EIZO Announces Mid-Term Business Plan: "Amplify Imaging Value"

Press Release

EIZO Announces Mid-Term Business Plan:

"Amplify Imaging Value"

Hakusan, Japan, May 11, 2021 - EIZO Corporation (TSE: 6737) today announced its 7th Mid-Term Business Plan (FY2021 - FY2023), which defines a three-year business strategy starting from FY2021, as follows.

1. Mid-Term Business Plan (FY2021 - FY2023)

Since EIZO's founding in 1968, we have consistently evolved our unique business model with "Imaging" at the core. As a Visual Technology Company, we will continue to evolve and pursue the value creation. In the 7th Mid-Term Business Plan, we will enhance the value of "Imaging" through Products & Systems, and expand our business field.

We will strengthen our Products, i.e. monitors, cameras, network encoders through the in-house development of EIZO's own algorithms, AI, and other core technologies. In addition, to amplify the value of "Imaging", EIZO will further develop our Systems business utilizing "Imaging Chain" consisting of our Products.

We call this Systems business "EIZO Visual Systems" (EVS). This will allow us to evolve our business model to the NEXT stage by strengthening Products through the addition of EVS, while EVS grows alongside our Products offerings to provide amplified solutions to each market.

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2. Financial Goals

Operating Income Margin: 15%

We aim to achieve a consolidated Net Sales target of 88.0 billion yen and an Operating Income target of 13.2 billion yen in FY2023.

		FY2020 Actual			FY2023 Plan
	Amusement	Other	Business&Plus		AMU	Other		B&P
	(AMU)	4.1	(B&P)			8.5 3.0	18.0
		14.4	16.8	V&S	15.5	88.0
Net Sales	Vertical	8.6	76.5
&		26.9		6.5		36.5
(JPY Billion)	(V&S)	5.4
Specific
	Creative Work		Healthcare	CW				HC
	(CW)		(HC)

Operating

Income / JPY 7.9 Bil. / 10.4%JPY 13.2 Bil. / 15.0%

Margin

3. Investment Plan

We will draw on our stable financial base, which is one of our major strengths, and aggressively invest in areas of business growth to achieve our goals in the 7th Mid-Term Business Plan.

R&D Investments

• 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

Capital Investments

• Advance Digital Transformation through IT infrastructure innovation for manufacturing, R&D, sales, etc.
• Drive increased productivity throughout the whole process from R&D to production, and promote labor-saving, including reduction of manual labor
• Streamline logistics by consolidating bases to a newly constructed building

In addition, we will apply flexible investment to other areas (including M&A) as necessary to strengthen our business model. We will continue to secure strategic inventory for stable supply, which is one of our key competitive strengths.

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4. 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 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.

(Note) 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 apparent or potential risks and uncertainties including forex impact, and risks related to supply and demand. Actual results may differ materially from these forecasts.

Further details will be announced on the EIZO's official website on May 25, 2021. https://www.eizoglobal.com/ir/index.html

About EIZO

EIZO (TSE:6737), which means image in Japanese, is a visual technology company that develops and manufactures high-end visual solutions to enrich people in their professional and personal lives. EIZO offers total imaging solutions with a range of monitors, software, video capture, processing, and distribution solutions, cameras, and advanced integrated technologies, to meet the specialized needs of customers in business, creative fields, healthcare, air traffic control, maritime, security & surveillance, and more. Headquartered in Hakusan, Japan, EIZO has R&D and manufacturing facilities in Japan, China, Germany, and the United States, and representation in more than 100 countries.

EIZO and the EIZO Logo are registered trademarks of EIZO Corporation in Japan and other countries. All other company names, product names, and logos are trademarks or registered trademarks of their respective companies.

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