Notice of Difference between First Half Outlook and Actual Results, and Revision of Full Year Financial Results Outlook


- TOKYO, Japan, October 31, 2014 -

Seiko Epson Corporation (TSE: 6724, "Epson") today announced a difference between its first half (April 1, 2014, to September 30, 2014) outlook issued on July 31, 2014, and its actual results announced today. The Company also revised its full year (April 1, 2014, to March 31, 2015) financial results outlook.

1. Difference between first half outlook and actual results (IFRS)
(April 1, 2014, to September 30, 2014)

(Unit: billion yen, except where stated otherwise)

  Revenue Business profit* Profit from operating activities Profit before taxes Profit for the period Profit for the period attributable to owners of the parent company Basic earnings (loss) per share for the period (yen)
Previous outlook (A) 503.0 38.0 69.0 69.0 59.0 59.0 329.81
Actual results (B) 512.807 50.910 78.582 80.618 65.684 65.587 366.63
9.807 12.910 9.582 11.618 6.684 6.587 -
Change (%) 1.9 34.0 13.9 16.8 11.3 11.2 -
Previous year
(First half year ended September 2013)
471.371 33.570 30.433 29.523 19.897 19.844 110.93

*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. Revised full-year outlook (IFRS)
(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 for the year Profit for the year attributable to owners of the parent Basic earnings (loss) per share for the year
Previous outlook (A) 1,040.0 92.0 120.0 119.0 100.0 100.0 559.00
Revised outlook (B) 1,060.0 105.0 132.0 132.0 111.0 111.0 620.50
20.0 13.0 12.0 13.0 11.0 11.0 -
Change (%) 1.9 14.1 10.0 10.9 11.0 11.0 -
Previous year
(Year ended March 2014)
1,008.407 90.087 79.549 77.977 84.442 84.203 470.69

3. Reasons for difference and revision

As shown in table 1 above, first half results exceeded the previous forecast. In addition to higher revenue, business profit was boosted by expanded sales of inkjet printer consumables, robust sales of POS system products, increased unit sales of 3LCD projectors, and the effects of the weakened yen.

We also expect second half revenue to exceed our previous forecast. This improvement will be driven by ongoing sales growth for high-capacity ink tank printers and managed print services for office inkjet printers, and steady sales of 3LCD projectors. On the other hand, we are standing by our previous forecast for business profit. Although we do not expect significant changes in the market environment or our strategy in our various businesses, we forecast increased costs for promoting sales of strategic products, additional costs accompanying the improved business results, and fixed cost expenditures postponed from the first half.

In light of the above, Epson is upwardly revising its full year financial results outlook as shown in table 2 above.

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 72,000 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.