2013 rd quarter analysis - mace security...

2013 3rd Quarter Analysis

OTCPINK: MACE

11/27/2013 1 Mace Means Security...Personal. Home. Schools. Business


Certain statements and information included in this presentation constitute “forward-looking statements” within the meaning of the Federal Private Securities Litigation Reform Act of 1995. When used in this letter, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “projected,” “intend to” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks, known and unknown, and uncertainties, including but not limited to economic conditions, dependence on management, our ability to compete with competitors, dilution to shareholders, and limited capital resources.

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Mace Means Security

Mace Security International

Mace Consumer Products - Ohio

Mace Monitoring &

Services -California

Mace Means Security...Personal. Home. Schools. Business

2013 Achievements to date: •Eliminated Suspension & Proposed Debarment •Sold last remaining car washes •Reduced staff & overhead •Moved manufacturing & combined with HQ •Reduced locations (8)– 2 main operations &(2 small sales offices)

•Anaheim •Cleveland

•Created several new micro-sites, packaging & consumer positioning •Gained Exclusives in various channels •Launched Tactical Division •Re-launched Take Down product line – by Mace® Brand •Set platform to launch several new products in 2014


2013 Achievements to date (cont):

•Signed 3 new small dealers -Central Station •Signed 1st dealer as a Mace Authorized Dealer •Dealers now using Mace as a source for products •Dealer care division has dual role as dealer care as well as inside sales support •Solidified Videofied offering & relationship (we sell & distribute videofied products & services) •Updated all marketing materials and selling materials •Created new product line of monitored products which we will sell through dealer network & direct to consumers •Created new funding program (3rd party) which dealers can use to move accounts to MSI/MCS


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2013 Notable Events 3rd Quarter


Direct to Consumer Sales

Sales from www.mace.com are up

63% year to date

Amazon Sales across all channels are up 52% year

to date

http://www.mace.com/�

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Law Enforcement sales were up 200% in quarter • Sept was a largest month for law

enforcement (+561%) • Open 7 new accounts in the

Quarter

Defense Sprays sales increased by 1.9% • Top 10 accounts were up 10.7% • Top 20 accounts were up 14.9%


QTY 100 style 3010 to Manatee County Sheriffs office in Bradenton, FL

Marketing partnership with Ohio Association COP Online Buyers Guide Hiring of LE specific reps for HI,CA,NV,AZ and NM- Welcome Western Frontier Sales

New South American distribution partner "Columbian Security" L.A. Police Gear relationship revitalized as a true Tactical account, Take Down launch

Kroll US & Int'l distributor relationship revitalized, running Sept promotion, marketing partnership

3rd Quarter Law Enforcement Wins


List of PD/Agencies using Take Down by Mace® Brand- by State

MANATEE CO Sheriff’s Office FL WEST SACRAMENTO POLICE DEPT. NV NEVADA DEPT. OF CORRECTIONS CA LINN COUNTY SHERIFFS OFFICE OR FORT CARSON MILITARY POLICE CO

SANDY CITY POLICE DEPT. UT CONNECTICUT POLICE SUPPLY CT UMASS POLICE DEPARTMENT MA BEL AIR POLICE DEPARTMENT MD

SOUTH HAMPTON POLICE DEPT. NH NEW YORK CITY POLICE DEPT. NY

NEW YORK DIVISION OF PAROLE NY NEW YORK STATE PAROLE NY

TOWN OF KENT POLICE DEPT. NY BENNINGTON COUNTY SHERIFF'S DE VT

RUTLAND POLICE DEPARTMENT VT SOUTH WESTERN VERMONT MEDICAL VT

HENDRY COUNTY SHERIFF'S OFFICE FL HOLMES BEACH POLICE DEPT FL

WARE COUNTY SHERRIF'S OFFICE GA TAYLORTOWN POLICE DEPARTMENT NC

ODESSA POLICE DEPARTMENT TX WICHITA COUNTY SHERRIF DEPT TX

HENRICO SHERIFF'S OFFICE VA COOK COUNTY SHERRIFF OF CORR. IL VINCENNES UNIVERSITY POLICE DE IN

BREEZY POINT POLICE DEPT MN AMHERST POLICE DEPT OH

EVENDALE POLICE DEPARTMENT OH FOREST PARK POLICE DEPARTMENT OH

MEDINA COUNTY SHERIFF OH DEWEY COUNTY SHERIFF'S DEPT SD IOWA DEPT. OF CORRECTIONS IA

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Operations Update • Due to the move – some shipping was

delayed –September sales were moved to Q4

• Plant is fully functional & efficiencies are improving every day

• Move was completed in Q3 2013 (we will have some additional changes in Q4)

Sales Update

Q3 Retail Demand was soft

Several retailers experienced slower than expected POS sales – which pushed re-orders & replenishment

Sales Update

Several New Accounts were delayed due to timing

Discount Drug Mart

Office Max

Bi- Mart

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Expenses in the Quarter include –one- time events:

Severance

Duplication

Moving Expenses

Other one- time expenses include:

Product Research & Development

Consulting

Lobbying


Security & Surveillance Products

Security cameras, digital video recorders, observation monitors and installation accessories for CCTV and IP network-based video surveillance. Wireless alarm security systems for local and remote monitoring.

Personal Defense Products Pepper spray products for self-defense against attacks by people and animals. Mace has over 40 years experience

developing aerosol spray dispensing technologies for both consumer, tactical & law enforcement markets around the world

Mace Consumer Products

Mace directly markets, distributes, and supports its branded products and services through strategically targeted customer channels.


Mace Central Station

Mace provides residential, commercial, schools and industrial sector customers with alarm, video, and PERS monitoring services through independent security dealers.

Mace Monitoring & Services

Mace owns and operates its own UL/ETL listed 5- Star central station providing full-service security & life-safety alarm monitoring to the wholesale security trade.


Streamlined Operations

2 Main Operating facilities (Cleveland & Anaheim)

Superior & Growing Product Portfolio

Strength in Defense Sprays & opportunities in surveillance

Growing Market for Security Products

Mace has the largest share of Market (51%)


VP of Sales Eric Crawford

Bill Treacy DR- Consumer

Sporting Goods Reps

Retail Reps/ Distributors

Luis Tapia DR- Direct

Tele-Marketing Web/Direct

Dealer Network

Doug Melzig DR- Tactical

International Distributors

Law Enforcement Reps/Distributors

Sales Group is positioned to grow our distribution & sales

Sales force is focused on Growth

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2014 Sales Channels –Consumer


• Grocery • Drug • On- line retailers

• Big Box • Specialty retailers • Home Stores • Hardware Stores • Shopping Channels

• Tactical Distributors • Safety products

• Auto Parts Stores • Automotive Aisle

Auto/Office Stores

Distributors/ Web

Other Consumer

Products would be channel specific

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2014 Sales Channels –Gun/Sport/LE


• IWA show in Germany •Distributor or partner in •Europe •Middle East

•Suppliers to LE/ Gov’t

• NLT Partnership • Local Distributors • Mace Tactical Web site

• All Hunting & Fishing outlets

• Sporting Goods • Running /Shoe Stores

Sporting Goods

Distributors/ Web

International Law

Enforcement

We are bidding on all LE offers via online & reps/Distributors

Mace Tactical Division

• Take Down Re-Launch

• New Product Take Down Omni

• Macetactical.com

• Train the trainer program

• Law Enforcement 2013 YTD: 50%

Growth over 2012

• Strong % Growth forecasted for spray business in 2014 for LE business

• Strong % Growth forecasted for International business in 2014

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2014 Sales Channels –Direct


• Small Business Security

• Home Security

• Store – Mace Security Solutions

• Law Enforcement • Distributors

• Consumers – education and purchase

Mace.com Mace

Tactical

Mace Camera Amazon

Focused on end user and specific Products

11/27/2013 Mace Means Security...Personal. Home. Schools. Business 20

Mace Tactical Division New micro- site 2014 launch

www.macetactical.com Site be dedicated to Law Enforcement

personnel, distributors & reps

http://www.macetactical.com/�

Web Site & Landing Page www.macecamera.com

Create easy to use landing page for users to purchase products. This specific landing page will offer consumers the choice of picking a specific DIY Mace security surveillance package. The site will have a “POP AD/Alert Badge” on the landing page with specials and promotions to motivate buyers to purchase a specific camera package. This will allow a prospect to either enter information for a security consultant to contact them via: 1. Phone: Immediate Contact for quoting & purchasing 2. Email: Quoting and communication 3. Direct Mail: Future correspondence & promotions

http://www.macecamera.com/�

Prospecting

Telemarketing: We will be outsourcing outbound telemarketing to drive customers to newly developed landing page. The telemarketing representative will walk the prospect through one of the security surveillance packages that best fits the business owner. Email Campaign: A targeted email campaign to qualified purchasers for the purposes of directing prospects to: A dedicated landing page for quoting and ordering An 800# number for quoting and ordering

Leads

Leads will be purchased from Sales Genie. Targeted leads are below: 1. New Business Owners (Small to Medium size) 2. Franchise Owners 3. Franchise Companies 4. Security Directors 5. Building Superintendents

Directly Sold & Professionally Monitored By Mace

• Simply connects to home or business network

• GSM Cellular backup for added security

• Web Portal & Smartphone App Control

• Alarm, Video, and Basic Home Automation Accessories

$399 Alarm System Package

• Simply connects to your home Wi-Fi Network

• Tablet and Smartphone App for panel control and alerts

• Basic alarm accessories for expansion

DIY Installation & Monitoring $299 MSRP Alarm System Package

Wi-Fi for Retail Channels

SECURITY SURVEILLANCE & RECORDING

Best-in-class feature & price performance 24-month warranty & technical support No-risk 30-day, money-back guarantee

High Definition IP video surveillance for megapixel vision. So affordably simple, you will hate to know what you’ve been missing.


New revised Web with specials to encourage purchase

New revised Web page for education and usage tips


2012

Re-organize

Reduce Overhead

Sell off non-core

2013

Restructure

Reorganize

Align Core Business with Potential

2014

Grow-

Brand

Distribution

Sales

Partnerships

Opportunities

Sold off all non- core assets including buildings & businesses


Where is the Mace ® Brand going: The company has begun expanding its consumer message beyond personal defense to being a part of everyday life during these uncertain times. Just like locking the front door. The brand is focused on moving beyond a lifestyle accessory that responds to fear-based concerns to becoming a lifestyle necessity that's simply the prudent course of action. Owning a Mace ® Branded product will become natural. This broadens the potential market among direct buyers as well as the stores that will carry the brand because it moves past being a specialty item. This push is designed to shape public opinion while also proactively growing markets in the areas of international security and school campus security. The brand is the prudent solution that provides peace of mind during uncertain times.

2013 rd quarter analysis - mace security...

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