6th Mid-Term Business PlanFiscal Years 2018 - 2020
Synergy Transformation~ Creating a Growth Engine ~
6737
May 16th, 2018
© 2018 EIZO Corporation. All Rights Reserved.
Market Group Market / Use
Business & Plus (B&P)
⚫ Financial institutions
⚫ Public authorities
⚫ Educational facilities
⚫ Office use
⚫ High-end home use
Healthcare (HC)⚫ Medical imaging
⚫ Diagnostic applications
⚫ Operating rooms
Creative Work (CW)⚫ Publication / Printing / Photo editing
⚫ Video production
Vertical & Specific (V&S)
⚫ Air traffic control
⚫ Maritime
⚫ Security & surveillance
⚫ Other industrial fields
Amusement (AMU) LCD-mounted pachinko and slot machines
Other (OTH)Maintenance services and commissioned development of
software
Disclaimer Regarding Forward-Looking Statements
Any statements in this document, other than those of historical fact, are forward-looking statements about the future
performance of EIZO 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.
Note: “20F” appearing in this presentation means “fiscal year 2020”, that is fiscal year ended March 31, 2021.
Details of the Market Group
1
© 2018 EIZO Corporation. All Rights Reserved.
1. Review: 5th Mid-Term Plan
(Fiscal Years 2015 - 2017)
2. Direction: 6th Mid-Term Plan
(Fiscal Years 2018 - 2020)
3. Business Strategy by Key Markets
4. Return to Shareholders
2
© 2018 EIZO Corporation. All Rights Reserved.
1. Review: 5th Mid-Term Plan
(Fiscal Years 2015 - 2017)
2. Direction: 6th Mid-Term Plan
(Fiscal Years 2018 - 2020)
3. Business Strategy by Key Markets
4. Return to Shareholders
3
© 2018 EIZO Corporation. All Rights Reserved.
Review: 5th Mid-Term Plan
Achieved financial goals
17F Actual
Net Sales JPY 84.0 Bil. (+1.0 Bil.)
Operating Income JPY 8.5 Bil. (+0.2 Bil.)
Operating Margin 10.2% (+0.2 pt )(vs plan)
4
© 2018 EIZO Corporation. All Rights Reserved.
Review: 5th Mid-Term Plan
HC/CW/V&S: Expanded business successfully
◼HC
◼Strengthened business lines driven by M&A and resulting
synergy
2015 Nov. HC system integration business
2016 Jul. Endoscopy monitor business
◼Business growth in Priority and Strategic Markets
◼CW
◼Expanded sales in the M&E field worldwide starting from
Hollywood
6
© 2018 EIZO Corporation. All Rights Reserved.
Review: 5th Mid-Term Plan
HC/CW/V&S: Expanded business successfully
◼V&S
◼ Increased business in ATC, Maritime, Security &
Surveillance, but did not achieve sales targets
AMU: Maintained No.1 position
◼Reinforced partnerships with agile R&D and
manufacturing reacting to the market
◼R&D reorganization
◼Strengthened manufacturing through sourcing capability
and production flexibility7
© 2018 EIZO Corporation. All Rights Reserved.
Review: 5th Mid-Term Plan
Profitable operation
◼ Increased high-value product portfolio
HC/CW/V&S sales distribution ratio 17F 52% (14F 45%, +7pt)
◼Achieved higher productivity with a new factory and
production lines
◼ Improved labor productivity driven by “Work-Style
Reform”
8
© 2018 EIZO Corporation. All Rights Reserved.
15.5 17.9 16.8 18.1 18.5
20.7 23.4 26.0 29.7 25.25.5
6.3 5.45.7 7.36.6
6.8 6.97.8 15.015.1
15.2 18.415.2 12.0
8.84.9 4.5
7.2 5.072.5 74.8 78.284.0 83.0
6.2%
6.8%
9.0%10.2% 10.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
14F 15F 16F 17F 17F Plan
B&P HC CW V&S AMU OTH Operating Margin
Review: 5th Mid-Term Plan(JPY Billion)
9
© 2018 EIZO Corporation. All Rights Reserved.
1. Review: 5th Mid-Term Plan
(Fiscal Years 2015 - 2017)
2. Direction: 6th Mid-Term Plan
(Fiscal Years 2018 - 2020)
3. Business Strategy by Key Markets
4. Return to Shareholders
10
© 2018 EIZO Corporation. All Rights Reserved.
- 17F Business Model
As a Visual Technology Company with display technologies at our core,
we expanded our business domain by developing world-leading, high-
quality, reliable products and offering monitor solutions.
11
© 2018 EIZO Corporation. All Rights Reserved.
We will further expand our Healthcare, Creative Work, and Vertical & Specific
business units and create new opportunities in untapped markets with
comprehensive solutions that encompass the “Capturing”, “Recording/Distributing”,
and “Displaying” of images.
18F - 20F Transformed Business Model
12
© 2018 EIZO Corporation. All Rights Reserved.
Growth Engine –“Imaging Chain Innovation”
© 2018 EIZO Corporation. All Rights Reserved.13
© 2018 EIZO Corporation. All Rights Reserved.
Sales and Operating Margin - Goals
(JPY Billion)
18.1 18.5 18.5 18.5
29.7 34.8 37.8 40.5
5.77.0 7.5 8.2
7.89.5
12.5 13.315.2
11.211.7
13.57.2 3.0
3.03.0
84.0 84.091.0
97.010.2%
9.6%
10.8%11.3%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
17F 18F Plan 19F Plan 20F Plan
B&P HC CW V&S AMU OTH Operating Margin
89%
vs17F
169%
143%
136%
102%
15
© 2018 EIZO Corporation. All Rights Reserved.
R&D Increase investment to accelerate “Imaging Chain Innovation”
(JPY Billion)
4.9 5.4 5.5 5.7
1.01.2
1.62.05.9
6.67.2
7.8
7.0%7.9% 7.8% 7.9%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
0.0
2.0
4.0
6.0
8.0
17F 18F Plan 19F Plan 20F Plan
R&D Investment R&D / Net Sales
16
© 2018 EIZO Corporation. All Rights Reserved.
2.0
6.4
2.5 2.6
0.0
2.0
4.0
6.0
8.0
17F 18F Plan 19F Plan 20F Plan
CAPEX Depreciation
CAPEX18F: Acquire two new facilities in Germany to enhance R&D and
production capabilities → JPY 32 Bil.
19F - 20F: Plan additional logistics and R&D facilities in Japan
for future growth
2.5 - 6.0
(JPY Billion)
2.5 - 6.0
17
© 2018 EIZO Corporation. All Rights Reserved.
Carina System Corp. (Japan)
Image capture and
distribution in Operating
room field
M&A Continue to enhance business models
Tech Source, Inc. (USA)
ATC business
Siemens AG (Germany)
HC business
eg-electronic GmbH(Germany)
ATC, V&S business
Avnet Europe Comm. VA (Europe)
Sales and Marketing
M&A – Historical 2005 ~ 2018
Imation Corp. (Japan)
HC system integration
business
Panasonic Healthcare Corp.
(Japan)
Endoscopy business
EXCOM AG (Switzerland)
Sales and Marketing
18
© 2018 EIZO Corporation. All Rights Reserved.
Continuous improvement on operational efficiencies driven by AI / RPA*
The rise in SG&A expenses will be kept under 3% vs 17F (excl. R&D, investment, M&A)
Expenses for investment and sales expansion will increase to drive business
Selling, General and Administrative Expenses
(JPY Billion)
6.2 6.5 6.9 7.2
5.5 6.2 6.7 7.3
5.96.6 6.6 6.8
17.519.3 20.2 21.2
20.8%23.0% 22.2% 21.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0.0
10.0
20.0
30.0
17F 18F Plan 19F Plan 20F Plan
Personnel R&D Other SG&A / Net Sales
*Robotic Process Automation
19
© 2018 EIZO Corporation. All Rights Reserved.
1. Review: 5th Mid-Term Plan
(Fiscal Years 2015 - 2017)
2. Direction: 6th Mid-Term Plan
(Fiscal Years 2018 - 2020)
3. Business Strategy by Key Markets
4. Return to Shareholders
20
© 2018 EIZO Corporation. All Rights Reserved.
Healthcare“Imaging Chain Innovation” expands our business domain
Comprehensive solutions to
encompass the “Capturing”,
“Recording/Distributing” and
“Displaying” of images
© 2018 EIZO Corporation. All Rights Reserved.
Diagnostics
◼ Further competitiveness through evolving our
diagnostic workflow concept
◼ Drive the sales in strategic markets (US,
China, India, Middle East + Southeast Asia)
Operating Room
◼ Acceleration of Endoscopy monitor business
◼ Business synergy with Carina System Co.,
Ltd.
Healthcare“Imaging Chain Innovation” expands our business domain
22
© 2018 EIZO Corporation. All Rights Reserved.
Establish market dominance by leading in the HDR era
Creative Work
Solutions to improve work efficiency throughout
the HDR* content production workflow
Seamless color management
To enable all users to achieve professional-level
creation*HDR: High Dynamic Range
23
© 2018 EIZO Corporation. All Rights Reserved.
Level up! Advancing technology, supply and support
V&S - Overall
Further utilize EIZO’s comprehensive R&D
power including optical bonding, AR film, touch
panel, etc.
Advanced environmental resistance
performance
◼ MIL-STD
Speedy customization through “Agile” R&D
PLM* corresponding to long-term project
development *PLM: Product Life-cycle Management
24
© 2018 EIZO Corporation. All Rights Reserved.
Imaging chain supporting the efficient monitoring of air traffic
V&S - ATC
End-to-end visual display solutions
and content management
PLM, expert support and solution
development
Capture No.1 market position
25
© 2018 EIZO Corporation. All Rights Reserved.
Innovative solutions for onboard IT systems
V&S - Maritime
High Sensitivity Camera
ECDIS monitor and beyond
◼ “Industry's first” large-scale chart table LCD
monitor with touch panel for maritime route
planning and navigation
◼ Implementing EIZO technology into
“Embedded” systems to complete unique
maritime surveillance solutions
© 2018 EIZO Corporation. All Rights Reserved.
Target multiple security & surveillance environments
V&S - Security & Surveillance (1/3)
Expansion of IP decoding monitor line-up
◼ 4K support, size variation
◼ Video Management System (VMS) Support
Cross-selling with EIZO’s wide product line-up
27
© 2018 EIZO Corporation. All Rights Reserved.
Strengthen our business model with
EIZO’s original camera
Image data encoding/decoding, distribution
and analysis
◼ FHD multi-screen simultaneous display
◼ H.265*
◼ VMS support
◼ Utilizing AI technology
Target multiple security & surveillance environments
V&S - Security & Surveillance (2/3)
Camera
*H.265: A video compression standard that enables efficient transmission with
4K and 8K video at approximately twice the compression rate of H.264
28
© 2018 EIZO Corporation. All Rights Reserved.
Target multiple security & surveillance environments
V&S - Security & Surveillance (3/3)
Optimal image display in multiple installations
◼ High brightness
◼ De-fog function
◼ Housing options
◼ Optical bonding
29
© 2018 EIZO Corporation. All Rights Reserved.
Define new ways of entertainment abiding
to evolving regulations
Realize further development efficiency by
utilizing EIZO original tools
Further strengthen cooperation with
partners
Flexible production and supply adapted to
needs©SANYO BUSSAN CO.,LTD.
Stay ahead of market changes to maintain No.1 position
Amusement
Further competitiveness to show EIZO’s presence30
© 2018 EIZO Corporation. All Rights Reserved.
1. Review: 5th Mid-Term Plan
(Fiscal Years 2015 - 2017)
2. Direction: 6th Mid-Term Plan
(Fiscal Years 2018 - 2020)
3. Business Strategy by Key Markets
4. Return to Shareholders
31
© 2018 EIZO Corporation. All Rights Reserved.
- Returning profit to shareholders is a key management concern for EIZO Corporation, and we have followed a basic policy of
stable 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.
Basic policy on profit distribution to shareholders
(JPY / Share)
- Dividend Payout Ratio (Consolidated base)
- Share buybacks 0.9 billion in 08F and 1.6 billion in 11F
Dividend Payout
Ratio11.3% 9.5% 14.4% 17.5% 20.6% 41.0% 229.7% 22.6% 31.5% 67.5% 66.7% 21.6% 38.5% 35.5% 30.1% 26.9% 33.8%
Shareholder Return
Ratio11.3% 9.5% 14.4% 17.5% 20.6% 41.0% 375.2% 22.6% 31.5% 168.0% 66.7% 21.6% 38.5% 35.5% 30.1% 26.9% 33.8%
7.5 10 1525 30
40 4025 25 25 25 25 30 35 40 45 50
7.5
2025
30
40
4030
25 25 25 25 3030
3540
4550
15
30
40
55
70
80
70
50 50 50 5055
60
70
80
90
100
0
10
20
30
40
50
60
70
80
90
100
02F 03F 04F 05F 06F 07F 08F 09F 10F 11F 12F 13F 14F 15F 16F 17F 18F Plan
Interim Dividend Year-end Dividend
Return to Shareholders
32
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