For Long Term

Growth, Consider

Bringing Wide

Format and Cut

Sheet Under The

Same Roof!Ricoh Commercial and Industrial Printing

we assess • we implement • we deliver

Dan JohansenMarketing Manager,

Graphic Arts Wide Format

Ricoh USA, Inc.

Today we’ll

review:1. The State of WF - Growth, Opportunity and Real World Potential

2. Wide Format applications and markets that will grow your portfolio and profit

3. Why adding WF is additive to your business

4. Expanding your current customer’s wallet share while attracting new customers

5. Pitfalls to avoid

6. How finishing and installation is a critical link in delivering wide format products

7. What kind of WF device can be best for your business

2

Dan Johansen

Your

Presenter

Boston Based

25 Years in CP and WF

Founding Member First WF Shop in NE

Recent GM multi-location Sign and WF

printer

Joined Ricoh 2017

3

The State of the State

Let’s Face It. Declining margins continue to be a problem in CP. Maybe not for all, but

for many.

We all need to identify opportunities to grow

• Margins

• Wallet Share

• Customer Base

Perhaps - there’s a great way to positively impact all of these.

4

The news isn’t so bad, but…

Increase by more

than 10%

Increase by 1-

10%

Remained

flat- 0%

increase

Decreased by

more than 10%

Decreased by

more than 10%

0%

20%

40%

60%

80%

Expected 2017

Actual 2016

Source Caslon

5

6

You’re not just a printer anymore….

Advertising Branding Collateral

Cross-Media Direct Mail Promo

Products

Outsourcing Signage Websites

What Can You Do?

• Expand Capacity

▪ Invest in Equipment/Software

▪ Increase Efficiency

▪ Grow Share of Current Applications

• Expand Applications

▪ Enhanced/Differentiated Products

▪ New Categories

• Expand Offerings

▪ Ancillary Services

7

Wide Format is a Growth Engine

• Indoor/Outdoor signage

• POP

• Fleet Graphics

• Trade Show Graphics

• Banners

• Décor (wall covering/flooring)

• Corporate environments

• Short run offerings with sizes cut sheet

can’t meet

8

Wide Format is a Growth Market

• Good growth and margins

• Variety of applications and competitors

• Many service opportunities, demands

2012 2017

$16.1

$22.3

Retail Value of Wide

Format Digital Print ($B)

6.7% CAGR

Source: InfoTrends’ Wide Format Service

9

Wide Format Volumes Growing

ProvidersOver the last year, in terms of volume

that you sell, would you say

that your wide format business…

7.5% Decreased

18.9% Stayed about the same

73.6% Increased

BuyersWhat is the outlook now for wide

format graphics purchasing at your

company over the next 12 months?

63.8% There will be no change

4.8% It will decrease

31.4% It will increase

N = 526 Wide Format Buyers

Source: Wide Format Printing Critical Element in the

Communications Mix, InfoTrends

N = 53 Print ProvidersSource: Emerging Trends Wide Format, InfoTrends

10

MaterialsInk & Toner

Functional & IndustrialGraphic Arts

Paper Paper/Board/Plastic Industrial Substrates Objects

WF Application Opportunities

Addressing

CAD

Photo

Promotional

Publishing

Signs &

Displays

Transactional

Brand Protection

Coding/Barcodes

Consumer Labels

Corrugated

Direct-to-Shape

Flexible

Packaging

Folding Cartons

Ceramics

Glass

• Architectural

• Automotive

• Consumer

Electronics

• Consumer Goods

Laminates

• Wall/Floor

Coverings

• Wood

Textiles

3D

• Prototypes

• Tooling /

Manufacturing

Printed Electronics

• Semiconductors

• Displays

• Solar Panels

Biomedical

GRAPHIC

COMMUNICATION

$700B

PACKAGING

$400BDECORATIVE

$477B

FUNCTIONAL

$18B*(*Inkjet

Related)

11

12

WF = Major Marketing Spend Survey

What is your company’s total annual spending on wide format prints as a

percentage of your company’s total marketing budget?

IndustryShare of Marketing Budget Spent on

Wide Format

Hospitality 19.9%

Events 17.7%

Entertainment/Amusement 16.5%

Advertising/Media 15.4%

Retail 14.9%

Healthcare 14.5%

Source: Wide Format Printing: A Critical Element in the Communications Mix, InfoTrends 2013

13

Main Objectives of WF Graphics

57.4%

Promote products/services

at point-of-purchase

52.9

Presentation

materials/displays

45.6%

Outdoor advertising

44.7%

Indoor signage/indoor decor

for seasonal promotions

36.9%

Promote products/services

at other locations

35%

Provide product/service

information

22.6%

Provide directional

information

4.9%

Other

N = 526 Wide Format Buyers

Source: Wide Format Printing: Critical Element in the Communications Mix, InfoTrends 2013

Three Responses Permitted

14

Volume Driven by Applications

Fine Art Vehicle Wraps Backlits Outdoor Signage

Expanded CP

ProductsSignage Wall Décor Specialty

15

Avg Spending by ApplicationB

an

ners

Poste

rs

Sig

ns

Pho

togra

phy

PO

P d

isp

lays/s

ign

s

De

cals

Bill

board

s

Pre

senta

tions

Win

dow

Gra

phic

s

Ba

cklit

dis

pla

ys

Fla

gs

Fin

e a

rt w

ork

Packa

gin

g s

am

ple

s

Veh

icle

gra

phic

s

Flo

or

gra

phic

s

Maps

Textile

s (

so

ft…

Dra

win

gs…

Co

mm

erc

ial/D

om

…

Veh

icle

wra

ps

Pro

ofing

/co

mposi…

Ind

ustr

ial…

Top 10

Wide Format: It’s Where the

Consumer Is!

Time + Place

Present + Engaged

16

Location Location Location!

17

WF = Integral to Marketing

Brand Equity

Brand Recognition

Long-Term Awareness

Marketing Support

Cost per Impression

18

Benefits The Customers

• Easier to find and locate products,

companies or services

• Easier to distinguish between

products

• Garner knowledge about

product(s) and make informed

purchasing decisions

• Ability to find a product based on

personal preference or

requirements

19

Benefits The Customers

• Customers can potentially make

an informed purchase without the

assistance of a sales associate

• Cleaner, more organized POP

materials/displays allow for

quicker stocking of shelves

• Potential for increased revenue

• Ability to guide customers to

higher-grossing products/common

sellers

Applications

Baggage Belt Gulfport-Biloxi Airport

Bus Wrap Copenhagen Zoo

WF is Everywhere!

Not just “Wide” Format…

…small stuff too!

Learn to see like this:

37

Commercial Printers

Moving into Wide Format

38

As Big As Quad Graphics

39

As Small as PIP Peoria

40

You’re Not Alone

8.5%

10.0%

10.7%

13.6%

35.0%

45.6%

19.9%

23.5%

26.5%

53.9%

27.2%

19.4%

39.8%

34.2%

37.9%

8.3%

11.9%

11.4%

31.8%

32.3%

25.0%

24.3%

26.0%

23.5%

0% 20% 40% 60% 80% 100%

Digital Color High-speed Roll-fedPrinter/Press - INKJET

Digital Color High-speed Roll-fedPrinter/Press - TONER

Digital Color Wide Format Printer

Digital Color MFP/Copier2

Digital Color Cut-Sheet Inkjet Printer

Digital Color Cut-Sheet Toner-basedPrinter/Press

Planned for 2014 Considering in 2015 Considering in 2016 or later None

N = 412 Print Service Providers

Source: Production Print Services in North America: Understanding Industry Transformation, InfoTrends 2014

The Value Proposition is Clear

• Wide Format is AFFORDABLE

• It’s a natural extension of your current offerings to leverage

existing relationships

and expand your customer base

• WF technology opens the door for new print applications

• With a strong economy, marketing budgets increasing

• Average ROI of WF Solution is in MONTHS

• Average GM contribution is 2-10X of cutsheet in many

markets41

Delivering Growth

42

Trends Driving Demand

for Digital WF

Demand trends are driving the need for digital production

• Faster cycle times (61.5% of large format jobs are produced in 2 days or less*)

• Shorter runs

• Web-to-print/Online ordering

New applications require new capabilities

• Personalization and versioning

• Expanded range of substrates for digital devices

• Cross-media integration to enhance customer experience, engagement, and interaction

43

Digital WF Printing Trends

What are the TOP THREE common turnaround times that you require for

wide format graphics printing jobs?

44

11.2%

18.6%

19.4%

20.3%

31.9%

41.8%

43.7%

43.7%

0% 10% 20% 30% 40% 50%

Providerproducesimmediately

WithinthesamedaythatIplacetheorder

4businessdays

>1week

5businessdays

3businessdays

2businessdays

24hours

Turn Speed = Capture

N = 526 Wide Format BuyersSource: Wide Format Printing: Critical Element in the Communications Mix, InfoTrends 2013

73.5% turn in 24 Hours or Less

How many wide format prints per order do you typically purchase?

45

Smaller Orders Sizes

28%

49%

23%

16%13%

9%12%

7%8%5%

5% 4%5% 4%6% 6%

0%

20%

40%

60%

80%

100%

2011 2013

200+printsperorder

101to201

51to100

31to50

21to30

11to20

6to10

<5printsperorder

Mean Number of Prints

36.6 30.6

Base = Wide Format Buyers

Sources: Who Buys Wide Format?, InfoTrends 2011, Wide Format Printing: A Critical Element in the Communications Mix,

InfoTrends 2013

74% of orders are 20 or fewer prints

47

Getting Into Wide Format

✓ We’re all-in

✓ Doing a little bit. You know…

✓ In the mix. A little in-house. A mix of outsourcing

✓ Nope. I don’t even know where to begin

✓ I’m thinking about it…

48

Which One Are You?

Majority of CP’s have nothing more than

a “narrow” wide format inkjet device.

But “I’m thinking about it…”!

Here’s the good news and the bad news.

You’re not alone.

49

Where does that put you?

“Statistically, well under 10% of

commercial printers offer wide format

graphics printing services today. It is key

to get into a given local market before

competing commercial printers do.”

For those that do, he notes, “expanding to

include wide format graphics printing is

among the lowest-risk and highest

incremental profit opportunities

accessible.”Marco Boer, IT Strategies/Whatheythink.com

Boer, Marco. Wide Format Graphics Printing: The Numbers Speak Loud and Clear for those with the First Mover Advantage, WhatTheyThink.com, 50

To understand this, you have to ask:

• Who are my customers and I meeting all of

their needs?

• Where are they going for WF and who is my

local competition?

• What drives their WF purchasing decisions?

51

How does Wide Format

relate to my business?

Consider your local area

5-10 miles around your location

• Corp offices

• Retail

• Restaurants

• Hotels

• Schools

• Local Gov’t

All buying Wide Format from someone!

52

How does Wide Format

relate to my business?

53

So you’re ready to expand your

business with Wide Format…

Now What?

54

+ Products – More than just inkjet

+ Services – Finishing, Installation?

+ Integration into your existing business

55

Products & Technology

56

Wide Format Technology

57

Wide Format Technology

Wide Format Technology

What to consider –

WF Products1. Who are your customers?

2. Are you staffed to cross train or new hire?

3. What do you need to print on?

4. How large is large format for you?

5. Do you need white or specialty inks?

6. Device Maintenance

7. Flat / Roll / Hybrid

8. Workflow integration

9. How will you Finish?

59

Roll To Roll Printers• Variety of flexible media

• Price points from $5k-$500k

• Options for inks based on need

• Basic Aqueous, Solvent/Eco, UV, Latex

• Broad group of products and options

60

Roll To Roll Printers

Flatbed Printers• Designed for primarily rigid substrates

• Some have Roll option

• Ease of use for DS printing

• Large Footprint

• Ideal for heavy board use

• Real Estate

• Packaging

• Odd size/shape substrates

62

Flatbed Printers

Hybrid Printers• Both RtR and Flatbed production

• Extremely versatile

• Ease of use

• Quick substrate changeovers

• Ideal for broad range of applications and diverse customer mix

64

Hybrid Printers

Finishing Products• An integral part of your mix and often thought of last

• Virtually everything WF needs to be finished

• Adds add’l value to your offering

• Huge benefits to do in-house

66

Finishing Products

Wide Format is an investment

that pays for itself quickly

69

70

Product Type Pro 16H LED

Product Cost (Purchase Price) $129,995.00

Local Currency

Term of financing (months) 60

Annual Percentage Rate 6%

Monthly Payment $2,513.17

Ink & Media Cost Per Month $5,324.94

ROI Breakdown

Printable ft2 or m2 per HR CMYK 200 1 Day 1 Month

Printable ft2 or m2 per HR CMYK + White 65

Productivity (time loss for loading, etc…) 10%

Yeild Rate 90%

Throughput per ft2 or m2 per Hour 140.13

Printing Hours per Day 2 Printable ft² 280 5,605

Total ft2 or m2 Printed per Day 280.26 Revenue 1,682 33,631

Work Days in Month 20

Total ft2 or m2 Printed per Month 5605.20

Average Sale Price ft2 or m2 $6.00

Ink Cost per ft2 or m2 $0.15

Revenue per Month $33,631.20

BEP (Break Even Period) Months 4.6

ROI (by Month, Simple) 1126%

ROI Example - Wide Format

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1 Day 1 Month

Revenue by Period

Printable Area

Revenue

Other Considerations

• Product Focus

• Local Market Pricing

• Needs of current customers

• Attracting new customers

71

Understanding WF

Revenue Opportunities• An integral part of your mix and often thought of last

• Virtually everything WF needs to be finished

• Adds add’l value to your offering

• Huge benefits to do in-house

72

Other Opportunities

for WF Related Revenue• Installation Services

• Local Permitting

• Logistics/Distribution

Wholesale work for regional shops (at your discretion)

73

Key resources

to support you• WF technology suppliers

• WF Consumable suppliers*

• Regional industry groups (PIA, etc...)

• National groups (SGIA, ISA)

74

75

Printed Examples and Substrates

Open Discussion

76

Wide Format Portfolio

With A Full And Diverse Portfolio, Ricoh Wide

Format systems deliver digital innovation to

help your business grow:

• Roll To Roll, Flatbed and Hybrid inkjet printers

• Finishing products for lamination and cutting

• Professional Services

• Service and Support

COLOR

RICOH Pro L4130/L4160

Mimaki JFX200/JFX500

RICOH MP CW2201SP

EFI H1625 LED

EFI Pro 16H

77

Your business.

Our leadership.

A world of

possibility.

Embracing change is vital to your business success.

Let’s meet it head on. We’ll deliver more value and added services to achieve greater

“wallet share.”

We can help you expand your customer base with new, higher margin products.

79

Wide Format – Opportunity Abounds!