Introduction of American Fuji Seal. Shutaro Kurosawa American Fuji Seal, Inc. 4/24/2014

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1 Introduction of American Fuji Seal Shutaro Kurosawa American Fuji Seal, Inc. 4/24/2014

2 Who is Fuji Seal? The Largest Shrink Sleeve supplier in the world! The only Shrink Sleeve supplier to offer: A fully supported, vertically integrated global system Spouted Pouch maker with more than 15 years in the market. PSL maker with more than 110 years of experience. 5/13/2014 Confidential 2

3 Who is Fuji Seal? Key moments in our history Founded - Fujio Carpentry Shop Invented Shrink Sleeves Application Machines for Shrink Sleeves AFS established - Shrink Sleeves introduced into USA Steam tunnels for Shrink Sleeves PET Shrink Sleeves introduced BPM Application Machine Alpha & Delta Sleeves introduced Fuji Seal Mexico S.A. de C.V. established Celebrating 115 years partnering customers 2012 Acquired 100% of PAGO PSL Company 2014 IN Plant PSL / Pouches Mexico Plant Expansion Pressure Sensitive Labels and New Extrusion Line. 5/13/2014 Confidential 3

4 Who is Fuji Seal? 5/13/2014 Confidential 4

5 Product Range from Fuji Seal Group 5/13/2014 Confidential 5

6 Manufacturing in the Americas American Fuji Seal Bardstown, KY Jeffersonville, IN Irapuato, MX 5/13/2014 Confidential 6

7 PSL - Booklets Main sectors of application are: Promotions Extended information for consumer products (background information, ingredients, cross-marketing) Essential product information for usage, risk and safety, e.g.: Pharmaceutical / OTC Chemical / Agrochemical Other technical applications

8 Pouch - Spouted Pouches Greenfield Site Jeffersonville, IN Quality Focus Clean Room Class 100, % Leak Check Qualify FSSC PAS223 5/13/2014 Confidential 8

9 SSL - Film Polyethylene Terephthalate (PET) High quality print is obtained due to the stiffness of the film Shrinks relatively quickly, difficult to control the shrink process, steam is preferred Specific gravity = 1.30 Good for perforations Good product resistance 5/13/2014 Confidential 9

10 SSL - Applications 20 micron PETg film. Lowest gauge commercialized in the market today. Enables full coverage high-end graphics at roll-fed or stretch-sleeve price ranges. 5/13/2014 Confidential Low Haze ultra-transparent materials to simulate glass. 10

11 SSL - Film Film Development White PET Sophisticated Matte finish Opaque Light Barrier Specific Gravity /13/2014 Confidential 11

12 SSL - Film Film Development Delta Best Characteristics of PET and OPS morphed together 5/13/2014 Confidential 12

13 SSL - Film Film Development Alpha Easy separation for PET bottle recycling Specific Gravity <1.0 5/13/2014 Confidential 13

14 ALPHA from American Fuji Seal: Recycle Friendly Shrink Sleeve Shutaro Kurosawa American Fuji Seal, Inc. 4/24/2014

15 Environmental Impacts 3 R s Reduce Re-use Recycle Container recycling / down-gauging Perforations Source: APR Design guide for PET Bottle recyclability 5/13/2014 Confidential 15

16 Efforts Made Down gauging is an on-going project; technically we can produce 20 Micron shrink sleeves Current Situation: USA 50µm EU 40µm Japan typically 40µm, but thinner for specific projects Development of low density materials PVC PET FUJI DELTA OPS FUJI ALPHA (EU) WHITE PET /13/2014 Confidential 16

17 Issues to be Addressed About 80% of full-wrap labels in North America are found on PET containers Full-wrap bottle labels that sink in hot water and/or bleed inks during the wash process yields losses and impacting RPET quality

18 APR Principles for Sleeve Labels on PET Bottles 1. The label does not interfere with the ability of a NIR automatic sorter to identify the underlying PET bottle. 2. The label separates from the bottle in a whole bottle wash step. 3. Any sleeve label that remains after bottle granulation will float in water. 4. Label residue present during hot caustic wash will not cause discoloration of PET flakes or molded plaques made from flake.

19 Focus Provide recycle-friendly sleeves as a solution to PET bottle recycling issues Perforation design for easy off by end users, but durable throughout shelf life Dissolvable seam for recycling stream Floatable shrink film (clear or light blocking) Non-bleeding inks in hot caustic bath

20 Dissolvable Seam Technology Hot caustic water reacts with seam bond under sink/float separation conditions (85~90oC, ph~13) Seam strength drops by contact w/ caustic Shrink force accelerates seam apart OH- Film Special Bond Film Multiple tests indicate bottles are exposed to much lower temperatures in actual recycler facilities Being optimized for prewash conditions (60oC, lower ph)

21 Floatable Labels Commercialized for 10 years in Europe NIR can distinguish labels from bottles Stiff: No OPV required for anti-scuffing Shrink tunnel: steam or hot air Limited shrinkage ~ 50% Specific gravity = 0.95 g/cm3 2-hit white + OPV can make label too heavy Newly developed for US market with less density any design labels can float!

22 Plastics Forming Enterprises (PFE) Testing Complete The Critical Guidance Document was completed for: Generic Unprinted label ( FVH2-050 ) 50um Polyolefin shrink film (Density = 0.93 g/cm3) Generic Printed label ( FVH2-050 ) 50um Polyolefin shrink film with (IA1-L) Inks Colors including metallic Whites OPV APR guidelines for a generic application require minimum 3% by weight

23 Unprinted Wash & Rinse Water

24 Printed Wash & Rinse Water

25 Unprinted Oven Test 500 g QC Sample Post Wash (ppm) Post Air Separation (ppm) 538-U

26 Printed Oven Test 500 g QC Sample Post Wash (ppm) Post Air Separation (ppm) 538-P

27 Plaque Data L* a* b* Haze Average Average Average Average Run # Description 538-Ctrl Control Bottle U Unprinted Label P Printed Label The APR specifies that plaque sample meet the following parameters in comparison to the control in order to be acceptable: L* >82 for all Blends b* & a* <1.5, (no problem) C. Control Haze <9.5%, Test Haze not to exceed 20% (no problem)

28 Conclusion This study analyzed both unprinted and printed decorated sleeve labels, using the APR s guidelines for Sleeve Label CGD the following conclusions were determined from testing: < 150ppm residual label from both test variables was able to be removed from the sink/float process. Label that was not able to be removed during wash, rinse & sink float was removed through air separation to < 50 ppm. The Combination of the bottle structure, resin, ink system, and label substrate are showing favorable results and meet the APR guidelines for Sleeve Label Critical Guidance.

29 Future Improvements being made Anti-ink bleeding for all colors Shrinkage vs mechanical strength vs density Optical properties gloss and haze Dissolvable seam for any prewash Perforation for easy removal

30 Thank You for Your Time Today Please Feel Free to Ask Questions

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