Updated Second-Half Mid-Range Business Plan

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About the Updated Business Plan

Beginning in fiscal 2012 (ended March 2013), Epson's original Second Half Mid-Range business plan upheld the same basic strategic direction as SE15 and was an income growth plan predicated on net sales growth. However, the business environment in FY2012 was more severe than expected, and Epson realized the necessity of reviewing the validity of both the strategy and business targets expressed in its original plan. In March 2013, the company therefore established the Updated SE15 Second-Half Mid-Range Business Plan to run over the three years from fiscal 2013 to 2015.

Under the Updated Mid-Range Business Plan, Epson will readjust its product mix and adopt new business models in existing segments. In new business segments, the company will aggressively develop markets. By doing this, Epson will, under the next mid-range business plan to be announced in FY2016 steadily, undergo a metamorphosis from a company focusing on printing and projection equipment for consumers to a company that once again posts strong growth by creating and providing new information tools and equipment for businesses and professionals, as well as consumers. Epson is positioning the three years of the Updated Mid-Range Business Plan as a time for laying the foundations for this transformation, and steadily moving towards achieving its goals.

Financial targets

Under the updated business plan, Epson aims to manage its businesses to ensure it creates steady profit and avoids the single-minded pursuit of revenue growth. Management, determined that the company's results will bottom out in FY2012, will prioritize the generation of steady profits going forward

Unit: billion yen

FY2013
(ended March 31, 2014)
FY2014
(ending March 31, 2015)
FY2015 (ending March 31, 2016)
Initial plan Actual Initial plan Current outlook
(as of October 31, 2014)
Initial plan
Net sales 890 1003.6 910 1060 930
Operating income 30 84.9 40 105 50
Operating income margin 3.4% 8.5% 4.4% 9.9% 5.4%
Exchange rate assumptions
USD1
EUR1

¥85
¥115

¥100.23
¥134.37

¥85
¥115

¥102
¥137

¥85
¥115

* The initial plan (announced March 31, 2013) and FY 2013 actuals were based on J-GAAP. The FY2014 outlook is calculated according to IFRS.
* The operating income figures for FY2014 show business profit, an indicator developed by Epson, while the operating income margin for the same year shows business profit rate.
Business profit is calculated by deducting the cost of sales and SGA expenses from revenue. Although not defined in the statement of consolidated comprehensive income, this indicator is very similar to the concept of operating income under J-GAAP.

Further information about the updated business plan: