Slide 1: DRUPA Event - 14 May 2004
Albert Follens DRUPA Event - 14 May 2004 2004 0
Slide 2: Content
Content ? Key figures Agfa and Graphic Systems ? Printing markets ? Agfa’s Pre-press portfolio and strategy ? Agfa’s inkjet printing strategy 1
Slide 3: Agfa: a leading imaging company
Agfa: a leading imaging company 2003 turnover = 4.2 bn Euros Technical ASPAC* Imaging 18.4% Consumer 40.9% Latin HealthCare Imaging America 33.5% 20.6% 4.3% Europe 50.9% Graphic Systems NAFTA 38.5% 26.4% Non-Destructive Testing 4.9% Industrial Imaging 2.5% * Including Africa 2
Slide 4: Graphic Systems 2003
Graphic Systems 2003 Turnover: 1.6 bn Euros Digital plates Latam Aspac Analog Nafta 6% 32% 21% plates 21% 17% 13% 30% 52% 8% Digital Graphic Equipment film Analog Europe equipment 3
Slide 5: Graphic Systems: Key figures
Graphic Systems: Key figures in million Euros 2003 2002 % Sales 1,622 1,813 -10.5% Operating result 90.0 126.3 -28.7% Return on sales 5.5% 7.0% ? The transition to Computer-to-Plate continues, lower turnover due to weak economy, strong Euro and increased price erosion. 4
Slide 6: Content
Content ? Key figures Agfa and Graphic Systems ? Printing markets ? Agfa’s Pre-press portfolio and strategy ? Agfa’s inkjet printing strategy 5
Slide 7: The global printing market
The global printing market 2002: ?735 bn Euros per year Equipment Consumables Other Offset Digital 6% 12% 3% 22% Gravure 12% 44% 72% Screen 12% 17% Operations Flexo Offset represents 44% of the global printing market and is expected to grow at ±2% per annum 6
Slide 8: Pre-press and the global printing market
Pre-press and the global printing market PREPRESS DELIVERABLES PREPRESS EXPENDITURE TOTAL PRINTING MARKET 8 bn Euros per year 35 bn Euros per year 2002: 735 bn Euros per year Proofing Amortization Services Agfa Industrial Commercial Plates/Film & 6% 4% 3% 12% Processing Newspaper & 23% Magazines 39%
Slide 9: Printing market: segments and main technologies
Printing market: segments and main technologies (in bn Euros) Technology TOTAL OFFSET FLEXO SCREEN GRAVURE DIGITAL Segments Commercial printing 290 170 5 15 25 70 Newspapers and magazines 85 75 5 - - - Packaging and label 270 70 105 20 65 5 Industrial 90 10 10 50 - 10 TOTAL 735 325 125 85 90 85 Offs
Slide 10: Printed on a press or on a printer?
Printed on a press or on a printer? pr es pr s newspapers books commercial int moneybills er artwork magazines CD’s packaging textile forms Number wallpaper certificates posters copies textbooks ceramics mailings office copies Office- reports invoices Tickets/tags statements stationary faxes picture
Slide 11: Industry trends
Industry trends Analog Analog Digital Digital Short Short Runs Runs Long Long Runs Runs More More color color Automated Automated Craft Craft manfacturing manfacturing Product-driven Product-driven market market Solution-driven Solution-driven market market Open Open systems systems Islands Islands
Slide 12: Technology trends
Technology trends Digital prepress a Film- Film- setter setter Plate- Direct-to-film Film Film Plate Plate Press Press Evolution Plate- Direct-to-plate Plate Press setter Plate Press setter Printed Network product Direct-to-press Press Press Work- stations Digital Digital Direct-to-paper printing pr
Slide 13: Progression of Digital Printing
Progression of Digital Printing # prints per site Industrial Professional Conventionally printer 2010 presses printed 2000 1990 In-house Office printer/ printer copiers Digitally printed Desktop printer/ SOHO copiers Image low medium high quality 12
Slide 14: Content
Content ? Key figures Agfa and Graphic Systems ? Printing markets ? Agfa’s Pre-press portfolio and strategy ? Agfa’s inkjet printing strategy 13
Slide 15: Graphic Systems: Strategy
Graphic Systems: Strategy A leading solutions provider in pre-press, offering consumables, equipment and software Entering the growth market of industrial inkjet printing 14
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Slide 17: Graphic Systems - Pre-press Product Portfolio
Graphic Systems - Pre-press Product Portfolio Filmsetter Plates Software Film Computer-to-Film Proofing Work- station Computer-to-Plate Printing Press Platesetter Scanner Agfa offers consumables, equipment and software for analogue and digital 16 workflows
Slide 18: Pre-press market trends
Pre-press market trends ? Analog peaked in 1999 ? Now declining ±15%/yr ? Growth in CtP ? 36% of total market in 2003 ? Expect >50% in 2007 ? Price pressure continues ? Imaging Systems in consolidation ? 1 CtP replaces up to 4 CtF ? Strong regional differences 17
Slide 19: Graphic Systems: Strategy in Pre-press
Graphic Systems: Strategy in Pre-press Agfa is a leading supplier of consumables, equipment and software in the mature pre-press market ? Concentrate on higher growth segments: ? Regionally: Asia => Wuxi printing plate factory ? Markets: Packaging and newspapers => Esko-Graphics newspaper customers
Slide 20: Offset plate market
Offset plate market Offset plate market = ~440 mio m² in 2002 C-t-P plates 30% Conventional plates decreased ~5% in value compared to previous year; C-t-P plates grow more than 25% per annum. 19
Slide 21: Lastra profile
Lastra profile ? Italian manufacturer of 2003 SALES ? 240 MIO EUROS printing plates, chemicals Italy and equipment North 16% America ? Mainly analogue printing 30% plates, but recently started production of digital plates ? 6 factories: Rest of 4 in Italy, 2 in US Europe ? Number of employees: ? 900
Slide 22: Lastra acquisition: rationale
Lastra acquisition: rationale Lastra + Agfa: ? Increased market coverage from low end to high end ? Obtain cost leadership in printing plates ? Large cost and revenue synergies ? Accretive from first year 21
Slide 23: Market trends in CtP
Market trends in CtP CTP Systems ? Chemistry-free ? Process-less systems ? Improved visible-light and thermal 22
Slide 24: Technology leadership in C-t-P
Technology leadership in C-t-P Visible light technology* Thermal Platesetter Violet Ortho Commercial Printers Xcalibur X Galileo silver silver Newspapers Polaris photopolymer photopolymer & silver & silver * In a visible light technology, the printing plate reacts to visible light exposure; in a the
Slide 25: Cost breakdown for an average printer
Cost breakdown for an average printer Plates and chemicals Waste 1 Design services 10 Paper and ink ? Prepress consumables take 13 31 only a small share of a printer's total cost base; ? 70% of the cost is controlled 20 by the printer, with labor as Capital 25 a significant factor. investments Labor
Slide 26: Pre-press trends: increasing usage of software
Pre-press trends: increasing usage of software ? Software Solutions ? Constantly improved and perfecting ? Colour management ? Production workflow ? Print factory process automation tools 25
Slide 27: Pre-press trends: Workflow software
Pre-press trends: Workflow software Client ? What ? When ERP / MIS ? How much ? Where ? Cost Workflow Software PRE-PRESS shop floor PRESS shop floor CtF / CtP / Proofing AUTOMATION need of INFORMATION PROCESSES ? ? Within PRINTSHOPS Between CLIENT / PRINTSHOP = PROFESSIONAL SERVICES 26
Slide 28: Solution = Product + Professional Service
Solution = Product + Professional Service Print Print Buyer Buyer Content Intent Business Processes (Project Management, Estimating, Supply) Customer Delivery Service Manufacturing Processes Pre-press Print Finish 27
Slide 29: Content
Content ? Key figures Agfa and Graphic Systems ? Printing markets ? Agfa’s Pre-press portfolio and strategy ? Agfa’s inkjet printing strategy 28
Slide 30: Graphic Systems: Inkjet Printing Strategy
Graphic Systems: Inkjet Printing Strategy Develop and build a leading 2010 position in Industrial Digital Printing SW 1.0 Equipment + Service 3.0 Become profitable Nbr. 1 in Industrial Inkjet Digital Printing Market Consumables - Ink & Media 6.0 10 bn € 29
Slide 31: Technology of Choice: Inkjet
Technology of Choice: Inkjet Compact print engines allow direct integration in manufacturing and converting process 30
Slide 32: Technology of Choice: Inkjet
Technology of Choice: Inkjet ? Inkjet better for graphic arts than dry-toner ? Inkjet prints “contactless” on a large range of substrates: ? Water-based ? UV-curable inks ? Solvent ? Oil-based inks. 31
Slide 33: Agfa's inkjet Strategy
Agfa’s inkjet Strategy Print speed (m2/hr) dotrix 2500 PACKAGING Partnership DECORATION with Thieme 500 SCREEN PRINTING GrandSherpa 250 Universal WIDE FORMAT INDUSTRIAL :SherpaProof 50 WIDE FORMAT POSTER WIDE FORMAT PROOFING Print quality 32
Slide 34: Graphic Systems - Pre-press to press
Graphic Systems - Pre-press to press 33
Slide 35: 2004
2004 34