Consolidated Results for the Full Year Ended March 31, 2010

Q&A summary

Click on the appropriate question to view the answer.

Overall

Information-related equipment

Electronic devices


Overall

  • Q1Can you explain the latest situation concerning the structural reforms in the electronic device businesses?
  • AThe situation is basically the same as we have described previously. In small- and medium-sized displays, we transferred to the Sony Group certain business assets in our amorphous silicon TFT display business on April 1, as agreed in the contract concluded on June 30 last year.
    In semiconductors, we reassigned resources and engineers to areas where they could create synergies with the quartz device and finished products businesses. To date, we have concentrated on energy-saving semiconductor products, but will now shrink this business. Production lines will be consolidated at one location as stated in our plans.
  • Q2Are you being cautious in your forecast for the first half of FY2010? Don't you think there is an imbalance between the first- and second-half forecasts? Can you also tell me the latest sales situation?
  • ATraditionally Epson's profits have been concentrated in the second half. We don't see any particular changes in the profit structure this time.
    We are currently taking a cautious stance. However, it's true to say that in electronic devices orders have increased considerably since the second quarter of FY2009, and that utilization rates for semiconductors, quartz and sensor, and high-temperature polysilicon TFT (HTPS) panel businesses remain better than previously.
    Markets are improving in the businesses comprising the information-related equipment segment, and we intend to firmly meet the improvement in demand.
  • Q3Please provide details of the difference between the FY2010 outlook of 24 billion yen in ordinary income and break even in net income.
  • AWe are forecasting an extraordinary loss of 12 billion yen and taxation charges of 12 billion yen.
    The extraordinary loss is for charges incurred in small- and medium-sized displays as we bring the reorganization of the business to completion.

Information-related equipment

  • Q4Please explain your strategies in the major information-related equipment businesses.
  • AIn inkjet printers, we will use our consumer products as a base to improve our lineup for enterprise.
    Although emerging markets remain small, we are aiming to increase sales as we rollout our consumables-based business model.
    In large format printers, Epson's strong presence is currently limited to photos and proofing. However, we intend to expand into areas such as CAD and signage, and intend to enrich our lineup with products compatible with solvent and white inks. We also plan to increase our lineup of products aimed at commerce and industry.
    In the projector business, Epson manufactures both key components and finished products, and we are currently planning fresh developments in HTPS, the core component in projectors. In finished products, we already have a strong lineup of entry level products for enterprise and education, and are looking to expand our product lineup in areas such as digital signage. Our aim here is to exceed market growth rates as we cement our leading position in the industry.

Electronic devices

  • Q5Please explain your strategies in the major electronic devices businesses.
  • AIn quartz devices, we already have a leading position in tuning fork-type crystals and intend to maintain our lead by creating products that are ever more compact. We will also expand the market for sensors by applying our QMEMS technology, a photolithography-based process. Our plans also call for expansion of devices that maintain outstanding performance, are extremely compact, and which offer high functionality. By doing this we are aiming to become the overwhelming market leader in AT products, in addition to tuning fork-type crystals.
    We also hope to drive synergies with our semiconductors to create high-value added modules, and develop products that are nearer to finished products than to components.
  • Q6How do you see profitability in electronic devices in FY2011?
  • ABased around our efforts in growth areas such as crystal devices, we are aiming to firmly transition to a profit-generating structure.