Albert Follens. DRUPA Event - 14 May 2004

Transcription

1 Albert Follens DRUPA Event - 14 May

2 Content Key figures Agfa and Graphic Systems Printing markets Agfa s Pre-press portfolio and strategy Agfa s inkjet printing strategy 1

3 Agfa: a leading imaging company 2003 turnover = 4.2 bn Euros Technical Imaging 40.9% Non-Destructive Testing 4.9% Industrial Imaging 2.5% HealthCare 33.5% Consumer Imaging 20.6% Graphic Systems 38.5% Latin America 4.3% ASPAC* 18.4% NAFTA 26.4% * Including Africa Europe 50.9% 2

4 Graphic Systems 2003 Turnover: 1.6 bn Euros Analog plates 17% Digital plates 32% Nafta 21% Latam 6% 21% Aspac 13% 8% 30% 52% Digital Equipment Analog equipment Graphic film Europe 3

5 Graphic Systems: Key figures in million Euros % Sales Operating result Return on sales 1, % 1, % -10.5% -28.7% The transition to Computer-to-Plate continues, lower turnover due to weak economy, strong Euro and increased price erosion. 4

6 Content Key figures Agfa and Graphic Systems Printing markets Agfa s Pre-press portfolio and strategy Agfa s inkjet printing strategy 5

7 The global printing market 2002:?735 bn Euros per year Equipment 6% Consumables 22% Gravure Digital 12% 12% Other 3% Offset 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

8 Pre-press and the global printing market PREPRESS DELIVERABLES 8 bn Euros per year PREPRESS EXPENDITURE 35 bn Euros per year TOTAL PRINTING MARKET 2002: 735 bn Euros per year 23% Agfa Amortization Plates/Film & Processing 17% Proofing Services 6% 4% 3% Newspaper & Magazines Industrial 12% 12% Commercial 39% 77% 70% 37% Others Labor Packaging & Labels Printing is a mature 735 bn Euros market Pre-press is part of the cost of printing 7

9 Printing market: segments and main technologies (in bn Euros) Technology TOTAL OFFSET FLEXO SCREEN GRAVURE DIGITAL Segments Commercial printing Newspapers and magazines Packaging and label Industrial TOTAL Offset is the predominant technology 8

10 Printed on a press or on a printer? press printer Number copies newspapers CD s forms textbooks office copies Tickets/tags books faxes packaging posters magazines mailings invoices statements letters Officereports commercial artwork wallpaper textile stationary pictures ceramics moneybills certificates Quality 9

11 Industry trends Analog Analog Digital Digital Long Long Runs Runs Craft Craft Short Short Runs Runs More More color color Automated Automated manfacturing manfacturing Product-driven Product-driven market market Solution-driven Solution-driven market market 10 Islands Islands Independent Independent businesses businesses Media Media Specific Specific Workflows Workflows Open Open systems systems Networks Networks Consolidation Consolidation Integration Integration Media Media Neutral Neutral Workflow Workflow

12 Filmsetter Direct-to-film Film Plate Press Digital prepress Evolution Network Work- Platesetter Technology Direct-to-plate Direct-to-press trendsa Plate Press Press Printed product stations Direct-to-paper Digital printing system 11

13 Progression of Digital Printing # prints per site Industrial printer In-house printer Conventionally printed Professional presses Office printer/ copiers SOHO Digitally printed Desktop printer/ copiers low medium high Image quality 12

14 Content Key figures Agfa and Graphic Systems Printing markets Agfa s Pre-press portfolio and strategy Agfa s inkjet printing strategy 13

15 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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17 Graphic Systems - Pre-press Product Portfolio Filmsetter Film Software Plates Computer-to-Film Proofing Workstation Computer-to-Plate Printing Press Platesetter Scanner 16 Agfa offers consumables, equipment and software for analogue and digital workflows

18 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

19 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 Markets: Packaging and newspapers Functionally: Software => Wuxi printing plate factory => Esko-Graphics newspaper customers => Launch of Apogee-X, Delano Strive for cost-, technology- => Lastra acquisition and market leadership in consumables Make the equipment business => increased outsourcing profitable 18

20 Offset plate market Offset plate market = ~440 mio m² in % C-t-P plates Conventional plates decreased ~5% in value compared to previous year; C-t-P plates grow more than 25% per annum. 19

21 Lastra profile Italian manufacturer of printing plates, chemicals and equipment Mainly analogue printing plates, but recently started production of digital plates 6 factories: 4 in Italy, 2 in US Number of employees:? 900 Closure expected in second half of 2004 North America 30% 2003 SALES? 240 MIO EUROS ROW 24% Italy 16% Rest of Europe 30% 20

22 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

23 Market trends in CtP CTP Systems Chemistry-free Process-less systems Improved visible-light and thermal 22

24 Technology leadership in C-t-P Commercial Printers Visible light technology* Platesetter Violet Ortho Xcalibur Thermal X Galileo silver silver Newspapers Polaris photopolymer & silver photopolymer & silver * In a visible light technology, the printing plate reacts to visible light exposure; in a thermal technology, the printing plate is heat sensitive. Agfa offers the full range of available technologies in Computer-to-Plate 23

25 Cost breakdown for an average printer Plates and chemicals Waste Design services Capital investments Paper and ink Prepress consumables take only a small share of a printer's total cost base; 70% of the cost is controlled by the printer, with labor as a significant factor. Labor This cost structure drives the demand for specialised software to increase the efficiency of printers 24

26 Pre-press trends: increasing usage of software Software Solutions Constantly improved and perfecting Colour management Production workflow Print factory process automation tools 25

27 Pre-press trends: Workflow software Client What When How much Where Cost ERP / MIS Workflow Software PRE-PRESS shop floor CtF / CtP / Proofing PRESS shop floor AUTOMATION need of INFORMATION PROCESSES 26 Within PRINTSHOPS Between CLIENT / PRINTSHOP = PROFESSIONAL SERVICES

28 Solution = Product + Professional Service Print Buyer Print Buyer Content Intent Business Processes (Project Management, Estimating, Supply) Customer Service Manufacturing Processes Delivery Pre-press Print Finish 27

29 Content Key figures Agfa and Graphic Systems Printing markets Agfa s Pre-press portfolio and strategy Agfa s inkjet printing strategy 28

30 Graphic Systems: Inkjet Printing Strategy Develop and build a leading position in Industrial Digital Printing SW Become profitable Nbr. 1 in Industrial Inkjet Digital Printing Market Equipment + Service 3.0 Consumables - Ink & Media bn 29

31 Technology of Choice: Inkjet Compact print engines allow direct integration in manufacturing and converting process 30

32 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

33 Print speed (m2/hr) Agfa s inkjet Strategy dotrix 2500 PACKAGING DECORATION Partnership with Thieme 500 SCREEN PRINTING WIDE FORMAT INDUSTRIAL GrandSherpa Universal WIDE FORMAT POSTER WIDE FORMAT PROOFING :SherpaProof Print quality 32

34 33 Graphic Systems - Pre-press to press

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