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Integrated Report 2019 Report Integrated Group Epson Epson Group Integrated Report 2019 Epson Group Integrated Report 2019 3-3-5 Owa, Suwa, Nagano 392-8502, Japan TEL: +81-266-52-3131 https://global.epson.com Rev.03 Epson derives its strength from its efficient, compact, and precision technologies, an approach to customer needs that is defined by integrity and effort, and a spirit of creativity and challenge that fuels a desire to exceed expectations. Value Proposition Value Creation Infrastructure Editorial Policy booklet Web Management Philosophy ......................................... １ Improve the Quality of Products and Services ..... 41 This report provides important information information IR to shareholders, investors, and other ● Annual Report (PDF) A History of Value Creation .................................... ３ Strengthen Supply Chain Management .............. 43 stakeholders about Epson’s sustainability ● Investor Relations Value Creation Story ................................................. ５ Strengthen Governance ......................................... ４５ and growth potential by covering topics https://global.epson.com/IR/ Feature Article: Contributing to Sustainability ...... ７ Achieve Sustainability in a Circular Economy .. 57 such as Epson’s business strategies, financial Respect Human Rights and Promote Diversity ......... 61 performance, and ESG activities. Editorial ● Integrated Report Value Creation Strategy decisions in the preparation of this report information CSR (booklet & PDF) Materiality ................................................................. 63 were based on the principles outlined in ● Social Responsibility Message from the CEO ......................................... 11 Key CSR Themes and the 17 SDGs ..................... 65 “Guidance for Collaborative Value Creation” Epson 25 Corporate Vision .................................. 17 from the Japanese Ministry https://global.epson.com/SR/ Fact Data of Economy, Trade and The Epson 25 Phase 2 Mid-Range Business Plan .... 19 ● Sustainability Report (PDF) Industry and on the Message from the CFO ......................................... 23 Financial and Non-Financial Highlights ............. 67 “International Integrated Message from the CTO ......................................... 25 Consolidated Financial Highlights ...................... 69 Reporting Framework” from Epson has also been working to improve communication with Information Business Segment Overview ................................ 27 Global Network ...................................................... 71 the International Integrated stakeholders by publishing a Sustainability Report and providing Disclosure Inkjet Innovation ..................................................... 29 Group Outline ......................................................... 73 Reporting Council (IIRC). information on its websites and in other media. Visual Innovation ..................................................... 33 Shareholder and Share Information ................... 74 Period covered: April 1, 2018 to March 31, 2019 (Some information may be from other periods.) Wearables Innovation ............................................ 35 Coverage: 85 Epson Group companies (including Seiko Epson Corporation) Disclaimer Note: “Epson” refers to the Epson Group, unless indicated otherwise. Robotics Innovation ................................................ 37 This report includes forward-looking statements, estimates, and * Epson applies International Financial Reporting Standards (IFRS). However, Japanese accounting standards were used for financial figures from Microdevices Supporting the Four Areas of Innovation .. 39 plans. Projections herein are based on the best information available at the time of publication. Actual results may vary from the 2013 fiscal year and earlier. The term “business profit,” as used in this report, is very similar to operating income under Japanese accounting those discussed. standards (J-GAAP), both conceptually and numerically. Please do not use images and other content in this report without permission. 1 Epson Group Integrated Report 2019 Epson Group Integrated Report 2019 2 A History of Value Creation 2008 A Large-Format Printer with Stunning Image Quality for Epson has evolved and expanded over the decades while passing Signage and Displays on its DNA as a product developer and manufacturer. 2009 2016 2017 The six-axis robot that expanded the An office papermaking A high-speed linehead inkjet MFP Value Proposition scope of tasks performed and system that recycles that prints up to 100 sheets per Since 1942, we have produced numerous pioneering products. These products came from the same source: a storehouse accelerated automation paper on site minute (A4, landscape, single-side) of efficient, compact, and precision technologies, an approach to customer needs that is defined by integrity and effort, and a spirit of creativity and challenge that fuels a relentless desire to exceed customer expectations. Epson remains com- mitted to creating products and services that exceed customer expectations and that change the world. Integrity and Effort & 1980 1990 1994 Ahead of its time: A A printer for PC-POS The high-speed inkjet small, lightweight 1983 systems that created printer that enabled home Strengthening Creativity and Challenge computer printer A precision a new market photo printing assembly robot - business Epson’s first structure Meet customer expectations and 1956 1968 commercialized factory automation A mechanical watch with The world’s first Value Creation Strategy product an original design that miniature digital printer, become indispensable became the basis for from which the Epson Epson’s watch business brand was born Creativity and Challenge Expansion Diversification of products and businesses period Business derived from watch and timekeeping Revenue Profit 1 technologies* 2016 2018 (Billions of yen） (Billions of yen） 2010 1,500 200 A high-capacity ink tank High-brightness laser The digital inkjet textile printer Integrity and printer that slashed projector for events, that accelerated the digitization printing costs signage, and other spatial of the textile printing market staging and performances Effort Value Creation Infrastructure Early 1971 1988 2017 Revenue 1,200 period Watch and printer The watch chip that 2011 150 technology launched Epson’s The world’s first Binocular, Analog watches Business Profit semiconductor business color liquid See-through combining development crystal panel Smart Glasses leading-edge module for technology and 900 1969 1973 video cameras 1994 artisan skill The quartz watch*2 that The world’s first* digital The LCD projector revolutionized quartz watch*2 with a that changed the 100 horological history six-digit LCD way presentation are given 600 1963 1963 The first electronic recording The world’s first 50 system for sporting events, portable, high-accuracy, Epson’s Revenue and Business Profit Trend 300 measurable to 1/1000 battery-operated quartz Figures after the FY2003 IPO have been audited. Those prior to that have not. seconds timer Figures through FY2012 were calculated based on Japanese accounting 1942 * Per Epson research at the time of announcement 200 standards. Founded *1 Crystal devices, printers, LCD panels TSE IPO Those from FY2013 are based on IFRS. *2 Products are registered as Essential Historical Materials for Science and Technology by the National Museum of Nature and Science. 0 0 1970 1990 199 2000 200 2010 201 201 年度 Fact Data Origin of Epson’s efficient, compact, Brand establishment and growth Global pioneer Surging ahead Contributing to global solutions and precision technologies into a multinational corporation in environmental action into a new era Daiwa Kogyo Ltd. was established in 1942. Numerous In 1975, the Epson brand and the first overseas In 1992, CFCs were eliminated from our production In 2003, Seiko Epson shares were Epson continues to develop new technologies such as those used in the PaperLab A-8000 ground-breaking products were created by applying the sales company were established, followed by other processes in Japan. Behind our pioneering environ- listed on the Tokyo Stock Exchange. (2016). Under the Epson 25 Corporate Vision, we aim to create a new connected age of company’s efficient, compact, and precision manufactur- global sales organizations. In 1989, the Epson mental actions was a conviction that conservation In 2005, the “Exceed Your Vision” people, things, and information with efficient, compact and precision technologies. ing technologies. Group’s Management Philosophy was established. was our only hope for prospering as a company. global tagline was established to build the brand worldwide. FY2018 Grand Prize for Excellence in Energy Efficiency and Conservation (Product Category & Business Model Category) Sponsor: The Energy Conservation Center, Japan Won the Economy, Trade and Industry Won the 2018 Grand Prize Minister’s Prize in the 1st Eco Products for Excellence in Energy A monument New factory in the Philippines with a rooftop Awards category： Efficiency and Conservation： Daiwa Kogyo Ltd., Epson America, Inc., Epson’s Epson, winner of the Stratospheric Ozone Layer Protection Seiko Epson shares listed commemorating founder mega-solar power plant with a maximum output PaperLab office papermaking system High-speed linehead inkjet the predecessor of Seiko Epson (1942) first overseas sales company (1975) Award from the U.S. Environmental Protection Agency (1992) on Section 1 of the TSE (2003) Hisao Yamazaki of 3,000 kW of power (2017)
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