Notice of Difference between Full-Year Outlook and Actual Results, Notice of Non-Operating Expenses, and Notice of Extraordinary Income and Extraordinary Loss

 

- TOKYO, Japan, April 30, 2013 -

Seiko Epson Corporation (TSE: 6724, "Epson") today announced a difference between its full year (April 1, 2012, to March 31, 2013) outlook issued on January 31, 2013. and its actual results announced today. The Company also announced non-operating expenses, extraordinary income and an extraordinary loss.

1. Revised financial results outlook

(1) Revised full-year outlook (April 1, 2012, to March 31, 2013)

(Unit: billion yen, except where stated otherwise)

  Net sales Operating
income
Ordinary
income
Net income Net income
per share (yen)
Previous outlook (A) 850.0 18.0 16.0 -15.0 -83.85
Revised outlook (B) 851.297 21.255 17.629 -10.091 -56.41
Change (B-A) 1.297 3.255 1.629 4.909 -
Change (%) 0.2% 18.1% 10.2% - -
Reference:
Previous year
(ended March 2012)
877.997 24.626 27.022 5.032 26.22

(2) Reasons for revision

Net sales were in line with the previous outlook. Slowing demand for inkjet printers and projectors was offset by the effects of the weakened yen, especially in the information-related equipment business.
Operating and ordinary income exceeded the previous outlook. This was due to the effects of the weakened yen in addition to better profitability due to an improved model mix and the effects of cost cutting. Net income was also higher than the previous outlook due to reduced taxation expenses.

2. Non-operating expenses, extraordinary income and extraordinary loss

(1) Non-operating expenses
Foreign exchange loss (consolidated)

In the fourth quarter, Epson recorded non-operating expenses of 3.711 billion yen as a result of recent foreign exchange rate fluctuations, and related forward-exchange contracts.

(2) Extraordinary income
Insurance income (nonconsolidated and consolidated)

In the fourth quarter, Epson recorded insurance income of 2.69 billion yen (nonconsolidated) and 2.754 billion yen (consolidated) related to losses incurred as a result of the earthquake and tsunami that struck the Tohoku area of Japan in March 2011.

(3) Extraordinary loss
Impairment loss (nonconsolidated and consolidated)

Epson has assessed the recoverable value of some of the idle assets owned by the company and its consolidated subsidiaries. As a result, the company has reduced the book value of these assets to the recoverable value, and has therefore recorded an extraordinary loss of 4.427 million yen (nonconsolidated) and 4.542 million yen (consolidated).

The aforementioned foreign exchange loss, insurance income and impairment loss have been reflected in the business results for the full year ended March 31, 2013, disclosed today. For details, please refer to "Consolidated Results for Year Ended March 31, 2013."


About Epson
Epson is a global innovation leader whose product lineup ranges from inkjet printers and printing systems, 3LCD projectors and industrial robots to sensors and other microdevices. Dedicated to exceeding the vision of its customers worldwide, Epson delivers customer value based on compact, energy-saving, and high-precision technologies in markets spanning enterprise and the home to commerce and industry.
Led by the Japan-based Seiko Epson Corporation, the Epson Group comprises more than 68,000 employees in 96 companies around the world, and is proud of its ongoing contributions to the global environment and the communities in which it operates. http://global.epson.com/