WIDE FORMAT PRINTERS: A HIDDEN PROFIT POOL An IT Strategies Perspective, GraphExpo

Helping to Create the Specification for Next Generation Printers IT Strategies, Inc. is a digital printing market research firm and consultancy, with a focus on non- consumer printer markets. Established in 1992 and under the same private ownership since that time, IT Strategies has been a partner of Inkjet production printing manufacturers in helping to identify, size, and qualify new market opportunities for Inkjet printing technologies 2

U.S. Advertising Spending - $M 3 Total: $205 billion 2011 U.S. Advertising Spending - $M TV$68,000 Direct Mail$50,000 Internet$31,000 Newspaper$30,000 Radio$10,000 Outdoor$7,000 Point of Purchase$4,500 Social media$2,885 Video advertising$1,800 Mobile Advertising$1,600 Wide Format Graphics is a $10B market

Marketing Dollars Will Continue to Shift to Digital Source: Magna, Inc. IT Strategies projection on POP: 11% growth Wide Format Graphics is a Growing market

Impact of Electronic Technologies on Document Print Volumes FSI/Coupons Catalogs Magazines College text booksK-12 text books Trade books Books Journals Newspapers Marketing collateral Direct mail Transaction statements Prospectus/annual report Directories Legend: Significant impact not yet felt under way has occurred Source: PRIMIR’s 2011 Impact of Electronic Technologies on Print Study Wide Format Graphics Not Under Foresseable Threat of Electronic Substitution

US Wide Format Graphic Printer Units by Ink Type % -1% CAGR

US Wide Format Graphic Printer by Hardware Revenue - $M % -1% 5% CAGR

Value 8 Ink/Substrate Range LowHigh High Educate Your WF Graphics Customers About Ink Types

Applications 9

UV-Curable WF Flatbed Printer Growth Continues… What is the ave. retail price/sq ft for WF UV output WW? –$5.80 What is the ave. cost per square foot? –$1.62 What is the gross margin on Offset? –Single % digits?? 10 $M Retail Value of UV-curable WF Output 9% CAGR 7% CAGR

Analog to Digital Evolution Wide Format Digital’s Enduring Value as a Local Market

Total Print Volume: 67 Billion Square Feet WW, 2011 Wide Format Graphics: Digital & Analog Share a Divided Market

The Efficiency Squeeze: Staff Requirements Up as Print Volume Decreases Set-up time/job/minutes20 Jobs/Day Total Set-up time (hours)81733 Hours/Staff for set-up333 Staff needed3611 jobs/day Ave. run length2,5001, total print volume62,50075,00050,000 3 operators 6 operators 11 operators

Thank You! Direct dial Go Forth, Help Your Customers Invest in the Growing Wide Format Graphics Business