Masamitsu Sakurai
President and COO
Ricoh Company, Ltd.
March 4, 2003
Ricoh
Ricoh
’
’
s Medium-Term Management Strategy
s Medium-Term Management Strategy
1
AGENDA
AGENDA
I. Outline of Medium-Term Management Strategy
II. Main Strategies
1 Main Business Strategy Progress (Imaging Business)
i. B to C Transition
ii. High-Speed Machine Sales Expansion
iii. Solutions Business Promotion
2 Regional Strategies
i. The Americas
ii. Europe
iii. China
iv. Domestic/Overseas Sales Ratio in Imaging Business
3 Other Businesses Strategy
4 Technology Strategy
III. Forecast of Operating Results
2
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'00
'01
'02
'03
'98
'04
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I. Outline of Medium-Term Management Strategy
I. Outline of Medium-Term Management Strategy
14th Plan
Business Structure Reform
Business Structure Reform
Main Business Strategies
Main Business Strategies
i.
i.
B to C Transition
B to C Transition
ii. High-speed Machine Sales Expansion
ii. High-speed Machine Sales Expansion
iii. Solution Business
iii. Solution Business
Overseas Business Strengthening
Overseas Business Strengthening
Regional Strategies
Regional Strategies
i. The Americas
i. The Americas
ii. Europe
ii. Europe
iii.China
iii.China
13th Plan
Contribute to
productivity
improvement
and knowledge
creation
for individuals
working anytime,
anywhere
Further Reinforcement of
Further Reinforcement of
Technology
Technology
Technology Strategy
Technology Strategy
i
i
. Growth and reinforcement of core business
. Growth and reinforcement of core business
ii. Cultivation of new business
ii. Cultivation of new business
iii. Basic research
iii. Basic research
12th Plan
CS Management
Reinforcement of
Overseas Sales
Reinforcement of
MFP Lineup
Company-wide Structural Reform
Company-wide Structural Reform
*B to C Transition: Black/white to color transition *MFP: Multifunction Printer
*CS: Customer Satisfaction
3
II. Main Strategies (
II. Main Strategies (
Enhance Value and Increase Customers
Enhance Value and Increase Customers
)
)
<
<
<
P
rovide cus
tom
e
rs
wit
h
n
e
w
values
(
C
us
to
m
er enclos
u
r
e,
high
e
r ad
ded
value )
Existing businesses
New businesses
1F
Standalone
Equipment
2F
Network
Connective
Equipment
3F
Printing
Solutions
4F
Document
Solutions
Expansion of customers >>>
B
t
o
C
T
ra
n
si
tio
n
B
t
o
C
T
ra
n
si
tio
n
H
ig
h
-s
p
ee
d
M
a
ch
in
e
S
a
le
s E
x
p
a
n
si
o
n
H
ig
h
-s
p
ee
d
M
a
ch
in
e
S
a
le
s E
x
p
a
n
si
o
n
Document
Solutions
Document
Solutions
Printing
Solutions
Printing
Solutions
Sales through
Internet
5 regional
Global Marketing
S
u
pp
ly
, s
erv
ic
e, an
d s
u
p
p
o
rt
Ma
in
te
na
nc
e s
u
p
por
t f
o
r
n
etw
o
rks
an
d eq
uip
m
en
t
Use
w
ar
e
Income sources
Enhancing Customer Base
*Major Accounts
*New Sales Channels
*Respond to New Requirements
Selecting and focusing on promising businesses, and
efficient management resource allocation
Further strengthening
business structure
Main Strategies
B to C Transition: Black/white to color transition
4
II-1.
II-1.
Main Business Strategy Progress
Main Business Strategy Progress
(Imaging Business)
(Imaging Business)
Global 5 Region Marketing
Optimize
TDV
Customer Needs
•
Color
•
High Speed
•
One-Stop
•
Total Solutions
Goal
Main Strategies
Sa
les St
ra
te
g
ies
P
ro
duct
St
rat
eg
ies
T
echnolog
y
Stra
tegies
Structural Refo
rm
TDV: Total Document Volume B to C Transition: Black/white to color transition
Document
Solutions
B to C
Transition
High-speed
Machine
Sales
Expansion
Printing
Solutions
5
Present
M
a
rk
et
S
ize
M
a
rk
et
S
ize
Past
Future
•
•
By offering a full lineup of color machines which can replace black and white
By offering a full lineup of color machines which can replace black and white
offerings, enhance market share
offerings, enhance market share
Create new color
markets
1-1-
i.
i.
B to C Transition
B to C Transition
(1)
(1)
Color
specialized
machine
strategy
●
Strongest engine
●
Cost Performance
<Target>
No.1 market
share in color
machines
<Target>
No.1 market
share in color
machines
Black and White
Machines
Color machines
●
Utilizing high market coverage
“B to C
Transition”
Strategy
B to C Transition: Black/white to color transition
~
~
6
1-1-
i.
i.
B to C Transition
B to C Transition
(2)
(2)
•
•
Enhancement and strengthening of color machine lineup
Enhancement and strengthening of color machine lineup
Previous target markets and launched machines
Current/future target markets and launching machines
B to C
B to C
Transition
Transition
subject
subject
Large/Medium-size customer
Medium/Small-size customer
Mid-speed
Mid-speed
color
color
PPC/MFP
PPC/MFP
High-speech
monochrome
MFP
High-speed
High-speed
color
color
LP
LP
Monochrome
PPC/MFP
Monochrome
LP
Low-speed
Low-speed
color LP
color LP
Low-speed
Low-speed
PPC/MFP
PPC/MFP
Centralized
at floors/
centers
Divisional
sharing
Group
sharing
Small
groups
sharing
Business
Personal
Mid-speed
Mid-speed
color
color
LP
LP
Monochrome
PPC/MFP
Monochrome
LP
Low-speed
Low-speed
color LP
color LP
Mid-speed
Mid-speed
color
color
PPC/MFP
PPC/MFP
High-speed
High-speed
color
color
MFP
MFP
High-speed
High-speed
color
color
LP
LP
High-speed
High-speed
color
color
PPC/MFP
PPC/MFP
Prioritized
Domain
Large/Medium-size customer
Medium/Small-size customer
Centralized
at floors/
centers
Divisional
sharing
Group
sharing
Small
groups
sharing
Business
Personal
PPC: Plain Paper Copier, MFP: Multifunction Printer, LP: Laser Printer
7
1-1-
ii.
ii.
High-Speed Machine Sales Expansion
High-Speed Machine Sales Expansion
High-Speed
Mid-Speed
Low-speed
←
Copy
in
g
s
p
e
ed
Market Share (Worldwide)
Copier Market share
Copier Market share
by product segment
by product segment
•
•
Expanding market share and enhancing TDV by providing competitive machines
Expanding market share and enhancing TDV by providing competitive machines
TDV: Total Document Volume
Past
Past
Present
Present
Future
Future
<Target>
No.1 market share in
high-speed machine
<Target>
No.1 market share in
high-speed machine
●
Cost Performance
●
Color
8
1-1-
iii. Solutions Business Promotion
iii. Solutions Business Promotion
(1)
(1)
•
Prioritized Domain
•Large Corporations
•Government and Municipal Offices/Schools
•Vertical Markets
•
•
Solutions Business-
Solutions Business-
Key Factors for Success
1. Products-Basic Functions, Reliability
4. Reliable Support and Service
3. Proposal/Arrangement Ability
2. Meeting “Open & Modular”
9
Maintaining/
Maintaining/
enhancing
enhancing
CV
CV
Color LP
Color LP
•
•
Increase TDV by
Increase TDV by
“
“
MFP+P
MFP+P
”
”
Solutions
Solutions
Print Volume (PV)
Print Volume (PV)
Copy Volume (CV)
Copy Volume (CV)
MFP
MFP
Obtain PV
Obtain PV
Ob
ta
in
PV
Ob
ta
in
PV
*
*
Co
lo
ri
zat
ion
Co
lo
ri
zat
ion
+
+
MFP+P: Multifunction Printer+Printer TDV: Total Document Volume LP: Laser Printer TCO: Total Cost of Ownership
*
*
Document
Document
Solutions
Solutions
Operational workflow
improvement
High efficiency
High productivity
*
*
Multifunctional
Multifunctional
*
*
Printing
Printing
Solutions
Solutions
TCO analysis
TCO reduction
10
Docu
ment Volum
e
Meeting the needs of
Meeting the needs of
“
“TCO reduction
TCO reduction”
”
through printing
through printing
solutions
solutions
By strengthening
By strengthening
document solutions
document solutions
through
through “
“MFP+P,
MFP+P,”
”
increase TDV
increase TDV
Present
1-1-
iii. Solutions Business Promotion
iii. Solutions Business Promotion
(3)
(3)
Output Volume
Output Volume
from MFP
from MFP
(PV+CV)
(PV+CV)
Print Volume (PV)
Copy Volume (CV)
MFP+P: Multifunction Printer+Printer TDV: Total Document Volume TCO: Total Cost of Ownership
11
Customer Needs
• Proposal for higher operational
productivity
• TCO Reduction
• Submitting machine operation report
• Responding to electronic commerce
Ability to appropriate proposal and
system designing by grasping latent
customer needs
•
•
Providing Solutions to Large Corporations
Providing Solutions to Large Corporations
Worldwide service & support
structure
• Worldwide Machine installation
• Worldwide uniform service
Necessary abilities and systems
1-1-
iii. Solutions Business Promotion
iii. Solutions Business Promotion
(4)
(4)
12
•
GMA(
Global Major Account)
Business Talk/Signing Contracts
’00/1H
’00/2H
’01/1H
’01/2H
’02/1H
Business Talk
Signing Contracts
1-1-
iii. Solutions Business Promotion (5)
iii. Solutions Business Promotion (5)
Numbe
r of
ite
ms
13
2-2-
i. Regional Strategies
i. Regional Strategies
--The Americas
--The Americas
•
Further enhancement of business with large corporations
*Strengthening direct sales/service capabilities
*Strengthening solutions sales capabilities
Increase TDV by Securing High-Volume Users
Obtain No.1 Copier Market Share
Obtain Top Class Color Laser Printer Market Share
14
2-2-
ii. Regional Strategies
ii. Regional Strategies
--Europe
--Europe
•
Make full use of entire Ricoh group(Ricoh, NRG, Lanier)
advantages
•
Further enhancement of business with large corporations
Obtain TDV by Increasing MIF Coverage
Maintain and further enhance No.1 Copier Market Share
Obtain Top Class Color Laser Printer Market Share
TDV: Total Document Volume
MIF: Machine in the Field(Number of machines installed in the market)
15
2-2-
iii. Regional Strategies
iii. Regional Strategies
--China
--China
Sales: Maintain and further enhance No.1 market share
•
Strengthening indirect sales capabilities
•
Strengthening direct sales/service capabilities
•
Further enhancement of business with large corporations
Production: Further strengthening cost competitiveness as an
“intensive production base”
•
Strengthening of parts production technology
Development: Full-scale utilization as a technology
development base
•
Strengthening software development capabilities
•
Strengthening for modifying design capabilities
Utilizing 30 years of experiences,
16
2-2-
iv. Domestic/Overseas Sales Ratio in Imaging Business
iv. Domestic/Overseas Sales Ratio in Imaging Business
Past
Present
Future
Ne
t Sa
le
s
I/O: Input/Output