FUJIFILM GRAPHIC SYSTEMS UPDATE SGIA SPIRE 2018

FEBRUARY 19, 2018

SGIA SPIRE 2018

INTRODUCTIONS: Jason Kammes Manager Corporate Accounts

Brent Moncrief Vice President Strategic Marketing & Brand Management

SEGMENT ANALYSIS: SGIA SPIRE 2018

NEWSPAPER SIGN & DISPLAY COMMERCIAL PACKAGING IMPRINTING

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

MACRO: mature/declining

SOURCE: “What They Think Economics & Research Center December 2017 Webinar” , Author Dr. Joseph Webb

Print’s role in marketing mix continues to decline!▸  Marketers preference for digital and mobile marketing vs. print ▸  Reduction in brick & mortar retail locations impacting commercial, newspaper and sign & display segments ▸  Digital signage utilization growing YOY ▸  Growing uncertainty of value of packaging to CPG’s as shopping and buying continues to shift to online

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

SOURCE: “What They Think Economics & Research Center December 2017 Webinar” , Author Dr. Joseph Webb

▸  NA decline of 13,000 print service providers since 2001, a 32% reduction

▸  NA decline in employment of 18,000, a 45% reduction ▸  Result of consolidation

AND increase in digitization and automation

MACRO: mature/declining

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

What’s next?

SOURCE: “What They Think Economics & Research Center December 2017 Webinar” , Author Dr. Joseph Webb

MACRO: mature/declining

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

MACRO: mature/declining

SOURCE: “What They Think Economics & Research Center December 2017 Webinar” Author Dr. Joseph Webb

SEGMENT ANALYSIS: [COMMERCIAL] SGIA SPIRE 2018

SOURCE: “Veritiv Corporation Third Quarter 2017 Financial Results” Investor Call, November 7, 2017

MICRO: paper demand VERITIV Corporation ▸  $8.3B logistics company ▸  Legacy business is printing paper sales ▸ Comments from call

▸  “…print (commercial) decline of 11% is roughly -8% based on volume down and -3% based on price decrease”

2017 paper volumes:

Publication paper: -20%

Direct mail paper: +2%

Commercial: -30%

Book: +10%

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SEGMENT ANALYSIS: [NEWSPAPER]

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SEGMENT ANALYSIS: [NEWSPAPER] MICRO: consolidation/fewer pages

SOURCE: “The Future of Global Printing to 2022” , Author Dr. Sean Smyth, Smithers Pira

10% drop in pages 2018 vs. 2017!

HEIDELBERG PRIMEFIRE 106 ▸  Single-pass B1 format, 2700 sheets/hour

▸  7-color

▸  Folding carton market

▸  EU Beta very positive, factory booked through 2019

SGIA SPIRE 2018

FUJIFILM J PRESS 720S: ▸  Single-pass B2 format ▸  2700 sheets/hour ▸  Offset quality ▸  100 platforms globally

SEGMENT SOLUTION: COMMERCIAL [INKJET]

SGIA SPIRE 2018

SEGMENT SOLUTION: COMMERCIAL [INKJET]

SGIA SPIRE 2018

SEGMENT SOLUTION: COMMERCIAL [INKJET]

47,000 employees!37,000 employees!

Fuji Xerox founded in 1962▸  75% Fujifilm

▸  25% Xerox

▸  Fuji Xerox becomes 100% subsidiary of Xerox

▸  Fujifilm acquires 50.1% of newly combined company

▸  Xerox name changes to “Fuji Xerox”

▸  Maintains NYSE “XRX” ticker

SGIA SPIRE 2018

SEGMENT SOLUTION: COMMERCIAL [INKJET] Fujifilm

▸  Turnkey solutions (J Press)

▸  Print heads

▸  Fluids (inks and coatings)

▸  Graphic markets expertise

▸  R&D

Fuji Xerox▸  Continuous feed printers

▸  Strong Asian presence

▸  R&D

Xerox▸  Continuous feed printers

▸  Strong presence everywhere but Asia

▸  R&D

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SEGMENT ANALYSIS: [PACKAGING]

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SEGMENT ANALYSIS: [PACKAGING] MACRO: DIGITAL growth

SOURCE: “Ten-Year Forecast of Disruptive Forces in Packaging to 2027”, Simon Ford, Smithers Pira 2017

SOURCE: “Post-drupa Technology Forecast for Print and Printed Packaging to 2026”, Dr. Dean Smyth, Smithers Pira 2016

MICRO: trends

1. Role of packaging in an increasingly e-commerce world ▸  Digital print on inside of corrugated shipper

SGIA SPIRE 2018

SEGMENT ANALYSIS: [PACKAGING]

SOURCE: “Global Packaging Trends 2018, Mintel.

MICRO: trends

1. Role of packaging in an increasingly e-commerce world ▸  Digital print on inside of corrugated shipper

2. Consumers seeking more product information via packaging ▸  Clean design ▸  “smart packaging”

SGIA SPIRE 2018

SEGMENT ANALYSIS: [PACKAGING]

SOURCE: “Global Packaging Trends 2018, Mintel.

MICRO: trends

1. Role of packaging in an increasingly e-commerce world ▸  Digital print on inside of corrugated shipper

2. Consumers seeking more product information via packaging ▸  Clean design ▸  “smart packaging”

3. Global concern regarding plastic packaging driving brands to rethink substrates and applications

SGIA SPIRE 2018

SEGMENT ANALYSIS: [PACKAGING]

SOURCE: “Global Packaging Trends 2018, Mintel.

SEGMENT SOLUTION: LABEL & PACKAGING FUJIFILM GRAPHIUM: ▸  Add single-pass FIT technology to

proven flexo platform ▸  Leverage flexo coverage and efficiencies ▸  Unlimited configuration options

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“…not print for pay” “…late stage customization”

!

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SEGMENT ANALYSIS: [INDUSTRIAL]

Analog + VDP

Food

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Business Confidential – Internal Use Only

SEGMENT ANALYSIS: [INDUSTRIAL] Food

SAMBA 42000 Print Bar -  Imprinting bar -  Controller unit -  Fluid delivery

Business Confidential – Internal Use Only

Food

SAMBA 42000 Print Bar -  Imprinting bar -  Controller unit -  Fluid delivery

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SEGMENT ANALYSIS: [INDUSTRIAL]

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SEGMENT ANALYSIS: [SIGN & DISPLAY]

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SEGMENT ANALYSIS: [SIGN & DISPLAY] MACRO: RETAIL DRIVES DEMAND

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SEGMENT ANALYSIS: [SIGN & DISPLAY] MACRO: RETAIL TRENDS

SEGMENT SOLUTIONS: SIGN & DISPLAY

3200

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SEGMENT SOLUTIONS: SIGN & DISPLAY

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SEGMENT SOLUTIONS: SIGN & DISPLAY [AUTOMATION]

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SEGMENT SOLUTIONS: SIGN & DISPLAY/CORRUGATED ROADMAP

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Looking Ahead…

SEGMENT SOLUTIONS: SIGN & DISPLAY/CORRUGATED ROADMAP

SGIA SPIRE 2018

Onset X SpeedSet

Jetliner

Specification Board UV 14pl Q-Class 1.6 x 3.2m Max 900m2/hr CMYK Options: W, LC, LM

Board / Sheet UV Samba 1.6 x 3.2m Max 7,900m2/hr CMYK Options: W, LC, LM, O, V, Primer, Varnish

Board / Sheet Aqueous Samba 1.6 x 3.2m Max 7,900m2/hr CMYK Options: W, LC, LM, O, V, Primer, Varnish

Roll to Roll / Roll to Sheet Aqueous Samba 1.6m wide 5 – 300m/min CMYK Options: Analog pre coat, digital varnish

Applications Post print - Display - Packaging (Non

food)

Post print - Display - Packaging (Non

food) Pre print (Flexo)

Post print - Display - Packaging (All) Pre print (Flexo)

Pre print - Litho Lam - Litho Label

NEXT – GEN SINGLE PASS:

▸  Several development projects underway ▸  Multiple substrates ▸  Multiple

configurations

SEGMENT SOLUTIONS: SIGN & DISPLAY/CORRUGATED ROADMAP SGIA SPIRE 2018

SEGMENT SOLUTIONS: SIGN & DISPLAY/CORRUGATED ROADMAP SGIA SPIRE 2018

THANK YOU SGIA SPIRE 2018