Safe Harbor For Forward-Looking Statements
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- Elwin Fields
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1 at drupa 2016
2 Safe Harbor For Forward-Looking Statements Certain statements in this presentation are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements other than statements of historical fact including words such as anticipate, believe, consider, continue, develop, estimate, expect, look, and plan and all statements in the future tense are forward looking statements. The statements in this presentation that could be deemed forward-looking statements include statements regarding EFI s strategy, plans, product portfolio, productivity, future opportunities for EFI and its customers, demand for products, and any statements or assumptions underlying any of the foregoing. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially, or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not necessarily limited to, intense competition in each of our businesses, including competition from products developed by EFI s customers; unforeseen expenses; the difficulty of aligning expense levels with revenue; management s ability to forecast revenues, expenses and earnings; our ability to successfully integrate acquired businesses; changes in the mix of products sold; the uncertainty of market acceptance of new product introductions; challenge of managing asset levels, including inventory and variations in inventory levels; the uncertainty of continued success in technological advances; the challenges of obtaining timely, efficient and quality product manufacturing and supply of components; any world-wide financial and economic difficulties and downturns; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; the unpredictability of development schedules and commercialization of products by the leading printer manufacturers and declines or delays in demand for our related products; the impact of changing consumer preferences on demand for our textile products; litigation involving intellectual property rights or other related matters; the uncertainty regarding the amount and timing of future share repurchases by EFI and the origin of funds used for such repurchases; the market prices of EFI's common stock prior to, during and after the share repurchases; and any other risk factors that may be included from time to time in the Company s SEC reports. The statements in this presentation are made as of the date of this presentation June 1, EFI undertakes no obligation to update information contained in this presentation. For further information regarding risks and uncertainties associated with EFI s businesses, please refer to the section entitled Risk Factors in the Company s SEC filings, including, but not limited to, its annual report on Form 10-K and its quarterly reports on Form 10-Q, copies of which may be obtained by contacting EFI s Investor Relations Department by phone at or by at investor.relations@efi.com or EFI s Investor Relations website at 2
3 When Your Platform is Burning
4 EFI Platform: The transformation from analog to digital printing on materials where the printed image will increasingly matter.
5 We Worked HARD to Get to This Moment million 592 million 652 million 728 million 790 million 890 million 1 Billion (goal)
6 Print Has Declined Since Last drupa decline in total commercial pages over past 20% 5 years 36% of worldwide suppliers consider their company to be in good shape of businesses have decided to use less paper in 80% the office Too Many Platforms Have Gone Up In Smoke 34% of worldwide printers describe their current business condition as good Sources: Drupa, European Statistics, Infotrends, Smithers Pira, Printing News, CompTIA
7 Today s World of Printing PUBLICATIONS PRINTING LONG RUN PRINTING DIGITAL PRODUCTION OFFICE PRINTING HOME PRINTING
8 The Choice Customers Will Be Facing Or will they jump to the Platform of the Future? Will they CRASH and BURN?
9 3 Ways EFI is Providing Platform for the Future #1 EFI is reinventing high-speed inkjet #2 EFI is reinventing digital front ends #3 EFI is taking productivity to the next level
10 #1 Reinventing High-Speed Inkjet
11 Analog-to-Digital & the New Print Opportunity Digital printing is transforming industries from long run to on-demand manufacturing Inkjet technology is a disruptive force Current penetration is ~10% on average (0-50% depending on industry) Increasing end-customer demand for personalization and faster refresh
12 Analog-to-Digital Future is Now! Custom Online Ordering Interior Design Custom Printed Clothing and Home Decor Packaging Fast Fashion Packaged especially for Guy Gecht Delivered to your Door, in Custom-Printed Boxes
13 The Case for Optimism Packaging market over next 5 years will MORE THAN DOUBLE of all profitable print businesses utilize more than 2/3 1 print technology 59% of functional printers reported digital to make 25% of revenue 38% of the commercial printers reported digital represents 25% of revenue 11% of packaging printers reported digital to make 25% of revenue Source: Sources: Drupa, European Statistics, Infotrends, Smithers Pira
14 Revolutionary New Technology Ability to print singlepass in rugged industrial environment Ability to print single-pass in high-resolution with precision Ability to print high-quality with versatility & accuracy on many substrates Cretaprint Jetrion VUTEk Our New Nozomi Platform!
15 Introducing Nozomi Platform New #1! 100 feet long! Integrated with Corrugated Productivity Suite 3 business units will provide an EFI end-to-end digital workflow for corrugated Sheet fed Fiery DFE LED ink CMYK (options OV, White) Brand-new singlepass inkjet platform Initial focus: corrugated packaging, with more segments in the future Diret to Corrugated Board workflow (vs. roll-to-roll top sheet printing)
16 EFI Nozomi C18000 Overview Target MSRP $2M-$3M 1.8m wide single-pass LED printer 75 linear m/min; up to 9,000 sheets/hr 8,100 sq m/hr 4 color, OV and white options LED inks 3m board length 100% in-line, post-print quality inspection/rejection system for image defects Full automation options
17 Nozomi C18000: 100 Feet of Fully Automated Production Line Sheet cleaner controls Power cabinet Fiery server rack Vacuum control Automated top feeder Print engine Inbound transition table, inspection, cleaning Stacker with full pallet removal Outbound inspection, ejection, and transition table
18 Nozomi: A Truly Global EFI Effort SILICON VALLEY DFE, CWS Print Electronics Compensation Algos MICHIGAN Single-Pass Expertise & Design Inks & Primer NEW HAMPSHIRE Print bars Transport Marketing SPAIN Single Pass Expertise & Design Software Ops, SC, Svc INDIA Cloud Services Remote Diagnostics
19 Nozomi in Action: Video at
20 EFI: Combining Great Concepts Water- Based Inks Greener, eco-friendly and Packaging Inks Adhere to most substrates Our Next Evolution of Ink: EFI AquaEndure!
21 Introducing EFI AquaEndure Platform A Green, Innovative, and Results-Driven Technology CMYK aqueous based inks, odorless, litho-like ink pile Enables new applications: packaging, wall coverings, skin contact, synthetics Expand application range at a lower manufacturer cost Eliminates some challenging attributes of traditional UV ink technology We will expand across many platforms and segments in the future New #2! EFI AquaEndure: Green. Innovation. Results.
22 EFI AquaEndure Platform Supports wide range of materials UV advantages: fast cure, good adhesion on more media, color pop Durable, flexible inks; good film performance Ensures reliability, extends head life Opens applications to direct skin contact and food packaging Greener, safer, regulatory friendly Lower drying temperatures Cooler curing (temperature outbid curing) Substrate temperature < 60 C
23 ImagingofThings.com Exchange: Interactive, Searchable Customer Gallery Free resource for customers, ad agencies and marketers, brand owners, designers Share ideas with print buyers looking for innovative applications Generate new business leads
24 New Ricoh Partnership: Marketing Our Entry Production Hybrid Printers New #3! Building on the success of Fiery partnership, Ricoh adding VUTEk flatbed and roll-to-roll printers to its portfolio Ricoh to offer EFI s H1625 and H2000 printers first in Latin America then globally
25 #2 Reinventing Digital Front Ends
26 Fiery for High-Speed Inkjet Platform Fiery has been clear leader in every other market; we expect to lead in ultra-high speed too. New #4! There isn t any production/digital market where Fiery won t be driving presses: High-speed Continuous feed Corrugated Folding carton Textiles Ceramic tiles High-end photos
27 Introducing Fiery XB Scalable Blade Server Scalable architecture: allows customers to add-in blades and tailor as their business expands New #5! Ultra high-performance (up to 13,000 B1-size sheets per hour) Integration with key industry workflow applications: o Radius, Pace, Monarch o Esko, Prinergy, Apogee, Prinect
28 Fiery Driving the High-Speed Inkjet Market Fiery for EFI Nozomi: Corrugated Packaging Fiery for Xerox Trivor: Book, Transactional, Direct Mail Fiery for Canon Voyager: Photo Printing, Graphics Fiery for Landa: Folding Carton, Graphics
29 Introducing A unique and modern industrial design, fully featured for the best customer experience Fiery NX Station Fiery NX Fiery QuickTouch Interface Platform for improved user experience, currently supporting: Ergonomically designed Higher-efficiency work area Movable work area height Adaptable to different work environments Optimized cable management New #6! Easy installation and initial setup Fast access to active job information Active queue visibility (Processing /Printing) Fiery Backup and Restore
30 Introducing Fiery Navigator Gain full visibility, take control, and achieve highest level of automation and control across your printers New #7! Fiery Navigator Secure EFI Cloud
31 Fiery Navigator Features Dashboard: Analyze trends, see operator compliance, compare productivity Sync: Standard resources across multiple Fierys Alert: Set trigger thresholds for critical events Manage: Discover engines, define groups, and export reports
32 The Imaging of Things Meets The Internet of Things The EFI Cloud
33 43 Fiery DFEs Running at drupa 2016
34 EFI, Esko Partner for High-Growth Packaging Combined workflow solution enables packaging companies to automate analog and digital workflows with single seamless workflow Connects Fiery DFEs, Esko workflow, and EFI ERP/MIS solutions to provide a unified packaging production ecosystem New #8! Fiery option for specific Esko packaging workflows allows commercial print customers to easily add packaging to Fiery-driven presses Fiery partners will be able to resell this add-on
35 #3 Taking Productivity to the Next Level
36 EFI s Productivity Suite Platform Driving Customer Value The Productivity Suite is a certified, end-to-end workflow, designed to maximize client processes and profit potential
37 New Revenue Generation Cross Media Marketing ecommerce / Web to Print Customer Relationship Management Fulfillment & Warehouse Efficiency & Profitability Dynamic Intelligent Estimating Global Resource Scheduling Optimized Layout & Planning Business Intelligence Production Shop Floor Data Management Direct Machine Interface Shipping & Transportation Integrated DFE & Job Management MIS/ERP Pre-Production Imposition and Composition Versioning and Personalization Prepress Integration Preflighting New #9! New #10! New #11! Packaging Midmarket Publication Corrugated Quick Print Enterprise SUPERWIDE MAILING COMMERCIAL FULFILLMENT DIGITAL
38 The EFI Suite Difference Workflows Not Integration Specifically designed workflow solutions for how CUSTOMERS need THEIR components to work together to drive their business needs and profits Scalable foundation to maximize CUSTOMER investment for success CUSTOMER value is the sum of the parts, not a single product
39 Introducing Corrugated Packaging Suite Publication Suite Quick Print Suite Building a platform for our customers success: Scalable to customer s needs Flexible workflow options are added as printer s needs change Offer opportunities for customer s incremental revenue growth Easy to deploy, minimizes business disruption
40 EFI s drupa 2016: It is About the Platform #1 #2 #3 New Nozomi single-pass platform: First target is corrugated New AquaEndure ink platform: the best of both UV and water inks Fiery ultra-high-speed, scalable Fiery architecture, Fiery NX station #4 #5 Expanded Cloud platform: new Fiery Navigator, new productivity tools Productivity Suites: corrugated, packaging digital transformation
41 Digital & the Imaging of Things: The Future Platform for our Industry
42 It is Going to Be a Great Journey! Thank you!
43 We Didn t Start the Video at
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