Large Format Review - Business News

“Printers should not sell printing”, says Prof Frank Romano ahead of an Ipex 2010 Great Debate exploring how printers should be selling print. Instead, printers should sell solutions to their customers’ promotion and marketing problems. “Print is a commodity because all printers have great quality and great service, so the major differentiator is price. Solutions are a profit opportunity because they emphasise value-added services, like database, creative, and fulfilment.”

Running on 18 and 22 May, More than ink on paper - how should printers be selling print? is one of a series of free expert panel debates at Ipex 2010 tackling some of the most critical issues facing the print industry today. Produced by world print authority, Pira International in association with Ipex, The Great Print Debates will bring together experts, thought leaders and high-profile industry representatives from 18-25 May 2010.

According to Pira, the days of selling print based on equipment specifications are over. Today printers need a technology or customer-driven strategy to attract profitable work that is more than just ink on paper. Frank Romano, Professor Emeritus, Rochester Institute of Technology and Great Debate chairperson is one of the expert panel from across the supply chain. The panel will discuss how printers can make money from services including fulfilment, personalisation and mailing. In addition, the panel will explore the optimum technologies needed to execute these strategies and the changing competitive landscape with digital increasing its market share from conventional printing methods.

The Debates come at a critical time according to Pira Consultant and Great Debate chair, Sean Smyth. “The industry is in an unprecedented period of change, exacerbated by the deep recession. Cash conservation is a short-term tactic, not a strategy to build a successful business. These debates provide an opportunity for industry players to put their heads above the parapet and think about how their businesses, and their careers, might progress satisfactorily under new conditions”.

Three other important questions will also be debated: What will the printer of the future look like?, Will an Ipod for publishing kill printed media? and Green print: is it worth it? With full audience participation and interaction, The Great Print Debates will take expert commentary, lively debate and audience interactivity to a completely new level at a major exhibition.

Audience participation and interaction using simple polling technology will allow real-time feedback and drive the questioning of the panel chair, pushing the experts out of their comfort zone. Looking forward to the Debates, Laurel Brunner of Digital Dots reminds the industry, “It's all too easy to forget that understanding the important issues only comes with interaction and participation.”

Debate participants will take away an exclusive study with scenarios and forecasts to 2020. With input from a special panel of authoritative print and publishing experts from around the world,

Print to 2020 will provide a unique global summary of the major challenges, threats and opportunities facing the global printing industry. Building upon the themes discussed at the Ipex/Pira forums, the study will offer an exclusive roadmap for how these issues are likely to develop over the next ten years. Print to 2020 is published by Pira International.

The Great Debates take place from 13.00 -14.00 in the Printers’ Profit Zone, for more information and free registration go to http://www.ipex.org/greatprintdebates

Rokus van Iperen, Chairman of the Board of Executive Directors of Océ, today informed an Extraordinary General Meeting of Shareholders about the status of the published Offer by Canon Inc., via Canon Finance Netherlands B.V., for the shares of Océ N.V. made on 28 January 2010. Following the presentation by the Chairman of the Executive Board, an elaborate exchange of ideas took place with regard to several aspects of the Offer, including the offer price and future governance.

Furthermore, the following resolutions were adopted in connection with the Offer.

Approved resolutions

The meeting granted discharge and release to the resigning members of the Supervisory Board, under the condition precedent that the discharge and release will be effective on the Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. T. Tanaka will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. S. Liebman will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. N. Eley will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

Mr. J.M. van den Wall Bake will be appointed as member of the Supervisory Board effective as per Settlement Date, and therefore under the condition precedent that the Offer is declared unconditional.

The meeting approved the amendment of the Articles of Association, under the condition precedent that the Offer is declared unconditional.

The amendment of the Articles of Association is related to the following three main subjects:

• elimination of the cumulative protective preference shares;
• deletion of the transfer restriction re convertible cumulative financing preference shares; and
• changes to corporate governance structure.

More information

The results of the voting at the meeting will be published at investor.oce.com before 19 February 2010. The minutes of the meeting will be available on that website not later than 12 May 2010.

• Study reveals that many print service providers would not have survived the downturn without a digital printing capability. Survivors are emerging in a better shape to face the future
• As the end of 2009 approached, printers were optimistic about the future
• Printers who moved into wide format inkjet printing in particular thrived as they found a growing signage and display market
• Redefinition of the Digital Printer’ is the third survey sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology

Canon Europe, world leader in digital imaging solutions, today reveals the ‘top line’ trends uncovered by a survey of print service providers and industry commentators into the impact of the recession on the printing industry.

The ‘Redefinition of the Digital Printer’ survey, the third to be sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology in the USA, provides a further snapshot of the state of the printing industry. The results of the previous Canon ‘Insight’ studies into the future of digital printing and into the CRD (Central Reprographic Department) market were published in May 2008 and May 2009 respectively.

For this third survey, Professor Romano’s team interviewed the largest sample to date, a total of 840 printers, 65.5% of whom were based in Western Europe. The sample included 383 of the 464 interviewed for the 2008 study, the remaining 81 having either merged or gone out of business.

The final analysis of the Redefinition of the Digital Printer’ survey is currently being completed and the results will be published in May 2010. The key findings of the survey demonstrate how important the adoption of digital printing has been to the survival of professional printers and how those emerging from the recession are likely to be better positioned to exploit future opportunities and overcome future challenges:

1. In the last quarter of 2008, as marketers slashed print budgets, printers were forced to rethink every aspect of their business and to implement improved production methods to streamline staff and reduce costs. As print runs became much shorter, those who had implemented digital printing were well prepared for the shift. Those with only offset presses, and particularly those with older generation offset presses, were not geared up for it and were therefore not able to meet the changing demands. As printers acted to adapt, sales of digital machines consequently exceeded those of other presses during 2009. For example, the survey shows that while revenues from offset lithographic output declined by 18.1% in Western Europe during 2009 (compared with 2008), revenues from digital (toner and inkjet combined) output increased by a total of 27.2%.
2. For the purposes of the survey, ‘digital printing’ included not only document printers, but also wide format inkjet, and it appears that those in wide format printing did particularly well during the economic downturn. In fact, 86% of respondents said that display printing on wide format printers had helped them to survive the downturn. Commercial printers, who had previously avoided wide format as too niche, now discovered a growing market for signage and other display products as well as new industrial market segments for printing on fabrics, canvas and other materials.
3. One of the key elements to survival during the recession has been business leadership. Those companies leading the recovery demonstrated that, by focusing on key selected markets (where they could add value) and by providing multi-media services (to differentiate themselves from competitors), they could ensure the long-term future of the business
4. Despite the earlier gloom, by the end of 2009 print service providers were reporting some clear optimism about 2010 and the future. This optimism could be founded on the fact that more than half of companies with a digital printing capability improved their revenue and profit in 2009 compared with 2008.

Mark Lawn, European Marketing Manager, Professional Print Solutions, comments: “As with the previous surveys, Canon’s sponsorship of the latest study reflects our ongoing commitment to the development of long-term relationships with our customers, helping them to make informed decisions about their future.

“After the challenges that the print industry has encountered over the past year, it is very encouraging to hear that printers are expressing optimism about their future for 2010. The research clearly shows that companies who are embracing digital print technology to deliver added value services to their customers are now better positioned to take advantage of an evolving market. Digital printing has become an essential element in any successful blended production environment and, at the speed with which the business environment has changed and continues to change, consideration of the adoption of a digital printing capability can no longer be optional for printers.

“If this renewed sense of optimism continues – and we firmly believe that it will – the industry is in for a very exciting Ipex 2010. The exhibition will provide an ideal opportunity for printers to research and consider different ways to take their businesses forward, and Canon’s focus at the show will be to inspire visitors to make that leap.”

With a view to encouraging printers to take an innovative approach to securing the long-term future of their businesses, Canon is today also launching a pan-European ‘Business Leap’ Competition (Please see relevant press release dated 9 February 2010). Inviting entrants to submit a formal business plan for a venture involving digital printing, the competition will illustrate the importance of compiling a comprehensive business case with a strong rationale for investment – crucial for any printer seeking access to finance. The winner will be awarded a fully configured Canon imageRUNNER ADVANCE C9070 PRO, allowing them to transform their business plan into a commercial reality.

• Canon is launching a competition that involves the submission of a formal business plan via its Ipex 2010 microsite
• Total prize value will exceed 100,000 Euros with the first prize being a fully configured, light production Canon imageRUNNER ADVANCE C9070 PRO digital press
• Canon is setting out to support digital print companies as they look to achieve long-term financial security through innovation and robust forward planning

Further demonstrating its ongoing commitment to the professional print industry, Canon Europe, world leader in digital imaging solutions, today announces the launch of its pan-European ‘Business Leap’ Competition.

With Canon’s third Insight report today (Please see relevant press release dated 9 February 2010) revealing that many print service providers would not have survived the downturn without a digital printing capability, it is hoped that the competition will both stimulate printers to consider new ways to develop their businesses (or start new ones) and provide guidance in the creation of a comprehensive business plan, a key requirement when seeking access to finance.

Open to anyone aged over 18 and resident in Western Europe*, the competition invites all printers, together with entrepreneurs seeking an opportunity to join the industry, to submit a formal business plan for a commercial venture that involves digital printing. The plans will be scrutinised and reduced to a shortlist of finalists, who will then be individually interviewed by a panel of independent business consultants and a winner and two runners-up selected.

The first prize will be a fully configured, light production Canon imageRUNNER ADVANCE C9070 PRO digital press, which the winner will be able to retain for three years. The second prize will be a 44 inch Canon imagePROGRAF large format solution, which again the winner will be able to retain for three years. The third prize comes in the form of bespoke business consultancy, which the first two prize winners will also receive. The total value of the prizes will be in excess of 100,000 Euros. The competition will run from the end of March to the end of July 2010 and the winners will be presented with their prizes at an awards ceremony in Paris in October 2010.

David Preskett, Director of Professional Print, Canon Europe, explains the rationale behind the competition: “With most of the key territories in Europe still enduring the recession, it’s clear that, to secure their long-term commercial future, printers need to think about their businesses in a new way and take a more entrepreneurial approach towards customers and customer needs. The industry has changed and we are encouraging our customer to adapt to this change – to make a leap into the future of print. We’re therefore launching the Canon ‘Business Leap’ Competition to offer guidance in the preparation of a creative and comprehensive business case. At the same time, we’re giving entrants the opportunity to win a top-of-the-range light production digital press, a Canon imageRUNNER ADVANCE C9070 PRO, together with practical business consultancy from independent experts.

“In running the competition,” continues Preskett, “Canon is setting out to help printers develop profitable businesses for the longer term, while giving entrants the chance to turn their business ideas into a commercial reality. I’d therefore urge any printer who is looking to move into digital printing or any entrepreneur looking to break into this industry to submit an entry!”

Any qualifying person who wishes to enter the Canon Business Leap Competition must register their details on the Canon Ipex 2010 microsite at www.canon-europe.com/ipex, which will be live from 31 March 2010. They will then be able to download an entry form, which should be completed and emailed, together with any supporting documentation the entrant believes will strengthen their case, to BusinessLeap@canon-europe.com

The terms and conditions of the competition and a guide to completing the entry form will also be available via the Canon Ipex 2010 microsite and any entrant requiring clarification on a point may also email their question to Canon at BusinessLeap@canon-europe.com. The decision of the judges is final and Canon will not enter into any correspondence with any entrant over the outcome of the competition.

On 16 November 2009 Canon and Océ announced that they had reached conditional agreement to combine their printing activities through a fully self-funded, public cash offer by Canon for all the outstanding ordinary shares of Océ.

The offer price of €8.60 per outstanding ordinary share of Océ represents a premium of 70% over the closing price of Friday 13 November 2009 and 137% to the average closing price of Océ’s shares over the 12 months prior to 16 November 2009. Canon and Océ will be able to build upon each other’s strong history and proven track record of innovation and customer servicing and will create a strong joint enterprise capable of long term success.

The combination will capitalize on an excellent complementary fit in product mix, channel mix, R&D and business lines resulting in an outstanding client offer spanning the entire printing industry. Océ remains a separate legal entity as a Canon division, headquartered in Venlo (The Netherlands); within this division the Océ brand name is to be maintained and applied in all relevant markets. Océ continues to lead its R&D and manufacturing.

The Management Board and key management will remain in place. Employees will become part of the industry leader. Océ and Canon do not see any material negative consequences as a result of the recommended offer for the existing employment level of Océ, excluding already announced personnel reductions. The Management and Supervisory Boards of Océ fully and unanimously support and recommend the intended offer.

Holders of the depository receipts for Océ’s cumulative preference shares (approximately 19% of the total share capital) agreed to sell their interests to Canon; large shareholder Bestinver Gestion, SGIIC S.A. (approximately 9.5% of the outstanding ordinary shares) has provided an irrevocable undertaking to tender. Canon has acquired 28.05% of the outstanding ordinary shares since 16 November 2009 and received approval from all relevant anti-trust authorities.