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P 1.5 Gate 0 Development Team

P 1.5 Gate 0 Development Team. P 1.5 Gate 0 – Meeting Agenda. I. Introduction Haller II. RTDP Summary A. Emulsion Technology J B. 529A Z III. Film Formulation & Cost Savings Haller IV. KMCP/Manufacturability Status A. Materials 1. Emulsions B 2. Dispersions D/W

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P 1.5 Gate 0 Development Team

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  1. P 1.5 Gate 0Development Team

  2. P 1.5 Gate 0 – Meeting Agenda I. Introduction Haller II. RTDP Summary A. Emulsion Technology J B. 529A Z III. Film Formulation & Cost Savings Haller IV. KMCP/Manufacturability Status A. Materials 1. Emulsions B 2. Dispersions D/W B. Sensitizing H/R/K C. Finishing F D. HSE M E. Patent/Legal H/Z V. Systems F/B VI. Closing Haller A. KMCP Check List/Schedule B. Risks/Concerns C. Conclusions/Recommendations D. Discussion/Signing

  3. P 1.5 Gate 0 – Introduction • P 1.5 is the last of a long line of cost reduction programs aimed at: • Transparent introduction • Minimizing impact on customer performance features • Spreading Ag reductions over a number of evolutionary steps • The P programs encompass a number of changes including coupler and emulsion changes to reduce Ag coverage and product cost • The sequence of the P programs is alsoimportant in that some technologies need tobe introduced at certain times to enableother technology introductions

  4. P 1.5 Gate 0 – Introduction • P 1.5 currently contains the following technologies: • 529A at 10% of the Cyan imaging coupler – more reactive than current ACQ coupler and new coupler solvent set and level • Higher gel laydown in the cyan record to maintain gel/junk ratios in the cyan with higher coupler solvent 529A/ACQ coupler blend and higher SOC lube levels to maintain POD performance • New Slow Cyan emulsion for improving the process sensitivity response with the 529A coupler • Potential faster Fast Cyan emulsion to enable more Ag reduction and improve process sensitivity (through lower FC blend ratio)

  5. P 1.5 Gate 0 – IntroductionChanges across Print Products • Vision: • Implementing 529A at 10% • Implementing the new slow cyan and faster fast cyan emulsions • Additional gel to cyan layer and higher M160 wax level in the SOC • Premier: • P 1 slow yellow • P 2 slow cyan and faster fast cyan emulsions • 70 MM and A: • P 1 slow yellow • P 2 slow cyan and faster fast cyan emulsions

  6. P 1.5 Gate 0 – Risk/Concerns at Gate C • Level 2 • Process sensitivity change with 529A • Color reproduction with 20% 529A (concern with future P programs) • Level 1 • Color reproduction with 10% 529A • Dark fade degradation • 529A polymorphism (HAZE test in place) • HPLC T-power testing accuracy

  7. P 1.5 Gate 0 – Risk/Concerns at Gate C Gate 0 Level 3 0 Level 2 1 Level 1 4

  8. P 1.5 Gate 0 – Customers/Sponsors • Sponsor: • MR EI WW Film Technologies • Customers: • EM EI WW Print/Distribution SPG • JG Global Capture Flow • TZ GECF RFS Sensitizing • Customer Representatives • GB Global Capture Flow • FG GECF RFS Sensitizing • LX EI WW Print/Distribution SPG • FD EI CTS

  9. P 1.5 Gate 0Closing

  10. P 1.5 Gate 0 ClosingStoplight Chart Status • All items complete • Ready to proceed to Gate 2

  11. P 1.5 Gate 0 Closing - Schedule

  12. P 1.5 Gate 0 ClosingRisks/Concerns • Process sensitivity change with 529A [C/Chris - Level 2]STATUS: Making adjustments to the aim to account for the shift. Will also attempt to minimize shift with formulation/emulsion changes. • Impact of Ag price and component changes on UMC savings for Pearl 1.5 [C/B, Level 2]STATUS: The cost savings changes radically depending on pricing standards – will attempt to increase Ag savings to improve position. (NEW) • Color reproduction with 10% 529A [C/P, Level 1]STATUS: No issues seen in recent demos– will confirm in additional demos

  13. P 1.5 Gate C/0 ClosingRisks/Concerns • Dark fade degradation [C, Level 1]STATUS: Will verify dark fade position,not expecting an issue due to productusage. • 529A polymorphism (HAZE test in place) [SW - Level 1]STATUS: Will monitor future batches for haze specification. • HPLC T-power testing accuracy [TR, Level 1]STATUS: Test developed and in place – need experience with future batches.

  14. P 1.5 Gate C/0 ClosingRisks/Concerns Gate 0 Level 3 0 Level 2 2 Level 1 4

  15. P 1.5 Gate C/0 ClosingConclusion • Initial sensitometric and physical tests have been within or close to specifications for both the wide and narrow coatings. • Coating quality was seen to be comparable to current product. • Phase C activities for both the 529A and new emulsions are completed. • Fluctuations with silver and component prices continue to have a significant impact on cost saving potential for the P programs.

  16. P 1.5 Gate C/0 ClosingRecommendations • Based on the data and information, the team recommends the following: • Passage of Gate 0 for P 1.5 • Continue to address the risks facing P 1.5 in a timely and efficient manner • Update formulation to meet the new modified aims • Ramp-up of P 1.5 coatings and customer assessments • Continuation of work to drive to Gate 2

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