Second Quarter Financial Results Fiscal Year 2013 (Ending March 2014)

October 31, 2013 Seiko Epson Corp.

SEIKO EPSON CORPORATION 2013. All rights reserved.

Disclaimer regarding forward-looking statements

The foregoing statements regarding future results reflect the Companys expectations based on information available at the time of announcement. The information contains certain forwardlooking statements that are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, the competitive environment, market trends, general economic conditions, technological changes, exchange rate fluctuations and our ability to continue to timely introduce new products and services.

Numerical values presented herein

Numbers are rounded to the unit indicated. Percentages are rounded off to one decimal place.

Changes to segment reporting

We redefined future growth areas based on the business strategies outlined in the Updated SE15 Second-Half Mid-Range Business Plan (FY2013-15) and reorganized at the start of fiscal 2013 to more sharply clarify and accelerate initiatives in every business domain.

FY2012 Segments
IJP Printer Visual Products Device PP BS PRJ
Crystal devices Semiconductors

FY2013 Segments
Business name Printing Systems Visual Communications Microdevices Businesses included Inkjet printers Page printers Business systems Projectors, HMD Crystal devices Semiconductors Watches Metal powder Surface finishing

Disclosure segment

Informationrelated equipment Devices & precision products

Watches Precision Products

Metal powder
Surface Finishing Factory automation

Precision Products

Sensing & industrial solutions

Group

P Project M Project

Industrial Solutions Sensing Systems

*P: Personal M: Motion

*HMD: Head-mounted display

- FY2012 segment financials were adjusted for comparison against the FY2013 outlook. - The transferred optical products business is included in the Corporate Segment.

1. Overview

2. Details

Financial Highlights (First Half)

FY2012
(Billions of yen)

FY2013
7/31 Outlook

Change (amount, %)

Actual 388.2

% -

% 2.9% 2.0% 1.6% 0.2%

Actual
468.6 34.0 30.6 28.5 18.4 103.09 98.85 130.00

% 7.3% 6.5% 6.1% 3.9%

Y/Y +80.3

Vs. previous outlook

Net sales Operating income

Ordinary income Net income
before income taxes

450.0 13.0 9.0 7.0 1.0

5.59 94.00 124.00

+20.7%

+18.6
+4.1%

-14.1 -3.6% -14.1 -3.7% -29.6 -7.6% -35.4 -9.1%

-198.15

+48.1 +21.0 - +161.8% +44.8 +21.6 +240.5% +58.1 +21.5 - +307.7% +53.8 +17.4 -

Net income

EPS
Exchange rate
4

USD EUR

79.41 100.64

Previous outlook exchange rate assumptions from Q2 onward USD: 90.00, EUR: 120.00

Financial Highlights (Second Quarter)

FY2012
(Billions of yen)

FY2013
Q2 Actual

(amount, %)

Change

7/31 previous outlook (Ref.)

Q1 results deducted from H1 outlook

Q2 Actual

% 1.0% 1.1% 1.1%

% -

Y/Y

% 2.2% 1.8% 1.6% 0.4%

Net sales Operating income Ordinary income

Net income
before income taxes

201.9 1.9 2.2 2.2

248.4

+23.0%

+46.5 +24.0 +23.5 +23.0 +19.2 -

229.8 4.9 4.1 3.7 0.8

26.0 10.5% 25.7 10.4% 25.2 10.2% 18.3 102.38 98.95 131.05 7.4%

Net income

-0.9 -0.5%
-5.48

EPS
Exchange rate
5

USD EUR

78.63 98.36

90.00 120.00
Previous outlook exchange rate assumptions from Q2 onward USD: 90.00, EUR: 120.00

FY2013 Second Quarter Business Results

By business segment

Net Sales
300.0

(Billions of yen)

Operating Income
1.9 4.9 26.0 Y/Y
Devices & Precision Products
3.7

201.9

229.8
Other

248.4

40.0
Corporate

250.0
0.7

2.8 4.3 39.0

0.3

6.2 3.3 39.7

30.0

Net sales Op. income Information Equipment

+1.5 +0.2

200.0

0.2

2.9 3.3 38.2

150.0

20.0
0.0

Net sales Op. income

2.9 29.7

+41.0 +20.5

100.0 159.2 50.0

185.4

200.2
10.0

3.4 12.1 9.2

Sensing and Industrial Solutions Net sales Op. income

-2.7 0.0

+0.0 -0.6

0.0

0.0

-2.0

-2.6

-1.5

0.0

-2.0 0.0

-2.8 0.0

0.0

-8.6
-50.0
-10.0

-7.3
Previous Outlook (Ref.)

-4.7
FY2013

Corporate

Actual

FY2012

FY2013
Previous Outlook (Ref.)

Actual

FY2013

Actual

FY2012

FY2013

Actual

Main Factors Affecting Q2 Results (Year-Over-Year) Net sales and every income category improved dramatically due to strategic measures in information equipment and weaker yen
Information Equipment Segment

Inkjet Printer Business Improved model mix and average selling prices Low-end models curtailed in developed markets, lineup of office and other high-end models strengthened, prices maintained Large increase in shipments of highcapacity ink tank models in emerging markets Increased revenue from consumables by improving model mix
Epson L350

Increased shipments of new commercial printers*

7
* Large-format printers up to 64 inches

Main Factors Affecting Q2 Results (Year-Over-Year)

Business Systems Business SIDM unit shipments increased due to firm demand in China North American market for POS products recovering Visual Communications Business Quarterly shipments hit an all-time high, driven by sales of business projectors in North America and education projectors in Europe and China Devices & Precision Products Segment Microdevices Business Competitors reduced prices due to weakened yen Precision Products Business Sales of premium products in Japan remained firm Corporate Effectively used Epson patents to generate patent royalty income
8

FY2013 Financial Outlook

FY2012
(Billions of yen)

FY2013
7/31 Outlook

Change (amount, %)

Actual 851.2 21.2 17.6

% 2.5% 2.1%

% 4.0% 3.5% 2.8% 1.6%

Current Outlook

% -

Y/Y

Vs. previous outlook

Net sales Operating income Ordinary income

Net income
before income taxes

930.0 37.0 33.0 26.0 15.0

83.85 92.00 122.00

960.0 58.0 55.0 48.0 34.0

190.06 97.00 127.00

+12.8%

108.7

+30.0
+3.2%

+36.7 +21.0 6.0% +172.9% +56.8% +37.3 +22.0 5.7% +212.0% +66.7% 5.0% 3.5% +51.4 +22.0 - +84.6% +44.0 +126.7%

-3.4 -0.4% -10.0 -1.2%

-56.41

Net income

+19.0

EPS
Exchange rate
9

USD EUR

83.11 107.14

Current outlook exchange rate assumptions from Q3 onward USD: EUR: 95.00 125.00

Previous outlook exchange rate assumptions from Q2 onward USD: 90.00, EUR: 120.00

FY2013 Financial Outlook (Net Sales)

By business segment Net Sales
851.2
950.0
1.2

Other

(Billions of yen)

Half-Yearly Net Sales

450.0 468.6 480.0 491.3

930.0
4.0 1.0 19.0

960.0
1.0

Corporate
Y/Y Vs. previous -11.9 +3.0
450.0

7.0 16.0 146.0

18.9 11.4 140.7

146.0

Sensing & Industrial Solutions Y/Y Vs. previous +4.5 -3.0

1.0

3.0 8.0 76.0

0.5

6.3 7.0 76.7

0.0

1.0 11.0 70.0

0.4

0.6 8.9 69.2

750.0

350.0

550.0

Devices & Precision Products

Y/Y Vs. previous
767.0 797.0

+5.2 0.0

250.0 401.0 416.1

366.0

380.8

350.0

685.8

Information Equipment
Y/Y +111.1 Vs. previous +30.0

150.0

150.0

50.0 -4.0 -2.9 -3.0 -4.0

-7.0 -50.0

-7.0

-7.0

Eliminations

-50.0

FY2012
10 Actual

FY2013
Previous Outlook

FY2013
Current Outlook

H1 Previous Outlook

H1 H2 H2 Actual Previous Current Outlook Outlook

FY2013 Financial Outlook (Operating Income)

By business segment Operating income
21.2
110.0 0.0 10.0 90.0 0.0 10.0

(Billions of yen)
Other

Half-Yearly Operating Income

37.0

58.0

13.0
60.0

34.0

24.0

24.0

Devices & Precision Products

Y/Y Vs. previous +1.3 0.0

7.7

0.0 3.0

0.1 2.2

70.0 0.2 8.6 50.0 76.0 30.0 51.7 95.0

Information Equipment
Y/Y Vs. previous +43.2 +19.0

40.0 0.0 7.0 45.6 20.0 28.0 48.0 49.4

Sensing & Industrial Solutions Y/Y Vs. previous -0.3 -1.0

0.0 -5.0
0.0

10.0 -9.6 -10.0 -0.1 -9.0 0.0 -10.0 0.0

-4.8 -0.1 0.0

-4.0

0.0

-5.1
0.0

-29.6
-30.0

-40.0
FY2013

-37.0
FY2013

Corporate
-20.0

-17.0
H1 Previous Outlook

-14.3

-23.0

-22.6

FY2012
11 Actual

Previous Outlook

Current Outlook

H1 H2 H2 Actual Previous Current Outlook Outlook

Main Factors Affecting FY2013 Outlook

Revised H2 exchange rate assumptions to USD = 95 and EUR = 125 based on recent trends and factored the considerations below into the outlook
Information Equipment Segment

Although no major changes are expected in the market from the first half, we raised our outlook because we will achieve our previous forecast by continuing to pursue our planned strategic actions in IJP and elsewhere, and will then factor in the latest exchange rate assumptions.
Devices & Precision Products Segment

The microdevice outlook was lowered due to ongoing price erosion

Sensing & Industrial Solutions Segment

Lowered the outlook due to delayed rollout of products in new business

12

SE15 Mid-Range Business Plan Progress (1)

Office IJP models seen accounting for more than 20% of FY2013 IJP unit shipments. Steadily improve install base composition with an upgraded lineup instead of counting on steep growth in office unit shipments. High-capacity ink tank models were initially expected to account for less than 50% of FY2013 unit shipments in Asia-Pacific and Latin America. The latest outlook is for more than 50%.

60% 50% 40% 30% 20% 10% 0%

Office and high-capacity ink tank IJP unit shipments as a % of total inkjet units
High-capacity ink tank model unit shipments as a % of total IJP units in Asia-Pacific and Latin America

Office IJP unit shipments as a % of total IJP units

High-capacity ink tank model unit shipments as a % of total IJP units worldwide

20% 0% -20%
13

Year-over-year change in inkjet printer ASPs

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013(E) FY2013(E)

SE15 Mid-Range Business Plan Progress (2)

We steadily reduced the IJP variable cost ratio by improving the model mix, increasing ASPs, and reducing costs. The effect of this improvement is also being seen in income, and a dramatic improvement in profitability is forecast for FY2013.
Broad deployment of compact IJPs Announced ten new compact, stylish inkjet printer models for Japanese market on Sept. 3.
Footprint: 83.5 %

The EP-976A3 (an A3-size The EP-801A (an A4-size Volume: 82.4 % printer in 2013) equivalent from 2008) * With built-in duplex print * With optional duplex unit function (up to A4)

EP-705A (2012)

36 % size reduction

EP-706A (2013)

Inkjet printer variable cost ratio

14

FY2010

FY2011

FY2012

FY2013(E) FY2013

1. Overview

2. Details

15

1) FY2013 Q2 Financial Results 2) FY2013 Business Outlook

16

Financial Highlights (Second Quarter)

FY2012
(Billions of yen)

FY2013
Q2 Actual

Change

(amount, %)

7/31 previous outlook

Q1 results deducted from H1 outlook

Q2 Actual

% 1.0% 1.1% 1.1%

% -

Y/Y

% 2.2% 1.8% 1.6% 0.4%

Net sales Operating income Ordinary income

Net income
before income taxes

201.9 1.9 2.2 2.2

248.4

+23.0%

+46.5 +24.0 +23.5 +23.0 +19.2 -

229.8 4.9 4.1 3.7 0.8

26.0 10.5% 25.7 10.4% 25.2 10.2% 18.3 102.38 98.95 131.05 7.4%

Net income EPS Exchange rate

17

-0.9 -0.5%
-5.48

USD EUR

78.63 98.36

90.00 120.00
Previous outlook exchange rate assumptions from Q2 onward USD: 90.00, EUR: 120.00

Quarterly Net Sales Trend

By business segment
(Billions of yen)

201.9

235.8

227.1

220.1

248.4

Consolidated total Y/Y Corporate

300.0
Other

+46.5

250.0
0.2

200.0

0.2

3.3 38.2

2.9

2.3 34.4

3.0
0.4

0.3

6.2

10.4

3.0 31.5

0.2

3.6 36.9

0.1

3.3 39.7

Y/Y

+3.3

Sensing & Industrial Solutions

Y/Y

+0.0

150.0

Devices & Precision Products

100.0

197.0 159.2

200.2 182.8 180.5

Y/Y Information Equipment Y/Y

+1.5

50.0

+41.0

0.0

-2.0

-1.3

-1.2

-1.3

-1.5
Eliminations

-50.0 2012/Q2
18

2012/Q3

2012/Q4

2013/Q1

2013/Q2

Quarterly Net Sales Comparison

Information Equipment Segment
(Billions of yen)

220.0 200.0 180.0 160.0 140.0 120.0 100.0

159.2

200.2
6.0 42.0

PC, Other
Y/Y

+1.8

Visual Communications

PRJ: Unit shipments up in

4.2 32.0

Y/Y

+10.0

all regions, esp. Americas.

% sales 12/Q2 13/Q2 PRJ 89% 91% Other 11% 9%

IJP: Net sales up despite drop in

Printing Systems

80.0 60.0 40.0 20.0 0.0 -20.0 2012/Q2

19

152.4 123.0

Y/Y

+29.4

0.0

-0.3
2013/Q2

% sales 12/Q2 13/Q2 IJP 69% 70% PP 10% 8% BS 19% 20% 2% SCN, other 2%

printer volume, as the strategy of increasing sales of high-capacity ink tank models gained traction and consumables sales grew. PP: Net sales down on lower hardware unit shipments. BS: Net sales up on higher unit shipments of SIDM, and tender wins for POS products.
IJP PP BS SIDM POS SCN PRJ Inkjet printer Page printer Business systems Serial impact dot matrix printer Point of sales Scanner Projector

Eliminations

Quarterly Net Sales Comparison

(Billions of yen)

Devices and Precision Products Segment

38.2 39.7

50.0

Precision Products Y/Y

Watches: Steady growth

+2.5

14.1
30.0

16.7

Microdevices
Y/Y

Quartz: Net sales down due

-0.7

to price erosion. Semiconductors: Foreign exchange compensated for microcontroller price erosion.

25.2
10.0

24.5

% sales 12/Q2 13/Q2 Quartz 65% 63% Semicon. 35% 37%

-1.1

-1.4

Eliminations, Other
-10.0
20

2012/Q2

2013/Q2

Quarterly Selling, General and Administrative Expenses

(Billions of yen)

80.0 70.0 60.0 50.0

49.8

52.9
(% sales)

58.7
25.8%

53.5

55.8

24.7% 22.5%

24.3% 22.5%

Other
Y/Y

+2.0

27.8
40.0 30.0 20.0 10.0 0.0 2012/Q2
21

24.2

25.0 3.6 5.2

25.9

26.2

Advertising
Y/Y

-0.4

3.5 4.5 17.5

4.7 4.6

2.5 3.9

3.0 4.5

Sales Promotions
Y/Y

-0.0

18.4

21.9

21.0

21.8
Salaries & Wages

2012/Q3

2012/Q4

2013/Q1

2013/Q2

Y/Y

+4.3

Quarterly Operating Income Trend

By business segment
(Billions of yen)

1.9

25.9
34.8

9.4

8.0

26.0
Information Equipment Y/Y

40.0

30.0

29.7

+20.5

20.0

13.7
10.0

15.8

Devices & Precision Products Y/Y

9.2 3.4 2.2 4.0 0.7 -2.2 -2.1 -2.7 3.7

+0.2

Sensing & Industrial Solutions

0.0

-2.0
-10.0
-8.6 -8.5

Y/Y

-0.6

-2.6

* "Other" segment not shown

-2.8
2012/Q4

-9.6
2013/Q1

-4.7
2013/Q2

Corporate

-20.0
2012/Q2
22

2012/Q3

Operating Income Fluctuation Cause Analysis

(Billions of yen) 26.0

+3.2 +6.1
Price fluctuations

+0.1
Cost fluctuations

+0.3
S.G.A. decrease

+14.3
Changes in sales volume

1.9 0
Operating income Impact of exchange rate fluctuations Operating income

2012/Q2
23

24.0 billion increase

2013/Q2

Statistics of Balance Sheet Items

Total assets
1,000.0

500.0

798.2
End of March 2011

740.7
End of March 2012

721.4
End of September 2012

778.5
End of March 2013

812.8
End of September 2013

0.0

(Billions of yen)

Inventories
200.0 100.0 0.0

151.9
End of March 2011

162.2
End of March 2012

181.0
End of September 2012

163.5
End of March 2013

181.9
End of September 2013

24

Statistics of Balance Sheet Items

Interest-bearing liabilities & ratio of interest-bearing liabilities
400.0

34.1% 272.1

32.4% 239.8
End of March 2012

38.8% 279.8
End of September 2012

34.9% 271.8
End of March 2013

32.7% 265.5
End of September 2013

200.0

0.0

(Billions of yen)

End of March 2011

Shareholders equity & equity ratio

400.0 200.0 0.0

33.7% 269.2
End of March 2011

33.3% 246.4
End of March 2012

27.4% 197.5
End of September 2012

33.0% 256.7
End of March 2013

35.1% 285.4
End of September 2013

25

*Lease obligations are included in interest-bearing liabilities *Shareholder equity = total net assets - minority interests in subsidiaries

1) FY2013 Q2 Financial Results 2) FY2013 Business Outlook

26

FY2013 Financial Outlook

FY2012
(Billions of yen)

FY2013
7/31 Outlook

Change (amount, %)

Actual 851.2 21.2 17.6

% 2.5% 2.1%

% 4.0% 3.5% 2.8% 1.6%

Current Outlook

% -

Y/Y

Vs. previous outlook

Net sales Operating income Ordinary income

Net income
before income taxes

930.0 37.0 33.0 26.0 15.0

83.85 92.00 122.00

960.0 58.0 55.0 48.0 34.0

190.06 97.00 127.00

+12.8%

108.7

+30.0
+3.2%

+36.7 +21.0 6.0% +172.9% +56.8% +37.3 +22.0 5.7% +212.0% +66.7% 5.0% 3.5% +51.4 +22.0 - +84.6% +44.0 +126.7%

-3.4 -0.4% -10.0 -1.2%

-56.41

Net income EPS Exchange rate

27

+19.0

USD EUR

83.11 107.14

Current outlook exchange rate assumptions from Q3 onward USD: EUR: 95.00 125.00

Previous outlook exchange rate assumptions from Q2 onward USD: 90.00, EUR: 120.00

FY2013 Financial Outlook (Net Sales)

By business segment Net Sales
851.2
950.0
1.2

Other

(Billions of yen)

Half-Yearly Net Sales

450.0 468.6 480.0 491.3

930.0
4.0 1.0 19.0

960.0
1.0

Corporate
Y/Y Vs. previous -11.9 +3.0
450.0

7.0 16.0 146.0

18.9 11.4 140.7

146.0

Sensing & Industrial Solutions Y/Y Vs. previous +4.5 -3.0

1.0

3.0 8.0 76.0

0.5

6.3 7.0 76.7

0.0

1.0 11.0 70.0

0.4

0.6 8.9 69.2

750.0

350.0

550.0

Devices & Precision Products

Y/Y Vs. previous
767.0 797.0

+5.2 0.0

250.0 401.0 416.1

366.0

380.8

350.0

685.8

Information Equipment
Y/Y +111.1 Vs. previous +30.0

150.0

150.0

50.0 -4.0 -2.9 -3.0 -4.0

-7.0 -50.0

-7.0

-7.0

Eliminations

-50.0

FY2012
28 Actual

FY2013
Previous Outlook

FY2013
Current Outlook

H1 Previous Outlook

H1 H2 H2 Actual Previous Current Outlook Outlook

Net Sales Outlook by Business

Net Sales
900.0

Information Equipment Segment

(Billions of yen)

Half-Yearly Net Sales

366.0 380.8 401.0 416.1

685.8

767.0

797.0 PC, Other

22.0
450.0

19.0 700.0 17.5 130.8 153.0 158.0

Y/Y Vs. previous

+4.4 +3.0
9.0 350.0

10.0 10.3 78.0 77.9

11.6 80.0

Visual Communications
Y/Y Vs. previous +27.1 +5.0
250.0

75.0

500.0

300.0 538.1

596.0

618.0

Printing Systems
Y/Y Vs. previous +79.8 +22.0

150.0

282.0

293.1

314.0

324.8

100.0 -0.7 -100.0

50.0

-1.0

-1.0

0.0

-0.6

-1.0

-0.3

Eliminations
FY2012
29 Actual

-50.0

FY2013
Previous Outlook

FY2013
Current Outlook

H1 Previous Outlook

H1 H2 H2 Previous Current Actual Outlook Outlook

Net Sales Outlook by Business

Printing Systems Business Net Sales
700.0

(Billions of yen)

Half-Yearly Net Sales

282.0 293.1 314.0 324.8

538.1

596.0
3%

618.0 Scanners, Other

350.0

600.0

3% 18%

2%
500.0

Business Systems

300.0

18% 10%

18% 8% 8%
250.0

3% 20% 8%

2% 20% 8%

2% 17% 8%

3% 17% 8%

400.0

Page Printers

200.0

300.0

150.0

200.0

70%

71%

71%

Inkjet Printers
100.0

100.0

69%

70%

73%

72%

50.0

0.0

0.0

-100.0

-50.0

FY2012
30 Actual

FY2013
Previous Outlook

FY2013
Current Outlook

H1 Previous Outlook

H1 H2 H2 Actual Previous Current Outlook Outlook

Net Sales Outlook by Business

Net Sales
200.0

Devices & Precision Products Segment

(Billions of yen)

Half-Yearly Net Sales

76.0 76.7 70.0 69.2

140.7

146.0

146.0

Precision Products
150.0

51.3 100.0

57.0

58.0

Y/Y +6.6 Vs. previous +1.0

80.0

31.0

31.4 26.0 26.5

Microdevices
50.0 93.3 94.0 93.0
30.0

Y/Y Vs. previous

-0.3 -1.0

48.0

48.0

46.0

44.9

0.0

-3.9

-5.0

-5.0

Eliminations, Other
-50.0
-20.0

-3.0

-2.6

-2.0

-2.3

FY2012
31 Actual

Previous Outlook

FY2013

Current Outlook

FY2013

H1 Previous Outlook

H1 H2 H2 Previous Current Actual Outlook Outlook

Net Sales Outlook by Business

Microdevices Business Net Sales
120.0

(Billions of yen)

Half-Yearly Net Sales

48.0
60.0

93.3

94.0

93.0

48.0

46.0

44.9

100.0

Semiconductors
80.0

50.0

35%

34%

36%

40.0

35%
60.0
30.0

37%

33%

34%

40.0

65%
20.0

66%

64%

Quartz Devices

20.0

65%
10.0

63%

67%

66%

0.0

0.0

-20.0

-10.0

FY2012
32 Actual

FY2013
Previous Outlook

FY2013
Current Outlook

H1 Previous Outlook

H1 H2 H2 Previous Current Actual Outlook Outlook

FY2013 Financial Outlook (Operating Income)

By business segment Operating income
21.2
110.0 0.0 10.0 90.0 0.0 10.0

(Billions of yen)
Other

Half-Yearly Operating Income

37.0

58.0

13.0
60.0

34.0

24.0

24.0

Devices & Precision Products

Y/Y Vs. previous +1.3 0.0

7.7

0.0 3.0

0.1 2.2

70.0 0.2 8.6 50.0 76.0 30.0 51.7 95.0

Information Equipment
Y/Y Vs. previous +43.2 +19.0

40.0 0.0 7.0 45.6 20.0 28.0 48.0 49.4

Sensing & Industrial Solutions Y/Y Vs. previous -0.3 -1.0

0.0 -5.0
0.0

10.0 -9.6 -0.1 -9.0 0.0 -10.0 0.0

-4.8 -0.1 0.0

-4.0

0.0

-5.1
0.0

-10.0

-29.6
-30.0

-40.0
FY2013
Previous Outlook

-37.0
FY2013
Current Outlook

Corporate
-20.0

-17.0
H1 Previous Outlook

-14.3

-23.0

-22.6

FY2012
33 Actual

H1 H2 H2 Actual Previous Current Outlook Outlook

Outlook for Capital Expenditure, and Depreciation and Amortization

(Billions of yen)

Capital expenditures Depreciation and amortization

50.0 25.9

47.3 41.1 31.8 38.9 37.6

43.1

39.3

44.0 44.0

0.0
FY2009 FY2010 FY2011 FY2012

Actual

Outlook

FY2013

Breakdown by segment Information Equipment Devices & Precision Products Sensing & Industrial Solutions Other/Corporate

FY2012 Actual
Cap. Ex. D&A

FY2013 Outlook
Cap. Ex. D&A

33.4 6.7 0.5 2.4

26.3 8.0 0.5 4.3

30.0 11.0 1.0 2.0

31.0 9.0 1.0 3.0

34

Free Cash Flow Outlook

(Billions of yen)
100.0

Cash flow from operating activities Cash flow from investing activities Free cash flow

82.0

56.5 42.9 32.3 13.3

0.0

40.0

26.6 3.4 -4.8

8.7

-23.6 -31.5 -43.2 -39.5 -42.0

-100.0 FY2009 FY2010 FY2011 FY2012 Actual FY2013 Outlook

35

Main Management Indicators

(%)

13.1
12.0

7.0

7.1 3.7 3.7 6.0 2.5 3.4 2.0 2.8 2.3

3.5

2.0

1.8 1.6

-3.0
ROA: Ordinary income/total assets (avg. balance) ROS: Operating income/net sales ROE: Net income/shareholders' equity (avg. balance)

-4.0

-8.0

-6.8
FY2009 FY2010 FY2011 FY2012

36

Actual

Outlook

FY2013