1. History of the pressure-sensitive industry cost index BPIF Labels Autumn Technical Seminar 31 October 2012 Dr. William Llewellyn Vice President/Senior Consultant AWA Alexander Watson Associates

2. Contents Introduction Component Materials Cost Indices Raw Materials Label Constructions Future Prospects

3. INTRODUCTION Page 3

4. Introduction Industry benchmarking and index analysis of European pressure-sensitive label materials. Started as a project for the Swedish Label Association. Expanded in Q2 2011 when other national label associations joined Quarterly reporting of a set of indices based on a sample of typical and standard pressure-sensitive label constructions First edition: July 2007, data that quarter plus historical development Indices demonstrate cost progression for each material component based on a scale using a cost index of 100 as of January 2007 The indices reflect movement in raw material costs Also estimate of the likely movement in pressure-sensitive label laminate costs as a consequence of the movements in raw material costs Added feature: indices in local currencies

5. Introduction – Methodology AWA Alexander Watson Associates: market research, advisory services, and events in the labeling and product decoration field since 1971 Key element: primary data collection Telephone, personal and email interviews Online survey Target group: key suppliers (film manufacturers, paper producers, adhesive and silicone suppliers, etc) and label laminators Data crosschecked against AWA data on the pressure-sensitive label market All input combined and verified to reach a consensus on costs movement

6. COMPONENT MATERIALS Page 6

7. Component Materials 85 Micron PE 60 Micron OPP (BOPP) 23 Micron PET Thermal Paper C1S Acrylic Emulsion Hot Melt Silicone Glassine Release

8. COST INDICES RAW MATERIALS Page 8

9. 85 Micron PE Source: AWA

10. 85 Micron PE - Currencies Source: AWA

11. LABEL CONSTRUCTIONS

12. 85 micron PE/Acrylic Emulsion/ Glassine Release Raw Material Cost Index Movements, January 2007 – July 2012 Raw Material Cost Index Movements, July 2011 – July 2012 Source: AWA

13. 85 micron PE/Acrylic Emulsion/ Glassine Release - Currencies January 2007 – July 2012July 2011 – July 2012 Source: AWA

14. FUTURE PROSPECTS Page 14

15. Future Prospects Feedback users on the cost index implemented Add label laminate constructions to excel sheet (BPIF member feedback) North American Pressure-sensitive Industry Cost Index Page 15