Pledge to invest ¥280 billion (US$1.76bn) over three-year period in growth domains including precision innovation and industrial & robotics sectors
  
Dubai, UAE: Seiko Epson Corporation (TSE: 6724, "Epson") has unveiled ENGINEERED FUTURE 2035, a long-term corporate vision that maps out the company's strategy to 2035, along with a new mid-term business plan (2026-2028) that represents the first phase of work under the vision. In line with this plan, Epson will use Return on Investment Capital (ROIC) as a management metric to optimise capital allocation, redesign its business portfolio, and focus resources on strategic growth domains. By transforming the earnings base and leveraging precision technologies to expand in growth domains, the company aims to sustain corporate value growth.

Epson sees the next decade as one in which volatility is the norm. Environmental and geopolitical risks will rapidly change, resources and energy will be increasingly constrained, and demographic changes will result in labor shortages worldwide. Meanwhile, emerging economies face critical challenges to develop foundational capabilities such as skills, education and infrastructure.

Under these conditions, sustainability will increasingly depend on how effectively society and the industry use limited resources, energy, and human potential. It is precisely because of the many constraints that Epson believes the future must be methodically engineered, starting with technology that is conceived in the field and continuously refined and implemented in the real world.

That is why Epson seeks to leverage the efficient, compact, and precise technologies and philosophy it has developed over more than eight decades, building on the foundation of "Sho-Sho-Sei," to create value that supports the transformation of society and industry through real-world implementation.

Epson will deliver new value to the world by combining its technologies with designs optimised for real-world uses. From industry and across learning, working, and living, the company will enhance productivity and reliability and expand the world's possibilities. Simultaneously Epson will raise both social value and corporate value so that people and the planet can continue to advance together.

Mid-Term Business Plan, Phase 1 (2026-2028)
Epson's Mid-Term Management Plan, Phase 1 (2026-2028), is the first stage of the company's journey toward realising the ENGINEERED FUTURE 2035 long-term vision.

Epson will transform the earnings base and focus resource allocation on growth domains. Management will emphasise capital efficiency. By exercising disciplined ROIC-based management, Epson will aim to achieve a ROIC of 8% by fiscal 2028, and build a solid foundation for sustainable growth.

Epson will review its fixed cost structure and asset efficiency, redesign global operations and the supply chain, and strengthen sales in emerging markets. It will simultaneously expand and enhance recurring business and solutions. These efforts will enable Epson to reduce invested capital while enhancing the earning power of its businesses. At the same time, the company will prioritise the allocation of the cash generated to future growth domains, accelerating the transformation of its business portfolio. Capital will be optimally allocated, with investment and business decisions made based on disciplined ROIC.

Cash created through this transformation of the earnings base will be actively deployed, under disciplined capital allocation, to projects that maximise long-term value creation. In addition to strategic investments such as mergers and acquisitions, Epson will invest a total of ¥280 billion (US$1.76bn) over the three-year period in growth domains, including in the Precision Innovation segment as the primary growth engine and the Industrial & Robotics segment, which will be a key growth driver for the next phase.
 
New Business Segments
The Precision Innovation segment will play the role of growth engine. The role of Industrial & Robotics will be to generate robust growth in Phase 2. The role of the Office & Home Printing segment and Visual & Lifestyle segment is to generate steady cash.

• Precision Innovation
Inkjet solutions business, microdevices business, Epson Atmix

• Industrial & Robotics
Commercial & industrial printing business, robotics business

• Office & Home Printing
Office and home IJP business

• Visual & Lifestyle
Visual products business, wearable products business, PC business

Shareholder Returns
Under the Phase 1 plan, Epson will actively invest capital in growth domains, which will also include strategic investments. At the same time, we will boost shareholder returns by setting a minimum dividend level at a 3% DOE and, together with flexible share buybacks, more proactively deliver shareholder returns.
 
* For details about the ENGINEERED FUTURE 2035 Long-Term Corporate Vision and Mid-Term Business Plan, Phase 1, please see the investor information on Epson's website.
corporate.epson/en/investors/publications/presentations.html

About Epson
Epson is a global technology leader whose philosophy of efficient, compact and precise innovation enriches lives and helps create a better world. The company is focused on solving societal issues through innovations in home and office printing, commercial and industrial printing, manufacturing, visual and lifestyle. Epson's goal is to become carbon negative and eliminate use of exhaustible underground resources such as oil and metal by 2050.

Led by the Japan-based Seiko Epson Corporation, the worldwide Epson Group generates annual sales of more than JPY 1 trillion.

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