Kodak 2005 Annual Report Download - page 5

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“ With our key acquisitions completed, Kodak now
offers the industry’s broadest range of prepress
equipment, workflow solutions, digital printing and
consumables.”
n Graphic Communications
Our Graphic Communications Group (GCG) is an excellent example of Kodak growing its presence in a key industry. Starting with a modest
portfolio, Kodak has built a $3 billion business in graphics over the past two years. Today, Kodak products and services are used in production of a
substantial percentage of the world’s commercially printed pages.
Acquisitions were key to our growth. In April 2005, we took full ownership of Kodak Polychrome Graphics (KPG). Previously a joint venture with
Sun Chemical, KPG is a leading seller of prepress and proofi ng products. In June, we purchased Creo, Inc., a premier supplier of prepress and
workfl ow systems used by commercial printers.
Versamark and NexPress, two units that joined Kodak in 2004, are enjoying strong growth. With Kodak Versamark systems and Kodak NexPress
digital production presses now installed at a number of customer sites, growth in print volumes is creating an attractive annuities business
for supplies.
With our key acquisitions completed, Kodak now offers the industry’s broadest range of prepress equipment, workfl ow solutions, digital printing
and consumables. Kodak’s document imaging business also joined GCG in 2005, adding its leading portfolio of document scanners and archiving
solutions as well as a large service presence to the mix.
To build its organization for future growth, GCG focused its efforts during the second half of 2005 on unifying the sales, marketing and service
organizations of its various businesses. The group also continued to bring innovative products to market across its broad portfolio. In fact, three
GCG products received prestigious 2005 GATF InterTech Technology Awards. Products recognized were:
• the Kodak NexPress fi fth imaging unit solution, which can add protective or high-gloss coating and expanded color gamut to jobs made on
NexPress color presses.
• Kodak ColorFlow custom color tools software, used to manage colors across components in a workfl ow.
• Kodak PDF compare and PDF merge software tools that provide automated, cost-effective management of corrections in a prepress workfl ow.
To showcase such innovation and the new breadth of our graphics business, Kodak staged a unifi ed presence at the industry’s Print 05 trade show
in September. Customer acceptance was excellent, with Kodak achieving 300% of its sales target at the show.
We expect even greater contributions from GCG as we further expand our solutions portfolio, realize the effi ciencies of integrating our acquisitions
into one organization and continue to drive digital revenue growth.
n Health
Healthcare is one of the fastest growing sectors of the world economy, and Kodak intends to build on its 100+ year history of providing leading
health imaging solutions.
In 2005, Kodak’s Health Group underwent an organizational change to align its business with changes in the marketplace as well as to address
some operating issues that became apparent during the year. As is typical, this change caused some disruption; however, we continued to expand
our presence in several key markets, and are now better positioned to focus on opportunities across our portfolio, and to extend our imaging
leadership in digital healthcare.
Our digital solutions enable customers to improve both the quality and cost of patient care. We are successfully leading customers through their
digital transformation, in general medical imaging and in the specialty markets of dental, mammography and oncology.
In the growing market for Healthcare Information Solutions (HCIS), Kodak offerings range from systems that automate steps in the diagnostic exam
process, to unique solutions that effi ciently manage and preserve medical images and information.
Kodak’s HCIS revenues grew 39% during 2005, and we secured our biggest ever HCIS contract, with National Services Scotland. The deal is for
Picture Archiving and Communications Systems (PACS) and Information Management Solutions that will link clinical sites across that country. This
same type of Kodak PACS, which enables physicians in different locations to consult on images and diagnosis, was used across three medical
centers that served athletes at the recent Winter Olympic Games in Torino, Italy.