Folding Cartons The future is today.

Packaging will

make up 50%

of print retail

by 2018.

2

Digital packaging

will nearly

double in the

next 5 years.“Global Printing Forecast,”

Smithers Pira, February 2016

“Customer engagement provides key opportunity

for digital printing in packaging, says survey,”

Smithers Pira, 2016

Packaging

Market

Highlights

• Packaging growth industry,

and now almost half of

global print retail at $400B+

• Barely developed today for

digital, with very fast growth

• Many formative and

transformational

opportunities

Approx.

Retail Print

Value $B

Digital

Mix

Digital CAGR

’15 - ’19

Labels 35 25% 11%

Flexible 70 <1% 32%

Folding Cartons 100 <1% 40%

Corrugated 135 <1% 12%

On-Shape / Other 65 <1% 44%

Marking & Coding * 25 100% 5%

Oft

en W

eb

Oft

en S

heet

MF

G L

ine

Source: Smithers PIRA except for Marking and Coding

* Marking and Coding estimates based on Xerox internal analysis

3

4

The folding carton space is changing. If you want to keep up with shorter runs, faster turnarounds and more customization, digital needs to be a part of your strategy.

Turnaround Times

• Speed to market is big business

• Inventory reduction

• Improved cash utilization

Value-Added Content

• Marketing-oriented features

• Customization

• Brand protection and asset management

• Regulatory (DQSA, FDA, etc.)

Stock Keeping Unit

(SKU) Proliferation

• Upsurge in market

versioning

• Expanding product portfolios

• Targeted marketing

5

So

urc

e: In

foT

ren

ds

51% of conventional

folding carton jobs are

under 10K in run length

0%

5%

10%

15%

20%

25%

30%

Changing Packaging Product Lifecycle

Digital packaging

opportunity today

Digital packaging

opportunity for tomorrow

PR

INT

JO

BS

A

EVENT

MARKETING

- Promotional

- Seasonal

- New Product Launch

INNOVATION

- Artwork Creation

- Package Prototypes

- Sale Samples

LOW

VOLUME

SKUs

MAINLINE – LONG RUNS END OF LIFE

DECLINING VOLUMESource: Karstedt Partners

New Products Declining Products

B C D E TIME

6

Worthwhile Sometimes Has its Challenges …

New Front-End Workflows

New Digital Printing Equipment

New / Complementary Business Models

New Jobs, New Business

New Back-End Workflows

New Finishing / Converting Equipment

New Markets, New Language, New

Requirements

New Customers, New Business

Coming From Digital Printing … … Coming From Converting

7

Xerox Focus Areas in Digital Packaging

Digital PrintingXerox can bring high value

solutions to targeted packaging

segments

• Xerography and Inkjet

• Sheet-fed and web-fed

• Narrow and wide formats

• Paper, synthetics and beyond

Flow of WorkStrong focus and capabilities

for “true” digital workflow

• Digital automation

• Bottleneck removal

• Flexible, configurable workflows

• Expanding industry partnerships

Value-Add InnovationCapabilities in brand protection,

asset management, and “smart”

packaging

• Enable brand protection, asset

management and security

• “Smart” packaging

• Customer-led innovation

Xerox has core capabilities and strengths to bring new value

to the packaging industry over time and fuel our customers’ growth…

Building new opportunities – via customer-led development, and with leading industry partners

8

Xerox® iGen

Automated

Packaging

Solution

Most widely adopted digital

folding carton solution in the

world.

Continued innovation to bring

outstanding capabilities and

performance in an affordable

and highly flexible platform.

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The first fully automated digital packaging solution for Folding Cartons

Improving the flow of work.

Fold and

Glue

Die Cut and

Crease

CoatDigital

Printing

Job Acquisition

& Workflow

Decorate

1

0

11

We can build a workflow that works for you.

Job Acquisition

& Workflow

Job Acquisition

Automate job acquisition with online tools and cloud resources to let work flow 24/7.

• XMPie® PersonalEffect®

StoreFlow™

Customization & Personalization

Turn the package into a powerful marketing tool. Increase brand exposure and long-term consumer engagement.

• Xerox® FreeFlow®

VI Suite

• XMPie®

PersonalEffect®

Color Management

Deliver consistent, accurate, repeatable and dependable color with Xerox® Confident Color.

• Xerox®

IntegratedPLUSColor Management

• Xerox® MatchAssureSolution

• Solutions from CMI and CGS-ORIS

Prepress

Simplify job preparation

activities and reduce errors

with these powerful prepress

tools.

• Xerox® FreeFlow® Core

• XMPie® PersonalEffect®

StoreFlow™

Personalized Packaging with XMPie®

Web-to-Print

The Web-to-Pack platform

solution enables packaging

manufacturers to add online

ordering capability to their

services through a special

integration with XMPie’s

robust Web-to-Print engine.

Job Acquisition

& Workflow

XMPie Customer: www.zoxxbox.com12

Xerox®

BrandSecure

Packaging

Solution

• Improve security

• Integrate tracking

• Expand marketing

opportunities

• Enhance authentication

and fraud detection

1. GlossMark®

2. Correlation Mark

3. MicroText

4. FluorescentMark

5. Infrared Text

13

2

1 4

5

3

Job Acquisition

& Workflow

Xerox Internal Use Only14 October 4, 2017

iGen3™, 4 and now 5

Xerox® iGen3®

• Automated Color Quality Suite

Xerox® iGen4 ®

• Color Maint. Tool

• Inline Spectro.

• Auto Density Control

• Auto Carrier Dispense

Xerox® iGen4® EXP

• 26”/660mm capability

• Matte Dry Ink

• Web2Finish

Xerox® iGen® 5

• 5th Color

• Up to 24pt stock support

Xerox® iGen® 150

• 25% more speed

• 2400 x 2400

Imaging Path

• Object-Oriented

Halftoning

The latest in a most distinguished family — and simply the most automated & productive digital press on the market.

Digital Printing

• State-of-the-art Actega topcoats and primer solutions

• Fast, efficient coaters can run inline or offline, and offer options for UV, aqueous, or both

We have a varied set of leading coaters and coating fluids

to help protect and maintain the integrity of your packaging.

15

Epic CTI-635 Coater TRESU Pinta Coater Actega (coating fluid)

Coat

• Enriches your digital output, providing unique coatings and effects for appeal and differentiation

• Decorate on a wide variety of stocks from paper to carton board to PVC with minimal setup time

16

Scodix Ultra Pro KAMA DC76 hot foiling/hologram unit

Decorate

Our decorating technologies give you a number of ways

to make sure your packaging stands out.

• State-of-the-art digital die cutting

• Steel plate die cutting with easy setup

• Cuts applications into intended shape/design, eliminating manual steps

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With our die cutting and creasing solutions,

every job is precise and super efficient.

KAMA DC76 Die Cutter Highcon Euclid (offline)

Die Cut and Crease

KAMA DC58 Die Cutter

18

Whether you’re looking for an inline solution

or the flexibility of an offline solution based

on business requirements and existing

assets, Xerox has the resources to build a

configuration that is right for you.

18

Inline • Increased productivity

and automation

• Avoid error rework

• Eliminate touch points

Offline

Die Cut and

CreaseDecorateCoat

Digital

PrintingDecorateCoat

Digital

PrintingCoat

Digital

Printing

• Use existing assets

• Avoid purchasing multiple

pieces of equipment that

have the same function

DecorateDie Cut and

Crease

Fold and

GlueDecorate

Die Cut and

Crease

Why Xerox iGen Press for folding cartons

• Highest availability of all digital presses in the marketplace

– Making your customer the most productive, every day

• Superb consistent quality which complies to industry standards

– Enabling your customer to print brand colors with confidence, consistently and

repeatedly

• Intrinsic automation which enables productivity and quality to happen automatically

– Enabling your customer to guarantee results with minimum manual process

• Widest range of media within the industry

– Enabling your customers to say yes to more applications

• Food safe

– Enabling your customers to accept jobs for food and drug packaging with safety

compliance

• Proven Variable Data Capabilities and integrity

– Enabling short run versioning packaging or serialization with 100% confidence

• End to end Integration and solution

– Enabling an automated process from start to finish to save time and money

Xerox Confidential19

Let’s take advantage of this tremendous opportunity—and let the work flow.

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