The Road to Document Imaging in South Africa Chelsea Tucker  Marie LaRiviere  Jayana Cali  JJ Mulwanda  Benjamin Skidmore

 What: Pursue a market seeking subsidiary in South Africa (RSA), providing document imaging services to government and healthcare entities  Political: RSA is a democracy that is friendly to foreign investors and looking to develop economically  Independent Central Bank: Independent yet influenced by ruling party. Still, sufficient degree of policy stability  Economic: Growing economy; improving infrastructure; expanding from summer 2010 World Cup preparations  Currency: T he Rand is free floating. This implies currency risk, but historic valuation trends make currency risk important but not preventative for entry South Africa FDI Assessment: Go

Industry Competition: Moderate/ High Saturation low within S. Africa Kodak competes on price, customer service, and quality Many technologically advanced competitors could take market share Supplier Power: Low/Moderate Threat of Substitutes: Low Buyer Power: Moderate Potential Entrants: High Potential Entrants  Low saturation rate will attract entrants  Kodak has first mover advantage versus US entrants  Various local players already in the market Buyer Bargaining Power  Kodak has a history of strong relationships with clients  Political risks with foreign investment  Economic risk with recession and potentially low demand Supplier Bargaining Power  Kodak has a strong brand and global distribution network  Kodak is susceptible to supplier risk due to high level of outsourcing Threat of Substitutes  Traditional document storage: filing  Option to use a Kodak Independent Software Vendor or Reseller Porter’s Five Forces Analysis

Strong South African Market Potential Overall market related risk: LOW Current saturation level: LOW Growth potential: HIGH The Digital Imaging Market

5 P&L CategoryCumulative 8 Year Forecast Key Assumptions Revenue$113.5 Million  $0.5 Billion in total market size  Kodak share of market beginning at 0.5% in year 1 and growing to 4% in year 8 Gross Margin$32.7 Million (28.9% Margin)  Existing Kodak Document Imaging Business Unit Gross Margins Selling, General & Administrative Expenses $20 Million  Starting with existing Kodak Business Unit expense composition as a % of revenue with annual improvements  Initially offset by additional expenses related to set up Earnings Before Interest & Taxes (EBIT) $5.6 Million (5% Margin)  Continued investment in R&D tied to revenue growth (6.3% of revenue) Net Income$3.8 Million (3.3% Margin)  33% Foreign business tax rate We developed a range of projections based on high and low end expectations. The following is our conservative (low end) eight year estimate of potential performance Financial Considerations/Projections

6 Financial  Economic translation risk  Intellectual property risk  Currency exchange rate fluctuations  Market share growth estimations  HIV/AIDS pandemic Key Risks to Achieving Financial Goals Political & Technology  Political/Corruption  Internet  Recurrence of Electricity Crisis  Human Capital Flight  Scale Economies  Process Improvements As in all new business ventures, an overarching risk is one of Execution: Even the best plans can’t bring themselves to fruition - if we can’t execute the plan, we will not be successful in this Emerging Market!