Epson targets stronger ROIC and growth with new long-term vision and business plan

Epson has unveiled ENGINEERED FUTURE 2035, a long-term corporate vision outlining its strategy through to 2035, alongside a new Mid-Term Business Plan (2026–2028) as the first phase of execution.

Under the plan, Epson will use return on invested capital (ROIC) as a key management metric to optimise capital allocation, redesign its business portfolio and focus resources on strategic growth domains. The company is targeting a ROIC of 8% or more by FY2028 and plans to invest approximately ¥280 billion in growth areas over three years.
Epson said the strategy is designed to transform its earnings base and sustain corporate value growth by leveraging its efficient, compact and precise technologies. The company also committed to shareholder returns, setting a minimum dividend on equity (DOE) of 3% alongside flexible share buybacks.

The company says the ENGINEERED FUTURE 2035 vision reflects a decade expected to be shaped by environmental and geopolitical volatility, constrained resources and global labour shortages. The company emphasises that future sustainability will depend on how effectively society uses limited resources, energy and human potential.

Rather than advancing technology in isolation, Epson aims to design and optimise technologies that function effectively in real-world environments. The company will build on its long-standing “Sho-Sho-Sei” philosophy to translate advanced technology into practical, socially valuable solutions.

As part of its Mid-Term Business Plan, Epson will shift away from reliance on mature markets and prioritise growth domains. Key initiatives include reviewing fixed cost structures, improving asset efficiency, redesigning global operations and supply chains, and strengthening sales in emerging markets. The company will also expand recurring business and solutions to enhance earnings power while reducing invested capital.

Investment will be directed toward growth segments including Precision Innovation, positioned as the primary growth engine, and Industrial & Robotics, expected to drive the next phase of expansion. Meanwhile, Office & Home Printing and Visual & Lifestyle segments will continue to generate steady cash flow.

Epson said disciplined ROIC-based management and targeted investment will underpin its efforts to achieve both growth and capital efficiency, while supporting long-term value creation and structural transformation through to 2035.