Mid-Term Business Plan
Fiscal Year 2015 - 2017
Visual Technology Company

10 / 15 / 150”

Ⅰ. Review: 4th Mid-Term Plan
Fiscal Year 2012 - 2014
Ⅱ. Direction: Current Mid-Term Plan
Fiscal Year 2015 - 2017
Ⅲ. Business Strategy by Segment
Ⅳ. Return to Shareholders
Disclaimer Regarding Forward-looking Statements
Any statements in this document, other than those of historical fact, are forward-looking statements about the future performance ofEIZO and its group companies, which are based on management’s assumptions and beliefs in light of information currently available,and involve risks and uncertainties. Actual results may differ materially from these forecasts.
Notation of fiscal years“17F” appearing in this presentation means “Fiscal year 2017”, that is Fiscal year ended Mar. 31, 2018.

2© 2015 EIZO Corporation. All Rights Reserved.

Ⅰ-1. Review: 4th Mid-Term Plan
1. Global NetworkEU

 Successfully transitioned from exclusive distributors to EIZO
companies for a direct sales & supply model resulting in: Strategic sales & marketing Direct market communication
 Investment for future market development

US Increased business in vertical markets
 Medical - Built strong partnership with top market players
 Graphics- Strengthened the business for the Media &Entertainment (M&E) markets

China  Solid operation, achieved profitability
3© 2015 EIZO Corporation. All Rights Reserved.

Ⅰ-2. Review: 4th Mid-Term Plan
2. Be No.1 in vertical markets
 Medical- Launched Operating Room (OR) solutions business Graphics - Strengthened the business for the M&E markets
 ATC- Obtained 30% market share Industrial - Diversified markets

3. Maintained No.1 in amusement monitors
 Maintained No.1 market share on an installed machine basis
 Strengthened product development
 Sales decreased more than forecasted due to market shrinkage
4© 2015 EIZO Corporation. All Rights Reserved.

Ⅰ-3. Review: 4th Mid-Term Plan
Sales, Operating margin(Billions of yen)10080
60
40200General

VerticalAmusement

OthersOperating margin

73.6

9.3%

59.5

58.2
7.4%

10.3

13.6

9.3
24.3

90.0
10.0%

72.5 16.0

10.0%
8.0%

15.5
6.2% 45.0

6.0%

31.8

32.9

4.0%

20.5

18.0

21.9

15.1 20.0

2.0%

3.6

6.3

5.9

8.8

9.0

12F

13F

14FMid-TermPlan

24.8

11F

3.5%

50.0%

© 2015 EIZO Corporation. All Rights Reserved.Ⅰ. Review: 4th Mid-Term Plan
Fiscal Year 2012 - 2014
Ⅱ. Direction: Current Mid-Term Plan
Fiscal Year 2015 - 2017
Ⅲ. Business Strategy by Segment
Ⅳ. Return to Shareholders

6© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-1. Targets of Mid-Term Plan

“ 10 / 15 / 150 ”
 Operating margin10%

 By growth in vertical markets,
amusement monitors to total revenue of15%

 Sales growth in vertical markets+JPY150 Oku = 15 Billion
7© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-2. Key Objectives of Mid-Term Plan
Key Objectives
 B&P(General)- Rename as B&P (Business & Plus) Vertical Medical- Diagnostics: Become No.1 worldwide
Reinforce strategic markets of growth potential:
US, China, India and Middle East- OR: Drive OR solutions business worldwide
 Graphics - Become No.1 in the M&E markets
 Industrial - Focus on ATC, Maritime, Railways,Security & Surveillance and Factory Automation (FA)8© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-3. Key Objectives of Mid-Term Plan
Key Objectives
 Amusement
 More efficient and effective R&D
 Retain No.1 position

 Leaner operation through renovation of workflow

9© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-4. Goals: Sales and Operating margin
B&P(Billions of yen)
80

60

Amusement

72.5

74.5

15.5

17.3

6.2%

40

Vertical32.9

Others77.0
18.0

Operating margin

83.0
18.5

7.4%

6.6%

37.1

40.5

47.5

Operating margin

10％
Sales growth invertical markets+JPY150Oku( = 15 Billion)

200

15.1

13.0

8.8
14F

7.1

12.0
6.5

12.0
5.0

15F*

16F*

17F*

*Mid-Term Plan
10

Amusement
monitors as totalsales

15%© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-5. R&DR&D(Billions of yen)8.0

6.0

6.0

6.9

6.6

7.0

9.0%
9.0%

8.9%
4.0

R&D/Net sales
10.0%

8.4%

8.3%

8.0%

2.0

7.0%

0.0

6.0%

14F

15F*

16F*

17F*

*Mid-Term Plan
11

© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-6. CAPEX 15F - Build new factory to increase capacity for business growth(Billions of yen)

CAPEX

Depreciation

Factory

4.0

4.4

2.0

1.3
0.0

1.7

2.7

1.9
15F*

14F

16F*
*Mid-Term Plan

12

© 2015 EIZO Corporation. All Rights Reserved.

Ⅱ-7. Selling, General and Administrative Expenses
SG&A(Billions of yen)
20.0

17.3

R&D

SG&A/Net sales

17.6

18.0

SG&A/Net sales

18.5

24.0%

15.0
23.8%

23.6%

23.0%

23.4%

10.0

22.3%
5.0

5.5
0.0

25.0%

14F

6.3

6.0
15F*

16F*

6.4
17F*

22.0%
21.0%
20.0%

*Mid-Term Plan
13

© 2015 EIZO Corporation. All Rights Reserved.

Ⅰ. Review: 4th Mid-Term Plan
Fiscal Year 2012 - 2014
Ⅱ. Direction: Current Mid-Term Plan
Fiscal Year 2015 - 2017
Ⅲ. Business Strategy by Segment
Ⅳ. Return to Shareholders

14© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-1. Business & Plus (B&P)
A style that embraces minimalism Thinner, lighter designs coupled with EIZO’s own
cutting-edge technologies provide unrivaled value
2015 ~
2011 ~

2014 ~

2012 ~

15© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-2. Medical
Further expanding the business from diagnostics
to the operating room
 Diagnostics
 R&D for more efficient diagnostics
workflow Priority markets: Japan, Europe Strategic markets: US, China, India,Middle East
 Operating Room
 Launch Surgical Panel + OR software Propose one-stop solutions –from consulting to installation
16© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-3. Graphics
Friendly Color Management for all amateurs andprofessionals
 Keep No.1 position in the photography and printingmarkets
 Become No.1 in the M&E markets
 Develop the product for market expansion
Make color management for all potential users

17© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-4. Entertainment
Differentiation through unrivaled functionalityex: Connectivity withsmartphones− CONNECT Collaboration with gaming
software developers− ENJOY Color presets via the cloud− SHARE18© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-5. Industrial (1/5)
Comprehensive capabilities (technology, supply,support, and more) form the pillar of EIZO business ATC Capture No.1 share 2K×2K (primary control monitor)+ Auxiliary technologies
 Strength in EIZO product synergy

19© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-5. Industrial (2/5)
Comprehensive capabilities (technology, supply,support, and more) form the pillar of EIZO business Maritime
 Rich product lineup covers onboard
IT and mandatory fitting of ECDIS(Electronic Chart Display InformationSystem) Differentiation by state-of-the-art
technologies (ex. optical bonding)20© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-5. Industrial (3/5)
Comprehensive capabilities (technology, supply,support, and more) form the pillar of EIZO business Railways
 VIS (Visual Information System)
EIZO quality and reliability intotrain cabin Platform Surveillance
Ensure safety by clear visibility
and software21© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-5. Industrial (4/5)
Comprehensive capabilities (technology, supply,support, and more) form the pillar of EIZO business Security & Surveillance Powerful solutions forany environment
 Innovative solutions forPC-less connection to IP cameras
 FA
 Wide product lineup for
embedded applications(ex. touch panel, chassis mount)22© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-5. Industrial (5/5)
Comprehensive capabilities (technology, supply,support, and more) form the pillar of EIZO business Develop a new business sector
 Products compliant withMilitary Standard (U.S.
Department of Defense) Comprehensive visual technologies(ex. optical bonding, AR film)
 Strengthen product lifecycle
management system for long-term
projects
23© 2015 EIZO Corporation. All Rights Reserved.

Ⅲ-6. AmusementMaintain sales & enhance profitability
to strengthen business foundation
 Reactive R&D reorganization
 With unique computer graphics,
assert No.1 market position
 Synergy with EIZO ASIC technology
 Utilize original production tools©SANYO BUSSAN CO.,LTD.

24© 2015 EIZO Corporation. All Rights Reserved.

Ⅰ. Review: 4th Mid-Term Plan
Fiscal Year 2012 - 2014
Ⅱ. Direction: Current Mid-Term Plan
Fiscal Year 2015 - 2017
Ⅲ. Business Strategy by Segment
Ⅳ. Return to Shareholders

25© 2015 EIZO Corporation. All Rights Reserved.

Ⅳ. Return to Shareholders
 Returning profit to shareholders is a key management concern
for EIZO Corporation, and we have followed a basic policy ofstable dividend payment in line with corporate growth. We return
profit to shareholders on the basis of an overall consideration of
securing retained profit for capital investments and R&D
expenditures required for business expansion, financial status
and future performance.
 Our target shareholder return ratio is 40% to 50% of net income,and we strive to strengthen our profit base to ensure we achieve
this goal.

26© 2015 EIZO Corporation. All Rights Reserved.

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