New Business of Printing Gil Hatch Center for Customer Innovation

Transcription

1 New Business of Printing Gil Hatch Center for Customer Innovation Webster, New York Thursday, June 9,

2 Disclosure During this meeting, Xerox executives may reference certain forward-looking statements that were previously made at the April 21, 2005 Xerox earnings call, the November 22, 2004 Xerox Investor Conference, and our recent webcasts. Such statements were made at those relevant times, and today's reference to any such statements is not intended to be, nor should any such reference today be construed as, an update or reaffirmation of such previously disclosed forward-looking statements. The Company assumes no obligation to update any such forward-looking statements as a result of new information or future events or developments. Such previous forward-looking statements reflected management s beliefs and expectations at the relevant times, and are subject to risks, uncertainties and assumptions. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from those described in those statements. You can find information concerning certain factors that could cause actual results to differ materially in the Company s 2005 First Quarter Form 10-Q filed with the SEC. 3

3 Ursula M. Burns President, Business Group Operations 4

4 Today s Discussion Xerox Strategy Review Business Highlights New Business of Printing Market Trends Meeting Value Chain Requirements 5

5 Xerox Strategic Planks - Office Services $102B $17B Our key strategic planks will enable us to capture the market opportunities! Eligible Offset $17B Production $8B Office $60B Lead the Color and Digital Revolution Source: Xerox Internal Analysis

6 Xerox Strategic Planks - Services Services Eligible Offset Our key strategic planks will enable us to capture the market opportunities! $17B Services-Led Large Enterprise Relationships $102B $17B Production $8B Office $60B Source: Xerox Internal Analysis

7 Xerox Strategic Planks New Business of Printing Services $102B $17B Our key strategic planks will enable us to capture the market opportunities! Eligible Offset Production Office $17B $8B $60B Lead the New Business of Printing Build on our leadership position Bring digital capabilities to capture offset opportunity Source: Xerox Internal Analysis

8 New Business Of Printing Strategy Be the leader in Digital Production Color Build share in Digital Production Monochrome Leverage the power of FreeFlow --- streamline customer print operations and create new business opportunities Create market opportunities and successful customers by complementing traditional businesses with Digital Printing We will lead with color and capture monochrome pages 9

9 Business Highlights Expansive Entry Production Color Portfolio (DocuColor 2045 to DocuColor 8000) Over 12,000 lifetime placements igen3 success continues Over 1B pages printed in customers with multiple installs New Monochrome Production Products Nuvera 4110 DocuTech Highlight Color 10

10 Quincy L. Allen President, Production Systems Group 11

11 New Business of Printing Major Trends Run Lengths are Getting Shorter! Turnaround Times are Getting Tighter! Over 48% of printers cite shorter run lengths. Source: NAPL Variable Content Creating Growth! Enabled 28% price premium. Source: InfoTrends / CAP Ventures - June 04 59% of printers cite turnaround pressure. Source: NAPL Digital Investments Important! Digital printing presses/systems was the #1 investment priority 58% - over the next 5 years. Source: NAPL Digital Printing Growing! Digital printing revenue to double to 14% from 2004 to 2007 as a % of printer s total revenue. Source: NAPL The NAPL State of the Industry Report, National Association for Printing Leadership, Paramus, N.J. 12

12 New Business of Printing Value Chain DEMAND GENERATORS DEMAND SPECIFIERS DEMAND FULFILLERS Marketing Managers HR Managers Book Publishers MIS Managers Business Owners Graphic Design Advertising Agencies Corporate Design Commercial Photography Graphic Communications Commercial Printers Service Bureaus Direct Mail Printers Book Printers Quick and Franchise Printers Enterprise Data Centers In-Plant/CRDs Right Business Model, Right Workflow, Right Technology 13

13 The Right Business Model DEMAND GENERATORS DEMAND SPECIFIERS DEMAND FULFILLERS Market Development Educating Demand Generators on value of digital and Xerox Educating and training Demand Specifiers on how to design for digital Business Development Tools and resources for printers to create new and profitable business opportunities The most comprehensive program in the industry Mike Pannagio Direct Mail Express Creating Profitable Customers 14

14 The Right Workflow Workflow is the management of a job from origination through generation of the invoice How print gets done Printing accounts for only 7%-22% of total job cost - InfoTrends/CAPV Workflows are unique and vary from customer to customer, and application to application Optimization / Productivity Offset / Digital 15

15 FreeFlow Meets Customer Requirements Lower costs Demand Fulfillers Requirements FreeFlow Enables Automatic correction of print file problems before printing Increase value add for customers New sources of revenue Through Customer convenience and turnaround time Variable data to create personalized communication Open Architecture, Partners, and Industry Standards Xerox is a clear leader in digital workflow for production printing FreeFlow helps customers reduce production costs and improve efficiency by streamlining workflow-- a key strategy that drives profitable business for printers. Source: InfoTrends/CAP Ventures - Jan 05 Creating Customer Value and Xerox Growth 16

16 The Right Technology Partners 17

17 Production Monochrome Offerings Speed / Productivity / Duty Cycle DocuTech New Nuvera Production System New Nuvera Copier Printer Better Buys for Business - Editor s Choice November 2004 DocuTech 6135 New DocuTech Highlight Color BERTL Best 100 to 120ppm High-Volume Production Device 2005 Electronic Publishing Hot Products 2004 December 2004 Better Buys for Business Editor s Choice November 2004 BERTL - Best Entry Level Print Shop Device 2004 Better Buys for Business Editor s Choice November 2004 New 4110 Industry s Best and Broadest Portfolio 18

18 Production Color Offerings Speed / Productivity / Duty Cycle New igen3 110 New DocuColor 7000 DocuColor 6060 GATF 2004 GATF InterTech Technology Award Canadian Marketing Association Innovation Award 2004 New New New DocuColor 8000 Epic Cti-635 in-line UV coater Electronic Publishing Hot Products 2004 BERTL - Best High Volume CRD/Commercial Production Color Device 2005 Horizon Color Works Booklet Maker BERTL - Best Mid Volume Production Color Device 2004 DocuColor 5252 Industry s Best and Broadest Portfolio 19

19 Summary The New Business of Printing market opportunity is large We will focus on the entire New Business of Printing value chain and aggressively move to capture the large offset opportunity The New Business of Printing requires The Right Business Model, The Right Workflow, and the Right Technology We have the industry s best and most comprehensive set of offerings Market and Business Development FreeFlow Production Products Color Mono The Right New Business of Printing Partner - Xerox 20

20 New Business of Printing Gil Hatch Center for Customer Innovation Webster, New York Thursday, June 9,