Kodak 2013 Annual Report Download - page 6

Table of Contents
Graphics: Kodak’s Graphics portfolio, covering the pre-press segment of the digital offset printing market, includes front-end controllers,
production workflow software (including the PRINERGY 6 Workflow portfolio), CTP output devices (including the KODAK
TRENDSETTER and ACHIEVE Product with SQUAREspot laser writing and the TH5 imaging technology), service and digital plates
(including traditional digital and KODAK SONORA Process-Free Plates). The SONORA plate delivers cost savings and efficiency and
promotes customers’ sustainability practices and credentials as it does not require processing chemistry. Graphic products and services are sold
through a variety of direct and indirect channels.
Net sales for Graphics accounted for 52%, 49%, 49%, and 45% of total consolidated revenue for the four months ended December 31, 2013,
eight months ended August 31, 2013 and years ended December 31, 2012 and 2011, respectively.
Entertainment Imaging & Commercial Films: Kodak’s Entertainment Imaging & Commercial Film group encompasses its motion picture
film business, providing motion imaging products (camera negative, intermediate, print and archival film), services, and technology for the
professional motion picture and exhibition industries. Motion picture products are sold directly to studios, laboratories and independent
filmmakers. The group also offers Aerial and Industrial Films, including KODAK Printed Circuit Board film, and delivers external sales for
Kodak’s component businesses: Polyester Film; Specialty Chemicals; Inks & Dispersions; and Solvent Recovery.
Net sales of Entertainment Imaging and Commercial Films accounted for 11%, 13%, 14%, and 18% of total consolidated revenue for the four
months ended December 31, 2013, eight months ended August 31, 2013 and years ended December 31, 2012 and 2011, respectively.
Intellectual Property and Brand Licensing: Intellectual property and brand licensing includes licensing activities related to digital imaging
products and certain branded licensed products. On February 1, 2013, Kodak sold certain of its intellectual property assets, including its digital
imaging patents.
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 that offer commercial offset and digital printing
equipment, production software, consumables and service. Competitiveness is generally focused on a broad range of technology, solutions and
price. The motion picture business faces competition from electronic substitution with digital capture and digital cinema theater display.
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. DP&E products and services are sold through a variety of direct and indirect channels.
Digital Printing:
Digital Printing includes both the Inkjet Printing Solutions and Electrophotographic Printing Solutions equipment and related
consumables and service.
The Inkjet Printing Solutions product offering includes KODAK PROSPER Presses and PROSPER hybrid components, featuring ultrafast
inkjet droplet generation, which are sold directly to customers. PROSPER hybrid components are also integrated into OEM partner portfolios.
The PROSPER Press features STREAM Inkjet Technology, which delivers a continuous flow of ink that enables constant and consistent
operation, with uniform size and accurate placement, even at very high print speeds. Applications include publishing, commercial print, direct
mail, and packaging. The business also includes a large customer base of KODAK VERSAMARK (first-generation) Products.
Electrophotographic Printing Solutions encompasses the NEXPRESS Press Platform, which offers extremely high-quality, differentiated
printing of short-run, personalized print applications such as direct mail, books, marketing collateral and photo products; and the
DIGIMASTER Production Platform that uses monochrome electrophotographic printing technology to create high-quality printing of
statements, short run books, corporate documentation, manuals and direct mail.
Net sales for Digital Printing accounted for 21%, 18%, 17%, and 15% of total consolidated revenue for the four months ended December 31,
2013, eight months ended August 31, 2013 and years ended December 31, 2012 and 2011, 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.
The Packaging business includes Kodak’s FLEXCEL NX and FLEXCEL Direct Platforms that offer digitization into the flexographic print
market. The FLEXCEL System uses Kodak’s proprietary SQUAREspot laser imaging technology. This print production capability leverages a
portfolio of offset, flexographic, and digital products and services, which help enable customers to preserve brand equity and security, enhance
shelf appeal, and drive efficiency from design.
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