.0
  	Business profit	89.5	108.0	＋１８.４
  	ROS	6.6%	7.6%

  Financial Outlook（excluding U.S. Tariff and foreign exchange impacts)

  (Billion JPY)

  Exchange rate ： All figures use actual rates for FY2024 (USD ￥152.47, EUR ￥163.64)

  © Seiko Epson Corporation 2025

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• Here we show the financial outlook if we removed the impacts from foreign exchange rates and U.S. tariffs.

• We see growth in printing solutions, especially in commercial and industrial printing.

• Visual communications will continue to bring steady profits.

• Manufacturing-related & wearables will see a huge improvement in profitability.

  44.3 44.2 42.8 （44.0）			50.0

  production Capital expenditure to increase infrastructu Depreciation & amortization expenses									facilities, automating pro productivity, and improv re
  	78.3						75.8 72.0 （73.0） （70.0）			70.0 72.0
  		68.6		70.0	68.6

  Main management indices Exchange rate：USD/JPY	FY22 Actual 135.44	FY23 Actual 144.44	FY24 Actual 152.47	FY25 Outlook
  				141.00
  Exchange rate：EUR/JPY	140.90	156.66	163.64	155.00
  Revenue (Billion JPY)	1,330.3	1,313.9	1,362.9	1,320.0
  Bussiness profit (Billion JPY)	95.1	64.7	89.5	75.0
  Profit for the year attributable to owners of the parent company (Billion JPY)	75.0	52.6	55.1	41.0
  ROS *1	7.1	4.9	6.6	5.7%
  ROA *2	7.3	4.7	6.2	5.3%
  ROE *3	10.8	6.8	6.8	5.1%
  ROIC*4	7.1	4.6	6.1	5.2%

  FY2024 Financial Outlook |

  Major Costs, Free Cash Flows,

  Management Indices

  Research & development costs

  (Billion JPY)

  60.0

  ( ) Previous outlook

  Free cash flows

  (Billion JPY)

  200.0

  50.0

  100.0

  40.0

  30.0

  0.0

  20.0

  -100.0

  10.0

  Cash flows from operating activities Cash flows from investing activities Free cash flows

  （-150.0）

  Impact of Fiery acquisition

  0.0

  -200.0

  FY22 FY23 FY24 FY25 Outlook FY22 FY23 FY24 FY25 Outlook

  Capital expenditure/ Depreciation & amortization expenses

  (Billion JPY)

  100.0

  Spending to focus primarily on printhead

  cesses ing digital

  80.0

  60.0

  40.0

  20.0

  0.0

  FY22

  FY23

  FY24

  FY25 Outlook

  *1 ROS: Business profit / revenue *2 ROA: Business profit / Beginning and ending balance average total assets

  *3 ROE: Profit for the year attributable to owners of the parent company / Beginning and ending balance average equity attributable to owners of the parent company

  *4 ROIC: After tax business profit / (equity attributable to owners of the parent company + interest-bearing liabilities) After tax business profit: deducting an amount equivalent to the statutory effective tax rate from business profit

  Equity attributable to owners of the parent company and interest-bearing liabilities are average of beginning and ending balance

  © Seiko Epson Corporation 2025 24

  -0.2

  -61.6

  61.3

  -70.0

  50.0

  120.0

  -12.7

  （-25.0）

  -150.7

  138.0

  （125.0）

  -58.9

  165.5

  106.5

  
  
  

• We expect to have ¥50 billion in research and development costs. The increase includes effects from the acquisition of Fiery.

• We forecast ¥70 billion in capital expenditures, and ¥72 billion in depreciation and amortization expenses.

• We expect ¥50 billion in free cash flows, an increase from last year, when we acquired Fiery.

• The main management indices are as shown here.

  46%

  42%

  44%

  75%

  50%

  34%

  36%

  54%

  38%

  45%

  Consolidated dividend payout ratio＊

  Shareholder Returns

  • Dividends

    • Expect to pay an annual dividend of 74 yen per share for FY2025

      • Continue to provide stable dividends, with a consolidated dividend payout ratio* of about 40% over the mid-term

  • Share repurchase

    • Acquired and retired approx. ¥30 billion in treasury shares in FY2024

  （JPY）

  72

  74

  60

  62

  Interim: ¥37

  Year-end: ¥37

  Share repurchase

  ¥10B

  Share repurchase

  ¥10B

  Share repurchase

  ¥30B

  Share repurchase

  ¥30B

  FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

  （outlook） （outlook）

  * Calculated based on the amount obtained by deducting an amount equivalent to the statutory effective tax rate from business profit

  © Seiko Epson Corporation 2025

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  62

• Next, I will explain shareholder returns.

• We expect to pay an annual dividend of 74 yen per share in the 2025 fiscal year.

• We will continue to pay steady dividends in line with our basic policy.

• In the 2024 fiscal year, we acquired and retired approximately ¥30 billion in treasury shares.

• Going forward, we will continue to improve capital efficiency and actively return profits to shareholders.

  Cash Allocation

  • In FY2024, we generally invested in accordance with our growth strategy and also acquired Fiery.

  • We will continue to prioritize investments for future growth while proactively providing shareholder returns.

  FY2024 plan and FY2025 plan FY2024 actual and FY2025 plan

  (Forecast at the beginning of FY2024) (Forecast at the beginning of FY2025)

  Investment

  ¥160.0B

  Investment

  ¥220.0B

  Operating CF

  ¥250.0B

  (Fiery acquisition not included)

  Operating CF

  ¥258.0B

  (Fiery acquisition included)

  Investment

  Maintain competitiveness and increase productivity in mature areas

  Actively invest (including in M&As) in new and growth areas, environment-related areas, and

  digital infrastructure development

  Use cash reserves

  Shareholder returns

  ¥78.0B

  (Includes treasury shares)

  Strengthening financial position

  ¥49.0B

  Issuance of bonds payable

  ¥40.0B

  Shareholder returns

  ¥78.0B

  (¥30 billion repurchase)

  Shareholder returns

  • Dividends: Continue to provide stable dividends, with a consolidated dividend payout ratio* of about 40% over the mid-term.

  • Share repurchase: Repurchase as necessary, depending on the share price, the capital situation, and other factors.

  Strengthening financial position

  Repayment of interest-bearing liabilities, etc.

  Use cash reserves

  Strengthening financial position

  ¥20.0B

  * Calculated based on the amount obtained by deducting an amount equivalent to the statutory effective tax rate from business profit

  © Seiko Epson Corporation 2025

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• Let's take a look at cash allocation.

• In the 2024 fiscal year, we generally invested as planned in accordance with our growth strategy and, moreover, acquired Fiery.

• Going forward, we will continue to prioritize investments for future growth while proactively providing shareholder returns.

  Epson's Vision for Inkjet Innovation

  • In printing, our key business, we will leverage our core inkjet technology and printheads to pursue initiatives aimed at improving short-term business performance and driving mid to longterm growth.

    • Evolve solution offerings (Fiery synergies, organizational support) and expand the customer base (expand into new domains).

  Work flow

  Main-

  Cloud tenance

  Sub-scrip-tions

  Remote

  Short-term

  Home

  Software Solutions

  Invested in business

  to co-create Energy

  perovskite solar cells

  Creation of synergies with Fiery

  Office

  Mid- to Longterm

  Electronics

  Short-term

  Finished Product Solutions

  New Domain Expansion

  Commercial & Industrial Printing

  Accelerate the enhancement of customer value through organizational actions

  Printhead Technical Support

  Others

  Device Solutions

  Core Technology Platform

  © Seiko Epson Corporation 2025

  27
  
  
  

• Finally, I would like to present some of the initiatives being pursued to transform Epson.

• In printing, our key business, we will leverage our core inkjet technology and printheads to pursue initiatives aimed at improving short term performance and driving mid and long term growth.

• In the short term, we will look to create synergies with Fiery, whose strength lies in software, and propose solutions that solve customer's printing-related issues.

• We will also allocate more resources to the printhead sales business in order to further enhance customer value.

• In the commercial & industrial inkjet printer business, we will capture customer needs in a timely fashion and accelerate the enhancement of customer value through organizational actions.

• We are also expanding into new domains to achieve mid and long term growth.

• In April, we made an investment to promote the use of inkjet technology in the fabrication of perovskite solar cells.

• Moving forward, we will continue to maximize the use of our inkjet and other efficient, compact, and precise technologies to address societal issues and achieve sustainable growth for Epson.

© Seiko Epson Corporation 2025 28

Reference

© Seiko Epson Corporation 2025