to New Growth  V 2 unifies all Multi-Color operations into One Continuous Improvement Culture Our in-house prepress and engraving operation, leads in digital production to collapse all the steps a label customer must consider—planning, design, application testing, color separation and printing—into one seamless flow.  By investing in advanced, server-based  workflow technology, we increased speed  and ease to our customer projects by offering online conceptual reviews of  their labels in “printed form” before production begins. To accelerate project communications, customers can receive online production schedules and  progress reports. Changing the norms of how we do business is another way Multi-Color provides value-added service to our customers. We see the fast, flexible benefits of full digital production— prepress, file sharing, tools and printing—as a leadership position and growth strategy for Multi-Color. Cross-functional teams, focused on process improvement initiatives, are selected from Product Leadership, Customer Service, Human Resources, Finance, Engineering, and Manufacturing teams. Their outcome-driven focus is already paying significant dividends  in achieving higher quality, lower production costs, faster production and delivery, and less waste: V 2 is designed to increase  Velocity by decreasing operational cycle times and add Value by improving quality and reducing costs—it’s all about creating speed and ease for our external and internal customers.  Fiscal Year 2004 was the first full year of implementing V$^{2}$, our pursuit of the Continuous Improvement process throughout Multi-Color operations.  > Scottsburg, IN—Production Consolidation In just 60 days, this V 2 team executed the manufacturing plan that increased printing capacity, consolidating our Las Vegas shrink- sleeve volume with existing equipment. In turn, this leaves open Scottsburg’s new $4.2 million press for additional business. > Graphic Services, KY—Cost Reductions  V 2 teams analyzed gravure cylinder utilization, a major cost component, by recycling existing cylinders into production faster through a real- time forecasting process. This reduced capital expenditures and increased return on assets. > Framingham, MA—Increased Speed This V 2 team sped up our high-demand heat  transfer label production by 33%. > Scottsburg, IN—Waste Reduction By simplifying steps within the IML sheeting process, this V 2 team reduced waste and material usage. V 2 training will be phased into  other areas of the Company to improve  quality, reduce costs and enhance customer satisfaction. Arizona Beverage Company is known for innovation. To introduce their new no-carb line of iced tea drinks, they specified clear shrink-sleeve film. Tamper resistant with 360-degree graphic appeal, these labels let the product show through with thirst-quenching clarity. 7 Recognized for Innovation Multi-Color label solutions received numerous industry awards in recognition of their quality, innovation and  brand appeal: Food & Packaging magazine’s 2003 Package of the Year awards:  > Folgers AromaSeal ™ canister—Food category > Dr. Pepper/Seven Up Raging Cow ™ package— Beverage category Excellence in Technical Achievement , annual Tag  & Label Manufacturers Institute (TLMI) Printing Awards: > Febreze® (IML);  Arnold Palmer Arizona®  Half & Half (SS); Hulk ™ merchandising label (HT) > Environmental Leadership Award to Multi-Color and our Scottsburg facility for our commitment to exemplary environmental practices Golden Cylinder Award, The Gravure Association  of America: > Folgers Coffee, HT innovation Packaging & Label Gravure Association (PLGA)  gravure printing quality awards:  > Frito Lay “Finding Nemo” merchandising pail, HT category 