Kodak 2012 Annual Report Download - page 7

Table of Contents
Entertainment Imaging & Commercial Films: Kodak’s motion picture film business is the world-class leader in providing motion imaging
products, services, and technology for the professional motion picture and exhibition industries. Products are sold directly to studios,
laboratories, independent filmmakers and production companies. Quality and availability are important factors for these products, which are sold
in a price-competitive environment. The distribution of motion pictures to theaters is another important element of this business, one in which
Kodak continues to be widely recognized as a market leader.
The company’s commercial films business encompasses Aerial and Industrial Films – including Kodak Printed Circuit Board film. It also
includes external sales for the components businesses: Polyester Film; Specialty Chemicals; Inks & Dispersions; and Solvent Recovery.
Net sales of Entertainment Imaging and Commercial Films accounted for 10%, 13%, and 14% of total consolidated revenue for the years ended
December 31, 2012, 2011, and 2010, respectively.
Marketing and Competition: The key imperatives and marketing focus for the Graphics business are; investing in process-free technology,
driving a total, optimized prepress solution, delivering the next-generation print software portfolio, expanding in emerging markets, and driving
operational excellence and profitability. Kodak faces competition from other companies who offer a range of commercial offset and digital
printing equipment, production software, consumables and service. The company also faces competition from electronic substitution and other
service providers. Competitiveness is generally focused on a broad range of technology, solutions and price.
Key imperatives and marketing focus for the Entertainment Imaging business in 2013 are as follows; driving price across the portfolio, balancing
manufacturing volumes with expected demand, working to make fixed costs variable at primary operating sites, and growing the external
customer-base for the components business with a focus on the ink market. As the Entertainment Imaging industry continues to move to digital
capture and digital cinema formats, Kodak anticipates that it will face new competitors, including some of its current customers and other
electronics manufacturers. Kodak recently signed four new contracts with major Hollywood studios that are committed to buying the company’s
motion picture film products through the end of 2014 or 2015.
DIGITAL PRINTING AND ENTERPRISE (“DP&E”) SEGMENT
DP&E serves a variety of customers in the creative, in-plant, data center, consumer printing, commercial printing, packaging, newspaper and
digital service bureau market segments with a range of software, media and hardware products that provide customers with a variety of solutions.
Digital Printing: Digital Printing includes high-speed, high-volume commercial inkjet, including PROSPER equipment and STREAM
technology, and color and black-and-white electrophotographic printing equipment, and related consumables and services.
Net sales for Digital Printing accounted for 11%, 11%, and 9% of total consolidated revenue for the years ended December 31, 2012, 2011, and
2010, respectively.
Packaging and Functional Printing: Packaging and Functional Printing includes packaging printing equipment and related consumables and
services, as well as printed functional materials and components.
Enterprise Services and Solutions: Enterprise Services and Solutions include business solutions and consulting services.
Consumer Inkjet Systems: Consumer Inkjet Systems includes consumer inkjet printers and related ink and media consumables. Kodak has
announced that, starting in 2013, its Consumer Inkjet business will solely consist of selling ink to its installed printer base.
Marketing and Competition: Around the world, DP&E products and services are sold through a variety of direct and indirect channels. DP&E
faces competition from other companies that offer a range of commercial offset and digital printing equipment, consumables and service. Kodak
also faces competition from software companies and other service providers. Competition is generally focused on technology, solutions, and
price.
PERSONALIZED AND DOCUMENT IMAGING (“P&DI”) SEGMENT
P&DI provides consumer digital and traditional imaging products and service offerings, document scanning products and services, and licensing
activities related to Kodak’s intellectual property.
Intellectual Property: Intellectual Property includes licensing activities related to digital imaging products and certain branded licensed
products.
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