This document discusses wide format printing and summarizes the following key points: 1. Wide format graphics is a $10 billion market that is growing as marketing dollars continue to shift to digital media. Wide format printing is not under threat of electronic substitution like other print media. 2. Digital wide format printer unit sales and revenue are expected to see compound annual growth rates of around 6% from 2011-2016. 3. UV-curable flatbed printing specifically continues to grow, with the retail value of UV-curable wide format output growing at a 9% compound annual rate. 4. Wide format printing provides enduring value as a local commercial printing solution for sign shops, print shops, and other

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WIDE FORMAT PRINTERS:
A HIDDEN PROFIT POOL
An IT Strategies Perspective, GraphExpo 2012
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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
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3. www.it-strategies.com
2011 U.S. Advertising Spending - $M
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Total: $205 billion
2011 U.S.
Advertising
Spending - $M
TV $68,000
Direct Mail $50,000
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
Wide Format Graphics is a
$10B market

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

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

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US Wide Format Graphic Printer
Units by Ink Type 2011-2016
6
6%
6%
-1%
CAGR
2011-2016

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US Wide Format Graphic Printer by
Hardware Revenue - $M 2011-2016
7
6%
-1%
5%
CAGR
2011-2016

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Value
8
Value
Ink/Substrate Range
Low High
High
Educate Your WF Graphics
Customers About Ink Types

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

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

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Wide Format Graphics:
Digital & Analog Share a Divided Market
Digital
34%
Analog
Offset
46%
Analog
Screen
20%
Total Print Volume: 67 Billion Square Feet WW, 2011

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The Efficiency Squeeze:
Staff Requirements Up as Print Volume Decreases
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2011 2015 2018
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
3 operators 6 operators 11 operators

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