Business Printers Epson Partner Program

Inkjet Trends Value Proposition Epson Growth Strategy Next Steps Why Epson? Value Proposition Epson Growth Strategy Superior Technology B2B Commercial Exclusives Full portfolio EcoTank Innovation Next Steps

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

Inkjet: Penetration by Environment Consumer Unit Shipments Wide Format Unit Shipments Production PV Office Unit Shipments 6 2015 2015 Inkjet likely to surpass 66% of total shipments by 2020. Growth to come from workgroup color printers/MFPs 2015* 2015 149B Pages 2020 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 Inkjet Laser

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

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

PrecisionCore Performance B2B Commercial Exclusives Key Growth Strategies PrecisionCore Performance B2B Commercial Exclusives Full Portfolio Ink Attach EcoTank Innovation Grow Color Printing with unbeatable image quality Performance “beyond laser” WorkForce Powered by PrecisionCore Exclusive Line of Commercial Printers IT Tools enhanced security / admin controls / network support No channel conflicts with retail Full Product Line Best Quality, Speed, Reliability Higher ASP, Strong Ink Attach Recoup ink attach up-front Drive Color Print Growth in all markets Transform Market with Supertank Innovation Accelerate category growth with color Grow ink attach, drive leading market share

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

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

Epson Commercial Printing Portfolio WF-8000 Series WF-6000 Series WF-5000 Series WF-M5194 WF-M5694 Monochrome Workgroup (2) Business Printers Color Workgroup (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) A4 A4 / A3 Replacement Ink 10,000 Pages Up to 10,000 pages Exclusively available through commercial channels

Delivering Value with Epson Business Printers 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 Color A4 Inkjet 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 Color A3 Inkjet Value Proposition Lowest cost monochrome printer in its class Low intervention – print up to 10K 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 Mono Inkjet

Business Specific Solutions Epson iPrint 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 Open Platform / PaperCut Solution that enables seamless integration of Epson MFPs with web-based enterprise applications and workflows. Streamline configuration and management for your Epson printer fleet.

Complete Printer Portfolio Commercial Exclusive Small / Mobile Pro Photo/ Wide (A3) EcoTank WorkForce / Pro WorkForce Pro PERSONAL PERSONAL PHOTO WIDE PERSONAL CONVENIENCE SHARED SHARED + IT TOOLS Lightweight Compact Affordable High Image Quality Widest Format Affordable 2 Years of Ink* Low Color cost Low Intervention Capacity Functionality Business Printing Systems Integration Convenient Up to 3-yr warranty Full Line + Roadmap Expands to Higher Print Speeds

Full Inkjet Printer Lineup Vs. WF2630 WF2750 WF2760 WF3620 WF3640 WF7110 WF7610 WF7620 WF4630 WF4640 WF6530 WF100 $299 EPSON $89 $99 $149 $169 $199 $199 $249 $299 $299 $399 $499 Mobile OJ3830 OJ4650 OJ5740 OJP6968 OJP8710 OJ7110 OJ7612 OJP8720 OJP8730/40 OJ200 $279 OJ250 $349 1 3 2 HP 5 WF5110 WFM5194 monochrome WF5190 WF6090 WF8090 WF5620 WFM5694 monochrome WF5690 WF6590 WF8590 Commercial Printers $169 $209 $249 $299 $799 $249 $399 $299 $449 $1499 NPD – June – Nov 2016 (6-months). Top commercial sell thru SKUs (revenue) 1 OfficeJet Pro 8710 2 OfficeJet Pro 8740 3 OfficeJet Pro 8720 4 PageWide Pro 577dw 5 OfficeJet 200 6 Officejet Pro 8210 7 OfficeJet 250 8 OfficeJet 4650 9 Officejet Pro 6230 10 PageWide Pro 477dw 11 DeskJet 3755 12 ENVY 7640 13 ENVY 4520 14 PageWide Pro 477dn 15 MAXIFY MB5320 16 OfficeJet Pro 8730 17 PIXMA MG7720 18 OfficeJet Pro 6978 19 PIXMA iP110 20 MAXIFY MB2320 OJP8216 OJP8720 OJ 8740 3 2 Commercial sell thru rankings, June – Nov 2016. Source: NPD Dec 2016

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

Competitive Comparison Access C/C docs here

Access snapshot docs here One-Minute Snapshots Access snapshot docs here

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?!!

EcoTank Customer Benefits PrecisionCore Technology SAVINGS CONVENIENCE PERFORMANCE ENVIRONMENT In-box Value Save 80% - ink bottles 2 years ink included Less “out of ink” anger Epson quality Permanent Printhead Less waste Less shipping

~6 foot pile of waste (Laser) Environment LOW WASTE SYSTEM ~6 foot pile of waste (Laser) Vs 1 Set of RIPS Bags PrecisionCore Technology

EcoTank & RIPS Cartridge-Free Printing Includes up to 2 years of ink Save up to 80% on replacement ink bottles 2017 Line Up ~4X Ink/Hdw Attach – Day 1 Home Small Business Business & Workgroup $1399.99 $499.99 $599.99 $1199.99 $379.99 $399.99 $529.99 ET-2600 ET-2650 ET-3600 ET-4500 ET-4550 ET-16500 WF-R4640 MAP UP UP UP UP UP UP

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

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