Economy of Scale-Print to Survive and beat your Rivals!

Focus Sessions

A. Avrahami C.E.O, Yedioth information technologyA Buberman, VP Operations, Yedioth Group

IFRA Expo30 October 2012, Frankfurt Germany

YEDIOTH GROUP The Yedioth Ahronoth Group is leader in the field of print media, magazines and books in israel. It also owns other media and telecom holdings.

Yedioth group includes:

“Yedioth Ahronoth”: the largest daily newspaper in Israel.

“Yedioth Tikshoret” (Yedioth Communications) – One of the 3 largest chains of local papers in Israel. 21 local newspapers distributed on the weekends in the main cities and areas in Israel partly as free of charge and partly paid.

Magazines: designated for women, men, children, and covering health & TV entertainment.

“Yedioth Technology” : I.T company.

Ynet: the number one news portal in Israel. It also has abridged version in English and Arabic.

Vesti: The leading daily newspaper for the Russian sector.Calcalist: the largest finance newspaper and website.

Our Products:

Our Products:

Yedioth AhronothLeading daily paper with highest circulation

Distribution: Daily paper distributed across IsraelAbout 8,000 points of sale

Numerous daily subscribers

Annual paper consumption – about 70,000 Ton

The printing is carried out in two locations:Rishon Le’zion printing facility

Bar- Lev printing facility (location of pilot installation)

YEDIOTH AHRONOTH newspaper

Rishon printing facilityPress3 presses (KBA, MAN), KBA: 8 four high towersKBA: 4 satellitesMAN: 2 four high towers

plus 4 satellites

Mailroom4 ABL packaging lines plus 4 inserting systems made by FERAG

Press1 press (KBA), 2 folders and 6 towers

Mailroom2 ABL packaging lines plus 2 inserting systems by FERAG

Bar Lev printing facility

The Problem:

A Need to create new revenue sources

Decrease in circulation,

Profitability Decline,

Excess Printing capabilities,

Availability of equipment and people

Start point: Printing format is Tabloid only with standart newsprint

Market needs and demand:Glossy Cover;Large variety of printing format;Semi commercial Products;Preprinted inserts;

Wide range of potential customers:Commercial companies (Catalogues, Inserts, Brochures)- we insert those copies to the newspaper!

Small & Medium newspapers (Private customers)

Government agencies, Local & Municipalities authorities, Associations, Political parties …

Business opportunity • Print industry is in trouble. Small printing

house closed.• Entry barriers for the industry are high.• Big players have “relative advantage”.• Still there is demand for print products.

What are the gaps?• Management got “cold fits”• The organization structure is not ready

outside costumers• Different state of mind with short runs and

updated KPIs (paper waste groups, set up time)

• Need for new process that take care for the outside costumers

• Missing technology and training

Paper waste

Economy of scale

• We have the printing press already• We have the knowledge • We have economic process • We have law prices for materials • When the print industry have a problem

the big one survive (the small one disappear)

A wide range of new technology:

Press: KBA quarter folderNew web width (and improved newsprint)Stitching:

Saddle Stitcher - Müller Martini Bravo PlusStreamStitch - Ferag’s compact StreamStitch

Trimming - Ferag’s three-side trim on the single copy

A wide range of personnel skills:

Training staff to operate the new equipmentstaff Mobility between departmentsSharing new income Technological personnel and teams training

External customers Printing processAfter identification (name & password) the customer selects the publication generating for him and according to his demands (number of pages, size, finishing)customer upload pages file to the server,pages binge testing through PITSTOP.The user will receive notification on rejected pages including location of problem and characterization,after fixing the problem the user will re-position the page on layout.After making sure that all pages are correct and approved by user it When edition will be automatically sent to Arkitex system and into plates rom.

CRM system

• New CRM system to manage external costumers and their production process

• Full costumer picture• Covering all costumer process :

- price offer (and price list)- order- production order- invoice and billing

Share it!

• Share the information with you stuff.• Award them for good performance.

Current status

• Over 90 external consumers• Over 120 different jobs per week• Average printing run: 10,000 copies• Average pages: 48• Significant income for the group

What is good ROI for new investment?

• We did it in 2 years!

Email: aa@yit.co.il