Ricoh s s Medium-Term Management Strategy

Transcription

1 Ricoh s s Medium-Term Management Strategy March 4, 2003 Masamitsu Sakurai President and COO Ricoh Company, Ltd. AGENDA I. Outline of Medium-Term Management Strategy II. Main Strategies 1 Main Business Strategy Progress (Imaging Business) i. B to C Transition ii. High-Speed Machine Sales Expansion iii. Business Promotion 2 Regional Strategies i. The Americas ii. Europe iii. China iv. Domestic/Overseas Sales Ratio in Imaging Business 3 Other Businesses Strategy 4 Technology Strategy III. Forecast of Operating Results B to C Transition: Black/white to transition 1 1

2 I. Outline of Medium-Term Management Strategy '96 '97 '98 '99 '00 '01 '02 '03 '04 12th Plan 13th Plan 14th Plan CS Management Reinforcement of Overseas Sales Reinforcement of MFP Lineup *B to C Transition: Black/white to transition *MFP: Multifunction Printer *CS: Customer Satisfaction Business Structure Reform Main Business Strategies i. B to C Transition ii. High-speed Machine Sales Expansion iii. Solution Business Overseas Business Strengthening Regional Strategies i. The Americas ii. Europe iii.china Further Reinforcement of Technology Contribute to productivity improvement and knowledge creation for individuals working anytime, anywhere Technology Strategy i.. Growth and reinforcement of core business ii. Cultivation of new business iii. Basic research Company-wide Structural Reform 2 II. Main Strategies (Enhance( Value and Increase Customers) <<<Provide customers with new values (Customer enclosure, higher added value ) 4F Document 3F Printing 2F Network Connective Equipment 1F Standalone Equipment Supply, service, and support Income sources Maintenance support for networks and equipment Useware Document Printing B to C Transition High-speed Machine Sales Expansion Enhancing Customer Base *Major Accounts *New Sales Channels *Respond to New Requirements Sales through Internet 5 regional Global Marketing Main Strategies B to C Transition: Black/white to transition Existing businesses Expansion of customers >>> Selecting and focusing on promising businesses, and efficient management resource allocation New businesses Further strengthening business structure 3 2

3 II-1. Main Business Strategy Progress (Imaging Business) Goal Main Strategies Optimize TDV B to C Transition Customer Needs Color High Speed One-Stop Total High-speed Machine Sales Expansion Printing Sales Strategies Product Strategies Technology Strategies Structural Reform Document TDV: Total Document Volume B to C Transition: Black/white to transition Global 5 Region Marketing 4 1-i. B to C Transition (1) By offering a full lineup of machines which can replace black and white offerings, enhance market share Market Size Create new markets Color specialized machine strategy Color machines B to C Transition Strategy Cost Performance Strongest engine Utilizing high market coverage <Target> No.1 market share in machines Black and White Machines ~ Past Present Future B to C Transition: Black/white to transition 5 3

4 1-i. B to C Transition (2) Enhancement and strengthening of machine lineup Prioritized Domain B to C Transition subject Previous target markets and launched machines Current/future target markets and launching machines Large/Medium-size customer Medium/Small-size customer Large/Medium-size customer Medium/Small-size customer Centralized at floors/ centers Divisional sharing High-speech monochrome MFP Centralized at floors/ centers Divisional sharing High-speed MFP Group sharing High-speed LP Mid-speed PPC/MFP Group sharing High-speed LP High-speed PPC/MFP Small groups sharing Business Personal Low-speed LP Monochrome LP Low-speed PPC/MFP Monochrome PPC/MFP Small groups sharing Business Personal Mid-speed LP Low-speed LP Monochrome LP Mid-speed PPC/MFP Monochrome PPC/MFP PPC: Plain Paper Copier, MFP: Multifunction Printer, LP: Laser Printer 6 1-ii. High-Speed Machine Sales Expansion Expanding market share and enhancing TDV by providing competitive machines High- Speed Copying speed Copier Market share by product segment Past Present Future Mid- Speed Cost Performance Color <Target> <Target> No.1 No.1 market share share in in high-speed machine Lowspeed TDV: Total Document Volume Market Share (Worldwide) 7 4

5 1-iii. Business Promotion (1) Prioritized Domain Large Corporations Government and Municipal Offices/Schools Vertical Markets Business- Key Factors for Success 4. Reliable Support and Service 3. Proposal/Arrangement Ability 2. Meeting Open & Modular 1. Products-Basic Functions, Reliability 8 1-iii. Business Promotion (2) Increase TDV by MFP+P MFP + Color LP Maintaining/ enhancing CV *Multifunctional High efficiency High productivity * Printing TCO analysis TCO reduction *Colorization Colorization * Document Operational workflow improvement Obtain PV Obtain PV Copy Volume (CV) Print Volume (PV) MFP+P: Multifunction Printer+Printer TDV: Total Document Volume LP: Laser Printer TCO: Total Cost of Ownership 9 5

6 1-iii. Business Promotion (3) Document Volume Print Volume (PV) Output Volume from MFP (PV+CV) By strengthening document solutions through MFP+P, MFP+P, increase TDV Meeting the needs of TCO reduction through printing solutions Copy Volume (CV) Present MFP+P: Multifunction Printer+Printer TDV: Total Document Volume TCO: Total Cost of Ownership 10 1-iii. Business Promotion (4) Providing to Large Corporations Customer Needs Proposal for higher operational productivity TCO Reduction Submitting machine operation report Responding to electronic commerce Necessary abilities and systems Ability to appropriate proposal and system designing by grasping latent customer needs Worldwide Machine installation Worldwide uniform service Worldwide service & support structure TCO: Total Cost of Ownership 11 6

7 1-iii. Business Promotion (5) GMA(Global Major Account) Business Talk/Signing Contracts Number of items Business Talk Signing Contracts 00/1H 00/2H 01/1H 01/2H 02/1H 12 2-i. Regional Strategies--The Americas Increase TDV by Securing High-Volume Users Further enhancement of business with large corporations *Strengthening direct sales/service capabilities *Strengthening solutions sales capabilities Obtain No.1 Copier Market Share Obtain Top Class Color Laser Printer Market Share TDV: Total Document Volume 13 7

8 2-ii. Regional Strategies--Europe Obtain TDV by Increasing MIF Coverage Make full use of entire Ricoh group(ricoh, NRG, Lanier) advantages Further enhancement of business with large corporations Maintain and further enhance No.1 Copier Market Share Obtain Top Class Color Laser Printer Market Share TDV: Total Document Volume MIF: Machine in the Field(Number of machines installed in the market) 14 2-iii. Regional Strategies--China Utilizing 30 years of experiences, Strategic Enhancement of China Business Sales: Maintain and further enhance No.1 market share Strengthening indirect sales capabilities Strengthening direct sales/service capabilities Further enhancement of business with large corporations Production: Further strengthening cost competitiveness as an intensive production base Strengthening of parts production technology Development: Full-scale utilization as a technology development base Strengthening software development capabilities Strengthening for modifying design capabilities 15 8

9 2-iv. Domestic/Overseas Sales Ratio in Imaging Business 70% of Imaging and Network I/O Systems total sales will come from overseas business Net Sales China/Others Europe The Americas Japan Overseas Domestic I/O: Input/Output Past Present Future 16 3-i. Other Businesses Strategy--Semiconductors More Competitive in Imaging Businesses * LSI for Imaging equipment Conducting Business Aiming at Achieving Top Market Share in Specific Segments * Analog chip (in-house production) Mobile equipment battery IC Analog one-chip LSI for mobile communications equipment Realizing stable growth by maintaining top-market-share products and enhancing target markets and product variation Aiming at No.1 market shares in the three kinds of cellular phone standards * Digital chip (fabless) PC interface LSI Enhance business by global business promotion LSI for optical disc drives Shifting the business from CD- to DVD-related products 17 9

10 3-ii. Other Businesses Strategy--Optical Discs Conducting Business Aiming at Establishing De Facto Standard Finishing Products (Drives) * Developing more appliance-like ease products by upgrading the standards in their higher speed and higher capacity of DVD+RW/ +R * Flexible business operations by having optimal production alliances Key parts for drives Maintaining top market share by providing DVD+RW/ +R key parts to set makers, and promoting cost reduction by volume effect in combining finishing products Media Strengthening cost competitiveness by optimal production alliances Technology Strategy Strongest Engine Platform strategy, and promotion of platform and module plan Developing the strongest module (high durability, high reliability, super precision) Optical Memory Pursuit of portability and high speed in DVD systems Office Systems Propose next-generation office by fusing image information and data Environmental Technology Revolutionary energy-saving technology Recycling technology aiming at resource-recirculating society Photonics High data processing speed inside the machines Research and development of optical control devices 19 10

11 III. Forecast of Operating Results Net Sales Pretax Profit Domestic Overseas FY01 ( billion) FY04 Actual % of net sales Growth ratio Target % of net sales , % 46% 6.8% FY02 Forecast % of net sales , ,000 1,000 2,000 Operating Income % 6.4% Net Income % 18.8% 90 50% 50% % 9.0% % 49% 7.2% -0.8% 9.5% 8.0% % 4.5% 125.1/$ 121.7/$ 120/$ 110.6/EURO 120.4/EURO 110/EURO ROE 10.4% 12.0% ROA 6.4% 8.5% Equity ratio 34.5% 40.0% Free cash flow billion( 99-01) 150 billion( 02-04) *ROE: Net income on shareholders investment, ROA: Pretax profit on total assets 3.9% 9.8% 20 * 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

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