© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice Corrugated press: American Packaging and Corrugated Market Stephen Shannon Sales training, Apr 14

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 2 The voice of the market, coming back from Global Shop Boxes & Displays are silent sales executives! What’s the trend? Be better…Enhance case as marketing tool P&G

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 3 1.The Market has changed 2.Digital has changed 3.Our customers needs are different Everything that can, will become digital Printing is no exception

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The market has changed

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 5 Digital is touching many parts of our lives Things are changing at an incredible rate! Today, people are more “connected” than ever!

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 6 Global trends for brand owners Globalization Global brands demand a global presence Quality and consistency across multiple campaigns Economy driven requirements Reduced supply chain, waste and storage costs Distributed printing near manufacturing facilities Mass customization Fast-prototyping, shorter runs and more versions Real-world manufacturing integration and deadlines

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 7 Accelerating industry transformation Micro-segmentation Supply chains moving towards on-demand fulfillment Geographic, event-driven and targeted demographic campaigns Increased financial & environmental sensitivity to waste Theme-based packaging Shorter product lifecycle Faster time-to-market Average print run length declining Greater number of short-run jobs and versions SKU proliferation 38K to 48K Average grocery store SKU increase over the last five years 2007 – Source: Ferrari Innovation Solutions, LLC

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 8 Brands have the flexibility to address a variety of go-to market promotions… What is driving the rapid momentum of digital printing? ConsumerConsumerB2BB2BSeasonalSeasonal NationalNational RegionalRegionalLocalLocalCauseCauseEventEvent

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 9 99/15/11 HP Confidential Signs Vehicle Wraps Events & Exhibitions Photo & Fine Art POP/POS Retail Outdoor Advertisin g SignagePackaging Decoration Home Decoration Vinyl flooring New Digital Opportunities Total market 62B sq.ft Addressable43B sqft Total market 170B sq.ft Addressable35B sqft Total market 730B sq.ft Addressable60B sqft The digital LF opportunity is getting even bigger New Digital Opportunities

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 10 9/15/11 HP Confidential Transformational Trends Changes in demand are boosting digital printing growth 67% of PSP’s reported a trend of shortening runs (*) 3X number of jobs for the same volume than 2 years ago (**) Jobs down from 10,000 or 20,000 copies to 1,500 copies (**) More than 40% of PSP’s increase demand for QRC’s and variable data (***) (***) Infotrends 2010 survey (*) FESPA/Infotrends WW Global survey (**) Internal HP data & customer insights PSPs expect digital business to grow from 35% to 43% in the next two years

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 11 9/15/11 HP Confidential Major brands taking a more sustainable approach to wide format print sourcing Placing more environmental requirements on their prints… …and on the PSPs that print for them So they are increasingly looking for PROOF of environmental credentials Transformational Trends Environmental mindshare increasing

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 12 The market is changing Berlin 1984 Berlin 2013 Messages everywhere The Package serving two functions – the “box” and the “Message”

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 13 Stronger demand for innovation QR codes Smartphones Augmented reality Security & Authentication Connectivity to smartphones

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 14 Retail driving changes in box design Walmart North America adoption

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 15 The Rising Status of the Package Once a standalone in-store marketing tool, packaging has become a major component in integrated cross-media marketing campaigns that blend print and online. The expanded role of packaging enables label printers and packaging converters to expand their services and recast their role in the supply chain.

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 16 Latent demand for Higher quality Cost driven to lower colors Actual The Market paradigm * Orders/ year # sheets/order 5000 Industry 4-5C job distribution Expected >10k 2000 Offset for setup costs * Based on P&G info

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 17 Stronger demand for innovation * HP FB7600 customer,Italy Re-board Creativity PVC

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 18 Stronger demand for innovation Special events *HP FB7600 customer,Australia

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 19 Stronger demand for innovation Personalization and limited edition * HP FB7600 & FB10000 customer,USA

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The result: more short runs with higher value Sheet plants in the past Sheet plants in the present

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Digital has changed 2

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 22 Digital printing has changed … Scitex VeeJet Scitex XLjet HP Scitex FB10000

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 23 Productivity sqm 2 /hr Digital printing has changed … Faster machines More automated Higher reliability Cost per Copy $/sqm New technology Lower waste Mass production PQ Prod. Print quality Smaller drops size,GS Better accuracy Media handling

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 24 The result: Doing more in the corrugated market 1-2c Flexo Litho Laminate Permanent Displays Temporary Displays Hi Impact consumer Packaging FMCG packaging Shelf ready packaging 3-4c Flexo Shipping Containers Print Value <0.2$/sqm10$/sqm Print volume 1$/sqm5$/sqm 2$/sqm1.2$/sqm 0.8$/sqm 1,00050,00010,0005,000

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Our customers needs are different

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 26 Reduced costs Higher margins

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Reduce costs Reducing inventory and waste Digital Print On Demand

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Digital Print On Demand Analog Print on demand = Just in Time solution

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Reduce costs Lower paper weight Digital Printing with ZERO pressure on Board

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 30 Minimize mistakes costs R / R Digital What is the cost of mistakes? Analog

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 31 Reduced costs Higher margins

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Higher margin applications

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Versatility RPC = Reusable Plastic Crates Plastic is a threat ! Mainly reused Strong lobby in Europe Corrugators want to have an option to print on Plastics * Based on HP PKG advisory group,Oct 2013

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Becoming a one stop shop Offering convenience & speed to market

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Help your customer to be more profitable Re-packing,adding value

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 36 Markets we serve… Marketing Collateral Publication Labels & Packaging Large Format & Signage Point of Purchase Direct Mail Photo Wide range of market specific digital print solutions

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 37 The customer journey - FMOT Post Purchase DISCOVERY FMOT SMOT First Moment of Truth Second Moment of Truth Awareness, Consideration, Preference 3 milestones: TRIGGER: Do I need something new? CONSIDER: Who are you? What are you? EVALUATE: Why should I buy you? COMMIT: Will I buy you? BOND (loyalty): Was I satisfied enough to buy you again? 6 universal customer questions: ADVOCATE: Would I recommend you to others? There are two mindsets, three milestones, and six universal questions to be aware of in every customer journey. 2 mindsets:

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 38 Touch points are where customers and company interact. They include any and every interaction when a customer comes into contact with HP. Touch points Customers

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 39 © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Broadest Digital Portfolio in the Graphics Industry $1B invested in graphic arts R&D since 2008 HP DESIGNJET HP Scitex FB500/700HP T400 Color Inkjet Web Press HP Scitex FB7600/10000 HP Indigo ws4600HP Indigo ws6600HP Indigo 20000HP Indigo Proofing Prototype s Labels and Flex Pack Labels and Shrink Sleeve Folding Carton Labels and Flexible Packagin g Paper rolls, Corrugate liners Corrugate Sheets and Displays

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 40 Hewlett-Packard Indigo Product Portfolio HP Indigo 5600 Digital Press HP Indigo 7600 Digital PressNEW HP Indigo Digital PressNEW HP Indigo Digital PressHP Indigo 3550 Digital Press ElectroInk Sheet Solutions HP Indigo WS4600 Digital Press HP Indigo WS6600 Digital Press NEW HP Indigo Digital Press HP Indigo 7250 Digital Press ElectroInk Web Solutions

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 41 Where are the hidden costs? Time Materials Latent opportunity

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 42 Types of corrugated boards and prints Corrugated Post-print Pre-print Microflute Avg board weight: 525 gsm / Open flute Rolls of paper preprinted by flexo and laminated through the corrugation process as top Litho-lam – Litho printed sheet laminated on open flute Litho-llabel – Litho printed sheet laminated on full board (any wall) Flexo

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 43 Corrugated printing supply chain structures Sheet plantCorrugator Sheet plant Corrugator Buyer GCP Sheet plant Corrugator Supplier Printing D2C in house Buying pre-printed sheets & laminating in house Printing sheets and laminating all in house Buyer

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 44 Market Profit Pools Operational Efficiency Levels of complexity in making the sale Basic Printing Economics 50%30%20% More complex Reasons to invest

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 45 Our focus is on these two Basic Printing Economics

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 46 The full TCO – CPC for analog printing Fixed costs – costs that will be there whether you print today or not CAPEX, Labor, Rent, HW maintenance, Financing Job prep costs – costs that are associated with setting up the press Plates, Make-ready waste Per impression costs – costs that are associated with making the single copy Ink, media, lamination

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 47 The master equation The cost of the overall time spent on the press – print and setup Materials cost of setting up the job – plates and makeready waste Consumables cost – media, ink and any other consumables or processes

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 48 So, let us summarize 1.Every customer is different – understand the case and apply the right strategy  Printing process (D2C, lamination)  Business model (displays, boxes, GCP)  Operational model (Outsource, in-house)  Financial model (variable costs, Loaded costs)  Soft cost of speed to market 2.Consider all waste factors – time, materials, opportunity. Inventory 3. You need to understand the financial metrics

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 49 The HP Scitex Corrugated Press with HP Scitex High Dynamic Range [HDR] Technology creates a new super high-end category of industrial printing solutions HP Scitex High Dynamic Range Technology extends press capabilities and performance while preserving precision control over the printing process

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 50 From Screen to Litho and Flexo Pushing four vectors simultaneously Productivity Print Quality Versatility Cost per Copy

© Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. FB & corrugated press solutions: Tailored design for the corrugated converter

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 52 Zon e 1 Zon e 2 Zon e 3 Zon e 4 Zon e 5 Zon e 6 1.2m x 2.4m 4’ x 8’ X2 – X6 the vacuum power of FB7X00! Super High End Flatbed - corrugated handling FB10000 FB 7600 FB10000 FB 7600 B1 bac k

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 53 Stack directly to lift or push prepared stacks on rollers FB10000 Operator MH zone Manual stack push/pull Forklift operational zone Step 2: ground level conveyors FB10000 Forklift operational zone Operator MH zone Manual stacking on lift Step 1: manual stacking, Basic

© Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 54 Everything that can, will become digital Printing is no exception