2General Electric and Malnove Incorporated Meeting AttendeesGE LightingLee Lagomarcino - Commodity LeaderRich Calvaruso - Lean Manufacturing Leader for LightingSheila Frinak - Global Sourcing Manager for LightingDel Cofield - Six Sigma Leader for LightingMalnoveMark Dietrich GE Lighting Account ManagerBruce Dalrymple Product Development ManagerMike Querry Vice President Midwestern Regional SalesDon Scott Vice President Eastern Regional SalesDirector of New Product Development and Innovation
3General ElectricImagine, solve, build and lead - four bold verbs that express what it is to be part of GE. Their action-oriented nature says something about who we are - and should serve to energize ourselves and our teams around leading change and driving performance.
4GE & Sustainability “We believe we can help improve the environment and make money doing it”GE Chairman Jeffrey Immelt
5GE Chairman Jeffrey Immelt GE & Sustainability"Ecomagination is the convergence of economic and social needs with the unique skills of GE. Business, and society in general, need lower-cost, cleaner and more secure energy, along with cleaner, more abundant sources of usable water. GE's combination of leadership technologies, operating skills and global reach make us uniquely qualified to help solve these problems. Ecomagination is about meeting customers' needs today with our current products, but it's also about the future. We will work with customers, governments, and other thought leaders on developing tomorrow's solutions, including renewable energy technologies, hybrid locomotives, low-emission aircraft engines and water purification equipment. And we will make money doing it."GE Chairman Jeffrey Immelt
6Malnove’s “Platforms of Competency” “Joint Process Improvement”…deliver “long-term and compounding”economic value to the customer’s business…
7Malnove’s “Platforms of Competency” Intelligent design based on thethree (3) tenets of sustainability:- Economic (profitable)- Social (empowerment)- Environment (ecologically regenerative)
8Malnove’s “Platforms of Competency” Total Packaging SolutionBased Business Strategy
10Malnove asks questions…and delivers the “Best Total Packaging Solutions” How do you become truly intimate with your customer so you can consistently deliver value?Isn’t adding value really about a focused (continuous) commitment to making true process and product improvements….that deliver “long-term and compounding economic benefits” to our customer?Critical to our success is the ability to ask our associates, customers and prospects (3) simple questions, carefully listen and document their responses, and most importantly...develop and document action plans based on individual and/or collective needs.1) What is working for you today? (Current Reality)2) What is not working for you today? (Latent or Real Pain…”The Gap”)3) If you could change something, what would it be? (Future Vision)…”We are in fact “raising the bar” for ourselves by looking at new markets, new products, new ideas and new packaging methods that will improve the customer’s bottom line and ours as well”…Paul Malnove CEO Malnove
11Malnove’s Core Business Philosophy is based on focusing on excellence in the specific dimension of value known as “Customer Intimacy” (ie. “Best Total Solution”)1) Provide the Best Offering in the market place by excellingin one of the three Specific Dimensions of Value.2) Maintain Threshold Standards on other dimensions of value.3) Dominate your market by improving value year-after-year.4) Build a well-tuned Operating Model “dedicated” to deliveringunmatched “customer” value.
12(OPERATIONAL EXCELLENCE) BEST TOTAL COST(OPERATIONAL EXCELLENCE)By OPERATIONAL EXCELLENCE we mean providing customers with reliable products or services atcompetitive prices ~ delivered with minimal difficulty or inconvenience.Operationally Excellent companies provide middle-of-the-market products at the best price with theleast inconveniences. Their proposition to customers is: Low price and hassle-free service.McDonaldsCostcoWal-Mart
13BEST PRODUCTS(PRODUCT LEADERSHIP)By PRODUCT LEADERSHIP we mean providing products that continually redefine the state-of-the-art.Their proposition to the customer is an offer of the best product...period. They continue to innovate year after year. Competition is not about price ~ it’s about product performance.3MSONYIntelJohnson & JohnsonAppleHP
14BEST TOTAL SOLUTION(CUSTOMER INTIMACY)By CUSTOMER INTIMACY we mean selling the customer a total solution, not just a product or service.We specialize in satisfying UNIQUE needs which often only we, by virtue of our intimate knowledge of the customer, recognize: “Malnove has the best packaging solution for Hershey, and we will provide the support you need to achieve optimum results from the product you buy from us”.Clarke AmericanDHL WorldwideNordstromMalnoveAny market Leader, whatever value it chooses to deliver, MUST maintain reasonable standards in the other dimensions as well.
15What Specific Packaging Solutions Can We Deliver To GE Lighting, And Can We Measure The Value Of These “Joint Process Improvements”?Malnove Packaging Solution:Malnove’s proprietary “small footprint” S.S.G. Technology reduces carton costs by 5-15%, while eliminating labor related to servicing cartoning lines. This technology also delivers a 50% reduction in the number of pallets in your plant and related freight costs for inbound folding cartons or display cases.
16Malnove SSG Theory of Operation Prefeeder Options; Folding Carton Delivery; Prebreak; Hot Melt Application; Compression; Discharge
18What Specific Packaging Solutions Can We Deliver To GE Lighting, And What Is The Measurable Value Of These “Joint Process Improvements”?Malnove Packaging Solution:Malnove’s proprietary “small footprint” S.S.G. Technology combined with our robotic folding carton handling system, eliminates all ergonomic / safety issues related to handling folding cartons in your plant.
19Malnove SSG Common Options - Bar Code Reading - Vision Systems - Defect Detection and Removal - EAS Tag Application - Security Label Application - Microembossing Anti-Counterfeiting - Item Level RFID Tag Application - ATIP HP Ink Jet Printing for SKU Reduction
20What Specific Packaging Solutions Can We Deliver To GE Lighting, And What Is The Measurable Value Of These “Joint Process Improvements”?Malnove Packaging Solution:Malnove’s patented Stack-Rite™ technology allows a caliper reduction while delivering the economy of a “flat blank” packaging platform.
21What Specific Packaging Solutions Can We Deliver To GE Lighting, And What Is The Measurable Value Of These “Joint Process Improvements”?Malnove Packaging Solution:Malnove’s patented Stack-Rite™ technology can also be applied to display trays and again is based on the economy of a “flat blank” packaging platform.
22What Specific Packaging Solutions Can We Deliver To GE Lighting, And What Is The Measurable Value Of These “Joint Process Improvements”?Malnove Packaging Solution:Malnove recently received patents on our newest technology Stack-Rite II. This approach builds on our Stack-Rite I success, with compression strength equal and/or superior to corrugated. This negates the need to use double and triple wall display corrugated at “big box” retailers - Costco, Sam’s and BJ’s.
23About Malnove Products Folding Cartons Thermoformed Plastic Solutions Packaging System Engineering, Installation, TrainingFacilities(4) folding carton plants in the United StatesMalnove - JacksonvilleMalnove - OmahaMalnove - Salt Lake CityCreative Malnove - Hawaii (+ thermoforming)Annual sales and conversion$135,000,000 (U.S.)90,000 tons of paperboard convertedSBS 43% SUS 31% CCNB 26%
24Malnove Incorporated “Top 10” Customers; Markets Served; Solutions Provided Osram Sylvania (Lighting Products; 50+ sizes; 200mm cartons; KANBAN Supply Chain Management)Johnson and Johnson (McNeil Nutritionals; Packaging Category Manager; Full MRP Supply Chain Management)McKee (Baked Goods; 50 SKU’s; 200mm cartons annually)Unilever (Health and Wellness; Nutrition and RTD Products; Full MRP Supply Chain Management)Dairy Queen International (Single Source Supplier Across 5,000 QSR’s Full MRP Supply Chain Management)Con Agra (Prepared Foods; 500mm cartons annually; Focus on “Joint Process Improvement)Wal-Mart (In-Store Bakery; Distribute to 1,800 Supercenters; Full MRP Supply Chain Management)CPR Goya (Ethnic Foods; Highest Productivity Manufacturing / Packaging Plant in North America)Interstate Brands (Baked Goods; Full MRP for 25 Plants; 225mm cartons annually; 300 Packaging Lines Installed)Johanna Foods (Dairy Products; 12 Packaging Lines Installed; Full MRP Supply Chain Management)
25Malnove Incorporated Folding Carton Operations Omaha, NebraskaSalt Lake City, UtahHonolulu,HawaiiJacksonville, Florida9 Sheet Fed Offset Presses3 Web Flexo Presses1 Rotogravure Press4 Thermoformers
27Malnove Over Fifty (50) Years Of Experience Malnove Inc founded in Omaha, NebraskaMalnove opens a new plant in OmahaMalnove purchases plant in Jacksonville, FloridaMalnove purchases plant in Salt Lake City, UtahMalnove begins planning & design of new plant in JacksonvilleMalnove establishes a joint venture with Europa CartonMalnove starts up new 250,000 sq ft plant in JacksonvilleMalnove Completes (3) Year - $35mm Capital Project
28Malnove MissionThe goal of our corporation is to consistently exceed our customer’s expectations.Our people are our most valued asset.Our business is built around our customer’s needs.
29Malnove Business Philosophy Our Customers needs determine how we think about:Our Overall BusinessPlant CapabilitiesFull-Service Support
30Malnove Business Philosophy We strive to align our resources with your needs.We demonstrate this in many ways a comprehensive approach to packaging:Package Design & GraphicsPackaging system audit & effectivenessPackaging equipment EngineeringPackaging equipment SupportResearch & Development
31Malnove Business Strengths National CapabilityWe are “Market Driven” by our Customers needsWe offer a comprehensive approach to packaging solutions rather that selling “what is on the shelf”Long term partnership agreements with board manufacturers of all substratesEmploy all major printing technologies: Offset, Rotogravure and Flexography
32Malnove Business Strengths A strong entrepreneurial spiritTotal quality managementCommitment to state-of-the-art equipment & systemsMechanical packaging systemsDevelopment of new technology, systems and packaging concepts
33Malnove Specific Evidence Of Strengths Continuous capital investment in our folding carton operations—one of the newest plants in USTotal Quality management - Stochos quality management data base is thefoundation of our common quality system in our three plants.Full service mechanical packaging systems-we have over 900 systems installed to-date.
34Malnove Specific Evidence of Strengths Commitment to ongoing trainingDevelopment of innovative production processes and packaging linesLong term partnership agreements with board manufacturers of all substrates
35Malnove Specific Evidence of Strengths Utilize latest technology available in our industry.Consistent preventive maintenance system.New product development / innovation - StackRite tm is our latest development.A focus on Joint Process Improvement.
36Malnove Quality Assurance Corporate Quality Policy* To consistently exceed our customer’s expectations.* Our people are our most valued asset and accept this challenge daily.* This is done by focusing on the process, not by focusing on results alone.
37Malnove Quality Assurance Corporate Quality Manager — Reports to ChairmanConsistent Quality Direction / Systems in all plantsPlant Quality Team — Process Audits / Variables ControlOperating Personnel — Variables Test / Process & Product Control
38Malnove Quality Assurance Stochos Quality Management Database Terminals at each process—input and monitoring.Hourly Operators perform checks, input data and monitor product using the system.Provides excellent traceability.Strong Quality Action Report process.Control charts-real time.
39Malnove Quality Assurance Standard Operating ProceduresBuilt on ISO 9000 standards.Operations are controlled using SOP’s.SOP’s in place and kept current.SOP’s are at each Machine.Employees have SOP’s as part of job training.
40Malnove Quality Assurance Two year quality plan / schedule for continuous improvement:Customer FocusTraining-continuousColor control & X-RiteSPC-Process CapabilityQuality measures / improvement
41Malnove Corporate Quality Policy The goal of our corporation is to consistently exceed our Customer’s expectations. To attain our goal we strive to make every Customer, Vendor and Malnove Associate a partner in our business. From receipt of raw materials and throughout each conversion process, every detail of our business is scrutinized to be continually improved in order to delight our Customers with our product.Malnove remains a quality leader through continuous improvement techniques. We strive to continually improve our quality while reducing our costs. This is done by focusing on the process, not by focusing on results alone.Our people are Malnove Incorporated’s most valued asset and accept this challenge daily:To consistently exceed our Customer’s expectations.Paul Malnove, ChairmanBruce Marro, Corporate Quality Manager
42Malnove Quality Assurance / Other • American Institute of Baking (AIB)Jacksonville Overall rating in February SUPERIOR 975 RATINGOmaha Overall rating in March SUPERIOR 905 RATINGSalt Lake City Overall rating in May SUPIRIOR 925 RATING• Supplier to Medical Devices industry/food industryGMP / QS capable• Customer Specific Requirements:Certificate of AnalysisFG evaluation-AQL’s, MIL-STD 105-E• Excellent traceability and line clearance.Stochos-electronic data-maintained 7 yrs.• Preplanning-contract review / order reviewAll pertinent disciplines involved
43Packaging & Packaging Systems Create Value Product Development -Malnove is constantly searching for new ways to deliver convenience, value and the environmental attributes in demand by today’s consumer.As an extension of the customer’s product development team, Malnove provides the experience and technology to create the industry’s most advanced paperboard packaging.
44Packaging & Packaging Systems Create Value Innovation examples:Optical Lens PackagingPatented package secures & protectsSource / Labor reductionCarton ConvertingInsert and score window filmSingle pass operation-multiple functionsSaved $1,000,000 annuallyStack Right™ Carton DesignAllows caliper reductionEliminates case packing cost
45Malnove Structural Design Capabilities Develop initial concept, modify existing structure to improve converting processeffectiveness, reengineer existing structure to improve “effect-in-use”.State of the art CAD CAM hardware and software.Continuous electronic process from design to production.Produce a “Prototype” of proposed carton.
46Packaging Systems Engineering Support • Carton performance is, in part, determined by machinability.• Applying knowledge of product, carton and machine application,Malnove integrates new or existing equipment to satisfy requirements.• Our people create effective packaging solutions.
47Packaging Systems Engineering Support • Select, customize and install new or used equipment.• Application consulting• Educational training• Project Management• On-going service support• Emergency field service 24 hours / day• Carton / Machine auditsDesign - Machine ability - Carton functionality - Carton troubleshooting - Efficiency
48Malnove Packaging Systems Offers Quantitative Benefits. • $ Savings• Fast track product introduction• After warranty field service• Field technicians are recognized as best in industry• Reduced lead time to receive machinery• Investigate used equipment• Reduced start-up time means faster cash flow• Efficiency audits
49Malnove Package Performance Testing Malnove’s alliance with companies such as Riverwood International; The Institute of Paper Science and Aspen Research Labs provides progressive research and development resources and activities. We also sponsor package development and testing at The Packaging School at the University of Florida.State-of-the-art analytical services help solve packaging problems, refine processes, and explore new packaging opportunities.
50Malnove Package Performance Testing • Fingerprint, identify and quantify unknowns using enhanced detection capabilities.• Provide problem-solving expertise at Malnove operations.• Pre-manufacturing evaluation of new materials and processes.• Evaluate, screen and benchmark ink/paperboard coating performance.• Develop innovative test procedures such as FDA extraction, currently used in food packaging.• Provide barrier information and simulated aging test.
51Malnove Printing Capabilities. Printing ProcessesSheet-Fed Offset Lithography Nine( 10) pressesWeb-Fed Flexography Three (3) pressesRotogravure One (1) pressPrinting Process Features40”, 50”, 55” widthsSemi-automated make-ready capabilityPattern in-line coatingPerfectingOffset printing up to 7 colorsEnvironmentally friendly water-based inks and coatings (up to 6 colors)Back side grease barrier coatingsConsistent in-line cutting attributesMultiple site process capabilitiesOn-press collating8-color capability2-color perfectingPrint metallic, fluorescent, pearlescent inksGrease barrier coatingsMold resistant coatings
52Malnove Cutting Capabilities. Platen Cutting Processes / Benefits• In-House laser die manufactureLow cost entry to marketplace is immediate, enhancing speed to market.• Steel dies and counter platesGreater productivity, longer die life, consistent scoring attributes.• Embossing / DebossingEnhances graphics and impact of “facing” at P.O.P.• Blanking capabilitiesIncreases throughput and decreases lead-time.
53Malnove Finishing Capabilities. • Straight-Line Gluing• Right-Angle Gluing• Leary Glue Detection Systems; Vision Systems• Bar Code scanning• Auto Case Pack• Electronic Case Scanning• Standard Windowing• Specialty Windowing (Single Lane; 2-Sided; Registered Printed Film)• Collating• Critical Attribute Certificates of Analysis• Label/Coupon Attach
54Malnove Major Customers / Markets Osram Sylvania - LightingCon Agra - Prepared FoodsP & G - HABAWal Mart - Baked GoodsPrime Source - HardwareClarke American - Financial PrintingKeebler - Baked GoodsRevlon - HABAPanasonic - Consumer ElectronicsBecton Dickinson - Medical Devices
55Thank you GE for your consideration Thank you GE for your consideration. We look forward to putting Malnove’s Team Packaging Professionals to work for you. Our goal is to continually add long-term and compounding economic value to GE’s business through our Total Packaging Solution business strategy. The key competencies Malnove will deploy will be our focused approach on true process / product improvement, and our commitment to intelligent and sustainable package design and development.