Epson 2011 Annual Report Download - page 31

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5. Issues for Fiscal 2011
Epson’s operating environment is marked by an acceleration of trends including the increasing influence of
emerging markets on the global economy and a shift to sustainable industrial and economic activities. With
society being transformed by changes such as these, Epson believes that customer values are also on the verge of
dramatic change.
Seeing 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 its management resources
on businesses that have growth potential and/or strategic importance.
Toward this end, Epson established the SE15 Long-Range Corporate Vision in March 2009, setting out its vision
for the period up to 2015, and the three-year SE15 Mid-Range Business Plan (FY2009-FY2011).
Under 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 consolidation of management resources on growth businesses and 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 continuing severe business conditions, the SE15 Mid-Range Business Plan
(FY2009-FY2011) 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 further shift management resources to areas where it can leverage its strengths and to
businesses that have growth potential and/or strategic importance, so as to foster new businesses that will drive
future growth. In fiscal 2011, the final year of the SE15 Mid-Range Business Plan (FY2009-FY2011), Epson
will step up its efforts to move onto the growth path set out in SE15 and will continue to strengthen its business
structure and pursue its ongoing structural reforms.
By demonstrating Group synergies and 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.
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
users.
Epson will also expand operations by increasing the number of models for emerging markets and by launching
environmentally considerate models. It 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
By drawing on the technical expertise it has accumulated over the years and by rebuilding its manufacturing
infrastructure, Epson is looking to create high-value-added microdevices and reinforce its position as the leading
company in the crystal device market.
Quartz devices are positioned as the core products of Epson’s electronic devices businesses. By creating
synergies with its semiconductor and other technologies, Epson will fortify its lineup of sensing devices and
applied products.
Please note that Epson manufacturing sites in the Tohoku area of Japan were affected by the Great East Japan
Earthquake that struck on March 11, 2011. While carefully confirming the situation regarding employees and