kyouhei fujisawa president of media technology …...1 business results six months ended september...

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1 Business Results Business Results Six Months Ended September 30, 2007 November 13, 2007 Kyouhei Fujisawa Corporate Officer (Senior) President of Media Technology Company Graphic Arts Equipment Business Cautionary statement with respect to these materials; The earnings forecasts contained in these materials and communicated verbally, are based on the most recent information available to Dainippon Screen. However, rapid changes can occur in Dainippon Screen’s business environment, due to factors such as global economic changes, technological developments in the electronics industry and changes in the semiconductor and LCD panel markets. As a result, Dainippon Screen’s earnings performance and achievements may materially differ from those expressed in these materials. Figures have been rounded down to eliminate amounts less than ¥100 million yen, except per share figures.

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Business ResultsBusiness ResultsSix Months Ended September 30, 2007

November 13, 2007

Kyouhei FujisawaCorporate Officer (Senior)President of Media Technology Company

Graphic Arts Equipment Business

Cautionary statement with respect to these materials;The earnings forecasts contained in these materials and communicated verbally, are based on the most recent information available to Dainippon Screen. However, rapid changes can occur in Dainippon Screen’s business environment, due to factors such as global economic changes, technological developments in the electronics industry and changes in the semiconductor and LCD panel markets. As a result, Dainippon Screen’s earnings performance and achievements may materially differ from those expressed in these materials. Figures have been rounded down to eliminate amounts less than ¥100 million yen, except per share figures.

2

Business ResultsBusiness ResultsSix Months Ended September 30, 2007

3

27.730.2 29.8

32.6

28.831.1

0

10

20

30

40

50

2005/4⊶9 2005/10-2006/3 2006/4⊶9 2006/10-2007/3 2007/4-9 2007/10-2008/3(Forecast)

0

1

2

3

4

5

Net Sales Operating Income

(Billions of JP Yen)

Graphic ArtGraphic Artss EquipmentEquipmentNet Sales and Operating Income (ConsolidatedNet Sales and Operating Income (Consolidated))

FY06/03 FY07/03 FY08/03

Net Sales Operating Income

4

0

4

8

12

16

20

2005/4-9 2005/10-2006/3 2006/4-9 2006/10-2007/3 2007/4-9 2007/10-2008/3 Forecast

CTP Digital Printing Machines RIP・Workflow Others

FY06/03

(Billions of JP Yen)

“Others” means Input-scanner, Image-setter, Digital proofer, General pre-press equipment, Font, Supplies, third party products, packaging, transportation cost and operation.

FY07/03 FY08/03

Graphic ArtGraphic Artss EquipmentEquipmentHalfHalf--Yearly Yearly Sales Sales by Productby Product ((NonconsolidatedNonconsolidated))

5

Graphic ArtGraphic Artss EquipmentEquipmentHalfHalf--yearly yearly SalesSales Ratio by Region (Ratio by Region (NonconsolidatedNonconsolidated))

0%

20%

40%

60%

80%

100%

2004/4-9 2004/10-2005/3 2005/4-9 2005/10-2006/3 2006/4-9 2006/10-2007/3 2007/4-9

Japan North America Europe Asia Other

FY08/03FY06/03 FY07/03FY05/03

6

Future StrategiesFuture Strategies

7

New Growth DriversNew Growth Drivers

CommercialCTP

No.1 Worldwide

CommercialCTP

No.1 Worldwide

Enter new markets, keeping No.1 worldwide share in CTP

Expand business to POD (Print on Demand) market by developing inkjet technology

High-endCTP

11,111 11,111 CTPsCTPs have been shippedhave been shippedworldwideworldwide

CTP for emergingcountries

NewspaperCTP

PackageCTP

Inkjet paper media

Inkjetsign display

InkjetIndustrial material

InkjetPackage

8

Keeping No.1 worldwide share

in CTP

Expand POD business

For New GrowthFor New Growth

9

– For high-end market– For emerging countries

Commercial printingCommercial printing

Newspaper printingNewspaper printing Label/package printing

Enter New Markets,Enter New Markets, kkeeping No.1 Share in CTP eeping No.1 Share in CTP

PlateRite NiagaraPlateRite NiagaraEntry model CEntry model CTTPP

PlateRite PlateRite News2000S+News2000S+News paper News paper CTPCTP

PlateRite 8800ZXFastest 8pp CTP (50pph)

PlateRite PlateRite FX870FX870

10

Printing on paper mediaPrinting on paper media

Printing on industrial materialPrinting on industrial material

Decorative / Industrial material etc.

Package printingPackage printing

Expand POD BusinessExpand POD Business

Inkjet technologyInkjet technology

•On demand Printing•Transaction•Full color variable printing etc.

•Outdoor advertisement, signs•Exhibition panels, etc.

•Corrugated paper •Packaging material

FASTJET (by TMSunChemical Inca)

Sign displaySign display

11

TranspromoTranspromo

Advertisement co-packed with invoice70% is binned without a glance(research by direct-mail company in UK)

InvoicePersonalized advertisement

Advertisement is seen and not binned

Key phrase: Transaction printing + Promotion

12

Newspaper Satellite PrintingNewspaper Satellite Printing

Newspaper Sample by POD in IGAS2007

13

Advertisement on StreetAdvertisement on Street

Liberty store, Regent St, London, April 2001 – First commercial job undertaken on an Inca

14

Printing on Various Industrial MaterialsPrinting on Various Industrial Materials

15

Printing on Various MaterialPrinting on Various Material

16

Potential of POD MarketPotential of POD Market

POD Market (U.S.) forecast – paper media

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011

Billion$

Shipping amount of POD printing in US market (Forecast)Shipping amount of POD printing in US market (Forecast)(Incl. high(Incl. high--speed copying and data processing color/black & white by speed copying and data processing color/black & white by InfoTrendsInfoTrends 20072007 ))

17

Growth of sign display market (World wide)

0

5

10

15

20

25

1992 1994 1996 1998 2000 2002 2004 2006

Potential of POD MarketPotential of POD Market

Billion$

Outdoor advertisement cost (world wide)Advertising Expenditure Forecast 2005

18

CTP POD Others

FY2007/3 FY2011/3

New Growth by PODNew Growth by POD

Maintain sales of CTPMaintain sales of CTP POD will be 2nd pillar of Graphic POD will be 2nd pillar of Graphic Arts Equipment businessArts Equipment business

Our Target

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