Fulfillment Services
    
                                              The Fulfillment Services SBU will invest in high growth market segments while building on Standard Register's fast growing digital color, kitting and variable digital imaging businesses. This unit focuses its efforts on mid-size, first time outsourcers.

                                            OUTLOOK: Due to Standard Register's current position within the market segments encompassed by the Fulfillment unit, we expect this unit to grow very quickly over the course of the next several years. We are looking into developing market segments where we can sustain growth levels higher than those of the general marketplace.

Kitting and statement billing are two areas where we believe we can grow more quickly than the marketplace. We have extensive expertise and experience in both of these areas, which allows us to react quickly to customer demand. Our digital print centers have long provided kitting, and the demand is increasing each year as more and more companies are outsourcing non-core business processes in order to improve their bottom lines. Statement billing is evolving as more customers are using the Internet to view and pay their bills. Through both our traditional statement billing and our Statement Link® Internet billing solution, companies can hand off their billing so that they can focus on other issues such as customer service and sales.

Revenue for the Fulfillment SBU is expected to have an annualized run-rate of $160 million by year-end.
                                           

Products and Services: Market Trends: Goals:
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 Billing Statements (hard copy and electronic— Statement Link)
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 Invoice Imaging
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 Kitting
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 Digital Color and Variable Digital Imaging
Commercial Print via alliance with Consolidated Graphics
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 Plastic Card Services
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 Approximately $6 billion market; $3.7 billion in healthcare, financial and membership associations
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 20% CAGR
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 Standard Register's revenue in this market has grown at approximately 25% over the past few years
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 Grow revenue 20%+ annually, driven primarily by statement billing and kitting businesses
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 Generate operating return on sales of 10%+