2. OPERATIONS: MISSION IMPOSSIBLE HISTORICAL NOTE: This was a creative and inspirational report to our BOD and to my Leadership team just a few months into my time with Vestcom. We truly had achieved the impossible! LEAN, KPI’s, waste reduction, purchased reductions, etc. FOR BEST RESULTS, play SLIDE SHOW…right click to go to next slides. There’s a trick to syncing music to slides, but don’t worry about it.

4. F.A.S.T. FOCUS-ACHIEVE-SUCCEED-TOGETHER On-Time Performance WOW- War on Waste Reduced Cost per Click Sourcing Cost Reductions 6-S SAFETY PROGRAM “Fix” Rotary

5. No comprehensive benchmark metrics for 2011 Studied weekly. Will report monthly. 12/26-1/27 per SLA Report 137,219 Shipments 134,762 On-Time per SLA 98.2% On-Time >50% of misses due to iGen problems

6. WOW- War on Waste PEP Benchmark @ Service Bureaus: 18% Finished 2011 @ ~ 8% Run Rate ! Budgeted 2012 @ ~ 6% Run Rate by yr-end January 2012 ~ 5% run rate!

7. War on Waste INVESTIGATE ROOT CAUSE….DON’T JUST THROW IT AWAY!!

8. War On Waste Step 1 SEGREGATE WASTE DAILY. MAKE IT VISUAL! Step 2 IDENTIFY CAUSE Step 3 INVOLVE ASSOCIATES & FIX! Past practice has been to throw it in the dumpster! Make it visual. Equate it to Dollars. Involve the WHOLE Team.

9. Watch (and manage) Labor Costs Eliminate Waste = Improve Efficiency Don’t Staff for Peak- use O/T & Temps Forecast Demands (later 2012) If idle time: Train, Clean, Maintain, PTO Cross Train & Move Where Needed

10. Labor Cost Control Benchmark @ SB’s: $0.0274 per click Finished 2011 @ ~ $0.025 rate Budgeted 2012 @ ~ $0.0247 average January 2012 @ ~ $0.0190

11. Rotary Output Steadily Increasing Year-on-Year Record Output in 2011 Budgeted DOWN for 2012, but really???? Planning for UPSIDE & Leadtime Reduction (000 linear feet)

12. Our New Supply Chain Organization Cost Reduction STRATEGIC SOURCING INVENTORY MANAGEMENT FACILITIES & EQUIPMENT Professionalism and Strategy in: Strategic Sourcing Inventory Management Process Improvement Facilities & Equipment PROCESS IMPROVEMENT

13. Alternative Laminate, qualified: $70,000 in 2012 Alternative Polyester, qualified: $38,000 in 2012 Negotiated Electric Rates (2 sites): $13,000 in 2012 Evaluated Cell Phone Contracts: $54,000 in 2012 Oyster to Kraft Cartons @ CDC: $13,000 in 2012 Negotiated Sun Coatings @ VNC: $59,000 in 2012 TOTAL JANUARY IMPLEMENTED: $247,000 in ‘12

14. THANK YOU!