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Sustainability Report 2013

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Sustainability Report 2013 Epson Group Sustainability Report 2013 April 2012 - March 2013 Epson conducts its business activities with the aim of becoming a company that is indispensable to customers and society. These activities are rooted in our Management Philosophy and in the employee mission underpinning the "EXCEED YOUR VISION" tagline. Epson Sustainability Report 2013 Editorial Policy This report describes Epson’s CSR initiatives oriented around the Epson Management Philosophy. In compiling this report, we placed the customer at the top of our target audience. In addition, we used the words of the employees who are actually carrying out the activities whenever possible so they can convey their thoughts directly to our stakeholders and reaffirm a sense of pride in the work they do. The feature article titled “Epson’s DNA” describes how our compact, energy-saving, and high-precision technologies and mind-set, which have taken shape over 70 years in business, live on in our manufac- turing and skills development and how they inform our environmental contributions and the creation of customer value. In addition, the “Customer Commitment” section starts the feature articles on the theme of “pursuing customer satisfaction”. 1 Epson Group Sustainability Report 2013 Contents Overview of the Epson Group 3 To Our Stakeholders 5 Reporting Period Business Vision 7 April 2012 to March 2013 Note: Contains some information on activities conducted after March 2013. FeatureFeature ArticleArticless 9 Scope This report describes the sustainability efforts of Seiko Epson Corporation Tracing the Roots of and 96 consolidated subsidiaries. The scope of environmental reporting, however, covers Seiko Epson Corporation, 9 affiliates in Japan and 38 Epson’s DNA affiliates overseas. Note: “Epson” refers to the Epson Group, unless indicated otherwise. 11 Organizational Changes in This Reporting Period Italy-Proven Epson CoreCore TechnologyTechnology ● Addition of one consolidated subsidiary InkjetI kj t TTextiletil PPrintingi ti RReducesd ● Removal of two consolidated subsidiaries Environmental Impacts Refer to the following website for details on changes to the Epson Group. Full year ended March 31, 2013 http://global.epson.com/IR/financial_results/ 13 MarshalingMarshaling thethe PowerPower ooff Referenced Guidelines TechnologiesThl i Originating Oiiti 1 ● GRI Sustainability Reporting Guidelines v3.1 in the Watch Business and ● Environmental Reporting Guideline issued by the Japanese Ministry of Honed Over 70 Years Environment (2012) ● ISO 26000:2010 / JIS Z 26000:2012 (Guidance on social responsibility) 15 1 Global Reporting Initiative: This international organization creates global guide- Epson’s evolving lines that organizations can use to measure and report their economic, environ- low-power GPS modules mental, and social performance. Developing Modules as Memberships Users OOurselvesurselves ● Global Compact Japan Network ● Life Cycle Assessment Society of Japan 17 ● Japan Portable Rechargeable Battery Recycling Center Using Invisible Assets to ● Japan Electronics and Information Technology Industries Association ● Japan Business Machine and Information System Industries Association Give Concrete Shape to ● Communications and Information Network Association of Japan Customer Value ● Japanese Business Federation (Nippon Keidanren) Previous Reports CSRCSR ManagementManagement Epson has been publishing a report every year since 1999. In 2003, the name of the report was changed from Environmental Report to Sustainabil- CSR at t Epson E 19 ity Report. Customer Commitment Next Scheduled Report July 2014 Commitment to Customer Satisfaction 23 25 Customer Value Delivered by Epson Commitment to Environmental Conservation Inquiries about Sustainability Report 2013 Preserving the Natural Environment 33 Seiko Epson Corporation Individuality and Teamwork PR&IR Department 3-3-5 Owa, Suwa-shi, Human Development at Epson 39 Nagano-ken, Japan 392-8502 Tel: +81-266-52-3131 (main) Occupational Safety and Health 43 CSR activity website Trusted Throughout the World http://global.epson.com/SR/ Organizational Governance 45 Sustainable Procurement 49 Prospering with the Community Disclaimer Corporate Citizenship This report includes forward-looking statements, estimates, and 51 plans based on the information available at the time of publica- Communication 54 tion. Actual results may be different from those discussed. Worldwide Recognition / Reader Feedback 57 Epson Group Sustainability Report 2013 2 Overview of the Epson Group Company Profile (As of March 31, 2013) ● Company Seiko Epson Corporation ● Capital ¥53,204 million ● Founded May 18, 1942 ● Number of Employees ● Head Office 3-3-5 Owa, Suwa-shi, Consolidated: 68,761 Nagano-ken, Japan 392-8502 Parent Company: 11,902 ● Group Companies 96 (including Seiko Epson Corp.) Americas Regional Sales ¥200.3 billion Employees 2,346 Europe Regional Sales ¥175.2 billion Employees 2,153 Japan Regional Sales ¥266.6 billion Employees 18,234 Asia & Regional Sales ¥209.1 billion Oceania Employees 46,028 Regional headquarters Sales/service site Production site Development site Representative office/branch Asia & Japan Affiliates in Japan (20 total) Affiliates Overseas (75 total) Oceania 25% 30% Epson Sales Japan Corporation Epson America, Inc. Percentage of Net Sales Epson Direct Corporation Epson Europe B.V. by Region (April 2012 to Tohoku Epson Corporation Epson (China) Co., Ltd. March 2013) Akita Epson Corporation Epson Singapore Pte. Ltd. Europe Americas 21% 24% 16 others Epson Engineering (Shenzhen) Ltd. Singapore Epson Industrial Pte. Ltd. Japan P.T. Indonesia Epson Industry 27% Epson Precision (Philippines), Inc. Percentage Americas of Employees 3% 67 others Asia & by Region Oceania Europe 67% 3% Consolidated Results Highlights Net Sales ¥851.2 billion Operating Income ¥21.2 billion Net Income -¥10.0 billion (billions of yen) (billions of yen) (billions of yen) 1,200 40 20 1,122.4 1,000 985.3 973.6 32.7 10.2 30 10 877.9 851.2 5.0 800 24.6 21.2 0 -111.3 -19.7 -10.0 20 18.2 600 -10 400 10 -20 200 0 -1.5 0 March March March March March March March March March March March March March March March 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 3 Epson Group Sustainability Report 2013 FY2012 Performance by Business Segment Information-Related Equipment Segment Net Sales Segment Income (billions of yen) (billions of yen) Net Sales: ¥688.0 billion (down 0.5% Y/Y) % net sales 691.8 688.0 64.8 Segment Income: ¥52.6 billion (down 18.8% Y/Y) 81.3% 52.6 Printer Business Inkjet printers, page printers, dot-matrix printers, large-format printers, printer consum- ables, color image scanners, mini-printers, POS systems products, etc. Visual Products Business 3LCD projectors, HTPS TFT LCD for projectors, handheld label printers, etc. March March March March 2012 2013 2012 2013 Miscellaneous Personal computers, etc. InkjetInkjet printersprinters Business inkjet printers Large-format printers Scanners High-temperature See-through polysilicon TFT LCD mobile viewers Dot-matrix printers Mini-printers Digital label presses Digital minilabs Projectors PCs Devices & Precision Products Segment Net Sales Segment Income (billions of yen) (billions of yen) Net Sales: ¥156.8 billion (down 10.3% Y/Y) % net sales Segment Income: ¥7.6 billion (Up 65.4% Y/Y) % 174.8 18.5 156.8 7.6 Device Business Quartz Device Business (crystal units, crystal oscillators, crystal sensors, etc.) 4.6 Semiconductor Business (CMOS LSI, etc.) Precision Products Watch Business (wristwatches, watch movements, etc.) March March March March 2012 2013 2012 2013 Factory Automation Products Business (SCARA robots, IC handlers, industrial inkjet equipment, etc.) * The optical products business was transferred to Hoya Corporation and Hoya Group companiesanies on FebFebruary 1, 2013. Timing devices Sensing devices Semiconductors Inertial WristwatchesCompact SCARA robots Digital inkjet textile printers measurement units six-axis robots Other Net Sales: ¥1.2 billion (down 92.6% Y/Y) % net sales Segment Income: -¥1.1 billion (¥1.5 billion loss % in previous fiscal year) 0.2 Intra-Group Service Business, etc. Note: The percentage of net sales includes inter-segment sales from April 2012 to March 2013. Epson Group Sustainability Report 2013 4 To Our Stakeholders Aiming to Be an Indispensable Company 5 Epson Group Sustainability Report 2013 Realizing Our Management Philosophy and energy efficient, more precise and more accurate. These Becoming an Indispensable Company advanced technologies have yielded original core tech- nologies that help define Epson, including in inkjet and Epson currently employs over 68,000 persons worldwide. projection systems. We are using these technologies to I feel a tremendous responsibility to them as well as to create unique, customer-pleasing products. These prod- our countless stakeholders—our suppliers, customers, ucts, augmented by ever-evolving information technology shareholders, and the people in the communities where and social infrastructure, are now being turned into solu- we operate. tions that precisely meet customer needs. The business environment during the 2012 fiscal year (ended March 2013) was difficult, with advanced econo- Becoming an Indispensable Company mies slow to recover and growth in emerging markets through Products, Services, and Conduct slowing. But regardless of the business environment, we that Garner Trust are united as a company in our desire to make Epson an indispensable company for customers and society by The fundamental key to being
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