1. 1 Creating a Future in Print

2. The Presentation The future of print A digital perspective What is Screen doing about it 2

3. Future of print ►Future of print is closely related to the future of advertising ►Advertising is a big demand driver for print Newspaper and magazine publishers would not exist without advertising −Between 50%-60% of newspaper revenues comes from advertising* Direct Mail Other promotional applications * - InfoTrends estimates; 53% of revenues from German Newspapers stem from advertising in 2007, German Newspaper Publishing Association (BDZV)

4. Advertising is moving to the online world UK Advertising Expenditures (£Millions) Source: PricewaterhouseCoopers Media Outlook 2008

5. What is going on? ►Shift from physical (print) to virtual (electronic) representation

6. What is going on? ►Shift from centrally created content to user-generated content

7. What is going on? ►Shift from a few dominant media forms to multitude of media channels

8. What will be the dominant form? ►Probably multiple forms Research indicates that combining channels is more effective than advertising through one channel only ►Print is still the preferred media Although print-related advertising is declining, print is still the preferred media by far Source: InfoTrends estimates Western European Advertising Expenditures (€ Millions)

9. They Work! More Channels = More Response Improvement over print-only campaigns Source: Multi-Channel Communications Measurement & Benchmarking. InfoTrends, 2008. N = 217 marketers 34% 28% 19% 35%

10. Implications ►New advertising and publishing models are emerging Combine multiple delivery channels: web, print, email, outdoor, tv Make use of local or user-generated content ►Cost-effective (inkjet) digital print is key enabler for new applications, either high-speed (newspapers) or high- quality (magazines, graphic art applications ), UV wide format Interplay with software solutions, especially around web

11. Local Publishing / Micro-zone Publishing ►Local / Micro-Zone Publishing Local “journalists” use an online portal to submit stories, photos, and community events for the neighbourhood’s community Web site and print product ►Triblocal Example of a Micro-Zone website where people can upload local stories and pictures which will be printed in a local newspaper (Chicago Tribune)

12. Reverse Publishing ►Reverse Publishing Inverts the publication process. Takes existing online (user generated) content and makes them available in printed form ►Example: www.SharedBook.com Technology to gather content from blogs or websites and print them in a book. Allows for annotations and even some customisation. ►Example: www.HotPrint.com UK company that develops software to create photo books from FaceBook

13. Self Publishing ►Self Publishing Publishing of books and other media by the authors of those works, rather than by established, third-party publishers ►Example: MagCloud Website where writers can publish their own magazine. MagCloud takes care of printing and fulfillment. MagCloud is an initiative that allows for self-publishing of magazines

14. Tailored Publishing ►Tailored Publishing Publishing of magazines or other media where users can pick and choose the content ►Example: Mine from TimeCMG Mine from TimeCMG is a website where users can indicate their interests and preferences by choosing content from up to 5 different magazines Mine from TimeCMG is a website where users can pick content from up to 5 different magazines

15. Opportunities created by digital printing ►Short-run everything Books, newspapers, general commercial print, ►Labels – rapidly growing percentage ►Personalised everything Photobooks, direct mail, transpromo ►New business – web to print Cards, calendars, posters ►Wide format Building wraps, vehicle transfers ►And that’s just based on current technology! 15

16. Inkjet or toner ►Toner is mature product, ideal for small formats BUT ►Inkjet is at beginning of development ►Much easier to scale – bigger, faster, higher quality etc. ►Flexibility with different inks – UV, water, solvent ►Lower maintenance cycles 16

17. 17 What does the future hold for Screen? Every ten years, Screen has changed – 1940s Glass screens – 1960s Cameras – 1970s Scanners – 1980s Electronic page make-up – 1990s Imagesetters – 2000 CtP – 2010 Digital printing

18. 18 CtP market almost at peak Vantage Stategic Marketing VLF news 8 up 4up

19. 19 SCREEN Targeting POD Paper media printing Industrial Printing Packaging printing Sign display Inkjet Technology

20. 20 Logical conclusion

21. 21 – Print on demand – why Screen? Logical conclusion of Screen’s product development Workflow Previous products Key technologies Manufacturing techniques Colour knowledge

22. 22 Trueflow Connected to Major POD

23. Wide format UV inkjet ►Inca product range – currently sold through Sericol Spider Turbo Onset ►Truepress Jet1600 Mid-range flatbed ►Truepress Jet2500 Top of the range hybrid (roll to roll and flatbed) 23

24. Truepress Jet1600UV-F ►A unique combination of productivity and high print quality ►It’s the perfect tool to enter one of today’s most booming markets in the graphic arts industry 24 2xCMYK or CMYK+W (Cl) Accurate flatbed design for many small or large rigid items ‘Photo quality wide format printer’ by using grayscale printheads and resolution up to 1200 x 1200dpi Flexible and hard type inks for broad range of substrates LED curing brings many advantages

25. Truepress Jet 2500UV? ►A unique combination of productivity and high print quality ►It’s the perfect tool to enter one of today’s growing markets 25 Best build Roll to roll system in the market Highest resolution wide format printer Fastest ‘Photo Quality’ wide format printer Flexible inks for broader range of substrates

26. Truepress Jet650UV? ►An industrial inkjet printer which offers a unique combination of extreme quality, high precision and high productivity ►By using super flexible UV curable ink the TP-J650UV prints on many different substrates. ►The TP-J650UV is developed for printing directly onto parts and products used in industrial goods.

27. Truepress Jet520 ►High-speed continuous feed inkjet press ►Combination of Epson’s head technology and Screen’s engineering and colour management skills

28. 28 Truepress Jet520 since launch ►More than 200 engines are running in production ►Best selling colour inkjet production printer in 2008 ►Proven to be the most reliable and stable production printer on the market ►Already being used for: Book printing Transactional printing Direct mail Forms Labels Newspapers

29. ►Build quality ►Precision engineering ►Screen’s head implementation is unique (CTP) ►Minimises the amount of ink required (Screening) ►Shading technology for compensating unevenness among heads (Scanners) ►PDF based workflow (Trueflow) ►Screen’s knowledge of colour management Uses existing Screen technology Plate

30. Truepress JetSX 30 ►World’s first B2 sheet-fed inkjet machine ►Shown at Drupa 2008, available Q1 2010 ►High-resolution inkjet heads that can print onto a very wide range of substrate Includes standard off-set art (gloss) paper ►1600 B2 sheets per hour 107 A4 pages per minute

31. 31 Effect on Screen’s business Retain CtP business while developing POD as main product line = POD = CtP = Others 2007 Mar2011 Mar

32. Conclusions ►The advertising and publishing industry is changing New applications and business models are emerging that combine web and print ►Cost-effective digital print is a key enabler for new applications All new forms of publishing require digital as production method because run lengths are becoming smaller and jobs more customised ►Ongoing developments in inkjet enable further shift to digital More applications are expected to migrate from offset to digital as costs are coming down and quality is rising ►The opportunity is emerging right now!

33. 33 Creating a Future in Print