Welcome

Shlomo Nimrodi

Welcome Partners

Our Objectives for Today

• Introductions

• Information exchange

• Learning from you about your markets

• How to sell Highcon Productso Tools

o Objections

o Experience

• Providing you with everything you need to meet your sales objectives

Made in Israel - https://youtu.be/o_MVzcTrHho

Israel - Super Power in the Space

Milestones

20172012

drupa 2012 -launch of digital

finishing for short runs

2014

Efficiency -digital stripping, registration, etc.

2015

Launch ofEuclid IIS for B2 digital printing

market

2009

Highcon established

2013

S/w speed boost for

Euclid install base

drupa 2016 –Beam launch

customization, workflow, speed

2016 2018

Launch of Euclid IIIC to corrugated

market

Highcon Customers - Global Footprint

HIGHLIGHT MEDIAGERMANY

POCKET FOLDERS FASTUSA

AMERICAN GREETINGSUSA

CAROLINA GRAPHICSUSA

GRAFICAS CORONA JEMEXICO

CJ GRAPHICSCANADA

GLOSSOP CARTONSUK

HERAPUERTO RICO

EALANGOLA

SKITZAISRAEL

MANG SANGHONG KONG

GOLDEN EAGLE PRINTINGCHINA

KOMORIJAPAN

HISWILLSOUTH KOREA

PRINGRAFITALY

GAFS KARTONGSWEDEN

LxBxHSWITZERLAND

EVERGOCANADA

HEINGERMANY

WIHABONETHERLANDS

DLWFRANCE

CARTONNAGE DU CHATEAUFRANCE

LEXONUK

COLORDRUCKGERMANY

GONDI GROUPMEXICO

GOZAKACOSTA RICA

BOUTWELL OWENSUSA

DRAEGERFRANCE

ALL PACKAGING COMPANYUSA

VISINGPACKVIETNAM

HUNG HINGHONG KONG

AN STUDIOPOLAND

TECH:ARTITALY

ILAN PRINTISRAEL

IMPRESS USA

ELINIRISRAEL

ORORAAUSTRALIA

KIM PAITHAILAND

MEGA LASERTAIWAN

QP PRINTINGHONG KONG

AUTAJONFrance

WESTROCKUSA

HEUCHEMERGERMANY

Over 50% of Highcon installed machines were sold by our Partners15% from repeat customers

Segmentation

Folding Carton Converters,

40%Corrugated Converters,

40%

Print Service Providers, 20%

Target Segments

Folding Carton Converters Corrugated Converters

Print Service Providers

Folding Carton

Converters34%

Corrugated 11%

Print Service Providers

40%

Printer/ Converter,

15%

Current Install Base Segments

Folding Carton Converters Corrugated

Print Service Providers Printer/ Converter

Focus for Next 12 Months

• Improving machine predictability & utilization: o Speed

o Workflow

o Setup time

o Cutting & Creasing quality

o Registration

• Improving customer satisfaction: o Operator experience & confidence level

o Improve substrate range and thicknesses

o Identify more applications

Highcon Customer Production Growth

Grupo Gondi, Mexico (F/C)

52%

6,700 s/job

Brands That Are Digitally Finishing Their Products Today

www.highcon.net

Market Trends

Retail Trends – 1 Online

• Online purchasing incorporates next-day delivery, eCommerce, m-commerce

• Personalization for relevance – based on data

• Subscription boxes

Shopify: Global Ecommerce Statistics and Trends to Launch Your Business Beyond Borders

Retail Trends 2 – Omni-channel

Companies that utilize omnichannel strategies retain an average of 89% of their customers, while companies without omnichannel offerings only retain 39%.

Customization

Consumer

Launch Display Shelf appeal

The Omni-channel Campaign Solution

Online

3

Supply Chain

Retail Trends 3 – Corrugated Packaging

• Reduced commoditization, greater customization and a closer link with consumer attitudes

• Reputational issue on a global scale o Consumers see it as wasteful

o Overpackaging is strongly criticised

o Broad public debate on the need for sustainable packaging

The Result of the Trends

• Short lead times

• Reduced inventory

• Reduced working capital

Highcon Response To Retailer SuccessProduct Benefits Customer Experience

Increase Pleasure

Eliminate PainPoints

Speed to market, short runs, rapid approval cycles, performance

Customization, unboxing experience, displays, omni-channel

Frustration free, dual purpose packaging, lightweighting, sustainability

Product Brand – branded performance superiority

Experiential – enhanced customer experience

Low Price – operational excellence, lowest costs, efficiencies

Frictionless – comprehensive customer understanding & total convenience

Design flexibility & innovation, creativity, seasonal, regional, brand consistency

www.highcon.net

Customer Success

Yariv Ben-Yosef

Agenda

• Customer success- Background

• Customer success- Why is it needed and what is our purpose?

• Customer success- What did we learn from our best customers?

• Customer success- What do we do?

• Q&A

BackgroundNo growth- this is risking the business

ValueNeed to manage the purposed value and actual usage to gain value and improve

Why do we need it- we are not SAASVariation- some get it some don’t… we must help everyone become successful

Our purpose

Enable our customer growth and meet their

desired outcome

Lets First Talk About The Highcon Value

Finish First! -Driving Agile Production

1- Accepting all volume- MARKET DEMANDS!

“Only 1000 boxes???

… Sorry minimum

order is 10,000”

2- Deliver in 24 Hours- MARKET DEMANDS!

“We are Fast…

4-5 days”

3- Operational Benefit

“Expensive???…

Setup time & Manual labor”

4- CREATIVE

“Can you?…

Well there are some

limitation…”

5- Quality

“Sorry, this is the best we can do with

the technology”

What Do We Do To Address The Gap?

Health Review- Keeps Us Proactive

BI system

Mind set

On-boarding To Assure Customers Create Value

BI system

Onboarding

Mind set

Deliver Unique Needs

BI system

Application support

Onboarding

Mind set

Building A Community That Shares

BI system

Application support

Onboarding

Mind set

Design community

High % Of Service Renewal

BI system

Application support

Onboarding

Mind set

Service contract renewal

Design community

Customer-centric Culture

Customer

Partners

APAC

Customer Success

Q&A

www.highcon.net

Product Portfolio And RoadmapHaim Veig

Highcon Portfolio

Highcon Product Portfolio

Digital cutting and creasing for mainstream production

Highcon

BeamHighcon

Euclid IIIApplication

versatility by digital cutting and

creasing

Highcon

Euclid IIISDigital cutting and

creasing in aB2 format

Highcon

Euclid IIICDigital cutting and

creasing in aB1 and B2 format

for corrugated board

Folding carton CorrugatedCommercial print

Folding carton entry level/commercial print

Highcon’s Value Proposition

Converters and printers

• Speed to market

• Profitable short runs

• Performanceo Zipper tearso Perforations

• Charge premium for:o Design flexibilityo Creativity unleashedo Promote faster delivery timeso Actively pursue short run opportunities

• Cost saving:o Reduce skilled labor and manual

processeso Cost of tooling and setupso High machine utilization

• Sustainable technology

Corrugated boxes and display

• Speed to market

• Profitable short runs

• Performanceo Perforation (cleaner edge)

o Zipper tear

o Special decoration cutouts o Half cut

o Marking \ Etching

o VDC – Variable Data Cutting

• Strength – Box compressions testso Highcon Vs. Conventional

• Shelf appeal and displays

• Customize size & structure o reduce shipping costs, reduce waste

Production up to

5,000 B1sheets/hour

Highcon

Beam

Main Features

• Up to 5,000 SPH (B1 / 40 in.)

• Wide substrate range

• Modules included• CAD Light Editor

• Optional modules• Variable Data Cutting• Advanced Registration• Highcon Integrated Digital Stripping

Parameter Spec

Max format (mm) 760 X 1060 portrait (30 X 42")

Min format (mm) 500 X 700 portrait (19.7 X 27.6”)

Cardboard and label thickness (µ)

200 - 900 (8-36pt.) cutting

200 - 650 (8-26pt.) creasing

Microflute (mm) N+F+G

Corrugated (mm) E up to 2mm (78pt.)

Highcon Euclid III

Application versatility by digital cutting and creasing

Main Features

• Up to 2,250 SPH (B1 / 42 in.)

• Modules included• CAD Light Editor

• Optional modules• Variable Data Cutting

• Advanced Registration• Highcon Integrated Digital Stripping

Parameter Spec

Max format (mm) 760X1060 portrait (30X42")

Min format (mm) 320X457 portrait (12.5X18")

Cardboard and label thickness (µ)

200-600 (8-24pt.)

Microflute N+F+G up to 1.2 (47pt.)

Highcon Euclid IIIS

Digital cutting and creasing

in aB2 format

Euclid IIIS Main features

• Up to 2,750 SPH (B2 / 30 in.)

• Modules included• CAD Light Editor

• Optional modules• Highcon Integrated Digital Stripping • Variable Data Cutting• Advanced Registration

• Optional upgrade to a full Euclid III (B1)

Parameter Spec

Max format (mm) 530X760 portrait (30X42")

Min format (mm) 320X457 portrait (12.5X18")

Cardboard and label thickness (µ)

200-600 (8-24pt.)

Microflute N+F+G up to 1.2 (47pt.)

Digital cutting & creasing

for corrugated

board

Highcon

Euclid IIIC

Euclid IIIC Main features

• Up to 2,250 SPH (B1 / 42 in.)

• Modules included• CAD Light Editor

• Optional modules• Variable Data Cutting• Highcon Integrated Digital Stripping• Advanced Registration

Parameter Spec

Max format (mm) 760X1060 portrait (30X42")

Min format (mm)500X700 mm portrait (19.7X27.6")

Substrate range (N+F+G+E+B)*

1-3mm (40-120pt.)

*Board type – single wall, laminated, Curviness range 40mm/1m (4%)

Highcon

Consumables

Highcon Consumables

• Highcon DART Economyo Short runs

o On time use

o Writing time of ~15min including curing

• Highcon DART Premiumo Reusable foil

▪ Up to 5 times

o Rapid writing of rules ~10min for first job

o Re-use ~5min

o Saving of up to 80% of consumable cost for rapid machine ROI

• Euclid III\ Euclid IIIC – released

• Beam – Q1/20

The crease optimization approach – Digital Parametric Rule Building

Crease optimization Results

1.5 1.7 1.9Virtual Nozzles

Cracks

Highcon Crease Optimization

Highcon

Workflow

Esko Light Editor

Web2Pack

Web 2 pack - Packgate

• Full web-shop or plug-in service

• Highcon connects to Packgate for installation and support for the end customer

o Valentin Vachkov, Product manager

o valentin.vachkov@engview.com

o +359 888 595 651

o 135 Tsarigradsko Shosse Blvd, Sofia 1784

o www.packgate.engview.com

• Demo site - https://packgate.highcon.net

JET (Job Estimation Tool)

JET - Estimation Example

VDC – Variable Data Cutting

• The ability to cut different shapes for every sheet

• Supported formatso PDF

▪ Multi page PDF

o DXF

• Application exampleo Gift boxes

o 3D logos for display

Laser Editor

• Last minute editing – on the machine

o line adjustments

o Move shape between lasers

o Nicks editing

o Strip lines editing

Highcon Roadmap

Highcon Machines – Goal

Main goalGain customer trust with Highcon machine

Reliable, predictable, smooth workflow machine, capable of running stable production

Areas To Be Worked On – Priority Considerations

App range

Setup\Workflow

Predictability

Reliability

Highcon Roadmap to drupa

Reliability

Predictability

Setup

Workflow

Application range

Goal

MTBF

Machine stop during production

Setup time

Ease of use \automation

Beam Euclid III Euclid IIIC

According to field inputs

• PHS improvement• Laser Editor• Writing Algorithm

• Auto Stripping setup (Beam)• Premium DART

• JET• Laser Editor• Machine Data

• Productivity boost (Beam , Small sheets)• Premium DART

www.highcon.net

Break

Customer profile

Haim Veig

What Are We Looking For?

• Folding carton profile

• Corrugated o Packaging profile

o Display profile

• Commercial printer profile

Folding Carton Profile – Positive Indicators

Owner \ successor factorsCompany factors

Big Size - Have R&D budget

Medium Size - Have the right jobs\applications

Pains: Die arrival is long (few days), finds die storage an issue

Sees Digital as an important part of the roadmap (doesn’t have to be early adopter)

If family owned: Digital as a means to keep 2nd generation in the businessEgo factor: Applied for or won awards (big plus, not a must)

Has already adopted digital (plus but not a must)

Innovative / Perceives himself as innovative

Appreciates decorative jobs – nice to have

Folding Carton Profile – Positive Indicators

Application factors

Expresses Pain regarding significant number of non-repeatable jobs

Multiple and different job types • Ganging as a good solution • “Killer application” fit: Tags, Sleeves,

blister cards

Laser experience or at least openness to laser/ shows flexibility on HAZ issues – a plus

Has / Is open to customized jobs

Has / Intends to go into short runs

In house Design studio – a plus

Expresses Pain: Analog die-cut operator - Hard to find/ cost too much (and accepts the assumption that digital operator costs less + easier to attract)

Have prototype applications with a road map to short runs

Folding Carton Profile – Warning Signs

Big portion of the business – Pharmaceutical, Cigarettes or Cosmetics

Focuses on top quality – Shows (or his customers) no tolerance to Haz

Focuses on substrates that we can't support well (metalized)

Doesn't have/reluctant about short runs (rule of tumb –below 800 jobs)

Shows clear disbelief in digital solutions

Corrugated Packaging Profile – Positive Indicators

Owner \ successor factorsCompany factors

Sheet plant - buy sheets outside according to defined size

Express Pain: die storage and transport

Express pain \ discuss the need: sustainability, carbon footprint

Specialty/digital division, lot of manual labor, prepared to do what no one else will

Expresses Pain: Analog die-cut operator - Hard to find/ cost too much (and accepts the assumption that digital operator costs less + easier to attract)

Speak about value and sell on value

Innovative , supply / want to enter e-commerce packaging

Expresses pain: customer request fast turn around , pressure from brands – a plus

Corrugated Packaging Profile – Positive Indicators

Application factors

Have significant number of high graphic jobs

Gain: BCT - Savings on substrate strength – right weighting, light weighting , if control the application board definition – big plus

Have / plan to have digital printing machine

In house Design studio – a plus

Savings from ability to impose according to sheet size, reduces waste, and digital setup reduces waste too

Have \ plan to have Web2pack solution - big plus

Have short runs , pressure from brands for short runs – a plus

Gain: small packaging and dividers with no crease line

Corrugated Packaging Profile– Warning Signs

Focused on Volume not value

Focused on Format and not value

Inline / automated plant

Doesn't have/reluctant about short runs

Shows clear disbelief in digital solutions

Corrugated Display Profile – Positive Indicators

Owner \ successor factorsCompany factors

Sheet plant - buy sheets outside according to defined size

Express Pain: die storage , cost (complex displays) and transport

Express pain \ discuss the need: sustainability, carbon footprint

Specialty/digital division, lot of manual labor, prepared to do what no one else will

Expresses Pain: high labor cost (with plotters, very high , more shifts)

Speak about value and sell on value

Innovative , supply / want to enter special retail display

Plant flow has digital printing machine, if it has plotters for die cutting – a plus

Thinking just in time / fast turn-around

Corrugated Display Profile – Positive Indicators

Application factors

Have significant number of high graphic jobs

Gain: BCT - Savings on substrate strength – right weighting, light weighting , if control the application board definition – big plus

Pain: Have significant number of non-repeatable jobs In house Design studio – a plus

Pain: numerous parts per structure - cost saving (running parts on thicker substrate with no need)

Have \ plan to have Web2pack solution - big plus

Have short runs , pressure from brands for short runs – a plus

Pain: Have significant number of complex displays with many components

Corrugated Display Profile– Warning Signs

Focused on Volume not value (if it regular retails displays for Eg.)

Focused on Format and not value

Shows clear disbelief in digital solutions

Commercial Printer Profile – Positive Indicators

Owner \ successor factorsCompany factors

Medium & Large size • (+50 employees, +$10M turnover),

profitable business Adopted digital (big plus if owner also brags about it, e.g. Dscoop, website images)

Innovative / Owner perceives himself as innovative

If smaller – external options of finance

Risk taker, Thought leader, Association membership, has won awards - a very good sign

Appreciates creativity, design and decoration, in-house designers - a big plus

Service oriented - non generic, differentiate himself

Commercial Printer Profile – Positive Indicators

Application factors

Have used lasers to cut (tolerance for Haz)

Adopted or ready to adopt: • Folders, Calendars, Cards, Decorative

elements

Have customized jobs Adopted or ready to adopt packaging – big plus

Online Presence: up-to-date /social-media /online ordering /web-to-pack –one of these is a positive sign

Have short runs, thinking just in time / fast turn-around

Have prototype applications with a road map to short runs

Pain: Have significant number of non-repeatable jobs

Commercial Printer Profile– Warning Signs

Small size (up to $5M turnover, 10-15 employees)

Doesn't have any finishing capabilities

No digital equipment

www.highcon.net

Lunch

Selling Highcon - Panel DiscussionModerator: Jens-Henrik Osmundsen

CHRISTIAN KNAPP CMD, Canada

MATTHIAS OLBRICHDigital Packaging Solutions,

Germany

DAVID MARINONIMgraf, Italy

Marketing & Sales Tools

Shelagh Hammer

Who is Highcon?

The Highcon Vision

To bridge the gap between design creativity andproduction capability with innovative digital technology

that unleashes the power of paper

Highcon’s Value Proposition

• Performance• Zipper tears• Perforations

• Charge premium for:• Design flexibility• Creativity unleashed• Promote faster delivery times• Actively pursue short run opportunities

• Cost saving:• Reduce skilled labor and manual processes• Cost of tooling and setups• High machine utilization

• Sustainable technology

Converters and printers• Speed to market

• Profitable short runs

• Performance

• Perforation (cleaner edge)

• Zipper tear

• Special decoration cutouts

• Half cut

• Marking \ Etching

• VDC – Variable Data Cutting

• Shelf appeal and displays

• Customize size & structure • reduce shipping costs, reduce waste

• Strength – Box compressions tests• Highcon Vs. Conventional

Corrugated boxes and display

Trends – What Challenges Do We Solve?

Trends

• No more waiting for dies to be made, no long setup time, and design changes or corrections made on the fly

• More environmentally friendly• Easy to create multiple versions• Ability to make last minute changes

• Average run length of print and packaging products has dived over the past few years

• Digital technology facilitates the shorter runs required by market segmentation

Trends (2)

• Digital processes not only enable shorter runs in an efficient way, but release design limitations of the conventional die enabling agility and creativity

• Today’s consumers are interested only in what’s relevant to them

• This means differentiated versions per region, demographics, season or language and even personalized products per individual

Highcon Product Portfolio

Highcon

BeamHighcon

Euclid IIIApplication

versatility by digital cutting and

creasing

Highcon

Euclid IIISDigital cutting and

creasing in aB2 format

Highcon

Euclid IIICDigital cutting and

creasing in aB1 and B2 format for

corrugated board

Digital cutting and creasing for mainstream production

Tools

Sales & Marketing Tools

Online

• Website

• Videos (all kinds)

• Social media

• Monthly Newsletters (email)

• Press releases

Offline • Events• Presentations • Applications showcase • Samples

• The story behind the samples

• The files behind the samples (“Highcon Collection)

• White papers• Brochures

Driving Leads

Attract

• Events

• Website

• Social media

• Campaigns

Engage & Nurture

• Content

• Marketing automation

Convert

• Content

• Opportunity management

• Touch points

• Campaigns

Newsletters, blog, etc.

Videos, White Papers, Webinars,

Case studies

Open houses

Events - Exhibitions

Corrugated

• AICC Digital Xperience

• CCE Munich

• FEFCO

• AICC CorrExpo

F/C & Printers

• EFI Connect Las Vegas

• HP VIP Event Israel

• Dscoop Orlando

• Inkjet Summit

• Graphics Canada

• Printing United

• Digital Packaging Summit

Events -Highcon Engage VIP Events & others

Live demos at customer sites

Introduction to true business benefits

Adding brand/client where possible

Designers day optional

• Dataline CZ

• Autajon Brand workshop

• Grupo SG Open House

• Komori Open House

• CJ Graphics

• Wihabo

• LxBxH

• Heuchemer

• Bennett Graphics

• Virtual Packaging

Highcon Website

• > 11,000 visitors in 2019

Blog – Positioning as Opinion Leaders

• What are the subjects you think should be covered?

• Send us topics

• Forward and promote to your prospects

Partner Zone (password protected)

• Logos

• Icons

• Brochures

• White papers

• Machine images – high res

• Applications showcase (PDF)

• Emails to all (~10,000 leads database)

• ~once a month

• Over 25% opening rate

• Always have CTAo 179 people clicked through to the

Autajon video

• Make sure you join!

• Send us info!

Newsletters

Videos

• Website & YouTube

• 765 subscribers

• >100 videos

• Highcon technology videoso 63,000 views!

• Autajon videoo 1,200 views on youtube

Social Media Send us interesting posts & pictures to share

3,606 followers

2,755 followers

1,178 followers

62,200 monthly viewers

197 followers

LinkedIn

• 2,702 followers

Impressions Clicks CTR

Corrugated Open House Heuchemer Verpackung 2944 926 31.45%

The BoxMaker at the Packaging Experience Summit in

Seattle! 1479 304 20.55%

Dataline in Czech Republic 1194 211 17.67%

Grupo SG Open House in Dominican Republic 1718 224 13.04%

Virtual Packaging in Dallas, Texas. 3629 360 9.92%

Facebook

Pinterest - 72 applications , 4030 pictures of products

Brochure

Application Showcase

Crease Optimization

• Showing Creasing Optimization capabilities • Same print with different rule types

• 3 substrate types - Kraft board, SBS, Recycled

• 4 different rule types• 1.5/1.5

• 1.5/1.7

• 1.7/1.7

• 1.7/1.9

• Avoid cracks in certain substrates

• Allow different rule heights in different grain directions

• Creasing Optimization is a fast digital solution for improving crease quality

Zipper Application

•Reproduced

•5 different digital zipper options – quality cannot be matched conventionally

•1 conventional zipper

•Substrate - Invercote G with matt lamination, 300gsm

•Printed and produced by customer

Engage VIP Event Invitation

• Invitation sleeve with decorative cutout

• Etching & cutting capabilities

• Substrate - Uncoated 250gsm black board

Events Invitation

• Zipper tear opening to envelope

• Perforation to reveal the insert

• Invitation sleeve with decorative cutout

• Etching & cutting capabilities

• Substrate - Uncoated 250gsm black board

Corrugated ABC

• Spread letters with hangers

• Cutting and creasing combination

• Customization

• Substrate - Eflute board

Ads & Inserts

Autajon Video - https://youtu.be/dRKrhqaokNE • Customer testimonial

• Sharing case studies and success stories

• Discussing business strategies

• Applications produced on the machine at Autajon

Beam Video - https://youtu.be/7IJ2adzBLtM

The Buzzwords

www.highcon.net

Transforming Digital Finishing into Business GrowthModerator: Jens Henrik Osmundsen

BRIAN SIDEBOTTOMManaging Director, Glossop Cartons