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• Q1

  Why was second quarter business profit greater than your previous outlook?

• Q2

  One of your aims in your mid-range business plan was to generate cash. How do you plan to use the cash you have accumulated to date?

• Q3

  What are your targets for shareholder returns?

• Q4

  How do you see sales of high-capacity ink tank printers in advanced economies next year and beyond?

• Q5

  How are you progressing in your efforts to shift office printing from laser to inkjet?

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• Q1

  Why was second quarter business profit greater than your previous outlook?

• A

  The majority of the increase was in the information-related equipment business, although foreign exchange boosted overall earnings by approximately 1 billion yen. The main factors in this business were increased revenue from consumables due to the improved model mix in the inkjet printer install base and also because of greater-than-expected sell-in to the channel of ink cartridges for some new models. ASPs also exceeded our outlook, although unit sales were below plan as competitors reduced prices of old models to make way for their new products. 3LCD projector unit sales exceeded our expectations as we achieved record sales for the quarter. We also captured orders in business systems, largely due to robust sales of POS printers in Europe and the US.
  Another factor was the postponement of certain fixed costs from the first to the second half.

• Q2

  One of your aims in your mid-range business plan was to generate cash. How do you plan to use the cash you have accumulated to date?

• A

  We intend to firmly stick by the strategy laid out in our mid-range business plan in March 2013, and to allocate funds to initiatives aimed at increasing customer value. An example of this is PrecisionCore, an inkjet technology that we refined and used as the basis of products that provide original value for customers.

• Q3

  What are your targets for shareholder returns?

• A

  As stated previously, our aim is to maintain stable dividend payments, with a long term goal of achieving a consistent consolidated dividend payout ratio of 30%. We will prioritize achieving this payout ratio at the earliest possible opportunity, and then revisit our policy on shareholder returns.

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• Q4

  How do you see sales of high-capacity ink tank printers in advanced economies next year and beyond?

• A

  We have only just begun sales of these products in Western Europe and intend to study the situation carefully before making detailed sales forecasts. Our test marketing indicates that there is demand for both these products and also for ink cartridge models in developed economies. We will continue to promote the benefits of both types of printers as we seek to expand our customer base in developed economies.

• Q5

  How are you progressing in your efforts to shift office printing from laser to inkjet?

• A

  The office printing market is very broad. Within this market, inkjets have started to make inroads in the lower price ranges.
  Until recently we did not have a sufficient lineup of faster inkjet printers. However, by offering managed print services and models with replaceable ink pack systems we have recently been able to offer printers with levels of performance and durability that meet the needs of office customers. By continuing to offer low running costs, our aim is to steadily expand the scope of inkjet in the office.

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