PHARMA IMPRESSIONS. Packaging Solutions Newsletter 01 / 16 AT CONSTANTIA FLEXIBLES, THE NEW YEAR IS STARTING OFF RIGHT AWAY WITH A PREMIERE

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1 Pharma PHARMA IMPRESSIONS Packaging Solutions Newsletter 01 / 16 AT CONSTANTIA FLEXIBLES, THE NEW YEAR IS STARTING OFF RIGHT AWAY WITH A PREMIERE The new all-in-one primer has taken its first steps onto the market. In addition, our standard blister lidding foil has received a child resistance upgrade. It is well known that aluminum by its nature does not absorb a drop of printing ink, which means that it is necessary to apply a primer before the actual printing process in order for the ink to take hold. On average, this layer is 1-2 µm thick. With our new all-in-one primer, it is possible to achieve first-class ink adhesion with diverse printing systems, says Stefan Frischmann, Product Manager CONSTANTIA Blister in the Pharma Division of Constantia Flexibles, explaining the advantage of the all-in-one primer. This primer can receive every ink typically available on the market with a wide range of contact and curing times. There is no loss in the quality of image reproduction quite the contrary: the all-in-one primer gleams with excellent image clarity. It was developed primarily for the inline and offline printing systems used in the Pharma market as well as for gravure printing and flexoprinting on our machines. Plus: Initial customer feedback is very good! Standard blister lidding foil: Child-resistant with CONSTANTIA Upgraded The standard blister lidding foil of Constantia Flexibles has received an important upgrade: a child-resistant solution for pushing out tablets. We have achieved this with an additional PET (6 µm) or paper (35 µm) layer on the outside. The sealing side remains unchanged from our standard lidding foil. This allows for shorter approval processes because additional stability tests are not necessary. These child resistance solutions offer the great advantage of fulfilling worldwide statutory requirements for the child-safety of blisters. Their printing properties inline and offline are also excellent, as you d expect of Constantia Flexibles. The goal was to develop a child-resistant solution that can be put to use by our customers as quickly as possible, and I am convinced we ve succeeded, says Stefan Frischmann, Product Manager CONSTANTIA Blister of the Pharma Division of Constantia Flexibles. For more information about the all-in-one primer and the child-resistant lidding foil, please contact Stefan Frischmann: Stefan.Frischmann@hueck.cflex.com. CONTENT Editorial Fairs and Events News Investments

2 WE CREATE EYE-CATCHERS ON THE SUPERMARKET SHELF! EDITORIAL In the competition between brands, every product must attract attention on the supermarket shelf in order to convince shoppers to buy it. Peter Kerkhofs, who is responsible for the packaging of Home & Personal Care products at Constantia Flexibles, knows what matters here: Why are design and product quality so important, for example with Home & Personal Care products, when it is actually the contents that matter? Both reflect the image of the respective brand. The product distinguishes itself from the competition through the quality of the design and the printing. This is more important now than ever since there are numerous competing products in almost every product group. In other words, design and printing are responsible for making visual contact with the desired buyer. Is that also a form of communication? Yes, this connection between the product and the expectations of the buyer can be further intensified through innovative special effects. This includes, for example, matt or pearlescent effects, a metallic look or to name a very different examples microencapsulated scents or aromas. These aromas are released by rubbing the ink field. As a final example, there are also thermochromic inks that change depending on the temperature. In summary, one can definitely say: We create eye-catchers on the supermarket shelf! Do you have a specific example of this from the supermarket shelf? A leading manufacturer of home and body care products needed a transparent standing pouch. The special requirement lay in placing two complete graphics on the rear of the packaging. One graphic was to be situated on the outside and was visible from the outside. The second graphic was to be situated on the inside and be visible through the transparent filling of the packaging, as if looking into an aquarium. This request was a great challenge for the printing process. We therefore modified the original design and decided to print exclusively on the rear of the web. As a result, the entire printed material is protected on the one side by the web and on the other by the sealing. Finally, the design was adapted to the colors available on our printing machine. The new year will bring many new things including within the Pharma Division of Constantia Flexibles. Accordingly, we already have six news items to report in our newsletter. One good piece of news is that our new all-in-one primer has been successfully launched on the market, and we are not exaggerating when we say that the initial customer reaction has been very enthusiastic. Another is that our standard blister lidding foil has been upgraded and can now also be offered in a childresistant form. An important organizational change was implemented at the start of the year that will be of great benefit to our customers: Technical Key Account Management. The Technical Key Account Manager will support our colleagues in Key Account Management in all technical matters. We have made it our mission to develop the innovations that satisfy the wishes of our customers. In order that we can progress even more quickly with our research and development, we have founded the Product Excellence Center Pharma with a focus on blister packaging. I am certain that we will soon have even more news to report from the PEC, as we call it for short. Constantia Flexibles has grown tremendously in recent years. Now that the antitrust authorities have given their approval, we have grown in South Africa as well, with the South African Afripack Group now belonging to Constantia Flexibles. Last but not least, I would like to inform you about the new image video for Constantia Flexibles, which we all consider to have been a great success: Pierre-Henri Bruchon Executive Vice President

3 IT WAS NICE TO MEET YOU FAIRS AND EVENTS Fairs and conferences are very important to us because personal contact is the best way to learn what the market expects from us. In the past weeks and months, we have been travelling once gain to Mumbai, Edinburgh and Algiers. P-Mec Mumbai Our participation at CPhI and P-MEC India has practically become a ritual. This also includes the repeated recognition of what a great success this fair is: More than 32,000 participants came together between December 1st and 3rd. At our booth in hall 5, an unending stream of visitors flowed by no wonder we made so many contacts with representatives from over 250 companies. These came not only from India but also from Bangladesh, Sri Lanka, Nepal, the Near East and even from Europe, Africa and North America. DDL26 Conference Edinburgh Drug delivery to the lungs that s what the abbreviation DDL stands for: Once a year, all market participants in the inhalation market meet at this scientific conference with associated technical exhibition. This includes scientists, designers and manufacturers of machines, components and packaging. The Pharma Division of Constantia Flexibles has now participated with an exhibition booth for the second year running and it was a great success. Our employees had a number of interesting discussions with known and new industry experts between December 9th and 11th. Intensive dialog is necessary in order to hear about new products and trends in a timely fashion, particularly in a relatively small market but rapidly growing inhalation market. Maghreb Pharma Plus: We once again took part in Maghreb Pharma in Algeria. You can read more about this in our country report on Algeria. To finish with, here s one more important piece of information: Our Customer Academy is going East and will be held from April 6th to 8th in Bad Erlach and at the site of Constantia Patz. For more information, please contact Irmgard Oikarinen, Regional Sales Manager Eastern Europe, Irmgard.Oikarinen@hueck.cflex.com. P-Mec Mumbai P-Mec Mumbai DDL26 Conference Edinburgh STOP-PRESS: GREAT SUCCESS FOR CONSTANTIA FLEXIBLES AT PHARMAPACK IN PARIS Pharmapack in Paris has been an established industry gathering since The numbers alone in 2015 were very impressive with over 370 exhibitors and more than 3,000 visitors. In light of the importance of this gathering of industry experts, Constantia Flexibles redesigned its fair booth to reflect its position as a globally leading provider. The success of the event clearly justified this effort. Over the two days of the fair, we presented a number of innovations and new developments to many interested visitors. These included CONSTANTIA Safemax and CONSTANTIA DryFoil, two products that we have already reported on in previous newsletters. Pharmapack Paris

4 JUST WHAT YOU ASKED FOR: THE NEW TECHNICAL ORGANIZATION NEWS Through close and intensive dialog with our customers, we know what they would like from us. This includes new products, technical solutions and consulting services. A wish for more intensive support in the technical area in particular has also existed for some time. This will now become a reality with Technical Key Account Management, or TKAM for short. The TKAM will support the Key Account Manager in technical matters this applies in both externally with our customers and internally within Constantia Flexibles. The TKAM will ensure broader access to the competences embedded throughout the entire Constantia Flexibles Group as well as to knowledge about market trends and product developments. Two new leadership functions have been created for this purpose: Head of Innovation Blister and Head of Innovation Laminate. Their work will focus on the development of innovative customer solutions. They will also be able to rely on a team of excellent development engineers in the Product Excellence Centers (Please read more about it in the article below). The Product Excellence Center Blister is located at Constantia Patz in Natschbach- Loipersbach, Austria, and the Product Excellence Center Laminate at Constantia Tobepal in Logroño, Spain. NORTH AFRICA I: MOROCCO, A COUNTRY WITH POTENTIAL As envisioned by King Mohamed VI and the national government, Morocco should become an emerging country with diversified industry and a competitive service sector. IMS Health may not count the Moroccan pharma market among the 21 pharmerging countries, but the country on the Mediterranean and the Atlantic offers great potential with regard to the pharmaceutical industry. This is due to a population of 35 million, stable economic growth and a middle class that aspires to a greater quality of life. The Moroccan pharmaceutical industry holds second place in Africa. With almost 40 laboratories, 32 industry facilities and over 11,000 pharmacies, the domestic pharmaceutical industry covers roughly 70 percent of the country s demand. Seven to eight percent of domestic production is exported, primarily to countries south of the Sahara. However: The industry is going through a difficult phase resulting from price reductions on roughly 2,000 medications during the last three years. Despite a volume increase of 1.2 percent in 2014, the value of the products declined by a total of 2.7 percent. The Pharma Division of Constantia Flexibles covers a large portion of the demand of the Moroccan pharmaceutical industry, primarily with blister lidding foils, coldform foils and multilayer laminates with paper and PET outer layer. This success is the result of the well-known approach taken by the employees of Constantia Flexibles: close and trustworthy cooperation with local partners. Pharma

5 NEWS NORTH AFRICA II: ALGERIA, A FAST-PACED MARKET The trade fair Maghreb Pharma in Algiers is an especially important event for the Pharma Division of Constantia Flexibles for establishing contacts and exchanging information. Why? Because the pharmaceutical market here is undergoing exceptionally exciting and promising developments. For this reason, we exhibited at the trade fair for the fourth time. The market for pharmaceutical products in Algeria is extremely healthy production has tripled in the past five years. Domestic production covers approximately 40 percent of the market. Roughly 150 new production sites are in development and another 100 projects have been approved for the next four years. There are two important reasons for this dynamic development: On one hand, the government is subsidizing this development with funds amounting to almost three billion US dollars in order to improve access to medications within the country. On the other hand, the attitude toward self-medication is changing within the growing population. Because the Algerian pharmaceutical industry is relatively young, it frequently lacks the required know-how in the area of packaging, which is why it is important for us to have a strong local presence. FOR EXCELLENT PRODUCTS: PEC PATZ A reason to celebrate: The Product Excellence Center PEC for short with a focus on blister packaging was dedicated at the Constantia Patz site. This new center will connect the already existing Competence Centers of Aluminum and Films even more strongly with Pharma application engineering and product development. In addition, the PEC Blister will also cooperate with external institutions and act as a backbone for the area of application engineering. With regard to everyday work, this means that our push projects will be implemented and pull projects supported here. It goes without saying that the focus is on the further development of coldform foil products. Additional services will also be established in the future. One example is simulations of processing methods in particular the shaping of coldform foil with designed forming plugs. Another is our unique market leading service where we can take a customer s tablet / capsule drawing, design the optimal Blister cavity and provide the customer a digitally printed full scale prototype or even a punch of blisters made from the Constantia Coldform material of choice, greatly improving the customer s packaging design process. Analysing surface characteristics of lacquers Precise analysis Real Life test Pharma

6 Pharma ACQUISITION OF AFRIPACK WELCOME TO THE CLUB We would like to cordially welcome the employees of Afripack to Constantia Flexibles, and we look forward with great pleasure to growing our business on this exciting continent, said Friedrich Humer, Executive Vice President Food Emerging Markets at Constantia Flexibles. With this manufacturer of flexible packaging, the Constantia Flexibles Group is expanding its position in the growth market of sub-saharan Africa. Af- ripack is the second-largest company for flexible packaging in South Africa and sub-saharan Africa and is headquartered in Durban on the east coast of South Africa. The company produces flexible food packaging and labels for the local market as well as for select African export countries. Plus: Afripack currently employs around 1,150 employees in six plants in South Africa and one each in Kenya and on Mauritius. CONTACT Published by: Constantia Flexibles International GmbH Pharma Division Rivergate, Handelskai Vienna/Austria T Pharma@cflex.com Personalcare@cflex.com Afripack plant Afripack employees ON A PERSONAL NOTE After a long and successful time working with you as customers, colleagues in the Pharma Division and our Executive Vice President, Pierre- Henri Bruchon, I would like to take this opportunity to bid you farewell. The collaboration with you, the exchange of ideas and the constant transfer of knowledge in both directions was always an enriching experience for me. In the next issue, we will present to you our new marketing organization, which will also provide you with professional and motivated service based on extensive know-how. I offer my deepest thanks for the trust that you placed in me. In the future, I will be taking on other duties within the Constantia Flexibles Group. Sincerely, Cora Helberg 03_2016