tour hp science of supplies 2010

The HP Science of Supplies Tour

Roundtable

Milan July 1st

© 2008 Hewlett-Packard Development Company, L.P.The information contained herein is subject to change without notice

Milan July 1st

Agenda

• 10:30 – 12:00: Introduction to the Science behind Original HP Supplies

• 12:00- 13:00: Roundtable discussion• 12:00- 13:00: Roundtable discussion

• 13:00 : Lunch

Why we are here

• Supplies are a critical component to a consumers printing system

• Some consumers perceive Original HP supplies “costly” and turn to alternative versions

• But what consumers don´t always realise…• But what consumers don´t always realise…

• Original HP supplies are backed by an investment of more than $1 billion annually in imaging and printing research and development

• Original HP supplies are designed to work as a system to work together optimally and deliver consistent and superior print quality

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Why printing supplies matter – the untold difference

LASERJETLASERJETLASERJETLASERJET

Did you know…

A toner particle is 1/16 the diameter of a human hair

If you arrange all the toner particles from a single cartridge in a line, edge to edge, they would reach about 40.000km or the entire distance around the equator

The forces on toner particles are greater than 10X the force of gravity

There are five billion toner particles in one cartridge

Developingsleeve Developing unit

Electricalcharging roller

Electrical charging 1

Fusing 5

Laser exposure2

The electro photographic process

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Photosensitivedrum

Cleaner unit

TonerCleaningblade

Transferroller

Fusingunit

Paper

Cleaning 6

Transfer 4

Fusing 5

Development3

Toner

There is no such thing as ‘universal toner’

Resin

External additive

Colorant

Wax

Charge control agent

Colour Design

Dispersion Technology

Heat Performance Design

Molecular Design

Charging TechnologySurface Treatment

Molecular Design

Heat Performance Design

Molecular Design

“Other” internal additives

e.g. magnetic

e.g. electrical

Toner is specifically engineered for & with each new printer series. Chemical, electrical and physical properties are designed to meet speed, size, energy-use and other criteria.

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On the printer side, fusing temperature, pressure, electrical charging of imaging drum and transfer roller are specified based on chemical, electrical and physical properties of toner particles.

Engineering new toner takes 3-4 years.

Total Cost of Printing

+ Wasted toner, ink, and paper+ Labour cost to reprint & replace+ Cleaning up toner leaks and spills

Price of printer+ Price of supplies___________________________________

Visible costs

Hidden costs

Visible costs

Hidden costs

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+ Labour cost to reprint & replace+ Cleaning up toner leaks and spills+ Printer downtime+ Productivity loss+ Other hidden costs _______________________________________________

= Total Cost of Printing

HP print quality is consistent & superior*

•Over 30% of the pages inspected from the remanufactured cartridges tested were of limited or no use

15

20

25

30

35

Limited usenot for external distribution

Limited usenot for distribution

Comparing print quality

unusable30+%

% of pages

<1%3,9%

26,8%

Inconsistent print quality can lead to lowered productivity and costly reprints

•96% of the pages inspected from the Original HP cartridges tested were acceptable for all uses0

5

10

Remanufactured brands

HP

% of pages

<1%<1%2,8%

3,9%

*Source: www.qualitylogic.com/tonertest.pdf

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Tests confirm HP’s proven reliability

•51 out of the 168 remanufactured cartridges tested exhibited some kind of problem, including cartridges that had problems right out of the box, failed prematurely or printed a large number of pages

Comparing reliability

40

50

60

# of problem cartridges

Premature Failure

Dead on arrival

5122

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or printed a large number of pages that were of limited or no use.

•None of the Original HP LaserJet print cartridges exhibited reliability problems*.

0

10

20

30

# of problem cartridges

Remanufactured brands

HP

50% or more of the pages for limited or no use

Premature Failure

0

* 24 HP cartridges tested.*Source: www.qualitylogic.com/tonertest.pdf

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Original HP LaserJet Print Cartridges -an investment that pays you back!

Productivity √

Cost √

Environmental Footprint

Environment √

INKJETWhy printing supplies matter – the untold difference

Original HP Inks ProvideBEST VALUE FOR MONEY

VALUEVALUE == RELIABILITYRELIABILITY

QUALITYQUALITY++

EQUATIONEQUATION

== RELIABILITYRELIABILITY

AFFORDABILITYAFFORDABILITY

++

Why does the ink cartridge matter?

A HP inkjet print cartridge is a high-tech product. The microscopic nozzles of the printhead are firing over 30 million ink drops/sec. The ink formula is capable to generate 72.9 million colours and can last for 4 generations*.

The HP inkjet print cartridge is not just a vessel for ink.

Heating resistor

Printheadnozzle

Firing chamber

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Bubble Growth Bubble Nucleation

Bubble growth & drop ejection

Replenishing ink

resistor nozzlechamber

* When using the right combination of ink and HP media

Why does ink matter?

HP ink is not just coloured water.

Colorant

Surfactant

Polymer/Binder

Humectant

• Interacts with all elements of the printing system

• Must deliver high quality on various media

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Humectant

Anti-curl additive

Anti-kogation additive

Preservative

Chelation agent

Buffer

Co-solvent

Water

(figure does not represent relative proportions)

on various media

• It takes 3 to 5 years to developa new ink formula

• HP invests more than a billion dollars annually in research and development on imaging and printing.

2010 QualityLogic tests show HP ink cartridges outperform refilled alternatives

A total of 1022 cartridges were tested comparing Original HP ink to leading

• Store / branded refilled ink cartridges

• Ink cartridges refilled by refill service providersproviders

1. A QualityLogic 2010 study compared Original HP inkjet print cartridges (45, 78, 56, 57, 339 and 344) with refilled ink cartridges sold in Europe. For details, see http://www.qualitylogic.com/2010hpinktestemea.pdf

Results: Original HP ink cartridges produce significantly more printed pages and perform more reliably than refilled ink cartridges

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Get more pages, using Original HP ink

On average, Original HP

Count on Original HP ink cartridges to produce more pages than refilled cartridges

HP delivers more pages

On average, Original HP ink cartridges printed over 34% more pages than

refilled cartridges tested and printed as much as 350

more pages1

1. A QualityLogic 2010 study compared Original HP inkjet print cartridges (45, 78, 56, 57, 339 and 344) with refilled ink cartridges sold in Europe. For details, see http://www.qualitylogic.com/2010hpinktestemea.pdf

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HP reliability can’t be matched

Original HP ink cartridges provide highest reliability

1 out of 6 REFILLEDcartridges FAIL

Testing cartridge reliability

cartridges FAIL

More than 15% of all the tested refilled ink cartridges leaked,

streaked, or failed either during use or right out of

the box.1

1. A QualityLogic 2010 study compared Original HP inkjet print cartridges (45, 78, 56, 57, 339 and 344) with refilled ink cartridges sold in Europe. For details, see http://www.qualitylogic.com/2010hpinktestemea.pdf

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AFFORDABILITY for the Customers

•Low Price for cost sensitive customerswith low usage need – as low as 7.99€

•Low Cost Per Page with XL cartridges for customers with high usage need – as lowas 1,3 centsas 1,3 cents

•Up to 20% savings with 2-Packs, Photo Packs

• Up to 30% savings with promotionaloffers

Why Original HP inkjet print cartridges ?

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Environmental Footprint

Value for Money

HP ORIGINAL INKS ARE ENVIRONMENTALLY FRIENDLY

� Up to 70% of cartridge housing is made of recycled plastic� Packaging reduced by more than 40% over last few years

• HP ink cartridges are built with the respect of the environment in mind

• HP recycle HP ink & toners via HP Planet Partner

� Simple customer friendly process � In 32 countries in EMEA� Free of charge

• HP recycle HP ink & toners via HP Planet Partner Program

BEYOND THE CARTRIDGEBEYOND THE CARTRIDGEBEYOND THE CARTRIDGEBEYOND THE CARTRIDGEWhy printing supplies matter – the untold difference

HP Media Highlights

• HP No.1 selling worldwide brand of inkjet photo papers¹

• HP leading in light fade resistance of inkjet photo prints²

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• HP named 2nd brand for office papers in EMEA in 2009 –from 3rd place in just one year³

¹ Based on total sheets sold worldwide 2009. Source: Lyra Research, Inc.

² Based on Wilhelm Imaging Research Inc. For details see www.wilhelm-research.com

3 Source: Opticom International Research, January 2009

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HP MEDIA

HP offer a wide portfolio of Media to meet key customer needs

inkPhoto

BETTER BEST

Did you know? HP Advanced & EVD Photo paper are universally compatible

laser

Communication GOOD

Look below the surface –HP photo media is more than ‘just’ paper

Coated HP Paper

Imaging layer

Undercoat

Polyethylene layer

Plain Paper

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Base substrate

Polyethylene layer

BackcoatStacking layer

Cellulose

What is ColorLok TM

•Paper Standard

•Breakthrough technology−Unique−Chemical in nature − Papermaking friendly to − Papermaking friendly to maintain machine efficiency

•Designed to work with office ink and laser printers:− Bolder Black−Vivid colours− Better Dry-time− Sharper Images−Higher Reliability

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CLOSING THE LOOPCLOSING THE LOOPCLOSING THE LOOPCLOSING THE LOOPHP Environment & Supplies

HP Eco solutions for printing

HP is committed to being the most environmentally responsible IT companyin terms of:

HP helps customers reduce the environmental impactof printing through:

“Our” house “Your” house

HP has been delivering environmental solutions for 50+ years

in terms of:

• Energy efficiency

• Resource conservation

• End of Life programs

• Energy efficiency

• Resource conservation

• “Digitally green” alternatives

• Reuse & Recycling

“Our” worldInnovative ways to build a sustainable economy

The Environment: Life Cycle Assessment Study

Distribution More than 92% of the environmental

impact of a EOL

Use

impact of a cartridge occurs AFTER production

Source: Life-cycle assesment study by Four Elements Consulting, LLC Sept 2008

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HP’s recycling leadership by the numbers

Number of countries and territories served by HP’s Planet Partners free and convenient reuse and recycling programs – 34 countries in EMEA

53+Cumulative volume of print cartridges returned through HP’s recycling programs

173Tonnes of IT products recycled over the past 21

770,000million kilograms

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Tonnes of IT products recycled over the past 21 years - the equivalent of over 1,100 fully laden jumbo jets

770,000tonnes

Total number of ink and LaserJet cartridges that were returned and recycled worldwide in 2009million

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320million

Number of inkjet and HP LaserJet cartridges collected through HP Planet Partners program

HP Planet Partners

HP’s Planet Partners recycling program started in 1991 and is now active in over 50 countries and territories around the world. HP was the first company to roll out a simple, free, fully compliant and comprehensive original HP supplies take-back system.

Subscribing to this program, business customers are able to return used supplies, guaranteeing correct, compliant processing through dedicated recycling facilities. No products processed through the Planet Partners program are diverted to landfill.

General information - Italy

• The Planet Partners program is managed in total respect of the current Italian waste regulations, is completely free* and is dedicated to business customers using Original HP cartridges. HP’s Planet Partner program is compliant with the current Italian waste regulations (D.Lgs n.152/ 2006 and similar).

• Once customers subscribe to the service their names are passed to one of HP’s authorized logistics handlers who will deliver the required containers (HP recycling boxes) for collection. Once that process is active, customers can contact HP for all successive requests.

• * with a minimum monthly usage of at least 2 HP LaserJet cartridges and/or 10 inkjet cartridges

HP Planet Partners: The recycling process

All collected Original HP print cartridges undergo a thorough, compliant multiphase recycling process.

HP-patented technology is used to divide and grind the material, which is split into plastic, metals and ink residues, foam or toner, so as to be subsequently transformed into raw materials which are so as to be subsequently transformed into raw materials which are then used to manufacture new products, ‘closing the loop’ of recycling.

Waste material and ink or toner residues are used in energy recovery processes or disposed of in an environmentally-correct way.

COUNTERFEIT COUNTERFEIT COUNTERFEIT COUNTERFEIT –––– A MISPLACED A MISPLACED A MISPLACED A MISPLACED SCIENCESCIENCESCIENCESCIENCE

Countering the Counterfeiters

What is counterfeiting in the printing supplies business?

The manufacture, distribution, and sale of illegal products that look identical or substantially indistinguishable from

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or substantially indistinguishable from the genuine or original product.

Why should customers avoid using counterfeit products?

Economic reasons:

• Counterfeit products frequently leak or do not work properly

• Counterfeit products do not save money, as they are more likely to fail

• Counterfeit products can ruin a printer and may invalidate its warranty

Environmental reasons:

• Counterfeit print cartridges waste paper through poor print quality

• Counterfeit products can contain harmful ingredients that result from practices damaging to the environment

Legal / moral reasons:

• Counterfeiting is a crime — It is generally controlled by criminal organizations, whose activities are financed from the proceeds

• Customers are cheated when poor quality imitations are sold as genuine HP products

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Counterfeiting in EMEA

• Areas of most concern: CEE & MEMA

• Counterfeiting of HP supplies in Western Europe is less than 3%

• There are 2X as many counterfeit laser print cartridges as inkjet

• In 2009, seizures of counterfeit HP supplies in EMEA were more than 2X the confiscated items in 2008

37 30 June 2010

Achievements in Europe, the Middle East and Africa so far

Western Europe (FY09 and Q1 FY10):

• 48,398 seized finished counterfeits and components

• 152 substantial leads

• 51 investigations

• 42 enforcement actions

• 140 Channel Partner Anti-counterfeit Audits

Whole EMEA region (FY09 and Q1 FY10):Whole EMEA region (FY09 and Q1 FY10):

• 2,532,465 seized finished counterfeits and components

• 603 substantial leads

• 295 investigations & 182 enforcement actions

• 1,156 Channel Partner Anti-counterfeit Audits

• More than 200 press reports from ACF PR campaigns

Overall track record for the whole EMEA region (Nov 06 – today):

• 6,5 million seized finished counterfeits and components

• More than 1,600 substantial leads

• Close to 900 investigations

• Over 600 enforcement actions

• Counterfeit distribution networks cut off across the entire region

Counterfeits seized in Spain in 2009