HP Indigo Labels & Packaging PortfolioFor: D Print – trends in digital printing

Date: September 16th , 2010

Andrej Petković, Professional Printing SolutionsHP 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 Collateral11%

2%

Books47%

4%

Direct Mail 4%

11%

Signage14%

4%

Digital growth

Packaging59%

4%

Labels45%

4%

Evidence of the TRANSFORMATION

Source- - Labels and Labeling

0%

15%

10%

5%

30%

35%

40%

25%

20%

Zero – 25K 25K – 50K 50K – 75K 75K – 100K 100K – 150K Over 150K

Average Run-Lengths

Dramatically increaseSUPPLY CHAIN EFFICIENCYWhat 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 HP Indigo labels and packaging installed basepackaging installed baseOther digital vendorsOther digital vendors

Applications Window

Prime labels

Shrink sleeves

Industrial labels

Tags

Folding cartons

Shelf talkers

Flexible tubes

Flexible packaging

Target Market Segments

Wine and spirits Beverages Household Health and beauty

Industrial Food Pharmaceutical Neutraceutical

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Monthly Volume in Linear Meter x1000

Job Run length

in Linear Meter

BEP ws4500

BEP ws6000

Labels & Packaging Product Portfolio

0 100 200 300 400 500

ws6000

ws4500

BEP ws4500

BEP ws6000

FLEXO

Labels & Packaging Solutions

Pre-press Server Press ConvertingPre-press Server Press Converting

ABG Digilam

ABG Digicoat

ABG Digicon

series II

ABG Saber Extreme Laser

HP SmartStreamLabels & Packaging PrintServer, powered

by EskoArtwork

HP Indigo press ws4500

HP Indigo WS6000 Digital Press

HP Indigo Labels and Packaging Server powered by EskoArtwork

HP Indigo Labels and Packaging Color Kit

HP Indigo Labels and Packaging VDP Tools

Color Up to 7 colors supporting white and spot mixed inks as well as Pantone licensed 6 or 7 on-press broader color gamut simulations of Pantone PMS and Goe colors

Color Up to 7 colors supporting white and spot mixed inks as well as Pantone licensed 6 or 7 on-press broader color gamut simulations of Pantone PMS and Goe colors

New

NewNew

New

HP Indigo Industrial Presses Overview

HPI ws6000HPI

ws4500

HP Indigo technologyHP 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 speed 120m/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 200 - 330mm

• 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 speed 64m/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 200 - 330mm

• 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 productivity Repeat 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 productivity317 mm x 980 mm

User interfaceSimplified 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)

Quantity SKUs Colors

Veterinary 52 82 112,000 3 4

Food 87 199 15,000 3 4

Nutraceutical 148 118 10,000 2 4

Food 66.5 66.5 80,000 4 4

Pharma/Security 49 34 300,000 3 2

Food 95 95 42,000 2 6

Beverage 149 147 10,000 1 5

Wine 82 136 15,000 3 4

• 8 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 Revenue Maximum Digital Revenue

Press 13” Flexo Press WS6000Press lines 1 Press lines 1Press shifts 1 Press shifts 1Manpower 4 Manpower 3Jobs/Year 444 Jobs/Year 1,368

Revenue/ Revenue/ Revenue/ Revenue/ Revenue/ Revenue/Year Press Hr Manpower 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. 31.43 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!