Talking points

2. Talking points • Quick overview of the JETLEADER • Newsweb experience so far • Scalability of print cost between offset & ink jet • Variable cutoff folder for Newsweb • Variable data printing for Newsweb • TKS other experiences so far

3. JETLEADER 1500 Page 3

4. Quick facts • JETLEADER Introduced in 2010 • (3) sold in North America to date • All components and workflow are TKS except the print heads

5. Digital Printing Family Tree Digital Printing Inkjet Electro Static Drop-on-demand Continuous Piezo Thermal

6. Side view

7. “Cut-off” 21.5” – 32” (546mm – 813mm) “Web width” 11” – 22” (279mm –560mm) 7

8. JETLEADER-1500 Basic Specification Page 8

9. Throughputs

10. Our experience so far

11. Who is Newsweb • TKS first JETLEADER customer worldwide • Located in Chicago • Press runs range from 1,000 copies to 150,000 copies. This includes their offset side.

12. Their Focus Ethnic Publishers Alternative Publishers School Newspapers Community Newspapers

13. Why did Newsweb chose the JETLEADER • Before the purchase they had been looking at ink jet technology for 8 years • With TKS they saw a ink jet vendor with knowledge of the newspaper and commercial printing industry • The “finishing” equipment for multiple section (up to 5) broadsheet products • Open source on ink and paper

14. Current status • First JETLEADER started up October of last year • Now running weekly newspapers and several dailies on the JETLEADER • Second JETLEADER purchased and will be running first quarter of next year at new production center. • Second press will have a new variable cutoff folder and the first press will also be upgraded with the new variable cutoff folder • Both presses will have the upgraded variable data printing package.

20. Current Product Mix • Mostly Tabloid because that is the bulk of what they normally run. • A few ¼ tabloid products • Will go after more broadsheet work with the new variable cutoff folder that gives more page widths. Now fixed at 12”

21. Number of jobs • Currently 24 different products comprised of: • (2) Dailies • Weeklies • Monthly • Special one time runs • In the near future new customers utilizing the variable data printing • Example, change the masthead for city being served to attract local advertisers

22. Manning • (2) people • (1) Pre press person for inputting/ripping the job • (1) Jogger • After the job starts the pre press person can go on to other work.

23. Paper being used • Started off being mostly ink jet • Now 100% offset, same sheet as their single wide press • 30#, 35#, 50# and 60#

24. Ink being used • TKS has open source for ink supplier • Newsweb has been using one supplier • Additional supplier(s) soon to be qualified by TKS • Choice of ink and changing ink suppliers not to be taken lightly in Newsweb’s opinion.

25. File management • Being a commercial printer means having to deal with many other customers and their files. • There was a learning curve on how to manipulate job files • On offset easier to compensate on the press for needed changes.

26. New Production Center (2014)

27. Scalability • What is the sweet spot for ink jet versus offset? • How do the two processes compare at various page sizes and print runs? • What is the proportional cost split between the two printing processes?

28. Assumptions • Broadsheet (21.5” cutoff x 12” page width) • 48.8 gsm “offset” paper substrate for both • Color on every page • Single width offset press • Offset ink versus ink jet ink • No press payments on either

29. No machine cost included

30. No machine cost included

31. No machine cost included

32. No machine cost included

33. All things considered equal? • How many people to run the same job? • Can be done in one pass on JETLEADER • Multiple sections, up to 5, not have to insert offline • Up to 48 pages in a section with JETLEADER • Waste factor on offset • Setup times on offset

34. Proportional cost for offset and Ink jet

37. Variable Cutoff Folder

39. Variable Data Printing

41. Sheeter

43. Multicut Sheeter 200 Corporate Dr. • Blauvelt • NY • 10913 • 845-353-5000 www.vitsinternational.com

44. Multicut Sheeter Maximum Web Width 22” Minimum Cut Length 6” Maximum Cut Length 28” CUT ANY LENGTH SIZE BETWEEN MIN 6” AND MAX 28” SIMPLY ENTER DESIRED SIZE 200 Corporate Dr. • Blauvelt • NY • 10913 • 845-353-5000 www.vitsinternational.com

45. Multicut Sheeter 200 Corporate Dr. • Blauvelt • NY • 10913 • 845-353-5000 www.vitsinternational.com

46. Experiences to date

47. Drupa Experience • We had four different demonstrations every day • Wall Street Journal “live” USA edition • Page files received at 7:00am Germany time (1am NYC) • Morning and afternoon runs in booth • Berliner size Korean Newspaper and Tab size Japanese • A5 and A4 sheets for book making • Using VITS sheeter and Horizon book making equipment • The press ended up being sold to Newsweb

48. Drupa Experience

49. Wall Street Journal (Asia) Experience Started printing in April (2012) at one of our factories the Wall Street Journal Asia edition. This is for Osaka area. • Get notification files are ready at 3:00am (2pm est) Japan time that files have been uploaded. Product starts leaving at 3:20am • We then pull/download the files and start the ripping process. Takes a few minutes.

50. Wall Street Journal (Asia) Experience • Printing 5 days a week, small print draw for distribution to local area business, i.e. hotels. • Tabloid product 32 to 48 page average • Per the “test program” agreement we concluded the printing first quarter of this year.