Industry Executive Panel Dan Rosen National Sales Manager

2 Split of the Packaging Market Source: PIRA International Ltd, 2004

3 Globally 6% North America 3.4% (mature market, trade deficit) South America 8.5% (growing economy, also Mexico) Western Europe 7.6% Eastern Europe 13.8% (production shifting from West) Middle East 14% Asia 7.5% Austral-Asia 6.3% (Indian market maturation) Africa 6.1% Source: PIRA International Ltd, 2007 Flexographic Packaging Market Growth

4 Various Packaging Material Used Worldwide Source: PIRA International Ltd, 2005

5 Strongest growth in flexible packaging (my estimate 7%) Label growth is slower (my estimate 3%) Corrugated is probably flat (around 1%) Primarily, growth on the flexible packaging side is driven by food and beverage. Causes for this include population, brand segmentation, and the trend towards eating less “fresh” food. On the corrugated side, manufactured goods are supplied in an overwhelming trade deficit against North America, so growth is hampered by imports. Flexo North American Market Trends

6 Internal consolidation: less platemaking sites, more work is done digital, reducing overhead operating costs, This is done to make Tradeshops more cost competitive vs. printers making plates in- house. As a plate manufacturer we prefer Tradeshops make plates rather than printers. Reason: It is easer to service 10 large customers that 500 small ones! Consolidation via acquisition / merger: both with Tradeshops and printers. Ongoing for years, reduces operating expenses, profit models are based more on volume than high margins. Smaller independent Tradeshops focusing on niche services, broader service offerings; examples are ink-jet signage and POP displays, POD jobs, creative services, custom packaging design, cutting dies. Trends with Tradeshops

7 CPCs are pushing for transparency and “sustainability” with minimization of materials. This means more innovations in packaging design, minimization of packaging materials, more challenges perhaps for print quality. Also, more accountability throughout the supply chain. CPCs are pushing for Expanded Gamut 7-color process printing. This has not really shown cost reductions, but does provide more tools for print quality and innovative graphics. The challenge for printers and Tradeshops is dealing with the conversion costs (CPCs won't pay extra for this, yet still insist upon it.) Trends in Packaging

8 In-The-Round plate media, to compliment EGC process printing and compete with gravure. Printers want ITR from Tradeshops. Tradeshops want a reliable and affordable source of ITR plate media (photopolymer sleeves). Trends in Packaging

Thank you. Dan Rosen National Sales Manager