Digital Print Enhancement Web to Print Commercial Print 1

Agenda The Print Market Scodix Applications Scodix Business Summary Global print market revenues Commercial Print market and trends for Scodix Scodix Applications Scodix applications Commercial Print jobs with Scodix Scodix Business Scodix Commercial Print business case Scodix business analysis What Scodix Commercial Print Customers are saying Summary

The Print Market 3

Global Print Market Revenues $ billion 2010 2011 2016 2017 2018 Industry earnings 785 791 845 901 980 The printing market is a competitive market that has been going through transition for more than 20 years, especially since the introduction of digital printing. Since 2010, the overall market has been growing, following the world financial crises that began in 2008. Source: Pira International

Global Print Market Segments $ billion The print market segments are changing, but commercial print is still a viable segment. Publishing $166B Security $12B Commercial $332B Books $35B Magazines $68B Other $63B GCP $168B 2017 $901B General Commercial Print Direct Mail $42B Est.2017 Folding Cartons $147B Publishing Other Newspapers Directories Packaging Other Plastics $40B Labels $31B Flexible $65B Other $75B Commercial Other Catalog $36B Advertising $36B POP/POS $37B Transactional $13B Other $164B Other $211B Packaging $398B Source: Pira International

Global Print Market Commercial Print Segment $ billion Scodix main focus in Commercial Print is: GCP Direct Mail Publishing $166B Security $12B Commercial $332B GCP $168B 2017 General Commercial Print Direct Mail $42B Est.2017 Publishing Other Newspapers Directories Packaging Other Plastics $40B Labels $31B Flexible $65B Other $75B Commercial Other Catalog $36B Advertising $36B POP/POS $37B Transactional $13B Other $164B Packaging $398B Source: Pira International

Commercial Print Market Trends Not a differentiation Digital or analog printing quality CMYK print value Differentiation adds value Variable data printing capabilities add value Enhancements are the key to added print value Source: TechNavio’s analysts

Digital Print vs. Analog Print are not Differentiators Since 1989 analog printing has been in transformation Analog and digital quality are now closely-matched The breakeven point of digital has increased Digital and Analog CMYK prints need differentiators to attract customers and provide higher margins

CMYK Print Value is Lower Competition in commercial print has reduced the value of CMYK prints Now it is not the number of pages printed, but instead the uniqueness of the print that brings higher print margins

Variable Data Printing Capabilities Add Value VDP increases Customer response and retention Brand recognition Print value Source: Castlepress

Enhancements are the Key to Add Print Value InfoTrends reports, accordingly the Scodix model allows PSP's to enjoy margins of 50%-400% (net profit) on Scodix jobs, increasing earnings. Source: Infotrends January 31, 2017. Beyond CMYK: Growth Opportunity in Value-added Special Effects for Production Print.

Scodix Enhancements 12

Scodix Enhancement Offering Multi-applications on a single platform for premium quality print Prints stand out, increasing up-sale and margins

Scodix Applications Scodix Foil Replacing traditional and embossed foil Scodix Sense Replacing traditional embossing Scodix Spot Replacing traditional silk printing Make your products stand out with Scodix applications, increasing up-sale and margins

Scodix Applications Scodix Braille Create raised Braille letters and Optic elements Scodix Metallic Enhance digital prints with metallic coloring Scodix VDP/VDE Replacing traditional and embossed foil Make your products stand out with Scodix applications, increasing up-sale and margins

Scodix Applications Scodix Cast&Cure Create high impact 3D-holographic effects Scodix Crystal Create a real 3D dimension item Scodix Glitter Create a sparkling, shiny experience Make your products stand out with Scodix applications, increasing up-sale and margins

Commercial Print with Scodix Business cards, credit cards, gift cards, specialty cards Variable data printing (VDP) / Variable data enhancement (VDE)

Commercial Print with Scodix Marketing collaterals: Folders, brochures, stationary, certificates, VDP/VDE, etc.

Commercial Print with Scodix Menus, magazines, catalogs, posters

Commercial Print with Scodix Greeting cards, invitations, specialty cards, VDP/VDE

Commercial Print with Scodix Specialty type items, VDP/VDE

Scodix Business 22

Scodix Commercial Print Business Case Wedding Thank You Card with Scodix Foil application Wedding invitation size: 10.5 x 41.9 cm B2 imposition sheet, 6-UP Foil enhancement

Scodix Foil enhancement Scodix Commercial Print Business Case Wedding Thank You Card with Scodix Foil application Job Description Job length 540 cards Total consumable cost $4.26 Scodix Foil enhancement

Scodix Commercial Print Business Case Wedding Thank You Card with Scodix Foil application Scodix Contribution The numbers speak for themselves: $1.59 = cost of card before enhancement $2.20 = cost of card after enhancement +38% = CMYK enhanced print Print this job 120 times, which is less than 1 hour a day for a month, and EARN $38.856

Scodix Print Value Analysis $0.5M $10M $0.45M $9M Print turnover Scodix turnover 5% Margin 9.5% Margin 50% Margin Current print turnover New print turnover Required print turnover $0.95M $1M $19M $1M

What Commercial Print Scodix Customers are saying… CEO Olivier Venien says “by introducing Scodix Foil, Micro Lynx cements its competitive edge. We’re very excited to see the full extent of Scodix Foil capabilities and the sensational products our customers can create with them.”

What Commercial Print Scodix Customers are saying… “We’ve seen a definite increase in job volume,” Garcia said. “It’s so different that we refer to it as ‘Hera 3D’.” He said the feature’s affordable price tag further ignites client interest. “They can’t wait to use it.”

What Commercial Print Scodix Customers are saying… Simply, “the outcome exceeded our customers expectations”, says CEO, Maurice Kwan of Regal Printing.

What Commercial Print Scodix Customers are saying… “At EarthColor, we believe in the value of print. By adding Scodix Sense, we offer our clients state-of-the-art capabilities that make their print collateral more effective,” states EarthColor’s Executive Vice President of EarthDigital, Cheryl Kahanec.

Summary 31

Summary Scodix Value and Advantages Addressing market trends Increase print value using digital enhancements On-demand printing, direct to customer and personalized Short runs Stand out with Scodix Premium quality effects Scodix exclusive applications Save costs and earn more Large collection of applications on a single press Faster, easier and cheaper job setup Higher margins for special enhancements