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• Q1

  Please explain the reasoning behind the revision of your dividend outlook.

• Q2

  How does Epson calculate the profit that is the basis for its 30% dividend payout ratio?

• Q3

  What are your plans for advertising and sales promotions going forward?

• Q4

  How were inkjet printer sales in the third quarter?

• Q5

  How are sales of Epson's high-capacity ink tank printers?

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• Q1

  Please explain the reasoning behind the revision of your dividend outlook.

• A

  Although we previously concentrated on paying stable dividends, we have now decided to implement our long-established policy aim of achieving a dividend payout ratio of 30% and have raised our full-year dividend payment from 70 to 115 yen per share. We took this decision after considering the progress we have made in achieving our strategic goals, and our efforts to improve financing and to strengthen our financial structure.

• Q2

  How does Epson calculate the profit that is the basis for its 30% dividend payout ratio?

• A

  Epson calculates its dividend payout based on profit after excluding certain special factors such as tax and other expenses. Profit after excluding certain special factors is calculated by deducting tax and other expenses equivalent to the statutory income tax rate from business profit^*.
  ^* Business profit (IFRS) is calculated by deducting the cost of sales and SGA expenses from revenue.

• Q3

  What are your plans for advertising and sales promotions going forward?

• A

  In the fourth quarter we aim to take a balanced approach between generating short-term profit and long-term growth. We will do this by implementing measures to boost sales of inkjet printers aimed at generating future consumables sales in developed economies, promoting high-capacity ink tank printers in Western Europe, and boosting the penetration of managed print services in Japan.
  We are also looking to invest in strengthening the Epson brand. Although we have firmly established the Epson brand in the printer market, we are seeking to similarly boost awareness and understanding of our brand in some of our other product lines.

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• Q4

  How were inkjet printer sales in the third quarter?

• A

  The US market was flat, the Western European market showed a slight increase, and the Japanese was down due to the delayed economic recovery.
  Epson's overall unit sales were basically in line with the previous year. The impact of intensified price competition on unit sales in Japan and of product- and region-specific campaigns by competitors in the United States and Europe was offset by steady sales of high-capacity ink tank models in emerging economies.
  Consumables revenue exceeded the previous year. Sales proceeded accorded to the previous outlook and we were also boosted by the effects of foreign exchange.

• Q5

  How are sales of Epson's high-capacity ink tank printers?

• A

  Sales of these printers are proceeding steadily according to our forecast. We are starting to see favorable signs for these products in Western Europe, and we are planning promotions to strengthen our sales further.

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