Ali Zarif Present Occupation: Employee of Iran Rotative Co. PJS Profession: Senior Sales Project Manager Present Fields: Teaching in the Art and Applied-Science Universities Fields of Teaching:

• Printing Technique • Technical Constriction of Book Binding • Production Concepts- Letterpress, Offset, Flexography,

Gravure Printing • Print Technology in Packaging – Flexography, Gravure Printing • Familiarity with printing Machinery • Industrial Postpress Techniques and Machinery • Familiarity with Security Printing

Related Experience: From 1994 to the present Sales consultant and project manager for printing & packaging machinery and equipment industry in Iran Rotative Exclusive agent for sales and after-sales service company in Heidelberg, Germany.

Iran Rotative Iran Rotative Co. PJS., was established 70 years ago under the initiation of Mr. A Esfarjani as a specialized company in the Iranian printing and graphic arts industry. It is the sole representative of Heidelberger Druckmachinen AG and a selected group of other well known leading companies in the printing industry. Ever since its founding, the company has been growing in size and market share. Today, Iran Rotative plays a leading role in investment consultations, sales, after sales services and training of service personnel in the Iranian printing and graphic arts industry.

Market Trends and Heidelberg Solutions in Packaging Industry Ali Zarif Senior Sales Project Manager

Peak Performance in Packaging

Folding Boxes Flexible

Labels

Cans Bottles

Wood

Jars Tubes

Corrugated

Rigid

Fabrics

Metal 14 %

Glas 7 %

Paper & Board 31%

Plastics** 43 %

Packaging Market 2013: € 619 bn *

Others 5 %

*Adjusted for price changes and currency fluctuations – Base year 2012 **incudes Flexible Papers like Bags, Sacks, Wraps & Pouches Source: Pira 2013, SX3

Packaging Market by Materials

Peak Performance in Packaging

Folding Boxes Flexible

Labels

Cans Bottles

Wood

Jars Tubes

Corrugated

Rigid

Fabrics

Metal 14 %

Glass 7 %

Paper & Board 31 %

Plastics** 43 %

Packaging Market 2013: € 619 bn*

Others 5 %

Packaging segments serviced by Heidelberg and Gallus

PPV 49 bn€

PPV 19 bn€

PPV 41 bn€

*Adjusted for price changes and currency fluctuations – Base year 2012 **incudes Flexible Papers like Bags, Sacks, Wraps & Pouches Source: Pira 2013, SX3

Peak Performance in Packaging

26%

9%

12% 31%

22%

Asia Pacific (w/o Japan)

Japan

Latin America / Rest of World

Total Europe

North America

World Packaging Market 2013 € 619 bn *

Source: Pira 2013, SX3

50%

2%

30%

13% 5%

Asia Pacific (w/o Japan)

Japan

Latin America / Rest of World

Total Europe

North America

World Population 2013 7,5 bn

Population drives Packaging in Asia, Differentiation drives Packaging in Western World

Source: Global Insight 2014

*Adjusted for price changes and currency fluctuations – Base year 2012

Peak Performance in Packaging

Source: Heidelberg estimate – April 2012, industry statistics, PIRA, Jakkoo Pöyry, Primir (GAMIS), Global Insight *Base Year 2009; ** Source: Pira Packaging study 2009

Heidelberg’s Packaging Core Markets by Production Process CY 2011 in Total

109 bn. €*

End Use Markets** Process share

101 bn. €*

Peak Performance in Packaging

Approx. 70% of the global Packaging PPV is produced in industrialized countries, future growth is primarily in emerging countries increasing the share to 38% in 2020

PPV– Industrial Markets [in mil€] GDP – Growth 2,1% p.a. (2012 – 2020)

PPV– Developing Markets [in mil€] GDP – Growth 5,7% p.a. (2012 – 2020)

CY 12 CY 15 CY 20 CY 12 CY 15 CY 20

Source: Heidelberg estimate – May 2013, industry statistics, PIRA, RISI, PRIMIR, Global Insight Base Year 2009

Commercials Packaging Commercials Packaging

- 0,9% p.a.

- 0,8% p.a.

1,7% p.a.

1,9% p.a.

4,0% p.a.

3,8% p.a.

6,4% p.a.

5,7% p.a.

289 287 287

121 139

172

Packaging growth in line with avg. GDP Packaging growth below avg. GDP

Peak Performance in Packaging

Folding Carton Market Europe – ECMA Statistics

Peak Performance in Packaging

Folding Carton Market Europe – ECMA Statistics

Peak Performance in Packaging

Folding Carton Market Europe – ECMA Statistics

Peak Performance in Packaging

Folding Carton Market Europe – ECMA Statistics

Peak Performance in Packaging

EHI – Retail Institute at ECMA Conference

Peak Performance in Packaging

EHI – Retail Institute at ECMA Conference

Peak Performance in Packaging

EHI – Retail Institute at ECMA Conference

Peak Performance in Packaging

EHI – Retail Institute at ECMA Conference

Peak Performance in Packaging

EHI – Retail Institute at ECMA Conference

Peak Performance in Packaging

Hello Fresh – Food distribution

Peak Performance in Packaging

Strategic orientation at Heidelberg

Leverage the potential of emerging markets, expand growth segments, and counter the market's cyclic tendencies

Strategic orientation

Emer

ging

m

arke

ts

Pack

agin

g pr

intin

g

Serv

ices

&

Con

sum

able

s

Dig

ital &

New

Bu

sine

sses

Peak Performance in Packaging

20

Peak Performance in Packaging

Heidelberg offers solutions for the whole value chain Prepress Press Postpress

Suprasetter A 75 Suprasetter A105 Suprasetter VLF

Folding

Speedmaster XL 75 XL 75 Anicolor

Speedmaster XL 106 Speedmaster SX 52 Anicolor

Speedmaster XL 145 Speedmaster XL 162

Cutting

Postpress Packaging

Postpress Commercial

Digital Printing

Speedmaster SX 74

Speedmaster SX 52 Speedmaster CX 102 Speedmaster SX 102

Speedmaster SM 74

Speedmaster SM 52 Speedmaster CD 102 Speedmaster SM 102

Standard Models

Professional Class

Peak Performance Commercial Printing

Label Printing

Software Solutions

Computer to Plate

Suprasetter A 52

Linoprint Prinect

Gallus DCS 340

Die Cutting

Folding Carton Gluing

Industrial Print

Web Carton Converting

Entire Value Chain is integrated with the Prinect Workflow and supported with Systemservice and Consumables

Peak Performance in Packaging

Prinect Workflow for Packaging

Finishing Integration

MIS / ERP Integration

Structural and Graphics Design

Prepress Workflow

Print Integration

Color and Quality Management

Peak Performance in Packaging

Trends in Packaging

Make Ready Waste

Shorter Runs Shorter delivery times

Fewer long term contracts

Optimized inventory management across

supply chain Brand Owner Retail

Converter

HEIDELBERG

Peak Performance in Packaging

Trends in Packaging

Highest Productivity Consulting Projects

Customized/ Specialized Equipment

Margin Pressure Increasing

Specialization Cross Segment

Selling

Stronger Competition Brand Owner

Retail

Converter

HEIDELBERG

Peak Performance in Packaging

Trends in Packaging

We are already there! Colour Management

Follow their customers

Implementation of Standards

Cooperation und Alliances

Opportunities in global Market Brand Owner

Retail

Converter

HEIDELBERG

Peak Performance in Packaging

Trends in Packaging

Brand Owner Retail

Converter

HEIDELBERG Highly efficient

Peripheral Devices

CO2 neutralized equipment

Consumables

Minimize Waste and Energy consumption

Carton Design

Good Manufacturing Practice

Sustainability Product Safety

Peak Performance in Packaging

Peak Performance with Prinect

Peak Performance in Packaging

Packaging Print Workflow

Prinect is the operating system for your print shop

Peak Performance in Packaging

Prinect Solution for Folding Boxes & Label Production in Offset – from Design to Finishing!

• The only completely integrated production workflow for packaging Less errors, reduced set-up times and less waste in print and finishing Top quality, repeatable at any time More transparency & cost control!

Peak Performance in Packaging

Packaging Development Prinect Package Designer

• Efficient CAD/CAM (Computer Aided Design & Manufacturing)

Fast, error-free design for packages and displays 3D soft proofs for fast and cheap communication

with customers Illustrator Plug-in for easy and accurate creation

of graphic design Cost reduction in production

Peak Performance in Packaging

Pre Press Prinect Prepress Manager and PDF Toolbox

• PDF-based workflow to prepare design data for print

• Prinect Prepress Manager for automated processing and creation of presetting values for press

• PDF Toolbox for easy PDF editing

Peak Performance in Packaging

Sheet Preparation Prinect Signa Station Packaging Pro

• Efficient print sheet creation

• Import/export of all kinds of CAD formats • Step & repeat with minimum waste • Gang form creation • 3D Model: Virtual proof of structural design • Clip path definition • Intelligent mark handling • Barcode generation

Peak Performance in Packaging

Integrated Production Planning and Control Prinect Scheduler

• Electronic planning board Complete, up-to-date overview Load balancing, fast reaction Reduction of make-ready

times

Peak Performance in Packaging

Prinect Integration Prinect Pressroom Manager and Postpress Manager

• Taking over presetting data from Prepress

Fast make-ready

• Online feedback from machines for production transparency and post calculation

• Reliable data for product costing analysis • Prinect Mobile

Peak Performance in Packaging

Production Management with intelligent data handling MIS/ERP and Prinect Integration Manager

Higher process security due to consistent master data All data is captured only once: Savings of ~8 minutes per job!

Peak Performance in Packaging

Peak Performance with Speedmaster XL Series

Peak Performance in Packaging

Peak Performance Speedmaster XL 106 / XL 145 or XL 162

Peak Performance in Packaging

Speedmaster XL 145 Outstanding Performance in Large-Format Applications

Print Quality Reliability Press Speed Automation Makeready

Platform Ergonomics Flexibility systemservice

Peak Performance in Packaging

Distribution sold HDM VLF PUs per Application

Peak Performance in Packaging

Packaging / Folding Carton Printing

Peak Performance in Packaging

Karl Knauer, Biberach (D)

Speedmaster XL 145-6+L with Inpress Control (folding box)

Peak Performance in Packaging

MMP Packaging France, Monéteau (F)

Speedmaster XL 145-6+L with Axis Control (folding box)

Peak Performance in Packaging

Milestones

Mile Stones in VLF Packaging XL145-6LX Freund Packg. In Production 2009 XL145-6LYYLX Karl Knauer In Production 2009 XL145-6LX ColorBridge, China In Production 2009 XL145-6LX FengYui, China In Production 2009 XL145-6LX Proteus, US In Production 2009 XL145-6LX Rock Tenn, US In Production 2010 XL162-8LX Rock Tenn, CAN In Production 2010 XL162-6L Bell, US In Production 2010 XL145-6LX Mayr Melnhof In Production 2010 XL145-5 Feile, China In Production 2011

Further machines sold – to be installed 2011 Mosbah Egypt / UK / Tanax Japan ...

Peak Performance in Packaging

Product Positioning – Format 70 × 100 Straight Models

Production Speed

Red

uctio

n in

Mak

e R

eady

Peak Performance

Increased Net Productivity Speedmaster XL 106

Max. 18,000 sph

Speedmaster CX 102 Max. 16,500 sph

Max. 15,000 sph Speedmaster CD 102

Peak Performance in Packaging

Differentiation through Special Applications

HEIDELBERG Equipment for Specialists • Customized Equipment • High speed lines

Speedmaster XL105-LYY-9+LYYLX

Diana X 115

Converters • Price Pressure • Increasing Specialization • Cross Segment Selling

Peak Performance in Packaging

• Communication of individuality, Value and Quality

• Successful brand communication • Price positioning of products • Differentiates from competition • Recognition/Identification of

products • Creates visual interest at POS • Independent from media

consumption

Special Effects in Packaging

Peak Performance in Packaging

Customizing - The Peak Performance Class is the ideal Platform for Specialty Printing Configurations

UV and Hybride Configurations

Double Coating Configurations

Peak Performance Class

Perfecting with UV Configurations

Duo Configurations

Peak Performance in Packaging

Coldfoil in Sheetfed Offset FoilStar from Heidelberg

Step 2 Application of metallic layer in printing unit 2

Step 1 Transfer of adhesive in printing unit 1

2 Installations in China

Peak Performance in Packaging

Comparison XL 105 DuoPress with Coldfoil vs. Metalized board (06/2010)

Perspective of view of print buyers

Study for PMI – results: • Comparable quality - accepted

• More design variety – brand differentiation

• Savings in production – wish for inline

• Subsequent benefits in gluing and filling

Original Metalized

Board Simulation

Coldfoil

Peak Performance in Packaging

Trends in tobacco packaging

Special application on cigarettes packaging increasing

• More attractive and stimulating packaging - substrates, colors, effects for event packs or mock-ups

• Metalized board with laminated holographic foils (only UV printing)

• First real jobs in 2011 with coldfoil

• Cast & Cure

• Enhanced security features with security ink, hologram foil embossing

Peak Performance in Packaging

Trends in tobacco packaging

More and more cosmetic touch • 3D effects - “tactile varnish”

• Attraction younger generation and especially women

• More than a cigarette box – expression of lifestyle (comparable with Apple)

• No more open advertisement leads that package at POS is decisive

We see larger cosmetic printers being approached by PMI, BAT, JTI and Imperial Tobacco

Peak Performance in Packaging

Evidence of the market development

Example 1: High Quality Packaging (Confectionary, Cosmetics, Tobacco) Customer in Germany – to installed 05/2011

Speedmaster XL105-LYY-P-9+LYYLX with Coldfoil

Peak Performance in Packaging

Evidence of the market development

Speedmaster XL106-9-LYYLYY1+X1

Example 2: High Quality Packaging (Cosmetics, Health and Beauty) Customer in Germany – to installed 2013

Peak Performance in Packaging

Environmental impact of printing

Paper

Energy

Waste Heat

Paper Waste

Powder Coating Ink IPA Cleaning Solvent

Printing Plates

Dust Ammonia Ink Waste

VOC

Dampening Solution

Noise Waste Plates

Prin

t Pr

oduc

t

Peak Performance in Packaging

Environmental policy

Values and principles

5-year-program “Environment”

HEI ECO Solutions for Ecological Printing

CO2 Emission Waste

Raw Materials

Peak Performance in Packaging

Dedicated Projects in R&D to support sustainable Printshops

CO2 Emission Waste

Raw Materials

• Waste sheet reduction • Prinect Inpress Control • Prinect Image Control • Prinect Workflow

• Lower energy consumption • StarPeripherals system • DryStar waste heat recovery • Suprasetter A Series • … • VOC reduction

• IPA-free package

• Noise reduction • Acoustic package

• Dust reduction • PowderStar • CleanStar

• Process Waste • InkStar (Direct) • FilterStar (Compact)

• Saphira ECO Line

Peak Performance in Packaging

Peak Performance in Postpress Dr. Frank Schaum, Heidelberg, Business Area Postpress

Peak Performance in Packaging

The reshaped Heidelberg Postpress Business

Build strategic partnerships to become the best Partner for Postpress

Commercial

Packaging

Folding Cutting Partnering

Partnering Die Cutter

Folder Gluer

Sales Service

Partnership with Masterworks: • Revision of our portfolio to meet

the requirements of the most rapidly growing packaging markets

• Two partners combine their strengths to become the best Partner for our customers in the carton converting industries

R&D Production

Sales Service R&D Production

Peak Performance in Packaging

MK Factory No. 11 Shuangchenzhonglu Beichen Science and Technology Area, Tianjin, 300400 China

Feeder Assembly Warehouse Machine Assembly

Peak Performance in Packaging

Heidelberg Folder Gluer Portfolio With Diana X we have the highest perfoming machine available. With Diana smart we extended the portfolio to a wider range of customers.

Value Professional Peak Performance

100

80

50

Easygluer 100

Diana Smart 80

Diana X 115

Diana X 80

Diana Smart 55

Peak Performance in Packaging

Heidelberg Die Cutter Portfolio The portfolio suits to midrange output where a majority of customers are looking for professional products and services.

Entry Value Professional Peak Performance

VLF (145)

MK 1450 E

70 x 100

Easymatrix 106 C / CS Varimatrix 105 C / CS Promatrix 106 CS Promatrix 106 CSB Dyset XL

50 x 70

Varimatrix 82 CS

MK 1450 ER

Projects planned

Projects planned

Projects planned

Peak Performance in Packaging

Thank you for your attention