Seiko Epson Corporation 2020/2021Business Profile: Wearable & Industrial Products. Product Lineup . watches, sensing devices, Industrial robots, IC test handlers, force sensors, crystal

© SEIKO EPSON CORPORATION 2020. All rights reserved.

Issued date: August 20, 2020

Seiko Epson Corporation 2020/2021

2SEIKO EPSON CORPORATION 2020/2021

The 14 SDGs that Epson can most directly help to achieve

Squarely Facing Societal Issues and Providing New ValueEpson'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 disposalpowerful 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 Course of Epson Group Progress Corporate Historyhttps://global.epson.com/company/corporate_history/

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Inkjet printers 3LCD data projectors

1942 1969 1994 2010 to the present

It all began with timepiece manufacturing

Brought accurate time to everyday life

World's first quartz watch

mechanical watches would normally gain or lose many

seconds per day.

At the time, At the time,

photos were printed at photo shops.

At the time,

presentations used handouts and OHPs.

Enabled people to print photos at home

Transformed presentations

Creating new value thatexceeds customer expectations

A dry-process office papermaking system that recycles paper right on site

A SCARA robot that helps to accelerate automation

A digital inkjet textile printerthat accelerates the digitization of the textile printing market

Epson has always used its original technology to create new value and change the way we live and work

https://global.epson.com/company/corporate_history/

https://www.epson.jp/technology/core_technology/origin/quartz_watches.htm


Management MessageManagement Messagehttps://global.epson.com/company/message/

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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 OgawaPresident and CEOSeiko Epson Corporation

https://global.epson.com/company/message/


Epson's Value Creation Story

Solving societal issues by leveraging Epson's strengths to drive innovationGoalsPriority issuesAssets of strengths


Value Creation Story: The Value Proposition

Transforming the Office EnvironmentCreate eco-conscious offices that recycle printed materials right on sitePOINT.1 |

Communicate smoothly with remote sitesPOINT.1 |

.2 |

Inkjet printers offer superior environmental performance at a far lower cost.

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 andenvironmental impact

Contribute to the conservation of forest and water resourcesthrough in-office paper recycling

Maintain information security by dissolving paper into fibers

>

>Related video: How to use the PaperLab A-8000https://youtu.be/2dogZsV9Ns4

.2 |

.3 |

Projectors are portable and can project images on a wall, pillar, ceiling, or other surface to enable visual communication in all kinds of places.Big screen images are sharp and clear even when materials and people are projected simultaneously on a split screen.

Interactive features allow you to share and notate projected documents and images.Value proposition

>

>>

Foster a sense of unity with face-to-face communicationSpeed up information sharing and increase productivityMinimize wasteful travel, reduce CO2, and save time

https://youtu.be/2dogZsV9Ns4


Achieve efficient, low-resource processes

Lower the barriers to automationPOINT.1 |

POINT.1 |

.2 |

.3 |

.4 |

.3 |

Compact robots can work in the same space as humans with no changes to production lines.

.2 |

.4 |

Force sensors allow robots to perform tasks with human-like touch.Use image processing to enable numeric sensory testing.Enable easy teaching.

Offer easy installation in existing production linesAutomate processes that relied on human touch and sightEnsure stable and continuous factory operation by automating production linesRealize a safe working environment

Related video: Manufacturing underpinned by Epson robotshttps://youtu.be/BNYQxabF-Wc

Respond to small-lot production without printing plates.Involve fewer processes and no ink mixing.Reduce waste ink, and eliminate washing water as there are no plates.Need less frequent contact with chemicals.

Value proposition

Value proposition

> Printing that flexibly adapts to demand fluctuations and rapid turnarounds, reducing dead stock and disposal lossesReduce waste ink and water used for washing printing platesReduce space for storing plates and work in processOffer a clean and safe printing environment

>>>

>>>>

Value Creation Story: The Value Proposition

Transforming the Production Floor

https://youtu.be/BNYQxabF-Wc


● Prepare foundation & products ● Transform business operations to achieve high profitability

● Establish a high profit structure

Mid-Range Business Plan

FY2019-2021Second phase

The Corporate Vision and Mid-Range Business Plan

Vision statement

Epson 25

FY2016-2018First phase

Second phaseThird phase

Our goals for 2025The Epson 25 Corporate Vision

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.


Business profit*1Revenue

Printing solutions¥708.6 bln

Visual communications

¥183.3 bln

¥482.5 bln ¥197.9 bln

Printers Professional Printing

Others

Wearable Products

Wearable products & industrial solutions

¥152.9 bln

Robotics Solutions

Microdevices, Other

¥21.2 bln

¥92.9 bln

¥44.0 bln

¥28.2 bln

Profit for the year attributable to owners of the parent company

Financial Performance and Business Size

FY2019

¥1,043.6 billion

¥40.8 billion

¥7.7 billion

Revenue breakdown*2

*1 Business profit is very similar to operating income un¥der Japanese accounting standards, both conceptually and numerically. It is calculated by deducting the cost of sales and selling, general and administrative expenses from revenue.

*2 Revenue amounts for the businesses include intercompany transactions.


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Product Lineup 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

SDGs to which business contributes

SOHO & home

Office & business

【Customer segment】【Actions】

● Printer business

Business Profile: Printing Solutions Explore our product lineshttps://epson.com/

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High-capacity ink tank inkjet printer

High-speed linehead inkjet multifunction printer

Receipt printer

○

High-capacity ink tank printers boast outstanding environmental performance and formidable cost advantages, 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.

Epson provides products and solutions that enhance the productivity of customers regardless of business sector or business type.

https://epson.com/


Business Profile: Printing Solutions

● Professional printing business

Commercial & Industrial

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Explore our product lineshttps://epson.com/

Product Lineup 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



Large-format printers for signs and displaysInkjet printheads

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We are contributing to greater efficiency and shorter delivery times in commercial and industrial printing with 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.

Digital textile printersLarge-format dye-sublimation

transfer printers for textiles

https://epson.com/


Business Profile: Visual Communications

Product Lineup Projectors and smart glasses

● Visual communications business

SOHO & home

Office & business


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Compact models Ultra-short throw wall-mounted models

High-brightness models Smart glasses



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○ 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.

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 help to enhance safety and efficiency in factory and enterprise operations.

https://epson.com/


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Personal

Business Profile: Wearable & Industrial Products

Product Lineup 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

● Robotics solutions business


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The Seiko business


We leverage our watchmaking heritage, refine leading technology, and offer a sense of statusand fashion.


Commercial & Industrial We are lowering the barriers to automation and

responding to a wide range of needs with solutions that combine robotics and sensing technologies derived from our efficient, compact, and precision technologies.

6-axis robots

SCARA robots

Force sensor

Lineup introduction video: https://youtu.be/t_WRpKH2I8I

https://epson.com/

https://youtu.be/t_WRpKH2I8I


仮

Business Profile: Wearable & Industrial Products

● Microdevices and Other Businesses


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SDGs to which business contributesProduct Lineup 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

Superfine alloy powders Au-Sn alloy plated wafer Photo-etched PCBs


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We will contribute to the development of smart communications, power, transportation and manufacturing systems with advanced quartz timing and sensing solutions and low-power semiconductor solutions.

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 process.

Epson leverages its thin-film deposition and photo-etching technologies to provide the 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 boards.

Office & business


Gyrosensor Inertial measurement unit(IMU)

LCD controller

Application-specificintegrated circuit (ASIC)

Temperature compensatedcrystal oscillator (TCXO)

Real-timeclock module

Programmableoscillator

Timing device

Sensing device Semiconductors

https://epson.com/


Epson’s Vertically Integrated Business Model Technology Visionhttps://global.epson.com/innovation/vision/

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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.

https://global.epson.com/innovation/vision/


● Patent Application Ranking by Area

Inkjet printers 1st

Projectors1st 1st

Robotics 2nd

Crystal devices

Inkjet printers 1st

Projectors 1st

Robotics 2nd

Crystal devices 3rd

Japan

US

* As of March 10, 2020, per Epson research* The number of Piezo printhead-related patents registered in Japan, the U.S., China, and Europe since April 1, 2000

● Number of Piezo Printhead-Related Patents Owned

Intellectual Property Activities Supporting Innovation Intellectual propertyhttps://global.epson.com/innovation/intellectual_property/

Patent Portfolio

Design rightsportfolio

Trademark portfolioTechnology brands

& names

Improve the brand imageSecure profit

3,490

957624 485 474

91

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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.

Epson Company A Company B Company C Company D Company E

* 2019 ranking based on the number of patents opened to the public per Epson research from 2019/1/1 to 12/31

Piezo printheads are a core device in the printing sector. We own more patents related to these printheads than anyone else in the industry, and this IP has given us a formidable competitive advantage.

We continue to build a portfolio that affords solid protection of value-creating core technologies, original designs, and branded trademarks.This enables us to maintain and build the competitive advantage of our own brands and to sustain stable business operations.

1st

https://global.epson.com/innovation/intellectual_property/


Our People Our Peoplehttps://global.epson.com/SR/our_people/

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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.

https://global.epson.com/SR/our_people/


Global Network Operations Divisions and Group Companieshttps://global.epson.com/company/global_network/

Group companies

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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.

Seiko Epson Head OfficeRegional head officeProduction companySales & service siteR&D siteSeiko Epson branch

Revenue by region

¥1,043.6 billion（FY2019)

Japan24%

The Americas28%

Asia/Oceania

27%

Europe21%

Consolidated employees by

region78,739

(as of 2020/3/3)

Japan25%

The Americas4%

Europe3%

Asia/Oceania

68%

85 companies (includes parent company)

Japan: 18 Overseas: 67

(as of 2020/3/3)

https://global.epson.com/company/global_network/


The origin of the Epson name

EP SON 「EPSON」+ =

Corporate Outline

Osaka Office

Shinko Sellbic CorporationEpson X Investment Corporation

Epson Mizube Corporation

Company Name

Founded

Head Office

Paid-in Capital

Seiko Epson Corporation

May 18, 1942

3-3-5 Owa, Suwa-shi, Nagano, Japan

¥53,204 million

The Epson brand name comes from the EP-101, an electric printer that kicked off t he company’s expansion into the information equipment business. The“ Ep” stands for“ electric printer” and the“ son” represents our desire to follow t he original electronic printer with many more worthwhile products and services in a variety of fields.

The EP-101, the world's firstminiature digital printer

Head Office, Domestic Business Sites and Main Group CompaniesPlant or officeGroup company

Chitose Plant

Epson Atmix Corporation

Akita Epson CorporationSakata Plant / Tohoku Epson Corporation / Epson Swan Corporation

Tokyo Office / Epson Sales Japan Corporation

Hino Office

Nagano Prefecture

Miyazaki Epson Corporation

Epson Repair Corporation

Matsumoto Plant /Epson Service Corporation

Epson Avasys CorporationMatsumoto Minami Plant

Head Office

Suwa Minami Plant

Fujimi PlantIna Plant

Epson Direct CorporationShiojiri Plant

Hirooka Office

Kanbayashi Plant

Toyoshina Plant


https://global.epson.com/ https://www.youtube.com/user/epsoncorp/Epson's public website Epson's official video channel

See for more company and product information. See videos for more company information, commercials, etc.

https://global.epson.com/

https://www.youtube.com/user/epsoncorp/

Documents

Seiko Epson Corporation 2020/2021Business Profile: Wearable & Industrial Products. Product Lineup . watches, sensing devices, Industrial robots, IC test handlers, force sensors, crystal