Broadest and Best Technology. Ursula Burns President, Business Group Operations

Transcription

1 Broadest and Best Technology Ursula Burns President, Business Group Operations

2 Today s Discussion Leadership Offerings Targeted Technology Broadest and Best Technology Color Monochrome Workflow

3 Leadership Offerings Defined by Customers Broadest and Best Technology Global Account Management & Service Support Market and Business Development Competitive Pricing Measured by Revenue 2003 Revenue $15.7B Share of Core Document Market 23% Integrated Solutions Source: Xerox Internal 2003 Core document market of $68B consists of US, Europe, Canada and DMO Production and Office markets

4 Relentless Focus on the Future to Drive Customer Value R&D investment remains significant 2003 R&D investment of $0.9 billion [$1.6 billion with Fuji Xerox] Research & Technology delivers customer value 88% directed at products and platforms 12% directed at new technology Scalable platforms leverage our R&D dollars Lower cost, more products, faster time to market Two-thirds of equipment sales from products launched over the last 2 years!

5 Innovation Creates Leading Integrated Offerings Xerox igen3 Solid Ink Fuji Xerox Office Color Nuvera TIPP Enterprise Workflow Controllers Intelligent Machines Hardware Services Enabling productivity Business development Customer Value Software Partnerships Open Architecture API/SDK Industry Standards Hardware & Software

6 The Color Opportunity is Huge! 15% 10% Color Pages % of Total Worldwide Pages 10 Approximately 3 trillion available monochrome and color pages! Color pages growing 20%+ CAGR % 3 5 0% Color pages 3% of total pages in % in 2008 Source: Xerox Internal 2003 Worldwide pages consists of US, Europe, Canada and DMO Production and Office pages

7 The Color Opportunity is Huge! 50% 40% 30% 20% 10% 0% Color Revenue % of $68B Worldwide Market Affordable color accelerates color adoption New offerings New jobs Color growing to 1 /3 of total market by 2008 Color multiple remains powerful Eligible offset expands the color market by 50% more Source: Xerox Internal 2003 Core document market of $68B consists of US, Europe, Canada and DMO Production and Office markets

8 Platforms Extend Color Portfolio igen3 Duty Cycle DC2045/2060 Phaser 7700 Phaser

9 Platforms Extend Color Portfolio igen3 DC8000 DC6060 Duty Cycle DC5252 DC2045/2060 DC3535 DC1632, DC2240 WCP C32, C40 WCP3545, C2535, C2125 M24 Phaser 7750 Phaser 7700 Phaser

10 Driving the New Business of Printing Digital complement to offset Best migration path to digital DocuColor Xerox igen3 Workflow Breadth of controllers FreeFlow Digital expertise & business development tools Profit Accelerator with the best technology

11 Xerox igen3 Capabilities High quality Image on image Consistent color Flexibility Substrate & finishing Lowest run cost $0.05 per page Reliability Built in customer diagnostics Remote command center Maximum productivity for complex jobs The igen3 opens doors to a host of new customers and markets. The press has been a huge part of our digital growth over the last two years John Place, President, Mercury Print Productions

12 Graphic Communications Customer Success Xerox Solution Direct Mail Express Customer Challenge Provide digital printing solution for direct marketing collaterals, ensuring offset image quality, large print capacity, and variable information processing speed Three igen3 presses devoted to variable color direct marketing pieces Creo Spire color server to maintain rated speeds of 6,000 images per hour, including rotation of 500 variable images Workflow software from XMPiE (existing DME vendor) to integrate design logic and data across multiple media Productivity Gains Same day turnaround 60% increase in response rates Annual revenue growth of 20% Lower warehousing costs

13 Xerox Leads in Production Color Pages 160K Color Average Monthly Page Volume (AMPV) DC CLC Konica DC HP DC 1 NexPress 3 DC HP Xerox s breadth of products bracket the competition More than 12,000 DocuColor 2000 series placements Estimated 41+ ppm 1 color page share of approximately 40% Xerox is the page share leader! Note: Color page defined as A4 (or 8.5 x 11) equivalent image U.S. AMPV Data Sources: 1 Xerox Internal, Consultant Study of U.S. Install Base, 3 InfoTrends / CAP Ventures Research, HP Website (HP K AMPV, HP K AMPV)

14 The Xerox igen3 Creates New Market Opportunities 450K Color Average Monthly Page Volume (AMPV) Strong customer acceptance 2004 average pages of 400K+ 20+ customers with multiple machines Page volume is building Over 1 billion pages will be printed in 2004 alone 30% of customers printing 6 million+ pages per machine per year 0 DC CLC Konica DC HP DC 1 NexPress 3 DC Xerox igen3 is clearly in a category by itself Note: Color page defined as A4 (or 8.5 x 11) equivalent image HP igen3 1 U.S. AMPV Data Sources: 1 Xerox Internal, Consultant Study of U.S. Install Base, 3 InfoTrends / CAP Ventures Research, HP Website (HP K AMPV, HP K AMPV)

15 Driving Color in the Office Affordable, easy to use, fast and reliable Color capable devices Competitive with B&W 40% of Xerox pages printed in color and growing! Expanding product line up and down Advantaged technology - Solid Ink with the best technology

16 Solid Ink Technology Simplifies user experience Sustainable consumables manufacturing cost advantage Architecture Scalable to higher speeds Extending to MFD in 2005

17 Advancing Technology to Improve Productivity Improved Functionality Process Improvement Automation Maximum Uptime Single pass duplex scan Controllers true multitasking Workflow integration Office and Production Services Intelligent machines FreeFlow SMARTsend Directive / remote diagnostics PhaserSMART, SMart Kit Flexibility Broad range of media and applications High value job assembly Benchmark run cost and image quality

18 Platforms Extend Monochrome Portfolio DocuTech Nuvera Duty Cycle 100 / 120 Production WCP, CC 65, 70, 90 65, 75, 90 ppm WCP, WC, CC 165, , 45, 55 ppm Pre 2001 Document Centre CC, DC 535, 545, 555, 2002 WCP, WC, CC 35, 45,

19 Platforms Extend Monochrome Portfolio UP! 500/ /1050 DocuPrint CF Highlight Color DocuTech Nuvera Duty Cycle 100 / 120 Production WCP, CC 65, 70, 90 65, 75, 90 ppm WCP, WC, CC 165, , 45, 55 ppm Pre 2001 Document Centre CC, DC 535, 545, 555, 2002 WCP, WC, CC 35, 45,

20 Platforms Extend Monochrome Portfolio DOWN! 500/ /1050 DocuPrint CF Highlight Color DocuTech Nuvera Duty Cycle 100 / 120 Production WCP, CC 65, 70, 90 65, 75, 90 ppm WCP, WC, CC 165, 175 Document Centre CC, DC 535, 545, 555, 35, 45, 55 ppm WCP, WC, CC 35, 45, 55 WC M123, M128 Phaser 5500 M20i WC M15i WCP412 PE120 PE16 Phaser 3130 Pre Phaser 3150

21 Platforms Extend Monochrome Portfolio IN THE SEAMS! 500/ /1050 DocuPrint CF Highlight Color DocuTech Nuvera 100 / 120 Production 100 / 120 Copier Printer Duty Cycle Xerox 2101 Xerox 1010 DocuColor 12 WCP, CC 65, 70, 90 65, 75, 90 ppm WCP, WC, CC 165, 175 Document Centre CC, DC 535, 545, 555, 35, 45, 55 ppm WCP, WC, CC 35, 45, 55 WC M123, M128 Phaser 5500 M20i WC M15i WCP412 PE120 PE16 Phaser 3130 Pre Phaser 3150

22 Technology Delivering Results U.S. / Europe Digital Light Production Market Share 35% Xerox 1010 Q Xerox 2101 Q Nuvera 100 / 120 Copier Printer Q % 30% 25% 20% 28% We will take share in digital light production! Ursula Burns, Xerox 2002 Investor Conference 15% 10% 11% 5% 3% 0% Source: Xerox Internal 2H02 1H03 2H03 1H04

23 Technology Delivering Results U.S. / Europe Digital Light Production Market Share 35% Xerox 1010 Q Xerox 2101 Q Nuvera 100 / 120 Copier Printer Q % Nuvera 100 / 120 Production Q % 25% 20% 15% 10% 11% 28% We will take share in production publishing & printing with Nuvera full production in 2005! Ursula Burns, Xerox 2004 Investor Conference 5% 3% 0% Source: Xerox Internal 2H02 1H03 2H03 1H04

24 Growing Share in the Office % Share U.S. Digital Monochrome MFD / Copier Market Share ppm Expanded product line & distribution channels Integration with Xerox Office Services 11 Expanding further! Source: Dataquest 8/13/ H 04

25 Broadest Set of Workflow Products and Services Open, modular, products from Xerox Over 100 partners Xerox Business Partner Web Services Makeready Process Manager Print Manager VI Software Suite DocuSP Office Fax Pro SMARTsend Office & Production Services Assessment Implementation System Integration Ongoing Support

26 Providing Customer Value With Integrated Solutions Production Solutions that drive the New Business of Printing Office Transforming business processes to increase productivity Book Printing Personalized Communications Promotional/Transactional Unified Offset and Digital Print on Demand Scanning/Routing Smarter Document Management Accounting Device & Supplies Management Security / Authentication Scalability Create new business opportunities Improve Operational Efficiency Lower Costs