1Agfa & Wide Format Inkjet The C3 conceptWide Format Addressable Market
2the Power of Print Agfa Graphics: Vision Agfa Graphics believes in the future of the printed medium as a powerful communication tool for:Information (books, newspapers,..)PackagingAdvertising & promotionWe will therefore defend and promote the competitive position of printed media.
3Agfa Graphics: Mission Stay Ahead. With AgfaAgfa Graphics wants to maximise stakeholder value by:Improving our customers’ competitive position in prepress and industrial inkjet printing by offering them the means to grow profitably:Leading edge technology (= INNOVATIONS)Complete solutionsHigh level serviceConfirming and enforcing Agfa’s leadership position: technology, cost and market leader in the commercial and newspaper prepress and printing markets.
4Concept - AGFA C3 SYSTEMS C3 - systems offer completeness to the power of 3COMPLETE INTEGRATIONCOMPLETE BENEFITSCOMPLETE SERVICES
6Concept - Complete integration Complete integration of inks/heads/engine and workflow software guarantees a predictable and consistent high-quality outputINKSYSTEMMEDIAHEAD
7Concept - AGFA C3 –SYSTEMS, a choice of applications Agfa's C3-Systems print on anything, thanks to UV technology.The number of applications are endless.Agfa is working together with you and partners to develop new applications.Key is the ability to develop unique applications that will build the business of your clients.The Agfa Application team will assist you in this process
8Agfa Go To Market model: C3 Agfa’s C3 concept:A comprehensive “Go To Market” model.Designed in the best interest of the customerIntended to establish a lasting and satisfying “supplier – customer” business relationshipBorn out of Agfa’s ability to:Control the complete technology spectrumUnderstand the complete scope of industrial applicationsAdequately respond to the customer service & support requirementsAgfa commits to a true “end to end responsibility”in the best interest of the customer
9Focus on Graphics Market Needs Concept - Inkjet & Agfa’s Traditional Core CompetencesInkjet is a coating techniquesuper-precise (3 pl per droplet)super-accurate (300 > 1400 dpi)layers of 5 to 30µm1,5 m/s drop-on-demandInks are dispersions like photo-emulsionspigment dispersions in water, monomers, solventsstabilizing & optimizing by filtrationstirring & mixingImaging chemistry (developers, fixers, dispersions, emulsions, pressroom chemicals)Imaging substrates (AgX coatings on film, Al-plates, paper, ...)Focus on Graphics Market NeedsShort-run printing“digitally”Imaging & appli-cation ‘know-how’(color mgmt, workflow, rendering, screening, ..)100 years imaging expertise, now embedded in millions lines of software code:ApogeeX, Intellitune, Arkitex, Sublima,...Integration in Imaging Systems(CTF-, CTP-, proofing-systems)Worldwide supplier of Integrated Imaging Systems for Printers & Convertors, incl. pre- & post-sales advice & service.
10Strategic backgroundIndustrial Inkjet constitutes the next technological frontier and will be a highly attractive marketThe graphics industry is characterized by accelerating technology lifecycles.The industry is shaping up for the new wave of digital printing: Inkjet.Agfa’s Inkjet solutions target industrial applications, both UV-based:Wide Format (Anapurna and M-Press)Single Pass (Dotrix).Agfa is positioned to play a leading role in the HQ / HT segmentSolid match between Agfa’s core competencies and the key factors for success.Agfa build proprietary integrated systems to fully address end-user requirements.Agfa’s know-how (heads, ink, integration) allow a solid technological position.Agfa has the global service capabilities to deliver on customer satisfaction.
11Agfa industrial inkjet solutions Agfa’s three families of industrial inkjet systems address the segment specific needs:ANAPURNAwide-format printerssigns & displaysChoice of speedChoice of quality levelChoice of investmentChoice of any media (rigid/flexible)White-colour option (with XL2)Economical run-length up to 100 sheets/runM-PRESSEconomical flatbed inkjet pressShort and long runsFully automatedFlatbed80 sheets (= 330 metres)Rigid & flexible substratesGrey scale print technologyOptions:Primer, spot-colour ink, varnishBest Cost of Ownership (COO):DOTRIXHigh-speed,roll-to-roll industrial press907 m2/hour single pass63 cm [24.8 in] widthOptions: primer,white-colour ink or varnishFinishing options: cutting, folding, creasing, laminationGrey scale print technology
13Agfa & Wide Format Inkjet The C3 conceptWide Format Addressable Market
14Value total digital printing market amounts to 110 B€ Agfa focusToner Based 60 B€Inkjet >50 B€Desktop narrow format 42 B€Industrial Wide Format 8 B€Single PassAqueousSolventUV5 B€ B€ ,4 B€B€ B€ B€
15The targeted wide format market Replaces analogue graphicscreen printing“Disruptive technology”Has a cost of ownership advantage for run lengths up to 100 prints.Offers more flexibility (versioning etc…)Shorter turn around time/jobOffers access to additional applications / market segments.PRODUCTSPOP (Point-of-Purchase) advertisingSignageinformational, directional, corporate, brandingVehicle GraphicsExhibition GraphicsPosters (indoor/outdoor)Street FurnitureWindow GraphicsFlags & BannersBillboardsTruck CurtainsBuilding WrapsGF Vinyl BannersAircraft GraphicsShip Decoration
16The addressable wide format market GRAPHICS DISPLAY MARKETANALOGUE OUTPUTTECHNOLOGYBill boardsBannersExhibit buildersPostersPoint of SalePoint of purchaseCity lightsStreet furnitureAirport advertisingRailway advertisingFloor graphicsShort run packagingDIGITAL OUTPUTTECHNOLOGYSCREEN PRINTERSCOMMERCIAL PRINTERSGRAVURE PRINTERSFLEXO PRINTERSAQUEOUS PRINTERSECO SOLVENT IKJET PRINTERSAGGRESSIVE SOLVENT PRINTERSUV PRINTERS
17The addressable wide format market 2008 Worldwide Wide format UV printer market (sales)2665 printersHigh end printer segment575 printersList price > €180KLow end printer segment2090 printersREGIONAL SPLITLow end entry levelList Price< €75 KLow endMid RangeList price± €100 KHIGH ENDLOW END
18The addressable wide format market 2006 ALL MEDIA ADVERTISING SPENDING GREAT BRITAIN:£9.585 MILLIONSource: Outdoor advertising association of Great Britain.
19The addressable wide format market In 2005, advertisers spent $6.3 billion (up 8%) on outdoor advertising.Source: Outdoor advertising association of America, INC.
20Wide format: a disruptive technology to graphic screen printing OffsetFlexoScreenGravureDigitalTotal cost per printed m22007 Wide format break evencost of ownership curve for Graphic Screen Printingproductivity & pricing2009 Wide format break even100 sheets150 sheets:Anapurna:M-Press2009 Hybrid systems break even600 sheetsAddressable part ofscreen print market:2% % % %350 sheetsBreak point controlled by2007 Hybrid systems break evenCombined input from: IT strategies; Web Consulting; SGIA; Agfa M-Press Market assessments
21Market Segments Wide Format High endGraphic ScreenMid endLow end Graphic ScreenPhotolabsDigital print ShopsExhibit buildersSign Shops# sites WW>2.000 <3000> 6.000< 9.000 5.000 7.700 2.500WW 2005 > PFP-shopsGrowth in UV is driven by quality, productivity, cost of ownership advantage, environmental friendliness and ease of printing on rigid surfaces.Technological enhancements in Heads & Inks brings up productivity and reduces cost of ownership..New printer models address a wider variety of applications and increase the size of addressable market.
22Market drivers for growth Growth in UV is driven by quality, productivity, …SignscommercialartworkbooksmagazinesnewspaperspostersBillboardswallpaperLabelsVehicle GraphicsCity lightsBannersCDsLight box advertisingPOS/POPcertificatesQualityNumber copiesmoneybillsDIGITAL PRINTERPRESSPrinted on a press or on a printer?picturesfaxeslettersTickets/tagsoffice copiesformspackagingSingle passII. Industrial inkjet could unlock many applicationsWFIndustrial inkjet could unlock many analogue printed applications
23Market drivers for growth - Industrial wide format Growth in UV is driven by environmental friendliness, …UV – TECHNOLOGY: DISRUPTIVE TO SOLVENTINDUSTRIAL WIDE FORMAT INKJETMARKET SEGMENTATIONAQUEOUSSOLVENTUVLOW ENDHIGH ENDPROFESIONALCORPORATEWESTERNASIANLOW ENDHIGH ENDMILDAGGRESSIVEINTERNAL SALESEXPORTHPCANONEPSONROLANDMUTOHMIMAKISEIKO IVUTEKNURSCITEX VISIONGANDIMD COLORSPANMUTOHOCEZUNDCOLORSPANINCADURSTNURSCITEX VISION3MVUTEK
24UV Wide Format printing - a flourishing technology €500,000UV PIJI.B. 07: 7.000€450,000€400,000€350,000€300,000€250,000€200,000€150,000€100,000€90,000Hardware Price€80,000Aggressive Solvent PIJ€70,000I.B. 07:€60,000€50,000€40,000€30,000‘Eco’-Solvent PIJI.B. 07:€20,000Aqueous PIJ€10,000I.B. 07:€5,000€3,000Aqueous TIJ€1,000.135102030405060708090100200m2 / H.
25Agfa on the way to lead industrial inkjet Anapurna was launched at Ipex 2006 in the medium and high end segment of digital UV printingAgfa’s position is gaining importance fast; from launch in Q we already ramped up to 11% market share after one year.Market share in European shipments Q2 2007Market share equipment – based on 2007 sales