1. KONICA MINOLTA Partner Program
New and Enhanced
KONICA MINOLTA Partner Program
KONICA MINOLTA Confidential
July 2005

2. KONICA MINOLTA Confidential
Agenda
Partner Reseller Program Enhancements
Platinum Program
Review of Overall Reseller Program
Submit your questions online during the webinar using this button at the top of your screen
KONICA MINOLTA Confidential

3. Partner Reseller Program Enhancements

4. KONICA MINOLTA Confidential
Key Enhancements
Increase Profits from Printer Sales
Rebates increased at every printer volume milestone
Make it Easier to Do Business
Eliminated need to claim rebates
Doubled time period to qualify for rebates to smooth out volume spikes
Standardized rebate calculation with Estimated Street price
Monthly attainment report will be issued from KMPS for those who achieve $5k+ in printer sales
Reward and Recognize the Highest Levels of Performance
Platinum Program enhanced with full suite of benefits
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KONICA MINOLTA Confidential

5. Increased Printer Rebates at Every Level
New Incentive scheme
Half year Hardware
Incentive on
Incentive on
Purchases
Hardware
Consumables
Buy 40k or more
10% 4%
Buy 20k or more 8% 3%
Buy 10k or more 6% 2%
Current Incentive scheme
Quarterly Hardware
Quarterly Consumables
Purchases
Purchases
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Buy 20k or more 8%
Buy 20k or more 4%
Buy 10k or more 6%
Buy 10k or more 3%
Buy less than $10k 3%
Buy less than $10k 2%
* Incentive on Consumables will be driven by Printer hardware purchases
** Purchase of PP1350W, 2300W, 2400W are applied towards purchase
goal, but are not eligible for the incentive
*** Resellers who claimed Q1 ’05 rebate under current program will have their Q1 rebate subtracted from their 1st Half rebate check
KONICA MINOLTA Confidential

6. KONICA MINOLTA Confidential
Easier to Do Business
Rebate amounts will be calculated and checks cut automatically
No need to claim rebates
Measurement will be based on 6 month purchases: Apr-Sep & Oct-Mar
Lengthen qualification period to qualify for rebates to smooth out volume spikes
Purchase amount will be based on Purchased Qty x Street price
Standardized formula for all purchases through authorized sources
Monthly attainment reports distributed for $5K+ resellers
Enables easy tracking of progress towards goals
All other elements of Partner Program remain the same
Spiff, Try & Buy, Demo,
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KONICA MINOLTA Confidential

7. Rebate Calculation Example
One time transition to new program in 1H 05 Q1 Q2
Apr 1
Jul 1
Sep 30
Q1 Printer Hardware Purchases - $25K
Q2 Printer Hardware Purchases - $25K
Rebate Claimed Q1 05 (Old) - $2K
Rebate Calculated 1H 05 (New) - $5K
- Rebate Claimed Q1 05 (Old) $2K
Rebate Check Issued 1H $3K
KONICA MINOLTA Confidential

8. Platinum Reseller Program
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9. Platinum Program Qualification
Program will be offered based upon approved business plan
Potential and Commitment to grow business with KMPS
Value added Reseller
No focus on On-line sales
Preferably have store front with Demo space
Preferably have sales people on the street
$40k Hardware purchase required in previous Half year
Reseller must continue to purchase a minimum of $40K in Hardware every half year to maintain Platinum status
Addendum needs to be Signed by Reseller and KMPS VP Marketing
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KONICA MINOLTA Confidential

10. Platinum Program Benefit
Assigned Account Executive
Platinum Discount (No Back end rebate but up front discount)
Direct Platinum Discount
Platinum Discount through Authorized Distributor
Back end incentive on Growth target
$50k HW purchase over Half year period: 2% of HW purchase
$100k HW purchase over Half year period: 5% of HW purchase
One Custom Flyer available every quarter (upon request)
Direct mail program initiated by KMPS for those who have demo space with KMPS demo unit
MDF for executing joint marketing campaign
Plaque & Logo recognizing status
Status identified on “Where to buy” listing
KONICA MINOLTA Confidential

11. Konica Minolta Partner Reseller Program
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12. KONICA MINOLTA Confidential
Program Objective
“Our goal is to allow our partners to make more money selling KONICA MINOLTA printers than other brands, while offering unparalleled support in sales, service, and marketing.”
KONICA MINOLTA Confidential

13. KONICA MINOLTA Confidential
Program Highlights
PROFIT
■ Industry-leading, upfront margins
Yes
■ Aggressive back-end incentives
Up to 10%
■ SPIFF rewards
Up to $75
■ Essential Rewards debit card
RESOURCES
■ Award-winning partner web site
■ FREE product literature & samples
■ Online ‘Where to Buy’ listing
■ Dedicated field & inside sales reps
■ Direct technical support line
■ World-class communication
PROGRAMS
■ Leasing program
■ Demonstration equipment program
■ Try & Buy 30-day product evaluation
PRODUCTS
■ Award-winning, profit-yielding products
KONICA MINOLTA Confidential

14. KONICA MINOLTA Confidential
Program Foundation
The KONICA MINOLTA Partner Program received VARBusiness magazine’s 5-Star award for the breadth & depth it provides to our partners – March 2005
KONICA MINOLTA Confidential

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PROFIT
“With the KONICA MINOLTA Partner Program you’ll immediately begin tallying rewards with our volume incentives, product SPIFFs, and competitive margins.”
KONICA MINOLTA Confidential

16. Get a SPIFF on the sales of any Extended Warranty Plan on
SPIFFs Rewards
magicolor 5450
magicolor 5440
$50
magicolor 5430
$25
PagePro 9100
$25
$60
magicolor 7300
$75
magicolor 3300
$50
$20
Get a SPIFF on the sales of any Extended Warranty Plan on
• magicolor • magicolor • PagePro 9100
KONICA MINOLTA Confidential
SPIFFs valid 7/1 – 9/30/05 and payable in U.S. dollars

17. Essential Rewards Card
Fastest, most flexible way to receive and spend rewards
SPIFFs paid on a convenient debit card
Partners claim & track SPIFFs conveniently online — no paperwork, no hassles!
“The KONICA MINOLTA Essential Rewards card — the convenient, online way to claim and receive SPIFF rewards.”
KONICA MINOLTA Confidential

18. Profit Potential: an example
Gross Profit before Incentives
magicolor 7300
15% profit
Mfg. Est. Street: $3,199.00
Reseller cost (direct): $2,719.15
Upfront profit = $479.85
Gross Profit after Incentives
27.3% profit
Upfront profit $479.85
10% backend incentive $319.90
SPIFF reward $75.00
Total profit = $874.75
KONICA MINOLTA Confidential
Sell supplies, accessories, & service options to build your profit even more!

19. KONICA MINOLTA Confidential
RESOURCES
“All the tools you need the to make the sale, make more money, and satisfy your customer are at your fingertips.”
KONICA MINOLTA Confidential

20. Convenient Partner Portal
Only registered partners have access to the Partner portal. It’s the place to get detailed information, order literature, & access tools to close the sale.
KONICA MINOLTA Confidential

21. Marketing Materials Online
Easy to navigate, the site has program information, product data, pricing, & so much more!
KONICA MINOLTA Confidential

22. Order Literature Online
Partners can order spec sheets & print samples —absolutely FREE!
KONICA MINOLTA Confidential

23. Online ‘Where to Buy’ Listing
Registered Partners are listed on the KONICA MINOLTA ‘Where to Buy’ locator
KONICA MINOLTA Confidential

24. KONICA MINOLTA Confidential
Partner Product Pages
Feature KONICA MINOLTA products on your Web with Product Pages that include:
• up-to-date product info
• data sheets for download
• manufacturer list of supplies
• no links back to KONICA MINOLTA site
KONICA MINOLTA Confidential

25. Dedicated Field & Inside Representation
Dedicated Field Team:
Joint customer visits available
Support major sales opportunities
System’s Engineer services (including on-site training) available
Help you satisfy customers while reaching maximum profit potential
Inside Sales Rep:
Your primary KONICA MINOLTA point of contact
Answer your questions about products, programs, and resources
Provide order status and follow-up
KONICA MINOLTA Confidential

26. Special Partner Technical Support
Partners receive special handling in telephone technical support
Dedicated line to “Level 3” specialists 7:00AM until 7:00PM (Central)
Web, support available 24/7
KONICA MINOLTA Confidential

27. Informative Communication
Registered Partners are informed of new programs, promotions, and events via:
• face-to-face field representation
• inside rep telephone communication
• online Webinars
• mail correspondence
• corporate-generated
KONICA MINOLTA Confidential

28. KONICA MINOLTA Confidential
Demand Generation
Consumers are driven to buy through:
• s featuring special promotions & incentives
• national advertising in publications such as PC World, PC Magazine, & Inc. Magazine
• Customizable flyers for consumer mailings
• ‘Where to Buy’ web listing
KONICA MINOLTA Confidential

29. Broad Purchasing Channels
Partners can buy direct from KONICA MINOLTA or use any of these top-ranked distribution partners
United States: All Products
Canada: All Products
United States: Consumables
Canada: Consumables
KONICA MINOLTA Confidential

30. KONICA MINOLTA Confidential
PROGRAMS
“KONICA MINOLTA offers innovative sales programs for special situations.”
KONICA MINOLTA Confidential

31. KONICA MINOLTA Confidential
Leasing Program
Leasing is an easy way for your customers to enjoy the benefits of new systems without expensing capital budgets
Leasing provides your customers with a manageable, low monthly payment
KONICA MINOLTA’s partnership with CITICAPITAL provides you with leasing programs that fit your customers’ needs
24 to 60 month lease terms available
Printers, supplies, accessories, and service plans can be included in the lease
Terms & Conditions
KONICA MINOLTA Confidential

32. Demonstration Equipment Program
Receive discounted pricing on select printers when they’re used for demonstration purposes
Demonstrate KONICA MINOLTA printers on your showroom floor
Demo printers offered at a special, discounted price
Ask your field or inside sales representative for details
Terms & Conditions
KONICA MINOLTA Confidential

33. Try-it & Buy-it Program
Offers your customers a 30-day test before final decision is made to purchase
KONICA MINOLTA ships unit to VAR’s location or drop ships to customer site
VAR issues P.O. number and installs printer
Customer has 30 days to test drive the printer
Try It & Buy It program available to all registered VAR Partners
magicolor 5430 DL, magicolor 5440 DL, magicolor 5450, magicolor 3300 EN/DN, magicolor 7300 EN, and PagePro 9100 N printers qualify
Terms & Conditions
“Once a KONICA MINOLTA printer is placed, it stays!.”
KONICA MINOLTA Confidential

34. KONICA MINOLTA Confidential
Test Drive Program
Let us print your customers’ files
Submit your customers’ custom print files for output on any KONICA MINOLTA laser printer
Prove that KONICA MINOLTA offers the best solution
Terms & Conditions
KONICA MINOLTA Confidential

35. Award-Winning Color Printers
[CLICK ONCE]
The unique four-beam laser unit focuses on a system of prisms and mirrors that separate the beam into four distinct beams – one for each of the imaging drums (cyan, magenta, yellow, and black).
[CLICK AGAIN]
The prisms and mirrors direct the individual beams to the area of the two intermediate transfer drums. On one drum, the cyan and magenta planes are combined into one image. On the other, the yellow and black planes.
Finally the planes from the two intermediate drums combine on the single transfer drum. Here, on the surface of this transfer drum, the complete image is assembled and contacts the paper in a single pass.
KONICA MINOLTA Confidential

36. KONICA MINOLTA’s 5-Star Programü
Make more money right away with high upfront margins, back-end incentives, and SPIFFs
Use the vast number of available resources to learn about and sell KONICA MINOLTA products
Count on our programs, like Test Drive and Try It & Buy It, to prove the KONICA MINOLTA solution
Sell the award-winning laser printers that are value-leaders in their class ü ü ü
Register on-line at printer.konicaminolta.com/reseller
KONICA MINOLTA Confidential

37. KONICA MINOLTA Confidential
Thank You
KONICA MINOLTA Confidential

38. How to Use Konica Minolta Total Cost of Ownership Tools
Thank you for your attention!
SAVE THE DATE
Next webinar: August 16
How to Use Konica Minolta Total Cost of Ownership Tools