Epson 2013 Annual Report Download - page 21

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20
primarily a company that provides consumer imaging products into a company that once again posts strong
growth by creating and providing new information solutions and equipment for businesses and
professionals, as well as consumers.
The main extraordinary losses for the year under review included a ¥16,268 million ($172,971 thousand)
litigation loss resulting primarily from the payment of a settlement in a lawsuit involving allegations of
involvement in an LCD price-fixing cartel.
The average exchange rates of the yen against the U.S. dollar and of the yen against the euro during the
year under review were ¥83.11 and ¥107.14, respectively. This represents a 5% depreciation in the value of
the yen against the dollar and a 2% appreciation in the value of the yen against the euro, year-over-year.
As a result of the foregoing factors, net sales for the full fiscal year were ¥851,297 million ($9,051,536
thousand), down 3.0% from the prior year. Operating income was ¥21,255 million ($225,996 thousand),
down 13.7% from the prior year. Ordinary income was ¥17,629 million ($187,442 thousand), down 34.8%
from the prior year. And net loss was ¥10,091 million ($107,293 thousand), compared to net income of
¥5,032 million in the previous year.
A breakdown of the financial results in each reporting segment is provided below.
Information-Related Equipment Segment
The printer business as a whole reported a decline in net sales (including both printer units and
consumables).
In the inkjet printer business the average selling prices of inkjet models that use ink cartridges rose but
hardware unit shipments decreased, causing net sales in that category to decline. On the whole, however,
net sales in inkjet printer hardware grew thanks to unit shipment growth in high-capacity ink tank models.
Net sales of consumables for inkjet printers declined. Large-format printer (LFP) unit shipments declined in
the face of an ongoing slump in hardware demand in the printing industry, but new high-end products
bumped up average selling prices and, as a result, net sales. Even though shipments of LFP consumables
shrank in response to declining print volume in the printing industry, consumables net sales increased
thanks largely to the new LFPs in the high price zone, which helped increase average selling prices. Page
printer sales decreased primarily due to the effects of corporate cost cutting. Serial-impact dot-matrix
(SIDM) printer net sales decreased. In addition to erosion of average selling prices and lower unit volume
in China, where demand for SIDM printers used in tax collection systems was particularly robust in the
same period last year, net sales were also hurt by a decline in unit shipments in other parts of Asia and
Europe. POS systems product net sales grew. Although net sales were hurt by the effects of falling average
selling prices in the Americas and a decline in unit shipments in Europe, where customers were reluctant to
spend due to the slow economy, unit shipments increased on strong, steady demand from small- and
medium-sized retailers in the Americas and Southeast Asia. The printer business as a whole was affected
by the weaker yen.
Net sales in the visual products business increased.
The visual products business as a whole reported net sales growth thanks to an increase in 3LCD projector
unit shipments and foreign exchange effects.
Unit shipments of business 3LCD projectors increased in every region. Particularly large growth was seen
in entry-level and short-throw lens models. Home-theater 3LCD projector unit shipments also increased.
Demand in Europe was driven higher by major sporting events, while net sales benefited from an increase
in average selling prices due to strong sales of high-priced models such as full-HD (1080p) projectors.
Segment income in the information-related equipment segment declined. In addition to a decline in income
due to foreign exchange effects, segment income fell due to decreased income mainly from SIDM printers,
and POS systems products.
As a result of the foregoing factors, net sales in the information-related equipment segment were ¥688,029
million ($7,315,566 thousand), down 0.5% year over year, while segment income was ¥52,670 million
($560,032 thousand), down 18.8% year over year.