This presentation was delivered at the 2012 Global Channel Partners Summit, which was located at Graph Expo in Chicago.

1. An IT Strategies Perspective, GraphExpo 2012
WIDE FORMAT PRINTERS:
A HIDDEN PROFIT POOL
1 www.it-strategies.com

2. 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 www.it-strategies.com

3. 2011 U.S. Advertising Spending - $M
Wide Format Graphics is a
2011 U.S.
Advertising
Spending - $M
TV $68,000
Direct Mail $50,000
$10B market
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
Total: $205 billion
3 www.it-strategies.com

4. Marketing Dollars Will Continue to
Shift to Digital
Forecast Growth 2010-2015 Local Newspaper
Local TV
-4.0%
Wide Format Graphics is a
Local Radio
2.3%
Outdoor
0.4%
Growing market
4.9% Local Digital/Online
7.6% National TV
4.1%
Magazines
-2.7%
National Digital/Online
7.8%
2.8% Network and Satellite
Radio
-6.2%
National Newspaper
2.1%
Direct Mail
-5.7%
10.8% Directories
Source: Magna, Inc.
Direct Online
IT Strategies projection on POP: 11% growth
www.it-strategies.com

5. Impact of Electronic Technologies on
Document Print Volumes
Prospectus/annual report
Journals
Wide Format Graphics Not
Newspapers
Books College text books Trade books K-12 text books
Under Foresseable Threat of
Catalogs
Directories
Magazines
FSI/Coupons
Electronic Substitution
Marketing collateral
Transaction statements
Direct mail
2011 2015 2018 2024
Source: PRIMIR’s 2011 Impact of Electronic Technologies on Print Study
Legend: Significant impact not yet felt
under way
5 www.it-strategies.com
has occurred

6. US Wide Format Graphic Printer
Units by Ink Type 2011-2016
CAGR
2011-2016
-1%
6%
6%
6 www.it-strategies.com

7. US Wide Format Graphic Printer by
Hardware Revenue - $M 2011-2016
CAGR
2011-2016
6%
5%
-1%
7 www.it-strategies.com

8. Value
High
Educate Your WF Graphics
Value
Customers About Ink Types
Low High
Ink/Substrate Range
8 www.it-strategies.com

9. Applications
9 www.it-strategies.com

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

11. Wide Format Digital’s Enduring
Value as a Local Market
Global WFPSP sharesby site count 2011 est. 375,000 Analog to
Digital
Independent Sign Other
Shop 5.43%
Evolution
1.05%
Photo Lab
Commercial Printer 2.58%
Screen Printer 20.13% Digital Color
24.04%
Print Shop/
service bureau
5.30%
Quick Printer & Exhibit Builder
Sign Franchise 0.34%
Repro Shop 38.60%
2.54%
www.it-strategies.com

12. Wide Format Graphics:
Digital & Analog Share a Divided Market
Analog
Screen
20%
Digital
34%
Analog
Offset
46%
Total Print Volume: 67 Billion Square Feet WW, 2011
www.it-strategies.com

13. The Efficiency Squeeze:
Staff Requirements Up as Print Volume Decreases
3 operators 11 operators 2011 2015 2018
6 operators
Set-up
time/job/minutes 20 20 20
Jobs/Day 25 50 100
Total Set-up time
(hours) 8 17 33
Hours/Staff for
set-up 3 3 3
Staff needed 3 6 11
jobs/day 25 50 100
Ave. run length 2,500 1,500 500
total print volume 62,500 75,000 50,000
13 www.it-strategies.com

14. Go Forth, Help You!
Thank Your
Customers Invest in the
boer@it-strategies.com
Growing Wide 781-709-1633
Direct dial
Format
Graphics Business
14 www.it-strategies.com