Presstek,
Inc.
(PRST)
2007
Annual
Meeting
Safe
Harbor
This
presentation
contains certain forward-looking statements
including
those
dealing with the business and industry outlook.
These forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
projected or anticipated. Factors that could cause or contribute to
such risks and uncertainties include, but are not limited to, general
economic and business conditions, competition, changes in
technology, and various other risk factors beyond the company’s
control.
These risks and uncertainties include such factors as are described
in the company’s recently filed reports with the Securities
and Exchange Commission. The company wishes to caution
viewers not to place undue reliance upon any such forward-looking
statements, which speak only as of the date made.
These forward-looking statements involve risks and uncertainties
that could cause actual results to differ materially from those
projected or anticipated. Factors that could cause or contribute to
such risks and uncertainties include, but are not limited to, general
economic and business conditions, competition, changes in
technology, and various other risk factors beyond the company’s
control.
These risks and uncertainties include such factors as are described
in the company’s recently filed reports with the Securities
and Exchange Commission. The company wishes to caution
viewers not to place undue reliance upon any such forward-looking
statements, which speak only as of the date made.
Highlights
Ù
Direct/dealer
sales
of DI equipment in North America
increased by more than 175% in 2006
Ù
Total sales in Europe increased by more than 45% in
2006
Ù
External
sales at Lasertel grew by more than 75% in 2006
Ù
Introduced
the 52DI press in Q3, 2006 – 15 units sold
worldwide in Q1, 2007
Ú
Vector
TX52
and AnthemPro plate quality issues
Ú
Declining
analog service contract base
Ú
Shutdown
of
Precision analog business
Revenue
($M), from
continuing
ops
GAAP
Net
Income ($M), from
continuing
ops
*
Includes
$10.6 million one-time tax benefit
Financial
Performance
▪
Healthy
balance sheet
▪
Financial
capacity to grow organically and strategically
Assets:
$202.8 M
Liabilities
and Equity:
$202.8
M
Accounts
Receivable
28%
Intangible
Assets
14%
Inventory
26%
Property,
Plant
&
Equipment
21%
Cash
3%
Deferred
Revenu
e
e
4%
Accounts
Payable
14%
Debt
21%
Equity
54%
Accrued
Expens
es
es
6%
Other
Assets
8%
Other
1%
1Q07
Financial Position
Vision
Revenue
growth
Positive
cash flow
Return
on sales
Consistent
supply of quality products
Technological
superiority
Value
Added customer services
...improved
ROI
Energized
& “forward looking" environment
Skilled
& empowered workforce
Continuous
process improvements
Always
raise the bar!
Emphasis
on integrated system placements & recurring
"annuity" streams
Continued
global and upward migration
Open
architecture on metal plate
consumables
Vision
and
Direction
Presstek
provides high quality fully integrated Digital
Solutions and Services in order to form all-encompassing
relationships with our customers
Internal
Customer
Financial
Growth
Success
Drivers
▪
Operational
excellence
▪
Direct
imaging
leadership
▪
Significant
international expansion via additional
channels
▪
Upward
customer
migration
▪
Utilize
lower market
channel
▪
Drive
recurring
revenue stream
▪
Build
financial
strength and predictability
Management
▪
Jeff
Jacobson, CEO
s
Former
COO, Eastman
Kodak Graphic Communications
Group
s
Integrated
6 Kodak
divisions into one $3.6B revenue
enterprise
s
Former
CEO, Kodak
Polychrome Graphics ($1.7B revenue
Sun
Chemical –
Eastman Kodak joint venture)
s
20
year graphics
arts industry veteran
▪
Jeff
Cook,
CFO
s
Former
CFO and CIO
of Kodak Polychrome Graphics
s
Solid
operational
and financial management experience
s
17
years financial
management with various GE businesses
s
29
years financial
leadership
Graphic
Communications
Industry:
$800B
Print
Services:
$454B
Commercial
Print:
$200B
Presstek
Opportunity
Equipment
=
+$6B
Consumables
(Plates)
= +$5B
Services
=
+$4B
Total
Opportunity =
+$15B
Source:
Pira
International Ltd and Presstek, Inc. estimates
Sizing
the
Market
Presstek
Customer Increasing Demand for Short Run Color
Source:
InfoTrends Inc.,The Next Generation Digital Color On Demand Printing
Opportunity
Growth
Decline
Changing
Industry Landscape
▪
Shifting
mainstream
requirements
s
High-quality
s
Fast
turnaround
s
Short-run
color
▪
New
printing
solution needs
s
Low
costs
s
High-speed
s
Ease-of-use
Print
job
size
Competitive
Advantage
Research
Design
Develop
Manufacture
Market
Sell
Service
Service
Sales
Customers
Presstek
Approach
▪
“Marketplace-back”
approach
▪
End-to-end
control
from lab to customer
Consumables
46%
Services
15%
Equipment
39%
1Q07
Revenue
Composition
Attractive
Business Model
▪
System
sales
establish long-term relationship
▪
Recurring
high-margin consumables sales
▪
Services
provide
additional recurring revenue
On-Press
Solutions
Equipment
Consumable
Service
Off-Press
Solutions
Recurring
Revenue Streams
Job
Run
Lengths
Decline
Growth
Source:
InfoTrends Inc.,The Next Generation Digital Color On Demand Printing
Opportunity
Choice
of DI
as Best Technology Based on Run Lengths
<250
250-500
500-1K
1K-5K
5K-10K
10K-50K
>50K
Serving
a
Growing Market
Presstek
Revenue by Customer Location
Number
of
Printing Establishments
40,616
54,995
37,186
61,733
Source:
Dr.
Joseph Webb, Worldwide Market
Geographic
Expansion
▪
Successful
go-to-market model
▪
Begun
to strengthen
our position in
Europe
▪
Developing
actions
for emerging markets
Summary
▪
New
management in
place
s
Operationally-minded
s
Performance-driven
▪
Focus
on profitable
growth opportunities
▪
Promote
industry-leading digital solutions and
compelling
value
proposition
▪
Leverage
effective
sales and channel teams
▪
Grow
recurring
revenue from satisfied customers
▪
Drive
financial
strength and predictability