New Design-Enabling Technologies For Flexible Packaging Dr. Giancarlo Caimmi, Dr. Guido Kollbach Aimcal R2R, Phoenix, October 2018

Market Applications for Metallized Films Food Packaging Decoration Industrial Snacks, Chips Bakery products Candy, Confectionary Coffee, … Gift and Flower Wrapping Labels Hot Stamping Foils Holograms, … Solar Window Films Anti-Counterfeiting Films Road Signs, … New Design – Enabling Technologies for Flexible Packaging for Flexible Packaging December 31, 2018

Estimated Market Growth1) Market for Metallized and AlOx-Coated Films Strong Growth in India and Asia Estimated Market Growth1) Metalized Films AI Ox-coated Films Europe North AmericaNorth America India & Middle EastIndia & Middle EastIndia & Middle East Asia South AmericaSouth America 1) Market estimates based on information from Henkel, Nordmeccanica, and several market studies New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Market Applications for Functional Coatings Markets: Food, Medical HS Coating Functionalities Sealability Better anchorage Improved barrier Protection Optical effects (gloss, matte, …) Slip modification CS Markets: Food, Medical Henkel’s Coating Technologies & Markets PR Market: Food BC Markets: Food,Medical Trend: Multifunctional Coatings Funct. Coating nothing new Add or Enhance Properties (of films) Henkel You familiar - Adhesive Company Recently – emphasis – Funct. Coatings also Serving Mkt. – many years Traditionally: HS, CS, PR Recently: BC and OPV Coating functionalities … Trend: Multifunct.! OPV Market: Food New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Integration and Interaction of Product Lines Freedom of Design – Case Studies Traditional Lamination of metallized films with printed stock High Performance Protective Top-Coatings Top-coating fragile layers like AlOx with protective coatings FlexPack: H + NM product lines – Multiple Touchpoints H: Coatings + Laminating Adhesives NM: Met.-Equip. + Laminating Equip. Typically co-supplying Traditionally … More demanding New innovations (equip. / chemistry / combinations) Levering synergies – integrating add. Funct. 2 Case Studies High perf. Top-coating for AlOx Multifunct. Met. primer Novel Metallization Primers Metallizing on top of multifunctional metallization primers New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Metal Deposition Principle & Key Technical Data P (chamber pressure)= 5E-4 mbar Aluminum layer deposited to films and paper in vacuum Thickness: 0.005 – 0.07 micron Optical Density: 0.2 – 4 Electrical Resistance: 0.5 – 10 /m2 New Design – Enabling Technologies for Flexible Packaging December 31, 2018

System Layout Schematic Representations Rewind Unwind Roots Pumps - Vacuum 5 X 10-2 mbar Diffusions pumps - Vacuum 2-5 X 10-4 mbar Process drum chill roller Al evaporators December 31, 2018

System Layout Product Pictures Vacuum chamber AI evaporation system Winder New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Process Schematic Metallization Process High vacuum chamber Boat Al evaporators New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Coater Technology Product Pictures New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Innovation Through Collaboration of Industry Leaders GK Competitive Environment Level of Open Innovation Benefits: reduce Cost / Time – improve Quality Barrier Film: Natural fit for NM + H Dive into 2 case studies … Safe and highly focused innovation process created fast results! New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study AlOx-Coated Films New High-Performance Protective Coating Technology Protected AlOx-coated Film AlOx-coated films Very good oxygen and moisture barrier Very fragile Converting leads to dimished barrier performance Current top-coating technologies provide mechanical protection New top-coating technology Mechanical protection Significant barrier improvement High-performance Top-coating Technology AlOx-layer Substrate (e.g. PET, OPP) 1st Case Study: High Perf. AlOx-Top-Coat AlOx-coated films … On the left side – schematic structure New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study AlOx-Coated Films Process Flow-Chart AlOx-Coating Top-Coating Printing Lamination 01 02 03 04 Protection of AlOx- layer Ink anchorage High mechanical and thermal stress Good anchorage of ink on AlOx during lamination Keeps top barrier performance throughout process Optimal anchorage Superior barrier performance Best clarity Fragile AlOx-layer unprotected Additional functionality for very high performance Look at Entire Process Flow Aspects to consider AlOx-Coating Step: Anchorage / Barrier / Clarity Top-Coating: Protection / Add. Funct. Printing: Protection / Printability / High Mech. and Thermal Stress Laminating: Good anchorage (AlOx + Ink) / Maintain High-Barrier How to test? New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study AlOx-Coated Films Testing Mechanical Protection Strongly improved robustness Barrier performance not reduced by stretching or abrasion Gelboflex testing Significantly more robust than traditional top-coat (2%) Verify Mechanical Protection Small Scale trial - LaboCombi Before: Non-Top coat OTR higher (Slitting) – more important trad. Vs. new Top-coat Stretching (2%) … Abrasion Test – explain – results Gelboflex – 50 cycles Proof is in the pudding: Scale-Up New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study AlOx-Coated Films Production Scale Testing Strong barrier improvement by AlOx-coating Significant boost in oxygen barrier performance by Henkel’s new top-coating technology Moisture barrier stabilized or improved Very good stability throughout entire process Tested under Production Conditions From Met to Lam Roll of couple 1000 m … Opens up new applications (highest level barrier) New Design – Enabling Technologies December 31, 2018

Case Study Metallized Films Novel Metallization Primer Technology Metallization is state of the art Improvement of anchorage of metal layer to plastic substrate Henkel’s novel coating technology provides additional improvement in oxygen barrier Improve Barrier of Metallized Film Metallization Novel Metallization Primer Technogoly Substrate (e.g. PET, OPP) 2nd Case Study: Multifunctional Metallization Primer Trade war - special import duties/tariffs High level interest: Al-foil replacements State of Art Primers: Improve bonds Target of innovation: Improve bonds and barrier - Multifunctional New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study Metallized Films Process Flow-Chart Primer Application Metallization Lamination 01 02 03 Full coverage and smooth laydown Strong anchorage to film Optical density determines barrier Primer holding both materials in place Good anchorage of metal-layer to substrate Withstand mechanical and thermal stress Similar to 1st Case Study – Aspects of each Process Step Full scale trial New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Case Study Metallized Films Barrier Performance Development on PET Film 120 Very strong improvement of barrier performance by Henkel’s new coating technology Significant barrier improvement by metallization Very good stability throughout entire process Optical appearance slightly different, less shiny, slightly grey-ish Still working on optimization 50% reduction of OTR New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Summary Enabling new designs for flexible packaging Metallization Coatings Films Inks Adhesives Processes New packaging design Summary Enabling new designs for flexible packaging Synergy of metallizing technology and multifunctional coating High barrier metallized films More sustainable transparent barrier films Layer reduction Access to high barrier recyclable structures (Circular Economy) In summary … Barrier Films - Not Just Project - but Field of Innovation Formed Alliance BarrEnhanceTech Alliance More to come … Enabled by BarrEnhanceTech Alliance by Nordmeccanica and Henkel. Two industry leaders working in perfect collaboration New Design – Enabling Technologies for Flexible Packaging December 31, 2018

Thank you!