Fiscal Year 212 (ending March 31, 213) First Half & Second Quarter Results (ended September 3, 212) Brother Industries, Ltd. November 2, 212 Information on this report, other than historical facts, refers to future prospects and performance, and has been prepared by our Management on the basis of information available at the time of the announcement. This covers various risks, including, but not limited to, economic conditions, customer demand, foreign currency exchange rates, tax rules, regulation and other factors. As a result, actual future performance may differ from any forecasts contained on this report.
Results for first half of FY212(ending March 31,213) 3, Current Profits Net Income Profits 4 1H 3/213 Actual (w/o forex impact)[1 Millions of Yen] Year-on-Year s 2,445 2,466-2 -.8% (+2.7%) 2, 3 196 26-64 -24.6% Current Profits 2 267-66 -24.8% 2 Net Income 148 136 +13 +9.5% 1, USD EUR 1H 3/212 [Actual] 79.73 114.9 1H 3/213 [Actual] 79.43 11.12 1 Despite the negative impact from forex and a sharp decrease in sales in industrial sewing machines due to market deterioration, overall sales have remained at the same level to the previous year with steady sales growth in machine tools and Online karaoke business. Operating income has decreased mainly due to the negative impact from forex. Net income increased due to a decrease of income tax caused by tax effect accounting. 212 Brother Industries, Ltd. All Rights Reserved. 2
New models released in the first half of FY212 <P&S/New Business> New models to support SOHO/SMB customers in their business scenes were launched Black & White Laser All in-one MFC-895DW Desktop Color Scanner ADS-25W Black & White Laser Printer HL-618DW Color Inkjet All-in-One MFC-J451N Mobile Scanner MDS-7D Web coference system Omnijoin Hi-Speed Inkjet Printer HL-S7DN High-speed print engine loaded, capable of printing up to 4 pages/min in black and white. Made a full model change of high end black and white All-in-Ones/laser printer Durability was increased from 2, to 3, pages Large reduction in standby power consumption Highest print speed in its class with a large size print head A slim body with 29mm depth able to print A3 sized paper Various services became available with cloud computing Adopted a new touch panel for ease of operation similar to a smartphone Expanded lineup of network scanners Enable direct access to cloud computing services without a computer (ADS-25W) High speed scanner 24 sheets/min, up to 5 sheets can be set in it s tray at once(ads-25w) Established Web conference with high quality image and sound developed using Brother s own unique technology Interface designed to be intuitive and easy to use No initial capital cost required. Available at low cost A compact body easily fits into the desk space. High speed black and white A4 printer, able to print 1 sheets/min. Eco friendly with its low power consumption Incorporated a pre-coating system to prevent smearing and established high quality print 212 Brother Industries, Ltd. All Rights Reserved. 3
New models released in the first half of FY212 <P&H> Releasing embroidery sewing machine equipped with industry s first function for expert users Innov-is V7 Slender body allows wider sewing space (about 29cm width) Able to set a stitch width with one touch of a button using an ultrasonic pen Laser guide line helps users to sew in a straight line <M&S> Releasing the world first adhesive base bonding machine Bonding machine BM-1 High productivity by applying glue and pressing in one process Strong and Stable using Special Glue User-friendly Operation like a Sewing Machine <N&C>A new flagship model "JOYSOUND f1" created by utilizing technology and know-how of JOYSOUND and UGA was launched. Online Karaoke JOYSOUND f1 Displays 2, songs which is the largest number in karaoke industry Largely enhanced entertainment function such as Collaborative Animation Movies of "Utasuki function Able to play a guitar using a special device 212 Brother Industries, Ltd. All Rights Reserved. 4
Re-establishing an organization for expanding our new business Enhancing the Service and Solutions Business in addition to the Printing Business. M&S business 14.2% N&C business (Online Karaoke) 9.2% Others 2.6% Service & Solutioins business Web conference system Cloud services Portal site P&H business (Home sewing machine) 6.1% Machine tools 9.8% Industrial sewing machine 4.4% Scanner P&S business (Printer/All-in-one/ Electronic stationery) 67.7% Sales composition in FY211 212 Brother Industries, Ltd. All Rights Reserved. 5
Re-establishing an organization for expanding our new business ~Sep.3.212 P&S business Electronic stationery business Inkjet business Laser business NID business Oct.1.212~ P&S business Electronic stationery business Inkjet business Laser business Service & Solutions business Sales/Marketing sections Development sections NID Research & Development Dept. Sales/Marketing sections Development sections Service & Solutions Business Dept. Manufacturing sections Manufacturing sections Resources of R&D and production in P&S business can be utilized for S&S business segment 212 Brother Industries, Ltd. All Rights Reserved. 6
Forecast for FY212(ending March 31,213) Profits 3/213 Forecast Year-on-Year s (w/o forex impact)[1 Millions of Yen] s to Previous Forecast 6, Current Profits Net Income 6 5,1 4,974 126 2.5% (+4.9%) 5,3-2 -3.8% 5, 5 3 342-42 -12.2% 34-4 -11.8% 4, 4 Current Profits 3 344-44 -12.7% 35-5 -14.3% Net Income 2 195 +5 +2.4% 23-3 -13.% 3, 3 Highlights of Comparison with Previous Forecasts 2, 1, 2 1 Due to the economic slowdown in the Europe and Asia and revised Euro exchange rate, forecasts of sales and profits have been revised downwards. USD EUR 3/212 [Actual] 79.3 11.17 3/213 [Previous Forecast] 8.7 14.1 3/213 [Revised Forecast] 78.74 1.62 Sales forecast of Communications & Printing equipment in the Europe and Asia was reduced. Sales forecast of Industrial Sewing Machine has decreased due to tough market conditions. Operating income was revised downwards mainly due to strong Yen exchange rate and decreased sales forecasts of P&S, M&S. 212 Brother Industries, Ltd. All Rights Reserved. 7
Business policy for this year Promoting growth strategy based on the Mid-Term Business Strategy <P&S> Launching new products in each region and the development of new models for emerging countries by continuing and promoting research and development for the business growth <M&S> Aim to receive steady orders while monitoring economic trends <N&C> Aiming for sales expansion with new online karaoke models <New Business> Establishing business structure and business promotion Promote and strengthen Development/Production structure to support business growth and profit Continue R&D investment for business growth Make investment to enhance production infrastructure and improve safety & disaster prevention R&D expenses (1 Million of yen) 5 25 363 392 381 Capital expenditure/depreciation and amortization (1 million of yen) 5 Capital expenditure 25 Depreciation and amortization 198 346 278 24 231 245 3/211 Actual 212 Brother Industries, Ltd. All Rights Reserved. 3/212 Actual 3/213 Forecast 3/211 Actual 3/212 Actual 3/213 Forecast 8
Dividend and Payout ratio Basic policy remains unchanged with consolidated payout ratio of about 3% Dividends forecast for 2nd half of 3/213 are unchanged from 1st half of 3/213 Dividend Record Dividend per stock 26 Consolidated payout ratio 22 2 45.8% 18 2yen of Commemorative dividend for the 1 th Anniversary 24 24 24 Year end 12 yen Year end 12 yen 19.1% 22.3% 24.5% 24.5% 32.9% 32.1% Interim end 12 yen Interim end 12 yen 27/3 28/3 5 月 29/3 6 月 21/3 7 月 211/3 212/3 8 月 213/39 月 Forecast 212 Brother Industries, Ltd. All Rights Reserved. 9
Details of Financial Results for First Half & Second Quarter (ended September 3, 212) and Forecasts for FY212 (ending March 31, 213)
Consolidated Results for FY212 (ending March 31,213) < FY212 1H ( 6-month Results ) > Six months ended Sep. 3, 212 1H 3/213 1H 3/212 Rate of [Actual] [Actual] (w/o forex impact) 2,445 2,466-2 -.8% (+2.7%) 196 26-64 -24.6% Ratio 8.% 1.6% -2.5% Non-operating Income (Loss) 4 7-2 Current Profits 2 267-66 -24.8% Extraordinary Income (Loss) -7 5-13 Income Taxes 45 137-92 Net Income 148 136 13 9.5% (Yen) Exchange USD 79.43 79.73 -.3 Rates EUR 11.12 114.9-12.97 Despite the negative impact from forex and a sharp decrease in sales in industrial sewing machines due to market deterioration, overall sales have remained at the same level to the previous year with steady sales growth in machine tools and online karaoke business. Operating income has decreased mainly due to a negative impact from forex. Net income increased due to a decrease of income tax caused by tax effect accounting. 212 Brother Industries, Ltd. All Rights Reserved. 11
Main Factors for s in Current Profits < FY212 1H ( 6-month Results ) > 5 4 1 Millions of Yen -66(-24.8%) 3 +22 +8 2-18 -53-26 +3-2 1 267 Decrease in : - 64 2 196 3/212 Q2 Current profits Diff. in sales Price change Cost change Forex impact SG&A R&D expense Nonoperating income/loss 3/213 Q2 Current profits 212 Brother Industries, Ltd. All Rights Reserved. 12
Consolidated Results for FY212 1H (6-month Results) Sales and by Business Segment 2,466 2,445 59 7 224 253 269 119 296 83 145 149 184 173 26 5 57 13 196 7 12 44 1 1,467 1,42 187 124 1H 212/3 1H 213/3-3 1H 212/3 1H 213/3 Communications & Printing equipment Electronic stationery Home sewing machines Industrial sewing machines Machine tools Online karaoke, Contents distribution services Others Printing & Solutions Personal & Home Machinery & Solution Network & Contents 212 Brother Industries, Ltd. All Rights Reserved. 13 Others
Printing & Solutions Sales & < FY212 1H(6-month Results ) > 2, 3 3.% 1,65 1,594 Ratio 1,5 (w/o forex impact) 2 187 2.% 1, 1,467 1,42 Communications & Printing equipment 124 5-3.2% ( +1.7% ) Electronic stationery -5.6% ( -1.3% ) 1 11.3% 7.8% 1.% 184 173 3/212 1H 3/213 1H Total -3.4% ( +1.4% ) 3/212 1H 3/213 1H.% Communications & Printing equipment Geographical Sales Electronic stationery Geographical Sales 3/212 1H 3/213 1H (w /o forex impact) Americas 55 54 +7.% (+9.8%) Europe 542 464-14.3% (-4.3%) Asia & Others 211 199-5.6% (-4.4%) Japan 29 217 +3.8% (+3.8%) 3/212 1H 3/213 1H (w /o forex impact) Americas 87 83-5.1% (-3.2%) Europe 57 51-9.8% (+.9%) Asia & Others 21 2-2.6% (-2.2%) Japan 19 19 +1.6% (+1.6%) Although sales in the Americas have shown a steady increase, sales in the Europe, Asia & Others have decreased due to tough market conditions. Operating income decreased mainly due to a negative impact from forex. 212 Brother Industries, Ltd. All Rights Reserved. 14
Personal & Home Sales & < FY212 1H(6-month Results ) > 2 2 2.% 15 145 149 15 Ratio 13 15.% 1 1 1 1.% 9.3% 5 (w/o forex impact) 5 6.6% 5.% Home sew ing machines 3/212 1H 3/213 1H +3.% ( +8.1% ) 3/212 1H 3/213 1H.% Home sewing machines Geographical Sales 3/212 1H 3/213 1H (w /o forex impact) Americas 71 73 +2.6% (+5.8%) Europe 32 36 +11.2% (+26.2%) Asia & Others 14 13-5.5% (-3.8%) Japan 28 27-1.2% (-1.2%) Sales have shown steady growth mainly in Europe and the Americas. Although sales have increased, operating income decreased due to a negative impact from forex and an increase in costs. 212 Brother Industries, Ltd. All Rights Reserved. 15
Machinery & Solution Sales & < FY212 1H(6-month Results ) > 5 4 3 388 379 119 83 (w/o forex impact) 8 6 Ratio 57 44 4.% 3.% Industrial sewing machines 4 2.% 2-3.1% ( -28.7% ) 1 269 296 Machine tools +9.9% ( +9.3% ) 2 14.8% 11.6% 1.% Total 3/212 1H 3/213 1H Industrial sewing machines Geographical Sales 3/212 1H 3/213 1H (w /o forex impact) Americas 17 16-2.4% (-1.6%) Machine tools -2.3% ( -2.3% ) Geographical Sales 3/212 1H 3/213 1H Americas 8 1 +16.% 3/212 1H 3/213 1H.% Although sales of Machine tools grew steadily mainly for IT products manufacturers, sales of industrial sewing machines have decreased due to tough market condition. Europe 18 13-26.7% (-16.8%) Asia & Others 81 51-37.2% (-37.5%) Japan 3 3-11.9% (-11.9%) Europe 11 6 Asia & Others 226 253 Japan 24 27-47.6% +12.2% +13.7% Operating income of industrial sewing machine has decreased due to the impact of the decline in sales of industrial sewing machines. *As machine tools are mostly exported to customers abroad directly from Japan, sales are reported in Japan segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 212 Brother Industries, Ltd. All Rights Reserved. 16
Network & Contents Sales & < FY212 1H(6-month Results ) > 4 2 Ratio 2.% 3 2 224 253 1 12 4.8% 1.% -3.% 1-1.2% 3/212 1H 3/213 1H +13.3% -1 3/212 1H 3/213 1H -1.% Sales has increased due to the steady sales growth of new online karaoke models. Operating income has moved into the black due to the increase in sales. Regional sales breakdown for Network & Contents is not referred here because majority of sales are made in Japan. 212 Brother Industries, Ltd. All Rights Reserved. 17
Revised Forecast for FY 212 ( ending March 31, 213) Ratio Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income 3/213 3/212 Rate of 3/213 Rate of [Forecast] [Actual] [Previous Forecast] (w/o forex impact) (A) (B) (A - B) (A/B - 1) (C) (A/C - 1) 2.5% 5,1 4,974 126 5,3-3.8% (+4.9%) 3 342-42 -12.2% 34-11.8% 5.9% 6.9% -1.% 6.4% 2-2 1 3 344-44 -12.7% 35-14.3% -1-2 -8-1 9 146-56 11 2 195 5 2.4% 23-13.% (Yen) Exchange USD 78.74 79.3 -.56 8.7 Rates EUR 1.62 11.17-9.55 14.1 * Assumed future currency exchange rates for the consolidated forecasts for the fiscal year ending March 31, 213 are USD=78. yen and EUR=1. yen. * The above Exchange Rates for the fiscal year ending March 31, 213 are the average rates for the year. Despite a negative impact from forex, sales are expected to increase in total except for sales in industrial sewing machines. Operating income is expected to decrease mainly due to a negative impact from forex, and reduced sales of industrial sewing machines. 212 Brother Industries, Ltd. All Rights Reserved. 18
Consolidated Forecast for FY212 (ending March 31,213) Sales and by Business Segment 5,28 4,974 5,1 14 131 152 528 459 59 423 487 51 241 218 189 294 37 33 368 371 371 361 13 75 29 342 13 83 3 14 21 26 66 26 3,34 3,1 3,48 271 22 173 3/211 [Actual] 3/212 [Actual] 3/213 [Forecast] -27 3/211 [Actual] 3/212 [Actual] 3/213 [Forecast] Communications & Printing equipment Electronic stationery Home sewing machines Industrial sewing machines Machine tools Online karaoke, Contents distribution services Others Printing & Solutions Personal & Home Machinery & Solution Network & Contents 212 Brother Industries, Ltd. All Rights Reserved. 19 Others
Printing & Solutions Sales & < Forecast for FY212( ending March 31,213 ) > 4, 3,372 3,419 4 Ratio 2.% 3, (w/o forex impact) 3 22 15.% 2, 3,1 3,48 Communications & Printing equipment 2 173 1.% +1.6% ( +4.7% ) 1, 371 371 3/212 Actual 3/213 Forecast Electronic stationery -.% ( +2.9% ) Total +1.4% ( +4.5% ) 1 6.5% 5.1% 3/212 Actual 3/213 Forecast 5.%.% Communications &Printing equipment Geographical Sales 3/212 Actual 3/213 Forecast (w /o forex impact) Americas 1,45 1,141 +9.2% (+11.%) Europe 1,129 1,3-8.8% (-2.2%) Asia & Others 399 47 +1.9% (+2.4%) Japan 427 47 +1.% (+1.%) Electronic stationery Geographical Sales 3/212 3/213 Actual Forecast (w /o forex impact) Americas 176 175 -.5% (+.8%) Europe 116 111-4.3% (+2.9%) Asia & Others 43 42-1.5% (-1.4%) Japan 36 43 +17.8% (+17.8%) Sales are expected to increase mainly due to steady growth in the Americas. Operating income is expected to decrease due to a negative impact from forex and an increase in depreciation and amortization expense. 212 Brother Industries, Ltd. All Rights Reserved. 2
Personal & Home Sales & < Forecast for FY212( ending March 31,213 ) > 4 4 2.% 37 33 Ratio 3 3 26 26 15.% 2 2 1.% 1 (w/o forex impact) 1 8.5% 7.9% 5.% Home sew ing machines 3/212 Actual 3/213 Forecast +7.5% ( +1.6% ) 3/212 Actual 3/213 Forecast.% Home sewing machines Geographical Sales 3/212 Actual 3/213 Forecast (w /o forex impact) Americas 148 165 +11.9% (+13.8%) Europe 7 72 +3.4% (+12.8%) Asia & Others 29 29 +1.6% (+2.1%) Sales are expected to increase steadily mainly in the Americas and Europe. Operating income is expected to remain at a level similar to the last year. Japan 61 64 +4.3% (+4.3%) 212 Brother Industries, Ltd. All Rights Reserved. 21
Machinery & Solution Sales & < Forecast for FY212( ending March 31,213 ) > 1, 15 Ratio 3.% 8 74 69 6 218 189 (w/o forex impact) 1 83 2.% Industrial sewing machines 66 4-13.1% ( -11.7% ) Machine tools 5 11.9% 1.% 2 487 51 Total +2.9% ( +2.7% ) 9.6% 3/212 Actual 3/213 Forecast -2.% ( -1.8% ) 3/212 Actual 3/213 Forecast.% Industrial sewing machines Geographical Sales 3/212 Actual 3/213 Forecast (w /o forex impact) Americas 31 31-1.2% (-.5%) Europe 3 3 +.6% (+9.2%) Asia & Others 151 124-17.6% (-17.5%) Japan 6 4-3.6% (-3.6%) Machine tools Geographical Sales 3/212 Actual 3/213 Forecast Americas 18 16-9.% Europe 15 11-3.3% Asia & Others 44 422 +4.5% Japan 5 52 +4.3% Sales are expected to show a slight decrease due to the market deterioration of industrial sewing machines. Operating income is expected to reduce due to the impact of decreasing sales of industrial sewing machines. *As machine tools are mostly exported to customers abroad directly from Japan, sales are reported in Japan segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 212 Brother Industries, Ltd. All Rights Reserved. 22
Network & Contents Sales & < Forecast for FY212( ending March 31,213 ) > 8 3 Ratio 15.% 6 459 59 2 21 1.% 4 1 4.1% 5.% 2 - -.%.% 3/212 Actual 3/213 Forecast +1.8% -1 3/212 Actual 3/213 Forecast -5.% Sales are expected to increase due to the introduction of the new Online Karaoke Machine. Operating income is expected to show a profit due to sales increase. * Regional sales breakdown for Network & Contents is not referred here because the major part of sales are made in Japan. 212 Brother Industries, Ltd. All Rights Reserved. 23
(Reference) Consolidated Results for FY212(ending March 31,213) < FY212 Q2(3-month Results ) > [Reference data] Three months ended Sep. 3, 212 Q2 3/213 Q2 3/212 Rate of [Actual] [Actual] (w/o forex impact) Ratio Non-operating Income (Loss) Current Profits Extraordinary Income (Loss) Income Taxes Net Income 1,239 1,238 1.1% (+2.6%) 81 118-37 -31.5% 6.5% 9.5% -3.% -3 3-6 78 121-43 -35.4% -4-3 29 48-19 45 7-24 -35.% (Yen) Exchange USD 78.42 77.99.43 Rates EUR 98.3 11.76-12.46 Despite the negative impact from forex and a sharp decrease in sales in industrial sewing machines due to market deterioration, overall sales have remained at the same level to same period last year with steady sales growth in machine tools and online karaoke business. Operating income decreased due to a negative impact from forex and reduced sales of industrial sewing machines. 212 Brother Industries, Ltd. All Rights Reserved. 24
Main Factors for s in Current Profits < FY212 Q2 ( 3-month Results ) > 25 1 Millions of Yen -43(-35.4%) 2 15 +6 +4 1 5 121-19 118-27 Decrease in : -37-5 +3 81-6 78 3/212 Q2 Current profits Diff. in sales Price change Cost change Forex impact SG&A R&D expense Nonoperating income/loss 3/213 Q2 Current profits 212 Brother Industries, Ltd. All Rights Reserved. 25
(Reference) Printing & Solutions Sales & < FY212 Q2(3-month Results ) > 1, 1 2.% 833 789 Ratio 8 8 6 (w/o forex impact) 9.6% 4 738 7 Communications & Printing equipment -5.1% ( -1.5% ) 5 36 1.% Electronic stationery 2 95 89 Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) -7.1% ( -4.% ) Total -5.4% ( -1.8% ) Q2 3/212 (3 -month Results) 4.5% Q2 3/213 (3 -month Results).% Communications & Printing equipment Geographical Sales Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) (w /o forex impact) Electronic stationery Geographical Sales Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) (w /o forex impact) Americas 259 271 +4.7% (+5.9%) Europe 265 221-16.5% (-7.5%) Asia & Others 15 97-8.1% (-8.%) Japan 19 111 +1.9% (+1.9%) Americas 45 42-7.4% (-6.9%) Europe 29 26-1.2% (-.2%) Asia & Others 1 1-5.9% (-6.4%) Japan 11 11 +.5% (+.5%) 212 Brother Industries, Ltd. All Rights Reserved. 26
(Reference) Personal & Home Sales & < FY212 Q2(3-month Results ) > 1 15 Ratio 3.% 77 76 8 1 1 2.% 6 12.8% 4 5 5 1.% 2 (w/o forex impact) Home sew ing machines 6.9% Q2 3/212 (3 -month Results) Q2 3/213 (3 -month Results) -2.% ( +1.6% ) Q2 3/212 (3 -month Results) Q2 3/213 (3 -month Results).% Home sewing machines Geographical Sales Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) (w /o forex impact) Americas 39 39 -.5% (+1.2%) Europe 18 17-4.4% (+7.7%) Asia & Others 7 7-5.8% (-5.4%) Japan 14 13-1.4% (-1.4%) 212 Brother Industries, Ltd. All Rights Reserved. 27
(Reference) Machinery & Solution Sales & < FY212 Q2(3-month Results ) > 25 4 4.% 2 18 199 41 3 Ratio 25 24 3.% 15 55 (w/o forex impact) Industrial sewing machines 2 2.% 1 5 125 158-24.1% ( -23.2% ) Machine tools +26.1% ( +25.2% ) Total 1 14.% 12.% 1.% Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) +1.9% ( +1.5% ) Q2 3/212 (3-month Results) Q2 3/213 (3-month Results).% Industrial sewing machines Geographical Sales Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) (w /o forex impact) Americas 8 8-8.1% (-8.5%) Europe 7 6-15.7% (-5.%) Asia & Others 37 26-29.9% (-3.7%) Machine tools Geographical Sales Q2 3/212 (3-month Results) Q2 3/213 (3-month Results) (w /o forex impact) Americas 3 4 +23.7% Europe 5 2-53.6% Asia & Others 13 139 +34.7% Japan 2 1-1.6% (-1.6%) Japan 14 13-8.6% *As machine tools are mostly exported to customers abroad directly from Japan, sales are reported in Japan segment regardless of destination of exports. Therefore, for the purpose of this material, the regional breakdown ratios of exports from Japan multiplied by total consolidated sales is shown here. 212 Brother Industries, Ltd. All Rights Reserved. 28
(Reference) Network & Contents Sales & < FY212 Q2(3-month Results ) > 2 2 Ratio 2.% 15 143 15 14 15.% 1 114 1 9.7% 1.% 5 5.6% 5.% +24.8% 1 Q2 3/212 (3 -month Results) Q2 3/213 (3 -month Results) Q2 3/212 (3-month Results) Q2 3/213 (3-month Results).% Regional sales breakdown for Network & Contents is not referred here because majority of sales are made in Japan. 212 Brother Industries, Ltd. All Rights Reserved. 29
(Reference) R&D expenses, Capital expenditure, Depreciation and amortization and Inventories R&D expenses Capital expenditure and Depreciation and amortization 4 392 381 4 Capital expenditure 346 Depreciation and amortization 278 231 245 2 185 181 2 17 16 15 18 1H 3/212 Actual Inventories 1H 3/213 Actual 3/212 Actual 3/213 Forecast 1H 3/212 Actual Inventories 1H 3/213 Actual 3/212 Actual Inventories / Cost of sales 3/213 Forecast (Number of months) 1, 5 851 69 71 723 728 77 779 765 788 3. 2.9 3.2 3.4 3.2 3.5 3.6 2.9 3.1 6. 5. 4. 3. 2. 1.. Sep-1 Dec-1 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 212 Brother Industries, Ltd. All Rights Reserved. 3