Mid-Term Business Plan Fiscal Year Visual Technology Company 10 / 15 / 150

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1 Mid-Term Business Plan Fiscal Year Visual Technology Company 10 / 15 / 150

2 . Review: 4th Mid-Term Plan Fiscal Year Direction: Current Mid-Term Plan Fiscal Year Business Strategy by Segment. 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 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. Notation of fiscal years 17F appearing in this presentation means Fiscal year 2017, that is Fiscal year ended Mar. 31,

3 -1. Review: 4th Mid-Term Plan 1. Global Network EU US China 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 Increased business in vertical markets Medical - Built strong partnership with top market players Graphics- Strengthened the business for the Media & Entertainment (M&E) markets Solid operation, achieved profitability 3

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

5 -3. Review: 4th Mid-Term Plan (Billions of yen) Sales, Operating margin General Vertical Amusement Others Operating margin % % 9.3% % % 10.0% 8.0% 6.0% 4.0% F 12F 13F 14F Mid-Term Plan 2.0% 0.0% 5

6 . Review: 4th Mid-Term Plan Fiscal Year Direction: Current Mid-Term Plan Fiscal Year Business Strategy by Segment. Return to Shareholders 6

7 -1. Targets of Mid-Term Plan 10 / 15 / 150 Operating margin 10% By growth in vertical markets, amusement monitors to total revenue of 15% Sales growth in vertical markets +JPY150 Oku = 15 Billion 7

8 -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

9 -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

10 Goals: Sales and Operating margin (Billions of yen) 80 B&P Vertical Amusement Others Operating margin % 6.6% % F 15F* 16F* 17F* Operating margin 10 Sales growth in vertical markets +JPY150 Oku ( = 15 Billion) Amusement monitors as total sales 15% *Mid-Term Plan 10

11 -5. R&D R&D (Billions of yen) % R&D/Net sales 10.0% 9.0% 8.9% 9.0% 8.4% 8.0% % F 15F* 16F* 17F* *Mid-Term Plan 6.0% 11

12 -6. CAPEX 15F - Build new factory to increase capacity for business growth (Billions of yen) CAPEX Depreciation Factory F 15F* 16F* *Mid-Term Plan 12

13 -7. Selling, General and Administrative Expenses SG&A (Billions of yen) R&D SG&A/Net sales SG&A/Net sales 25.0% 24.0% % 23.6% 23.4% 22.3% F 15F* 16F* 17F* 23.0% 22.0% 21.0% 20.0% 13 *Mid-Term Plan

14 . Review: 4th Mid-Term Plan Fiscal Year Direction: Current Mid-Term Plan Fiscal Year Business Strategy by Segment. Return to Shareholders 14

15 -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 ~ 2012 ~ 2014 ~ 15

16 -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

17 -3. Graphics Friendly Color Management for all amateurs and professionals Keep No.1 position in the photography and printing markets Become No.1 in the M&E markets Develop the product for market expansion Make color management for all potential users 17

18 -4. Entertainment ex: Differentiation through unrivaled functionality Connectivity with smartphones CONNECT Collaboration with gaming software developers ENJOY Color presets via the cloud SHARE 18

19 -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

20 -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 Information System) Differentiation by state-of-the-art technologies (ex. optical bonding) 20

21 -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 into train cabin Platform Surveillance Ensure safety by clear visibility and software 21

22 -5. Industrial (4/5) Comprehensive capabilities (technology, supply, support, and more) form the pillar of EIZO business Security & Surveillance Powerful solutions for any environment Innovative solutions for PC-less connection to IP cameras FA Wide product lineup for embedded applications (ex. touch panel, chassis mount) 22

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

24 -6. Amusement Maintain 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

25 . Review: 4th Mid-Term Plan Fiscal Year Direction: Current Mid-Term Plan Fiscal Year Business Strategy by Segment. Return to Shareholders 25

26 . Return to Shareholders 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, and we strive to strengthen our profit base to ensure we achieve this goal. 26

27 Go beyond a monitor company w w w. e i z o g l o b a l. c o m

Mid-Term Business Plan 100B AGAIN!

Mid-Term Business Plan 100B AGAIN! 2012-2014 100B AGAIN! 1 (6737) Table of Contents I II III Direction Global Network Sales Targets IV Business Plan (by Product & Business Unit) V R&D VI Basic Policy on Profit Distribution Disclaimer Regarding