DOWJONES

The Future of Inkjet Printing

Paul Cousineau, Dow Jones

Chicago, IllinoisHyatt Regency

September 7, 2013

INKJET PRINTSOLUTIONMANUFACTURERS

• Canon/Oce• Fuji• HP• KBA/RRD• Kodak• Ricoh• Screen• TKS• Xerox• Others

The physical act of printing is solved, there are a number of options available.

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ELECTROSTATIC PRINT SOLUTIONMANUFACTURERS

• Canon/Oce• Fuji• HP• KBA/RRD• Kodak• Ricoh• Screen• TKS• Xerox• Others

The physical act of printing is solved, there are a number of options available.

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INKJET FINISHING

• Horizon• Hunkeler• manroland• Muller• TKS• Others

The physical act of finishing is solved, there are a number of options available.

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WHAT IS INKJET BEING USED FOR?

• Transactional ~ 40%• Direct Mail ~ 32%• Books ~ 22%• Other ~ 6%

And at a very small percentage:• Newspapers less than 1%

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THE ECONOMIC PROBLEM

ELECTROSTATIC• Petroleum Based Toner• Cut sheet• Web Fed• Relatively Slow• Handles Variable Data• Many Machines• Click Charge Model

INKJET• Water Based Inks• Cut sheet• Web Fed• Fast• Handles Variable Data• Few Machines• Click Charge Model??

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THE ECONOMIC PROBLEM

OFFSET• Oil Based Inks• Cut sheet• Web Fed• Fast• No Variable Data• Many Machines• Standard Cost Model

INKJET• Water Based Inks• Cut sheet• Web Fed• Fast• Handles Variable Data• Few Machines• Standard Cost Model??

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THE INKJET ECONOMIC PROBLEM

• Cost of Capital– Supplied by the Machine Manufacturers

• Equipment• Installation• Operator Training

– Supplied by the Printer• Building• Site Prep/Environmental• Staff

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THE INKJET ECONOMIC PROBLEM

• Cost of Operation– Provided by the Machine Manufacturer

• Service/Support• Inkjet Heads are a Consumable (3,000+ hours piezo)• Water Based Ink (97-98% water)• Clicks (based on letter size per side)• Substrate

– Provided by the Printer• Staff• Overhead• Substrate 9

PROCESS CROSSOVER

10Run Length

Qua

lity

Toner

Copier

Web Offset

Sheet OffsetWeb

Inkjet

WHAT IS THE POTENTIAL FOR INKJET?

• Replace several Electrostatic machines with one faster Inkjet machine

• Short to Medium Run Offset• Flexibility of format• High speed variable content• Multiple product formats/100% press utilization

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THE PROBLEM

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Low Medium Low Medium Medium High High

Cost Models

Paper Supplies, MaintenanceLabor, Plant Capital

POTENTIAL FOR INKJET AS A MAJOR PROCESS

• WHEN the economics are scalable • WHEN at breakeven or better than OFFSET for

short and medium runs• WHEN Margin is available for the printer

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