POLYGRAPHINTER

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POLYGRAPHINTER THE MAIN PRINTING EXHIBITION IN
RUSSIA, THE CIS AND EASTERN EUROPE THE ONLY AND
THE LARGEST EXHIBITION FOR THE RUSSIAN PRINTING
MARKET October 16 20, 2007 Moscow, Russia,
Crocus Expo Exhibition Centre
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The main sections of the exhibition are

• Publishing systems, scanners, proofing systems
  and software

• Hardware for reproduction, computer design,
  installation and manufacture of printed
  forms, system for realization of
  technologies "computer printing  form",
  "computer printed machine" and digital
  media of technologies

• Printing machines, digital presses, finishing
  units, and consumables

• Control systems, quality control systems

• Accessories, inks, etc.

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New Three exhibitions co-located with
Polygraphinter
PAPEXPO 4th International exhibition of pulp
and paperproducts, new technologies, material
and equipment
PACKCARTON The 4th International exhibition of
machinery,materials and equipment for production
of packaging paper, cardboard, corrugated and
converting equipment
INCONNEXPO The 2nd International specialized
exhibition ofequipment, materials and
technologies for direct mail, mailingequipment
and services
Combining these related exhibitions will lead to
increasing attendance
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Exhibition Organizer Awards
UFI the Global Association of the Exhibition
Industry. Only the most authoritative
exhibitions and trade fairsare involved in
membership of the Global Association ofthe
Exhibition Industry, which organization satisfies
all international requirements.
RUEF Russian Union of Exhibition and Fairs.
The certificate is given to exhibitions for high
qualityorganization and large contribution to
developingeconomic and foreign economic
relations.
The exhibition endorsed by Chamber of Commerce
and Industry of theRussian Federation
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Statistics summary POLYGRAPHINTER-2005
Net square area 280 000 NSF. Number of
Exhibitors 320 from 22 countries Number of
Attendees from the RF 22 271 Number of
Attendees from foreign countries 1, 593
MVK Holding Company
Is the only company in Russia which compiles
data, reviewedby an independent audit firm,
Ernst Young Company accordingto the FKM rules
accepted in Europe
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ATTENDEES 23, 864
Attendee from theRussian Federation 93
Foreign Attendees 7
Representatives from 46 countries and 78 regions
of the Russian Federation attended
Poligraphinter in 2005. Attendance increased by
8,500 over 2004
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What attendees were interested in?
Attendees interest by product
Post Press equipment and technologies
Office equipment
Types and technologies of printing forms
Equipment and technology for special kinds of
printing
Devices and systems for controland management
for printing quality
Equipment and technologiesfor industrial printing
Printing equipmentand technologies
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Attendees profile
Owners, Presidents,CEOs 32
Specialists 45
Managers 23
Polygraphinter exhibition for professionals!
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Exhibitors 320
Exhibitors fromthe Russian Federation 72
Foreign Exhibitorsfrom 22 countries 28
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Polygraphinter represents about 1,000 trade
marks.Well-known brands are among them
MARK ANDY MITSUBISHI PRESSTECH RYOBI SUN
CHEMICAL XANTE XEROX X-RITE
ADAST AGFA APPLE CANON DUPLO EPSON FUJIFILM GMP
GOSS HEIDELBERG HEWLETT-PACKARD KBA KODAK KOMORI
KONIKA MINOLTA MAN ROLAND
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Country booths of USA, Germany, Great
Britain, China and Brazil will be represented
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Polygraphinter is a place for international indust
rial conferences and forums
Printing Industry. Condition, Tendencies,
Perspectives forum will be held in
2007. Qualified specialists from Russia, USA,
Germany, Great Britain, Italy, France and China
will participate in the forum.
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Participating in Polygraphinteris the most cost
effective way to

• Introduce your company as a major player in the
  printing and publishing market
• Strengthen your relationship with current
  customers
• Meet scores of interested prospects for your
  companys products
• Sell your products
• Establish your company as a reliable supplier and
  service provider
• Meet dealers and distributors

Exhibiting in Polygraphinter is the most
effective wayto reach the Russian printing
market
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Follow on-line info
POLYGRAPHINTER www.polygraphinter.ru PAPEXPO ww
w.papexpo.ru PACKCARTON www.pack?arton.ru INC
ONNEXPO www.ic-expo.ru
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To participate contact North American Office of
?V? Ltd. (Toronto, Canada) Phone [phone]
3666, Fax [phone] E-mail
eshatrova_at_mvkexpo.com http//www.mvkexpo.com For
American Pavilion contact NPES Michael Hurley,
Director, International Trade Phone 1 (703)
264-7200, Fax [phone] E-mail
mhurley_at_npes.org http//www.npes.org
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THE STRUCTURE OF THE PRINTING INDUSTRYOF THE
RUSSIAN FEDERATION Over 6,000 printing houses
Private (including large manufacturers with a
total number of employees over 500) 85 of
enterprises
85
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State property 15 of enterprises
(including newspapers 40, books and magazines
60)
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Sustained annual growth Printing industry
5-7 Printing paper manufacturing 20
Over the last 5 years imports of printing
equipment totaled more than 600 million
Imports of printing products to the Russian
Federation were 400-500 million
Market volume of printing machinery in 2005
accounted for 200 million, mainly due to imports
During the last year imported printing
consumables were almost 1 billion
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In 2004 Russia acquired 2,100 various items of
printing machinery
Currently more than 200 CtP systems are
installed, from 2001-2005 over 30 web
multi-color presses were installed
600 pre-press systems
1000 printing presses
500 Binding products and finishing equipment
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In general, over 65 of installed equipment is
over 10 yeas old and needs renovation
The total amount of products printed for Russia
abroad is between 400-500 million
To produce those products in Russia, printers
need to purchase pre-press, printing and
finishing equipment totalling 400-500 million
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DYNAMICS OF PRINTING EQUIPMENT CONSUMPTION
(based on data of imported sheet-fed printing
presses) Source database of the State Customs
Committee
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Oversize (large format) printing presses (size
more than 28 ? 40)
In 2005 Russia imported a total of 6 machines.
As compared to 2004 imports of large-size presses
has increased by 50
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Full-size printing presses (from 26?40 to
28?42)
The greatest progress import volume has grown by
21/2 times as much or by 267!
In 2005 Russia imported a total of 48 presses
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Half-size printing presses (from 20?28 to
21?30)
This is the main working press at most medium
and even large regional printing houses.
Imports of this category of presses is one of the
best indicators of the printing industrys
current state.
In 2005 a total of 89 half-size printing presses
were imported.
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Small-size printing pressessize ?3 (17?22), ?3
(15?19) to ?2 (20?26)
Import growth is almost double 221. In 2005
Russia imported a total of 474 presses
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General results of 2005
Russian printing houses have acquired 620
printing presses in 2005 a 91 increase over
2004.
The biggest import increase was for full- and
small-sizeprinting presses whereas medium-size
printing presses were less compared to 2004.
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DM in Russia

• Mikhail Kapatsinskiy
• President
• Russian DM Association

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Express-pollHave you seen a bear in Russia
lately?

• 100 of respondents only at the Zoo
• This is not the only change in Russia.
• But we will speak about changes in DM.

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Russia today

• 17 million sq. km. 1/9 of dry land
• 145.2 million people
• income increase approx. by 3 times in the past 5
  years
• good reaction of consumers to mailings

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Growth of DM market in Russia

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What causes the boom?

• The market is young and competition is low
• Stricter limitations in advertising
• Rapid development of business-sectors
• bank loans
• loyalty programs
• publishing
• FMCG
• Concentration of international brand in the
  highly potential market of Russia gt active use
  of DM-technologies
• High level of response

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Market infrastructure
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Call Centers
Data Bases

• Data base owners do not allow rent of their
  databases, but prefer to work with their
  permanent partners

• Unlimited opportunities for incoming calls
• Free service numbers (800)
• More and more large professional CC
• More CC in large cities

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Direct mail

• Modern technologies of personalizing and
  inserting
• Capacities up to 1 000 000 personalized mailings
  per day in biggest Letter Shops
• Rapid development of service

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Internet SMS

• Service providers offer all kinds of services for
  response receiving and processing
• Lots of web-resources with lists of subscriptions
  etc.

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Fulfillment

• Response processing
• Entry into data base from any type of carrier
• Warehousing and stock-taking
• Complex packages

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Future trends
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Russia 2003 10 mailings per familyTrend for
2008 30-50 mailings
Source Post of Russia
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Market growth forecast

• 2006 30-50
• 2007 20-40
• Major growth factors
• banks
• loyalty programs

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High-potential segments for investment

• Mail order
• Fulfillment services (average growth by 50-70
  per year)
• Lifestyle data bases (users tobacco, mail order,
  finance, publishing etc)
• Courier delivery (growth rate with some companies
  up to 100 a year).
• Consulting

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RADM

• The Russian Association of Direct Marketing
  (RADM)
• www.radm.ru
• 27 companies from 4 countries
• Russia, Ukraine, Kazakhstan, Finland
• offering services in Russia
• data bases
• fulfillment
• letter-shops
• creation and management
• print production for DM
• courier service
• postal service