Management of Fuji Xerox

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1 Management of Fuji Xerox Fuji Xerox helps customers build knowledge environment and provides them with total solutions and services that lead to solving their managerial issues and improving their business processes. The following sections introduce the corporate philosophy of Fuji Xerox, our management structure, business operations, R&D initiatives and quality assurance to realize customer satisfaction, as well as our efforts to create a corporate culture where all employees can work energetically and bring about innovations. 19

2 Corporate Principles Our identity This section introduces our corporate principles that underlie all of Fuji Xerox s business activities. Our corporate vision In 1992, Fuji Xerox announced the Good Company Concept on which our management is based. Under this concept, a good company must be strong, kind and interesting. A strong company can deliver excellent products and services that satisfy customers and also reward its shareholders on an ongoing basis. A company must be kind by contributing to the local and global communities in terms of environmental conservation, ethics and corporate citizenship. Employees find their life and work interesting at an interesting company. Fuji Xerox aims to be a company with a good balance of all three attributes. Good Company Concept Contribution to customers, shareholders Kind Consideration of the environment Contribution to local and global communities Strong Interesting A workplace where employees can demonstrate their creativity Employees can have a sense of personal growth Mission Statement The Mission Statement represents what Fuji Xerox and our affiliates, and all of the employees who work with us, are aiming for. The idea to build an environment for the creation and effective utilization of knowledge expresses the business domain of Fuji Xerox. Our raison d être as a company is to contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures in that business domain as well as to achieve growth and fulfillment in both our professional and personal lives for employees who work to attain these goals. Mission Statement We will strive to; Build an environment for the creation and effective utilization of knowledge, Contribute to the advancement of the global community by continuously fostering mutual trust and enriching diverse cultures, and Achieve growth and fulfillment in both our professional and personal lives. Shared Values Our Shared Values express the 10 values that represent Fuji Xerox employees attitude and spirit as they engage in business as members of the company and society. All of these values symbolize the characteristics of our employees. With these values in mind, we are striving to realize the Mission Statement. Joy and Fulfillment Trust and Consideration Cultural Diversity Adventurous/ Pioneer Spirit Shared Values Team Spirit Customer Satisfaction Environmental Consciousness High Ethical Standards Scientific Thinking Professionalism 20

3 Management Structures and systems that support business activities Fuji Xerox is moving to strengthen corporate governance as a foundation for fulfilling our corporate responsibilities and achieving sustainable development. Corporate governance Since its establishment, Fuji Xerox has utilized an outside board member system. In 1999, we introduced a corporate officer system, and in 2002 we reduced the term of office for directors and corporate officers from two years to one so that we can respond more promptly to changes in the business environment. In addition, to ensure the independence of position and authority of corporate auditors, the president enters into an agreement on audits by corporate auditors with the corporate auditors. Management structure General Meeting of Shareholders Board of Directors Executive Nomination & Compensation Committee President Corporate Executive Committee Board of Corporate Auditors Accounts Auditors Internal Audit & Analysis Department Corporate ethics and compliance Since 1988, Fuji Xerox and our affiliates have engaged in initiatives to bolster compliance, on the basis of the idea that corporate ethical standards and compliance are the foundation for meeting the expectations of society. In order to ingrain awareness among employees of the need for compliance, and to incorporate compliance systems into daily operations, Fuji Xerox is not only establishing systems and structures, but also educating employees to foster this awareness. We are also moving to create a climate in the workplace that ensures compliance. Educational materials for compliance Information security Fuji Xerox, while striving to ensure appropriate communication and sharing of information within the organization as well as appropriate information disclosure, has also worked to bolster the governance of its own organization and affiliates and reduce the number of incidents related to information security. In 1999, we began to put in order regulations and guidelines related to information security, with the aim of maintaining the strict confidentiality of classified information, personal information, customer/supplier information and other types of information. Fuji Xerox has built up structures and systems to minimize damage in the case of information leakage and to prevent recurrences. In addition, we are working to improve the awareness of employees about information security through education and training. In June 2006, Fuji Xerox led the industry in issuing the Information Security Report 2005 based on a model developed by a study group sponsored by the Ministry of Economy, Trade and Industry of Japan. Easy-to-understand handbooks distributed within the company, which explain the rules for handling corporate and personal information 21

4 Business Outline Four core business areas where Fuji Xerox supports customers Fuji Xerox provides customers with high-quality products and services through four key business areas. Office products As the backbone of our business, Fuji Xerox globally develops and markets digital color/monochrome multifunction devices for offices. Major products include the ApeosPort series (digital multifunction devices that connect with mission-critical business systems), the DocuCentre series (digital multifunction devices that offer high performance and high quality) and the DocuWide series (wide-format digital multifunction devices for the engineering market). Fuji Xerox also offers various types of software, including DocuWorks, document handling software that enables users to handle scanned paper documents and electronic documents easily on a PC. Using such software, together with multifunction devices, we offer a variety of solutions and services for document management as well as mission-critical systems. DocuWorks 6.1 ApeosPort-II C7500 DocuCentre-II 4000 Office printing systems In April 2007, Fuji Xerox consolidated Fuji Xerox Printing Systems Co., Ltd. to strengthen our integrated manufacturing system covering all processes from technological development to product development, production and sales. Through this merger, we aim to enhance the competitiveness of our office printing systems business and expand the business further on a global scale. Based on the Xerography technology, Fuji Xerox is developing its color/monochrome laser printer business. The flagship color laser printers incorporate compactness, high performance and high image quality, and shipments to overseas have been strong. Approximately 70 percent of all color laser printers shipped during FY2006 was destined for overseas markets. In particular, shipments of color laser printers to the Asia-Pacific market, including China, nearly trebled over the past three years, and shipments to the European and North American markets, which include provision through original equipment manufacturing (OEM) to Xerox Corporation and other companies, almost doubled during the same period. In the Japanese market, Fuji Xerox is making proactive efforts to solve customers management issues by offering network-compatible color scanners as well as software that enables IC card authentication. DocuPrint C3250 DocuScan C3200 A DocuPrint C

5 Production services Fuji Xerox is developing our production services business globally, focusing primarily on on-demand printing systems and workflow support services for the digital printing market, as well as continuous-feed and cut-sheet printers to output data from missioncritical systems. Xerox igen3 110 Digital Production Press, a state-of-the-art publishing system that realizes high image quality comparable to that of offset printing as well as superior print productivity, meets the need for printing diversified, short-run jobs. It also opens up new possibilities for digital printing, including one-toone marketing that provides personalized information tailored to the individual preferences of customers. Meanwhile, in order to support our customers globally, Fuji Xerox has opened Executive Print Innovation Centers, or epicenters, in Tokyo, Sydney, Singapore and Shanghai to work with customers to create new business models and applications for digital printing. In June 2006, Fuji Xerox established the Color Center in its epicenter in Shinagawa, Tokyo, to maximize the utility value of documents and assist customers to create new businesses in the general realm of digital printing from upstream (planning, proofreading, etc.) to downstream (output, processing, etc.) processes. Xerox igen3 110 Digital Production Press epicenter Global services In April 2007, Fuji Xerox reorganized the Office Business Group into the Fuji Xerox Global based in Singapore with the aim of further reinforcing our system of providing customers with services centered on outsourcing of document-related operations in Japan as well as in other countries. In today s business activities, documents are positioned as an increasingly important managerial resource. In order to develop business more actively and swiftly, it is important to efficiently manage a series of documentation processes, including creation, storage, output and use of documents. In an effort to assist customers in solving these issues, Fuji Xerox provides comprehensive services in which we undertake overall document management operations starting with consulting, thereby assuring customers of genuine benefits including reduction in operational costs as well as higher productivity, so as to contribute to the growth of their businesses. Office Business Process Document Outsourcing and Communication Core services of Fuji Xerox Global 23