Since our last report we have continued to transform our business with a renewed focus on creating sustainable profitable growth.
2015 was a period of significant growth for Fuji Xerox Australia with business and financial objectives set to secure market share and increase overall units in the market year on year to create an annuity stream for the future.
Fuji Xerox Australia continues to lead the market in terms of market share and revenue in Australia. Our revenues remain at around $1b per annum. The groups total assets position also remains steady and further supports that we are well positioned to leverage our size, scale and balance sheet strength through our transformation journey. [G4-EC1]
As our transformation continued into 2016, significant decisions have been made to more closely align ourselves with customer needs as well as finding efficiencies in our business to focus on sustainable profitable growth.
The Australian economy has continued in a low growth spectrum which has impacted business confidence. Currency volatility has further impacted the cost of importing our products from overseas. This coupled with the highly competitive technology market for print devices has put pressure on profit and growth opportunities in our market.
Our customers have also been asking us to simplify our interactions with them and have single accountability for all solutions provided. They are looking to our organisation to help them prepare for and embrace digital transformation strategies that rely on Fuji Xerox solutions and technologies to help digitise data and automate information and processes. This requires a more strategic engagement with customers to address challenges beyond print.
To this end we have integrated our sales teams into a single sales organisation supported by cohesive marketing and operations units. We are enabling our regional managers to take ownership of business decisions, customer satisfaction and employee engagement within their states. This integration and local empowerment has the dual advantage of improving customer experience through more strategic relationships while delivering a more streamlined and cost effective operation across our own organisation.
This approach to market supports our business strategy of being a solutions led business with sustainable, profitable growth. Our solutions are developed to address customer needs including using our hardware, software and service offerings to help them transform their business and simplify their operations.
We have also invested in a new solutions centre of excellence tasked with quickly and effectively taking to market solutions to meet our customer’s needs across digital transformation, data management and information security.
Our own transformation will be underpinned by strong governance, including the mandatory FUJIFILM Holdings Corporation requirement of a full Japanese version of the Sarbanes-Oxley audit undertaken annually. This is aligned to measurable company-wide goals focused on employee engagement, customer satisfaction, financial performance, continuous improvement and corporate social responsibility.
At the time of drafting this report, the company is part way through the structural phase of our business transformation. The change is difficult but this focus on sustainable, profitable growth is essential for the long term viability of our operations and our need to build up future investment in our employees, the community and the environment.
The coming few months will see teams focused on embedding the changes and planning for the next financial year.
Optimise our current business, maximise return on current technology solutions, invest in new services and go to market, while delivering sustainable financial returns.
|14/15 objectives||How did we do?|
|Achieve greater than AUD$1b in revenue||Not met - Revenue was short of AUD$1b by less than 4 percent.|
|Grow revenue from services and solutions to 50 percent of total revenue||Not met - Achieved 44 percent in services and solutions revenue in 14/15.|
|15/16 Objectives||How did we do?|
|Achieve greater than AUD$1b in revenue||Met - Grew revenue to slightly more than AUD$1b.|
|Retain revenue from services and solutions to 50 percent of total revenue.||Met - Achieved 50 percent in services and solutions revenue in 15/16.|
|Achieve 40 percent Office Colour market share.||Not met - Lifted Office Colour market share to 36 percent. While short of the 40 percent target, this still represented significant growth over the prior year.|
|Achieve greater than AUD$1b in revenue|
|With more than 120,000 devices in customer sites across Australia, we are shifting our focus to a solutions based operation.|
|Over the next 2 years we will restructure our sales go to market along with our support organisation to achieve this goal.||