Amur Opportunity

Topics of Amur

The First Machine of bizhub ‘Next Generation’ !

Firmware leading – Donau will follow !

New OpenAPI 3.x [WEB Browser based]

Base for all upcoming Color Products in Segment 2+

Monochrome Ability to Equivalent Mono MFP

Toner bottle vs Toner Cartridge

Drum- Development Unit vs Imaging Unit

Outstanding Finishing

Low Set-up Time

Ultra Short Image Stabilization [Best In Class]

99% against theoretical performance!

ECO Friendly

Environmental Is the Key

Tec Value Lower Consumption in sleep mode !

Energy Star – Easy surpasses the new Energy Star standards !

Quiet Operation – Noise reduction !

Resource-friendly design makes active use of recycled materials !

New toner bottle – designed for easy recycling !

Simitri HD - lower fusing temperature !

CY 2009 Total Color Market Forecast

1~36 ppm1~36 ppm

37+ ppm37+ ppm

83%83%Amur Amur

! !

83%83%Amur Amur

! !

Amur Sales Strategy

Capture Higher Market Share for Segment 2+3 !

“Aggressive Replacement of Monochrome” B2C !

“Consequent MIF Retention” C2C – MF22 and MF25 !

Maintain the Genre Top Position for Color !

significant increase of share in Segment 2 and 3 by FY2010 !

Seg 2+3 is the source of profit for Canon and RICOH

Embrace / Activate Dealer Channel !

Attractive Seg 2+3 products will help your dual line dealers stay with OLV

Strong line-up Donau + Amur

MF22 (MF25) Replacement

MIF Retention is key word

Do you grasp the next replacement Do you grasp the next replacement timing of your MIF?timing of your MIF?

Do you grasp the next replacement Do you grasp the next replacement timing of your MIF?timing of your MIF? Yes, Yes, 80%80% we do. (A) we do. (A)Yes, Yes, 80%80% we do. (A) we do. (A)

Do you take adequate pre-sales Do you take adequate pre-sales action before replacement timing?action before replacement timing?Do you take adequate pre-sales Do you take adequate pre-sales

action before replacement timing?action before replacement timing? Yes, Yes, 90%90% we do. (B) we do. (B)Yes, Yes, 90%90% we do. (B) we do. (B)

Did salesman make replacement Did salesman make replacement proposal?proposal?

Did salesman make replacement Did salesman make replacement proposal?proposal?

Yes, Yes, 90%90% we did. (C) we did. (C)(10% MIF had already been (10% MIF had already been

replaced by competitor)replaced by competitor)

Yes, Yes, 90%90% we did. (C) we did. (C)(10% MIF had already been (10% MIF had already been

replaced by competitor)replaced by competitor)

Could you replace the MIF finally?Could you replace the MIF finally?Could you replace the MIF finally?Could you replace the MIF finally? Yes, Yes, 90%90% we could. (D) we could. (D)Yes, Yes, 90%90% we could. (D) we could. (D)

Action to grasp more about next replacement timing

Standardization of sales activities

Tool to monitoring sales activities

Action to guard MIF lost Appropriate sales proposal

A X B X C X D = 58,3%

Even above assumptions, your MIF retention rate is only 58%58%..

How to increase the retention ratio?

QuestionQuestion AnswerAnswer

MF22 (MF25) Retention

Situation

“Large” Color MIF of MF22/25 is existing

Probably many of those machines have been placed with low GP in mono click!

Large ratio of MF22 of them equipped with Fiery Controller !

Average color output ratio is still high, may be about 40%!

Hypothesis

Acceleration of this MIF will help increasing revenues [Fiery effect] !

Consequent MIF retention will help to stabilise color output ratio [non-hard] !

… and help on the monochrome profit as well !

Significant service cost down can be expected !

Sales Result bizhub C350 [April 2004 - Dec 2005]

Machine /Option Sales

C350 1070

IC-401 [16%]

Feeder [90%]

Duplex [89%]

HDD [67%]

Finisher [21%]

Saddle Finisher [16%]

2004/052004/052004/052004/05

Western European Market

Total Market Forecast – By Category

2008 2009 2010 2011 2012

39,6%

14,4%

29,8%

16,2%

42,0%

17,1%

24,1%

16,8%

40,5%

21,2%

16,5%

21,8%

41,3%

19,8%

18,9%

20,0%

41,9%

18,5%

21,4%

18,3%

Office Color

Office B&W

PCs Color

PCs B&W

Color + Monochrome MFP [without PC segment]

2008 2009 2010 2011 20120

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

Total Color

Total Mono

Monochrome Forecast – By Category

Color Forecast – By Category

Western European MIF

2008 Total Color MIF – 4 Cycle + Tandem

CA

NO

N

KO

NIC

A M

INO

LT

A

RIC

OH

XE

RO

X

SH

AR

P

TO

SH

IBA

NA

SH

UA

TE

C

HP

GE

ST

ET

NE

R

INF

OT

EC

Oth

ers

0

50.000

100.000

150.000

200.000

250.000

300.000

Total Color

MIF

1.418.000

units

Total Color

MIF

1.418.000

units

2008 Total Color MIF – 4 Cycle + Tandem

23.32923.329

199.368199.368

79.67779.677

199.209199.209

27.50527.505

55.76655.766

18.92318.923

202.109202.109

4 Cycle4 Cycle

TandemTandem

2008 4-Cycle MIF Opportunity (<9ppm colour)

iR 3100 iR 2570 Aficio1224C

WorkCentre7132

iR 3170 Aficio MPC1500SP

Others

28.770

24.440

19.039

40.058

9.227

14.276

18.444

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

2008 4-Cycle MIF Opportunity (>9ppm colour)

e-S

tud

io 2

81

C

Wo

rkC

en

tre

M2

4

Afic

io 3

22

4 C

e-S

tud

io 3

51

1

e-S

tud

io 3

51

C

Afic

io 1

23

2 C

Afic

io 3

22

4 C

e-S

tud

io 4

51

C

Oth

ers

0

5.000

10.000

15.000

20.000

25.000

30.000

2008 Monochrome non-KM MIF Opportunity [20~39ppm]

Total Mono

MIF 2.000.0000 Total Mono

MIF 2.000.0000

Western European 2009 Q1 Data

Q1 2009 Color 20~29ppm

Q1 2009 Color 30~36ppm

Q1 2009 Monochrome 20~39ppm

Wrap-Up

Summary Road to Color Genre Top

Huge Color MIF opportunity

More than 45% coming from 20~29ppm arena!

Canon / RICOH been forerunner in the mono replacement field with 4-Cycle

160.000 units in the field – 70.000 of them being sold in CY2004/2005 !

Olivetti generated large MIF in color tandem arena !

Find out your MF22 placements for replacement

No new product introduction in 2009 other than Konica Minolta…

… but Canon new AiR to come soon!

Gain momentum with Donau / Amur series and knock out competitors !

SUCCESS Factor: Target for external MIF (mono and CC) and

increase your Retention Ratio!

……

Thanks!...