HP Indigo Labels Packaging Portfolio For D Print

HP Indigo Labels & Packaging Portfolio For: D Print – trends in digital printing Date: September 16 th , 2010 Andrej Petković, Professional Printing Solutions HP INDIGO Distributor

The FUTURE of labels and packaging IS DIGITAL Marketing Collateral What’s driving the growth? 2% 11% Direct Mail • – Speed – Format – Capability 4% 11% Books 4% 47% Packaging • 59% 4% Signage 4% 45% 14% • Source: HP internal estimates Shorter runs SKU proliferation Customization JIT production Lean Business forces – Cross-over points with analogue printing – Deconstruction/Reconstruction of the supply chain Digital growth Overall growth Market forces – – – 4% Labels Technology forces • Environmental forces

Evidence of the TRANSFORMATION 40% 35% 30% 25% 20% 15% 10% 5% 0% Zero – 25 K – 50 K – 75 K – 100 K Average Run-Lengths Source- - Labels and Labeling 100 K – 150 K Over 150 K

Dramatically increase SUPPLY CHAIN EFFICIENCY What is the impact of printing-to-demand ? “Creating a more agile supply network that provides unique customization for each retail customer…is not widely talked about in the industry. This value creation requires different thinking from what we have been doing over the past few decades. ” - Keith Harrison, Global Product Supply Officer, P&G

HP Indigo’s share HP Indigo digital labels market share HP Indigo labels and packaging installed base Other digital vendors • HP Indigo owns 73% market share on narrow web-fed digital presses • HP Indigo is one of the 3 leading label press suppliers (conventional and digital)

Applications Window Prime labels Shrink sleeves Industrial labels Tags Folding cartons Shelf talkers Flexible tubes Flexible packaging

Target Market Segments Wine and spirits Industrial Beverages Food Household Pharmaceutical Health and beauty Neutraceutical

Labels & Packaging Product Portfolio Job Run length in Linear Meter 4500 BEP ws 6000 O EX FL s Pw E B 4000 00 60 3500 3000 2500 BEP ws 4500 0 50 2000 P BE 4 ws ws 6000 1500 1000 ws 4500 0 0 100 200 300 400 Monthly Volume in Linear Meter x 1000 500

Labels & Packaging Solutions

HP Indigo Industrial Presses Overview HPI ws 6000 HPI ws 4500

HP Indigo technology HP Elektro. Ink – Liquid Ink

HP Indigo technology

HP Indigo Color Printing • 7 colours on press • 97% PANTONE • Special colours*: • White • Invisible ink • Digital matte • Fluorescent inks • Light Magenta • Light Cyan * Depend on press model

HP Indigo ws 4500 Digital Press • Printing speed 120 m/h 1 color, 60 m/h 2 colors, 30 m/h 4 colors, 24 m/h 5 colors • Resolution (dpi) 812 x 1219 and 2438 x 2438 at HDI • Line screens (lpi) 144, 160, 175, 180, 230 • Max. image 317 x 980 mm • Roll width 200 - 330 mm • Expand color versatility beyond CMYK by including orange, violet and green to achieve a closer match up to 97% of the PANTONE® MATCHING SYSTEM Colors. • HP Smart. Stream Labels and Packaging Print Server, Powered by Esko. Artwork.

HP Indigo ws 4500 Digital Press • Printing speed 64 m/h 1 color, 32 m/h 2 colors 16 m/h 4 colors, 12. 8 m/h 5 colors • Resolution (dpi) 812 x 1219 • Line screens (lpi) 144, 160, 175, 180, 230 • Max. image 308 x 450 mm • Roll width 200 - 330 mm • Expand color versatility beyond CMYK by including orange, violet and green to achieve a closer match up to 97% of the PANTONE® MATCHING SYSTEM Colors. • HP Smart. Stream Labels and Packaging Print Server, Powered by Esko. Artwork.

HP Indigo WS 6000 Digital Press Main Features The most productive, most flexible roll-fed digital press yet, targeted for mainstream label production High productivity Repeat length format • 4 colors 30 m/min • Improved productivity • 2 colors: 60 m/min • 317 mm x 980 mm Large media gamut and application reach 12– 450 microns substrate thickness HP Smart. Stream Print Server solution Designed specifically for production of labels and packaging

Key Features and Customer Benefits Speed Quick turnaround of high volume jobs • 4 colors 30 m/min • 2 colors: 60 m/min Large Format efficiency and high productivity image 317 mm x 980 mm format User interface Simplified operator experience • Increased utilization and productivity • Better operator/AMPV ratio Enhanced On-press diagnostics & guided troubleshooting tools serviceability • Increased press up time • Higher productivity

Supported Media

ws 6000 vs Flexo: Tower of Production In August 2009, the following jobs were produced on the WS 6000 (and converted near line) Job Type Label Width (mm) Label Length (mm) Quantity SKUs Colors Veterinary 52 82 112, 000 3 4 Food 87 199 15, 000 3 4 Nutraceutical 148 118 10, 000 2 4 Food 66. 5 80, 000 4 4 Pharma/Security 49 34 300, 000 3 2 Food 95 95 42, 000 2 6 149 147 10, 000 1 5 82 136 15, 000 3 4 Beverage Wine • 8 jobs/21 SKUs • 4 substrates • all jobs printed and then converted near line in a staggered 8 hour shift

Tower of Production: Revenue Selling prices were projected for each of the jobs at conventional (cost-plus) and the following results compare the financial metrics, expressed in terms of: • Revenue/Press/Shift/Year • Revenue/Press Hour • Revenue/Production Manpower/Year Maximum Flexo Revenue Maximum Digital Revenue Press lines Press shifts Manpower Jobs/Year 13” Flexo 1 1 4 444 Revenue/ Year Revenue/ Press Hr € 744, 503 € 470 Revenue/ Manpower € 186, 125 Revenue/ Year € 2, 293, 876 WS 6000 1 1 3 1, 368 Revenue/ Press Hr € 2, 011 Revenue/ Manpower € 764, 625

Tower of Production: Summary • (1) WS 6000 produced the identical throughput of (1) 13” flexo press in 77% less time (7 hours vs. 31. 43 hours) • (1) WS 6000 produced 3 X more jobs per month than (1) 13” flexo press (114 jobs/month vs. 37 jobs/month inc. finishing) • (1) WS 6000 on (1) shift generated 3. 1 X more annual revenue than (1) 13” flexo press on (1) shift (€ 2. 29 M vs. € 744 K) • (1) WS 6000 on (1) shift generated 4. 3 X more revenue/press hour than (1) 13” flexo press on (1) shift (€ 2 K vs. € 470) • (1) WS 6000 on (1) shift generated 4. 1 X more annual revenue/manpower than (1) 13” flexo press on (1) shift (€ 765 K vs. € 186 K) REPLACEMENT technology…. or COMPLIMENTARY technology?

ws 6000 caring for the environment • Reduced waste Less use of imaging oil- on-press recycling system reduces overall use of by ~50% – Less supply waste- As a result of increased supplies lifespan – Large ink cans- Reduce total ink cartridge waste – • Minimal noise – • New substrate handling technology reduces noise level Reduced energy consumption Lower power consumption per label – Reduced energy consumption during ink manufacturing process –

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