A DIVISION OF ACCO BRANDS

EVAP™ Launch Deck

EVAP

James Marshall

2 Confidential

Contents

Executive Summary Market Need - Pain Point Introducing EVAP Alternatives to EVAP Pain Point Solved Technology Inside Competitive Analysis Channel Strategy Channel Map Pricing Strategy Customer Value Proposition {Telco, Insurance & Mass} Channel Pricing & Availability Channel Marketing Options Marketing Calendar Marketing Assets Messaging & Packaging

Executive Summary

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Executive Summary

Current business situationFY13 Launch Date 2-1/2 Q1- 2012 1H’13 Insurance Partnerships, T-2 Telco & BuyCell Placement, Distribution, Sell-in, Launch, Awareness,

Category External DriversRapid Smartphone Adoption

Category PillarsMobile Phone Insurance Company Partnerships, (SquareTrade , Protect Cell, LSG, Assurian) Placement + Distribution at Independent Telco’s then T-1 and T-2 Telco’s

Category RoadmapCY13 EVAP: 2 NPD, 0 EOLCY13 EVAP Bulk Pack Shipper for bulk Purchase/s.

Business Outlook FY2013 ($?, 50% GM)Penetrate Consumer market = Independent Telco (US/EU), T1 and T-2 Telco, T1-Retail (US/EU/CA), E-tail, Global Expansion.

Partner with Third Party Mobile Insurance providers (SquareTrade, GWC, Protect Cell, (LSG EU Based) to achieve 1=1 Attach Rate.

Market Need – Pain Point

5Billion Smartphone users in the world, circa

2015

81

of Smartphone users never turn off their devices

.{According to recent study by LifestylesGroup in the UK}

percent

OneBillion of us are connected Like never before

f

f

f

f

f

ff

f

f

f

f

fv

ff

f

f

f

{2out

of3}

People will get their handsets wet

Study conducted by MSNBC

happen around the home

{According to www.Squaretrade.com}

5 out of 10 Smartphone Accidents

60 %Mobile Insurance Claims are due

to water damage.

Gartner Data

700Costof replacinga smartphone

Dollars

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5 billionSmartphone users in the world by 2015

81% of Smartphone owners never turn off their devices

1billion facebook users

2/3 of Smartphone users will get their devices wet

60 % of mobile insurance claims are based on water damage

5out of10 Smartphone Accidents happen at home

700 Dollars cost to replace a smartphone.

We have a lot of smartphones, we

are always connected, we have a habit of getting

them wet, and, they cost a lot of money

to replace!

1. Buy a new or used handset $250 - $7002. Repair it $2503. Go prepaid $1004. Take out a new contract >$2505. Reuse an old phone ;-(

OR…

So what are people doing about it?

Introducing EVAP

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Evap rescues your wet electronics before its too late.

Usual Dry time 6-24 hours

10x Faster than Rice or other at-home-remedies.

Increases your chances of successful recovery up to 700 times.

Single Use Disposable Aluminumized/Mylar Pouch

Neatly packed with 3 vacuum sealed healing kits stuffed with 20 Grams of Molecular Sieve each.

Pain Point Solved

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K39723EVAP : Bag + 2 Tyvek wrapped Pouches containing 30 grams of Molecular Sieve APG

Value

Rescue your wet electronics before its too late! Once your item has been sealed in the EVAP bag, simply wait until the humidity indicator signals , I’m ready!

Features

Aluminized Mylar Bag – Allows the least amount of moisture.

In as little as 3 hours and No longer than 2 days (depending on how soaked your device was) it will come out of the bag EVAP’D.

2 - Vacuum Sealed Tyvek Pouches containing 30 Grams of Molecular Sieve – APG Grade 13X (High Grade)

Available Jan ’13

NEW!EVAP

Technology Inside

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Adsorbent Ranking

Molecular Sieve

Molecular Sieve

Silica

Mono-Clay

Rice

think bath t0wel metaphor

2nd

3rd

4th

5th

APGGrade

1st

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Competitive Analysis

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Adsorbents Comparison Chart Retail

Packaging

Name EVAP BheestieBag Idea Village Dry-AllSave-A-Phone

Rice

SRP $ $19.99 $19.99 $6.99 $11..97 22.99(EU) $ 3.00

Technology Molecular Sieve 13x APG Grade {Highest

Grade Available}

Molecular Sieve 13X {Standard

Grade}Silica Gel

Molecular Sieve 13x {Standard Grade}

Molecular Sieve 13x {Standard

Grade} Rice

Humidity Indicator Yes No No No Yes No

Desiccant Pouch

Material

Vacuum SealedTyvek

PolyBag with Dotted

Holes

Hard PP Disk/ Plastic

TubNon-Woven Non-Woven  None

Amount of Desiccant

60 Grams / 2

28 Grams /1

35 Grams /1

20 Grams / 1 50 Grams /

2 8 ounces

Dry Time 6 - 24 hours 24-72 hours  24 Hours   48 hours Usually 24-72

hours  1 -5 days  

Bead Size OD = 3 - 5 mm OD = 3-5 MM OD = 2-3 mm OD = 3-5 mm OD = 3-5 mm

10mm 

Compelling Weakness

Not on the shelf until

Q1.

Only 28 grams of Dessicant

2nd rate adsorbant material

Beads are loose …

dirty

UK only Ineffective

Channel Strategy

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Q1 ‘13 Launch EVAP and seek placement within Tier – 2 Telco & Independent Wireless Dealers while simultaneously establishing partnerships with Third Party Wireless Insurance Providers.

This strategy will greatly enable the chances of EVAP becoming Category leader for wet electronic rescue kits.

Press Announcement – CES Jan. 18, 2013

General Availability - February 1, 2013

Parallel Paths of Success

How many headsetsWhere Next essential

Channel Map

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Channel RoadMapPriority’s Listed w/ respect to strategic

importance

(Q1, 2013)Phase 1

(Q2, 2013)Phase 2

(Q3, 2013)Phase 3

(Q4, 2012)

Phase 4

(Q1, 2014)Phase

5 Priority 1a. (Focus)

Priority 1a. (EVAP+ Kensington)

Telco Tier-2 {Independent Wireless Distributors}Tier 2 & Tier 3BuySell Co-Op

Mobile Insurance Partnerships{SquareTrade, LSG, Protect Cell, Assurian}

Tier -1 Telco (Corporate) At&T, Verizon, Sprint & TMobile

Mass Retail Tier -1 TargetApple Grocerie OutletsCVS/Walgreens RadioShack711Walmart

Continued Mass Deployment.

Geo Expansion

Priority 2 (Focus) Tier Distributors Airport convenianceFiJi H20 Model

Priority 3 (Focus) Leslie’s Pool Supply West Marine

Priority 4 (Focus) Independent Telco Tier-1 (Authorized Verizon Retailers)

Verticals

Pricing Strategy

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Pricing Strategy

Kensington are committed to creating this category, Zagg is our role model.

Kensington are committed to making this a highly profitable category for channel partners

Consumer focus groups have given us a price positioning range of $19.99 to $29.99 for EVAP (source EVAP)

Kensington are committed to delivering a strong Psychological ‘Value’ proposition for strategic insurance partners, $19.99 delivers that for them.

Customer Value Proposition{Telco, Insurance & Mass}

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Combine all 3 value prop slides into one simple chart

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Value Prop : Insurance

Compelling for Kensington1. 1-1 Hardware/Accessory attachment at P.O.S.

2. Distribution

3. Brand Recognition

Compelling for Insurance Providers

4. Want EVAP because it solves the pain point of customer claims for damaged phones of which 60% are due to water damage

5. Drive Demand and interest for their product or bundle.

6. Bundled as part of customer reward or follow-up program

7. Instant $20.00 value add on that Insurance companies use to incentivize their customers to renew service or lure new customers

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Value Prop : T-2 Telco & Co-ops

Compelling for Kensington 1. Using the install base of Buy-Sell Co-Op to secure the next level of placement, volume, while uncovering

new revenue streams and brand awareness amongst Tier – 2 Telco.

2. Gain traction for phase 2, Tier-1 Telco launch.

A)Leveraging the Tier-2 Telco and wireless BuySell Co-Op experiences to move up to the next install

base in our “stepped strategy” penetrating Tier-1 Telco.

B) By working with Tier 2 Telco to provide the highest level of customer service and high-end wireless

accessories.

Compelling for T-2 Telco & Co-ops3. Adds value to the in-store customer experience and overall level of customer service.

4. Gets their customers back online cheaper and easier than ever before.

5. Customer data interruption is minimal and inexpensive compared to todays alternatives

6. Increased profits & margins

7. Backed 100% by a trusted brand and valued partner in Kensington.

8. Pure profit, EVAP does not replace the sale of any other P.O.P accessory sales.

9. Best Electronic Rescue Kit available today.

10.Reduce ARPU (Average Return Per Unit Sold)

1. EVAP is a product that yields very low returns due to its nature.

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Value Prop : Mass

Compelling for Kensington

1. Phase 3 of “stepped strategy” where volume, brand value & brand recognition have been validated through the earlier phases of the strategy where the customer bases were incrementally smaller.

2. Using this “step strategy” to conquer our next phase, Global Expansion.

Compelling for Mass

2. Consumers demand Hot ticket items. Thus Category Captains are highly coveted by mass-retailers.

3. Margin % increase. Not selling the wrong product, just the wrong brand. At $ 20.00 I can guarantee a 60% margin increase.

Channel Pricing & Availability

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Channel Pricing & Availability

MSRP $19.99

KOB 1 $ Channel Margin = 50%

KOB 2 $ Channel Margin = 40%

Estimated GA 1st February

Channel Marketing Options

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Channel Marketing OptionsEffective ways to reach out

Wireless Dealer Magazine Advertisements – Print, Web, E-mail.

Print Advertising • Placement between pages 2-50• 2 Page-Ad Spread • 5 Email Marketing Campaigns• Prints priced from $850.00 for basic and scale up to 25 K for Cover Story.

Eblast Marketing Services • In between print Adds, the email blasts touches 45,000 independent wireless dealers

• Eblasts priced to range from – 5 /$ 1,300.00 and scaling up to 25/$ 3,000.00.

RSE – Retail Search Engine Advertisers can post company profiles and products inside the RSE, used by cellular, electronics and audio retailers to locate products and vendors.

Marketing Calendar

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Marketing Calendar : Conventions and EXPO’sCHANNEL

2013 Dates

2014 Dates

EVENT Event Site Location

Who & What will be there?

Everything & Anyone Wireless

MAY 21-23TBD Q2, 2014

International WIRELESS CTIA 2013

Sands EXPO & Convention Center

Las Vegas, Nevada

• 45,000+ • Service providers• Manufacturers• Developers• Retailers,• Enterprise end-users • The Media

PrePaid Wireless Dealers and Vendors

August 6-8Aug 12-14, 2014

The Prepaid Press Expo Paris Hotel

Las Vegas, Nevada

The PrePaid Press Expo is proud to offer the most informative and affordable conference program for prepaid services.

Independent Wireless Retail Owners, Managers and Resellers

October 13-15

TBD Oct, 2014

Wireless Dealer EXPO

Sands EXPO & Convention Center

Las Vegas, Nevada

• Independent Wireless Retail Owners• Product Buyers• Wireless Wholesalers• Hard Card Distributors• Retail Managers• Employees Dealers• Pay As You GO• MNVO's and Data.• Products and service companies

with incentives for reseller. • Wholesale Manufacturers, Carriers, • OEM's • Content Providers.

Enterprise I.T. Professionals

October 9-11

TBD Oct, 2014 MobileCon

San Diego Convention Center

San Diego, California

The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop

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Marketing Calendar : Events 2013

Channel 2013 Dates

EVENT Event Site LocationWho & What will be there?

Pre- CES - Attend the Independent Wireless Reseller Convention

Jan, 17 2013

Indepemndent Wireless Reseller Show

Monte Carlo Hotel and Casino

Las Vegas, Nevada

The 25 conglomerate owners for the BuyCell Co – op.

PrePaid Wireless Dealer Visits with detail team.

TBD

Enriching the consumer shopping experience

Aurthorized Verizon Resellers

TBD Sales Detail Team, Retail Sales team and the consumers.

Full promotion and Advertisement campaign in July,(Highest month of water damage)

October 9-11 MobileCon

San Diego Convention Center

San Diego, California

The MobileCON event - a mobile IT and Enterprise event designed specifically for the IT executive and professional. This user conference meets tradeshow is a one-stop shop

Marketing Assets

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4 Sided Spinner • Pre-loaded w/ iPhone 5 cases, S3 cases, Proximo and EVAP.

• Designed with Independent Telco’s in mind. The 4 sided spinner brings much more than versatility.

• Minimal footprint, will not impede where floor space can be extremly limited. Rotation adds to its versatility as it can be placed anywhere on a T-2 Telco sales floor while remaining in view, and accessible in corners, against walls or just in the middle.

Product Highlight Quick Fact Cards• For all T-2 Telco Sales Reps, who might have a tough time keeping products and their

features in order or even mentioned.

• Promote the Kensington Brand and individual product while empowering the sales rep to share the solutions offered by a particular Kensington product. The card also promotes higher conversion of sales when the product details are shared how intended.

Trio Sales Brochure • Spotlighting EVAP while highlighting the Value-Adds it present to all Partnered Wireless

Insurance Providing…Facts, Features, EVAP specific Benefits, How To’s, and plenty of high quality product and lifestyle Imagery

Marketing AssetsIndependent Telco & Insurance

Messaging & Packaging

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How it works:

Unzip vacuum sealed EVAP Bag

Place Electronics inside EVAP Bag with all 3 Tyvek “Rescue Pouches” inside.

Re-seal the bag vis-à-vis the zip.

For best results allow 6-24 hours

For soaked items allow up to 48 hours.

700% more effective than rice at removing water.

Also great for preventing damage in areas of high humidity or close coastal proximity.

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Self-contained display shipper

• Pre-display quantity - {PDQ} = 8 Per

• Universal hang tab will accommodate EU and US Markets.

• QR Code on Shipper Header

• Its configured to stand alone, on a shelf or hang from peg.

• 3 in 1. ½ the size @ 8 to 1 ratio with 60% Margin.

Thank You

Financial Analysis

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Third Party Wireless

Insurance Providers

Why they need it?The problem with the latest and greatest smartphones is that

along with their bright screens and spectacular features comes a hefty retail price tag that averages $ 700

AsurianProvides 90% of wireless carrier

insurance

Verizon

At&t

Wireless CarrierInsurance

Sprint

T-Mobile

Safewear

GoCare

Squaretrade

WorthAveGroup

Ensquared

LSG Lifestyles Group UK

ProtectCell

Global Warranty

Consumer

Channel Map : Wireless Insurance Providers

ProtectYouBubble

{Assurant INC}

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Stratagy for leverage:Develop geographic market closest to home, eventually expanding as we develop experience.

Strengths • Customer Service• # of locations

Weaknesses• Employee morale issues.• Communication/language issues between headquarters and Taiwan.• Version control issues among Caribou and MEDUSA product lines.

Opportunities• Expansion • Brand Value• More Efficient Supply Chain • Margin increases

Threats Internal : Ability to attract and retain qualified employees, Access to capital, and full-fledged product road maps External : Competition & Pricing

Channel Map : Tier-2 Telco Wireless Resellers

Tier-2 Telco consists of these wireless channels. Tier – 1 Distributors {National} Tier – 2 Distributors {National & Regional Wireless Retailers or Distributors} Tier - 3 Distributors {Small independent Regional & Local Retailers BuyCell Co-Op {Group of organized independent Verizon Wireless resellers}