Business Printers Epson Partner Program CONFIDENTIAL 1 Agenda

Business Printers Epson Partner Program CONFIDENTIAL 1

Agenda • Inkjet Trends – Why Epson? • Value Proposition • Epson Growth Strategy – – • Superior Technology B 2 B Commercial Exclusives Full portfolio Eco. Tank Innovation Next Steps CONFIDENTIAL 2

Inkjet Technology is Disruptive $ Costs Serviceability • Ink is cheaper to manufacture than toner • Less complex writing system with fewer moving parts • Lower hardware costs compared to laser • Fewer break points and serviceable items • Lower operating costs • Reduced service requirements Sustainability Imaging • Media doesn’t touch the writing system • Lower energy consumption • Supports a broad range of substrates • Less waste Proven technology with fundamental benefits to address emerging market needs CONFIDENTIAL 3

Inkjet: Penetration by Environment Consumer Unit Shipments Production PV Wide Format Unit Shipments [VAL UE] 3% 7% 2015* 52% 78% 6 [VAL UE] Office Unit Shipments 2015 [VAL UE] 59% 2015 Inkjet likely to surpass 66% of total shipments by 2020. Growth to come from workgroup color printers/MFPs 149 B Pages 2020 Inkjet Laser Source: IDC U. S. Production Page Volume Forecast, 2016– 2020 IDC Worldwide Single-Function Printer Forecast, 2016– 2020 IDC Worldwide Multifunction Peripheral Forecast, 2016– 2020 IDC North America Large Format Printer Market Shares, 2015 *Based on Extrapolation from IDC Inkjet Forecast CONFIDENTIAL 4

Why Epson Inkjet? Broad Portfolio Hassle-Free Lowest TCO Full line of innovative photo, personal, and workgroup printers/MFPs High capacity ink yields reduce printervention Lowest cost TCO mono and color printers in their class Product Quality IT Compliant MPS Compliant Product reliability, print quality and paper handling equal to laser Open Platform and ISV tools, Scan SW, Universal drivers, SAP Printing Print. Fleet, fm. Audit, Print. Audit certified Industry leading service solutions to meet customers requirements CONFIDENTIAL 5

Partnership / Authorization Elements Enhanced Margins • VAR/Dealer (targeted margins) ü Consumer printers = 12% ü Eco. Tank = 14% ü Commercial printers = 22% Reseller Incentives • End-user Rebate incentives • Tier 2 consumer ink authorization Annual Sales • $2, 500 Commitment ü Achieve program benefits easier than other manufacturer programs Exclusive Models • Commercial channel SKUs • Eco. Tank ü Bottle based, not cartridge ü Get two-years of ink sales up-front ü Unilateral pricing assures healthy margin Authorized Channel • Contract based • Unilateral Pricing Policy ü Eco. Tank models • No marketplace selling • Stable margins • Win on value Training & Support • Self-paced web based learning • Access to expert technicians ü By phone and in the field CONFIDENTIAL 6

Key Growth Strategies Precision. Core Performance • Grow Color Printing with unbeatable image quality • Performance “beyond laser” • Work. Force Powered by Precision. Core B 2 B Commercial Exclusives • Exclusive Line of Commercial Printers • IT Tools enhanced security / admin controls / network support • No channel conflicts with retail Full Portfolio Ink Attach • Full Product Line • Best Quality, Speed, Reliability • Higher ASP, Strong Ink Attach • Accelerate category growth with color • Grow ink attach, drive leading market share Eco. Tank Innovation • Recoup ink attach up-front • Drive Color Print Growth in all markets • Transform Market with Supertank Innovation CONFIDENTIAL 7

Did you know… …Epson Inkjet is different! Business Industrial Photography Commercial • World’s 1 st modular, scalable, flexible, digital printing technology • One print chip addressing many markets CONFIDENTIAL 8

Epson Investment in Commercial Ink Patents • • 1 st in inkjet printers category for the # of patents in the US 2 nd in printers category for the # of patents in the US Industry Awards Meeting Business User Needs • Epson printers delivers innovative benefits to business users CONFIDENTIAL 9

Epson Commercial Printing Portfolio WF-8000 Series WF-M 5194 • WF-M 5694 WF-6000 Series WF-5000 Series Monochrome Workgroup Color Workgroup (2) Business Printers (8) Business Printers Value Proposition Up to 50% less TCO than mono laser Up to 50% less TCO than color laser Rec. Monthly Up to 2500 pages per month Up to 5000 pages per month MSRP $199 - $399 $199 - $2, 999 Print Speed 20 pages per minute (black) 20 – 24 pages per minute (color) Paper Size(s) A 4 / A 3 Replacement Ink 10, 000 Pages Up to 10, 000 pages Exclusively available through commercial channels CONFIDENTIAL 10

Delivering Value with Epson Business Printers Color A 4 Inkjet Color A 3 Inkjet Value Proposition • Up to 50% lower printing costs vs. color laser • Uses up to 70% less power than laser printers Great for: Distributed SMB workgroup print environments Value Proposition • Up to 40% lower printing costs vs. color laser • Uses up to 70% less power than laser printers • Print up to tabloid (13” x 19”) Great for: Engineering, architecture & marketing tabloid printing Mono Inkjet Value Proposition • Lowest cost monochrome printer in its class • Low intervention – print up to 10 K black pages without changing the cartridge • Uses up to 70% less power than laser printers Great for: Low cost alternative to mono laser for higher PV applications CONFIDENTIAL 11

Business Specific Solutions Epson i. Print App MPS Enablement Epson has certified commercial printers to be compatible with printer data collection software from majority of independent software provider Epson recognized by Channel Pro’s readers for commitment to providing best solutions to partners in MPS category. Epson Device Admin (EDA) + IT Tools Streamline configuration and management for your Epson printer fleet. Open Platform / Paper. Cut Solution that enables seamless integration of Epson MFPs with webbased enterprise applications and workflows. CONFIDENTIAL 12

Complete Printer Portfolio Commercial Exclusive Small / Mobile Pro Photo/ Wide (A 3) Eco. Tank PERSONAL PHOTO WIDE PERSONAL CONVENIENCE Lightweight Compact Affordable High Image Quality Widest Format Affordable 2 Years of Ink* Low Color cost Low Intervention Work. Force / Pro Work. Force Pro SHARED + IT TOOLS Capacity Functionality Business Printing Systems Integration Convenient Up to 3 -yr warranty • Full Line + Roadmap Expands to Higher Print Speeds CONFIDENTIAL 13

WF 2630 WF 2750 $89 $99 OJ 3830 OJ 4650 WF 2760 WF 3620 $169 $149 OJ 5740 WF 7110 WF 3640 $199 OJP 6968 OJP 8710 1 OJ 7110 Vs. WF 7610 $249 WF 7620 WF 4630 $299 OJP 8720 OJ 7612 WF 6530 WF 4640 $399 3 $499 OJP 8730/40 WF 100 $299 Mobile OJ 200 OJ 250 $279 $349 2 HP EPSON Full Inkjet Printer Lineup 5 WF 5110 Commercial Printers $169 WFM 5194 WF 5190 $209 $249 monochrome WF 6090 WF 8090 $299 OJP 8216 Commercial sell thru rankings, June – Nov 2016. Source: NPD Dec 2016 $799 WF 5620 WFM 5694 monochrome $249 OJP 8720 $399 3 WF 5690 WF 6590 $299 $449 WF 8590 $1499 OJ 8740 2 CONFIDENTIAL 14

Epson vs. Market ASP Comparison Epson vs. Rest of Market Epson Commercial Retail +13% 2014 2015 2016 June YTD • Epson Outperforming the Market Significantly in ASP • Higher ASP = More Ink!! Source: NPD Retail Database June 2016 US $ CONFIDENTIAL 15

Competitive Comparison Access C/C docs here CONFIDENTIAL 16

One-Minute Snapshots Access snapshot docs here CONFIDENTIAL 17

Customer Pain Points Interrupted Print jobs Replacement Cartridges Cost of Ink Curbing Usage & Color Rationing Don’t tell me we’re out of ink AGAIN? !! CONFIDENTIAL 18

Eco. Tank Customer Benefits Precision. Core Technology SAVINGS CONVENIENCE • In-box Value • Save 80% - ink bottles • 2 years ink included • Less “out of ink” anger PERFORMANCE • Epson quality • Permanent Printhead ENVIRONMENT • Less waste • Less shipping CONFIDENTIAL 19

Environment LOW WASTE SYSTEM Precision. Core Technology ~6 foot pile of waste (Laser) Vs 1 Set of RIPS Bags CONFIDENTIAL 20

Eco. Tank & RIPS 2017 Line Up Cartridge-Free Printing Includes up to 2 years of ink ~4 X Ink/Hdw Attach – Day 1 • Save up to 80% on replacement ink bottles Small Business Home Business & Workgroup $1399. 99 $379. 99 $399. 99 $529. 99 ET-2600 ET-2650 ET-3600 MAP UP UP $499. 99 ET-4500 UP $599. 99 ET-4550 UP $1199. 99 ET-16500 WF-R 4640 UP UP CONFIDENTIAL 21

Summary Compelling and profitable programs for distribution channel partners Authorized market ensuring protection and profitability for resellers Strong line-up of innovative business printers, including Eco. Tank models Win with low intervention, low cost per page, low TCO message Long-term commitment to commercial and enterprise level market CONFIDENTIAL 22

Next Steps • • Complete Application Read Unilateral Pricing (UP) Policy Sign Agreement Send Application and signed agreement to: CONFIDENTIAL 23

Thank you! CONFIDENTIAL 24