Interim report
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Note : This document has been translated from the Japanese original for reference purposes only . In the event of any discrepancy between this translated document and the Japanese original , the original shall prevail . EPSON Financial Results for the Three Months ended June 30 , 2026 [ IFRS ] ( Consolidated ) Accounting Standards Fo FASF MEMBERSHIP Name of the listed company : SEIKO EPSON CORPORATION Code : 6724 URL : https://corporate.epson/en/investors/ Representative : Junkichi Yoshida , President Inquiries : Osamu Shigemura , General Administrative Manager , Business Management & DX Division Tel : + 81-266-52-3131 Scheduled starting date of payment for the dividends : - Reference materials regarding financial results for the period : Yes Briefing on financial results : Yes ( for analysts ) August 5 , 2026 Stock Listing : TOKYO ( Amounts are rounded down to the nearest million yen ) 1. Results for the Three months ended June 30 , 2026 ( From April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results Revenue Business profit Profit from operating activities Profit before tax Profit for the period % Millions of yen Millions of yen % Millions of yen Three months ended 367,241 14.4 22,122 12.0 20,601 % Millions of yen 45.7 20,726 % Millions of yen 60.4 % ( % : Change from the same period previous year ) Profit for the period attributable to owners of the parent company Millions of yen % 12,982 96.3 12,984 96.4 June 30 , 2026 Three months ended 320,879 ( 4.7 ) 19,755 ( 15.9 ) 14,136 ( 37.1 ) 12,918 ( 52.0 ) 6,613 ( 65.5 ) 6,612 ( 65.5 ) June 30 , 2025 Note : Total comprehensive income for the period : Three months ended June 30 , 2026 ¥ 23,595 million [ - % ] Three months ended June 30 , 2025 ( ¥ 3,624 ) million [ - % ] Business profit is calculated by subtracting Cost of sales and Selling , general and administrative expenses from Revenue . Diluted earnings Three months ended June 30 , 2026 Three months ended June 30 , 2025 ( 2 ) Consolidated Financial Position As of June 30 , 2026 As of March 31 , 2026 2. Cash Dividends Basic earnings per share per share Yen Yen 40.52 20.64 Total assets Millions of yen 1,580,342 1,534,870 Total equity Millions of yen 865,427 853,648 Equity attributable to owners of the parent company Millions of yen 865,284 853,503 Equity attributable to owners of the parent company ratio % 54.8 55.6 1st Quarter 2nd Quarter Yen Year ended March 31 , 2026 Yen 37.00 Year ending March 31 , 2027 Year ending March 31 , 2027 ( Forecast ) 40.00 Note : Changes from the latest announced forecasts : None Cash dividends per share 3rd Quarter Year End Year Total Yen Yen 37.00 Yen 74.00 40.00 80.00 3. Forecast for the Fiscal Year ending March 31 , 2027 ( From April 1 , 2026 to March 31 , 2027 ) Revenue Profit from operating activities ( % : Change from the previous year ) Profit for the period attributable to owners of the parent company Basic earnings per share Business profit Profit before tax Profit for the period Millions of yen For the year ending 1,510,000 6.8 % Millions of yen 105,000 25.3 % Millions of yen 101,000 103.8 % Millions of yen 99,000 % Millions of yen % Millions of yen % Yen 97.9 69,000 279.0 69,000 279.1 215.34 March 31 , 2027 Note : Changes from the latest announced forecasts : Yes
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※Notes (1) Significant changes in the scope of consolidation during the period: None ( 2) Changes in accounting policies, or changes in accounting estimates 1. Changes in accounting policies required by IFRS: None 2. Changes in accounting policies other than the changes above: None 3. Changes in accounting estimates: None ( 3) Number of shares outstanding (share) 1. Issued shares (including treasury shares) As of June 30, 2026 373,573,152 As of March 31, 2026 373,573,152 2. Treasury shares As of June 30, 2026 53,145,527 As of March 31, 2026 53,145,401 3. Average number of shares Three months ended June 30, 2026 320,427,669 Three months ended June 30, 2025 320,343,806 ※Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: None ※Explanation of appropriate use of forecast and other special items (Cautionary statement concerning forward-looking statements) This report includes forward-looking statements that are based on management’s view from the information available at the time of the announcement. These statements are subject to various risks and uncertainties. Actual results may be materially different from those discussed in the forward-looking statements. The factors that may affect Epson include, but are not limited to, general economic conditions, the ability of Epson to continue to timely introduce new products and services in markets, consumption trends, competition, technology trends, and exchange rate fluctuations. Assumptions for the forecasts and warnings for users of the forecasts are available on “Qualitative Information Regarding the Consolidated Financial Outlook.” ( How to access supplementary explanations and details of briefing on financial results) The Company is scheduled to hold a briefing for analysts on financial results on Wednesday , August 5, 2026 and to post materials used at the briefing on the Company’s website on that day. U .S. dollar amounts are presented for the convenience of the readers. This translation should not be construed to imply that the yen amounts actually represent, or have been or could be converted into, equivalent amounts in U.S. dollars. The exchange rate of ¥162.125 = U.S.$1 at the end of the reporting period has been used for the purpose of presentation.
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Table of Contents – Attachments 1. Overview of Operating Results, etc. --------------------------------------------------------- 2 Operating Results Overview -------------------------------------------------------------- 2 Financial Position Overview -------------------------------------------------------------- 4 Qualitative Information Regarding the Consolidated Financial Outlook---------------------- 4 2. Quarterly Condensed Consolidated Financial Statements and Primary Notes------------------- 5 Quarterly Condensed Consolidated Statement of Financial Position ------------------------- 5 Quarterly Condensed Consolidated Statement of Comprehensive Income-------------------- 7 Quarterly Condensed Consolidated Statement of Changes in Equity------------------------- 9 Quarterly Condensed Consolidated Statement of Cash Flows ------------------------------- 11 Notes to Quarterly Condensed Consolidated Financial Statements --------------------------- 12 (Basis of Preparation) ------------------------------------------------------------------ 12 (Segment Information) ----------------------------------------------------------------- 12 (Going Concern Assumption) ---------------------------------------------------------- 15 (Contingencies) ------------------------------------------------------------------------ 15 (Subsequent Events) ------------------------------------------------------------------- 15 (Additional Information) ---------------------------------------------------------------- 15 1 1 1
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1. Overview of Operating Results, etc. Operating Results Overview During the first quarter of the fiscal year, the global economy remained subject to significant uncertainty. While AI-related demand and increased exports supported production activities in certain countries and regions, rising geopolitical risks and concerns over resource and energy prices stemming from heightened tensions in the Middle East continued to weigh on the economic outlook. In terms of regional t rends, the domestic Japanese economy continued to gradually recover. The U.S. economy was supported by solid consumer spending and investment, particularly in AI -related sectors. In Europe, economic growth continued to slow amid the ongoing impact of inflation. In China, the pace of economic recovery showed signs of moderating, but the economy remained generally stable, supported by exports and production activities, particularly in the high-tech sector. Against this backdrop, Epson posted revenue of ¥367.2 billion, up 14.4% from the prior-year period. Business profit was ¥ 22.1 billion, up 12.0% from the prior -year period, primarily reflecting higher revenue and positive foreign exchange effects. Profit from operating activities was ¥20.6 billion, up 45.7% from the prior-year period. Profit before tax was ¥20.7 billion, up 60.4% from the prior-year period. Profit for the period attributable to owners of the parent company was ¥13.0 billion, up 96.4% from the prior-year period. The average exchange rates of the yen against the U.S. dollar and of the yen against the euro during the first quarter of the year were ¥159.38 and ¥185.33, respectively. This represents a 10% depreciation in the value of the yen against the dollar and a 13% depreciation in the value of the yen against the euro from the prior-year period. A breakdown of the financial results in each reporting segment is provided below. Effective from the current fiscal year, Epson has changed its reportable segment classifications in line with its new long- term vision, ENGINEERED FUTURE 2035. The Company no w reports results under four segments: Precision Innovation, Industrial & Robotics, Office & Home Printing, and Visual & Lifestyle. These reportable segments correspond to the segment classifications presented in “2. Quarterly Condensed Consolidated Financial Statements and Primary Notes, Notes to Quarterly Condensed Consolidated Financial Statements.” Precision Innovation Segment Revenue in the Precision Innovation segment sharply increased, primarily due to revenue growth in the inkjet solutions business and microdevices business. The inkjet solutions business recorded sharply higher revenue this quarter than in the prior -year period, when orders temporarily declined. This revenue growth was driven primarily by the capture of customer contracts and progress in developing new customers. The microdevices business also recorded a sharp increase in revenue, reflecting continued growth in sales of crystal devices and a recovery in customer demand for semiconductors. Segment profit in Precision Innovation increased sharply, primarily driven by the increase in revenue. As a result of the foregoing factors, revenue in the Precision Innovation segment was ¥49.8 billion, up 23.5% from the prior-year period. Segment profit was ¥15.5 billion, up 62.1% from the prior-year period. Industrial & Robotics Segment Revenue in the Industrial & Robotics segment increased sharply, chiefly due to revenue growth in the commercial and industrial printing business, in addition to positive foreign exchange effects. The commercial and industrial printing business recorded a sharp increase in revenue, driven by favorable foreign exch ange effects and strong sales of certain finished products. 2
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Robotics business revenue grew primarily by capturing demand in China and other parts of Asia. Segment profit in Industrial & Robotics increased on higher revenue and foreign exchange effects. As a result of the foregoing factors, revenue in the Industrial & Robotics segment was ¥82.0 billion, up 17.9% from the prior-year period. Segment profit was ¥5.5 billion, up 44.1% from the prior-year period. Office & Home Printing Segment Revenue in the Office & Home Printing segment rose on increased sales particularly of SOHO and home inkjet printers. SOHO and home inkjet printer revenue grew primarily owing to a combination of positive foreign exchange effects and increased sales of high -capacity ink tank printers. Unit sales of printers were in line with the previous year, supported by steady sales of both ink cartridge models and high- capacity ink tank models. Revenue from consumables increased for both ink cartridges and ink bottles used in high-capacity ink tank models. Office shared inkjet printer revenue increased sharply, driven by favorable foreign exchange effects and higher sales of both hardware and consumables. Segment profit in Office & Home Printing decreased sharply, as the positive effects of revenue growth and foreign exchange were more than offset by higher costs associated with rising crude oil prices. As a result of the foregoing factors, revenue in the Office & Home Printing segment was ¥167.0 billion, up 12.3% from the prior-year period. Segment profit was ¥11.4 billion, down 21.7% from the prior-year period. Visual & Lifestyle Segment Visual & Lifestyle segment revenue increased. Revenue in the visual products business increased, supported by favorable foreign exchange effects and higher sales in South America and Europe associated with demand related to the FIFA World Cup. Revenue in the wearable products business increased sharply, driven by continued strong demand for watch movements and solid demand from visitors to Japan. Segment profit in Visual & Lifestyle decreased sharply, primarily because the positive effects of revenue growth and foreign exchange were more than offset by higher costs associated with rising crude oil prices. As a result of the foregoing factors, revenue in the Visual & Lifestyle segment was ¥67.2 billion, up 7.2% from the prior-year period. Segment profit was ¥4.2 billion, down 30.1% from the prior-year period. Adjustments Adjustments to the total profit of reporting segments amounted to negative ¥14.5 billion. (Adjustments in the prior- year period were negative ¥14.3 billion.) The main components of the adjustment were basic technology research and development expenses that do not correspond to the reporting segments, and revenue and expenses associated with things such as new businesses and corporate functions. 3
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Financial Position Overview Total assets at the end of the first quarter were ¥1,580.3 billion, up ¥45.5 billion from the previous fiscal year end. This increase is mainly attributable to increases in cash and cash equivalents, as well as other current assets. Total liabilities were ¥714.9 billion, up ¥33.7 billion from the previous fiscal year end. This increase was mainly due to an increase in bonds issued, borrowings and lease liabilities. Equity attributable to owners of the parent company was ¥865.3 billion, up ¥11.8 billion compared to the end of the prior fiscal year. While dividends were paid, this increase was mainly due to the recording of ¥13.0 billion in quarterly profit for the period attributable to owners of the parent company and other comprehensive income, the primary component of which was exchange differences on translation of foreign operations. Qualitative Information Regarding the Consolidated Financial Outlook The financial outlook for the 2026 fiscal year ending March 31, 2027, is summarized below. Epson has revised its previous full-year consolidated revenue outlook upward to reflect favorable foreign exchange effects resulting from the recent depreciation of the yen. The business profit outlook has been revised upward to reflect a one-time increase resulting from U.S. tariff refunds, as well as favorable foreign exchange effects. We have also raised the outlook for profit from operating activities and each level of profit thereafter, reflecting the upward revision to business profit, the changing exchange rates, and the latest outlook. The figures in the outlook are based on assumed exchange rates from the second quarter of ¥155.00 to the U.S. dollar and ¥176.00 to the euro. For details, please see the fiscal year 2026 (ending March 2027) first-quarter financial results presentation that was announced simultaneously with this report. Consolidated Full-Year Financial Outlook FY2025 Previous Outlook (A) Current Outlook (B) Change (B-A) Revenue ¥1,413.3 billion ¥1, 450.0 billion ¥1,510.0 billion +¥60. 0 billion (+4.1%) Business profit ¥83.8 billion ¥9 0.0 billion ¥105.0 billion +¥15. 0 billion (+16.7%) Profit from operating activities ¥49.6 billion ¥8 6.0 billion ¥101.0 billion +¥15. 0 billion (+17.4%) Profit before tax ¥50.0 billion ¥8 4.0 billion ¥99.0 billion +¥15. 0 billion (+17.9%) Profit for the period ¥18.2 billion ¥5 9.0 billion ¥69.0 billion +¥10 .0 billion (+16.9%) Profit for the period attributable to owners of the parent company ¥18.2 billion ¥5 9.0 billion ¥69.0 billion +¥10 .0 billion (+16.9%) Exchange rates 1 USD = ¥150.69 1 USD = ¥151.00 1 USD = ¥156.00 1 EUR = ¥174.74 1 EUR = ¥175.00 1 EUR = ¥178.00 4
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2. Quarterly Condensed Consolidated Financial Statements and Primary Notes Quarterl y Condensed Consolidated Statement of Financial Position Thousands of U.S. dollars March 31, 2026 June 30, 2026 June 30, 2026 Assets Current assets Cash and cash equivalents 288,582 316,864 1,954,442 Trade and other receivables 241,037 241,572 1,490,035 Inventories 394,733 393,195 2,425,258 Income tax receivables 15,095 15,389 94,920 Other financial assets 6,479 6,495 40,061 Other current assets 22,005 29,216 180,206 Total current assets 967,933 1,002,733 6,184,937 Non-current assets Property, plant and equipment 392,795 390,351 2,407,716 Goodwill and intangible assets 100,371 100,794 621,705 Investment property 831 831 5,125 Investments accounted for using equity method 2,415 2,469 15,228 Retirement benefit assets 331 322 1,986 Other financial assets 28,859 34,963 215,654 Other non-current assets 5,736 8,503 52,447 Deferred tax assets 35,596 39,372 242,849 Total non-current assets 566,937 577,609 3,562,738 Total assets 1,534,870 1,580,342 9,747,676 Millions of yen 5 5 5
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Thousands of U.S. dollars March 31, 2026 June 30, 2026 June 30, 2026 Liabilities and equity Liabilities Current liabilities Trade and other payables 164,478 169,200 1,043,639 Income tax payables 7,054 12,165 75,034 Bonds issued, borrowings and lease liabilities 68,087 104,289 643,262 Other financial liabilities 2,332 2,191 13,514 Provisions 17,808 18,541 114,362 Other current liabilities 187,427 172,839 1,066,084 Total current liabilities 447,189 479,227 2,955,910 Non-current liabilities Bonds issued, borrowings and lease liabilities 163,371 165,754 1,022,383 Other financial liabilities 5,430 5,851 36,089 Retirement benefit liabilities 16,530 16,247 100,212 Provisions 9,592 9,664 59,608 Other non-current liabilities 24,138 23,996 148,009 Deferred tax liabilities 14,967 14,172 87,414 Total non-current liabilities 234,032 235,687 1,453,736 Total liabilities 681,222 714,914 4,409,646 Equity Share capital 53,204 53,204 328,166 Capital surplus 83,949 83,990 518,057 Treasury shares (70,150) (70,150) (432,690) Other components of equity 216,593 226,627 1,397,853 Retained earnings 569,907 571,614 3,525,760 Equity attributable to owners of the parent company 853,503 865,284 5,337,141 Non-controlling interests 144 142 875 Total equity 853,648 865,427 5,338,023 Total liabilities and equity 1,534,870 1,580,342 9,747,676 Millions of yen 6 6 6
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Quarterly Condensed Consolidated Statement of Comprehensive Income Three months ended June 30, 2025 and 2026 Thousands of U.S. dollars 2025 2026 Revenue 320,879 367,241 2,265,171 Cost of sales (204,555) (239,567) (1,477,668) Gross profit 116,324 127,674 787,503 Selling, general and administrative expenses (96,569) (105,551) (651,047) Other operating income 1,329 5,098 31,444 Other operating expense (6,947) (6,619) (40,826) Profit from operating activities 14,136 20,601 127,068 Finance income 1,376 1,366 8,425 Finance costs (2,582) (1,237) (7,629) Share of profit (loss) of investments accounted for using equity method (12) (4) (24) Profit before tax 12,918 20,726 127,839 Income taxes (6,304) (7,743) (47,759) Profit for the period 6,613 12,982 80,074 Profit for the period attributable to: Owners of the parent company 6,612 12,984 80,086 Non-controlling interests 1 (1) (6) Profit for the period 6,613 12,982 80,074 Millions of yen Three months ended June 30, Three months ended June 30, 2026 7 7 7
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Thousands of U.S. dollars 2025 2026 Other comprehensive income Items that will not be reclassified subsequently to profit or loss, net of tax Remeasurements of defined benefit plans 917 578 3,565 Net gain (loss) on revaluation of financial assets measured at FVTOCI (Note) 81 1,679 10,356 Subtotal 999 2,258 13,927 Items that may be reclassified subsequently to profit or loss, net of tax Exchange differences on translation of foreign operations (8,333) 8,931 55,087 Net changes in fair value of cash flow hedges (2,887) (605) (3,731) Share of other comprehensive income of investments accounted for using equity method (16) 28 172 Subtotal (11,237) 8,354 51,528 Total other comprehensive income, net of tax (10,237) 10,613 65,461 Total comprehensive income for the period (3,624) 23,595 145,535 Total comprehensive income for the period attributable to: Owners of the parent company (3,623) 23,596 145,542 Non-controlling interests (1) (1) (6) Total comprehensive income for the period (3,624) 23,595 145,535 (Note) FVTOCI: Fair Value Through Other Comprehensive Income U.S. dollars 2025 2026 Earnings per share for the period: Basic earnings per share for the period 20.64 40.52 0.25 Diluted earnings per share for the period - - - Millions of yen Three months ended June 30, Three months ended June 30, 2026 Yen Three months ended June 30, Three months ended June 30, 2026 8 8 8
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Quarterly Condensed Consolidated Statement of Changes in Equity Three months ended June 30, 2025 and 2026 Remeasurements of defined benefit plans Net gain (loss) on revaluation of financial assets measured at FVTOCI (Note) Exchange differences on translation of foreign operations Net changes in fair value of cash flow hedges Total other components of equity As of April 1, 2025 53,204 83,904 (70,260) - 5,368 160,122 (296) 165,194 572,710 804,752 139 804,891 Profit for the period - - - - - - - - 6,612 6,612 1 6,613 Other comprehensive income - - - 917 81 (8,347) (2,887) (10,235) - (10,235) (2) (10,237) Total comprehensive income for the period - - - 917 81 (8,347) (2,887) (10,235) 6,612 (3,623) (1) (3,624) Acquisition of treasury shares - - (0) - - - - - - (0) - (0) Dividends - - - - - - - - (11,852) (11,852) (0) (11,853) Share-based payment transactions - 39 - - - - - - - 39 - 39 Transfer from other components of equity to retained earnings - - - (917) - - - (917) 917 - - - Total transactions with the owners - 39 (0) (917) - - - (917) (10,934) (11,813) (0) (11,814) As of June 30, 2025 53,204 83,943 (70,260) - 5,450 151,775 (3,184) 154,041 568,387 789,315 137 789,452 (Note) FVTOCI: Fair Value Through Other Comprehensive Income Millions of yen Equity attributable to owners of the parent company Non-controlling interests Total equity Share capital Capital surplus Treasury shares Other components of equity Retained earnings Total equity attributable to owners of the parent company 9 9 9
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Remeasurements of defined benefit plans Net gain (loss) on revaluation of financial a ssets measured at FVTOCI (Note) Exchange differences on translat ion of foreign operations Net changes in fair value of cash flow hedges Total other components of equity As of April 1, 2026 53,204 83,949 (70,150) - 7,730 208,792 69 216,593 569,907 853,503 144 853,648 Profit for the period - - - - - - - - 12,984 12,984 (1) 12,982 Other comprehensive income - - - 578 1,679 8,959 (605) 10,612 - 10,612 0 10,613 Total comprehensive income for the period - - - 578 1,679 8,959 (605) 10,612 12,984 23,596 (1) 23,595 Acquisition of treasury shares - - (0) - - - - - - (0) - (0) Dividends - - - - - - - - (11,855) (11,855) (0) (11,856) Share-based payment transactions - 40 - - - - - - - 40 - 40 Transfer from other components of equity to retained earnings - - - (578) - - - (578) 578 - - - Total transactions with the owners - 40 (0) (578) - - - (578) (11,277) (11,815) (0) ( 11,816) As of June 30, 2026 53,204 83,990 (70,150) - 9,410 217,752 (535) 226,627 571,614 865,284 142 865,427 (Note) FVTOCI: Fair Value Through Other Comprehensive Income Remeasurements of defined benefit plans Net gain (loss) on revaluation of financial as sets measured at FVTOCI (Note) Exchange differences on translat ion of foreign operations Net changes in fair value of cash flow hedges Total other components of equity As of April 1, 2026 328,166 517,804 (432,690) - 47,679 1,287,845 425 1,335,962 3,515,232 5,264,474 888 5,265,369 Profit for the period - - - - - - - - 80,086 80,086 (6) 80,074 Other comprehensive income - - - 3,565 10,356 55,259 (3,731) 65,455 - 65,455 0 65,461 Total comprehensive income for the period - - - 3,565 10,356 55,259 (3,731) 65,455 80,086 145,542 (6) 145,535 Acquisition of treasury shares - - (0) - - - - - - (0) - (0) Dividends - - - - - - - - (73,122) (73,122) (0) (73,128) Share-based payment transactions - 246 - - - - - - - 246 - 246 Transfer from other components of equity to retained earnings - - - (3,565) - - - (3,565) 3,565 - - - Total transactions with the owners - 246 (0) (3,565) - - - (3,565) (69,557) (72,875) (0) ( 72,882) As of June 30, 2026 328,166 518,057 (432,690) - 58,041 1,343,111 (3,299) 1,397,853 3,525,760 5,337,141 875 5,338,023 (Note) FVTOCI: Fair Value Through Other Comprehensive Income Thousands of U.S. dollars Equity attributable to owners of the parent company Non-controlling interests Total equityShare capital Capital surplus Treasury shares Other components of equity Retained earnings Total equity attributable to owners of the pa rent company Millions of yen Equity attributable to owners of the parent company Non-controlling interests Total equityShare capital Capital surplus Treasury shares Other components of equity Retained earnings Total equity attributable to owners of the pa rent company 10 10 10
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Quarterly Condensed Consolidated Statement of Cash Flows Three months ended June 30, 2025 and 2026 Thousands of U.S. dollars Three months ended June 30, 2025 2026 2026 Cash flows from operating activities Profit for the period 6,613 12,982 80,074 Depreciation and amortization 18,959 19,577 120,752 Impairment loss (reversal of impairment loss) 390 73 450 Finance (income) costs 1,206 (129) (795) Share of (profit) loss of investments accounted for using equity method 12 4 24 Loss (gain) on sale and disposal of property, plant and equipment, intangible assets and investment property 183 199 1,227 Income taxes 6,304 7,743 47,759 Decrease (increase) in trade receivables 5,807 7,376 45,495 Decrease (increase) in inventories (11,617) 5,928 36,564 Increase (decrease) in trade payables 4,344 5,822 35,910 Increase (decrease) in retirement benefit liabilities 348 (462) (2,849) Other (14,023) (31,453) (194,004) Subtotal 18,529 27,664 170,633 Interest and dividends income received 1,476 1,503 9,270 Interest expenses paid (503) (923) (5,693) Income taxes paid (16,267) (8,296) (51,170) Net cash from (used in) operating activities 3,235 19,947 123,034 Cash flows from investing activities Purchase of investment securities - (315) (1,942) Proceeds from sale of investment securities 0 - - Purchase of property, plant and equipment (16,342) (12,759) (78,698) Proceeds from sale of property, plant and equipment 113 139 857 Purchase of intangible assets (1,291) (3,157) (19,472) Proceeds from sale of investment property 105 - - Otherb (4,740) 220 1,356 Net cash from (used in) investing activities (22,155) (15,872) (97,899) Cash flows from financing activities Net increase (decrease) in current borrowings 19 36,032 222,248 Proceeds from non-current borrowings 30,000 - - Repayment of non-current borrowings (30,000) - - P ayment of lease liabilities (2,629) (3,258) (20,095) Dividends paid (11,852) (11,855) (73,122) Purchase of treasury shares (0) (0) (0) Net cash from (used in) financing activities (14,462) 20,917 129,017 Effect of exchange rate changes on cash and cash equivalents (3,723) 3,290 20,292 Net increase (decrease) in cash and cash equivalents (37,106) 28,282 174,445 Cash and cash equivalents at beginning of period 267,000 288,582 1,779,996 Cash and cash equivalents at end of period 229,894 316,864 1,954,442 Millions of yen Three months ended June 30, 11 11 11
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Notes to Quarterly Condensed Consolidated Financial Statements (Basis of Preparation) The Company and its affiliates (“Epson”) prepare its quarterly condensed consolidated financial statements in compliance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements, etc. (applying the omission of the description specified in Article 5, Paragraph 5 of the same standard) issued by Tokyo Stock Exchange, Inc. and omit some disclosure items required by International Accounting Standards (IAS) 34 “Interim Financial Reporting.” (Segme nt Information) (1) Outline of Reportable Segments The reportable segments of Epson are determined based on the operating segments that are components of Epson for which discrete financial information is available and whose operating results are regularly reviewed by the Board of Directors in deciding how to allocate resources and in assessing performance. From the beginning of the current fiscal year, Epson changed its organizational structure and the reportable segments into four segments: “Precision Innovation”, “ Industrial & Robotics ”, “Office & Home Printing ” and “ Visual & Lifestyle.” They are determined by types of products, nature of products, and markets. Segment information for the t hree months ended June 30, 202 5 has been reclassified based on new reportable segments. Epson conducts development, manufacturing and sales within its reportable segments as follows: Report able segments Main products Precision Innovation ・Inkjet printheads ・Quartz crystal devices, semiconductors ・Metal powders Industrial & Robotics ・Commercial and industrial inkjet printers, label printers, printers for use in POS systems, serial impact dot matrix printers, dry process office papermaking systems, printer consumables, digital printing software solutions ・Industrial robots Office & Home Printing ・Office/ Home inkjet printers, printer consumables, color image scanners Visual & Lifestyle ・3LCD projectors ・Wristwatches, watch movements ・PCs 12 12 12
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(2) Revenues and Performances of Reportable Segments Revenues and performances of reportable segments are as follows. Transfer prices between the segments are based on prevailing market prices. FY2025: Three Months ended June 30, 2025 Millions of yen Reportable segments Adjustments (Note 2) Consolidated Precision Innovation Industrial & Robotics Office & Home Printing Visual & Lifestyle Subtotal Revenue External revenues 37,378 69,522 148,780 62,551 318,233 2,646 320,879 Intersegment revenues 2,955 42 8 112 3,118 (3,118) - Total revenue 40,333 69,565 148,789 62,664 321,352 (472) 320,879 Segment profit (loss) (Business profit) (Note 1) 9,580 3,791 14,614 6,018 34,005 (14,250) 19,755 Other operating income (expense) (5,618) Profit from operating activities 14,136 Finance income (costs) (1,206) Share of profit (loss) of investments accounted for using equity method (12) Profit before tax 12,918 (Note 1) Segment profit (loss) (Business profit) is calculated by subtracting Cost of sales and Selling, general and administrative expenses from Revenue. (Note 2) “Adjustments” of (¥14,250) million in Segment profit (loss) (Business profit) comprises ¥62 million in eliminated intersegment transactions and (¥14,313 ) million in Corporate and Other . Corporate and Other mainly includes expenses related to research and development for basic technology, as well as revenues and expenses related to new businesses and general corporate functions that are not attributed to reportable segments. 13 13 13
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FY2026: Three Months ended June 30, 2026 Millions of yen Reportable segments Adjustments (Note 2) Consolidated Precision Innovation Industrial & Robotics Office & Home Printing Visual & Lifestyle Subtotal Revenue External revenues 48,161 81,906 167,017 67,121 364,208 3,033 367,241 Intersegment revenues 1,631 87 11 83 1,813 (1,813) - Total revenue 49,793 81,994 167,028 67,204 366,021 1,220 367,241 Segment profit (loss) (Business profit) (Note 1) 15,533 5,465 11,449 4,204 36,653 (14,530) 22,122 Other operating income (expense) (1,520) Profit from operating activities 20,601 Finance income (costs) 129 Share of profit (loss) of investments accounted for using equity method (4) Profit before tax 20,726 (Note 1) Segment profit (loss) (Business profit) is calculated by subtracting Cost of sales and Selling, general and administrative expenses from Revenue. (Note 2) “Adjustments” of (¥14,530) million in Segment profit (loss) (Business profit) comprises ¥86 million in eliminated intersegment transactions and (¥14,617 ) million in Corporate and Other . Corporate and Other mainly includes expenses related to research and development for basic technology, as well as revenues and expenses related to new businesses and general corporate functions that are not attributed to reportable segments. FY2026: Three Months ended June 30, 2026 Thousands of U.S. dollars Reportable segments Adjustments (Note 2) Consolidated Precision Innovation Industrial &Robotics Office & Home Printing Visual & Lifestyle Subtotal Revenue External revenues 297,060 505,202 1,030,174 414,007 2,246,464 18,707 2,265,171 Intersegment revenues 10,060 536 67 511 11,182 (11,182) - Total revenue 307,127 505,745 1,030,242 414,519 2,257,646 7,525 2,265,171 Segment profit (loss) (Business profit) (Note 1) 95,808 33,708 70,618 25,930 226,078 (89,622) 136,450 Other operating income (expense) (9,375) Profit from operating activities 127,068 Finance income (costs) 795 Share of profit (loss) of investments accounted for using equity method (24) Profit before tax 127,839 (Note 1) Segment profit (loss) (Business profit) is calculated by subtracting Cost of sales and Selling, general and administrative expenses from Revenue. (Note 2) “Adjustments” of ($89,622) thousand in Segment profit (loss) (Business profit) comprises $530 thousand in eliminated intersegment transactions and ($90,158) thousand in Corporate and Other. Corporate and Other mainly includes expenses related to research and development for basic technology, as well as revenues and expenses related to new businesses and general corporate functions that are not attributed to reportable segments. 14 14 14
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(Going Concern Assumption) Not applicable. (Contingencies) Material litigation In general, litigation has uncertainties and it is difficult to make a reliable estimate of financial effect of the possibility of an outflow of resources embodying economic benefits. Epson does not recognize provisions when either an outflow of resources embodying economic benefits is not probable or an estimate of financial effect is not practicable. Epson has the following material action. The civil action on copyright fee of ink-jet printers In June 2010, Epson Europe B.V. (“EEB”), a consolidated subsidiary of the Company, brought a civil suit against La SCRL Reprobel (“Reprobel”), a Belgium -based group that collects copyright royalties, seeking restitution for copyright royalties for multifunction printers. After that, Reprobel also brought a civil suit against EEB. As a result, these two lawsuits were adjoined. EEB’s claims were rejected at the first trial, but EEB, dissatisfied with the decision, intends to appeal. (Subse quent Events) Share Repurchase The Company resolved at the meeting of its Board of Directors held on August 5, 2026 on a share repurchase (“this share repurchase”) pursuant to Article 156 of the Companies Act of Japan as applied pursuant to Article 165, Paragraph 3 of the same act. (1) Purpos e of this share repurchase To improve capital efficiency and to enhance shareholder returns (2) Deta ils of this share repurchase a. Class of shares to be repurchased Ordinary shares b. Total number of shares to be repurchased 17,000,000 shares (maximum) (5.31% of outstanding shares, excluding treasury shares) c. Total repurchase amount 30 billion yen (maximum) d. Repurchase period August 7, 2026, to March 31, 2027 e. Repurchase method Purchase on the Tokyo Stock Exchange (by securities company using discretionary method) The C ompany plans to cancel all the treasury shares to be acquired as part of this share repurchase. (Additio nal Information) Commencement of Refund Procedures for U.S. Tariffs Following the U.S. Supreme Court’s ruling that tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) were invalid, U.S. Customs and Border Protection (“CBP”) commenced operation of Phase 2 of the Consolidated Administration and Processing of Entries (“CAPE”), an integrated customs management and processing system for handling refund claims related to such tariffs, on June 29, 2026. Some of the subsidiaries located in the U.S. initiated procedures to claim refunds of such tariffs totaling $109 million (approximately ￥17.7 billion) in June 2026. The procedures are ongoing, and the final amount eligible for refund and the timing of any such refund have not yet been determined. 15 15 15