Seiko Epson Corporation 2020/2021

Issued date: August 20, 2020

© SEIKO EPSON CORPORATION 2020. All rights reserved.

Squarely Facing Societal Issues and
Providing New Value
Epson's strength lies in the efficient, compact, and precision technologies
it has continued to develop since its founding and in the company
culture, which prizes integrity and effort when approaching customer
needs and emphasizes an atmosphere of creativity and challenge that
fuels a desire to exceed customer expectations.

Epson is currently striving to advance the frontiers of industry and to

achieve sustainability in a circular economy. We have at our disposal
powerful inkjet technology and other efficient,
compact, and precision technologies that help
to mitigate environmental impacts and
increase productivity. We believe that these
technologies and the new value created by
them can play a major role in solving societal
issues and in achieving the Sustainable
Development Goals of the United Nations.
The 14 SDGs that Epson can
most directly help to achieve
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Corporate History
The Course of Epson Group Progress https://global.epson.com/company/corporate_history/

Epson has always used its original technology to

create new value and change the way we live and work

A dry-process office
papermaking system that
recycles paper right on site
World's first quartz watch Inkjet printers 3LCD data projectors A SCARA robot that
helps to accelerate
1942 1969 1994 2010 to the present automation

It all began Brought accurate Enabled people to print Transformed Creating new value that
with timepiece time to everyday life photos at home presentations exceeds customer expectations
manufacturing

At the time, At the time, At the time,

mechanical watches would photos were printed presentations used

normally gain or lose many at photo shops. handouts and OHPs.
seconds per day. A digital inkjet textile printer
that accelerates the digitization of
the textile printing market

SEIKO EPSON CORPORATION 2020/2021 3

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Management Message
Management Message https://global.epson.com/company/message/

We are committed to solving societal issues and

to being a company where work is fun and fulfilling

We at Epson have always exercised creativity and challenged ourselves to deliver products
and services that exceed the expectations of our customers around the world by drawing
on the efficient, compact, and precision technologies we have developed since our
company was founded in 1942.

To continuously create new value that exceeds customer expectations and to deliver it
worldwide, we will create new markets by collaborating with business partners and
embracing open innovation. We will work with others who share our aspirations of using
Epson's technologies to create new, environmentally conscious products and services and
rapidly meet the needs of even more customers. And, we will use our global network to
deliver valuable services to markets and customers around the world.

Epson Group employees, a global workforce of 70,000, hold the key to achieving this. To
unlock the full potential of our people, we will cultivate an environment that encourages
free and open communication. We will build a dynamic global team where individuals
pool their knowledge and experience, maintain a healthy sense of urgency, and feel a
sense of enjoyment and fulfillment.
Yasunori Ogawa
President and CEO
Seiko Epson Corporation

SEIKO EPSON CORPORATION 2020/2021 4

Epson's Value Creation Story

Solving societal issues by leveraging Epson's strengths to drive innovation

Assets of strengths Priority issues Goals

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Value Creation Story: The Value Proposition

Transforming the Office Environment

Create eco-conscious offices that
recycle printed materials right on site
POINT.1 | Inkjet printers offer superior environmental performance at a far lower cost.
.2 | Recycle used paper and make new paper right on site with
an office papermaking system.
Value proposition
> Enrich paper-based communication at sharply lower cost and
environmental impact
> Contribute to the conservation of forest and water resources
through in-office paper recycling
> Maintain information security by dissolving paper into fibers
Related video: How to use the PaperLab A-8000
https://youtu.be/2dogZsV9Ns4

Communicate smoothly with remote sites

POINT.1 | Projectors are portable and can project images on a wall, pillar, ceiling, or other
surface to enable visual communication in all kinds of places.
.2 | Big screen images are sharp and clear even when materials and people are
projected simultaneously on a split screen.
.3 | Interactive features allow you to share and notate projected documents and images.
Value proposition

> Foster a sense of unity with face-to-face communication

> Speed up information sharing and increase productivity
> Minimize wasteful travel, reduce CO2, and save time

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Value Creation Story: The Value Proposition

Transforming the Production Floor

Lower the barriers to automation
POINT.1 | Compact robots can work in the same space as humans with no
changes to production lines.
.2 | Force sensors allow robots to perform tasks with human-like touch.
.3 | Use image processing to enable numeric sensory testing.
.4 | Enable easy teaching.
Value proposition

> Offer easy installation in existing production lines

> Automate processes that relied on human touch and sight
> Ensure stable and continuous factory operation by automating production lines
> Realize a safe working environment
Related video: Manufacturing underpinned by Epson robots
https://youtu.be/BNYQxabF-Wc

Achieve efficient, low-resource processes

POINT.1 | Respond to small-lot production without printing plates.
.2 | Involve fewer processes and no ink mixing.
.3 | Reduce waste ink, and eliminate washing water as there are no plates.
.4 | Need less frequent contact with chemicals.
Value proposition

> Printing that flexibly adapts to demand fluctuations and rapid turnarounds,
reducing dead stock and disposal losses
> Reduce waste ink and water used for washing printing plates
> Reduce space for storing plates and work in process
> Offer a clean and safe printing environment
SEIKO EPSON CORPORATION 2020/2021 7
The Corporate Vision and Mid-Range Business Plan
Our goals for 2025
The Epson 25 Corporate Vision Vision statement

Creating a new connected age of people, things

and information with efficient, compact and
precision technologies

Advances in information and communications technology mean increasing amounts of

information will become available on the internet, and so-called cyber space will continue to
expand. Epson believes that products acting as the interface between cyber space and the
actual or real world where customers operate will be of critical importance. As a company that
specializes in generating value in the real world, Epson’s vision is to create a new connected
age of people, things and information by leveraging its efficient, compact and precision
technologies to drive innovation in four areas.

Epson 25

Mid-Range Business Plan

FY2016-2018 FY2019-2021 Second phase
First phase Second phase Third phase
● Prepare foundation & products ● Transform business operations ● Establish a high profit structure
to achieve high profitability

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 Financial Performance and Business Size

FY2019

Revenue
¥1,043.6 Business ¥40.8 Profit for the year
¥7.7
billion
attributable to owners
profit*1 billion of the parent company
billion
Revenue breakdown*2
Printing solutions Visual Wearable products &
communications industrial solutions
¥708.6 bln ¥183.3 bln ¥152.9 bln
Printers Professional Printing Wearable Products ¥44.0 bln

Others Robotics Solutions ¥21.2 bln

Microdevices, Other ¥92.9 bln

¥482.5 bln ¥197.9 bln ¥28.2 bln

*1 Business profit is very similar to operating income un¥der Japanese accounting standards, both conceptually and numerically. *2 Revenue amounts for the businesses include intercompany transactions.
It is calculated by deducting the cost of sales and selling, general and administrative expenses from revenue.
SEIKO EPSON CORPORATION 2020/2021 9
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Explore our product lines
Business Profile: Printing Solutions https://epson.com/

Product Lineup
SDGs to which business contributes
Office and home inkjet printers, commercial and industrial inkjet printers,
POS printers, laser printers, dot matrix impact printers, scanners, label printers,
PaperLab office papermaking systems, and printheads

● Printer business

High-capacity ink tank High-speed linehead inkjet Receipt printer

inkjet printer multifunction printer

【Customer segment】 【Actions】

SOHO & home

○ High-capacity ink tank printers boast outstanding environmental performance and formidable cost advantages,
making them perfect for small offices, home offices, and larger offices. These printers help our customers be more
productive by alleviating the stress and hassles that come with frequent ink replacements.
Office & business
○ Epson provides products and solutions that enhance the productivity of customers regardless of business sector or
business type.

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Explore our product lines
Business Profile: Printing Solutions https://epson.com/

Product Lineup
SDGs to which business contributes
Office and home inkjet printers, commercial and industrial inkjet printers,
POS printers, laser printers, dot matrix impact printers, scanners, label printers,
PaperLab office papermaking systems, and printheads

● Professional printing business

Large-format dye-sublimation
Large-format printers for signs and displays transfer printers for textiles Digital textile printers
Inkjet printheads
【Customer segment】 【Actions】

Commercial & ○ We are contributing to greater efficiency and shorter delivery times in commercial and industrial printing with
Industrial products that offer outstanding image quality and productivity.
○ We provide total support for printing with software solutions.
○ We will expand the world of digital inkjet printing by selling our printheads to our partners.

SEIKO EPSON CORPORATION 2020/2021 11

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Explore our product lines
Business Profile: Visual Communications https://epson.com/

Product Lineup
SDGs to which business contributes
Projectors and smart glasses

● Visual communications business

Compact models Ultra-short throw wall- High-brightness models Smart glasses

mounted models

【Customer segment】 【Actions】

SOHO & home ○ We are expanding the potential for visually communicating thoughts, ideas, and excitement via big-screen projected
images in various settings in business and everyday life.
Office & business ○ We provide an amazing and unprecedented visual experience with smart glasses that deliver life-like augmented reality
in which digital information blends seamlessly with the real world. In addition to various personal uses, our smart glasses
Commercial & help to enhance safety and efficiency in factory and enterprise operations.
Industrial

SEIKO EPSON CORPORATION 2020/2021 12

 See more
Explore our product lines
Business Profile: Wearable & Industrial Products https://epson.com/

Product Lineup
SDGs to which business contributes
watches, sensing devices, Industrial robots, IC test handlers, force sensors,
crystal devices (for network devices and consumer, industrial, and automotive applications), and
semiconductors, Superfine alloy powders, Surface finishing

● Wearable products business

【Customer segment】 【Actions】

Personal ○ We leverage our watchmaking heritage, refine

leading technology, and offer a sense of status
and fashion.

The Seiko
business

● Robotics solutions business

【Customer segment】 【Actions】
Force sensor Commercial &
Industrial ○ We are lowering the barriers to automation and
responding to a wide range of needs with
solutions that combine robotics and sensing
6-axis robots technologies derived from our efficient,
compact, and precision technologies.
Lineup introduction video: https://youtu.be/t_WRpKH2I8I
SCARA robots

SEIKO EPSON CORPORATION 2020/2021 13

 See more
Explore our product lines
Business Profile: Wearable & Industrial Products https://epson.com/

Product Lineup
SDGs to which business contributes
watches, sensing devices, Industrial robots, IC test handlers, force sensors,
crystal devices (for network devices and consumer, industrial, and automotive applications), and
semiconductors, Superfine alloy powders, Surface finishing

● Microdevices and Other Businesses

【Customer segment】 【Actions】
Timing device
Office & business ○ We will contribute to the development of smart
communications, power, transportation and
Commercial & manufacturing systems with advanced quartz
Temperature compensated Real-time Programmable
oscillator Industrial timing and sensing solutions and low-power
crystal oscillator (TCXO) clock module
semiconductor solutions.
Sensing device Semiconductors
○ Epson develops high-performance superfine
powders that are used as raw material in items
such as electronic components. These powders
are produced using our original atomization
Gyrosensor Inertial measurement unit LCD Application-specific
(IMU) controller integrated circuit (ASIC) process.

○ Epson leverages its thin-film deposition and

photo-etching technologies to provide the
仮 electronics, semiconductor, automotive, medical
and other industries with surface-finished goods
(e.g., gold-tin alloy plating on wafers and
decorative watch bands) and printed circuit
Au-Sn alloy
Superfine alloy powders
plated wafer
Photo-etched PCBs boards.

SEIKO EPSON CORPORATION 2020/2021 14

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Technology Vision
Epson’s Vertically Integrated Business Model https://global.epson.com/innovation/vision/

Delivering timely products and services that exceed customer expectations through
vertical integration, collaboration, and open innovation

Epson is a vertically integrated company that

leverages its core technologies to plan, design,
and manufacture its own finished products.
We also embrace collaboration and open
innovation to meet the diverse needs of
customers and achieve a sustainable future.

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Intellectual property
Intellectual Property Activities Supporting Innovation https://global.epson.com/innovation/intellectual_property/

In addition to patents, we are following an intellectual property mix strategy that protects our designs
with design rights and the names of our core technologies with trademarks. We protect our original core
technologies, which are an important asset in advancing our strategy, with a huge number of patents.
Patent Portfolio ● Patent Application ● Number of Piezo Printhead-Related Patents Owned
Ranking by Area

Piezo printheads are a core device in the

Japan printing sector. We own more patents
related to these printheads than anyone
Inkjet printers 1st 3,490
Design rights Trademark portfolio else in the industry, and this IP has given
Technology brands
portfolio & names
Projectors1st 1st us a formidable competitive advantage.
Robotics 2nd

Crystal devices 1st

Improve the brand image

Secure profit US

Inkjet printers 1st 957

We continue to build a portfolio that
624
affords solid protection of value-creating Projectors 1st 485 474
core technologies, original designs, and Robotics 2nd 91
branded trademarks.
Crystal devices 3rd
This enables us to maintain and build the Epson CompanyA CompanyB CompanyC CompanyD CompanyE
competitive advantage of our own brands * 2019 ranking based on the number of * As of March 10, 2020, per Epson research
patents opened to the public per Epson
and to sustain stable business operations.
* The number of Piezo printhead-related patents registered in Japan,
the U.S., China, and Europe since April 1, 2000
research from 2019/1/1 to 12/31

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Our People
Our People https://global.epson.com/SR/our_people/

Our people in technical and staff positions actively support the provision of value across our
vertically integrated global operations, which encompass everything from product planning
to sales.

We aim to achieve the Epson 25 Corporate Vision by harnessing the collective

strength of Epson employees, who are positioned to maximize their talents.

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Operations Divisions and Group Companies
Global Network https://global.epson.com/company/global_network/

We have research and development sites, production sites, and sales and service sites
around the world to enable us to accurately capture customer needs and respond
quickly and flexibly to them.

Asia/
Oceania Japan
27% 24%
Revenue by
region
Europe ¥1,043.6 The Americas
21% billion 28%
（FY2019)

Seiko Epson Head Office Japan

Regional head office 25%
Production company
Sales & service site
Consolidated The Americas
R&D site
employees by 4%
Seiko Epson branch Asia/ region
Oceania 78,739
68% (as of 2020/3/3) Europe
Group companies (as of 2020/3/3) 3%
85 companies (includes parent company)
Japan: 18 Overseas: 67

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Corporate Outline

Chitose Plant
Head Office, Domestic
Company Name Seiko Epson Corporation
Business Sites and Main
Group Companies Epson Atmix Corporation
Founded May 18, 1942 Plant or office
Akita Epson Corporation
Group company
Sakata Plant / Tohoku Epson Corporation /
Head Office 3-3-5 Owa, Suwa-shi, Nagano, Japan Epson Repair Epson Swan Corporation
Corporation
Paid-in Capital ¥53,204 million Osaka Office Tokyo Office / Epson Sales Japan Corporation

Shinko Sellbic Corporation

The origin of the Epson name Miyazaki Epson Epson X Investment Corporation
Corporation
Hino Office

EP+ SON = 「EPSON」 Nagano Prefecture

The Epson brand name comes from the EP-101, an electric printer Toyoshina Plant Matsumoto Plant /
that kicked off t he company’s expansion into the information Epson Service Corporation
equipment business. The“ Ep” stands for“ electric printer” and the“
son” represents our desire to follow t he original electronic printer Kanbayashi Plant
with many more worthwhile products and services in a variety of Epson Avasys Corporation
fields. Matsumoto Minami Plant
Hirooka Office
Head Office
Shiojiri Plant
Epson Mizube Corporation
Epson Direct Corporation
Suwa Minami Plant

The EP-101, the world's first Ina Plant Fujimi Plant

miniature digital printer

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Epson's public website Epson's official video channel
https://global.epson.com/ https://www.youtube.com/user/epsoncorp/

See for more company and product information. See videos for more company information,
commercials, etc.
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