Notice of Revised First Half and Full-Year Financial Results Outlooks

 

- TOKYO, Japan, July 31, 2014 -

Seiko Epson Corporation (TSE: 6724, "Epson") today revised its financial results outlooks announced on April 30, 2014. Epson disclosed its original outlook for reference purposes based on International Financial Reporting Standards (IFRS) in the "Consolidated Results for Year Ended March 2014," but has revised these outlooks as follows due to the recent business situation.

Epson voluntarily adapted IFRS for financial statements for the fiscal year ended March 2014, and from the current fiscal year will disclose all financial results and outlooks based solely on IFRS.

1. Revised outlooks (IFRS) (April 1, 2014, to March 31, 2015)

(1) Revised first-half outlook (April 1, 2014, to September 30, 2014)

(Unit: billion yen, except where stated otherwise)

  Revenue Business profit*1 Profit from operating activities Profit before taxes Profit Profit for the period attributable to owners of the parent company Basic earnings (loss) per share for the period (yen)
Previous outlook (A) 480.0 24.0 45.0 -*2 38.0 -*2 -*2
Revised outlook (B) 503.0 38.0 69.0 69.0 59.0 59.0 329.81
Change (B-A) 23.0 14.0 24.0 - 21.0 - -
Change (%) 4.8 58.3 53.3 - 55.3 - -
Reference:
Previous year*3
(First half year ended September 2013)
471.371 33.570 30.433 29.523 19.897 19.844 110.93

(2) Revised full-year outlook (April 1, 2014, to March 31, 2015)

(Unit: billion yen, except where stated otherwise)

  Revenue Business profit*1 Profit from operating activities Profit before taxes Profit Profit for the period attributable to owners of the parent company Basic earnings (loss) per share for the period (yen)
Previous outlook (A) 1,010.0 85.0 104.0 -*2 80.0 -*2 -*2
Revised outlook (B) 1,040.0 92.0 120.0 119.0 100.0 100.0 559.0
Change (B-A) 30.0 7.0 16.0 - 20.0 - -
Change (%) 3.0 8.2 15.4 - 25.0 - -
Reference:
Previous year*3
(Year ended March 2014)
1,008.407 90.087 79.549 77.977 84.442 84.203 470.69

*1 Business profit = revenue - cost of sales - selling, general and administrative expenses. Although not defined in the statements of comprehensive income, this indicator is very similar to the concept of operating income under J-GAAP. Epson will present this information as a reference, as the Company believes users of financial statements will find it useful when evaluating Epson's financial performance.

*2 Profit before taxes and profit for the period attributable to owners of the parent company and basic earnings (loss) per share for the period are marked with "-" in these tables because they were not disclosed in the "Consolidated Results for Year Ended March 2014" issued on April 30.

*3 Previous year results and comparisons are based on IFRS (pre-audit).

2. Reasons for revision

Overall revenue and business profit in the first half are expected to exceed the previous forecast. In addition to the effects of foreign exchange rates, first half results will be boosted due to steady sales of high-capacity ink tank printers in emerging economies, increases in revenue for inkjet printer consumables due to an improved model mix for the machines in field, and growing unit sales of 3LCD projectors. We also expect increased demand for certain semiconductor applications and improved revenue from industrial robots. Operating profit and subsequent profit categories will also increase significantly compared to the previous outlook given the above factors and the effects of reflecting the reduction of expenses associated with past service costs due to a revision of the defined benefit plan.

In the second half, we will see further growth of printers aimed at emerging economies. On the other hand, we will also make strategic timely investments including those to secure the ongoing growth of inkjet printers for the office and increase sales of hardware aimed at increasing consumables revenue growth next year and beyond. Although overall revenue is forecast to increase slightly, business profit will be below plan compared to the initial outlook due to factors such as certain semiconductor orders being brought forward from the second half.

As a result of these factors, we are upwardly revising our full-year outlooks for revenue and each profit category.


About Epson
Epson is a global innovation leader dedicated to exceeding expectations with solutions for markets as diverse as the office, home, commerce and industry. Epson's lineup ranges from inkjet printers, printing systems and 3LCD projectors to industrial robots, smart glasses and sensing systems and is based on original compact, energy-saving, and high-precision technologies.
Led by the Japan-based Seiko Epson Corporation, the Epson Group comprises more than 73,000 employees in 94 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/