steve green - the transformation

The Transformation

Steve GreenRegion Managing Director,Consumer Digital Group & Graphic Communications Group,Asia Pacific Region, Eastman Kodak Company

A New Kodak is emerging

“The idea gradually dawned on me, that what we were doing was not merely making dry plates, but that we were starting out to make photography an everyday affair… to make the camera as convenient as the pencil."

- George Eastman

The beginning of Kodak

Where did ‘Kodak’ come from?

LuxembourgRomania

Italy

NewZealand

Sweden

Corporate HeadquartersRochester, NY

Barbados

Austria

AustraliaArgentina

Bermuda

Brazil

Canada

Chile

Portugal

Dominican Republic

Denmark

China

Egypt

Finland

Greece

Hong KongIndia

Iceland

Hungary

Indonesia

Japan

Poland

Mexico

Malaysia

France

England

Peru

Switz.

South Africa

Spain

RussiaGermany

Thailand

Taiwan

Ukraine

United States

Scotland

Norway

Korea

Neth.Bel.

ColombiaPanama

Uruguay

SingaporePhillipines

LebanonTurkey

Dubai

Kodak operating locations

Kodak Asia Pacific Region

Australia

New Zealand

JapanKorea

India

Greater China Cluster

South East Asia

Regional Headquarters

Beijing

Philippines

Singapore

Malaysia

Indonesia

Thailand

Taiwan

SeoulTokyo

New Delhi

Mumbai

ShenzhenGuangzhou

ShanghaiShanghai

Chennai

Brisbane

Auckland

Vietnam

Hong Kong

WuhanXian

Chengdu

Kolkata

Manufacturing facilities:

- Gunma, Japan

- Shanghai, China

- Xiamen, China

- Wuxi, China

- Goa, India

- Malanpur, India Melbourne

Sydney

Perth

Pakistan

You didn’t know, did you?

About 70 million pictures are captured daily with Kodak digital

cameras or film.

Kodak invented the digital camera in 1975.

That 40% of all printed material is touched by Kodak technology.

All Oscar-winning Best Pictures have been on Kodak film - 80 years!

Kodak technology is used to print 80% of the world's scratch-off lottery

tickets.

…and there is more!

Kodak Gallery has more than 70 million members and manages

over 4 billion photos!

Our 39 megapixel image sensor, the world's largest, is used in 3 out of 4 medium format cameras and backs.

Everyday ~5% of all U.S. mail is printed by our Kodak Versamark printers.

Cinesite, a Kodak subsidiary, creates visual effects for feature film and

television.

Our digital intermediate technology was used on 80% of all feature films in 2007.

The New Kodak

Film Photofinishing Entertainment Group (FPEG)

Consumer Digital

Group (CDG)

Graphic Communications

Group (GCG)Other

Entertainment Imaging

Film Capture

Aerial and Industrial Markets

Enterprise Solutions

Digital Print Solutions

Prepress Solutions

Document Imaging

Security Solutions

Inkjet Systems

Digital Capture and Devices

Image Sensor Solutions

Retail Printing Solutions

Consumer Imaging Services

Display

for filmmakers and entertainment

The world’s imaging expert

for graphic communicatorsThe world’s imaging expert

for business, government and OEMs

The world’s imaging expert

The New Kodak: 2008 Revenue

~60% of Kodak’s earnings from operations is digital in 2008

Traditional(Film Photofinishing Entertainment Group)

The New Kodak is 70% digital revenues.

Digital(Consumer Digital Group &

Graphic Communications Group)

Business to

ConsumerBusiness to

Business

The New Kodak is 60% higher-margin commercial businesses.

Output

Capture

The New Kodak digital businesses are 60% output with

associated fast growing annuities businesses.

Greater than $7B in 2008

Our Consumer Digital Group and Graphic Communications Group

businesses share IP, innovation, sourcing and

best practices.

Digital Business: Critical Mass and Healthy Growth

2008 – 2011 Digital Business CAGR = 10% - 12%

Consumer Digital Group

Graphic Communications

Group

Geographic Balance: Global Stability and Growth

• Strong brand worldwide

• Well positioned to take advantage of growth outside the U.S.

Kodak revenue/spend outside the US is 60%

2008 Revenue/Spend

USoutsidethe US

Key Differentiators

Strong Worldwide Share Positions

• Transactional production inkjet• Color digital printing systems

(electrophotography)• Distributed (desktop) document scanning• Digital cameras• Kodak Gallery

11##

33TOPTOP

• Thermal CTP systems• Digital printing plates• Unified workflow software

(commercial printing)• Production (mid to high volume)

document scanning• Entertainment films• Film capture• Color negative paper• Kiosks and media

80%Kodak Revenue

80%Kodak Revenue

AddedTogether =

AddedTogether =

Below Above

Gross Profit % vs. Corporate Average

Low

Hig

h

Gro

wth

Commercial Inkjet

KodakGallery

2008 Digital Portfolio: Built to Grow

EP

Retail

Solutions

Enterprise Solutions

Sensors

Digital Capture

Scanners

ConsumerInkjet

Digital Prepress

2008 Avg.

… it’s an incredible success story!

11 digital product lines

provide 2/3 of our revenue

Kodak holds top 3 market share

in almost all those product lines

More than HALF didn’t exist at Kodak 4 years ago

Brand Transformation

Winds of Change Video

Perceptions of Kodak Over the Years

Trustworthy

Reliable

Caring & Human

Prints &Memories

Trustworthy

Reliable

Caring & Human

Prints &Memories

Film rolls

Traditional

Not high-tech

O L D N E W

product roadmaps

digital services

public relations

customer experience

web site

co-marketing

brand licensing

brand identity

product advertising

image advertising

product design

Today We Are …

InnovativeHigh-tech

Leader in new imaging categories

Modern, young

Kodak at the Beijing 2008 Olympics

Kodak at the Beijing 2008 Olympics

Kodak Image Center showcase digital printing technologies (Nexpress & workflow) producing on-demand, full-color materials, postcards, newsletters.

The Kodak Experience - self-service kiosks

Accreditation and ID Services utilizing Kodak scanner, camera & thermal printer

Sponsorships…

"We are thrilled to expand our relationship with Kodak …," said Tim Cindric, President of Penske Performance, Inc. "I am excited to see the familiar Kodak yellow and red on the track at Talladega in April as they

return to Nextel Cup primary sponsorship.”

"Our motorsports relationships help us create business opportunities with other sponsors and racing enthusiasts, whether they're die-hard

Nascar fans or business partners in the racing community," said Jeffrey W. Hayzlett

Kodak Episode/Key Results

-4.4 Kodak mentions/minute for 43 minute episode

-6.3 Rating (Apprentice Premier: 4.9; Desperate Housewives: 7.5; CSI: 5.9; 60 Minutes: 4.2)

-Total Impressions/Reach = 89,268,000

-Sales Doubled the Week Following the Show

PR Sampling

“Lennox Lewis @ CES”Jan. 17 & 18, 2008Viewership: 3,268,000

“Gene Simmons Appearance”Jan. 18, 2008Viewership: 2,100,000

"Inner Tube: Dots All“Dec. 6, 2007Circulation: 2,791,680 (Print and Online)

"NBC Shares 'Apprentice' Wealth“Dec. 6, 2007Circulation: 876,585 (Print and Online)

“Seen & Heard” (Lennox Lewis @ CES)Jan. 16, 2008Circulation: 1,310,931

Kodak Has Some Fun in Printer SpotJan. 22, 2008Circulation: 154,751 (Online)

RollingStone.com "Gene Simmons Exhiled from Planet Kodak“Jan. 18, 2008Circulation: 5,916,260 (Online)

"Kodak handiwork on 'Apprentice' episode“Jan. 18, 2008Circulation: 149,386

360 Marketing Campaign: At Retail

Integrated Content into Existing Activities

-FSI to 40M-Promotions-Themed Merchandising-Themed Demo Days @ >1500 stores

360 Marketing Campaign: Kodak Online

Microsite – kodak.com/go/apprentice-Content Links, Poll, Printable Projects- Kodak store Promo-Photo Contest:

-Entries: 4,183-Views: 1,082,963

Blogs-Used for Behind the Scenes stories

360 Marketing Campaign: Events

-CES-Lennox Lewis Guest Appearance

-500 Autographs-50,000 Booth Visitors-7 New Media Interviews-17M Impressions

-Employee Celebration-Viewing Parties Across the Country-Home Parties/Kits

360 Marketing Campaign: Other Online

NBC.com-Banners: 8M impressions, .37 CTR-Pre-roll: ~800k impressions; .19% CTR-18.48% interaction rate (electronics benchmark 7.13%)

AccessHollywood.com: Celebrity Apprentice ‘Clip of the Week’-337,883 impressions, .13 CTR-Pre-roll: 14,633 impressions, 0.9 CTR

Brand Activation

Kodak at the Beijing 2008 Olympics

Kodak 2.0

Kodak 2.0

Moments =

Momentum

Kodak Momentum

Q&A Session

Thank You!