Epson is continuing to expand its businesses overseas; slightly less than 70% of its consolidated sales for
the business year ended March 2013 were overseas. Epson has production sites all over Asia, including
China, Indonesia, Singapore, Malaysia and the Philippines, as well as in the United States, the United
Kingdom, and other countries. It has also established many sales companies all over the world. As of
March 2013, overseas employees account for more than 70% of Epson's total workforce.
Epson believes that its global presence provides many advantages. For example, it enables Epson to
undertake marketing activities aligned with the market needs of individual regions and leads to greater
cost-competitiveness by reducing manufacturing costs and lead times. There are, however, unavoidable
risks associated with overseas manufacturing and sales operations. These include but are not limited to
changes in national laws, ordinances, or regulations related to manufacturing and sales; social, political or
economic changes; transport delays; damage to infrastructure (e.g., power supply); currency exchange
restrictions; insufficient skilled labor; changes in regional labor environments; changes in taxes, regulations
or the like protective of trade; and laws, ordinances, regulations, or the like related to the import and export
of Epson products.