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

Evidence of the TRANSFORMATION Source- - Labels and Labeling 0% 15% 10% 5% 30% 35% 40% 25% 20% Zero – 25K25K – 50K50K – 75K75K – 100K100K – 150KOver 150K Average Run-Lengths

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

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

Target Market Segments Wine and spiritsBeveragesHousehold Health and beauty IndustrialFoodPharmaceuticalNeutraceutical

Monthly Volume in Linear Meter x1000 Job Run length in Linear Meter BEP ws4500 BEP ws6000 Labels & Packaging Product Portfolio ws6000 ws4500 BEP ws4500 BEP ws6000 FLEXO

Labels & Packaging Solutions

HP Indigo Industrial Presses Overview HPI ws6000 HPI ws4500

HP Indigo technology HP ElektroInk – 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

Printing speed120m/h 1color, 60m/h 2 colors, 30m/h 4 colors, 24m/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 980mm Roll width 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 SmartStream Labels and Packaging Print Server, Powered by EskoArtwork. HP Indigo ws4500 Digital Press

Printing speed64m/h 1 color, 32m/h 2 colors 16m/h 4 colors, 12.8m/h 5 colors Resolution (dpi) 812 x 1219 Line screens (lpi) 144, 160, 175, 180, 230 Max. image 308 x 450mm Roll width 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 SmartStream Labels and Packaging Print Server, Powered by EskoArtwork. HP Indigo ws4500 Digital Press

HP Indigo WS6000 Digital Press Main Features The most productive, most flexible roll-fed digital press yet, targeted for mainstream label production High productivityRepeat length format 4 colors 30m/min 2 colors: 60m/min Improved productivity 317mm x 980mm Large media gamut and application reach HP SmartStream Print Server solution 12–450 microns substrate thickness Designed specifically for production of labels and packaging

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

Supported Media

Job Type Label Width (mm) Label Length (mm) QuantitySKUsColors Veterinary ,00034 Food ,00034 Nutraceutical ,00024 Food ,00044 Pharma/Security ,00032 Food95 42,00026 Beverage ,00015 Wine , jobs/21 SKUs 4 substrates all jobs printed and then converted near line in a staggered 8 hour shift In August 2009, the following jobs were produced on the WS6000 (and converted near line) ws6000 vs Flexo: Tower of Production

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 RevenueMaximum Digital Revenue Press13” FlexoPressWS6000 Press lines1Press lines1 Press shifts1Press shifts1 Manpower4Manpower3 Jobs/Year444Jobs/Year1,368 Revenue/ Revenue/ Revenue/ Revenue/ Revenue/ Revenue/ Year Press Hr Manpower €744,503 €470 €186,125 €2,293,876 €2,011 €764,625 Tower of Production: Revenue

REPLACEMENT technology….or COMPLIMENTARY technology? Tower of Production: Summary (1) WS6000 produced the identical throughput of (1) 13” flexo press in 77% less time (7 hours vs hours) (1) WS6000 produced 3X more jobs per month than (1) 13” flexo press (114 jobs/month vs. 37 jobs/month inc. finishing) (1) WS6000 on (1) shift generated 3.1X more annual revenue than (1) 13” flexo press on (1) shift (€2.29M vs. € 744K) (1) WS6000 on (1) shift generated 4.3X more revenue/press hour than (1) 13” flexo press on (1) shift (€2K vs. €470) (1) WS6000 on (1) shift generated 4.1X more annual revenue/manpower than (1) 13” flexo press on (1) shift (€765K vs. €186K)

ws6000 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

THANK YOU!