HP Indigo Pack Ready Coating NPI Communication Nov 2016

Program Background

HP Indigo Pack Ready objectives Focus on 2 main vectors to extend value of Indigo 20000 for flexible packaging E2E Expand application coverage High Performance Lower FP market entry barrier Pack Ready Pack Ready Extend time to market benefit Current e2e Time to Market Lower environmental impact Overall Indigo 20000 e2e value

Indigo printed, ready to pack Definition A set of post-print converting solutions, developed, patented and qualified by HP Part of Pak Ready community ecosystem- solutions will be sold and distributed by qualified partners Enable high performance applications and immediate time to market Designed to maximize the value of Indigo digital print for labels and packaging TTM Performance

Pack Ready “Lamination” 2 completely different technologies under HP Indigo Pack Ready ingredient brand solution Pack Ready “Lamination” Time to market ① Pack Ready film Pack Ready laminator Mechanical Interlock with HP Indigo Electroink by Zero cure time Indigo printed, ready to pack ② High performance Pack Ready “Coating” ① such as Retort HP Indigo digital press Pack Ready coating Chemical Crosslinking with HP Indigo Electroink SB laminator

Pack Ready Coating (PRC) Product Release Announcement High Performance

Pack Ready Coating (PRC): Chemical crosslinking with HP Indigo Electroink and primer It Improves physical property of HP indigo print output Cross Linking Polymer durability Thermal resistivity Water resistivity Chemical Resistivity Cross section of Pack Ready Coating structure Laminate film Adhesive HP Indigo Electroink HP Indigo Pack Ready Coating Primer Print Substrate

HP indigo Pack Ready Coating (PRC) enables high performance FP application Pack Ready Coating to be applied on top of reverse printed film as offline post printing process of Indigo 20000 It enables HP Indigo digitally printed high performance FP application such as retort pouches in conjunction with retort grade adhesive lamination Extend performance

Any off the shelf printing film Any off the shelf laminate film Pack Ready Coating (PRC) process flow Additional step HP Indigo 20000 SB Laminator Adhesive laminator High performance pouch To consumers Premade pouch machine Any off the shelf printing film Pack Ready Coating Any off the shelf laminate film

Pack Ready Coating (PRC) enables converter to produce sellable HP Indigo digitally printed retort pouches! Tunneling defects Before Retort After Retort Without Pack Ready Coating Sellable! With Pack Ready Coating Withstand Retort process up to 130oC for 60 min No LBS (Lamination Bond Strength) degradation No lamination defects such as tunneling Gain water resistivity Minor color shift phenomena after retort process might be seen depending on images.

Compliance with Food Packaging Regulation Pack Ready Coating in conjunction with HP Indigo ElectroInk printed on the non-food-contact side of selected polymeric multilayer food packaging complies with the applicable provisions of European food legislation, under well-defined conditions of use and printing conditions. The Swiss Ordinance provides a positive list of substances that may be used in food packaging inks; the substances used in HP Indigo Pack Ready Coating are listed on the positive list.  The responsibility for ensuring compliance and safety of the final printed package lies with the printer and the printer’s customers.

At least 2 real consumer products produced with Pack Ready coating HP Indigo PRC (Pack Ready Coating) milestone 2016-2017 2 phase solution release Today Nov 2016 May 2017 Pack Ready Coating Announcing PRC solution released for Aluminum Retort pouch (PET/Al/OPA/CPP) At least 2 real consumer products produced with Pack Ready coating Planned PRC solution release for Clear Retort pouch (HB-PET/OPA/CPP) Aluminum Retort pouch ( Reverse print on PET) 80% of Retort pouch in market today is Aluminum Retort pouch Clear Retort pouch can be Microwavable Process parameters are unique per customer due to type of coating equipment and regulatory compliance requirement Important remark:

PRC Success Story customer quote announced at Pack Expo

is the HP Indigo PRC global supplier HP Indigo has licensed HP Indigo Pack Ready Coating intellectual property (Technology patents and trademark) to Lambson which is a UK based a global provider of raw material solutions ( http://www.lambson.com ) To find out your local contacts pricing etc., Refer HP Indigo Pack Ready Coating release note. * For product ordering details please refer to the NPI document

Pack Ready Coating Configuration & Pricing Lambson INDIGICOT S105 will be marked with HP Indigo Pack Ready trademark label Product Name Form of product Package of product Contents volume # items per shipping box Ex works price Approximate cost per SQM   INDIGICOT S105 100% solid* Plastic containers 25Kg per container 1 12$/Kg $0.0018/ SQM $0.0116 / MSI Consumption calculation example: Before applying PRC, the customer need to purchase Ethyl acetate The INDICOT S105 need to be diluted in Ethyl acetate (99.9% purity) at customer site Indigocot S105 should be diluted with Ethyl Acetate with 5% concentration of Indigicot S105 (0.15gsm + 2.85 gsm EA) Assuming Ethyl Acetate price is 1$ / KG; then 2.85gsm will cost $0.00285. adding the Indigicot price will lead to the following pricing: $0.00285 + $0.0018 = $0.00465

Pack Ready Coating customer engagement as of 5th , Jan 2017 A dozen of FP customers are commencing PRC evaluation. Phase Target EMEA NA APJ LA #1 Understand customer retort expertise level / On hold Retort 1 #2 Sample evaluation 2 #3 Towards coating trials on site 4 #4 E2E on-going coating and lamination trials #5 End customer evaluation #6 End product (real Consumer Packaged Goods) 14 customers are already under engagement for high performance lamination, such as retort and pasteurization.

The best time to plant a tree was 10 years ago The best time to plant a tree was 10 years ago. The second best time is now. Chinese Proverb

Thank you