1 Creating a Future in Print 2

1 Creating a Future in Print

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

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 * - Info. Trends estimates; 53% of revenues from German Newspapers stem from advertising in 2007, German Newspaper Publishing Association (BDZV)

Advertising is moving to the online world 10, 000 9, 000 8, 000 7, 000 Press Television 6, 000 Direct Mail 5, 000 Outdoor & Transport Radio 4, 000 Cinema 3, 000 Internet 2, 000 1, 000 0 2001 2002 2003 2004 Source: Pricewaterhouse. Coopers Media Outlook 2008 2005 2006 2007 UK Advertising Expenditures (£Millions)

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

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

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

What will be the dominant form? Western European Advertising Expenditures (€ Millions) ► 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 50, 000 45, 000 40, 000 35, 000 Press 30, 000 Television 25, 000 Radio 20, 000 Outdoor 15, 000 Internet 10, 000 5, 000 2001 2002 2003 2004 Source: Info. Trends estimates 2005 2006 2007

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

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 highquality (magazines, graphic art applications), UV wide format • Interplay with software solutions, especially around web

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)

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

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

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

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

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

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

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

20 Logical conclusion

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

22 Trueflow Connected to Major POD

23 Wide format UV inkjet ► Inca product range – currently sold through Sericol • Spider • Turbo • Onset ► Truepress Jet 1600 • Mid-range flatbed ► Truepress Jet 2500 • Top of the range hybrid (roll to roll and flatbed)

24 Truepress Jet 1600 UV-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 LED curing brings many advantages 2 x. CMYK or CMYK+W (Cl) Accurate flatbed design for many small or large rigid items Flexible and hard type inks for broad range of substrates ‘Photo quality wide format printer’ by using grayscale printheads and resolution up to 1200 x 1200 dpi

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

Truepress Jet 650 UV? ► 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-J 650 UV prints on many different substrates. ► The TP-J 650 UV is developed for printing directly onto parts and products used in industrial goods.

Truepress Jet 520 ► High-speed continuous feed inkjet press ► Combination of Epson’s head technology and Screen’s engineering and colour management skills

Truepress Jet 520 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 28

Uses existing Screen technology ► 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 Plate

30 Truepress Jet. SX ► World’s first B 2 sheet-fed inkjet machine ► Shown at Drupa 2008, available Q 1 2010 ► High-resolution inkjet heads that can print onto a very wide range of substrate • Includes standard off-set art (gloss) paper ► 1600 B 2 sheets per hour • 107 A 4 pages per minute

31 Effect on Screen’s business • Retain Ct. P business while developing POD as main product line 2007 Mar = POD = Ct. P = Others 2011 Mar

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 Creating a Future in Print