Copyright  2008 KOMORI Corporation. All Rights reserved. Print Forum 2011 Komori with “OffsetOnDemand”

2 Todays topics  Komori Introduction  KHS-AI  H-UV  OffsetOnDemand  Komori Introduction  KHS-AI  H-UV  OffsetOnDemand

3 Komori Introduction  For more than 80 years, since 1923, the Komori Group has been producing offset printing presses.  Employees : 2,471 persons  Main products:  Sheet-fed  Web-fed  Komori Chambon  Currency and Security Printing Presses  Komori CZ Office  For more than 80 years, since 1923, the Komori Group has been producing offset printing presses.  Employees : 2,471 persons  Main products:  Sheet-fed  Web-fed  Komori Chambon  Currency and Security Printing Presses  Komori CZ Office

4 Innovative  Latest Technology to improve profitability and respect the environment  KHS-AI + H-UV = OffsetOnDemand  Latest Technology to improve profitability and respect the environment  KHS-AI + H-UV = OffsetOnDemand

Copyright  2008 KOMORI Corporation. All Rights reserved. KHS-AI Latest Technology to improve profitability and respect the environment

6 KHS-AI  Today's issues in the press room  Standardize printing procedure  Digitize print quality control  Reduce waste  Reduce lost time between jobs  KHS-AI Concept  Standardize the colour matching operation  No waste sheets used for color matching  Reduce make-ready sheets to sheets  Get standard density within 20 sheets  Limit density change on the run  Today's issues in the press room  Standardize printing procedure  Digitize print quality control  Reduce waste  Reduce lost time between jobs  KHS-AI Concept  Standardize the colour matching operation  No waste sheets used for color matching  Reduce make-ready sheets to sheets  Get standard density within 20 sheets  Limit density change on the run

7 KHS-AI  Fast Print start - Instant colour and register  Pre-Inking - Auto learning  Smart Feedback – Density change without paper  Register Preset - Auto learning  Air Preset - Self learning  Smart Sequence – Automatic job change  Fast Print start - Instant colour and register  Pre-Inking - Auto learning  Smart Feedback – Density change without paper  Register Preset - Auto learning  Air Preset - Self learning  Smart Sequence – Automatic job change

8 KHS-AI The Intelligent Way to Increase Profitability  Productivity with unparalleled performance  Lasting performance over press lifetime  Automatic Intelligence for smarter production  Future proof application  Cost savings on:  Paper  Time  Inks  Chemicals  Electricity  Lower cost of production than any similar machine  Fast return on investment The Intelligent Way to Increase Profitability  Productivity with unparalleled performance  Lasting performance over press lifetime  Automatic Intelligence for smarter production  Future proof application  Cost savings on:  Paper  Time  Inks  Chemicals  Electricity  Lower cost of production than any similar machine  Fast return on investment

9 KHS-AI - Cost Advantages  KHS-AI reduces start-up paper waste by about 80%  KHS-AI saves 30 tons of paper a year per machine  KHS-AI intelligent pre-setting reduces lost production time  KHS AI increases productivity, reduces chemical waste  KHS-AI saves electricity  KHS-AI reduces ink consumption by 30 to 35 %  KHS-AI is a Komori Patent, there is no equal in the industry  KHS-AI reduces start-up paper waste by about 80%  KHS-AI saves 30 tons of paper a year per machine  KHS-AI intelligent pre-setting reduces lost production time  KHS AI increases productivity, reduces chemical waste  KHS-AI saves electricity  KHS-AI reduces ink consumption by 30 to 35 %  KHS-AI is a Komori Patent, there is no equal in the industry

10 KHS-AI - Pre-Inking  The self-learning function creates an automatic compensation curve corresponding to the changes in conditions. Pre-Inking 2 Basic Ink film formed Ink profile added % of image KeyOpening % of image KeyOpening

11  The compensation curve will change automatically after pushing the update button. Inking, register, press pre-setting are more accurate as conditions change. % of image Key Opening Update KHS-AI - Pre-Inking

12 KHS-AI - Job Change Control 1. De-inking rollers 1-a.(Ink roller cleaning) 2. Blanket Cleaning 2-a.(Impression cylinder cleaning) 3 ． Plate Changing 4 ． Pre-Inking 5 ． High speed start up 6. Run 30 sheets and wait for OK All these procedures can be handled automatically by… KHS-AI "Smart Sequence"

13 High Speed Start-up  High Speed Start-up at 12,000 sph  Time to reach 30th copy  Sheets required for Stable Density  Sheets required Stable Register  High Speed Start-up at 12,000 sph  Time to reach 30th copy  Sheets required for Stable Density  Sheets required Stable Register Approx. 40% Saving Approx. 60% Saving

14 KHS-AI - Cost Reduction Effect on an LS 29 What If you could reduce just 100 sheets waste per job ?… Case 1 ： 1 day operation, complete 30 jobs… 100 Sheets of 135 gsm paper = 5.5kg x 30jobs x $1.50per kg = $247 cost saving per day Case 2 ： 25 days operation per month $247 x 25 working days = $6,175 cost saving per month Case 3: 5 years operation using KHS-AI $6,175 x 60 months = $370,500 in 5 years + Power savings (about $300 per month) x 60 = $18,000 in 5 years Total Saving over 5 Years in Paper and Power = about $388,000 + Ink & Chemicals savings over 5 years (± $7,000) KHS-AI can easily save you $395,500 in 5 years What If you could reduce just 100 sheets waste per job ?… Case 1 ： 1 day operation, complete 30 jobs… 100 Sheets of 135 gsm paper = 5.5kg x 30jobs x $1.50per kg = $247 cost saving per day Case 2 ： 25 days operation per month $247 x 25 working days = $6,175 cost saving per month Case 3: 5 years operation using KHS-AI $6,175 x 60 months = $370,500 in 5 years + Power savings (about $300 per month) x 60 = $18,000 in 5 years Total Saving over 5 Years in Paper and Power = about $388,000 + Ink & Chemicals savings over 5 years (± $7,000) KHS-AI can easily save you $395,500 in 5 years

15 Komori Technology improves the environment and your profitability at the same time  1 tree produces 3 tons of dry wood (2.5 tons of paper)  3 tons of wood makes 37,500 sheets of 40" size coated paper  In 1 year a 40" press uses 533 trees (avg. 20million sheets)  Average total waste paper is 5% (26 trees)  Average start-up waste on a standard press is 200 sheets  When we use KHS-AI we can save 160 sheets per start-up  Even at only 10 jobs per day you will save 400,000 sheets (25 tons of paper) or ten trees per year when you use KHS-AI  1 tree produces 3 tons of dry wood (2.5 tons of paper)  3 tons of wood makes 37,500 sheets of 40" size coated paper  In 1 year a 40" press uses 533 trees (avg. 20million sheets)  Average total waste paper is 5% (26 trees)  Average start-up waste on a standard press is 200 sheets  When we use KHS-AI we can save 160 sheets per start-up  Even at only 10 jobs per day you will save 400,000 sheets (25 tons of paper) or ten trees per year when you use KHS-AI

Copyright  2008 KOMORI Corporation. All Rights reserved. Komori H-UV Brand new

17 Drying systems used in offset printing  Sheet-fed machines  Oxydation: Ink is dried by atmospheric oxygen.  IR: Uses expensive IR heat to accelerate oxydation drying  Classic UV: Mercury UV light causes photo-polymerisation to cure the ink  LED-UV: Special LED-UV light causes photo-polymerisation to cure the ink  Sheet-fed machines  Oxydation: Ink is dried by atmospheric oxygen.  IR: Uses expensive IR heat to accelerate oxydation drying  Classic UV: Mercury UV light causes photo-polymerisation to cure the ink  LED-UV: Special LED-UV light causes photo-polymerisation to cure the ink

18 Oxydation drying – good points and bad points  Good points  Most common system, easily understood.  Cost it is low compared to other drying systems  Bad points  Lost time waiting for drying.  Factory floor space needed for drying paper.  Reverse side scratching if drying is not complete.  Need to use troublesome spray powder.  Need to use small stacks on difficult materials/jobs  Good points  Most common system, easily understood.  Cost it is low compared to other drying systems  Bad points  Lost time waiting for drying.  Factory floor space needed for drying paper.  Reverse side scratching if drying is not complete.  Need to use troublesome spray powder.  Need to use small stacks on difficult materials/jobs

19 UV Drying - good points and bad points  Good points  Instant drying  No need for floor space for drying paper.  Easy to turn over and print reverse side  No spray powder so clean press environment  Small stacks not necessary  Bad points  Installation cost and running cost are high  Because heat and ozone occurs, rust-proofing and ducting is needed  Odour and taint problems can happen  Good points  Instant drying  No need for floor space for drying paper.  Easy to turn over and print reverse side  No spray powder so clean press environment  Small stacks not necessary  Bad points  Installation cost and running cost are high  Because heat and ozone occurs, rust-proofing and ducting is needed  Odour and taint problems can happen

20 Principle of UV curing system  Classic UV lamp  Ultraviolet rays between nm are output.  254nm wavelength generates ozone,  Wave length above 400nm generates heat.  Classic UV ink  Using a photo initiator with 220nm-580nm reactivity  LED lamp  Wave lengths of 365nm, 385nm and 395nm are possible.  Manufacturers currently prefer 385nm and 395nm  LED-UV ink  Current photo initiator wavelength 385nm  Classic UV lamp  Ultraviolet rays between nm are output.  254nm wavelength generates ozone,  Wave length above 400nm generates heat.  Classic UV ink  Using a photo initiator with 220nm-580nm reactivity  LED lamp  Wave lengths of 365nm, 385nm and 395nm are possible.  Manufacturers currently prefer 385nm and 395nm  LED-UV ink  Current photo initiator wavelength 385nm

21 UV light emitted by Classic UV Ultraviol et Infra-red High energyLow energy 10nm Electromagnetic wave and x-ray 400nm780nm Visible Light 1mm Radio wave Copyright - eye graphics

22 Merits of LED-UV  LED life at least 15 times more than classic UV lamp  Classic UV lamp nominal 1,000 hours, LED 15,000 hours  LED power consumption approx. 20% of classic UV  Heat generation is low, machine stays cool  Plastic and other difficult substrates have no register problems  Instantaneous on/off  Classic UV start-up 1 minute, cool down 4 minutes  LED life at least 15 times more than classic UV lamp  Classic UV lamp nominal 1,000 hours, LED 15,000 hours  LED power consumption approx. 20% of classic UV  Heat generation is low, machine stays cool  Plastic and other difficult substrates have no register problems  Instantaneous on/off  Classic UV start-up 1 minute, cool down 4 minutes

23 UV light emitted by LED-UV 254nm Ozone occurrence wave length Heat generation As for wave length eye graphics make Wavelength - nm output % Classic UV LED-UV

24 LED-UV tests in Tsukuba

25 Problems of LED-UV  Distance between lamp and substrate +/- 20mm  Lamp housing less than 15mm causes problems with carton.  Must be positioned over a cylinder to be close enough.  UV coating not yet available  LED wavelength (385nm) causes coatings to “yellow ”  LED lamp cost very high (+/- $200,000 for 1 lamp on 29”)  LED lamp life is long, but exchange cost is high ($100,000?).  Distance between lamp and substrate +/- 20mm  Lamp housing less than 15mm causes problems with carton.  Must be positioned over a cylinder to be close enough.  UV coating not yet available  LED wavelength (385nm) causes coatings to “yellow ”  LED lamp cost very high (+/- $200,000 for 1 lamp on 29”)  LED lamp life is long, but exchange cost is high ($100,000?).

26 A system which can cure LED-UVink using just one ozone-freeUVlamp A system which can cure LED-UV ink using just one ozone-free UV lamp LED Black LED Cyan LED Mag LED Yell Ozone less UV lamp The Hybrid UV system proposed by Komori

27 Hybrid UV performance tests in Tsukuba  4 lamps on, 16,000sph printing OK  3 lamps on, 16,000sph printing OK  2 lamps on, 16,000sph printing OK  1 lamps on, 16,000sph printing OK  1 lamp at 50% power, 16,000sph printing OK  4 lamps on, 16,000sph printing OK  3 lamps on, 16,000sph printing OK  2 lamps on, 16,000sph printing OK  1 lamps on, 16,000sph printing OK  1 lamp at 50% power, 16,000sph printing OK

28 UV spectrum comparison of Komori Hyper UV As for wave length eye graphics make 254nm Ozone occurrence wave length Calorificatio n territory Classic UV LED-UV Hybrid UV

29 Advantages of Komori Hyper UV system  Reduced initial cost (opposite of LED-UV)  Less than half price of LED-UV  Reduced lifetime cost of UV lamp (opposite LED-UV)  Lamp life is shorter than LED-UV lamp but exchange cost is cheap,  Power consumption same as LED-UV plus compact power source  Hyper UV15.8kw (lamp 10.2kw and water cooling 4.6kw on 32”).  Heat generation is low  Dryer area + 4-5°  Ozone free  Ozone generation wavelength (254nm) is cut.  Easy to print carton board  Distance between lamp and substrate same as classic UV  Environmentally friendly printing  LED ink has no VOCs  No need for heat blower  Reduction of CO2 emission  Reduced initial cost (opposite of LED-UV)  Less than half price of LED-UV  Reduced lifetime cost of UV lamp (opposite LED-UV)  Lamp life is shorter than LED-UV lamp but exchange cost is cheap,  Power consumption same as LED-UV plus compact power source  Hyper UV15.8kw (lamp 10.2kw and water cooling 4.6kw on 32”).  Heat generation is low  Dryer area + 4-5°  Ozone free  Ozone generation wavelength (254nm) is cut.  Easy to print carton board  Distance between lamp and substrate same as classic UV  Environmentally friendly printing  LED ink has no VOCs  No need for heat blower  Reduction of CO2 emission

30 Development concept of Hyper UV  Komori investigated the best solution to printers in both price and technology wise at this stage, we would like to contribute benefit to printers  Installation and running cost is low, allowing UV development into commercial printing.  Cost advantages between lamp life and exchange cost.  Overcomes a major defects with LED-UV, UV coating, no scratching on carton.  Komori investigated the best solution to printers in both price and technology wise at this stage, we would like to contribute benefit to printers  Installation and running cost is low, allowing UV development into commercial printing.  Cost advantages between lamp life and exchange cost.  Overcomes a major defects with LED-UV, UV coating, no scratching on carton.

31 LS-440 (conventional) Remarks Number of operating days 288 daysPer year Actual operating time 11.5 hours12 hour working Average run3,000 sheetsPer job Production quantity 12.8 jobsPer day Sales price4,000 YenPer edition Ink cost10 YenPer colour /1 s 20% image Electric power92kw Lamp change expense 0 Yen Annual profit26,158,548 Yen LS-440 (H-UV) Remarks Number of operating days 288 daysPer year Actual operating time 11.5 hours12 hour working Average run3,000 sheetsPer job Production quantity 16.6 jobsPer day Sales price4,000 YenPer edition Ink cost28 YenPer colour /1 s 20% image Electric power131kw Lamp change expense 2.2 times change1,500hr life Annual profit27,122,908 Yen964,360 Gain Considering a 30% productivity increase H-UV Profitability - compared to Conventional printing

32 LS-440 (conventional) Remarks Number of operating days 288 daysPer year Actual operating time 11.5 hours12 hour working Average run3,000 sheets Production quantity 12.8 jobsPer day Sales price4,000 YenPer edition Ink generation10 yenPer colour /1s 20% image Electric power92kw Lamp consumption expense 0 Yen Annual profit26,158,548 Yen LS-440 (H-UV) Remarks Number of operating days 288 daysPer year Actual operating time 11.5 hours 12 hour working Average run3,000 sheets Production quantity 15.3 jobsPer day Sales price4,400 YenPer edition Ink generation28 yenPer colour /1s 20% image Electric power131kw Lamp consumption expense 2.2 times change per year 1,500hr life Annual profit30,291,281 Yen4,132,733 gain Considering Productivity + 20% and Sales Price +10% H-UV Profitability - compared to Conventional printing

33  H-UV ink Supplied by TOYO worldwide  World-wide expansion with alternative ink suppliers  Price comparable to regular UV  Coverage 20% more than conventional ink  Better colour hold-out (no dry back)  Superior high gloss coatings  H-UV ink Supplied by TOYO worldwide  World-wide expansion with alternative ink suppliers  Price comparable to regular UV  Coverage 20% more than conventional ink  Better colour hold-out (no dry back)  Superior high gloss coatings H-UV INKS

34  Classic UV  Expensive installation and high running cost  Produces ozone and heat (bad for m/c and environment)  LED-UV  Overcomes a few of the issues with classic UV printing  Expensive hardware, difficult to make a profit.  H-UV  New printing technology using H-UV lamp and H-UV ink  Lots of merit points compared with other UV processes.  Superior printing quality and lowest production costs  Classic UV  Expensive installation and high running cost  Produces ozone and heat (bad for m/c and environment)  LED-UV  Overcomes a few of the issues with classic UV printing  Expensive hardware, difficult to make a profit.  H-UV  New printing technology using H-UV lamp and H-UV ink  Lots of merit points compared with other UV processes.  Superior printing quality and lowest production costs Summary

Copyright  2008 KOMORI Corporation. All Rights reserved. KHS-AI + H-UV, adding Twenty Matching

36  A system which matches a press sheet to a proof within 20 sheets of start-up  No change in quality after 20 th sheet  A system which matches a press sheet to a proof within 20 sheets of start-up  No change in quality after 20 th sheet Twenty Matching - System

37  Commercial sector  Based on target density standards  Using international printing standards  Factory with environment control  H-UV or conventional process inks  Commercial sector  Based on target density standards  Using international printing standards  Factory with environment control  H-UV or conventional process inks Twenty Matching – Target Segment

38 And when we combine KHS-AI, H-UV and Twenty Matching We get ! And when we combine KHS-AI, H-UV and Twenty Matching We get !

39

40 Offset-On-Demand  New business model for offset printers  Competes with digital (P rint O n D emand )  Three 200 copy jobs in 15mins  Only 20 sheets waste (20 matching)  Instant finishing  New business model for offset printers  Competes with digital (P rint O n D emand )  Three 200 copy jobs in 15mins  Only 20 sheets waste (20 matching)  Instant finishing

41 Offset-On-Demand  Can be used on straight or perfecting m/c  Can be used with almost any substrate  More profitable than digital over 400sheets  Combined with near-line finishing equipment  Can be combined with web-to-print  Can be used on straight or perfecting m/c  Can be used with almost any substrate  More profitable than digital over 400sheets  Combined with near-line finishing equipment  Can be combined with web-to-print

42  Thank-you for your attention, (See you soon for the demonstration)