14 Dec 2019

Canon Europe reveals initial results of study into impact of economic downturn on the printing industry

Mark Lawn Canon
 
  • Study reveals that many print service providers would not have survived the downturn without a digital printing capability. Survivors are emerging in a better shape to face the future
  • As the end of 2009 approached, printers were optimistic about the future
  • Printers who moved into wide format inkjet printing in particular thrived as they found a growing signage and display market
  • Redefinition of the Digital Printer’ is the third survey sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology

 

Canon Europe, world leader in digital imaging solutions, today reveals the ‘top line’ trends uncovered by a survey of print service providers and industry commentators into the impact of the recession on the printing industry.

The ‘Redefinition of the Digital Printer’ survey, the third to be sponsored by Canon Europe and conducted by Professor Emeritus Frank Romano and a team of print media graduates from the Rochester Institute of Technology in the USA, provides a further snapshot of the state of the printing industry. The results of the previous Canon ‘Insight’ studies into the future of digital printing and into the CRD (Central Reprographic Department) market were published in May 2008 and May 2009 respectively.

For this third survey, Professor Romano’s team interviewed the largest sample to date, a total of 840 printers, 65.5% of whom were based in Western Europe. The sample included 383 of the 464 interviewed for the 2008 study, the remaining 81 having either merged or gone out of business.

The final analysis of the Redefinition of the Digital Printer’ survey is currently being completed and the results will be published in May 2010. The key findings of the survey demonstrate how important the adoption of digital printing has been to the survival of professional printers and how those emerging from the recession are likely to be better positioned to exploit future opportunities and overcome future challenges:

  1. In the last quarter of 2008, as marketers slashed print budgets, printers were forced to rethink every aspect of their business and to implement improved production methods to streamline staff and reduce costs. As print runs became much shorter, those who had implemented digital printing were well prepared for the shift. Those with only offset presses, and particularly those with older generation offset presses, were not geared up for it and were therefore not able to meet the changing demands. As printers acted to adapt, sales of digital machines consequently exceeded those of other presses during 2009. For example, the survey shows that while revenues from offset lithographic output declined by 18.1% in Western Europe during 2009 (compared with 2008), revenues from digital (toner and inkjet combined) output increased by a total of 27.2%.
  2. For the purposes of the survey, ‘digital printing’ included not only document printers, but also wide format inkjet, and it appears that those in wide format printing did particularly well during the economic downturn. In fact, 86% of respondents said that display printing on wide format printers had helped them to survive the downturn. Commercial printers, who had previously avoided wide format as too niche, now discovered a growing market for signage and other display products as well as new industrial market segments for printing on fabrics, canvas and other materials.
  3. One of the key elements to survival during the recession has been business leadership. Those companies leading the recovery demonstrated that, by focusing on key selected markets (where they could add value) and by providing multi-media services (to differentiate themselves from competitors), they could ensure the long-term future of the business
  4. Despite the earlier gloom, by the end of 2009 print service providers were reporting some clear optimism about 2010 and the future. This optimism could be founded on the fact that more than half of companies with a digital printing capability improved their revenue and profit in 2009 compared with 2008.

Mark Lawn, European Marketing Manager, Professional Print Solutions, comments: “As with the previous surveys, Canon’s sponsorship of the latest study reflects our ongoing commitment to the development of long-term relationships with our customers, helping them to make informed decisions about their future.

“After the challenges that the print industry has encountered over the past year, it is very encouraging to hear that printers are expressing optimism about their future for 2010. The research clearly shows that companies who are embracing digital print technology to deliver added value services to their customers are now better positioned to take advantage of an evolving market. Digital printing has become an essential element in any successful blended production environment and, at the speed with which the business environment has changed and continues to change, consideration of the adoption of a digital printing capability can no longer be optional for printers.

“If this renewed sense of optimism continues – and we firmly believe that it will – the industry is in for a very exciting Ipex 2010. The exhibition will provide an ideal opportunity for printers to research and consider different ways to take their businesses forward, and Canon’s focus at the show will be to inspire visitors to make that leap.”

With a view to encouraging printers to take an innovative approach to securing the long-term future of their businesses, Canon is today also launching a pan-European ‘Business Leap’ Competition (Please see relevant press release dated 9 February 2010). Inviting entrants to submit a formal business plan for a venture involving digital printing, the competition will illustrate the importance of compiling a comprehensive business case with a strong rationale for investment – crucial for any printer seeking access to finance. The winner will be awarded a fully configured Canon imageRUNNER ADVANCE C9070 PRO, allowing them to transform their business plan into a commercial reality.

Essential Free Business Advice and Knowledge at IPEX 2010

Ipex 2010 Logo
With the launch of the Printers’ Profit Zone, The Great Print Debates and the Knowledge Centre, the Ipex 2010 organisers are offering a comprehensive and interactive learning programme which will equip printers with practical business solutions and free expert advice on topics such as increasing sales and profit, raising capital, finance, education, marketing, print buying and the environment.
Other educational highlights at Ipex 2010 include a special Print Automation Pavilion organised by CIP4 to highlight advances in print automation technology and some educational conference sessions presented by Xplor UK & Ireland, in conjunction with the BAPC.
Comments Nick Craig Waller, Ipex 2010 Marketing Director: “Whilst our exhibitors will take centre stage at the exhibition, visitors can also benefit from our thought provoking educational programme designed to spark lively discussions and debates, stimulate minds and evoke positive change. Whether or not visitors are ready to invest in new technologies, a visit to Ipex 2010 can provide them with valuable tips to boost their businesses. Every company faces different challenges so we’ve tried to cater for as many printers as possible by teaming up with some of the brightest and most experienced minds in the industry.”
Printers’ Profit Zone – Hall 9
For the first time ever, visitors to Ipex will be able to take advantage of a new, free of charge seminar programme at the event designed to tackle the issues that keep many printers awake at night.
Designed to accommodate up to 60 people, the Printers’ Profit Zone will offer dynamic and interactive Master Class sessions. Launched as a result of the findings of the comprehensive Ipex Global Print Survey, each session will offer practical advice such as growing sales, increasing profit margins and improving cashflow. The sessions are being run by Nick Devine, the founder of www.theprintcoach.com
There will be four Master Classes a day on hot topics such as ‘Lead Generation for Printers’, ‘Compensating your Sales Team’, ‘Value Based Selling’, ‘Wealth Protection’, ‘Raising Finance’, ‘Profitable Marketing’ and ‘Attracting Ideal Clients’.
The seminars are all free, but spaces are limited, so visitors are advised to reserve their place by registering in advance. Simply visit www.ipex.org/ppz
The Great Print Debates – Hall 9
A series of free of charge expert panel debates at Ipex 2010 will tackle some of the most critical issues facing the print industry today. Produced by Pira International in association with Ipex, The Great Print Debates will take place every day from 13:00 – 14.00 and are located in the Printers’ Profit Zone.
Four important questions will be considered:
  • More than ink on paper: how should printers be selling print?
  • What will the printer of the future look like?
  • Will an Ipod for publishing kill printed media?
  • Green print: is it worth it?
With full audience interaction, The Great Print Debates will take expert commentary, lively debate and audience participation to a completely new level unseen at a major trade show before.
Joining Sean Smyth and Frank Romano as debate chairs will be Neil Falconer, Senior Consultant, Pira International and Laurel Brunner, Digital Dots. For a full list of panellists see www.ipex.org/greatprintdebates Visitors can attend The Pira/Ipex Great Print Debates free of charge, but places are available on a strictly first-come first-served basis.
Knowledge Centre – Hall 11
Designed to heighten the visitor experience and maximise time at the event, the Knowledge Centre provides an easily accessible information hub at the heart of Ipex where visitors can seek advice from approximately 30 not-for-profit organisations about memberships, pensions, industry accreditation, best industry practice, print buying as well as educational matters.
Leading trade bodies already confirmed on the floor plan include: the Asian Flexographic Technical Association; Association for Print and Communications Managers (APCOM); the Forest Stewardship Counsel (FSC); the Ghent Workgroup; the Independent Print Industries Associations (IPIA); the International Print Purchasing Standards Association (iPPSA); the London College of Communication; the National Association of Paper Merchants (NAPM); Pakistan Association of Printing and Graphic Arts Industry (PAPGAI) the Printers Charitable Corporation; Printing Industries Association of Australia; The Printing Industries Federation of South Africa (PIFSA); the Printing Industry Pension Scheme (PIPS); Programme for the Endorsement of Forest Certification (PEFC); Sri Lanka Association of Printers (SLAP); UNITE, the Welsh Centre of Printing & Coating.
Attached to the feature will be a seminar theatre in which participating organisations can book presentation slots on a first come first serve basis. These sessions will last 30 minutes and are free of charge for visitors to attend. To maximise the schedule certain topics will be available on certain days so the topics for example will range from the Environment to Business and Training. Check out the latest programme at www.ipex.org/knowledge
CIP4 Print Automation Pavilion – Hall 7
The Ipex organisers and the International Cooperation for the Integration of the Processes in Prepress, Press and Postpress (CIP4) organisation have teamed up to highlight advancements in print automation. The print automation programs will include a special Print Automation Pavilion for exhibitors to demonstrate top-of-the-line automation technology, distribution of a Print Automation Roadmap to attendees, and “Print Automation Live”, a new Ipex show feature. The Print Automation Pavilion has room for 15 to 20 companies to demonstrate print automation technologies in a cloistered area. Located in Hall 7, booth 7E460, every company in the Print Automation Pavilion will be networked together, allowing printers to learn about individual systems and software and to see first hand how systems from different vendors can be networked and integrated together.
Xplor/BAPC Conference Session – Gallery Suite 1
Xplor UK & Ireland, in conjunction with BAPC, will host educational conference sessions during Ipex 2010 to bring together industry experts, leading-edge users, analysts and vendors to share information, experiences, and solutions on the latest technologies, strategies and thought leadership for the digital document industry. Two sessions will be held each morning and afternoon from Saturday, 22nd May — Monday, 24th May, featuring a keynote speaker, end-users and industry vendors who will challenge participants’ thoughts on the latest topics of interest including:
  • New approaches to customer communications through social networking
  • Future trends discovering the value of augmented reality
  • QR matrix codes
  • Digital migration
  • TransPromo - the current state of affairs
This event is open to all attendees at Ipex 2010 on a complimentary basis.
Enhancing the visitor experience
In addition to the extensive learning programme, visitors will also benefit from other valuable Ipex initiatives to ensure their visit is ideally structured and as efficient as possible.
International Days
With 159 countries visiting Ipex in 2006, part of the line up at Ipex is the International Days programme to make the show as enjoyable and effective as possible for international attendees. The programme will include welcome receptions, exhibition briefings in several languages and an international lounge (Hall 12), providing an attractive driver for visitors and an excellent internal communications device for exhibitors.
The following days will have a particular focus and theme on a country/region:
Tuesday 18 May: Middle East & Africa
Wednesday 19 May: China
Thursday 20 May: India
Friday 21 May: Germany
Saturday 22 May: Scandinavia
Sunday 23 May: Eastern Europe
Monday 24 May: North America
Tuesday 25 May: Europe
Ipex Guided Tours
For greater insight into the various thematic areas at Ipex, visitors can join one of the daily Guided Tours in association with the Proskills Academy. Ideal for visitors who want to investigate a particular product or service area in more detail, these tours take visitors by the hand and lead them to the expert partners at relevant stands. Areas covered:
  • Pre-media / pre-press / digital solutions
  • Printing / output and ancillary services
  • Post press and finishing
Visit www.ipex.org/guidedtours to book a space as they are available on a first-come, first-served basis.
My Ipex Event Planner
My Ipex is an interactive planning and navigation tool which creates personalised plans for visitors so that they can maximise their time at the event. My Ipex - www.myipex.org - allows visitors to:
  • Explore an interactive plan of the NEC and individual halls
  • Search for exhibitors by name, hall or product type
  • Link to exhibitor information and product details
  • Create, save, email and print your own personal event plan
  • Get information on facilities, travel and accommodation
  • It will also be linking to all the educational event content on Ipex+
Ipex+
With more than 1,000 exhibitors at Ipex, there is something happening on someone’s stand every minute of the day. Ipex+ brings all the exhibitors’ educational contents and product demonstrations plus Ipex-related events together in an easy to use online diary: www.ipex.org/plus
Ipex TV
Also new is IpexTV, a new section on the Ipex website offering regular ‘video-blogs’ to communicate news about Ipex 2010 initiatives, visitor and exhibitor updates as well as short interviews with key industry figures. Take a look at www.ipex.org/ipextv
Product Trails
Dedicated product trial finders are being produced to provide visitors to Ipex 2010 with a sector specific route map around the exhibition and to make their visit as effective as possible. The route guides will be available in the registration area and cover the following themes:
  • Green print
  • Finishing/ post-press systems
  • Offset
  • Digital/ inkjet processes
  • Workflow/ MIS
  • Newspapers
  • Packaging
  • Wide format
Ipex Daily
Once again, the Ipex Daily newspaper is published by Haymarket Publishing and will provide visitors to Ipex 2010 with the latest news from the exhibition floor. Ipex is the only major international print event to publish a daily newspaper on-site.
Additionally, with the growing popularity of social media sites, the Ipex organisers have set up dedicated industry groups on websites such as Twitter and LinkedIn to keep visitors and exhibitors up-to-date about developments but also to reach potential new visitor groups. These sites will also be used to offer exclusive Ipex content to visitors.

Canon launches pan-European ‘Business Leap’ Competition with €100,000 Prize Pool

Dave Preskett
 
  • Canon is launching a competition that involves the submission of a formal business plan via its Ipex 2010 microsite
  • Total prize value will exceed 100,000 Euros with the first prize being a fully configured, light production Canon imageRUNNER ADVANCE C9070 PRO digital press
  • Canon is setting out to support digital print companies as they look to achieve long-term financial security through innovation and robust forward planning

 

Further demonstrating its ongoing commitment to the professional print industry, Canon Europe, world leader in digital imaging solutions, today announces the launch of its pan-European ‘Business Leap’ Competition.

With Canon’s third Insight report today (Please see relevant press release dated 9 February 2010) revealing that many print service providers would not have survived the downturn without a digital printing capability, it is hoped that the competition will both stimulate printers to consider new ways to develop their businesses (or start new ones) and provide guidance in the creation of a comprehensive business plan, a key requirement when seeking access to finance.

Open to anyone aged over 18 and resident in Western Europe*, the competition invites all printers, together with entrepreneurs seeking an opportunity to join the industry, to submit a formal business plan for a commercial venture that involves digital printing. The plans will be scrutinised and reduced to a shortlist of finalists, who will then be individually interviewed by a panel of independent business consultants and a winner and two runners-up selected.

The first prize will be a fully configured, light production Canon imageRUNNER ADVANCE C9070 PRO digital press, which the winner will be able to retain for three years. The second prize will be a 44 inch Canon imagePROGRAF large format solution, which again the winner will be able to retain for three years. The third prize comes in the form of bespoke business consultancy, which the first two prize winners will also receive. The total value of the prizes will be in excess of 100,000 Euros. The competition will run from the end of March to the end of July 2010 and the winners will be presented with their prizes at an awards ceremony in Paris in October 2010.

David Preskett, Director of Professional Print, Canon Europe, explains the rationale behind the competition: “With most of the key territories in Europe still enduring the recession, it’s clear that, to secure their long-term commercial future, printers need to think about their businesses in a new way and take a more entrepreneurial approach towards customers and customer needs. The industry has changed and we are encouraging our customer to adapt to this change – to make a leap into the future of print. We’re therefore launching the Canon ‘Business Leap’ Competition to offer guidance in the preparation of a creative and comprehensive business case. At the same time, we’re giving entrants the opportunity to win a top-of-the-range light production digital press, a Canon imageRUNNER ADVANCE C9070 PRO, together with practical business consultancy from independent experts.

“In running the competition,” continues Preskett, “Canon is setting out to help printers develop profitable businesses for the longer term, while giving entrants the chance to turn their business ideas into a commercial reality. I’d therefore urge any printer who is looking to move into digital printing or any entrepreneur looking to break into this industry to submit an entry!”

Any qualifying person who wishes to enter the Canon Business Leap Competition must register their details on the Canon Ipex 2010 microsite at www.canon-europe.com/ipex, which will be live from 31 March 2010. They will then be able to download an entry form, which should be completed and emailed, together with any supporting documentation the entrant believes will strengthen their case, to This email address is being protected from spambots. You need JavaScript enabled to view it.

The terms and conditions of the competition and a guide to completing the entry form will also be available via the Canon Ipex 2010 microsite and any entrant requiring clarification on a point may also email their question to Canon at This email address is being protected from spambots. You need JavaScript enabled to view it.. The decision of the judges is final and Canon will not enter into any correspondence with any entrant over the outcome of the competition.

Océ and Canon proposed merger

Oce Offices

On 16 November 2009 Canon and Océ announced that they had reached conditional agreement to combine their printing activities through a fully self-funded, public cash offer by Canon for all the outstanding ordinary shares of Océ.

The offer price of €8.60 per outstanding ordinary share of Océ represents a premium of 70% over the closing price of Friday 13 November 2009 and 137% to the average closing price of Océ’s shares over the 12 months prior to 16 November 2009. Canon and Océ will be able to build upon each other’s strong history and proven track record of innovation and customer servicing and will create a strong joint enterprise capable of long term success.

The combination will capitalize on an excellent complementary fit in product mix, channel mix, R&D and business lines resulting in an outstanding client offer spanning the entire printing industry. Océ remains a separate legal entity as a Canon division, headquartered in Venlo (The Netherlands); within this division the Océ brand name is to be maintained and applied in all relevant markets. Océ continues to lead its R&D and manufacturing.

The Management Board and key management will remain in place. Employees will become part of the industry leader. Océ and Canon do not see any material negative consequences as a result of the recommended offer for the existing employment level of Océ, excluding already announced personnel reductions. The Management and Supervisory Boards of Océ fully and unanimously support and recommend the intended offer.

Holders of the depository receipts for Océ’s cumulative preference shares (approximately 19% of the total share capital) agreed to sell their interests to Canon; large shareholder Bestinver Gestion, SGIIC S.A. (approximately 9.5% of the outstanding ordinary shares) has provided an irrevocable undertaking to tender. Canon has acquired 28.05% of the outstanding ordinary shares since 16 November 2009 and received approval from all relevant anti-trust authorities.

Kodak Q4 Revenues Increase and Profits Surge

 

Kodak Logo

Eastman Kodak Company today reported fourth-quarter 2009 earnings from continuing operations of $430 million, or $1.36 per share, on sales of $2.582 billion, reflecting the emergence of a company able to deliver improved profitability especially as the economy recovers.

"Despite a difficult economic environment, we delivered in 2009," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "Our momentum is returning and our strategy is paying off. During 2009, we generated significant traction with our key digital businesses, we achieved sustainable operational improvements across the company, our earnings improved substantially, and we ended the year with more than $2.0 billion in cash on our balance sheet."

The company's fourth-quarter results demonstrate the success of the focused investments that Kodak is making in new products and growth businesses, including consumer and commercial inkjet and digital plates; the successful conclusion of intellectual property licensing agreements; improved profit margins; and a lean cost structure.

Fourth-quarter sales were $2.582 billion, a sequential increase of 45% from the third quarter of 2009 and a 6% increase from the year-ago quarter, including 4% of favorable foreign exchange impact. Revenue from digital businesses totaled $1.991 billion, a 12% increase from $1.779 billion in the prior-year quarter, resulting from the combination of an increase in non- recurring intellectual property licensing revenue and increased demand for consumer inkjet printer systems, kiosk media and digital plates. Revenue from the company's traditional business decreased 10% to $589 million for the fourth quarter. This revenue decline rate was significantly reduced compared to the first three quarters of 2009, reflecting sequentially improved demand across all traditional businesses, particularly Entertainment Imaging.

On the basis of U.S. generally accepted accounting principles (GAAP), the company reported fourth-quarter earnings from continuing operations of $430 million, or $1.36 per share, compared with a loss on the same basis of $914 million, or $3.40 per share, in the year-ago period. Items of net benefit that impacted comparability in the fourth quarter of 2009 totaled $90 million after tax, or $0.28 per share, primarily related to benefits from asset sales and tax-related items, partially offset by restructuring charges and other miscellaneous items. Items of net expense that impacted comparability in the fourth quarter of 2008 totaled $893 million after tax, or $3.32 per share, primarily related to a goodwill impairment charge, restructuring charges, a legal contingency, and tax-related items. (Please refer to the attached Items of Comparability table for more information.)

For full-year 2009, the company reported a loss from continuing operations of $232 million, or $0.87 per share. This compares to a loss of $727 million, or $2.58 per share, in 2008. Full-year revenue totaled $7.606 billion, a 19% decline from 2008. Full-year digital revenue totaled $5.345 billion, a 17% decline from 2008, and traditional revenue totaled $2.257billion, a 24% decline. These results reflect the recession's impact on demand, especially in the first half of 2009. The company expects that customer demand for its digital products will continue to grow, as the economy recovers.

 

Other 2009 details:

 

  • In the fourth quarter of 2009, Gross Profit margin was 34.4% of sales, an increase from 20.4% in the year-ago period. Approximately six percentage points of this increase was driven by productivity improvements and higher demand for digital plates and kiosk media, productivity gains for digital cameras and devices, consumer inkjet, electrophotographic printing and traditional photofinishing, and favorable foreign exchange. The balance of the increase was driven by non-recurring intellectual property licensing agreements.
  • Selling, General and Administrative (SG&A) expenses, on a GAAP basis, were $347 million in the fourth quarter, down 15%, or $61 million, from $408 million in the year-ago quarter, as a result of company-wide efficiency gains.
  • Research and Development expenses, on a GAAP basis, were $86 million in the fourth quarter, down 25%, or $28 million, from $114 million in the year-ago quarter, reflecting the continued focusing of resources to core growth businesses, which require lower research and development investment versus a year ago.
  • Fourth-quarter cash generation, before restructuring payments, was $909 million, compared with $508 million in the year-ago quarter. This corresponds to net cash provided by continuing operations from operating activities of $822 million for the fourth quarter of 2009 and $520 million for the year-ago period. For full-year 2009, cash generation, before restructuring payments, was $45 million, compared with cash usage on the same basis of $147 million for 2008. This corresponds to net cash used in continuing operations from operating activities of $136 million for 2009, compared with a net cash usage of $128 million for 2008.
  • Kodak held $2.024 billion in cash and cash equivalents as of December 31, 2009, up from $1.147 billion on September 30, 2009.
  • The carrying value of the company's debt, on a GAAP basis, stood at $1.191 billion as of December 31, 2009.

 

 

Segment sales and earnings from continuing operations before interest, taxes, and other income and charges (segment earnings from operations), are as follows:

 

  • Consumer Digital Imaging Group fourth-quarter sales were $1.212 billion, a 27% increase from the prior-year quarter. Fourth-quarter earnings from operations for the segment were $380 million, compared with a loss of $41 million in the year-ago quarter. The year-over-year improvement was driven by a combination of higher non-recurring intellectual property licensing revenue; improved profitability in consumer inkjet systems, including an 81% revenue increase in consumer inkjet printer hardware and ink; improved operating performance in Digital Capture & Devices and Retail Systems Solutions; and reduced SG&A expenses across the segment. Excluding the impact of non-recurring intellectual property royalties, segment earnings improved by more than $100 million.
  • Graphic Communications Group fourth-quarter 2009 sales were $779 million, a 5% decline from the fourth quarter of 2008. Fourth-quarter earnings from operations for the segment were $36 million, a $40 million improvement over the year-ago quarter. This earnings increase was primarily driven by operational improvements across all product lines, increased demand for digital plates and enterprise workflow products, and lower raw material costs.
  • Film, Photofinishing and Entertainment Group fourth-quarter sales were $589 million, a 10% decline from the year-ago quarter. Fourth-quarter earnings from operations for the segment were $53 million, compared with earnings of $39 million in the year-ago period. The increase in earnings was driven by significant operational improvements in Traditional Photofinishing, cost reductions across the segment, favorable foreign exchange, and improvement in raw material costs, partially offset by industry-related volume declines in Film Capture, and negative price/mix.

 

"In the second half of 2009 we began to see some improvement in the economy, and that helped to highlight the true strength of our digital portfolio," said Perez. "During 2009, we doubled the installed base for our consumer inkjet printers while maintaining our price premium. In the fourth quarter, we grew sales of commercial inkjet products, including a 33% increase in sales of our VL2000 printing system and enjoyed continued strong customer orders for our PROSPER product line. We delivered positive cash performance before restructuring for the past two quarters and for all of 2009, and our cost structure is providing us with significant operating leverage as the economic recovery continues. We enter the new year with the most competitive digital portfolio ever, strong presence in key markets, and a significant amount of positive momentum. All of this positions us well for improved performance in 2010."

 

Recommended cash offer by Canon for all the issued and outstanding ordinary shares of Océ N.V. to create global leader in printing industry

Canon Logo

With reference to the joint press releases of Canon Inc. (trading symbol CAJ) ("Canon") and Océ N.V. (trading symbol OCE) ("Océ") of 16 November 2009 and 14 December 2009, Canon Finance Netherlands B.V., a wholly owned subsidiary of Canon (the "Offeror") and Océ hereby jointly announce that the Offeror is making a fully self-funded, public cash offer for all the issued and outstanding ordinary shares with a nominal value of EUR 0.50 each in the capital of Océ (the "Shares") at an offer price of EUR 8.60 in cash per Share (the "Offer").

Terms not defined herein shall have the meaning as set forth in the Offer Memorandum

Highlights

  • Canon and Océ aim to create the overall No. 1 presence in the printing industry.
  • The Offer is a fully self-funded and recommended cash offer for all the Shares at an offer price of EUR 8.60 in cash per Share.
  • The Offer represents a premium of 70% over the closing price of Friday 13 November 2009 (being the last trading day before the public announcement of the intended Offer) and 137% over the average share price over the last 12 months prior to 16 November 2009.
  • The Offer presents the best possible way forward for Océ at conditions that are favourable to its Shareholders and all other stakeholders.
  • The Supervisory Board and the Management Board of Océ fully support and unanimously recommend the Offer to all Shareholders for acceptance.
  • The acceptance period under the Offer begins at 9:00 hours, Amsterdam time, on 29 January 2010 and ends at 17:30 hours, Amsterdam time, on 1 March 2010, unless extended.
  • Océ will convene an Extraordinary General Meeting of Shareholders at 14:30 hours, Amsterdam time, on 12 February 2010 at Van der Grintenstraat 1, 5914 HD, Venlo, the Netherlands during which, amongst other things, the Offer will be discussed.
  • The Offer shall be subject to the fulfilment of the Offer Conditions as set out in the Offer Memorandum, including but not limited to, the condition that on the Acceptance Closing Date the number of Tendered Shares together with the Shares that are directly or indirectly held at that time by the Offeror represents at least 85% of the Shares on a fully diluted basis. The Offeror has the right, but not the obligation, to waive certain Offer Conditions, including but not limited to, the 85% acceptance threshold, as further described in the Offer Memorandum.
  • The Depositary Receipt Holders, Ducatus, ASR and ING (approximately 19% of the total share capital), agreed to sell their interests to Canon; large Shareholder Bestinver Gestion S.A., SGIIC (approximately 9.5% of the Shares) has provided an irrevocable undertaking to tender.
  • As at the date of the Offer Memorandum, Canon holds indirectly through the Offeror 23,807,737 Shares, which represent approximately 22.18% of the Company's total issued share capital and 28.05% of the Shares.
 
Further details, and the full release related to the above is available for review on the Canon website