HP Indigo Labels & Packaging Portfolio For: D Print – trends in digital printing Date: September 16th , 2010 Andrej Petković, Professional Printing Solutions HP INDIGO Distributor The FUTURE of labels and packaging IS DIGITAL Marketing Collateral What’s driving the growth? 2% • 11% Direct Mail – 4% – 11% Books – 4% 47% Packaging • – – – 4% 45% Signage 4% – • 14% – Overall growth Source: HP internal estimates • Shorter runs SKU proliferation Customization JIT production Lean Business forces – Digital growth Speed Format Capability Market forces – 4% 59% Labels Technology forces Cross-over points with analogue printing Deconstruction/Reconstruction of the supply chain Environmental forces Evidence of the TRANSFORMATION 40% 35% 30% 25% 20% 15% 10% 5% 0% Zero – 25K 25K – 50K 50K – 75K 75K – 100K Average Run-Lengths Source- - Labels and Labeling 100K – 150K Over 150K 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 digital labels market share HP Indigo labels and packaging installed base Other digital vendors • 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) Applications Window Prime labels Shrink sleeves Industrial labels Tags Folding cartons Shelf talkers Flexible tubes Flexible packaging Target Market Segments Wine and spirits Industrial Beverages Food Household Pharmaceutical Health and beauty Neutraceutical Labels & Packaging Product Portfolio Job Run length in Linear Meter 4500 BEP ws6000 4000 3500 3000 2500 BEP ws4500 2000 ws6000 1500 1000 ws4500 500 0 0 100 200 300 400 Monthly Volume in Linear Meter x1000 500 Labels & Packaging Solutions Pre-press Server Press Converting ABG Digilam N ew HP Indigo press ws4500 HP Indigo Labels and Packaging Server powered by EskoArtwork ABG Digicoat HP Indigo Labels and Packaging Color Kit HP Indigo Labels and Packaging VDP Tools HP SmartStream Labels & Packaging PrintServer, powered by EskoArtwork N ew HP Indigo WS6000 Digital Press N ew ABG Digicon series II N ew Color Saber licensed 6 or 7 Up to 7 colors supporting white and spot mixed inks as well as ABG Pantone Extreme Laser on-press broader color gamut simulations of Pantone PMS and Goe colors 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 HP Indigo ws4500 Digital Press • 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 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 • Improved productivity • 2 colors: 60m/min • 317mm x 980mm Large media gamut and application reach 12–450 microns substrate thickness HP SmartStream Print Server solution Designed specifically for production of labels and packaging Key Features and Customer Benefits Quick turnaround of high volume jobs Speed • 4 colors 30m/min • 2 colors: 60m/min Large Format efficiency and high productivity image 317 mm x 980 mm format Simplified operator experience User interface • Increased utilization and productivity • Better operator/AMPV ratio Enhanced On-press diagnostics & guided troubleshooting tools serviceability • Increased press up time • Higher productivity Supported Media ws6000 vs Flexo: Tower of Production In August 2009, the following jobs were produced on the WS6000 Job Type (and converted near line) 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 6 149 147 10,000 1 5 82 136 15,000 3 4 Beverage Wine • 8 jobs/21 SKUs • 4 substrates • all jobs printed and then converted near line in a staggered 8 hour shift Tower of Production: Revenue 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 13” Flexo 1 1 4 444 Press Press lines Press shifts Manpower Jobs/Year Revenue/ Year Revenue/ Press Hr €744,503 €470 Press Press lines Press shifts Manpower Jobs/Year Revenue/ Manpower €186,125 Revenue/ Year €2,293,876 WS6000 1 1 3 1,368 Revenue/ Press Hr €2,011 Revenue/ Manpower €764,625 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) REPLACEMENT technology….or COMPLIMENTARY technology? 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!