Seiko Epson (6724) Investor presentation summary

Vision and strategic direction

• Aims to transform from a printer company to a technology innovation and engineering company by 2035, focusing on sustainability and societal value creation.

• Emphasizes efficient, compact, and precise technologies to address global challenges such as environmental issues, labor shortages, and geopolitical risks.

• Plans to redesign the business portfolio, prioritizing growth domains and capital-efficient management.

• Seeks to support energy/resource efficiency, precision technology, and productivity across industries and lifestyles.

• Envisions simultaneous creation of societal and corporate value for sustainable advancement.

Business portfolio and growth domains

• Focuses on four main segments: Precision Innovation, Industrial & Robotics, Office & Home Printing, and Visual & Lifestyle.

• Precision Innovation targets 8% CAGR, leveraging inkjet and microdevice technologies for new markets.

• Industrial & Robotics aims for 4%+ CAGR, expanding digital print and robotics solutions.

• Office & Home Printing targets emerging markets and recurring business models, with a 1% CAGR.

• Visual & Lifestyle segment seeks to expand service models and maintain global market leadership.

Financial targets and capital allocation

• FY28 targets: revenue ¥1,500 billion, ROIC 8%, ROE 10%, ROS 8%.

• Industrial domain to increase profit contribution from 45% to 60% by FY28.

• Plans ¥280 billion in growth and strategic investments over FY26-28, with disciplined capital allocation and a minimum DOE of 3%.

• Shareholder returns include planned dividends and share repurchases totaling ¥80 billion for FY26-28.

• Operating cash flow projected at ¥560 billion for FY26-28, supporting investments and returns.