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INSIDE THIS ISSUEEvents ........................................................1Marketing Campaigns ................... 2-3Corporate Update ............................ 3-5Sales ...........................................................6Innovation ...............................................7

Issue 1 – February 2019

HIGHLIGHTS FROM THE AHR SHOW CPS Products showcased a new booth highlighting the latest innovations in air comfort, air quality and service with award-winning tools and equipment in Atlanta, Georgia at the AHR Expo January 14-16.

CPS kicked off its 2019 campaign Advanced Tools, Smart Solutions with live demonstrations and hands-on interaction at the booth. Excitement surrounded our new IAQ product, a 2019 AHR Innovation Award winner.

Attendees were invited to interact with the tools and CPS Link app to discover how easy it is to improve job efficiency, earn additional revenue and increase profits with the industry’s most advanced smart solutions for residential and commercial applications. A press conference was held in the booth where several members of the media attended and received packets including press releases, images and one-on-one Q&A with President and CEO, Brian Humes, Vice President Global Marketing, Scott Cross, Vice President Sales, John Jeffers, Director of Sales, Marjorie McAllister and Vice President Smart Tools, Scott Madden.

EVENTS

The information contained herein is intended for internal CPS associates only and may not be distributed or reproduced externally without obtaining permission from jcexposito@cpsproducts.com

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We are excited to introduce our 2019 Advanced Tools, Smart Solutions initiative.

We have invested significantly in technology and engineering enabling CPS to offer the latest innovations in air comfort, air quality and service with award-winning tools and equipment. At the center of the Advanced Tools, Smart Solutions initiative, is our CPS Link app, new advanced tools and a new digital marketing platform.

Our singular focus is to enable contractors, technicians and business owners to grow their top line revenue and increase profitability through state-of-the-art equipment. CPS Products will simplify and streamline maintenance work, enabling technicians to complete more jobs per day, and for new installations, guarantee compliance to warrantied work.

To support the initiative, we are not only investing in technology, but we have also made a significant investment in marketing. This investment will focus on new product development, a superior user experience and advanced marketing platforms that will deliver solutions to our technicians and contractors in a way that simplifies and streamlines their work.

IAQ PRO SmartAirThe HVAC industry’s first smart tool designed to help professionals identify indoor air quality issues, determine potential causes, and recommend and provide effective solutions.

ABMHBK 410, 510, 610 The ABMHBK series of Home Balancing Valves provides accurate airflow for residential indoor rooms, which improves air quality and comfort while reducing energy costs.

CC220EWTechnicians can select from Manual, Programmable or Automatic modes of operation to meet specific job site requirements. It can be paired to other CPS wireless devices for added functionality.

SVWThe SVW is a compact, battery powered solenoid valve for precise HVAC/R routines. It improves job efficiency, validates work completed and extends equipment life.

TR650WThe TR650W is the lightest, most efficient recovery machine on the market providing the fastest recovery times. It can be operated remotely with wireless connection.

VP15WLightweight: weighs < 24 LBS (10 KG) Lightest 15 CFM on the marketEfficient: Faster, Deeper Vacuum 15 CFM, 20 MicronPowerful: 1 HP D/C MOTOR Variable speed

2019

W I N N E R

CAMPAIGNS

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TPSPDDesigned to protect HVAC equipment and other high-end appliances from damaging electrical surges produced by proximity lightning strikes and other power line transients.

Volt-100When paired to smart devices running the CPS Link app, the Volt-100 can log or e-mail data, calculate appliance operating costs/hour and true power consumption.

INVESTING IN MARKETINGIn November, 2018 CPS hired a new Vice President of Global Marketing, Scott Cross. The new hire and subsequent investment in the marketing department is a result of a strategic decision to drive end-user pull through, create a center of excellence around training, implement a digital marketing platform and to develop and institutionalize a Voice of Customer driven stage gate new product development process. Scott brings with him experience in managing mid-size to large Fortune 500 organizations specializing in industrial and consumer goods sold in B2B and B2C channels.

The marketing team’s focus is on driving a culture of being easy to do business with and providing internal teams, distributors and end-users value added products, services and programs to drive additional revenue streams.

The team’s responsibilities will include successful development and deployment of market, brand and product strategies that utilize the latest innovative technologies infused with “Voice of Customer,” continuous improvement and an emphasis on a customer service culture.

L to R: Meyli Guevara, Brian Day, Arianna Cabrera, Scott Cross, J.C. Exposito (not shown Mark Kustra)

CORPORATE UPDATE

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VP Marke�ng

Market Research, Analy�cs & A�ribu�on

Product Management

Digital Marke�ng

Marke�ng and Communica�ons Training

Research/Development/Planning Implementation (Customer & Consumer)

The CPS marketing team is expanding e efforts to focus on digital marketing, training programs and a rigorous consumer-informed product development process to extend the reach of the company’s brands.

As such, we are implementing the new structure illustrated above.

Another very important initiative for us in 2019, is to invest significantly in our marketing partnership efforts with our distributors. This includes end-user awareness and communication that delivers Smart Solutions.

In the coming weeks, we will be kicking off significant marketing programs to create

awareness and add value at the contractor, technician and business owner level. These programs will deliver relevant and timely value add information on how to simplify maintenance and installation work saving time and money, and how to create additional revenue streams.

INVESTING IN MARKETING

CORPORATE UPDATE

KEY PILLARS:

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MARKETING PORTAL FOR WORK REQUESTS

CORPORATE UPDATE

INVENTORY WEEKThank you to the CPS associates whose hard work made inventory week a success.

Managing multiple marketing requests from various individuals has been a source of confusion— especially when they are part of different business units, geographical areas, and timezones. Our department had been using multiple methods, communication tools and systems to receive and complete work requests. Starting today, we will be utilizing a new management system that allows:

• Visibility of marketing requests and the progress of work;

• Improved resource planning • Visibility into how projects align to business objectives;• Complete project briefs including revenue projections and measurement for better payback calculations• Visibility to employees so they can track the progress of their department/division request

In the following days, you will be given more information regarding this system, but in the meantime, you can check out the user interface by going to: cpsproducts.com/marketing-portal/

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SALES CORNERSAMBASSADOR FOR WOMEN IN HVACR Marjorie McAllister, past Women in HVACR President, joined the newly developed “Ambassador Program” for the Women in HVACR where she will act as spokesperson for the organization with a focus on educating women on the opportunities available in pursuing or growing their careers within the HVACR industry at all levels from the field, to sales, to management, to ownership.

WUNDERBAR! CPS GETS OEM APPROVAL FROM BMW, AUDI AND VOLKSWAGEN CPS Products proudly announces Volkswagen, Audi and BMW have approved 3 different CPS Smoke Machines for global distribution in 33 countries. These vapor technology machines will be mandated to over 900 worldwide dealers!

At Toyota, CPS vapor and RRR machines are currently under review.

DEVELOPED FOR LOCKHEED MARTIN, CPS PROUDLY SUPPORTS THE U.S. MILITARY’S LATEST FIGHTER JET—THE F35 The CPS FA1000-F35, named after the military’s most advanced and innovative fighter jets, has been a two year project developed for Lockheed Martin, that will maintain the AC systems of the vehicles and equipment that support the F35 at bases around the world.

The CPS FA1000-F35 recovers refrigerant at a lightning fast 2.5lbs/min and can recover 120lbs in just 48 minutes. CPS just shipped the first 10 units out last week with another 40 being sent over the next 2 weeks.

SALES

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Leading the industry as innovation pioneers requires a commitment to ensure associates, partners and industry professionals have access to resources that enable them to deliver the highest quality service in our technologically fast-paced markets.

The CPS Global Innovation and Training Center is purpose-built to combine comprehensive engineering capabilities, control system expertise and state-of–the-art technology to provide

automated solutions to customer problems. The center will focus on understanding industry needs and anticipating emerging trends as well as ensuring end-to-end quality management.

This high-tech facility was a significant investment and will serve as the keystone for our customer-focused product development strategy. It will allow us more collaborative opportunities to automate and integrate as we work closely with key partners to identify

available technologies to bring unique innovative solutions to the market.

The CPS Global Innovation and Training Center will officially open in March and serve as the company’s headquarters, housing research and development, engineering, quality control, training, marketing programs, customer service and technical support.

CPS GLOBAL INNOVATION AND TRAINING CENTERThe new Innovation Center will have all of the latest technology and will house an industry leading training program that we will introduce in the spring of this year.

FIRST TRAINING SESSION:

June

MOVING DATES:

February – March

GRAND OPENING:

May

INNOVATION