Seiko Epson Corporation 2020/2021

Issued date: August 20, 2020

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

SEIKO EPSON CORPORATION 2020/2021 2 See more 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 See more 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

SEIKO EPSON CORPORATION 2020/2021 5 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

SEIKO EPSON CORPORATION 2020/2021 6 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

SEIKO EPSON CORPORATION 2020/2021 8 Financial Performance and Business Size FY2019

Profit for the year ¥1,043.6 Business ¥40.8 attributable to owners ¥7.7 Revenue *1 billion profit 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 See more 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】 ○ High-capacity ink tank printers boast outstanding environmental performance and formidable cost advantages, SOHO & home 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.

SEIKO EPSON CORPORATION 2020/2021 10 See more Explore our product lines Business Profile: Printing Solutions https://epson.com/

● 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 See more 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 & ○ We are lowering the barriers to automation and Industrial 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/

● Microdevices and Other Businesses 【】【】 Timing device Customer segment Actions 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 timing and sensing solutions and low-power crystal oscillator (TCXO) clock module oscillator Industrial 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 Superfine alloy powders Au-Sn alloy Photo-etched PCBs plated wafer boards.

SEIKO EPSON CORPORATION 2020/2021 14 See more 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.

SEIKO EPSON CORPORATION 2020/2021 15 See more 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 Projectors1st 1st portfolio & names us a formidable competitive advantage. Robotics 2nd

Crystal devices 1st

Improve the brand image US Secure profit Inkjet printers 1st 957 We continue to build a portfolio that Projectors 1st 624 affords solid protection of value-creating 485 474 core technologies, original designs, and Robotics 2nd 91 branded trademarks. Crystal devices 3rd This enables us to maintain and build the Epson Company A Company B Company C Company D Company E * 2019 ranking based on the number of * As of March 10, 2020, per Epson research competitive advantage of our own brands * The number of Piezo printhead-related patents registered in Japan, patents opened to the public per Epson the U.S., China, and Europe since April 1, 2000 and to sustain stable business operations. research from 2019/1/1 to 12/31

SEIKO EPSON CORPORATION 2020/2021 16 See more 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.

SEIKO EPSON CORPORATION 2020/2021 17 See more 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

SEIKO EPSON CORPORATION 2020/2021 18 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 Head Office 3-3-5 Owa, Suwa-shi, Nagano, Japan Sakata Plant / Tohoku Epson Corporation / 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

SEIKO EPSON CORPORATION 2020/2021 19 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. SEIKO EPSON CORPORATION 2020/2021 20