bizhub C203/253/353 Strategy Form Follows Multifunction

Product Strategy – Mission/Pricing !

Exchange Meeting Jan 06 – Lars Moderow  C203 / C253 / C353 and C353P offer… ●Higher Performance and Productivity Faster hardware Better availability ●Higher Quality for print and scan Next generation toner New image processing ●Longer lifetimes and higher reliability New consumables New fusing unit ●Easier Setup Enhanced option installation Enhanced finisher Basics

Exchange Meeting Jan 06 – Lars Moderow Topics of MFP itself  The Second Machine of bizhub ‘Next Generation’ Line-up ! ●New bizhubOP [Emperon 5.1, OpenAPI 2.0] ●InfoLine Concept ●New 8,5” Color LCD  MFP for Monochrome and Color ! ●Low Mono CPP [30% lower than C252/C352] ●Low Color CPP [40% lower than C252/C352] ●Better Monochrome Ability to Equivalent bizhub 250/350 ●Long life CRU Parts [Toner & I/U] ●Mono Mode – even w/o Color Consumables ●Ultra Short Image Stabilization [Best In Class] 99.8% against theoretical performance!

Exchange Meeting Jan 06 – Lars Moderow Concept Points  Monochrome Replacement ●Low BW CPC, WUT, Finishing, BW Mode – even w/o Color Consumables  Usability ●Color LCD, New Box, Authentication Devices, InfoLine  Performance ●Emperon 5.1, 100% Duplex, Image Stabilisation, WUT + FCOT  Quality ●Laser Engine, Simitri-HD, Edge Enhancement Mode  Office ●PageScope Enterprise Suite, CRU, bizhub OP [incl. OpenAPI], XPS  Graphic Environment ●Media Handling, Floor Booklet Finishing, Fiery

Exchange Meeting Jan 06 – Lars Moderow Sales Strategy – Thames Sales Mission  Accelerate B/W Replacement ●Including Competitors with aggressive Mono CPP  Capture Higher Market Share for Segment 2+3 ! ●35% share in Segment 2+3 [ Color+CC]  Increase PV and Non-Hard Revenue ! ●To stabilize operation of ‘Core Business’  Maintain the Genre Top Position for Segment 2-4 Color !  Embrace / Activate Dealer Channel ! ●Focus New Dealer Recruitment ●Higher Internal KM’s Share Dual Line Dealers ●Complete Color MFP line-up from bizhub C203 to bizhub C650 ●Consistent User Operation and Functions throughout models ●Base for all upcoming Mono Devices [GangesM, LaPlataM] Learn Once – Operate All !

Exchange Meeting Jan 06 – Lars Moderow Sales Strategy - Pricing  Pricing ●bizhub C353 ●Reducing Price Premium to Mono machine [bizhub 350/360] ●More Aggressive CPP [different supplies] as for bizhub C253/203 ●Shift to ‘Upper Segment’ ●bizhub C253 ●Maintain the current HW pricing position of bizhub C252 ●Superb product features will be the key argument ! ●Lower running cost will be a differentiation points for the price [TCO] ●bizhub C203 ●Minimum required price difference between bizhub C253 and C203 ! ●Back-up for bizhub C200 [Spring 2008] ! ●Less Focus [less profit] !

Exchange Meeting Jan 06 – Lars Moderow Sales Strategy - Positioning  Positioning ●bizhub C353 ●Dual Approach ! ●Office: bizhub OP/ Emperon and Embedded Finisher ●Color: Fiery/Floor type Booklet FN ●Competitor: RICOH MP3500C, SHARP MX3501, Canon iRC3380i ●bizhub C253 ●Mainly Office ! ●Emperon / Embedded FN [Modular] / FK-502 ●Competitor: RICOH MP2500C, SHARP MX2300/2700, Canon iRC2880i ●bizhub C203 ●‘Entry Office Color’ ●Job Separator ●Competitor: SHARP MX1800 [New!]

Exchange Meeting Jan 06 – Lars Moderow PageScope Suite Feeder Touch Panel Emperon Box-Feature [HDD] Security Features bizhub 350 Finishing bizhub 350 vs bizhub 360 vs bizhub C353 Speed [Mono/Color] bizhub 350 bizhub 360 bizhubOP Yes Yes Yes [Std.] Yes [1.0] Yes Embedded Mono ¼ size 35/036/0 Yes Yes Yes [Opt.- 2.1] N/A Embedded + Floor Yes Std. Opt. OpenAPI Yes [1.0] N/A Mono ½ size bizhub 360 bizhub 353 Yes [2.0] 35/35 Yes Yes Yes [Std.- 5.1] Embedded + Floor Yes Opt. Yes [2.0] 8,5” Color 100% 108% 117% bizhub 353 Price

Exchange Meeting Jan 06 – Lars Moderow  Printer Concept ●One source - one cost marketing ! ●Color Capable ‘PREMIUM’ printer with superior image ! ●Real Printer [Large Graphic Display ! ●Same finishing functions as MFP ! ●Same CPP for MFP as well as printer ! ●Conventional Office market and Graphic Market [no Fiery] ! Product Concept C353P

Market Potential

Exchange Meeting Jan 06 – Lars Moderow Market Surroundings [Q1 2007]  Segment 2~4 A3 Color Tandem ●We're the top position as single vendor [Share 29.3%] ●Unit Share is increased by units from previous period… ●… but the gap to RICOH group, is getting bigger [Gap: units] ●Canon and Xerox has been loosing ground [units sales and share]

Exchange Meeting Jan 06 – Lars Moderow Western Europe Segment 2~4 73% 27% Units Year ! 57% 43%

Exchange Meeting Jan 06 – Lars Moderow Market Shares Maximise Share !

Exchange Meeting Jan 06 – Lars Moderow WE Market Development [All Segments] Monochrome Color Capable Color

Exchange Meeting Jan 06 – Lars Moderow Western Europe Segment 2 Canon SHARP RICOH Group Konica Minolta Xerox

Exchange Meeting Jan 06 – Lars Moderow Western Europe Segment 3 Canon SHARP RICOH Group Konica Minolta Xerox Toshiba

Exchange Meeting Jan 06 – Lars Moderow bizhub C353 bizhub C253 bizhub C203 FY07 FY08 Sales Plan [Two Years] Total

MIF Data

Exchange Meeting Jan 06 – Lars Moderow MIF Data 2006 [20~39ppm Mono] Units Own MIF !

Exchange Meeting Jan 06 – Lars Moderow MIF Data 2006 [20~39ppm Mono]

Exchange Meeting Jan 06 – Lars Moderow MIF Data 2006 [20~39ppm Color Capable] Units MIF !

Exchange Meeting Jan 06 – Lars Moderow MIF Data 2006 [13~35ppm Color] Units Own MIF… … but 80% too young !

Sales Result

Exchange Meeting Jan 06 – Lars Moderow 1 st Half 2007 Projection [Mono+Color + CC] Speed 20~35ppm By Model

Exchange Meeting Jan 06 – Lars Moderow 1 st Half 2007 Projection [Mono+Color + CC] Speed 20~35ppm By Brand

Competition

Exchange Meeting Jan 06 – Lars Moderow bizhub C353 vs Canon iR Color speed 35 vs. 30ppm + Mono Speed 35 vs 33ppm + Std. Paper Weight 256g/m² vs 163g/m² + Duplex Paper Weight 256g/m² vs 105g/m² + Manual Bypass Capacity 150pages vs 50 pages + Max Paper Weight 268g/m² vs 220g/m² + Windows XPS vs N/A + Std. PostScript vs. Optional + Std. Security Functions vs. Optional

Exchange Meeting Jan 06 – Lars Moderow bizhub C253 vs RICOH MP2500C + OPM Color 70 vs 35 + Std. Paper Weight 256g/m² vs 216g/m² + Duplex Paper Weight 256g/m² vs 169g/m² + Manual Bypass Capacity 150pages vs 100 pages + Max Paper Weight 268g/m² vs 253g/m² + Max Paper Size A3+ vs A3 only + Windows XPS vs N/A + Std. PostScript vs. Optional + Std. Security Functions vs. Optional

Exchange Meeting Jan 06 – Lars Moderow Perceptual Map Monochrome Environment Color EnvironmentC253 C451 C353 C203

Exchange Meeting Jan 06 – Lars Moderow Summary  C203 ●Key benefit: flexibility in office environment ●Key feature: Emperon ●Compete with 4-Cycle product  C253 ●Key benefit: productivity in office environment ●Key feature: Emperon and enhanced Security ●Compete with tandem color capable products  C353 ●Key benefit: productivity in office and color environment ●Key feature: Emperon and Fiery

Exchange Meeting Jan 06 – Lars Moderow Activities – Keywords !  Dealer Recruitment ●Create Good Demo Room Package ! ●Demonstration Video !  Direct Sales Education ●Demonstration Competition !  Increase Color PV ●USB Direct Printing [High Color Ratio/Coverage – Risk and Opportunity] ! ●iOption [HotSpots, Education Centre] ●Special Medias [Banner Printing]

Fight and Change !