SEIKO EPSON CORPORATION (6724) Q1 2027 Earnings Call Transcript

Aug 5, 2026 Seiko Epson Corporation FY2026 First-Quarter Financial Results Presentation Q&A Q: When do you expect to recognize the approximately ¥17.0 billion refund of U.S. tariffs. Is this included in Q1 results? Also, could you provide a breakdown of the amount by segment? A: The approximately ¥17.0 billion refund is not included in Q1 results. We expect it to be recognized from Q2 onward. The approximate breakdown by segment is as follows:

• Office & Home Printing: 40%
• Industrial & Robotics: slightly over 30%
• Visual & Lifestyle: slightly over 20% Q: To what extent did U.S. tariff costs increase in Q1 compared with the same period last fiscal year? A: In Q1 of last fiscal year, we were still selling inventory that had not been subject to the additional tariffs, and the impact of U.S. tariffs on profit was approximately ¥2.0 billion. In Q1 of the current fiscal year, the impact was approximately ¥4.0 billion, representing an increase of around ¥2.0 billion year on year. Q: What factors contributed to the strong performance of Precision Innovation? A: In Inkjet Solutions, sales benefited from growth in emerging markets as well as from a recovery in the Chinese market. Furthermore, printheads are increasingly being used across a variety of applications beyond traditional commercial applications, resulting in an expanding customer base. In Microdevices, sales of crystal devices are growing as demand expands for network-related applications, as well as across a range of other fields. We will continue to respond to this demand by improving throughput and increasing production capacity. Q: Could you explain the supply issue that occurred in Office & Home Printing and its impact? A: In Q1, supply constraints primarily affected high-capacity ink tank printers due to procurement issues involving certain components. This was not attributable to global factors such as rising crude oil prices, but rather to an individual supply chain issue. The situation has now largely normalized. The impact on sales was limited, as sales company inventories were used to

address the shortage. However, there was a negative impact on profit, as inventory levels at sales companies declined significantly. From Q2 onward, we expect inventory levels at sales companies to gradually recover. Q: The full-year financial outlook shows that parts and transport costs are expected to increase by ¥38.0 billion compared to last fiscal year. Could you provide a breakdown of this amount? Also, how do you plan to respond to increases in crude oil and memory prices? A: The cost increase breakdown is as follows: ¥14.0 billion from crude oil prices, ¥22.0 billion from memory prices, ¥6.0 billion from precious metals, and ¥2.0 billion from other factors. Meanwhile, the impact of U.S. tariffs is expected to improve by ¥6.0 billion. We will continue to address the increase in memory prices through our own pricing measures.