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Confidential Business
Review 2011
Cost Reduction
July, 28th 2011
L’ORÉALCost Reduction
On Going Projects andProposals
Confidential Business Review 2011
ON GOINGPROJECTS
Confidential Business Review 2011
PROJECT 1 - Printing reduction without appearance downgrade SH- CD
PP METALIC FRONT LABELS
Saving: One Silk Screen
1,24 % = € 8.000 / year
1- Pantone 356 – Flexo
2- White Base – Silk
3- Pantone Yellow – Offset
4- Pantone 165 – Offset
5- Pantone 161 – Offset
6- White – Offset
7- Pantone 3435 – Offset
8- White text – Silk
9- Varnish
1- Pantone 356 – Flexo
2- Pantone 161 – Offset
3- White – Offset
4- Pantone 3435 – Offset
5- White Base+Text – Silk
6- Pantone Yellow – Offset
7- Pantone 165 – Offset
8- Varnish
Confidential Business Review 2011
PROJECT 2 - Printing reduction without appearance downgrade SH - CD
TRANSPARENT FRONT LABELS
1- Silver – Hot stamping
2- White Base – Silk
3- Pantone Yellow – Offset
4- White – Offset
5- Pantone 165 – Offset
6- Pantone 3435 – Offset
7- White text – Silk
8- Silver 877 - Silk
9- Lamination
1- Silver – Hot stamping
2- White Base – Silk
3- Pantone Yellow – Offset
4- White – Offset
5- Pantone 165 – Offset
6- Pantone 3435 – Offset
7- White text – Silk
8- Silver 877 - Silk
9- Varnish
Confidential Business Review 2011
Saving: Lamination Film
4,51 % = € 16.000 / year
PROJECT 3 - Back Label - Height Reduction for Better Raw Material Use SH - CD
Actual Size: 55 x 127 mm
Proposal: 55 x 105 mmCurrent Material:
Avery - GCEX
A -Proposal:
Avery - GCEX 5,82% saving
B -Proposal:
Ritrama PE 85
Avery PE 85 6,28% saving
127mm
105mm
PS: Proposed die cut 47x115
doesn`t allow the use of the current
art work.
Confidential Business Review 2011
Saving: Less Raw Material
5,82 % = € 35.000 / year
PROJECT 4 – Productivity for all Fructis Products
NEGOTIATED JUNE 2011;
Confidential Business Review 2011
Saving: 3,00 % = € 132.000 / year
PROJECT 5 - Front Label - Raw Material Supplier – Substrate Changing SH - CD
Current Material:
Avery - GCEX
Proposal:
Ritrama - PE85
Avery - PE85
2,81% saving
2,81% saving
Confidential Business Review 2011
Saving:
2,81 % = € 169.000 / year
PROJECT 6 – Digital Printing for Short Runs
FIRST LABEL JUST DELIVERED;
EXCELLENT OPPORTUNITIES FOR:
L’ORÉAL PROFESSIONAL PRODUCTS AND
PROMOTIONAL LABELS;
Confidential Business Review 2011
FRUCTISProposals
Confidential Business Review 2011
All Back Labels substrate: GCEX Transparent to PE White SH - CD
Change to PE White Ritrama
Saves: Ink
Setup
Plates
Screens
100% coverage Flexo White
31% coverage Silk White
Confidential Business Review 2011
Saving: 2,85 % = € 19.000 / year
ELVIVE – ELSÈVEProposals
Confidential Business Review 2011Confidential Business Review 2011
Back Label - Height for Better raw Material Use Elvive / Elsève
Actual Size: 60 x 125 mm
Actual Size: 56 x 125 mm
Proposal: 60 x 105 mm
125mm
105mmCurrent Material:
Avery - GCEX
A -Proposal:
Avery -GCEX
B -Proposal:
Ritrama PE85
Avery PE 85
Confidential Business Review 2011
Saving: Less Raw Material
7,81 % = € 57.000 / year
7,81% saving
8,95% saving
PROJECTS SUMMARY
Confidential Business Review 2011
ON-GOING PROJECTS
PROJEC
TPRODUCT ACTION
SAVING (in K€)
Taxes Included Net
1 FRUCTIS White Silk Reduction 8 6
2 FRUCTIS Varnish instead of Lamination 16 13
3 FRUCTIS Back Labels Size Reduction 35 28
4 FRUCTIS Productivity 132 104
5 ALL Raw Material changing 169 133
6 PROFESSIONAL Digital Printing ??? ???
TOTAL 360 284
2011 EXPECTED TURNOVER FOR L'ORÉAL (in K€) 5369 4228
EXPECTED SAVINGS IMPACT 6,71% 6,71%
PROPOSALS
PROJEC
TPRODUCT ACTION
SAVING (in K€)
Taxes Included Net
1 FRUCTIS Back Labels Substrate Changing 19 15
3 ELSÈVE/ELVIVE Back Labels Size Reduction 57 45
TOTAL 76 60
2011 EXPECTED TURNOVER FOR L'ORÉAL (in K€) 5369 4228
EXPECTED SAVINGS IMPACT 1,42% 1,42%
TOTAL - ON-GOING + PROPOSALS 436 343
2011 EXPECTED TURNOVER FOR L'ORÉAL (in K€) 5369 4228
EXPECTED SAVINGS IMPACT 8,12% 8,12%
SUBSTRATE SUPPLIERSMarket Overview
Confidential Business Review 2011Confidential Business Review 2011
Substrate Suppliers
Established in Brazil since 1967;
Good quality and service;
Price Increasing;
GCEX – strong impact PP+PE;
Baumgarten’s main Supplier;
Opportunities – Near Future
GCEX NG – PET liner 23µ;
GCEX – PET liner 30µ;
Confidential Business Review 2011
Substrate Suppliers
Starting Production in Brazil
(acquisiton of Gumtac);
Good quality and service;
Competitive Prices;
Baumgarten’s current supplier
for Couche Paper and Raflex;
Opportunities – Near Future
RAFLEX – Glasine liner;
Confidential Business Review 2011
Substrate Suppliers
Production in Chile;
Warehouse in Brazil;
Improving Service in Brazil;
Competitive Prices;
Small Baumgarten Supplier;
Opportunities – Near Future
PE 85 - Glasine liner;
Confidential Business Review 2011
FINAL COMMENTS
Confidential Business Review 2011
Confidential Business
Review 2011
Cost Reduction
July, 28th 2011
