EIZO: Targets ¥94bn sales, ¥8bn operating profit by 2029

EIZO aims for ¥94 billion in sales, ¥8 billion in operating profit and an 8.5% operating margin in the final year of its ninth mid-term plan. Sales are projected to rise 10.6% from the fiscal 2026 plan, while operating profit is forecast to increase 142.4%.

Net income includes gains from the sale of investment securities. EIZO aims to lift ROE to 8.0% in fiscal 2029 from 5.6% in fiscal 2025. It is targeting earnings per share of ¥400 in fiscal 2029, with an average annual growth rate of 30% from fiscal 2026 onward.

EIZO describes the plan as “three years to evolve into a video solutions company and reform its earnings structure.” It aims to invest in growth markets while improving margins, turning profit growth and higher capital efficiency into increased corporate value.

EIZO will divide its businesses into three areas based on factors including market growth and profitability, directing resources toward growth areas. It will also accelerate its shift from a monitor-led business model to one that combines systems, software and services.

• Growth areas: Surgery and treatment, surveillance and security, and defense. EIZO will concentrate growth investment here to expand its businesses and profits.
• Core areas: Diagnosis and testing, air traffic control, marine and amusement. The company aims to maintain competitiveness and improve profitability by strengthening sales and service capabilities.
• Restructuring areas: B&P and creative work. EIZO will review its business structure while maintaining these areas’ role in supporting its technology, brand, procurement and manufacturing foundations.

In healthcare, EIZO plans to expand software and services, use AI for quality control, and strengthen surgical monitors and video systems for operating rooms. In V&S, or visual and video systems, it will use its strengths in imaging equipment and systems engineering to expand overseas in social infrastructure and defense. In restructuring areas, it will review product offerings and customer segments, with an emphasis on value-added products and profitability.

The shift from monitor sales to video solutions will require EIZO to build its ability to offer software and services alongside hardware. The company will also use M&A to advance its video solutions, strengthen engineering capabilities and expand its business base in healthcare and V&S.

EIZO plans to invest ¥40 billion to ¥60 billion in growth over the three-year ninth mid-term plan. Areas include M&A, developing markets such as India and the Middle East, establishing production facilities in India, strengthening its video solutions business and research and development.

• Expanding the business base: EIZO will broaden its sales and service networks in strategic regions and develop production facilities in India.
• Technology and product development: The company will invest in research and development to support medium- to long-term growth, as well as next-generation technologies and new markets.
• Staffing and development: EIZO will allocate employees to growth areas in a planned manner and move staff across departments. It will develop digital transformation and AI talent and retrain engineers.
• Hiring and retention: The company will hire in line with its medium-term staffing plan, secure specialized talent, review its evaluation system and improve employee engagement.

The plan does not call for workforce reductions or site closures. Instead, it emphasizes assigning employees to growth areas, hiring specialists and reskilling staff. For students seeking jobs, the plan points to demand for talent in software, AI and overseas expansion, in addition to healthcare and social infrastructure businesses.

EIZO plans to maintain its annual dividend at ¥115 per share during the plan period, keeping total dividends within core net income, which excludes gains from sales of investment securities. It will also make share buybacks as needed, targeting total returns of 70% of consolidated net income plus alpha.

• Improving capital efficiency: EIZO will accelerate reductions in strategic shareholdings and use shares held for pure investment purposes to fund growth investment.
• Financial management: The company aims to pursue growth investment and shareholder returns while maintaining financial soundness, with its equity ratio expected to remain in the high 60% range.
• Capital policy: EIZO will incorporate ROE into performance-linked compensation for directors and introduce a share incentive plan for employees.

While signaling a stable dividend, EIZO aims to improve asset efficiency and ROE through capital measures that include selling investment securities and buying back shares. The company says the plan’s targets and measures are based on assumptions and are not guaranteed to be achieved.