Notice concerning the recording of impairment loss and differences between the full-year forecast and actual results for the fiscal year ended March 2026 (IFRS)

- TOKYO, Japan, May 1, 2026 -

Seiko Epson Corporation (TSE: 6724, "Epson") has announced the recording of impairment loss on goodwill in the consolidated financial results for the fiscal year ended March 2026. As a result, there is a difference between the forecast for the fiscal year announced on February 3, 2026, and the actual results announced today.

1. Recording of impairment loss on goodwill

Following the results of an impairment test conducted on the goodwill related to Fiery, LLC, which is included in the commercial & industrial printing business, Epson recorded an impairment loss of ¥25.9 billion on a portion of such goodwill in its consolidated financial results for the fiscal year ended March 31, 2026.

This impairment was recognized due to a deterioration in market conditions in the commercial printing and industrial printing markets served by Fiery, LLC, which has become more severe than previously anticipated. Specifically, capital expenditure by the customers has been constrained amid factors such as the impact of U.S. tariff policies. Considering these circumstances, Epson conducted a prudent review of its business plans, resulting in the recognition of the impairment loss.

2. Difference between forecast and actual results for the fiscal year ended March 2026 (April 1, 2025, to March 31, 2026)

	Revenue	Business profit	Profit from operating activities	Profit before tax	Profit for the period	Profit for the period attributable to owners of the parent company	Basic earnings per share
	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Previous forecast (A)	1,390,000	75,000	67,000	68,000	41,000	41,000	127.95
Actual results(B)	1,413,251	83,788	49,558	50,023	18,206	18,201	56.81
Difference (B-A)	23,251	8,788	△17,441	△17,976	△22,793	△22,798	-
Difference (%)	1.7%	11.7%	△26.0%	△26.4%	△55.6%	△55.6%	-
Reference: Results for the year ended March 2025	1,362,944	89,589	75,108	78,395	55,181	55,177	168.75

Note: Business profit is calculated by subtracting cost of sales and selling, general and administrative expenses from revenue.

3. Reasons for the difference

Revenue and business profit exceeded the previously announced forecast, mainly due to increased sales in the printing solutions business segment, as well as the positive impact of foreign exchange rates. On the other hand, profits at each level below operating profits fell short of the previously announced forecast, primarily due to the recording of the impairment loss related to Fiery, LLC, as described above.

About Epson
Epson is a technology innovation and engineering company whose philosophy of efficient, compact, and precise innovation enriches lives and helps create a better world. The company uses technology and engineering ability to implement real-world solutions in precision innovation, industrial & robotics, office & home printing, and visual & lifestyle.
Led by the Japan-based Seiko Epson Corporation, the worldwide Epson Group generates annual sales of more than JPY 1.3 trillion.
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