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PAC to the Future

September 29, 2016

Sam SalemSenior Director, Internet-of-Things (IoT)Jabil Digital Office

GET SMART: LEVERAGING CONNECTED PACKAGING TO DRIVE BUSINESS VALUE

UNLOCKING THE POTENTIAL OF SMART PACKAGING TO DRIVE REVENUE AND MARGIN

A DIVISION OF NYPRO INC.

Printed RFID sensor

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Brands: Where Are You Going to Make Your Money?

Buy UseDesign & Develop

Make Ship

Speed To Market

Technology & Innovation

Manufacturing & Automation Efficiency

Supply Chain Logistics

Product & Package Performance

Price Point

Availability

Brand Loyalty

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CPG Survey: E-Commerce & Intelligent Packaging Expected to Increase Significantly

How do you expect your use of these types of plastic packaging to change over the next three years?

10%

11%

13%

17%

18%

22%

30%

39%

39%

60%

36%

48%

43%

40%

51%

39%

42%

50%

25%

45%

32%

36%

41%

25%

26%

12%

11%

2%

8%

0%

5%

0%

2%

6%

7%

0%

3%

1%

6%

0%

1%

0%

0%

0%

0%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

High barrier technologies (coatings, polymer blends,…

Rigid packaging

Active and Modified Atmosphere Packaging…

Flexible packaging

Hybrid packaging combining rigid and flexible elements

Digital printing

Bio-based materials

Intelligent packaging that extends the communication…

Packaging designed specifically for e-commerce

Increase significantly

Increase slightly

No change

Decrease slightly

Decrease significantly

n = use packaging today

Dimensional Research survey of 204 CPG packaging stakeholders, June 2016

>80% expect increase in Intelligent Packaging

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On the Shelf

On the Web

In the Home

Brand safety is shifting toward “At Home Re-Ordering”

Shift comes with more complexity &less control over supply chain logistics.

Packaging must accommodate… Those that do so will take advantage of future revenue channels.

Beyond the Brick & MortarBattle for Supply Chain Control

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The Power of the Digital Consumer

Blogs /Reviews /Facebook / Twitter

“I wish it were more like …”

Is it sustainable?

How is it made…Is itsafe for my family?

I want it now!!!

ConvenienceAuto-Reorder (“Dash”)

Can I find it cheaper?

Buy local (vs) Big-Box

Apple Pay / Tap

Is this good for me?

Is it still fresh?

Social Media & Product Selfies

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Business As Usual? … No Way!

Across all industries change is accelerating at an unprecedented rate

Cloud, Mobile, Big Data lowering barriers of entry and raising consumer expectations

Connected Millennials & Gen-Z’ers are the biggest

influencers of social media

Mobile devices have more

computing power than the

Saturn IV mission

and data is free

Empowered

consumers

are making data

driven decisions

Digital Innovation will be an element of future Brands and Contract Manufacturers service offering

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>10 Billion devices around the world are currently connected to the Internet, including computers and smartphones

The number is expected to increase dramatically within the next decade, with estimates ranging from 50 Billion devices to reaching 1 trillion

The Internet of Things has the potential to create economic impact of $2.7 trillion to $6.2 trillion annually by 2025

Explosive Growth of “Connected Things”…

Samsung Smart Refrigerator

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Cloud AEP

SolutionsDiscoveryInstallation and Maintenance

Intellectual PropertySubject Matter ExpertsPR/Thought Leadership/Sales

Security

Client

Firmware - Mobile

Sensors

Data Mining

Cloud integrations

Data AnalyticsConnectivity

The IoT Ecosystem is a Complex Puzzle

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RF/Wireless Solutions

Sensors

Energy Solutions

Connected Systems Development

Jabil Develops IoT-Enabling Technology Capabilities

10Sensors

Precision Mechanics Smart Clothing

Wireless ConnectivityOptics

Printed Electronics

AutomationAcoustics Dynamic Tuning

Advanced Assembly

Experience Design

Fluidics Materials Technology

Human MachineInterface

IT CyberSecurity

Optical Communications & Networking

Jabil Packaging Solutions: Core Capabilities

Intelligent Digital Supply Chain

Additive Manufacturing

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Our Packaging Is All Smart

INTELLIGENT

ACTIVE

RIGID

CONSUMER DEVICE

Custom Packaging Solutions with 2-level interaction for greater customer engagement

Devices that provide information or dispenseproduct leveraging technologies

Core Packaging Technologies including plastics injection, blow mold, thermoform and compression molding

Durable precision mechanical/ electronic assemblies

that improve the delivery application and usage of

consumables through IoT

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Smart Packaging – The Big Picture

A Conversation between people, brand & products in the connected world

Products that

communicate

with people

Products that

communicate

with machines Machines that

communicate

with people

NOT YET COMMERCIALIZED

TECHNOLOGY & INFRASTRUCTURE EXIST BUT AT HIGH COST

HEAVY INVESTMENT IN REDUCING TECHNOLOGY PRICE FROM $1.0-2.0 TO $0.10-0.20

EMERGING COMMERCIALIZATION WITH PASSIVE NFC/RFIDTECHNOLOGY

LEADER IN COMMERCIALIZATION WITH TECHNOLOGY AND INFRASTRUCTURE IN PLACE AT COST EFFECTIVE PRICE POINTS

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CODES INTELLIGENT

CONVENTIONAL ACTIVE

MACHINES / ELECTRONICSTECHNOLOGY

MATERIALS / PROCESSESTECHNOLOGY

STATICINTERACTION

DYNAMICINTERACTION

INTELLIGENT

ACTIVE

Thermochromic Inks

Intelligent

packaging will

enable sensory

experiences that

need

choreographed.

One way dynamic

communication can

be created through

materials that

change state when

exposed to

environmental

variables.

Smart Packaging can be considered an all-embracing term used to encompass both Intelligent and Active Packaging.

Smart Packaging Evolution – Conventional to Intelligent

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Smart PackagingIt’s Real and Taking the Market By Storm

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Auto- Replenishment

Vacuum

Bags

Coffee

Pods (i.e.

K-Cups)

Liquid

Detergent Jugs

Authenticity, Proper

Sealing, Freshness

University of California-Berkeley

Point of Sale | Point of Consumption

interactivity

Smart Packaging Opportunities, Use Cases

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Connected coffee-maker ecosystem: Smart packaging enabled

Reorder

Recipe for

special brew

App choice guides Type, QTY,

Flavor order

Choose the flavor

for the momentBrewer Health &

Status

Connected Carrousel

Indicates K-Cup status+

Brewer Health &

Status

Product communicates with Machine

Cloud communicates with People

Machine communicates with Cloud

Machine communicates with Machine

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Connected Laundry ecosystem: Smart packaging enabled

Washer to

Dryer Load

Statistics

Softener

Low/Out

Detergent

Low

Type of

Softener

Type, QTY,

Detergent

Product communicates with Machine

Cloud communicates with People

Machine communicates with Cloud

Machine communicates with Machine

Stock Reorder

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Intelligent packaging enablers: Connectivity & Sensors

Sensors and Connectivity are the foundation for Smart Packaging, Intelligent Solutions

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RFID (passive)$0.05-0.10

RFID (active)$2.00-3.00

NFC$0.05-0.10

Goal:Wireless, Basic

Sensing capabilityInteractive

<$0.25

PRINTED

ELECTRONICS

ENERGY HARVESTING

NANO PROCESSORS

PRINTED ELECTRONICS

MICRO ASSEMBLY

Supply Chain

Management

Architecture Design

Smart Packaging: Jabil-Enabling Technologies

Jabil Enabling Technologies

Current Wireless Solutions

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• Active Materials

• Thermochromic Inks, Bio-reactive, Color-changing labels, etc.

• Passive Wireless Communications

• Near-Field Communication (NFC), RFID

• Sensors

• Gas, Pressure, Capacitive, Humidity/Moisture sensors, etc.

• Printed Electronics

• In-Mold Electronics

Smart Packaging Technology Enablers

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A smart material does something to change its environment, and the change triggering the response may be anything from temperature to light levels. Many new, smart materials are being developed and many of them based on plastics have considerable potential to be used in packaging applications. For example, materials responsive to:

pH, pressure, temperature, gases, liquids, shelf life,

biological indicators, contamination.

Smart/Active Materials Sensing

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SMART PACKAGE DEVICES

Smart package devices can be defined as small, economical labels or tags that are attached onto primary or secondary packaging, to facilitate communication throughout the supply chain so that appropriate actions may be taken to achieve desired benefits in safety enhancement.

Two basic types of smart package devices exist:

Data carriers that are used to store and transmit data, and

Package indicators that are used to monitor the external environment and, whenever appropriate, issue warnings.

A communication channel between the external environment and other components is provided in the system.

PACKAGE INDICATORS (usually involves color change)

• Time-temperature indicators

• Integrity / Freshness indicators

• Gas sensors / Biosensors

Time-Temperature Indicators

Biosensors

Smart/Active Materials Sensing

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Printed Electronics Long switching times

Low integration density

Large areas

Flexible substrates

Simple fabrication

Extremely low fabrication costs

Conventional Electronics Extremely short switching times

Extremely high integration density

Small areas

Rigid substrates

Sophisticated fabrication

High fabrication costs

LOW COST

LOW END

HIGH COST

HIGH END

Last hurdle to low cost-sensing

Devices/Packaging will be considered disposable, with short life span

Main challenges still in materials & commercially viable price points

PRINTED ELECTRONICS

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Smart Packaging

Technology Demonstrations

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Smart packaging creates the opportunity to measure how much product is left in the package. Knowing how much of a product remains in the package enables smart auto replenishment e-commerce or even opens up the opportunity to create measurable compliance in medication regimens

Fuel Gauge, Auto-Replenishment solution

Ability to sense liquid level threshold, provide automatic replenishment via mobile Application

The Product Fuel Gauge demonstrates dynamic fill level measurement in a bottle containing a liquid.

Technology Demonstrator: Fuel Gauge

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Trust in product and company is the currency in which brands of packaged goods rely.

Counterfeited products are a common and potentially dangerous problem in countries like China and are a concern anywhere in the global marketplace.

Tamper Alarm utilizes electronics and data to verify authenticity and ensure uncompromised products.

Tamper Tag, Counterfeit Protection

Demonstrates tamper evidence and authenticity through an NFC connection to a mobile device, or other reader, capable of connecting to a cloud database.

Technology Demonstrator: Tamper Alarm

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Conversation + demonstrates engagement through personalized feedback on a package

Conversation +, Personalized Interaction

LED indication of preferred Drink selection

Wearable is used for person identification

Conversation + delivers surprise and delight through personalized interaction and feedback.

Conversation + can dynamically change the conversation to offer contextually relevant information, promotions, pricing, or just say “hello”

Technology Demonstrator: Conversation +

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Packaging Sensor Suite Bottle can be shipped through a distribution system to learn environmental and handling conditions

Packaging Sensor Suite Bottle can be expanded to be integrated into package forms to test user interaction and human factors

Suite of Sensors embedded in package to log & track environmental history from warehouse to the retail shelf

Integrated Sensor and Connectivity Technologies

NFC

BLE

Accelerometer

Ambient Light

3D Magnetometer

IR Temperature

Humidity & Temperature

WINE BOTTLE

CASE

Technology Demonstrator: Package Sensor Suite

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Dose Sensing Recommendations• Communication with washing machine, • sensing load size, type, etc…• provide dosing indication tailored to use case

Volume Sensing• Sensing liquid remaining in bottle, provide information

to consumer or device (for reorder)

Auto-Replenishment• Tracking consumer use, remaining volume, • Inventory in home to provide automatic • Re-order when needed

Consumer Packaging

Smart Packaging Concepts: In Development

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Freshness Indication• Temperature, CO2, O2 sensing, providing user

indications of freshness• Tracking Date of Fill, Spoil Date, etc…

Interactive Consumer Experiences• Promotional Marketing (in store)• Social Media Interaction (post purchase)• Rebates & Promotions

E-Commerce Delivery• Quicker/ More accurate order fulfillment?• Future Drone Delivery?

Food and Beverage Packaging

Smart Packaging Concepts: In Development

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Tamper Evidence, Counterfeit Protection• Ability to sense 1st opening, provide information to consumer

or pharmacy regarding authenticity

Patient Safety• Provide real-time safety information to client to prevent bad

medication combinations, etc…

Patient Compliance• Help pharmacy, consumer, and/or doctor track prescription

compliance improving health

Automated Fill• Provider kiosk system, and/or e-com delivery networking

communication within future automated pharmacy

Healthcare Packaging

Smart Packaging Concepts: In Development

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Connected Packaging Ecosystem

Discrete design using PCBA + Flex + Battery

Technology proof point demonstrators

Integrated solution

Complete solution, leveraging key suppliers, integrated onto a single Flex circuit (FPC)

Complete IMSE solution leveraging Hybrid PE solution, aimed at high volume manufacturing

IoT Hub Stream

Analyti

cs

Eve

nt

Hub

Storage Blob

Web Job

Hosting

Web App

Hosting

DocumentD

B

Logi

c

AppMicrosoft Azure

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Roadmap to Profitable Growth

The time to invest is now, as each of the three pillars has just reached or is rapidly approaching the tipping point for broad commercialization

Time

INTRODUCTIONLaunching Right

GROWTHFinding Profitable

Growth

MATURITYManaging Contribution

DECLINEDealing with

Commoditization

Ma

rket A

do

pti

on

DEVELOPMENTDesign the concept

1

2

3

$45B

14.5B

Is The Expected Smart Packaging Market Size By 2022

Packages In Consumer Goods Are Expected To Have Electronic Functionality By 2024

The growth potential has yet to be achieved.

Large consumer companies are already investing $ billions in this space:

Coca-Cola

Nestle

McDonalds

Diageo

P&G

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3 Frictionless Supply Chain &

Manufacturing

1 Market intelligence &

strategy

2 Leading technologies and

differentiating solutions Solutions that ENABLE superior

consumer experiences, consumer

loyalty and competitive advantage

for BRANDS

On-Ramp to Success

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PAC to the Future

September 29, 2016

Sam SalemSenior Director, Internet-of-Things (IoT)Jabil Digital Office

THANK YOU!!GET SMART: LEVERAGING CONNECTED PACKAGING TO DRIVE BUSINESS VALUE

A DIVISION OF NYPRO INC.

Printed RFID sensor