Monochrome Multifunction Market
and profit from hitting the mark!
Corporate Vision and Strategy
Streamline and digitize document-intensive business processes
Manage our clients’ key business processes
Sell value-added services into existing Xerox accounts
Establish a services centric business model
Production: Drive the New Business of Printing
Defend and grow mono-chrome leadership
Boldly lead in color printing
Gain share from offset
Unleash the power of digital workflow
Services: Deliver process innovation and managed services
Office: Lead the color & multifunction evolution
CoreCompetencies
Expand share in fastest growing segments.
Restore profitability by restructuring the value chain.
Lead migration to color in the office.
Technology
Brand Strength
Document Expertise
Global Direct Sales & Services
Mono MFP Market Overview
Market growth driven by MFP's• MFP market will grow from
59% to 68%; from ’03 - ’07
66% of market decisions are 11 to 30 ppm• 721K units expected to ship
in 2004; 60K per month
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2003 2004 2005 2006 2007
K U
nit
s
Seg 1 SF Seg 1 MFP Seg 2 SF Seg 2 MFP
Seg 3 SF Seg 3 MFP Seg 4 SF Seg 4 MFP
Seg 5 SF Seg 5 MFP
US Digital Market Size ‘03-’07 - K Units
MFP 9% CAGR
Segment 1 & 2
Xerox 8% 6% 6% 11%
Canon 37 31 25 21
Ricoh 10 9 28 25
HP 11 13 1 4
SOHO exit reduced Xerox participation in decisions
Xerox growth has not kept pace with market Increased competition from traditional
vendors and a new entry - HP
Segment 1&2 Market Position
Segment 1 (11-20 ppm)
Source: Dataquest, Analog + Digital Copiers/Multifunction
1H02 3Q03 1H02 3Q03
Segment 2 (21-30 ppm)
HP’s Strategy Capture Every Page,
Attack Xerox on Every Front
Major Elements of HP’s Strategy
Are ALREADY Reflected In
Current Xerox Strategy and Direction
HP Targets: Office – copy/MFP/printing Production – Indigo Services – Total Print Management
HP Tactics:1. Focus on $24 Billion Copier Market2. Focus on Full Office Services3. Focus on Co-Existence of Printers
and MFPs4. Focus on Business Transformation
XCG Monochrome MFP Strategy Expand channels
• Establish harmony with traditional channels• Deliver growth in fast growing 11–30 ppm segment• Establish tighter linkage to IT environment
Strengthen value proposition to channels• Share in service and supplies revenue• Expand product portfolio
Intensify channel marketing focus• Integrate marketing activities with printers
and color• Invest in more demand generation • Increase public relations activities
Enhance product portfolio• Develop channel friendly products• Fill gaps to effectively compete
with HP
Monochrome MFP Technology
Streamline vendors to simplify platform offerings and optimize profitability
Enable Channel friendly products
Improve network functionality
Continue to improve product coherency, ease of use & reliability
Fax-Based Products
Fax-basedmultifunction
system
Designed for small business/workgroups ideal for any budget
Entry Level Mono MFP’s
Xerox WorkCentre M15/M15iBig office features in a small
office device
Xerox WorkCentre PE16A personal desktop multifunction device
ideal for any budget
Workgroup Mono MFP’s
Xerox WorkCentre Pro 423/428 Printing, Copying,
Scanning and Faxing that’s fast, versatile and easy…
What’s Coming…..
Expanded portfolio with industry leading features
Aggressive equipment, service and supplies pricing
Increase opportunity to expand reseller offerings/services
What is the Opportunity for our Channel Partners What is the Business Opportunity
• Xerox goal is to increase our Segment II share to 20% by FY 2006
What is the Channel Strategy• Develop a portfolio of Best of Breed
IT Focused Resellers with a strongincremental SMB account coverage
• Select 50 Resellers Feb 1,04• Expanded to >150 in Q3, ’04
Segment II MFP Partner ProfileSegment II MFP Partner Profile
Recruit Best of Breed Partners
Partner Profile
• “Document solutions as a practice”
• High local market touch
• Incremental market address
• IT Focused SMB market address
• Installed base Printers and/or MFPs experience
• Solution selling skills, e.g. conduct assessments and sell at enterprise level.
• Expert knowledge:
• Ability to do assessments
• Ability to sell Cost Per Page
• Networking expertise and technical support skills
• Customer support expertise and infrastructure
• MFP service capability
Building our MFP Business TogetherXerox is building a networkof Value-Added Resellers that can• Provide integrated solns to SMB customers• Monochrone and color printers and MFPs• Pre sales assessments and post sales service
and support
Xerox will provide our MFP Partners withthe opportunity for accelerated growthand enhanced Profitability
Establish the Xerox MFP Partner as theSMB Customers “channel of preference”for integrated solns.