PremiumToner versus UniversalToner Information on Advantages Disadvantages for

Premium-Toner versus Universal-Toner Information on Advantages & Disadvantages for a better choice. Presentation at BUSINESS INFORM Exhibition, Moscow Moscow/Russia, May 20 -22, 2014 held by: Simon E. Weiss (MBA) CEO, CROSS Imaging-Supplies Gmb. H, Stäfa/Switzerland CROSS Imaging Supplies Zurück zur ersten Seite

0. Contents: 0. Contents 1. Company Introduction 2. Market Segmentation 3. Technical Trends and requirements in Laserprinting 4. OEM-Toner – increasingly complex and device-tailored 5. Market requirements 6. How to meet these different requirements ? 7. Premium-Toner is different from Universal-Toner 8. When is Premium-/Universal-Toner needed ? 9. Conclusion CROSS Imaging Supplies Zurück zur ersten Seite

1. Company Introduction Established in 2005 and based near Zürich/Switzerland. Dedicated to Japan made high-quality compatible toner (bulk/finished) for all major OEM brand Copiers/MFPs/LBPs to distributors only (wide/deep product-range) CROSS Imaging Supplies Zurück zur ersten Seite

1. Company Introduction Strategic business partner of the leading Japanese Toner-Manufacturer for EMEA (incl RUS) being active in Russia since 2005 through major distributors. Outsourced logistics and warehouses in Singen/DE and Rotterdam/NL for toner in cartridges and in bulk. CROSS Imaging Supplies Zurück zur ersten Seite

1. Company Introduction Drop-shipping (bulk only) Shipping (bulk+FP) (ex Factory-Warehouses) (ex EUR-Warehouses) From USA From Japan From HK From NL From DE To currently approx 60 Distributors in EMEA/RUS CROSS Imaging Supplies Zurück zur ersten Seite

2. Market Segmentation Fortunately, the market is segmented with Quality oriented and Price oriented customers and it is dynamic (changing). Top-Segment Smallest volume, highest quality/cost/price Tendency: Market volume increasing Medium-Segment Medium volume, mediumquality/cost/price Tendency: Market volume shrinking Low-Segment Largest volume, Lowest quality/cost/price Tendency: Market volume increasing CROSS Imaging Supplies Zurück zur ersten Seite

3. Techical trends & requirements in Laserprinting Area Market Printing Speed Image-Quality Economics/ Environment Trend From Monochrome to Colour Lower (OEM) prices for toner Faster devices for Home Offices and Offices/Departments Higher resolution Better halftones/colours Lower toner consumption Longer Life-Time of OPC/Developer-System REACH conformity Consequences Focus on Colour Reduce cost New raw-materials /processes for better fusing Finer particles Narrower particle distribution Higher Transfer-Efficiency Long-Life developer Trickle-System Toner REACH conform raw-materials CROSS Imaging Supplies Zurück zur ersten Seite

4. OEM Toner - increasingly complex and device-tailored Properties Parameter Effect Physical Particle Size Distribution Flowability, ID Grade of Dispersion Resolution Apparent Density Tribocharge, BG, Offseting Humidity Resistance Transfer, Yield Polymer Kneading, Grinding CCA Dispersion, Tribocharge Carbon Black, Magnetite ID Additives Cleanup, Flowability Chemical CROSS Imaging Supplies Zurück zur ersten Seite

4. OEM Toner - increasingly complex and device-tailored Properties Parameter Effect Magnetic Saturation Toner Transport Remanence Brush/Roller Structure Coercivity MICR Tribocharge ID, Transfer Dielelectric Properties Tribocharge, Cleanup Resistivity Transfer, Resolution Thermal Melt Flow Index Dispersability, Fixing Glass Transition Temp Fusing, Storage Mol. Weight Distribution Fixing- and Offset-Range Electrical CROSS Imaging Supplies Zurück zur ersten Seite

5. Market requirements Requirements What Customer may say Very low price/poor quality but very universal "As long as it prints it's ok…" Low price/low quality "Low quality prints for letters and very universal and graphics…" Medium price/reasonable quality "Relative good letter and but not universal and graphic quality…" Medium price/reasonable quality "Relative good letter/graphic and very universal quality with some deficits…" High price/OEM-quality "Very good letter and graphic like OEM - not universal quality - like OEM…" Low dev. Emerging Highly dev. Markets XXXX XX X XXX X X XXX (X) XX XXXX CROSS Imaging Supplies Zurück zur ersten Seite

5. Market requirements Aftermarket-Requirements are specific and additional Market-Requirements we must cope with. Universality of a toner is required by the aftermarket Distributors, Fillers and Recyclers for various cost saving/operational reasons – not by the dealer or end-user. The Aftermarket does not really care how toner is being manufactured (i. e. Pulverized or CPT-made). CROSS Imaging Supplies Zurück zur ersten Seite

6. How to meet these different requirements (Conventional vs CPT-Toner) ? CPT (Spherical) CPT (Potato-Shape) Conventional w. After-Treatment Higher Quality Higher Cost Higher Prices Very specific Conventional w. o. After-Treatment Lower Quality Lower Cost Lower price Very universal CROSS Imaging Supplies Zurück zur ersten Seite

6. How to meet these different requirements (Conventional vs CPT-Toner) ? Raw Materials Pre. Blending The Conventional Toner Production Process with After-Treatment is most suitable for the Aftermarket. Melting / Kneading Pre. Grinding Jet Milling Oversize Classifying Fines Classifying After. Treament Additive Blending Toner CROSS Imaging Supplies Zurück zur ersten Seite

6. How to meet these different requirements (Conventional vs CPT-Toner) ? Conventional Toner with After-Treatment Spherical shape particles for longer drum-life Relatively narrow size distribution Less waste Better Image-Quality (i. e. half-tones) Lower cost then Chemically produced toner. CROSS Imaging Supplies Zurück zur ersten Seite

7. Premium-Toner is different from Universal-Toner Premium-Toner are like OEM-toner and made (tailored) to perfectly work in particular machines. Premium-Toner do not compromise on Image-Quality or Performance. Premium-Toner have a relatively narrow range of compatibilities. CROSS Imaging Supplies Zurück zur ersten Seite

7. Premium-Toner is different from Universal-Toner are made to work reasonably well on a wide range of machines but usually have „deficits“ on some of the machines. Universal-Toner are a „compromise“ in Image-Quality and Performance in favour of a wide compatibility. Important is to know the limitations an Universal toner has in terms of Image-Quality, Performance (Forward-/ backward compatibility, yield) CROSS Imaging Supplies Zurück zur ersten Seite

7. Premium-Toner is different from Universal-Toner Example: Kyocera Mita (OEM) vs Premium and Universal toner Machine-Speed Cartridge type OEM type CROSS Premium CROSS Universal FS-1000… 1050 14 ppm TK-17 A ED-18 PYU-01 FS-1018… 1118 18 ppm TK-18 A ED-18 PYU-01 KM-1500… 1820 15 -18 ppm TK-100 A ED-18 PYU-01 FS-2000 30 ppm TK-310 B ED-33 V 2 -- FS-3900 37 ppm TK-320 B ED-33 V 2 FS-4000 45 ppm TK-330 B ED-33 V 2 FS-2020 35 ppm TK-350 B ED-33 V 2 FS-3920 42 ppm TK-360 B ED-33 V 2 FS-4020 DN 45 ppm (A 4) TK-430 B ED-33 V 2 FS-6950 32 ppm (A 4) TK-440 B ED-33 V 2 Maschine-Series ---- CROSS Imaging Supplies Zurück zur ersten Seite

7. Premium-Toner is different from Universal-Toner Example: Kyocera Mita (OEM) vs Premium and Universal toner Machine-Speed Cartridge type OEM type CROSS Premium CROSS Universal 16 -20 ppm (A 4) TK-410 C KM-04 PYU-01 TASKalfa 180… 221 18 ppm (A 4) TK-435 C KM-04 PYU-01 TASKalfa 300 i 30 ppm (A 4) TK-485 C KM-04 PYU-01 FS-1028 MFP… 1350 DN 30 ppm TK-130 D ED-13 PYU-01 FS-1100 28 ppm TK-140 D ED-13 PYU-01 FS-1120 D 30 ppm TK-160 D ED-13 PYU-01 FS-1320 D 35 ppm TK-170 D ED-13 PYU-01 22 ppm/30 ppm TK-1130 D ED-13 PYU-01 35 ppm/ TK-1140 D ED-13 PYU-01 Maschine-Series KM-1620… 2050 FS-1030 D, 1130 MFP FS-1035, 1135 MPF CROSS Imaging Supplies Zurück zur ersten Seite

7. Premium-Toner is different from Universal-Toner Example: Kyocera Mita (OEM) vs Premium and Universal toner Machine-Speed Cartridge type OEM type CROSS Premium CROSS Universal FS-1800, 3800 19 ppm TK-60 D ED-60 PYU-01 FS-1900 16 ppm TK-50 D ED-60 PYU-01 FS-1920 28 ppm TK-55 E ED-55 PYU-01 28 ppm/33 ppm TK-65 E ED-65 PYU-01 16 ppm 22 ppm 32 ppm (A 4) TK-110 TK-120 TK-440 F F F ED-65 PYU-01 Maschine-Series FS-3820, 3830 N FS-720… 1116 MFP FS-1030 D, 1030 DN FS-6950, 6979 DN 6 OEM toner > 6 Premium-Toner > 1 Universal-Toner not replacing TK-310…TK-440 (ED-33 V 2) CROSS Imaging Supplies Zurück zur ersten Seite

8. When is Premium-/Universal Toner needed ? When is Premium-Toner needed: Where highest (OEM-equivalent) image-quality, performance and reliabiliy of the machines is essential (MPS- Environments, important Corporate and Privat-Accounts). Typically large distributors with a large customer-base (Filling-Volume) that allows to offer different qualities for different needs and budgets. CROSS Imaging Supplies Zurück zur ersten Seite

8. When is Premium-/Universal Toner needed ? When is Univeral-Toner needed: Where price is more important then OEM equivalent quality (Universities, Schools, Public Organizations, Private- Accounts). Typically medium size and smaller distributors with a smaller customer base (Filling-Volume) where it is commercially not feasible to keep stock of different qualities for different needs and budgets. CROSS Imaging Supplies Zurück zur ersten Seite

9. Conclusion Advanced Copiers/MFPs/LBPs are complex and need «tailored» (OEM-) Toner to meet these technical requirements. Premium-Toner are engineered to work like OEM-toner. Universality is not required. Aftertreated Conventional Toner seem to be most suitable to meet today’s technical and marketrequirements (cost, performance, quality). CROSS Imaging Supplies Zurück zur ersten Seite

9. Conclusion Both – Premium- and Universal-Toner have their place but do have different qualities and cost (prices). The more universal a Toner is the more it is a compromise in terms of Image-Quality and performance. Inform yourself and you customers about these advantages and disadvantage for their better choice. CROSS Imaging Supplies Zurück zur ersten Seite

CROSS Imaging Supplies. Thank you. CROSS Imaging Supplies Zurück zur ersten Seite