1 © 2014 InfoTrendswww.infotrends.com© 2014 InfoTrends 2014 FESPA Print Census Informing Educating, and Exploring New Opportunities FESPA & InfoTrends Partnership For Growth

2 © 2014 InfoTrendswww.infotrends.com FESPA Census Path to Innovation

3 © 2014 InfoTrendswww.infotrends.com 2014 FESPA Census – Worldwide Diversity Approximately what is your company’s annual revenue for printing and related services? N = 269 Approximately how many people work at this location or business? N = 230 Source: Preliminary 2014 FESPA Print Census 45 countries across six continents 14 wide format print service provider & industrial manufacturers categories Small, medium, and large shops - Digital and analog equipment users

4 © 2014 InfoTrendswww.infotrends.com Finding New Markets is Top Strategic Priority Do you plan to make any of the following strategic changes in the next 12 months? N = 204 Source: 2014 Preliminary FESPA Print Census

5 © 2014 InfoTrendswww.infotrends.com 2014 FESPA Events are a Primary Source of New Industry Developments How do you usually hear about new industry developments? N = 175 Source: 2014 Preliminary FESPA Print Census

6 © 2014 InfoTrendswww.infotrends.com 2014 FESPA Print Census Reaffirms Commitment to Education & Primary Research How would you like FESPA to reinvest our profits to support the print industry? N = 161 Source: 2014 Preliminary FESPA Print Census

7 © 2014 InfoTrendswww.infotrends.com FESPA Print Census Respondents Indicate Wide Format Market Convergence Which of the following categories best represents your company’s primary business? N = 272 Source: Preliminary 2014 FESPA Print Census

8 © 2014 InfoTrendswww.infotrends.com Innovations in Digital Printing Fuel Growth in Adjacent Markets New performance expectations = New hardware configurations & new ink formulations for new substrates Graphics Textiles Specialty (pad) Industrial

9 © 2014 InfoTrendswww.infotrends.com Shops are Optimistic About Their Own Business, Fairly optimistic for the WF Sector as a Whole On a scale of one to ten, ten being “very optimistic” and one being “not at all optimistic” how optimistic are you for the future of the wide format market and for your own business? N = 186 Source: Preliminary 2014 FESPA Print Census

10 © 2014 InfoTrendswww.infotrends.com PSPs Expect WF Digital To Represent More of their Business in 2 Years Roughly what percentage of your business/revenue is from digital wide format printing today? What do you expect it will be in 2 years? N = 170 Mean = 36.7% 46.7% Source: 2014 FESPA Print Census

11 © 2014 InfoTrendswww.infotrends.com Buyer Demand Trends Push PSPs to Digital Printing & Digital Workflows Please indicate if you are seeing the following key trends as far as your client demands are concerned? N = varies Source: 2014 FESPA Print Census

12 © 2014 InfoTrendswww.infotrends.com New WF Equipment Purchasing Plans Do you plan to purchase or lease new wide format equipment in the next 12 months? N = 246 Source: 2014 FESPA Print Census

13 © 2014 InfoTrendswww.infotrends.com PSPs Plan to Make Purchases for Speed, Textile Printing What new production capabilities do you plan to invest in? N = 209 Source: 2014 FESPA Print Census

14 © 2014 InfoTrendswww.infotrends.com PSPs See Production Shifting Toward Latex and UV Thinking just about your wide format graphics printing business, approximately what percentage is produced using the following methods now? What do you expect it will be in two years N = 173 Source: 2014 FESPA Print Census

15 © 2014 InfoTrendswww.infotrends.com Finding New Markets, Enhanced Print Quality, Improved Speed are Top Reasons PSPs Plan to Make Purchases What is the rationale behind your planned investment in technology? N = 147 Source: 2014 FESPA Print Census

16 © 2014 InfoTrendswww.infotrends.com Summary & Conclusions WF Print Service Providers around the world face similar challenges PSPs remain optimistic about the future of the WF segment and their own business Moves into textile and digital signage indicate market maturity, respondents report that finding and competing in new markets is a top priority PSPs recognize need to invest in their business and skill set, need to better leverage equipment and expertise Very positive indicators on WF UV-curable, Latex, and Textile printing technologies

17 © 2014 InfoTrendswww.infotrends.com Types of Shops/Respondent Profile

18 © 2014 InfoTrendswww.infotrends.com 70% of Respondents Own Their Own WF Printing Equipment Do you have your own wide format printing equipment? N = 264 Source: 2014 FESPA Print Census

19 © 2014 InfoTrendswww.infotrends.com WF Graphics & Textile Printing is Primary Business What percentage of your business comes from: N = 215 Source: 2014 FESPA Print Census

20 © 2014 InfoTrendswww.infotrends.com Respondents Spend Average of <5% on Marketing What is your annual spend on marketing as a percentage of turnover? N = 253 Mean = 4.6% Source: 2014 FESPA Print Census

21 © 2014 InfoTrendswww.infotrends.com Print Service Providers Have Adopted Social Media Marketing What tools do you use to market your business? Please check all that apply. N = 269 Source: 2014 FESPA Print Census

22 © 2014 InfoTrendswww.infotrends.com Key Client Contacts Include Print Buyers, Procurement, and Marketing Positions What percentage of your key client contacts are …? N = 186 This would have been better if we could sort out “other” – having “other” as the #1 answer is a bit awkward Source: 2014 FESPA Print Census

23 © 2014 InfoTrendswww.infotrends.com WF Production & Investment Plans

24 © 2014 InfoTrendswww.infotrends.com Solvent and UV are the Top WF Print Production Technologies Owned Which wide format printing technologies do you own? N = 132 Source: 2014 FESPA Print Census

25 © 2014 InfoTrendswww.infotrends.com WF Equipment Purchasing Plans Indicate UV & Textile Growth Which type of digital wide format equipment will you most likely purchase? N = 275 Source: 2014 FESPA Print Census

26 © 2014 InfoTrendswww.infotrends.com WF Equipment Purchasing Plans; Significant Investments Planned How much do you expect to pay for the new wide format equipment you are going to acquire? N = 199 Mean = $193K Source: 2014 FESPA Print Census

27 © 2014 InfoTrendswww.infotrends.com WF Print Applications

28 © 2014 InfoTrendswww.infotrends.com Top Wide Format Print Applications Which of the following applications do you regularly produce? N = 218 Source: 2014 FESPA Print Census

29 © 2014 InfoTrendswww.infotrends.com Top Wide Format Print Applications (cont’d) Which of the following applications do you regularly produce? N = 218 Source: 2014 FESPA Print Census

30 © 2014 InfoTrendswww.infotrends.com Trending WF Print Applications Which of these applications are growing and which are declining as a percentage of your wide format printing business? N = 246 Source: 2014 FESPA Print Census

31 © 2014 InfoTrendswww.infotrends.com Trending WF Print Applications (2) Which of these applications are growing and which are declining as a percentage of your wide format printing business? N = 246 Source: 2014 FESPA Print Census

32 © 2014 InfoTrendswww.infotrends.com Flexible Media Dominates What percent of your wide format output is on the following media? N = 204 Source: 2014 FESPA Print Census

33 © 2014 InfoTrendswww.infotrends.com Trends & Priorities

34 © 2014 InfoTrendswww.infotrends.com PSPs Report More Interest in Reducing Service Requirements than Reducing Running Cost Where would you like to see more innovation in wide format? (rank 1-10, 10 being the most important) N = 99 Source: 2014 FESPA Print Census

35 © 2014 InfoTrendswww.infotrends.com PSPs Foresee Growth in Industrial Markets What percentage of your business is represented by the following industrial applications? What do you expect it to be in 2 years? N = 175 Source: 2014 FESPA Print Census

36 © 2014 InfoTrendswww.infotrends.com Digital Signage

37 © 2014 InfoTrendswww.infotrends.com Digital Signage Impacting Wide Format Printing When, if ever, do you think Live Media & LCD Screen advertising systems will have an impact on the wide format printing business? N = 130 Source: 2014 FESPA Print Census

38 © 2014 InfoTrendswww.infotrends.com Cloudy View by PSPs on If and When Digital Signage Impacts Wide Format Printing When, if ever, do you think Live Media & LCD Screen advertising systems will have an impact on the wide format printing business? N = 130 Source: 2014 FESPA Print Census

39 © 2014 InfoTrendswww.infotrends.com 20% of PSPs Plan to Move into Digital Signage Do you already, or do you plan to in the next 12 months, offer live media and LCD advertising systems to your customer base? N = 146 Source: 2014 FESPA Print Census