Epson 2009 Annual Report Download - page 37

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5. Issues for Fiscal 2009
Impacted by the global economic crisis and the sudden and severe appreciation of the yen, Epson is
experiencing an extremely severe operating environment. With society transformed by changes that have
overturned traditional assumptions, we believe that customer values are set to undergo dramatic change.
Accepting this situation as an opportunity, Epson is implementing structural changes as it seeks to go
forward on a new growth path. To do this it will rediscover its traditional strengths, and concentrate
management resources on businesses with growth potential and which are strategically important.
More specifically, under this policy Epson established its SE15 Long-Range Corporate Vision in March
2009, setting out its vision for the period up to 2015. We also established the SE15 (First Half) Mid-Range
Business Plan, a three-year mid-range business plan beginning in fiscal 2009.
According to the SE15 Long-Range Corporate Vision, Epson will focus on “compact, energy-saving,
high-precision technologies” as its core strengths since its foundation, and will leverage these strengths as
it looks to achieve sustainable growth. Through the formation of Group-wide platforms, Epson seeks to
become “a community of robust businesses” creating products and services that emotionally engage
customers worldwide.
Based on the assumption of severe business conditions, the SE15 (First Half) Mid-Range Business Plan
describes how Epson will combine its strengths to respond to this situation. Epson will implement a range
of measures to ensure its return to a profit-generating structure on the path to realizing the SE15
Long-Range Corporate Vision.
Going forward, Epson will shift management resources to areas where it can leverage its strengths and to
businesses with growth potential and which are strategically important, and will look to foster new
businesses to drive future growth. On the other hand, Epson is not content to merely continue existing
measures for businesses facing a difficult profit scenario due to the worsening of the business environment.
Here we will implement far-reaching structural reforms and rebuild the foundations of our business
including measures such as merging and retiring business sites and making strategic alliances with other
companies.
By launching speedy and efficient initiatives, Epson is looking to achieve by 2015 both ROS and ROE of
10% or above on a continuous basis in addition to boosting net sales.
(1) Plans for businesses with growth potential
Printers
In printers, Epson will leverage its core and proprietary Micro Piezo inkjet technology to further strengthen
the foundations of its business. In applications that range from consumer through to business markets,
Epson will take the customers’ viewpoint as it develops products that provide ease-of-use and which
emotionally engage with users.
Epson will also expand operations by increasing the number of models for emerging markets, and
launching environmentally considerate models. We will also seek to expand into the commercial and
industrial sectors through the application of Micro Piezo technology.
Projectors
As the world’ s leading manufacturer, Epson aims to maintain top share, increase its presence in the
high-end projector market by leveraging the advantages of its core HTPS TFT LCD technology, and enter
and develop new business domains.
Quartz devices and sensors
The Company will make Epson Toyocom a wholly owned subsidiary to improve management
responsiveness and efficiency, and to reinforce Epson Toyocom’ s position as the leading company in the
crystal device market.
Quartz devices will be positioned as the core of Epson’ s electronic device businesses. By creating