DIGITAL PRINT ON CORRUGATED Seminar and Workshop February

DIGITAL PRINT ON CORRUGATED Seminar and Workshop February 7/8, 2018

INTRODUCTION Paul Aliprando SUN Automation Digital Technologies

Printed Corrugated Today • Brown box and Standard print is mature and highly competitive • Multi pass, flat bed technology is established • Box Plants now adopting digital solutions in search of added value Typical Box Plant Output Multi-pass Inkjet Flexographic Units Transit Products 1, 2, 3 & 4+ Color Products High Graphics Products Margin

Global Printed Packaging Source: Smithers. Pira

Digital Labels & Packaging Source: Smithers. Pira

Digital Packaging Growth Source: Smithers. Pira

CORRUGATED PRINTER PLACEMENTS SINGLE-PASS SYSTEMS 200 Single-pass Placements (Units) CAGR, 16 -21: Entry level, 20%; High Speed, 23% 150 High Speed Entry Level 100 29 15 50 12 32 34 22 67 74 83 2017 2018 2019 90 95 2020 2021 38 0 2016 Source: Keypoint Intelligence 2016 -2021 CDLP Forecast

Digital Corrugated Future • Single Pass, high output inkjet now available –high graphics affordable • Providing opportunity to take digital to higher volume orders • Added Value for the complete supply chain Digital Box Plant Output Single Pass Inkjet Flexographic Multi-pass Inkjet Units Transit Products 1, 2, 3 Color Products High Graphics - Variable Products Margin

WHY THE GROWTH IN DIGITAL? • • Market drivers – Cost, Time, Variability Using Digital along side Flexo to benefit both Interest in Digital Packaging ideas is growing Custom made integrations

Digital Decision Making Step One Step Two Step Three • Your Markets • Your People & Systems • The Printer

Your Markets • Initial Offering • Where are the current opportunities? • Differentiate or Not • Same Box/New Value or New Box/New Business • Commercials • Consultant to the Box User - What is your increased service worth? • Higher Margin • ROI? Now or Later • Manufacturing Process • What is required – Press, Systems, Knowledge, Device, Logistics? • Where is this knowledge in your organization?

Your People and Systems Success in Digital Corrugated starts with People & Systems - not only the machine • Your Facility • The Existing Manufacturing Capabilities • The People & Press Environment (Color Management, Workflow etc) • The Leadership / Decision Maker • Your Markets • Opportunities – Existing or New (Litho. Lam, Folding Carton, etc. ) • Vision for the technology • Print Overview • What does the ability to “print on demand”, “reduce leadtime”, “reduce inventory” allow you? More Orders, Higher Margin • Using print for more than merely identification or branding – the arrival of Advertised Packaging. Stand out from Competitors

The Machine - Who is in the Mix Aqueous SUN Automation HP Wonder. Jet Xante UV/Hybrid EFI Durst Barberan Multi-Pass – EFI, Fuji, HP, Durst, others

Digital Print on Corrugated • Opportunity to receive value or reduce costs via direct artwork management • New value added opportunity through print for increased margin Total Cost Analog vs. Digital Order Size

Digital Print on Corrugated – 4 Points • • Jetting • Heads – Thermal, Piezo, CIJ • Resolution – 360/600/more dpi • Waveforms / Drop Sizes Inks • Aqueous • UV - Hybrid Paper • Special, Standard, Availability • Uncoated, Coated, Treated • White, Somewhat White – White Scale • Profiling to the Substrate Software • Color Management • Raster Imaging Processor (RIP) • Screening I J P Digital Printing S

Digital Universe Sales/Marketing Machine - Design - Support - Next Generation - Solution Feedback Solution - Jetting - Inks - Paper - Software Implementation Solution J Machine P Implementation - Supply Chain - Press - Box Sales Model - Operation - Specifications - TCO I Digital Printing S Sales/Marketing - Pre. Qualify the Sale - TCO - Box Pricing - Cost Analysis - Customer Events - Workshops

Digital Opportunity - Variability

Digital Opportunity - Variability

Digital Opportunity - Variability •

Digital Opportunity - Variability •

Digital Opportunity – Flexo Replacement • Reduced Inventory or Write Offs and Improved Cash-flow • Increased Value to your Customers • Specialized or Individualized Packaging 5 Color Flexo Digital – Flexo Replacement Digital with Product Picture

Digital Opportunity – New Markets Creating Demand New Business Opportunity

Future of Digital? • Digital should not just mimic Flexo – it will do more • Mainstream • New Equipment Suppliers • Changing • Not of Inks and Papers just specialized converters producing • Supply chains changing

ENJOY THE CLASS Have Fun!!