Agfa & Wide Format Inkjet

1. Agfa & Wide Format Inkjet

2. Agfa & Wide Format Inkjet • The C3 concept • Wide Format Addressable Market

3. Agfa Graphics: Vision • Agfa Graphics believes in the future of the printed medium as a powerful communication tool for: • Information (books, newspapers,..) • Packaging • Advertising & promotion • We will therefore defend and promote the competitive position of printed media. the Power of Print

4. Agfa Graphics: Mission Stay Ahead. With Agfa Agfa 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 solutions • High level service • Confirming and enforcing Agfa’s leadership position: technology, cost and market leader in the commercial and newspaper prepress and printing markets.

5. Concept - AGFA C3 SYSTEMS C3 - systems offer completeness to the power of 3 COMPLETE INTEGRATION COMPLETE BENEFITS COMPLETE SERVICES

6. Concept - AGFA C3 SYSTEMS

7. INK HEAD MEDIA SYSTEM Concept - Complete integration Complete integration of inks/heads/engine and workflow software guarantees a predictable and consistent high-quality output

8. Concept - 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

9. Agfa Go To Market model: C3 Agfa’s C3 concept: A comprehensive “Go To Market” model. • Designed in the best interest of the customer • Intended to establish a lasting and satisfying “supplier – customer” business relationship Born out of Agfa’s ability to: • Control the complete technology spectrum • Understand the complete scope of industrial applications • Adequately respond to the customer service & support requirements Agfa commits to a true “end to end responsibility” in the best interest of the customer

10. Concept - Inkjet & Agfa’s Traditional Core Competences Inkjet is a coating technique • super-precise (3 pl per droplet) • super-accurate (300 > 1400 dpi) • layers of 5 to 30µm • 1,5 m/s drop-on-demand Inks are dispersions like photo-emulsions • pigment dispersions in water, monomers, solvents • stabilizing & optimizing by filtration • stirring & mixing Imaging chemistry (developers, fixers, dispersions, emulsions, pressroom chemicals) Imaging substrates(AgX coatings on film, Al-plates, paper, ...) Focus on Graphics Market Needs Short-run printing “digitally” Imaging & appli- cation ‘know-how’ (color mgmt, workflow, rendering, screening, ..) Integration in Imaging Systems (CTF-, CTP-, proofing-systems) 100 years imaging expertise, now embedded in millions lines of software code: ApogeeX, Intellitune, Arkitex, Sublima,... Worldwide supplier ofIntegrated Imaging Systemsfor Printers & Convertors, incl. pre- & post-sales advice & service.

11. Strategic background Industrial Inkjet constitutes the next technological frontier and will be a highly attractive market • The 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 segment • Solid 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.

12. Agfa industrial inkjet solutions Agfa’s three families of industrial inkjet systems address the segment specific needs • :ANAPURNA • wide-format printers • signs & displays • Choice of speed • Choice of quality level • Choice of investment • Choice of any media (rigid/flexible) • White-colour option (with XL2) • Economical run-length up to 100 sheets/run • M-PRESS • Economical flatbed inkjet press • Short and long runs • Fully automated • Flatbed • 80 sheets (= 330 metres) • Rigid & flexible substrates • Grey scale print technology • Options: • Primer, spot-colour ink, varnish • Best Cost of Ownership (COO) • :DOTRIX • High-speed, • roll-to-roll industrial press • 907 m2/hour single pass • 63 cm [24.8 in] width • Options: primer, • white-colour ink or varnish • Finishing options: cutting, folding, creasing, lamination • Grey scale print technology

13. Productivity / Application positioning Productivitym2/hour :Dotrix Single Pass 1000 2 Wide Format :M-Press 500 1 400 :Anapurna II. The products 100 50 10 Roll-to-roll, -to-sheet Flexible packaging printing Sheets Billboard PoP Signs Rigids, Sheets, Roll-fed Billboard PoP, Signs, Poster

14. Agfa & Wide Format Inkjet • The C3 concept • Wide Format Addressable Market

15. Value total digital printing market amounts to 110 B€ Agfa focus Toner Based 60 B€ Inkjet >50 B€ Industrial Wide Format 8 B€ Single Pass Desktop narrow format 42 B€ Aqueous Solvent UV • 5 B€ 3 B€ 0,4 B€ • 2010 5 B€ 3 B€2 B€

16. PRODUCTS POP (Point-of-Purchase) advertising Signage informational, directional, corporate, branding Vehicle Graphics Exhibition Graphics Posters (indoor/outdoor) Street Furniture Window Graphics Flags & Banners Billboards Truck Curtains Building Wraps GF Vinyl Banners Aircraft Graphics Ship Decoration Replaces analogue graphic screen 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/job Offers access to additional applications / market segments. The targeted wide format market

17. The addressable wide format market GRAPHICS DISPLAY MARKET ANALOGUE OUTPUT TECHNOLOGY DIGITAL OUTPUT TECHNOLOGY • Bill boards • Banners • Exhibit builders • Posters • Point of Sale • Point of purchase • City lights • Street furniture • Airport advertising • Railway advertising • Floor graphics • Short run packaging SCREEN PRINTERS COMMERCIAL PRINTERS GRAVURE PRINTERS FLEXO PRINTERS AQUEOUS PRINTERS ECO SOLVENT IKJET PRINTERS AGGRESSIVE SOLVENT PRINTERS UV PRINTERS

18. The addressable wide format market 2008 Worldwide Wide format UV printer market (sales) 2665 printers High end printer segment 575 printers List price > €180K Low end printer segment 2090 printers REGIONAL SPLIT Low end entry level List Price < €75 K Low end Mid Range List price ± €100 K HIGH END LOW END

19. The addressable wide format market 2006 ALL MEDIA ADVERTISING SPENDING GREAT BRITAIN: £9.585 MILLION Source:Outdoor advertising association of Great Britain.

20. The addressable wide format market In 2005, advertisers spent $6.3 billion (up 8%) on outdoor advertising. Source:Outdoor advertising association of America, INC.

21. Total cost per printed m2 Digital Gravure Offset Flexo Screen cost of ownership curve for Graphic Screen Printing 2007 Wide format break even :Anapurna 2009 Wide format break even 2007 Hybrid systems break even :M-Press 2009 Hybrid systems break even Break point controlled by 100 sheets 150 sheets 350 sheets 600 sheets productivity & pricing Addressable part of screen print market: 2% 4% 20% 50% Combined input from: IT strategies; Web Consulting; SGIA; Agfa M-Press Market assessments Wide format: a disruptive technology to graphic screen printing

22. Market Segments Wide Format WW 2005 > 130.000 PFP-shops Growth 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.

23. Printed on a press or on a printer? PRESS books newspapers commercial artwork magazines moneybills DIGITAL PRINTER CDs certificates packaging Number copies forms wallpaper Labels posters City lights Signs POS/POP Billboards Light box advertising office copies Vehicle Graphics Tickets/tags Banners faxes pictures letters Quality Market drivers for growth Growth in UV is driven by quality, productivity, … Single pass II. Industrial inkjet could unlock many applications WF Industrial inkjet could unlock many analogue printed applications

24. Market drivers for growth - Industrial wide format Growth in UV is driven by environmental friendliness, … UV – TECHNOLOGY: DISRUPTIVE TO SOLVENT INDUSTRIAL WIDE FORMAT INKJET MARKET SEGMENTATION SOLVENT UV AQUEOUS HIGH END LOW END WESTERN ASIAN PROFESIONAL CORPORATE INTERNAL SALES EXPORT LOW END HIGH END MILD AGGRESSIVE HP CANON EPSON ROLAND MUTOH MIMAKI SEIKO I VUTEK NUR SCITEX VISION GANDI MD COLORSPAN MUTOH OCE ZUND COLORSPAN INCA DURST NUR SCITEX VISION 3M VUTEK

25. UV Wide Format printing - a flourishing technology UV PIJ I.B. 07: 7.000 €500,000 €450,000 €400,000 €350,000 €300,000 €250,000 €200,000 €150,000 €100,000 €90,000 HardwarePrice €80,000 Aggressive Solvent PIJ €70,000 I.B. 07: 30.000 €60,000 €50,000 €40,000 ‘Eco’-Solvent PIJ €30,000 I.B. 07: 72.000 Aqueous PIJ €20,000 €10,000 I.B. 07: 275.000 €5,000 €3,000 Aqueous TIJ €1,000 . 1 3 5 10 20 30 40 50 60 70 80 90 100 200 m2 / H.

26. Agfa on the way to lead industrial inkjet • Anapurna was launched at Ipex 2006 in the medium and high end segment of digital UV printing • Agfa’s position is gaining importance fast; from launch in Q2 2006 we already ramped up to 11% market share after one year. Market share in European shipments Q2 2007 Market share equipment – based on 2007 sales