Epson 2015 Annual Report Download - page 22

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21
The central region of Nagano Prefecture, home to some of our key plants and offices, has numerous cities and
towns designated as “Areas Requiring Enhanced Measures to Respond to Disasters” due to the high risk of a
large-scale disaster in the event of an earthquake in the Tokai region. Moreover, an active fault line traces the
Itoigawa–Shizuoka geotectonic line through the middle of the Nagano Prefecture region.
We revised our earthquake-response policy after the new designation of Areas Requiring Enhanced Measures to
Respond to Disasters in April 2002, and we planned disaster drills, prepared earthquake disaster management
and response plans, and established business continuity plans to mitigate the effects of disasters to the extent
possible.
However, if a major earthquake occurs in the central Nagano Prefecture region, it is possible that, despite these
countermeasures, the effect on Epson could be extreme.
Although Epson is insured against losses arising from earthquakes, the scope of indemnification is limited.
18. Laws, regulations, or licenses and the like pose risks for Epson.
Epson is a multinational corporation with a variety of business operations around the globe. We ensure
compliance with the laws and regulations of the countries in which we operate by building a robust compliance
framework in each country and each business and by communicating the nature and importance of compliance
requirements internally. To expand our businesses in the future, we must strengthen our sales and marketing
activities that target new customers, including public institutions, and we must develop new areas, such as the
health and medical markets, where legal, regulatory, and compliance requirements are extremely strict.
Compliance remains high on our list of important management issues, and we are developing measures to
prevent and control potential issues as appropriate. However, if we were to violate or potentially violate laws
and regulations relating to, among others, corruption, advertising and labeling, personal data and privacy
protection, or if the authorities were to introduce stricter laws and regulations or impose more stringent laws,
we could see our credibility damaged, could become subject to the imposition of a large civil fine, could see
constraints placed on our business activities, or could see the costs of complying with such laws and
regulations increase. Any of the foregoing could adversely affect our financial performance and future business
development.