Epson 2014 Annual Report Download - page 30

5. Issues for Fiscal 2014
At the start of the 2013 fiscal year Epson began working under an updated three-year plan called the
Updated SE15 Second-Half Mid-Range Business Plan (FY2013-2015). We have been closely adhering to
the strategic course charted by the SE15 Long-Range Corporate Vision and, in line with the updated plan,
are pursuing a basic strategy of managing our businesses so that they create steady profit while avoiding the
single-minded pursuit of revenue growth. Our top priority will be steady income and cash flow. To achieve
this in existing segments, we will readjust our product mixes and adopt new business models. Meanwhile,
we will aggressively develop markets in new segments. We will move steadily forward to lay the
foundation for a metamorphosis during which Epson will change from being primarily a company that
provides consumer imaging products into a company that once again posts strong growth by creating and
providing new information solutions and equipment for businesses and professionals, as well as consumers.
Continued growth is forecast for the global economy. The advanced economies, led by the U.S.A., are
expected to recover while the emerging economies continue to grow, albeit at a slower pace. Society is
changing, shifting increasingly toward sustainable industry and sustainable economic activity. This trend
will likely alter the kind of customer value that Epson will need to provide.
Under this type of business environment, we will remake Epson into a company that once again posts
strong growth. We will achieve this by focusing our management resources on strategic segments where we
can continue to leverage our unique strengths, by expanding our business segments, and by building
stronger new businesses that will support the Company’ s growth in the future. Ultimately, we aim to
achieve 10% ROS and 10% or better ROE on a sustained basis as early as possible during the mid-range
business plan that starts in fiscal 2016, by which time Epson will have established a stable profit structure.
Basic Strategies in Each Business
Printing Systems Business
In the printing systems business we will look to create an innovative printing environment by leveraging
inkjet technology. In inkjet printers we will adjust the product mix and roll out a new business model by
launching models tailored to the needs of the office market and emerging markets. We will also boost
competitiveness by releasing a succession of inkjet printers that feature new Micro Piezo print heads. At the
same time, we will further enhance services and support that include IT solutions. In the business systems
business, we will achieve steady income growth by uncovering new demand while maintaining a grip on
the top share in existing segments.
Visual Communications Business
In the visual communications business we will create new forms of visual communication using
micro-display technology. In projectors, apart from continuing our efforts in existing market segments, we
will look to expand our market footprint and improve earnings by enhancing our ability to recommend
solutions and strengthening our sales network so as to elevate Epson’ s positioning in niches where we want
to strengthen our presence, such as high-lumen projectors and short-throw lens projectors. Epson’ s
smartglasses have the potential to change the way we live and work. Offering a see-through display and
hands-free navigation, they give Epson an opportunity to create new applications and new value for both
commercial and consumer markets.
Micro-devices and Precision Products Businesses
In these businesses we will use unique, boundary-breaking technologies to continue creating products that
only Epson can. The micro-devices business has shored up its profit structure by revamping its product
portfolio and cost structure. Going forward, we will secure steady income in this business by being a leader
in miniaturization and performance and by creating products that provide customer value. The precision
products business, underpinned by unique technology, will strive to improve profitability going forward by
strengthening its lineup of high-added-value products such as GPS and high-end luxury watches and by
growing its small yet highly profitable metal powder and surface finishing businesses.
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