Products - CIR Strategy · Inca’s business today • Products • Partners • Financials 3. Why...
Transcript of Products - CIR Strategy · Inca’s business today • Products • Partners • Financials 3. Why...
Nov 2005 HVM 0
Agenda
1. How did we start?
2. Inca’s business today
• Products
• Partners
• Financials
3. Why does this work?
Bill Baxter
MD, Inca Digital Printers Ltd
+44 1223 577800
4th CIR High Value Manufacturing Conference: East 2005
Nov 2005 HVM 1
History
Inca was founded in May 2000 by seven people from Cambridge Consultants: six technical plus one finance.
What started as an internally-funded project ended up as an obvious opportunity to start a new business.
Inca is the latest in a long line of CCL inkjet spin-offs!
1970 1980 1990 2000
Domino Linx ElmjetVideojet
Xaar Inca
Cambridge Consultants Ltd (CCL)1970 1980 1990 2000
Domino Linx ElmjetVideojet
Xaar Inca
Cambridge Consultants Ltd (CCL)
Nov 2005 HVM 2
Venture capital funded
At launch (May 2000) Inca was valued at £6M
A second round raised £2M leaving:Advent Venture Partners 36%Small financial investor 3%Cambridge Consultants 14%Founders 37%ESOP 10%
£600k
£1.5M7 people+ IP
Cambridge Consultants
Ltd (CCL)
Advent Venture Partners
(AVP)CCL15%
Founders39%
ESOPAVP35%
Nov 2005 HVM 3
Financials
Inca has grown quickly and is cash neutral
130105906522Staff
£1.5m£1.0m£0.3m(£2.7m)(£1.4m)Profit/loss
£19m£14m£11.3m£5.1m£0.8mSales
Year 5Year 4Year 3Year 2Year 1
Nov 2005 HVM 4
Exit
NEWS RELEASE
Dainippon Screen acquires Inca Digital Printers Acquisition links innovative wide format digital inkjet specialist with world’s leading manufacturer of equipment for the digital prepress, printing, semiconductor and flat panel display industries.
2nd June 2005 : Today Dainippon Screen Mfg. Co., Ltd (Kyoto, Japan) announces that it has acquired Inca Digital Printers, the specialist wide-format digital inkjet printer manufacturer, in an agreement totaling UK poundsproducts perfectly. Significantly, Inca’s expertise gives us access to important new markets in industrial printing and packaging. By combining Inca’s expertise in wide format inkjet printing, with Screen’s considerable experience in the media technology, semi-conductor and flat-panel display industries we can further strengthen and grow Inca and DainipponScreen’s businesses, while working together to develop new applicationsacross multiple sectors in the future.”
Nov 2005 HVM 5
Inca’s business
Many areas of industrial printing want short runs or fully customised printing without changing plates
• Inkjet is widely seen as the long term solution
• Office inkjet printheads can’t handle the inks needed
• The core printhead technology is just emerging
PrintersPrintheads PrintersPrintheads
End users and OEMs:
Display & signs
PackagingCeramics
Furnishingsetc.
Printhead Suppliers:
XaarJet
SpectraTTecetc.
Nov 2005 HVM 6
Today’s products
Inca’s customers today print Point of Sale material, which has traditionally been done by screen printing
Flagship product: Columbia Turbo.
Fast, reliable, expensive
Mid-range products: Spyder 150/320.
High quality print, medium price
Nov 2005 HVM 7
Tomorrows products: Single Pass
Industrial inkjet printing will really take off when speeds reach those of conventional printing.
Painting over the surface in stripes is too slow!
Single Pass provides low cost, high throughput
Alpha prototype FastJet corrugated board printer (Inca/Sun Chemical)
Nov 2005 HVM 8
Partners
Inca uses strong, lasting partnerships with companies that can do what we are not good at:
- distribution and sale of our products
- consumables and customer support
- manufacture of parts to our design
Why? Because:
• Without giving away parts of the value chain, we could not have grown so fast.
• Without partners to stop us, we would have done many more stupid things.
Nov 2005 HVM 9
Strategy: background
We believe that:
• Industrial inkjet is in an early stage of growth.
• The base technologies are improving fast, and will continue to improve fast for 10-20 years.
• Applications for inkjet are easy to predict in general terms (packaging, décor, labels, textile etc.), but it is hard to predict what the next application will be, and how fast it will ramp up.
• There is a shortage of good inkjet integrators (it is harder than people think!)