Consolidated Results for the First Quarter Ended June 30, 2012

Q&A summary

Click on the appropriate question to view the answer.

Overall

Q1
Has the adjustment of your annual outlook affected your dividend policy?
A
At present, we are standing by our interim and year-end dividend forecasts. Our basic policy is to provide stable dividends to our shareholders. In addition, we still forecast improved profitability over the previous year, despite the extremely disappointing first quarter results.
Our priorities now are to achieve our revised outlook and to reward our shareholders appropriately.

Information-related equipment

Q2
What are the latest trends in the inkjet printer market, and how is Epson doing?
A
In the first quarter, The Japanese market was flat while the European and American markets were down compared to the previous year.
Although Epson's unit sales were below plan, we achieved an increase against the year ago period. Although we felt the impact of our competitor's actions in Japan, we increased year-on-year sales in other regions. In Europe and America in particular we were able to significantly increase sales despite the overall market shrinking.
We also achieved steady sales of core strategic products such as inkjet printers for the office and high-capacity ink tank models.
The current market situation suggests that the harsh market conditions are likely to continue from the second quarter onwards. Epson plans to launch competitive new products, and, while carefully observing the market situation, will closely monitor sales and inventory levels as it seeks to achieve its revised financial outlook.
Q3
Why do you believe that profitability will improve in the information-related equipment segment from the second quarter onwards?
A
In the printer business we forecast an improved model mix as we launch new products for the home and office, and new large format printers, and also forecast an expansion of consumables net sales. Additionally, we expect to see cost benefits as we increase the proportion of compact models in our lineup. By carefully adjusting manufacturing levels we will be able to maintain costs at an appropriate level.
We will increase net sales in the visual products business by launching competitive products such as our short-throw projectors, and by winning large individual orders.

Devices and precision products

Q4
Epson is not revising its outlook for electronic devices despite tough conditions in the market. Why is this?
A
We forecast tough market conditions when we compiled our initial net sales outlook. Although the market situation remains weak, we are standing by our original outlook as our planned cost cuts are on schedule.