Ricoh Mid-Term Management Strategy. March 12, 2010 Shiro Kondo President, CEO Ricoh Company, Ltd.

Transcription

1 Ricoh Mid-Term Management Strategy March 12, 2010 Shiro Kondo President, CEO Ricoh Company, Ltd.

2 Agenda 16th Mid-Term Plan and changes in business environment Current strategy deployment (review of FY2010/03 and going forward) Mid-term management targets 1

3 16th Mid-Term Plan and changes in business environment

4 Ricoh Group Long-Term Vision Our Business domain Faced with today s information-based society, we will provide innovative products and services that are built around Ricoh values [ RICOH values ] Harmonize with the environment Simplify your life & work Simplify knowledge creation Our Goal To be a leader in the 21st century (build a strong global RICOH brand) Customers Customers Employees Shareholders Society 1. Provide world class products and services 2. Develop rock-solid customer relationships 3. Promote an attractive and vibrant corporate culture 4. Achieve outstanding financial results 5. Be an admired corporate citizen Increasing Corporate Value 3

5 Basic Concept of the16th MTP In the 15th MTP we invested actively to harvest results from our new customer value creation and efficiency improvement targets The 16th MTP objectives include: i. Harvesting of results from the 15th MTP targets ii. Improvement of efficiency iii. Further growth Operating income 15th MTP 15th MTP target: bn FY2008/03 results: bn - Large-scale investment in efficiency improvement - Sales channel integration - InfoPrint Solution acquisition - Danka Europe acquisition - Acquisition of IBM printer division From 15th MTP implementation 16th MTP i. Ensure harvesting of results ii. Promote efficiency improvement iii. Further Growth 2006/ / / / / /03 FY 4

6 GDP Growth Forecast (Real) GDP growth forecast by IMF (International Monetary Fund) After the global financial crisis that occurred in September 2008, markets and customer value standards in major countries have changed drastically % % Global Financial Crisis 5 % 0 % New trends in customer value standards % % G7 United Kingdom ASEAN-5 United States Japan India China Germany France Italy Russia Canada Brazil Customer value Solution services Applications Middlew are Hardw are Customer value 5

7 16th MTP and Changes in Business Environment The 16th MTP objectives include: i. Harvesting of results from the 15th MTP targets ii. Improvement of efficiency iii. Further growth Changes in business environment Worldwide recession, appreciation of the yen, and falling stock prices triggered by the global financial crisis of September 2008 Operating income 15th MTP 15th MPT: bn FY2008/03 Results: 181,5 bn - Large-scale investment in in efficiency improvement - Sales channel integration - InfoPrint Solution acquisition - Danka Europe acquisition - Acquisition of of IBM printer division 15th MTP implementation 16th MTP 2006/ / / / / /03 Future terms necessary to achieve our original plans 2010 Ricoh Company, Ltd. (CRGP:Corporate Restructuring and Growth Project) March 12, 2010 Global financial crisis i. Ensure harvesting of results ii. Promote efficiency improvement iii. Further Growth Economic crisis in Europe New actions: IKON acquisition, CRGP implementation FY 6

8 Current strategy deployment (review of FY2010/03 and going forward)

9 Strategies Become No.1 in target business areas Intensify and accelerate environmental management Promote Ricoh Quality 4 Create new business lines 5 Build a strong global RICOH brand 9

10 Become No.1 in target business areas Accelerate innovations to achieve the No.1 position in Imaging and Solutions Ricoh resourcesoptimizationricoh resources Innovation of business structures Efficiency improvement Re-distribution Restructuring Developed countries Business personal Providing customer value GEL JET printers Low-end MFP/LP Office Solution Services Applications MFP+LP Office low-end Middleware Hardware Host printing/ production Office high-end Production printing Low Mid Expanding our business areas (Offering customer value) High Expanding our business areas (regions) Emerging countries 10

11 Become No.1 in target business areas Increasing market share in Office Business > Global development of Managed document services (MDS) > Global development of IT services GEL JET printers Low-end MFP/LP Business personal Office MFP+LP Office low-end 事Solution 業Services 領Applications 域のOffice high-end Host printing/ production Low Mid 事業領域の拡大Middleware OFFICE 拡大Hardware Expanding our business areas (Offering customer value) Production printing High 11

12 Become No.1 in target business areas OFFICE Global development of Managed document services Europe Approx. 200 sites provide services RICOH JAPAN Americas Approx. 2,000 sites provide services RICOH EUROPE RICOH GLOBAL HEADQUARTERS RICOH AMERICAS RICOH CHINA RICOH ASIA PACIFIC Introduce advanced MDS in other regions 12

13 Become No.1 in target business areas Global development of IT services IT Services OFFICE Japan: approx. 50,000 companies RICOH JAPAN RICOH EUROPE RICOH GLOBAL HEADQUARTERS RICOH AMERICAS RICOH CHINA RICOH ASIA PACIFIC Introduce advanced IT services in other regions 13

14 Become No.1 in target business areas OFFICE IT business alliance with IBM Customer bases and shared values of IBM and Ricoh will be mutually enhanced Customers Building IT infrastructure Offering IT services (including business process outsourcing) Printing business MDS Managed document Service Office IBM Alliance IKON Infotec InfoPrint > Combine the technologies and know-how of both companies, visualize the business challenges of their SME and large-scale customers, and provide solutions to solve their problems > Mutual development of DSMS Security and compliance Improved efficiency of document workflow (DSMS: Document Security and Management Service) > Realization of TCO and environmental impact reduction (TCO: total cost of ownership) PP RPS Provision of services that combine IBM s Tivoli software with Ricoh MFPs 14

15 Become No.1 in target business areas PP Expansion of Production Printing Business > Strive for consistent expansion in this new business area > Business infrastructures for target customers have been established > Accelerating synergies of InfoPrint, IKON and etc with Ricoh > Further strive to expand BPO and printing services (BPO: business process outsourcing) MFP+LP Office high-end Production printing Mid High GEL JET printers Low-end MFP/LP Business personal Office Office low-end Host printing/ production Low 15

16 Become No.1 in target business areas PP Business infrastructures for target customers have been established (Ex. Pro C900 sales infrastructure in North America and Europe) Customers Data Centers CRDs (Integrated copy centers) PFPs (print shops) Commercial Printers (commercial printing) Direct mail printers Replacing spot color or B&W high-speed printers - Batch printing of mixed originals that contain B&W and color documents - In-house printing Printing on thick or large cards Shifting from offset to digital printing -On-demand digital book printing - Variable data printing InfoPrint Production sales RICOH Office sales Production sales IKON Office sales Dealers Back Office (Ricoh Group) Marketing Showrooms Test centers Maintenance services 16

17 Become No.1 in target business areas PP Host to Post work flow management system provided by InfoPrint to large financial companies ADF : An automated management system controls a print workflow from job preparation (host) to delivering materials (post) *ADF(Automated Document Factory) Host Job preparation Workflow GUI Workflow DB Post Delivery of printed material WEB CRD Applications Data preparation Spool RIP Print Insertion <The improved workflow will feature the following advantages:> > Operations monitoring enables optimization > Automated selection of appropriate paper helps prevent print errors > Operational use of print data helps prevent insertion and other errors 17

18 Become No.1 in target business areas Business expansion in emerging markets Emerging market Expand business in emerging markets through increase in MIF >Establishment of a new factory in Thailand (2009) >Strengthening of sales companies in China, Asia-Pacific, Russia, and India >Expansion of low-end product line-up Intensify business activity in the China and Asia-Pacific markets >Establishment of PIC* in Shanghai (*PIC: Printing Innovation Center) >The current position of R&D sites in China will be strengthened GEL JET printers Low-end MFP/LP MFP+LP Office low-end Developed countries Emerging countries Office high-end Production printing Low Mid High Expanding our business areas (regions) 18

19 Become No.1 in target business areas Ricoh has established its production sites in 5 regions [ Ricoh global production sites ] Emerging market Ricoh UK Products Ltd. Shanghai Ricoh Digital Equipment Co., Ltd. Ricoh Asia Industry (Shenzhen), Ltd. Ricoh Electronics, Inc. in CA & GA UK France Ricoh Components Asia(Shenzhen) Co., Ltd. China Japan U.S. Thailand Ricoh Industrie France S.A.S Ricoh Manufacturing (Thailand), Ltd. 19

20 Strategies Become No.1 in target business areas Intensify and accelerate environmental management Promote Ricoh Quality 4 Create new business lines 5 Build a strong global RICOH brand 20

21 Intensify and accelerate environmental management Social changes and requirements Tolerance levels of geo-environmental impact Scenario 1 A world in which economic development is the top priority - in the current business scenario, natural resources are consumed continuously... Current Level Explicit social requirements - arising from efforts to reduce environmental impact Inevitable trends Catastrophic social disorder, population decline Ricoh will strive to reduce its environmental impact to one-eighth of its level in Scenario 2 A world in which the trend is toward systematic reduction of environmental impact (load units) - we will become a low environmental impact company A company can thrive only if it can meet the social requirements associated with reduced environmental impact 21

22 Intensify and accelerate environmental management Reducing environmental impact by All employees activities and Eco-technologies To reduce by 2050 the environmental impact of Ricoh Group business activity to 1/8 of its level in FY2000 Procurement Production (Ricoh & production companies) Logistic Sales & Use (by product) maintenance Electricity Paper Disposal & recycling Environmental impact classification (three tiers) Resource Conservation and recycling Energy Conservation and Prevention of Global Warming Pollution Prevention New input resources (worldwide) Life cycle CO2 (worldwide) Chemical substances (worldwide) /8 (-87.5%) % *Find and adopt alternative materials for natural resources before their supply dwindles /8 (-87.5%) % /8 (-87.5%) % Individual and divisional targets To reduce by 2050 the environmental impact (in load units) of Ricoh Group to1/8 of its level in FY

23 Intensify and accelerate environmental management Major strategies to achieve reduction of environmental impact (load units) Procurement Production (Ricoh & production companies) Logistic Sales & Use (by product) maintenance Electricity Paper Disposal & recycling Environmental impact classification (three tiers) Resource Conservation and recycling Propose plans for future low carbon office operations Energy Conservation and Prevention of Global Warming Pollution Prevention develop recycling businesses New input resources (worldwide) Life cycle CO2 (worldwide) Propose plans for future low carbon office operations Chemical substances (worldwide) Reduce electricity usage Individual and divisional targets Environmental marketing 23

24 Strategies Become No.1 in target business areas Intensify and accelerate environmental management Promote Ricoh Quality 4 Create new business lines 5 Build a strong global RICOH brand 24

25 Promote Ricoh Quality Ricoh Group provides customers with quality products that are consistently delighting Ranked highest in color copier customer satisfaction for both large and small/ medium-sized businesses (three consecutive years) Source: J. D. Power Asia Pacific, 2009 Japan Color Copier Customer Satisfaction Study (SM) Ranked highest in satisfying business customers with color printers in 2009 Source: J. D. Power Asia Pacific, 2009 Japan Color Printer Customer Satisfaction Study (SM) 25

26 Promote Ricoh Quality RICOH Quality Ricoh quality is a process that combines a feeling of customer satisfaction and reliability with products that continue to impress and services that provide value. Consistently delighting and inspiring our customers The RICOH Quality Statement We will always remain trustworthy and attractive for customers, consistently delighting and inspiring them by innovating while partnering with them to create valuable products and solutions. 26

27 Promote Ricoh Quality Ricoh Group will strive for RICOH Quality to become a company that can be trustworthy and attractive for customers, providing valuable products and solutions RICOH Quality RICOH Quality Consistently delighting and inspiring our customers Customer value 機能 部門ごとに掲げた品質目標 Positive response Expectation Customer expectation Planning R & D Production Sales Service No.1 for customer satisfaction Customers 27

28 Strategies Become No.1 in target business areas Intensify and accelerate environmental management Promote Ricoh Quality 4 Create new business lines 5 Build a strong global RICOH brand 28

29 Create New Business Lines Promote and develop new businesses through pipeline management Ricoh entered the projection systems business in New businesses will be created. (we are currently incubating possible innovations) Projection system Identifying business opportunities Creating new businesses Establishing new businesses Initiating new businesses Expansion and development Seeds of innovation 29

30 Create New Business Lines Continue to provide new products and services Networked products and services will generate new customer values Something New Network Appliances (Office & Personal) Projection systems Something New IT services Something New Applications MFP Office Printers quanp Personal Printers Digital cameras Something New Something New 30

31 Create New Business Lines Continue to provide new products and services Networked products and services will generate new customer values also in PP business Data Centers Something New Photo books Something New CRD Production quanp Personal Something New Digital cameras Print Shops Commercial Printers Label Printing Magazines Printers Something New 31

32 Strategies 1 2 Become No.1 in target business areas Intensify and accelerate environmental management Global Customers Promise Expectation 3 Promote Ricoh Quality Keep satisfying our customers 4 Create new business lines Customer loyalty 5 Build a strong global RICOH brand 32

33 Build a strong global RICOH brand Keep satisfying our customers by providing RICOH Values based on the global point of view Customer & Society Global Customers Promise Expectation RICOH Values Providing 3 values to customers Simplify your life & work Harmonize with the environment Support knowledge creation Keep satisfying our customers Customer loyalty Ricoh Brand 33

34 Build a strong global RICOH brand To become a higher performing company as an excellent global company > Continue to implement CRGP activities (CRGP: Corporate Restructuring & Growth Project) Resource optimization and reorganization Group-wide promotion of CRGP activities Reorganization and integration of sites During FY2010/03, cost reduction had priority (Phase 1) Expected total reduction 50bn FY2010/03 3Q term-end estimates Ricoh Group activities for further growth Expansion of PP business and solution business Establishment of Global Marketing Headquarters and a Global Strategy Planning Office From FY2011/3, we will start to harvest results from our current site integration schemes and create profits from new growth business areas (Phase 2) 34

35 Mid-term management targets

36 Mid-Term Management Targets Our targets for achievement within the next 5 years: Operating margin : 10% ROE : 12% Payout ratio : 30% New business ratio : 25% (by sales) 36

37 Strive for a global brand, Never give up until you win. Challenge!! 37

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