Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - EASTMAN KODAK CO | d287269d8k.htm |
| EX-99.1 - SLIDES FROM PUBLIC LENDER PRESENTATION - EASTMAN KODAK CO | d287269dex991.htm |
| EX-99.3 - PRESS RELEASE - EASTMAN KODAK CO | d287269dex993.htm |
 Business Segment Review
Exhibit 99.2 |
 2
Disclaimer
This presentation has been prepared by Eastman Kodak Company (the
“Company”). It contains general information about the
Company’s activities as at the date of the presentation. It is
information given in summary form and does not purport to be complete. This
presentation is not, and nothing in it should be construed as, an offer, invitation or
recommendation in respect of the facilities or any of the Company’s
securities, or an offer, invitation or recommendation to sell, or a
solicitation of an offer to buy, the facilities or any of the Company’s
securities in any jurisdiction. Neither this document nor anything in it shall form
the basis of any contract or commitment. This presentation is not intended to be
relied upon as advice to investors or potential investors and does not take
into account the investment objectives, financial situation or needs of any
investor. All investors should consider such factors in consultation with a
professional advisor of their choosing when deciding if an investment is
appropriate. The Company has prepared this presentation based on information
available to it, including information derived from public sources that have
not been independently verified. No representation or warranty, express or
implied, is provided in relation to the fairness, accuracy, correctness,
completeness or reliability of the information, opinions or conclusions expressed
herein.
The 2011 financial information included in this presentation is preliminary,
unaudited and subject
to
revision
upon
completion
of
the
Company's
closing
and
audit
processes.
All references to dollars are to United States currency unless otherwise
stated. |
 3
Cautionary Statement Regarding Forward-Looking Statements
This presentation includes forward-looking statements, as that term is defined under the Private
Securities Litigation Reform Act of 1995. Forward–looking statements include
statements concerning the Company’s plans, objectives, goals, strategies, future events,
future revenue or performance, liquidity, cash flows, capital expenditures, financing needs, plans or
business trends, and other information that is not historical information. When used in
this presentation, the words “estimates,” “expects,” “anticipates,”
“projects,” “plans,” “intends,” “believes,”
“forecasts,” or future or conditional verbs, such as “will,” “should,” “could,” or “may,” and
variations of such words or similar expressions are intended to identify forward–looking
statements. All forward–looking statements, including, without limitation,
management’s examination of historical operating trends and data are based upon the Company’s
expectations and various assumptions. Future events or results may differ from those anticipated
or expressed in these forward- looking statements. Important factors that could cause actual
events or results to differ materially from these forward-looking statements include, among
others, the risks and uncertainties described under the heading “Risk Factors” in the Company’s most
recent annual report on Form 10–K under Item 1A of Part 1, in the Company’s most recent
quarterly report on Form 10–Q under Item 1A of Part II and those described in filings made
by the Company with the U.S. Bankruptcy Court for the Southern District of New York and in
other filings the Company makes with the Securities & Exchange Commission from time to time, as well as the following:
the ability of the Company to continue as a going concern, the Company’s ability to obtain
Bankruptcy Court approval with respect to motions in the chapter 11 cases, the ability of the
Company and its subsidiaries to prosecute, develop and consummate one or more plans of
reorganization with respect to the chapter 11 cases, Bankruptcy Court rulings in the chapter 11 cases and the outcome of
the cases in general, the length of time the Company will operate under the chapter 11 cases, risks
associated with third party motions in the chapter 11 cases, which may interfere with the
Company’s ability to develop and consummate one or more plans of reorganization once such
plans are developed, the potential adverse effects of the chapter 11 proceedings on the Company’s
liquidity, results of operations, brand or business prospects, the ability to execute the
Company’s business and restructuring plan, increased legal costs related to the chapter 11
bankruptcy filing and other litigation, our ability to raise sufficient proceeds from the sale
of non-core assets and the potential sale of our digital imaging patent portfolios within our plan, the Company’s ability to
generate or raise cash and maintain a cash balance sufficient to fund continued investments, capital
needs, restructuring payments and service its debt; the Company’s ability to maintain
contracts that are critical to its operation, to obtain and maintain normal terms with
customers, suppliers and service providers, to maintain product reliability and quality, to effectively anticipate technology trends
and develop and market new products, to retain key executives, managers and employees, our ability to
successfully license and enforce our intellectual property rights and the ability of the
Company’s non-US subsidiaries to continue to operate their businesses in the normal
course and without court supervision. There may be other factors that may cause the Company’s actual results to
differ materially from the forward–looking statements. All forward–looking statements
attributable to the Company or persons acting on its behalf apply only as of the date of this
presentation, and are expressly qualified in their entirety by the cautionary statements
included in this presentation. The Company undertakes no obligation to update or revise
forward–looking statements to reflect events or circumstances that arise after the date
made or to reflect the occurrence of unanticipated events. |
 4
Commercial
Consumer
Graphics, Entertainment &
Commercial Film Business
Digital & Functional Printing
Enterprise Services & Solutions
Retail Systems Solutions
Consumer Inkjet
Paper & Output Systems
Event Imaging Solutions
Digital Capture & Devices
Gallery
Consumer Film
Intellectual Property
2011E Revenue
$3.4B
$2.6B
Simplified Structure |
 Commercial Segment |
 Graphics, Entertainment & Commercial
Film Business |
 7
Prepress Solutions Portfolio
Offset Consumables
Output Devices
Trillian
SP
Electra XD
Thermal Direct
Trendsetter
Magnus
Trendsetter NX System
Profit & Cash Generation
EM & Packaging Growth
Winning Portfolio Transition
New GTM Model
Fulfillment Model
Focus on Solutions Designed for Packaging and
Emerging Markets
Grow OEM Sales
Profit & Cash Generation
EM & Packaging Growth |
 8
Commercial Output Addressable Market
Worldwide Market Size ($bn)
2010
2015
CAGR ’10–’15
Flexo Plates
$0.7
$0.8
3.1%
Digital Plates
$3.6
$4.2
3.1%
Digital Print
$7.5
$10.2
6.3%
DI Capture
$1.2
$1.4
3.1%
SW & Services
$1.7
$2.3
6.8%
OD & Other
$3.5
$3.2
(1.7)%
Total
$18.2
$22.1
4.0%
Worldwide Market Size ($bn)
$18.20
$22.10
0
5
10
15
20
$25
2010
2015
Digital Print
Digital Plates
DI Capture
Flexo Plates
SW & Services
OD & Other |
 9
Entertainment Imaging
Objectives
Key Imperatives
Generate cash over the planning horizon
Maintain leadership position in the industry
Create new vectors of opportunity
Continue to aggressively manage costs ahead of volume decline
–
Balance customer satisfaction with infrastructure activities
–
Continue to maintain product quality, while making tradeoffs between customer
service level and cost
Simplify and maintain studio contracts
–
Disney, Sony, Paramount, Universal, Warner Brothers
Execute Silver Insulation Plan
Find growth opportunities in a low investment manner
–
Digital Asset Management included in plan
–
Evaluate partnerships |
 10
Entertainment Imaging: Industry Update
Industry adapting to changing market
dynamics
–
Declining DVD sales impact studio
profitability
–
Major studio releases down, films
staying in theaters longer
–
Increased number of 3D features
Digital Cinema adoption for first-run
screens at year-end 2011 estimated
at 40-50%
Source: Screen Digest.
Worldwide % Digital Cinema First-Run Screens Converted
ECP Volume Projections
EK Base Plan
EK Base Plan
0
20
40
60
80
100%
2009
2010
2011
2012
2013
2014
2015
SD April 2011
DC Slows, 3D Fades
0
2,000
4,000
6,000
8,000
10,000
12,000
2009
2010
2011
2012
2013
2014
2015
SD April 2011
DC Slows, 3D Fades |
 Digital and Functional Printing |
 12
Digital Printing Solutions
Roll-Fed
Presses
Services &
Consumables
High-volume
roll-fed color
presses
Services
Business Dev.
Operations Mgmt.
Support
Consumables
Printheads
Ink
Toner
ORC’s
Sheet-Fed
Presses
B&W and color
sheet-fed
production presses
Components
Imprinting
solutions for
web presses
•
Transaction
•
Direct Mail
•
Books
•
Newspaper
•
Magazines
•
Direct Mail
•
Ad collateral
•
Books, Photo
•
Transaction
•
Folding Cartons
•
Direct Mail
•
Books
•
Inserts, Labels
•
Corrugated
•
Specialty
•
All segments |
 13
Digital Printing Trends
Books
2.8T
Total pages
17%
Digital page CAGR
‘09-’12
Direct Mail
2.9T
Total pages
10%
Digital page CAGR
‘09-’12
Newspapers
19.2T
Total pages
26%
Digital page CAGR
‘09-’12
Catalogs
3.4T
Total pages
42%
Digital page CAGR
‘09-’12
Promotional
6.8T
Total pages
14%
Digital page CAGR
‘09-’12
Value Prop
•
Improved ROMI
•
Lower
production cost
Value Prop
•
Improved ROMI
•
Lower
production cost
Value Prop
•
Improved ROMI
•
Supply chain
efficiency
Value Prop
•
Lower
production cost
•
Supply chain
efficiency
Value Prop
•
Improved ROMI
•
Supply chain
efficiency
Note: Above page volumes represent WW volumes for these specific applications. |
 14
Digital Printing Solutions Highlights –
PROSPER Printing
Prosper
5000XL Color Press
Prosper
Components
Prosper is a Breakthrough for Print Providers
Game-changing technology in the transformation of print
Game-changing Stream IJ technology
Highly advantaged production digital
solutions
Attractive margins on equipment, ink
and service
Digital pages offer 15X revenue
opportunity than traditional
Opportunity to grow in emerging
markets as well as in Publishing and
Promotional applications
PROSPER Delivers:
Highest-speed inkjet printing
Magazine quality
Broad range of media
Lowest running cost
Expanding Solutions
Expanding Applications
Books
Direct Mail
Newsprint
Magazines
Catalogs
Advertising Collateral
Packaging
Selected Highlights |
 15
Target Functional Printing Markets
Materials
Printed Electronics
Energy
Smart Packaging
Bio-Tech
Substrates
Display
Solar
Harvesting
RFID
Anti-Microbial
Conductive
Inks
EMI
Lighting
Visual
Readouts
Tissue
Regen Film
Coatings
Transistors
Printed
Batteries
Interactive
Media
Disposable
Sensor
Opportunistic 0–18
Extend Reach 18–36
Future Participation 36+ |
 16
Packaging Solutions
Flexo Consumables
Proofing Solutions
Flexcel NX System
Flexo SRC/M/H
DITR Washout CRS
Approval NX System
IIJ Proofing
Invest & Grow
Lead Packaging Growth Initiative
Approval Product Line Supports Packaging Initiative
Manage Ink Jet Proofing for Cash
Prepare for End of Life |
 17
Packaging Solutions Key Highlights
Fastest growing and sustainable print
market
Highly fragmented value chain
Ripe for technology substitution
Kodak well positioned to lead digitization
and drive integration
Attractive business case, but need to
accelerate to scale
Best segment-optimized digital solutions
in the
industry
#1 market share worldwide in digital
prepress
Game-changing technology upsides
–
No process digital offset
–
Digital Flexo
for Packaging / Functional
Printing
Growth opportunities in emerging
markets, Packaging Segment, and
Functional Printing
Packaging Market Growth
0
50,000
100,000
150,000
200,000
250,000
300,000
$350,000
2005
2010
2015
Western Europe
North America
Latin America
Asia-Pacific
Other
($ in millions)
The Packaging Industry
$189B
$237B
$307B
Selected Highlights |
 Enterprise Services & Solutions |
 19
Enterprise Services & Solutions Business Overview
Enterprise Marketing &
Brand
Print
Enterprise Document
Management
Market Needs
•
Making content available to
drive enterprise business
decisions
•
Modernization in emerging
markets
Target Markets
•
Government
•
Finance
•
Retail
Applications
•
Content management with
imaging and document
services
Market Needs
•
Improve ROMI through
increased effectiveness of
multi-channel communication
•
Consistent representation of
the brand
Target Markets
•
CPG
•
Pharma
•
Retail
Applications
•
Marketing communications
•
Packaging
•
Transpromo
Market Needs
•
Better ROI in declining industry
•
Print effectiveness in multi
channel communication
•
New revenue sources for new
services
•
Competencies and access to
digital
Target Segments
•
Commercial
•
Packaging
•
Publishing
•
Enterprise |
 20
Large Market Opportunity with Attractive Growth
Market Size
And Growth
Enterprise Document
Management
$16.6bn
13% CAGR
•
Scanners
$0.9bn, 2%
•
Capture Software
$0.5bn, 10%
•
Services
$15.2bn, 14%
•
Analog Products + Services
Print
$32.4bn
5% CAGR
•
Software
$1.3bn, 8%
•
Services
$31.8bn, 5%
Enterprise Brand &
Marketing Software
$2.1bn
12%
CAGR
Content
Management
Asset
Management
Content Driven
Print
Census,
Elections
Control Point of Print
Packaging
Campaign Management |
 21
Enterprise Services & Solutions Highlights
Customers
Enterprise Document Management
Document Management leadership
position
–
Access to valuable information,
control points and connection for print
(i.e. census, elections)
–
Critical nature of service leads to
customer stickiness
High margin and growth
Business booked on long term contracts
Strength in technologies such as
security solutions, campaign
management (VDP, effective), capture
software
Market opportunity in services for
Enterprise Document Management and
Print is compelling
Enterprise Marketing & Brand
Print
Selected Highlights |
 Consumer Segment |
 Retail Systems Solutions |
 24
Retail Systems Solutions
Kodak Instant
Picture Kiosks
Dry Labs (APEX)
#1 worldwide
instant prints
>100K placements
>65K retail sites
WW
#1 new placements
worldwide
#1 installed base in
US & Europe
Retail Photo Dept
Software
Thermal Print
Solutions
At Home / On The
Go Solutions
#1 worldwide
80 million unique
consumers
>160 million kiosk
sessions/year
>45k connected
devices
#1 worldwide
Proven reliability
at retail
6,600 EP Duplex
Solution
Net 2 Retail
Host Retail Photo
Sites
Off site gifting
fulfillment
Create@Home
SW
Kodak is the Market Leader in Global Retail Installed Base
|
 25
0
20
40
60
80
100%
2010
2011
2012
2013
2014
2015
Wet
Dry
WW Photo Products Output Market Opportunity
WW Consumer Value by Product
WW Consumer Value by Pathway
WW Consumer Value by Region
Retail Digital 4x6 Prints
0
4,000
8,000
12,000
$16,000
2010
2011
2012
2013
2014
2015
Retail
Online to Home
Home
+0.8%
-8.8%
+4.7%
0
4,000
8,000
12,000
$16,000
2010
2011
2012
2013
2014
2015
Prints
Photobooks
Photomerchandise
0
4,000
8,000
12,000
$16,000
2010
2011
2012
2013
2014
2015
USC
Western Europe
Dev Asia
LAR
Em EAMER
Em Asia
+24%
-14%
+0.8%
-2.4%
-1.0%
-2.9%
+4.6%
+10.5%
-5.2%
+11.4%
+13.4%
($ in millions)
% represent ’10-’15 CAGRs
Sources: IDC, Infotrends, Futuresource, Kodak OCMO & SPG BR, May 2011.
|
 26
Retail Systems Solutions Highlights
RSS is a Sustained Partner to Leading
Global Retailers
#1 market position in retail installed
base and consumables
Number of images captured is growing
exponentially; capture is rapidly moving
to multi-function devices
–
Instant photobooks and photo
greeting cards are driving growth in
select retailers
–
Duplex capability in 5,000 stores
Social network access from kiosks
–
60% key accounts connected
–
Direct Facebook access to photos
Emphasis on dry lab installs in all
emerging markets
–
LAR growth 140% for 2011
Selected Highlights |
 Consumer Inkjet |
 28
•
$43 billion retail market
•
Big profit pool
•
Kodak has:
–
Fundamental technologies
•
Sustainable differentiation
–
Breakthrough business model
•
Price premium on printers
•
Premium ink at an affordable
price
–
Momentum in the market
Home & Office Printing Opportunity
Consumer Inkjet |
 29
Consumer Inkjet Highlights
Innovative Office printers +
Advanced Technology
Fundamental technology is a barrier to
entry against competitors
High gross profit margins from ink
revenue
Large printer installed base will sustain
ink revenue for coming years
Movement into SOHO market will drive
better margins and higher ink usage
Market share meaningful but still small
with a lot of upside potential
Selected Highlights
CIJ Portfolio
Cloud Printing
Leading Ease-of-Use
WiFi setup
Smart Sensors |
 Intellectual Property |
 31
Our Intellectual Property Strategy
Design Freedom
–
Over 10,000 worldwide Kodak patents supporting Kodak-branded products and
current and future licensing portfolios
–
World Class Productivity: Greater than one U.S. patent per year for each $1M of
R&D spent during the past five years
Access to New Markets and Partnerships
–
Cross licenses provide access to a broad spectrum of third-party patent
portfolios Continued Income and Cash Generation
–
$1.9B in revenue from 2008 –
2010
Sale of DCD and KISS Patent Portfolios In Progress
Consistent,
demonstrated
performance
monetizing
our
Intellectual
Property |
 32
Summary Segment Highlights
Leading Commercial Inkjet Technology/Stream is transforming the Print Market
Packaging products well positioned to lead digitization and drive integration
Momentum continues for the Consumer Inkjet business
Market leader in Retail photo business driven by connectivity and large installed
base
Continue licensing program or sell IP Portfolio |