Seiko Epson Corporation (Epson) has unveiled ENGINEERED FUTURE 2035, a long-term corporate vision that maps out the company’s strategy to 2035, along with a new mid-term business plan (2026-2028) that represents the first phase of work under the vision, according to press communication from the company.
In line with this plan, Epson will use Return on Investment Capital (ROIC) as a management metric to optimise capital allocation, redesign its business portfolio, and focus resources on strategic growth domains.
By transforming the earnings base and leveraging precision technologies to expand in growth domains, the company aims to sustain corporate value growth.
Epson sees the next decade as one in which volatility is the norm. Environmental and geopolitical risks will rapidly change, resources and energy will be increasingly constrained, and demographic changes will result in labor shortages worldwide.
Productivity and reliability
Epson will deliver new value to the world by combining its technologies with designs optimised for real-world uses. From industry and across learning, working, and living, the company will enhance productivity and reliability and expand the world’s possibilities.
Epson’s Mid-Term Management Plan, Phase 1 (2026-2028), is the first stage of the company’s journey toward realising the ENGINEERED FUTURE 2035 long-term vision.
Epson will review its fixed cost structure and asset efficiency, redesign global operations and the supply chain, and strengthen sales in emerging markets. It will simultaneously expand and enhance recurring business and solutions.
At the same time, the company will prioritise the allocation of the cash generated to future growth domains, accelerating the transformation of its business portfolio. Capital will be optimally allocated, with investment and business decisions made based on disciplined ROIC.
New business segments
The Precision Innovation segment will play the role of growth engine. The role of Industrial & Robotics will be to generate robust growth in Phase 2. The role of the Office & Home Printing segment and Visual & Lifestyle segment is to generate steady cash.
- Precision Innovation
Inkjet solutions business, microdevices business, Epson Atmix
- Industrial & Robotics
Commercial & industrial printing business, robotics business
- Office & Home Printing
Office and home IJP business
- Visual & Lifestyle
Visual products business, wearable products business, PC business
Shareholder returns
Under the Phase 1 plan, Epson will actively invest capital in growth domains, which will also include strategic investments, the press statement concluded.
