Amur Opportunity

Topics of Amur The First Machine of bizhub ‘Next Generation’ ! Firmware leading – Donau will follow ! New OpenAPI 3.x [WEB Browser based] Base for all upcoming Color Products in Segment 2+ Monochrome Ability to Equivalent Mono MFP Toner bottle vs Toner Cartridge Drum- Development Unit vs Imaging Unit Outstanding Finishing Low Set-up Time Ultra Short Image Stabilization [Best In Class] 99% against theoretical performance!

ECO Friendly Environmental Is the Key Tec Value Lower Consumption in sleep mode ! Energy Star – Easy surpasses the new Energy Star standards ! Quiet Operation – Noise reduction ! Resource-friendly design makes active use of recycled materials ! New toner bottle – designed for easy recycling ! Simitri HD - lower fusing temperature !

CY 2009 Total Color Market Forecast 1~36 ppm 37+ ppm 83% Amur !

Amur Sales Strategy Capture Higher Market Share for Segment 2+3 ! “Aggressive Replacement of Monochrome” B2C ! “Consequent MIF Retention” C2C – MF22 and MF25 ! Maintain the Genre Top Position for Color ! significant increase of share in Segment 2 and 3 by FY2010 ! Seg 2+3 is the source of profit for Canon and RICOH Embrace / Activate Dealer Channel ! Attractive Seg 2+3 products will help your dual line dealers stay with OLV Strong line-up Donau + Amur

MF22 (MF25) Replacement

MIF Retention is key word Do you grasp the next replacement timing of your MIF? Yes, 80% we do. (A) Do you take adequate pre-sales action before replacement timing? Yes, 90% we do. (B) Did salesman make replacement proposal? Yes, 90% we did. (C) (10% MIF had already been replaced by competitor) Could you replace the MIF finally? Yes, 90% we could. (D) Action to grasp more about next replacement timing Standardization of sales activities Tool to monitoring sales activities Action to guard MIF lost Appropriate sales proposal A X B X C X D = 58,3% 58%. Even above assumptions, your MIF retention rate is only 58%. How to increase the retention ratio? Question Answer

MF22 (MF25) Retention Situation “Large” Color MIF of MF22/25 is existing Probably many of those machines have been placed with low GP in mono click! Large ratio of MF22 of them equipped with Fiery Controller ! Average color output ratio is still high, may be about 40%! Hypothesis Acceleration of this MIF will help increasing revenues [Fiery effect] ! Consequent MIF retention will help to stabilise color output ratio [non-hard] ! … and help on the monochrome profit as well ! Significant service cost down can be expected !

Sales Result bizhub C350 [April Dec 2005] Machine /Option Sales C IC-401 [16%] Feeder [90%] Duplex [89%] HDD [67%] Finisher [21%] Saddle Finisher [16%] 2004/052004/05

Western European Market

Total Market Forecast – By Category

Color + Monochrome MFP [without PC segment]

Monochrome Forecast – By Category

Color Forecast – By Category

Western European MIF

2008 Total Color MIF – 4 Cycle + Tandem Total Color MIF units

2008 Total Color MIF – 4 Cycle + Tandem Cycle Tandem

Cycle MIF Opportunity (<9ppm colour)

Cycle MIF Opportunity (>9ppm colour)

2008 Monochrome non-KM MIF Opportunity [20~39ppm] Total Mono MIF

Western European 2009 Q1 Data

Q Color 20~29ppm

Q Color 30~36ppm

Q Monochrome 20~39ppm

Wrap-Up

Summary Road to Color Genre Top Huge Color MIF opportunity More than 45% coming from 20~29ppm arena! Canon / RICOH been forerunner in the mono replacement field with 4-Cycle units in the field – of them being sold in CY2004/2005 ! Olivetti generated large MIF in color tandem arena ! Find out your MF22 placements for replacement No new product introduction in 2009 other than Konica Minolta… … but Canon new AiR to come soon! Gain momentum with Donau / Amur series and knock out competitors ! SUCCESS Factor: Target for external MIF (mono and CC) and increase your Retention Ratio!

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