KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” MARCH 2019 Fiscal Year 23 RD Presented to: Mr. Yuji Kanehira/ Mr. Seigo Yagi

KANEPACKAGE PHILIPPINE, INC. GOAL 1. TO LIMIT ONE (1) CUSTOMER COMPLAINT PER MONTH FOR IPD/ 4 M DEVELOPMENTS “We aim to lead 21st Century as a Global Packaging Company” EPSON: STRATOS BURSTING EPSON: STRATOS BURSTING RESULT: TARGET ACHIEVED

KANEPACKAGE PHILIPPINE, INC. GOAL 1. TO LIMIT ONE (1) CUSTOMER COMPLAINT PER MONTH FOR IPD/4M DEVELOPMENTS “We aim to lead 21st Century as a Global Packaging Company”

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” DEFECT PHENOMENON : RECEIVED CLAIM FROM EPSON FOR STRATOS ICB BURSTING MODEL/ PART NAME/ PART CODE : MODEL/ PART NAME/ PART CODE : SUPPLIER : DEFECT ILLUSTRATION : STRATOS2 - SA / INDIVIDUAL CARTON BOX FOR JAPAN; B / LAMITEK SYSTEMS INC. (VALENZUELA) DEFECT RATE: 16.54%

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” DIRECT CAUSE : SHARP EDGE OF CREASING MATRIX USED DURING DIECUT PROCESS.  During operator's set up in manual die cut process, he failed to unsharpened the creasing matrix.  This condition of the matrix tends to weaken the claycoat paper which leads to bursting problem. INDIRECT CAUSE : BURSTING WAS NOT DETECTABLE AT THE TIME OF IN-PROCESS CHECKING. ONLY DEEP IMPRESSION WAS VISIBLE WHICH IS STILL ACCEPTABLE.

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” CORRECTION :  REPRODUCE ANOTHER BATCH AS REPLACEMENT FOR AFFECTED LOT.  USAGE OF CREASING MATRIX 1mm x 4mm INSTEAD OF 1mm x 6mm. CORRECTIVE ACTION :  STRICT IMPLEMENTATION OF PRE-FOLDING INSPECTION PRIOR MASS PRODUCTION.  APPLY 4M CHANGE: FROM MANUAL TO AUTOMATIC DIECUT PROCESS. Lamitek machine requirement (min.): 450mm x 650mm Stratos mould size: 561mm x 593mm Stratos blade size: 501mm x 533mm Stratos sheet size: 520mm x 553mm (SF) 563mm x 530mm (CC)

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” GOAL 2. ZERO RoHS COMPLAINT (KP LAGUNA) RESULT: TARGET ACHIEVED

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” GOAL 2. ZERO RoHS COMPLAINT (KP LIMA) RESULT: TARGET ACHIEVED

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” RESULT: TARGET ACHIEVED GOAL 3. APPLY ONE (1) KAIZEN PROPOSAL PER MONTH “ IN-PROCESS CHECKSHEET IMPROVEMENT FOR GLUING PROCESS “

KANEPACKAGE PHILIPPINE, INC. GOAL 3. APPLY ONE (1) KAIZEN PROPOSAL PER MONTH PROPOSAL: CONDITION BEFORE : “We aim to lead 21st Century as a Global Packaging Company” “ IN-PROCESS CHECKSHEET IMPROVEMENT FOR GLUING PROCESS “  NO SET STANDARD & MONITORING OF HOTMELT GLUE TEMPERATURE.  CHECKING OF GLUE ADHESION IS NOT ALIGNED TO CUSTOMER’S STANDARD.

KANEPACKAGE PHILIPPINE, INC. GOAL 3. APPLY ONE (1) KAIZEN PROPOSAL PER MONTH PROPOSAL: CONDITION AFTER : “We aim to lead 21st Century as a Global Packaging Company” “ IN-PROCESS CHECKSHEET IMPROVEMENT FOR GLUING PROCESS “  70% ADHESION ON GLUETAB  HOTMELT TEMPERATURE: 160C (±5C)

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” GOAL 4. LIMIT 3 ABSENCES PER MONTH RESULT: TARGET NOT ACHIEVED

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” GOAL 5. LIMIT 1 TARDINESS PER MONTH RESULT: TARGET NOT ACHIEVED

BCT CONFIRMATION

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 2 destinations

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 2 destinations Samples evaluated : 1 destination

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 6 destinations Samples evaluated : 2 destinations

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 1 destination

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 15 destinations

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 1 destination Samples evaluated : 4 destinations

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” BCT CONFIRMATION: Samples evaluated : 3 destinations Samples evaluated : 5 destinations

CANON PROPOSAL – BCT RESULTS

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company”

KANEPACKAGE PHILIPPINE, INC. “We aim to lead 21st Century as a Global Packaging Company” CANON PROPOSAL BCT SUMMARY MODELPAPER COMBINATION FLUTE TYPE BCT REQ'T (kgF) Comparison to requirement %INC (DEC) Comparison to previous result %INC (DEC) REQ'T ACTUAL (Ave.) T555/565 (Colored) CC300/NPK280/CM175x3/NPK280CB %(7.84%) T555/565 (Brown) NPK280/TX175x3/NPK280CB %(7%) T555/565 (Brown) NPK280/TX175x3/NPK280CB %(7.34%) L1160 (Brown) NPK280/CM175x3/NPK280CB663 FOR SAMPLE MAKING

KANEPACKAGE PHILIPPINE, INC. THANK YOU…