Cortney Kasuba

1
Overview of the Toner Supplies Market

• Cortney Kasuba
• Industry Analyst, Toner Consumables
• Lyra Research

2
Worldwide Laser Cartridge Shipment Growth
Opportunity
3
Worldwide Laser Cartridge Shipment Growth
Opportunity
4
OEMs Continue to Lose Share to Aftermarket
Companies
5
Aftermarketers Cut Time-To-Market
6
Worldwide Laser Cartridge, Container, and Bulk
Toner Revenue Opportunity
7
Worldwide Laser Cartridge, Container, and Bulk
Toner Revenue Opportunity
8
Cartridge Shipments Continue to Outpace Revenue
Growth

• Majority of toner cartridges shipped will
  continue to be monochrome cartridges
• Low-end monochrome toner cartridges fuel shipment
  growth
• Monochrome cartridge revenue growth is flat
• Color cartridge market is expected to more than
  double
• Shift toward low-end machines impacts revenue
• Cartridges for color lasers will make up majority
  of the toner cartridge revenue in 2011
• Aftermarket will continue to gain share
• Aftermarket companies are introducing compatible
  cartridges faster than ever before
• Toner technology has no impact

9
Bulk Toner Market
10
Global Overview Bulk Toner Shipments
11
Two Types of Dry TonerMechanical and Chemical

• Mechanical toners
• Manufactured using a hot compounding process
• Raw materials are blended while molten to form a
  paste
• Raw toner is cooled, then ground
• Average toner particle is about 8 microns
• Chemical toners
• Toner particles are grown from the molecular
  level
• Toner particles as small as 4 microns can be
  reliably produced
• Small toner particles translate to improved
  image quality and faster print times

12
Toner Shipments for Color Lasers Chemical and
Mechanical Toner
13
Prices of Both Mechanical and Chemical Toners
are Falling
14
Toner Revenue for Color Lasers Chemical and
Mechanical Toner
15
Toner Market is Still Dominated by Monochrome

• Monochrome toners will continue to be the largest
  part of the worldwide toner market through 2011
• Monochrome toner growth is flat
• Color toner market is growing at a CAGR of 18
  percent
• Chemical toner is gaining market share slowly
• Mechanical toner technology is improving
• Technology is preferred in many applications
• Prices will continue to decline for all types of
  toners
• Revenue derived from the sale of chemical toners
  will soon outpace revenue from mechanical toners

16
Examination of Printing Costs
17
Toner Cartridge Pricing Trends
18
Toner Cartridge Prices Vary by Country
19
Cartridge Prices Vary by Country
20
Falling Hardware Prices Have Been Offset by
Rising Supplies Prices
21
Low-Cost Printers High Cost per Page (Usually)
22
Printing Costs Continue to Change

• Average cartridge price is pushed down by
  aftermarket competition and shift to low-end
  products
• Toner cartridge prices are affected by region
• China has lowest-cost cartridges
• Cartridges are most expensive in France
• Toner cartridge prices have likely hit a low for
  color lasers
• Yields will continue to drop
• Competition is driving SKU prices down, but
  vendors will continue to quietly raise the cost
  per page
• Non-toner technology typically has most
  attractive cost per page

23
Thank You