th7 Mid-Term Business Plan
Fiscal Years 2021 - 2023

May 25th, 2021
TSE Code:6737

1. 7th Mid-Term Business Plan
2. Business Strategy by Markets
3. Return to Shareholders

1© 2021 EIZO Corporation. All Rights Reserved.

1. 7th Mid-Term Business Plan
2. Business Strategy by Markets
3. Return to Shareholders

2© 2021 EIZO Corporation. All Rights Reserved.

th7 Mid-Term Business Plan

Amplify Imaging Value

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GoalEnhance the value of “Imaging” through Products& Systems, and expand our business field

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Strengthen Products through Systems, andenhance Systems through strengthened Products5© 2021 EIZO Corporation. All Rights Reserved.

Strengthen and Expand Products

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Our Systems Business = EIZO Visual Systems

EVS“Imaging Chain” consisting of capture, recording,
distribution, and display
Accelerate development and expansion ofCarina System’s system business7© 2021 EIZO Corporation. All Rights Reserved.

Evolve EIZO Business Model
To the NEXT Stage8© 2021 EIZO Corporation. All Rights Reserved.

Mid-Term Plan: Targets
20F ActualAmusement(AMU)

Other

23F PlanBusiness & Plus(B&P)

4.1 16.8
14.4

Vertical
8.6
Net Sales &(JPY Billion) Specific5.4(V&S)
Creative Work(CW)

Operating
Income /MarginAMU

15.5
6.5

26.9
Healthcare(HC)

JPY 7.9 Bil. / 10.4%
9B&P

8.5 3.0

V&S

76.5

Other

18.0

88.0
36.5

CW

HC

JPY 13.2 Bil. / 15.0%© 2021 EIZO Corporation. All Rights Reserved.

Evolving Business Model
As the amusement market
shrinks, reinforce EIZO’sbusiness model as a Visual
Technology Company

Amusement monitor
sales peak

Successful businessexpansion inHC/CW/V&S markets

Enhance profitability andreach record-high OPM(JPY Billion)
100.0

14.0%

95.6

15.0% 16.0%
88.0

90.0
80.0

11.6%

70.0
60.0

14.0%

12.2%

12.6%
11.4%

51.1

9.5%

58.2 9.3%

8.0%

7.9%

50.0

12.0%

10.4%

8.5

9.0%

10.0%

8.4%
10.2%

7.4%

18.0

40.0

8.0%

7.4%

6.2% 6.8%

5.8%

30.0

8.5

72.9

6.0%
4.0%

20.0

3.5%

2.0%

10.0
0.0

0.0%

02F

03F

04F

05F

06F

B&P

07F

08F

HC

09F

CW

10F

11F

V&S

12F

13F

AMU
1014F

15F

Other

16F

17F18F

19F

20F

23F
Plan

Operating Margin© 2021 EIZO Corporation. All Rights Reserved.

CAPEX
Continue to invest aggressively for future growth Advance Digital Transformation through IT infrastructure innovation for
manufacturing, R&D, sales, etc.
 Drive increased productivity throughout the whole process from R&D toproduction
 Streamline logistics by new warehouse construction(JPY Billion)
6.0
5.0
4.0
3.0
2.0
1.0

2.5

2.1

16F

17F

4.1

4.3

18F

19F

3.5

3.4

3.0 - 4.0+?

20F

21F
Plan

22F
Plan

3.0 - 4.0+?

23F
Plan

0.011© 2021 EIZO Corporation. All Rights Reserved.

R&D
Continue to invest in key areas for business growth(7% to 8% of sales and more as necessary) Reinforce designs that consider the environment
 Enhance hardware and software developments with core technologies
developed in-house, including EIZO’s own algorithms, AI, edge computing,
Hi-Fi video codecs, and next-generation devices
 Invest in substantial growth of EVS including enhanced application
development
 Strengthen cyber security related technology

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Financial Capital Allocation Policy Draw on our stable financial base, which is one of our major strengths, tosecure the necessary funds for business operation and growth investment
GrowthInvestment

Aggressively invest in growth area, particularly Healthcare and V&S
Deepen existing business area and expand business regions◼ CAPEX: Continue investing in growth area
◼ R&D:Development of new products and elemental technologies.
Enhancing technologies and skills. Invest in substantial growth of EVS◼ M&A: Implement M&A necessary for business expansion

BusinessFunding◼ Inventory funding: In EIZO’s highly competitive business domain, stable long-term
supply constitutes competitive advantage. Maintain strategic inventory to ensure a
supply capacity to meet demand, particularly from the Healthcare and V&S markets.
Implement an integrated sales strategy based on a direct sales system in which over
90% of overseas sales are covered by EIZO Group companies. Maintain local
inventory to flexibly supply products to customers. This will contribute to expanding
overseas business.

Shareholder
Return◼ Total return ratio of 40−50% is target range
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Digital TransformationReinforce Business & Create Value
Increase efficiency and productivity
through IT infrastructure innovation

Drive business expansion
and expand business fields

Manufacturing
Strengthen Products

Respond to customer demands by achieving flexible
customizability

Strengthen “Imaging Chain” consisting of products
i.e. Monitor, Camera, Video Encoder, etc.

R&D

Drive EVS

Transform R&D processes

Streamline imaging, where volumes of information related
to images are increasing, and improve user experience withadded convenience to create value

Support 100% in-house development and production

Customer Relations
Centralized management of customer information tostrengthen relationships with customers
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Sustainability
 Establish new structure to promote sustainability
Endorsed the recommendations of the TCDF *1in May 2021.
Further efforts to tackle climate change from aninternational perspective through information disclosure.

Sustainability promotion structure(Establish in June 2021)*1 TCFD: Task Force on Climate-Related Financial Disclosures

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Sustainability: Key Goals
 Accelerate environmental impact reduction◼ Products：
Industry-leading environmentally responsible development◼ Operations： Reduce CO2 emissions by 70% by FY2030 (compared to FY2017)
Achieve Zero-CO2 by FY2040

 Promote sustainability throughout the supply chain Create a working environment that enables everyone to work withwell-being

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Industry-Leading Product Environmental
Performance Contribute society through the development of environmentally friendly products
Present Activities

Future Action

EnergySavingCompliance with energy laws andregulations
ENERGY STAR, EU Eco Design Directive

Achieve lower energy consumption thanregulated by ENERGY STARGlobalWarming

Assessment of Greenhouse Gas (GHG)
Emissions in product lifecycle

Reduce GHG from products

Compliance with chemical regulations
ChemicalManagement RoHS, REACH, SCIP

Use of safer chemicals(White List System)

Material

Use of recycled plastic

Increase use of recycled plastic
Lower product weight
Move towards plastic-free packaging material

MineralSourcing

Conducting a survey on conflict minerals
Joining Responsible Minerals Initiative(RMI)

Carry out responsible mineral sourcing
Procure from sources compliant with initiatives

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Sustainability: Supply Chain Join the United Nations Global Compact (from 2012)◼

Implement 10 basic principles of the UN Global Compact
concerning corporate social responsibly in the areas ofhuman rights, labor, the environment, and anti-corruption◼ Fulfill our corporate social responsibilities in a global society
and increase our corporate value

 Join Responsible Business Alliance (RBA) (from 2020)◼
◼

Align operations to the provisions of the RBA Code of Conduct
Throughout our supply chain, operate ethically, ensure safety in the work environment,
uphold human rights, and maintain environmental responsibility18© 2021 EIZO Corporation. All Rights Reserved.

1. 7th Mid-Term Business Plan
2. Business Strategy by Markets
3. Return to Shareholders

19© 2021 EIZO Corporation. All Rights Reserved.

B&P
 Consistently provide high-performance, safe, and reliable products◼ Attain safety and security needed for display systems◼ Achieve industry’s highest level of environmental performance◼ Support customer with PLM *1 ,TCO *2*1 PLM: Product Lifecyle Management*2 TCO: Total Cost of Ownership20© 2021 EIZO Corporation. All Rights Reserved.

Healthcare Expand EVS from operating rooms to intraand inter-hospital Further expand the whole healthcare
business through the synergy with EVS inPACS, HIS, Modality, Endoscopy, IVR, etc.

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© 2021 EIZO Corporation. All Rights Reserved.

Creative Work
 Realize differentiation through original technology◼ Offer products that meet the industry’s increasing demand for display
performance and color management as DX permeates the market◼ Cross-sell products to cover the entire workflow◼ Expand the target market to OTT (over-the-top) and video game production

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V&S: Security & Surveillance Drive EVS with image optimization technology and ultra-highsensitivity cameras
 Enhance connectivity in large-scale installations through integration
with VMS, which controls the entire video monitoring system
 Strengthen cyber security (HTTPS, IEEE802.1X, etc.)23© 2021 EIZO Corporation. All Rights Reserved.

V&S: Air Traffic Control (ATC) Expanded the facility in Germany dedicated to ATC products toincrease production capacity for meeting growth in demand(operations began July 2020)

 Provide a system that enables video recording and centralized
management on a server
 Drive business expansion in China

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Amusement
 Contribute to the development of the industry together with ourpartners by leveraging the EIZO Group’s comprehensive strengths◼ Advance the business by utilizing our unique strengths in comprehensive
capabilities which contain hardware & software technologies, procurement,and production◼ Maintain and expand business volume by increasing market share in ashrinking market

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Amusement
 Sales are projected to decrease after 22F, when replacement demand for
new regulated machines will have reached its peak in 21F
 Aim to achieve sales over our initial goal by strong alliance with partners(JPY Billion)26© 2021 EIZO Corporation. All Rights Reserved.

1. 7th Mid-Term Business Plan
2. Business Strategy by Markets
3. Return to Shareholders

27© 2021 EIZO Corporation. All Rights Reserved.

Profit Distribution to Shareholders
Basic policy on profit distribution to shareholders
 Returning profit to shareholders is a key management concern at EIZO Corporation, and we follow a basic
policy of stable dividend payment in line with corporate growth. We return profit to shareholders on the basisof an overall consideration of securing retained profit for capital investments and R&D expenditures requiredfor business expansion, financial status and future performance.
(JPY / Share) Our target shareholder return ratio is 40% to 50% of net income.

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Visit us online

www.eizoglobal.com

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