The Epson 25 Phase 2 Mid-Range Business Plan

In March 2019, Epson announced the Epson 25 Phase 2 Mid-Range Business Plan (FY2019-21), the second of three three-year plans for achieving our 2025 corporate goals, as described in the Epson 25 Corporate Vision.

Mid-range plan presentation (video)

Epson 25 Phase 1 Mid-Range Business Plan (FY2016-18) Review

Preparations for growth progressed to varying degrees but did not yield earnings.
Epson fell short of its revenue, business profit, and ROS targets, partly due to changes in the business environment.

FY2015-18 Financial Results

FY2015-18 Financial Results


  • Transitioned from ink cartridge printers to high-capacity ink models in emerging markets
  • Launched strategic products (e.g., high-speed linehead inkjet MFPS & laser projectors) and expanded product lineups
  • Strengthened core technologies and invested in R&D and in companies to acquire future technology
  • Invested aggressively in capital expenditure and increased production capacity
  • Strengthened the B2B sales organizations and subscription-based services, and accumulated customer insights


  • Shifting the business model from laser printers to high-capacity ink models
  • Responding to rapid digitization
  • Creating new markets
  • Launching products on-time
Sales organization
  • Offering functions & services that meet customer needs
  • Establishing effective B2B sales proposals
  • Establishing B2B sales organization in North America
  • Expanding subscription-based printing services
  • Strengthening sales in the Middle East, Africa, etc.
Management resources
  • Determining investment and expenditure priorities

Epson 25 Phase 2 Mid-Range Business Plan (FY2019-21)

Basic Policies

Continue to commit to the goals of Epson 25, and transform business operations to achieve high profitability by managing priorities in response to social issues and environmental change.

1 Accelerate growth by taking maximum advantage of assets and through collaboration and open innovation

  1. Strengthen the solution selling business
  2. Rapidly strengthen product lineups, including through collaboration
  3. Strengthen external sales of core devices and open innovation
  4. Invest management resources in robotics to accelerate its growth into a core business

2 Strengthen global operations under Head Office control

  1. Select and focus on priority business areas and regions
  2. Improve the organization and allocate personnel to strengthen B2B solution selling
  3. Strengthen company-wide integrated IT infrastructure

3 Invest management resources in a disciplined manner based on the economy and strategy effectiveness

  1. Rebuild product portfolios based on priorities
  2. Strengthen financial discipline

Initiatives in Each Area of Innovation


Home, SOHO & shared office printers*1
  • Transition away from a business model that is reliant on consumables and accelerate the displacement of laser printers and ink cartridge printers with large-capacity inkjet models such as high-capacity ink tank printers and high-speed linehead inkjet multifunction printers.

*1 A category defined by Epson, shared office printers are models for high print volume offices.

Commercial & industrial
  • Rapidly expand the lineup of high productivity products through platforming and collaboration with partners.
  • Expand the business by responding to a diverse range of needs with printhead external sales and open innovation.
New printing services
  • Capture needs spawned by rapid and ubiquitous digitization, and embrace collaboration and open innovation to create new printing services.


  • Increase projector value by advancing laser light source engine platforms so as to efficiently expand the high-brightness projector lineup.
  • Pioneer new markets by creating demand for accent lighting projectors and commercializing miniature projectors.
Smart glasses
  • Expand and enhance models that connect to PCs, smartphones, and other USB-C devices. And accelerate open innovation and expand applications by selling optical engine modules to external parties.


  • Continue to focus resources on the high value added analog watch segment where we capitalize on our unique technologies.


  • Acelerate the growth of robotics into a future core business by further strengthening product competitiveness and our ability to propose solutions through active collaboration based on Epson’s technology.
  • Improve usability by employing AI, and enter the collaborative robot market.

Management Initiatives

Strengthening B2B sales capabilities

  • Strengthen Head Office control to bolster the execution of global sales strategies and management functions. Develop products tailored to the needs of each region, set priorities, and control sales and marketing expenses.
  • Reinforce functions in Japan and Europe to lead the move to B2B, share their sales and marketing knowledge globally, and switch to a solutions selling approach. Bolster human resources and sales sites in conjunction with this.

Invest management resources in a disciplined manner according to the economic environment and strategy effectiveness

  • Provide mechanisms for swiftly and accurately assessing changes and prioritize and optimize product portfolios from a Group-wide perspective by making business operations more visible and by strengthening Head Office leadership.
  • Renovate business processes and strengthen company-wide integrated IT infrastructure to make business processes more disciplined and dynamic.
  • Continue to invest as needed in future growth while also prioritizing and controlling investment and spending based on strategy effectiveness.

Working toward sustainability

  • Viewing the heightened demand for corporate sustainability as a business opportunity, contribute to the realization of a sustainable society by accelerating innovation based on inkjet technology, which offers advantages in areas such as printing performance, environmental performance, and ink compatibility.

Financial Targets

We revised our Phase 2 financial targets in response to our Phase 1 results and environmental changes. In Phase 2, we will leverage the infrastructure put in place during Phase 1 to effectively respond to change, accelerate execution, and focus on core competencies. Transforming our business operations in this way will put us in a position to achieve the 2025 Epson 25 targets.

Business profit

*2 Index showing weighted average variance of rates for currencies other than USD and EUR against a benchmark of 100 in 2025

Cash Flow & Capital Expenditure Plans

Restore our ability to generate cash by growing profit and increasing operations efficiency. Prioritize and allocate generated cash to growth areas, but still provide shareholder returns while maintaining a healthy financial structure.

Item Phase 1 Plan Phase 2 Plan
Operating CF 3-year total:
¥258.1 billion
3-year total: approx.
¥370 billion
FCF 3-year total:
¥24.9 billion
3-year total: approx.
¥170 billion
R&D spending 3-year total:
¥161.3 billion
Aggressively invest in new products,
components & technology needed to achieve Epson 25
(excluding leases)
3-year total:
¥236.8 billion
3-year total: approx.
¥200 billion
(Invest in production & new products)


Steadily grow revenue and profit during Phase 2 to secure stable operating cash flow and prioritize investment in growth to achieve Epson 25, while also maintaining a robust financial structure and secure capital efficiency to sustain an ROE 10% or more.

FY2018: 10.2% (result) / FY2021: Sustain at ≥ 10% (target) / FY2025: 15% (target)

Shareholder Returns

Epson’s policy is to provide fair shareholder returns while maintaining a robust financial structure that is capable of withstanding changes in the business environment. In line with this policy, we are again targeting a consolidated dividend payout ratio of about 40% during Phase 2.
We will repurchase shares if necessary, depending on the share price, the capital situation, and other factors.

Item Phase 1 plan (result) Phase 2 Plan
consolidated dividend payout ratio*3
approx. 40%
Share repurchase FY2016:
¥10 billion
¥10 billion*4
  • *3 Calculated based on profit after an amount equivalent to the statutory effective tax rate is deducted from business profit, which shows profit from operations.
  • *4 Seiko Epson repurchased shares in the acquisition period between May 7 and September 20, 2019 based on a resolution passed by the board of directors on April 26, 2019, approving the repurchase of up to ¥10 billion in shares or up to 7,500,000 shares.

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