Epson 2009 Annual Report Download - page 7

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6
Epson’s Mid-Range Business Plan
Epson has announced its SE15 Long-Range Corporate Vision and SE15 (First Half) Mid-Range Business
Plan (FY2009-FY2011). These plans determine the direction Epson will take in the medium- to long-term,
and the measures it will take to achieve its aims.
1. Review of the “Creativity and Challenge 1000 Mid-Range Business Plan” (FY2006-FY2008)
Epson pursued the following five management policies as part of its Creativity and Challenge 1000
Mid-Range Business Plan. Here we will look at the first three policies, which have a direct impact on
Epson’s net sales and profitability.
Redefine and reinforce the business and product portfolios
Epson was able to increase sales volumes in its strategically important printer and 3LCD projector
businesses by launching competitive new products. Epson anticipates medium- to long-term growth as a
result of its entry into the commercial and industrial inkjet printer markets in which it sees high growth
potential.
Reorganize the electronic device businesses
Despite successes in consolidating business sites and driving efficiencies in human resources, Epson was
unable to return to profitability in these businesses. This was largely due to a delay in shifting to
high-value-added markets and to a steep decline in sales volumes due to the economic recession.
Streamline costs
Here Epson succeeded in cutting variable costs through measures such as reducing the number of printer
platforms. However, these benefits were offset by the effects of the economic recession and the
appreciation of the yen.
2. SE15 Long-Range Corporate Vision
In establishing its Long-Range Corporate Vision and Mid-Range Business Plan, Epson concluded that the
economic recession and the appreciation of the yen would continue for the foreseeable future, as would the
downward spiral of prices and declining demand.
In these difficult circumstances, Epson will maximize the benefits achieved by Creativity and Challenge
1000 in SE15, and will tackle the remaining issues going forward by implementing bold measures.
Epson’s aim is to become “a community of robust businesses” by refining and further leveraging “compact,
energy-saving, high-precision technologies,” as its core strengths since its foundation, and by creating
products and services that emotionally engage customers.