© 2008 Fuji Xerox Co., Ltd. All rights reserved. Disclose to : Protect until : Handling : Author : Prepared on : ALL FX 20XX XX XX No Copy etc. Marketing

© 2008 Fuji Xerox Co., Ltd. All rights reserved.

Disclose to :Protect until :Handling : Author : Prepared on :

ALL FX20XX XX XXNo Copy etc.Marketing200XX XX.XX

FUJI XEROX INTERNAL USE ONLY

PM1 IBG Marketing

Kisyu-II Marketing Strategy

20th Oct2011

V2.1

2




Agenda

1. Performance Review2. Market Situation3. Marketing Strategy4. Pricing Strategy5. Collaterals schedule

3




1. Performance Review

4




1-1. FY 2010 OPB GI & ORS Rev

(Based on FY 2010 G.I performance)

Mono55%

Color44%

ES1%

OPB GI

Mono24%

Color72%

ES4%

OPB ORS Rev

Mono28%

Color 70%

ES2%

OPB Annuity Rev

117.6 K GI 48.3 B JPY 46.8 B JPY

Color MFP GI makes 44% of Total GIColor MFP contributes ORS Rev and Annuity Rev for over 70%

5




App. FY2010 Annuity


Mono28%

Color 70%

ES2%

OPB Annuity Rev

46.8 B JPY

FY 2010 Color Annuity Rev is increasing 4% from the previous year.FY 2010 Color DV is increasing 6% from the previous year.Mid-Low Color DV makes 73% of Total CLR DV in FY2010.

FY09 FY100%

20%

40%

60%

80%

100%

67% 71%

33% 29%

+4 poin

ts

OPB Annuity Rev Trend

FY09 FY100%

20%

40%

60%

80%

100%

43% 49%

57% 51%

OPB DV Trend

Color L; 19%

Color M; 54%

Color H; 24%

CLR DV

+6 poin

ts

CLR CLRCLR CLR

Mono Mono

Mono Mono

73%

IBG is growing CLR Annuity & CLR DV contributed by Mid-Low Colour MIF.

6




1-2. FY 2010 Kisyu & Rookie GI & ORS Rev


Rookie

13%

Kisyu45%

Others42%

OPB ALL ORS Rev

48.3 B JPY

Rookie

13%

Kisyu23%

Others64%

OPB ALL GI

117.6 K GI

OPB ALL

Kisyu GI is 23% of total OPB Gin of FY 2010.Kisyu contributes 45% of total OPB ORS Rev

Kisyu are the most important products for OPB business in IBG. OPB CLR

Kisyu is 53% of Total Color GI.62% Color ORS Rev comes from Kisyu.Kisyu & Rookie are approx. 80% of total Color GI and Color ORS Rev.

Rookie30%

Kisyu53%

Others17%

Color GI

Rookie18%

Kisyu62%

Others20%

Color ORS Rev

52K GI 34.7 B JPY

7




1-3. IBG Color Volume Trend by month

Exclude CVS.Mid (New) refers to Kisyu 30-45. Color 25ppm moved to Color Low.

Units G%

(13)%(7)%

5 %

(7)%(10)%(21)%

0 %

20 %

52 %

93 %

54 %

79 %

47 %

71 %

46 %44 %50 %

71 %

28 %25 %

17 %

1 %

15 %

23 %

(200%)

(150%)

(100%)

(50%)

0%

50%

100%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

09/ Apr

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 10/ Apr

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

LOW MID (New) MID (Old) HIGH Prior year G%

3,257

4,304

3,377 3,287

6,179

2,784

4,026

4,799

3,839

5,346

3,783

3,385

4,071

5,049

3,396

3,779

7,588

1,888

2.359

3,293

2,6782,517

3,134

2,648

Kisyu N/L

Kisyu PL N/L

Rookie N/L

49 %

72 %

47 % 44 %50 %

71 %

29 %26 %17 %

(0)%

14 %22 %

15 %3 %

19 %

35 % 38 %

(200%)

(150%)

(100%)

(50%)

0%

50%

100%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

10/ Apr

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 11/ Apr

May Jun Jul Aug

LOW MID (New) MID (Old) HIGH YOY G%

2,784

4,026

4,799

3,839 3,783

5,346

3,385

4,071

5,049

3,396

3,779

7,588

3,230

4,194

5,773

5,1715,227

After Kisyu launch in Nov ‘09 IBG CLR GI is achieving double digit growth

8




1-4. Kisyu G.I by OpCos

FXA FXNZ FXS FXM FXTH FXP FXK FXTW FXHK FXCL FXV AG -

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2708789 996 547 810 70

38261394 1109

2612

34 551

9,684

2,600 2,019 1,194 1,872 257

3,542

1,172 2,524 2,371

24 366

Model GI by OpCosRookie Kisyu


FXA generates 35% of Total IBG GI, FXK makes 13% and FXNZ makes 12%.FXA, FXNZ and FXTH show more than 70% component ratio of Kisyu.FXK, FXTW and FXCL are high Rookie ratio.

78%

77%

70%

54%

52%

52%

1

2

3

2

3

1

FXA35%

FXNZ9%

FXS7%

FXM4%

FXTH7%

FXP1%

FXK13%

FXTW4%

FXHK9%

FXCL9%

FXV0%

AG1%

Kisyu

9




IBG FXA FXNZ FXS FXM FXTH FXP FXK FXTW FXHK FXCL FXV AG0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

47% 53%63%

53%

27% 32% 30%

60%42% 44%

21%4%

22%

53% 47%37%

47%

73% 68% 70%

40%58% 56%

79%96%

78%

AP vs DC GI Ratio

Apeos Total DocuCentre Total

1-5. Kisyu AP VS DC GI Ratio


Apoes ratio more than 40%

FXA, FXNZ, FXS, FXK, FXTW, FXHK

Apoes ratio lower than 40%

FXCL, FXTH, FXP, FXV, AG

1 2

11

2 2

10




1-6. Kisyu Apeos Ratio by speed

© 2010 Fuji Xerox Co., Ltd. All rights reserved.

Low (30 ppm -)

IBG average shows around 39

%.

Mid (35ppm)

IBG average shows around 40

%.

High (45ppm+)

High Apeos ratio. IBG average is

over 60%.

0%

20%

40%

60%

80%

100%

39% 40%

63%64%

Kisyu GI Apeo Ratio K-25 Apeos RatioK-30 Apeos RatioK-35 Apeos Ratio

1

2


1 21

11




2. Market Situation

12




2-1. ‘Market Share & Market Size Trend’ Color total (Based on G.I)

09 Q1

09 Q2

09 Q3

09 Q4

10 Q1

10 Q2

10 3Q

10 4Q

11 1Q

11 2Q

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Competitors

Fuji Xerox

(K units)

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%

5%

10%

15%

20%

25%

30%

35%

40%Canon

Konica Minolta

Kyocera Mita

Ricoh

Sharp

Sin-doricoh

Toshiba

Fuji Xerox

Others

Color Total ‘Market Share’ Color Total ‘Market Size’

(Calendar year, Data source : IDC)

FX keeps No.1 position. but slightly decreasing for A3 Color market share.Color market size is getting increasing

13




2-2. ‘Market Share & Market Size trend’ by speed band (Based on G.I)

(Data source : IDC)

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%5%

10%15%20%25%30%35%40%45%50%

09 Q1

09 Q2

09 Q3

09 Q4

10 Q1

10 Q2

10 3Q

10 4Q

11 1Q

11 2Q

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000 (unit)

Low

colo

r(1

1~

30

ppm

)

The biggest market sizeIncreasing market sizeFX No.1 positionA lot of opportunity to increase FX's share more.

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%

10%

20%

30%

40%

50%

09 Q1

09 Q2

09 Q3

09 Q4

10 Q1

10 Q2

10 3Q

10 4Q

11 1Q

11 2Q

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 (unit)

Hig

h c

olo

r(4

5+

ppm

)

Market size is slightly getting bigger.FX is keeping absolutely No.1 position.

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%5%

10%15%20%25%30%35%40%45%50%

09 Q1

09 Q2

09 Q3

09 Q4

10 Q1

10 Q2

10 3Q

10 4Q

11 1Q

11 2Q

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000 (unit)

Mid

colo

r(3

1~

44

ppm

)

Market size maintainsCanon and Sindoh are increasing their share.FX absolute No.1 position but FX’s share will start to crack of decreasing.

14




3. Marketing Strategy

15




3-1. OPB Challenge for FY2011 (Continue from FH)

Challenge to Change OPB Market Introduction New full Color & Mono Product in FY11

Challenge to Change Overall Market Share No.1 by Color & Mon Growth

Challenge to be a real Champion Deliver right solutions with FX full capability

16



FUJI XEROX INTERNAL USE ONLY3-2. OPB FY2011LH Plan & Activity

Summary

①Maximize Volume and Value by newly launched products & value-added solutionCreate prospects through sales

promotion & acceleration for new products (Mono/Colour)

Accelerate solution approach with new solutions （ Green /Mobile ) to acquire value-added sales

　

②Accelerate Bulk Deal AcquisitionMaximize Bulk Deals through tight deal

management and support over region wide.

③Accelerate Global Account MarketingAcquire value-added sales through

global account marketing across IBG/Japan

OPB LH Re-plan Summary

LH Activity Plan

OPB Annuity Revenue Trend

2011FH 2011LH

(B JPY)

15

17

19

21

23

25

27

09 10 11 09 10 11

11G%

13G%

10G%

13G%

20.9

23.2

26.2

21.4

23.6

26.6

OPB ORS Trend(B JPY)

15

17

19

21

23

25

27

29

31

09 10 11 09 10 11

19.4

22.625.417G%12G%

22.2

25.1

30.013G%

20G%

PDR FY11 1H FY11 2H FY11

(JPY B) OL 元予算B/(W)

G% Replan 元予算B/(W)

G%

ORS 25.4 (0.2) 12% 30.0 1.1 20%

Non ORS 28.4 0.0 11% 29.2 0.4 13%

OPB Total 53.8 (0.3) 12% 59.2 1.4 16%

vs OrgB/(W)

vs OrgB/(W)

Kisyu-II

Kisyu-II

Kisyu-II

17




SustainabilityProductivity

Cost EfficiencyInnovation

3-3. Target market

• Biomass plastic parts (BP50 mark)

• Inedible Woody biomass plastic parts

• Fast recovery from sleep mode• Google Cloud Print• Printing from iPad/ iPhone• 1Path DADF

• Scan to Word/Excel• Server-less On-demand Print

• Smart WelcomEyes• Smart Energy Management

Technology

Kisyu-II appeals consistent environmental performance and user friendly.• No.1 Green spec & industry first eco friendly technology• Fuji Xerox unique feature & add-value customized solution

OpCos GroupedAdvanced Ascending Developed China

Very -LLarge

Mid

SOHO/SME

Customized solution

Size of businessKisyu target

Kisyu-II target

Server-less solution

Green solutionMobile & Cloud

Kisyu

18




3-4. Value propositioning -1

New Value Proposition Customer’s Advantage

Target Market

4 Pillar

Smart Energy Management Technology

• Unnecessary power consumption reduction

• Energy saving, Quick recovery and short downtime

• Less-noise paperless fax receipt and print etc.

All

Smart WelcomEyes

• Realize easy ecology, green operation • Unnecessary power consumption

reduction• Comfortable operability

All

Inedible Woody biomass plastic parts

• CSR promotion as using a product that is highly considered in food problem and global environment

Government Office, Mid to Large Business

EP-BB Green Report

• Arousal of environmental concerns to users

All

Single-Pass Duplex Color DADF

• Improvement of operability and efficiency

• Prevention of document damage

Education, Government Office

Discussion

19




3-4. Value propositioning -2

New Value Proposition Customer’s Advantage

Target Market

4 Pillar

Scan to Word/Excel

• Reuse of paper handouts• Reduce the time manually input

process• Can be edited Word or Excel® and

can be immediately edited on a computer.

All Especially SMB

Direct Faxing from Mac OS X

• Enhancement of paperless fax operation

Design Office

Google Cloud Print

• Can be performed from a MFD directly without going via a Windows PC.

All

Printing from iPad / iPhone

• Can easily print out, even when you’re outside

• Quickly print out materials stored in a mobile

AllEspecially sales department

Server-less On-demand Print

• Can be used the function with a small initial investment since not required a server.

• Work efficiency increases. Can be output from anywhere, any MDFs.

SMB

Discussion

20




4. Pricing Strategy

21




4-1. AAP Strategy

[Mid Color]Set up competitive price and boost FXA’s GI share

[High Color]Keep the profitability without losing any market share.

FX

A

Market share (31~44ppm)Price Positioning Market share (45+ppm)

0%

10%

20%

30%

40%

50%

60%

70%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%

10%

20%

30%

40%

50%

60%

70%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

350

550

750

950

1,150

1,350

1,550

30 35 40 45 50 55

(JPY_K)

(PPM)

DC-IV C5570

bh C452

iR-ADV 5045

bh C360

iR3580i

AP-IV C5570DC-IV C3370

AP-IV C3370

DC-IV C4470

AP-IV C5570

[Mid Color]Set up competitive price and boost FXS’s GI share


FX

S

500

600

700

800

900

1,000

1,100

1,200

30 35 40 45 50 55

DC-IV C3370DC-IV C4470

iR-ADV C5035iR-ADV C5045

(JPY_K)

(PPM)

Price Positioning

Around 38%Pricing GAP

0%

10%

20%

30%

40%

50%

60%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%

10%

20%

30%

40%

50%

60%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

Market share (31~44ppm) Market share (45+ppm)

iR-ADV C5051

DC-IV C5570

22




4-1. AAP Strategy

[Mid Color]Make a game plan to attack Sindoh D402.


FX

K

[Mid Color, High Color]

Keep the profitability without losing any market share.Watch carefully KM sales trend.

FX

HK

Market share (31~44ppm) Market share (45+ppm)

0%10%20%30%40%50%60%70%80%90%

100%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%10%20%30%40%50%60%70%80%90%

100%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

Price Positioning

380

430

480

530

580

630

680

30 35 40 45 50 55

D402

iR-ADV C5035

(JPY_K)

(PPM)

DC-IV C3370

DC-IV C4470

DC-IV C5570

iR-ADV C5045

400 450 500 550 600 650 700 750 800 850 900 950

1,000

30 35 40 45 50 55 60

(JPY_K)

(PPM)

Price Positioning Market share (31~44ppm) Market share (45+ppm)

0%

10%

20%

30%

40%

50%

60%

70%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

0%

10%

20%

30%

40%

50%

60%

70%

09Q1

09Q2

09Q3

09Q4

10Q1

10Q2

10Q3

10Q4

11Q1

11Q2

DC-IV C3370

DC-IV C4470

DC-IV C5570

iR-ADV C5035

iR-ADV C5045

iR-ADV C5051

MPC 3001

MPC 4501

MPC 5501A

23




4-2. TP Strategy Kisyu-II TP Guideline

Kisyu-II TPPredecessor (Kisyu) TP

AP-IV C5570 (50/55)DC-IV C5570 (50/55)AP-IV C4470 (45/45)DC-IV C4470 (45/45)AP-IV C3370 (35/35)DC-IV C3370 (35/35)

MaintainAP-IV C5575 (50/55)DC-IV C5575 (50/55)

5% reduction

AP-IV C4475 (45/45)

DC-IV C4475 (45/45)

AP-IV C3371 (30/30)DC-IV C3371 (30/30)AP-IV C2270 (25/25)DC-IV C2270 (25/25)

AP-IV C2275 (25/25)

5 – 12% reduction

AP-IV C3375 (35/35)

DC-IV C3375 (35/35)

8% reduction

AP-IV C3373 (30/30)DC-IV C3373 (30/30)

9% reduction

* The Kisyu-II TP already announced on29 Sep

This is a basic concept. Actual conditions varies by OpCo.

24




4-3. Pricing strategy Market Coverage

Predecessor (Kisyu) TP

Kisyu-II TPPrice

CLR PPM

R20

20 30 40 50

DC35

DC45DC3

0DC2

5

DC55

AP25 AP30AP35

AP45

AP55

Price

CLR PPM

R20

20 30 40 50

DC35

DC45DC3

0DC2

5

DC55

AP25 AP30AP35

AP45

AP55

R-II20

R-II25

K-IIDC30

K-IIDC35

K-IIDC45

K-IIDC5

5

K-IIAP25

K-IIAP30

K-IIAP35

K-IIAP45

K-IIAP55

25




5. Collaterals schedule

26




Collaterals Contents Oct Nov Dec Jan

Brochure

External web product information

Poster

Online Demo

E-Learning

Introduction movie

Flyer

5. Collaterals schedule (Plan)

End of Oct(ENG)

ENG1-

Dec

End of Nov(K/TC/SC/TH)

FXCL5-Dec

FXKFXTW

1-Jan

7-Dec(ENG/SC)

1-Jan(K/TC)

End of Nov (ENG)

Mid of Nov (ENG)

End of Nov (ENG)

Mid of Nov (ENG)

25th Nov (ENG)

27




Documents

© 2008 Fuji Xerox Co., Ltd. All rights reserved. Disclose to : Protect until : Handling : Author : Prepared on : ALL FX 20XX XX XX No Copy etc. Marketing