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Annual Meeting of Shareholders 2008

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Ceremony to present the Harry V. Quadracci VISION Award

to Rémi Marcoux,
Executive Chairman of the Board
of Transcontinental

April 30, 2007
Toronto

Word of Thanks

First, I want you all to know that I’m very moved to be honoured like this today. The Web Offset Association represents the cream of our industry from all over the world, so this recognition makes me very, very proud. It’s also been great to have a chance to reconnect with many of you here.

So I really feel that I’m among friends and partners!

Ralph Pontillo, member of the Web Offset Association’s 55th annual conference organization committee and general manager of Transcontinental Miami Valley, introduces Remi Marcoux.

The honour you are giving me today reflects on Transcontinental and on all of our employees, going right back to the beginning of the company in 1976. Those are the people that you are really honouring through me. If customers are a company’s raison d’être, its employees are the main reason for its success. And I’d like to thank our employees for that.

On a personal note, the fact that this award is named after Harry V. Quadracci adds a lot of meaning for me. I knew the founder of Quad/Graphics very well, and I always admired him. He was even one of my role models. I’m thinking especially of how close he was to his employees, and of his company’s sense of social responsibility. Not to mention his great success in business. There is no doubt in my mind that he will be remembered for many years to come as one of the great ones of our industry.


-- -- --

Now let’s talk about the future of our industry.

Harry used to talk about the “lights out printing plant”. It seems that now, given what the Internet can do, along with new digital controls and robotics, “lights out printing" is becoming a reality as part of an integrated, automated manufacturing system. These changes always excited Harry and, in my opinion, will allow print to maintain its position as an important media.

When I say “the Internet”, I mean a system where:

• Everyone is connected,
• Everyone can communicate with each other,
• There are no barriers between customers, departments, and plants, and
• Large amounts of information and data can be stored and accessed by all.

This is a worldwide transformation, which is still in its early stages.

While the Internet has been developing, the technologies powering our printing plants have also been going through a major change. Anyone who recently installed a press or finishing system will have noticed that most of the on-site personnel now have personal computers and spend much of the day using them!


-- -- --

In this kind of system, workflows and processes are all interconnected using a common database. This is quite a change from the conventional printing plants of today. From a systems perspective, it means that we can optimize the entire plant instead of optimizing individual activities.

Here are some key elements of this approach:

1. Data is only entered once, typically when the job is accepted.

2. Information is transferred in seconds versus hours or days. For example, page assembly doesn’t need to be near the presses, and the presses can be located to optimize distribution.

3. Digitized information is available to preset equipment and manage content based on the initial description of the job. And once content has been stored, it can be repurposed for use in other media.

We are seeing printing change from a craft into an automated manufacturing system, benefiting from technologies unique to printing, and also those employed in modern paper plants, automobile facilities and other state-of-the-art manufacturing processes.

For those of us who have grown up in printing, it’s a whole new world.


-- -- --

These amazing new tools offer the new generation of visionary printers the opportunity to meet the challenges of globalization in the years ahead. But in themselves, they don’t create the kind of world-class marketing and manufacturing enterprise that will allow the print industry to prosper.

Let me identify four basic conditions needed to reach that objective.

First, people and processes are key to the success of any enterprise. In the world of print, this means that equipment operators will become process engineers who ensure that automatic systems are operating as designed, and that materials are within specifications and arrive on time.

Second, the number of employees, including managers, who understand and are comfortable with computer-based systems will increase.

Third, because systems will be more complex, predictive and preventive maintenance will become critical. Even now, state-of-the-art plants already need people who can keep computer-based systems running smoothly.

Finally, to create and manage this kind of integrated, complex, interdependent system, you need a culture of teamwork and innovation. As with a team, every component in the entire manufacturing process must be operational for the plant to be successful.


-- -- --

However, at the end of the day, what really counts is how this technology and these people help printers and their customers:

For Customers, these new systems should help to reduce administrative time and labour, while supporting quick turnarounds, short runs, and personalization for printed products. This includes “real time” access to printing plant workflows, eliminating the need for plant visits, while improving access to information needed to optimize their business.

For Printers, a virtual world is created. Functions such as prepress, printing, and binding can be located to optimize distribution, customer service and manufacturing costs, resulting in dramatically increased productivity, while reducing waste and turnaround times.

In addition, some form of partnership between printers and suppliers – a concept that has received much discussion in recent years – may be a requirement in this new world of complex automated systems. Automation requires a much better understanding of material specifications and controls. This is especially true of paper and ink.


-- -- --

In conclusion, it is clear to me that the printing industry is well positioned with great technology and people. With the catalyst of vision and innovation, our industry will continue to be an important media for years to come. Gutenberg can rest easy.

Thank you for your time and attention.

 

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