Agenda. I. 15th Mid-Term Plan Outline II. FY2006/3 Strategy Execution

Transcription

1 Ricoh s s Medium-Term Management Strategy March 2, 2006 Masamitsu Sakurai President and CEO Ricoh Company, Ltd. Agenda I. 15th Mid-Term Plan Outline II. FY2006/3 Strategy Execution - Structural Reform for Growth - Business Strategy Execution - FY2006/3 Financial Forecast 1

2 I. 15th Mid-Term Plan Outline 2 Mid-Term Management Strategy Outline Sales ( Bil) 2,000 1,500 1, Sales 1,440 Net Profit 41.9 '99 '00 '01 '02 '03 '04 '05 '06 '07(Target) 13th Plan 1, th Plan 1, th Plan 2, Net Profit ( Bil) 50.0 Business Structure Reform Main Business Strategies i. B to C Transition ii. High-speed Machine Sales Expansion iii. Solution Business Overseas Business Strengthening Growth Strategy Growth areas I. Printing - Color & Solution - High-end & Low-end II. Industry III. Emerging Market *B to C Transition: Black/white to Color transition Further Reinforcement of Technology Company-wide Structural Reform Further Differentiation by Technology Structural Reform for Profitability Strengthening 3

3 Growth Strategy Market Society Innovation Economy Competitors Ricoh's Core Competence Growth Strategy 4 Target Areas Existing Area - Office Color - Solutions -OEM Printing New Area - High-end Printing - Low-end Printing Growth Opportunities Emerging Market - China - Other areas Industry Business - Existing business - New business 5

4 Financial Target Sales(Billion Yen) OP Margin (%) 2,500 2,000 FY08/3 Target: Sales 2,300 Billion Yen OP margin over 10% ,500 1, (Billion Yen) (Result) (Result) (Target) FY02/3 FY05/3 FY08/3 Sales OP 1, , , Net Profit EPS 88.27yen yen yen ROA 6.4% 7.1% 11.0% Growth Strategy Structure Corporate Value Increasing Sales and Profit Expansion Creating Customer Value High-efficient Management Office Industry Others Solutions Technology MFP LP GJ Profit Engine Growth Core Selection & Concentration Ultra Low-cost Operation Efficient Capital Usage Differentiation Structural Reform Positive Investment for Growth Areas 7

5 II. FY2006/3 Strategy Execution 8 Toward New Growth Stage 14th Mid-term Plan Investment for Growth - Acceleration of Colorization - R&D Strengthening - Selection and Concentration -Structural Reform 15th Mid-term Plan Profit Contribution Precedent Investment Precedent Investment Growth Engines - MFP (profit engine) - LP (growth core) - GJ (growth core) - Industry (selection & concentration) FY03/3 FY04/3 FY05/3 FY06/3 FY07/3 FY08/3 Cash Creation Investment for Growth New Growth Stage 9

6 Precedent Investment for Growth (Structural Reform) Office Business Profitability Strengthening Strong Products - R&D site integration - Strengthening technology - Expand PxP toner production - Software development subs integration - Strengthening printing business Strong Sales - Japan: Sales company re-organization - U.S.: Business process optimization & IT system integration - Europe: Sales company(lanier) integration Strong Service - Service force re-organization (Japan & Overseas) 10 Strengthening Technology In-house development & production of of core components Not make, but but create system Establish & expand Ricoh Style Production In-house development of of production equipment Create customer value (extraordinary products) High quality&reliability Development efficiency Ultra low-cost product Customer driven SCM Production technology Black-box Competitive advantage by product differentiation 11

7 Business Strategy Execution (MFP) Accelerating B to C transition by competitive full line-up to or later Line-up Expansion Next Generation Color MFP Full Line-up High Middle Low Next Generation Launch Expand Color Area Competitive basic spec Appliance Environment Security Solution High speed & reliability Compact & Lower price 12 Business Strategy Execution (MFP) Value Area Expansion Analog PPC Digital Generation I 1987 Digital PPC 1991 Multi Function Multi Function Digital Generation II 1995 Networking 1998 Colorize Networking Environment 2001 Next Generation MFP Digital Generation III 2003 IT Function Intelligent MFP System Co-operation operation Business Process Innovation Ricoh Document Highway Concept GW Architecture 4F Document Solution Printing Solution 3F Network Stand Alone 1F 13

8 Business Strategy Execution (Printer) Centralized Distributed < General Office > - Competitive new product - MFP+P solution Desktop printer for distributed printing < Low-end > Small office Home office Business personal - Product mix of RPS & Ricoh - Solution Floor printer for site-centralized & distributed printing < High-end > Center printer for centralized printing Data Center CRD Print center - Strengthening line-up - Expanding & strengthening sales channel Copy Shop Service bureaus Direct mailers *RPS: Ricoh Printing Systems Co. High speed & reliability 14 Business Strategy Execution (High-end printer) Entering High volume market Market forecast by unit (thousands of units) *Forecast by Ricoh Market forecast by value (billons of yen) *Forecast by Ricoh , , ,083.0 Color After sales B/W Machine Customer needs Open // Downsizing // Color Mainframe printing market High Volume Market POD market Ricoh s s competence - Products variation - Solution proposal ability & sales force - Existing customer base of MFP&LP 15

9 Business Strategy Execution (Low-end printer) Targeting huge business low-end printing market Market forecast by unit (millions of units) *Forecast by Ricoh Business Home Market forecast by value (billions of $) Color 29.6 *Forecast by Ricoh B/W Business Home Creating & expanding market by strengthening products line-up and sales channel i. Colorization - GELJET printer evolution for business usage (higher speed / plain paper print quality / lower running cost) - Launch competitive low-end CLP (higher speed & compact size) ii. MFP - Multi-function LP & GJ for customer s variety of needs 16 Business Strategy Execution (Solution) Four-tiered solution structure Customer Business Structure Reform Service Support Supply 4F Document Solution 3F Printing Solution Network 2F 1F Stand Alone Technology Center Support < Software > Solution & System Proposal System co-operation (Develop & Customize) SDK < Hardware > GW Architecture Products (Digital Generation III) + Office Document Analysis 17

10 Technology for Growth Technology Area I. Higher specification II. Document solution technology Software /Solution Office Business Area II. Area I. Industry & Other Business Optical Unit Thermal Media PCB III. Low-end printing Hardware Area III. MFP LP GJ Area IV. Semiconductor Digital camera IV. High-end printing Low Middle High : Direction forward Optical media 18 FY2006/3 Results Forecast (Billions of Yen) FY05/3 FY06/3 Forecast FY08/3 Target Sales 1, , % 2,300.0 Operating profit % (% on Sales) 7.5% 8.0% % Net profit % (% on Sales) 4.6% 5.1% - 6.0% EPS (Yen) Forex Yen/1US$ Yen/1EURO

11 The Company bases the estimates above on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected. 21