Gallus DCS 340 Digital converting solution

Gallus DCS 340 Digital converting solution February 2016 Ver. 2016.02.05_3.0

Status quo Conventional presses and job requirements

Voice of the Customer Biggest concerns or issues with conventional presses CONVERTERS WITH CONVENTIONAL PRESSES in % Job change over time Total cost of operation High numbers of short runs = Prepress? Media waste Plate/cylind er costs Image quality Paperwork associated with jobs Printing white Digital presses address many of the issues converters have with conventional presses Page 3 Source: InfoTrends (www.infotrends.com) N = 219 label and packaging converters

Job requirements are changing Refinement (printing quality) Commodity products Mainly affected by Short Run Prestige products Food Dairy products Retail products Softdrinks Pharma OTC Household Wine and Spirits Cosmetics and Bodycare Segmentation

Responding to issues Totally digital

Industrial-strength Digital Converting Solution Gallus DCS 340 Gallus DCS 340: The first, fully integrated Industrial-strength, Digital, Converting Solution Page 6

Value Proposition Production Security Print Quality Unparalleled Versatility Page 7

Value Proposition Security The First Industrial-Strength Digital Converting Solution based on unprecedented collaboration of three PRINT industry technology leaders: all renowned experts with world wide service delivery capabilities Heidelberg: delivering the state-of art Digital Print Unit and adding decades of prepress experience Fujifilm: providing the most innovative inkjet head technology to achieve digital offset quality Gallus: adding inline production platform, application knowhow as well as global sales reach and service footprint to the equation Page 8

Value Proposition Security Print Quality Unparalleled Versatility Page 9

Value Proposition Print Quality A new benchmark of digital offset print quality for labels. true native 1200 x 1200 dpi resolution smallest droplet (2 pl) and 8 color capability Page 10

How is this level of quality achieved? Dot size & wave form Wave form 1 puls 2 puls 3 puls Print head @ 40-60 khz Sub drops (Merging in print head) 2pl 2pl 2pl 2pl 2pl 2pl Drop 2pl 4pl 6pl Dot (depends on spreading) 38 µm 48 µm 58 µm Share of total print 90% 10% (solids) <0.1% Page 13

Drop size is what really counts! THE SMALLER THE DROPLET the smaller is the SPREAD and the higher the resolution for thin lines and small characters Droplet volume Droplet spread 2pl 6pl ~30 µm ~60 µm Addressability of smaller grid due to minimized spread 21 µm @1,200 dpi More grey scales achievable Artefacts 4x smaller, e.g., in case of crooked nozzle Page 14

Drop size is what really counts! THE SMALLER THE DROPLET the smaller its ink VOLUME Droplet volume 2pl 6pl Droplet spread ~30 µm ~60 µm Better adhesion More substrate variability Need of less curing power due to less volume Less inter color bleeding ~180 µm ~180 µm Less ink consumption in halftone areas Less costs 6x 2pl 3x 6pl ~180 µm ~180 µm Page 15

Eight Digital Colors UV Inkjet DPU print module pinning module web web tension control (register accuracy < 30µm) inspection system web edge control web cleaning cooling drum LED dryer mercury bulb dryer Printing Speed is independent of number of colors Fixed color sequence: White OGV - YMCK Page 17

Eight Colors enables the widest gamut in the industry INK COLOR GAMUT V Page 18

Hassle free brand colors High intercolor register accuracy required no visible color deviations Color Management skills required with knowledgeable prepress Digital spot colors very expensive for digital printing devices and therefore not available Page 19

Gallus DCS 340 sets a new benchmark Digital Offset Quality smaller ink VOLUME Less ink consumption semi gloss surface in half tone areas smaller ink SPREAD more grey scales smaller artefacts higher resolution sharp thin lines and small characters Step less gradients down to 0% natural skin tones Page 20

Gallus DCS 340 From file to the finished label in one pass Page 21 Company Presentation, September 2015

Value Proposition Security Print Quality Unparalleled Versatility Page 23

Unparalleled Versatility One-Pass-Productivity From file to finished label at 50m/min regardless of # of colors, resolution or finishing requirements Ease-of-use integration Inline Converting Solution combining digital flexibility with conventional productivity a new level of integration One central HMI controlling the digital and conventional modules, reduced complexity for the operator Profitability Unmatched inline and automated capabilities set new standard for cost efficiencies True variable operating service cost model. Your efficiency gains go into your pockets, not others Only pay for what you need. Page 24

Gallus DCS 340 Consumables Proprietary Saphira Ink provided by Heidelberg Page 25

Gallus DCS 340 Digital Front End (DFE) Prinect DFE Label & Machine HMI Use your OWN prepress workflow system just drop ready to print pdf into DCS DFE for easy & fast output conversion! Page 26

Gallus DCS 340 Digital Front End (DFE) Prinect DFE Label / Job processing Page 27

Value Proposition Security Print Quality Unparalleled Versatility Page 28

Summary Why Gallus believes

Gallus DCS 340 - Summary Key Facts & Figures Native Resolution Drop size Max. Speed Web Width 1200 dpi x 1200 dpi digital OFFSET quality 4 drop sizes 0-2-4-6 pl 50 m/min independent of number of colors 170 mm - 340 mm # of dig. print modules 8 W + GOV + YMCK Inline functionality Primer / spot color / varnish / laminate cold foil / die cutting / slitting Gallus DCS 340: The first, fully integrated Industrial Digital Converting Solution Page 30

Gallus DCS 340 - Product and Technology One pass productivity Gallus DCS 340 From PDF file to Label Unwinder Web tension control Corona Flexo Print Substrate conditioning Flexo Print upstream upstream DPU Digital Print Unit Print Flexo Print & Cold foil Die Cut Flexo Print Coating Web tension control Finishing downstream downstream Double rewinder Based on popular Gallus ECS 340 platform - the fastest sold flexo press in the world Page 31

Gallus Label Printing Portfolio Conventional, Multi-process Gallus TCS 250 Gallus EM 280 Gallus RCS 330/430 Gallus EM 340/430/510 S Gallus ECS C Gallus ECS 340 Page 32 Company Presentation, September 2015

Gallus Group at a Glance Facilities Corporate Headquarters, St.Gallen / Switzerland Sales Management BU Labels Research & Development BU Labels Production and Assembly: - Gallus EM 280 - Gallus TCS 250 - Gallus RCS 330/430 Printing Technology Center Customer Service & Hotline Center Corporate Marketing Corporate Management 8,700 m 2 facility BU Labels/ Gallus Druckmaschinen GmbH, Langgöns / Germany Research & Development Assembly: - Gallus EM 260/340/410/510 - Gallus EM 340/410/510 S - Gallus ECS 340 Customer Service & Hotline Center Training Center 9,000 m2 facility BU Screen printing, Herisau / Switzerland Management Sales & Marketing Research & Development Production (screen printing plates): - Gallus Screeny Standard/ Special - Gallus Screeny Tactile/ S-Line/ Digital Customer Service Screen printing training center 1,800 m2 facility

Serving the Market Worldwide Global Sales and Service Centers Gallus Sales and Service Centres (Gallus controlled) Gallus Sales and Service Centres (Representations)

Thank you! For detailed questions Karl-Gerhard Amerongen Digital Europa Label Business Phone +49 175 701 8579 karl-gerhard.amerongen@gallus-group.com Presentation Download bit.ly/gallus-pres_2016-02-09