Solution Overview John Seaner

General Manager Americas

September 2, 2011

1

Company Highlights

Established: 2008 as a wholly-owned subsidiary of Mapping Group Parent Company: Serving 2,500 customers of all sizes, industries and geographies with enterprise content management and workflow solutions for 22 years

Accolades: Our offer management and promotions lifecycle solutions have created, executed, analyzed and refined over 100,000 targeted marketing campaigns from 4,000 retail outlets generating 800mm promotions that have reached some 25mm consumers Industries Served: Supermarkets and grocery stores, mass merchants, department stores, general merchandise and apparel retailers, drug stores and pharmacies, specialty retailers, internet retailers and restaurants and hospitality providers

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Notable Reference Customers

900 women’s footwear and apparel stores in 20 countries with $5 billion in revenues

220 consumer electronics stores in 1 country with $750 million in revenues

75 grocery stores in 1 country with $12 billion in revenues

350 grocery stores in 2 countries with $3.5 billion in revenues

15,000 hypermarket, grocery, discount and convenience stores in 55 countries with $122 billion in revenues

1,000 grocery stores in 6 countries with $12 billion in revenues

84 supermarkets and hypermarkets in 6 countries with $10 billion in revenues

20 music stores in 1 country with $45 million in revenues

30 men’s apparel stores in 1 country with $51 million in revenues

70 children’s apparel stores in 6 countries with $125 million in revenues

250 shoe stores in 1 country with $450 million in revenues

100 casual restaurants in 6 countries with $265 million in revenues

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Family of Solutions

Intelligent Promotions SuiteTM

‒ An end-to-end customer loyalty, offer management and promotions lifecycle solution

Intelligent Promotions Suite MarketMover EditionTM

‒ A complete turnkey customer loyalty, offer management and promotions lifecycle solution specifically developed for the needs of independent retailers

Real-Time Intelligent PromotionsTM

‒ Enhances existing POS, customer loyalty and/or campaign management systems by providing marketing professionals with the tools to benefit from real-time targeted offers and intelligent promotions

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Challenges in the Retail Industry

Effects of 2007-2008 global economic meltdown continue to restrict consumer spending

Pronounced 15% to 45% decrease in customer loyalty over the last 3 years

Private labels are not reverting market share to global brands as they typically have in past economic recoveries

Lower margins are now forecasted for most product categories due to increase in commodities and materials costs

Emergence of a fickle consumer demand chain as a results of inflationary pressures and decrease in real wealth

Continuing economic volatility due to world events is proving challenging to even short-term planning and growth

Declines in same-store sales and stock prices

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Promotions Have Helped Mitigate These Challenges

81% of all consumer spending over the last 3 years has revolved around the use of coupons and promotions (NCH)

78% percent of consumers indicate that price and promotion is now the most important factor in buying decisions (IBM)

Consumers spend 56% more on a market basket of goods with coupons than without coupons (IBM)

57% of consumers would not have purchased an item without an associated promotion or coupon (NCH)

Consumers will repeat purchase an item 91% of the time if they receive a promotion connected with that item (NCH)

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Marketers Struggle with Traditional Promotions Efforts

True effectiveness of current trade promotions practices is consistently debated

“One-size-fits-all” of mass promotions and manufacturers coupons leave money (i.e. margin) “on the table” and fails to create lasting customer affinity

Typical promotions approaches surrounding new retailers, stores or products fail to initiate the “awareness/trial repeat/upsell” cycle

Lack of multi-channel coordination and consistency with promotional campaigns is creating consumer dissatisfaction

Confusion as to the role and true effectiveness of emerging marketing channels is distracting

Capabilities to share promotions results and consumer insight with trading partners are severely lacking

7

Targeted Offers Have Greater Impact

Increase in Revenue and Market Share -Increase Revenue

-Sell Higher Margin Products

-Decrease Time-to-Market

-Attack New Markets

Consumers purchase an average of $131 per basket of goods with mass promotions and $241 per basket of goods with targeted promotions (IBM)

Targeted coupon redemption rates are 4 to 5 times higher than those of conventional mass promotion efforts (Ipsos)

Retailers can experience an increase of almost 10% in customer loyalty with a targeted offer deployment strategy (Clarkston)

A 5% increase in customer loyalty can result in a 25% increase in profitability (McKinsey)

Decrease in COGS and Operating Costs -Reduce Inventory

-Reduce Logistics Expenses

-Reduce Sales and Marketing Expenses

-Reduce Direct Materials Expenses

Acquiring new customers can cost as much as 5 times that of regaining an existing ones (CMO Council)

A 10% increase in promotions effectiveness can lead to a 15% to 20% decrease in overall marketing costs (Clarkston)

With precision analysis on consumer trends, developments and spending patterns during targeted promotions campaigns, sourcing and merchandising expenses can be reduced by over 10% (BCG)

Excess inventory, stock outs and demand volatility can effectively be mitigated by targeted promotions and the market intelligence learned through their execution (Cap Gemini)

8

Targeted Promotions Capabilities are Not Optimal

Efforts via customer loyalty programs have largely failed to increase brand affinity and drive desired consumer behavior

Reliance upon marketing agencies, outsourcing firms, or coupon services do not allow companies to “get close” to the customer

Micro segments are dramatically decreasing the effectiveness of traditional promotions efforts

Lack of real-time capabilities to create and adjust offers, as well as deploy new promotions in reaction to dynamic events have an adverse impact upon the enterprise

Multi-channel deployment is typically inconsistent in offer, price, limitation, etc. and leads to customer frustration

Effects of mismanaged promotions efforts have far- reaching financial impacts upon business operations

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Maxxing Streamlines the Promotions Lifecycle

Analyze

Manage

MAXXING Intelligent

Promotions SuiteTM

Plan

Model

Create

Execute

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Maxxing’s Solution Model Process View

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The Maxxing Intelligent Promotions SuiteTM

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Promotions Definition

Plans, defines, configures and tests targeted promotions campaigns and mass offers

Defines offers at over 90 levels including:

‒ Customer source, profile or history

‒ Product brand, group, category or attribute

‒ Event, time, location or store

‒ Shopping cart content or value

‒ Saved shopping cart or wish-list

Triggers over 60 types of offers, rewards, rebates, discounts or sweepstakes based on conditions and limits

Accommodates customer-specific offer levels and criteria

Includes guided wizards and macros to automate and simplify frequently-used processes

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Promotions Creation

Intuitive design tool to create the communications media for targeted offers

Built-in templates along with the ability to import artwork and graphics from popular desktop publishing software

Easily adds dynamic fields (price, discount, URL, 2d barcodes, short codes, etc.) directly into marketing media

Provides the ability to develop, organize and maintain a marketing repository:

‒ Guidelines and templates

‒ Brand assets and product information

‒ Deployment media

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Promotions Execution

Advanced messaging engine that operates in several formats: ‒ Corporate-level or store-level or both

‒ Real-time or batch mode

Coordinates and deploys offers through a variety of channels: ‒ POS, i-POS, kiosk, handheld device and smart-cart

‒ Mobile phone and tablet computer (Apple, Android and Blackberry OS)

‒ Social networks and location based services

‒ Digital advertising and coupon aggregators

‒ 1D and 2D Barcodes, EPC RFID and NFC

‒ Conventional print, email, mail, fax or interactive voice response

Automatic authentication prevents coupon fraud or consumer usage inconsistent with defined conditions or limits

Triggers redemption and reconciliation of promotions with trading partners

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Targeting and Segmentation

Rules-based analytical engine used to identify customer segments:

‒ Customer Lifetime Value (CLV)

‒ Recency, Frequency and Monetary Value (RFM)

‒ Recency, Frequency and Average Purchase (RFA)

‒ Recency, Frequency and Profit (RFP)

‒ Small, Medium, Large and Non Buyer (SMLNB)

‒ Respondent Customer Rate (RCR)

Models custom targeting criteria such as scoring based on:

‒ Psychographics

‒ Geography and D

‒ Demographics

‒ Customer behaviors

‒ Customer transaction history

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Campaign Management

Comprehensive budgeting, forecasting, scheduling and workflow features

Real-time campaign monitoring with notifications and alerts

Evaluates historical campaign conclusions, consumer actions, behaviors and patterns, then simulates the execution of promotions to measure potential impact

Predictive modeling tools optimize offers based on promotion distribution and sales channel as well as the effect of multi-selling, up-selling, cross-selling and product cannibalization

Analytics dashboard with over 40 standard reports, graphical capabilities and drill-downs, including customer activity, promotion effectiveness, uplift, brand performance, gross margin and return on investment

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Customer Loyalty

Collects, organizes, manages and analyzes all vital customer information

Allows the creation of customized loyalty programs by defining guidelines, conditions, tier levels and rewards

Includes a rules-based framework for properly processing point accruals, redemptions, tier changes and return credits.

Easily integrates with POS systems, call centers, kiosks, smart carts, mobile devices and web sites

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Trading Partner Collaboration

Facilitates the sharing of customer insight and campaign results among trading partners in an effort to improve promotions effectiveness

Provides a uniform understanding of daily customer demand, buying patterns, emerging trends and competitive pressures

Trading partners can collaborate on customer segmentation, targeting and joint-campaign activities

Suppliers have the ability to configure offers and integrate them directly into a retailer’s environment

Facilitates the maximization of trade promotions funds

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Key Operational Benefits

Increases Customer Loyalty, Shopping Frequency and Basket Size through the use of targeted promotions based on real-time customer behavior and the ability to react to store-level trends as they emerge

Improves Sales, Product Category Pricing and Margins through the ability to directly control marketing initiatives and the continuous monitoring and adaptation of promotions campaigns

Accelerates Response to Real-Time Merchandising Priorities and thus reduces the costs of excess inventory, volume surges, out of stocks and markdowns

Optimizes Private Label Opportunities by stimulating demand and maximizing profits

Facilitates Customer Insight Sharing and Collaboration between trading partners to effectively plan targeted promotion strategies, budgets and campaigns

Redirects and Repurposes Trade Promotions Funds toward highly-influential targeted marketing efforts that can be accurately measured

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Key Marketing Benefits

Reduces Core Marketing Costs by refocusing marketing spending on higher performing, targeted promotions and reducing the need for expensive mass marketing communication efforts whose effectiveness cannot be accurately measured

Lowers Operational Marketing Costs by minimizing dependence upon expensive and frequently ineffective coupon services as well as eliminating coupon clearinghouses through an automated redemption process

Extends Marketing Reach and Improves Conversion Rates by utilizing each customer’s preferred communication channels

Increases Promotions Speed and Frequency by streamlining the marketing process and accelerating the development of promotions campaigns

Reduces Competitor Visibility compared to traditional mass promotions that expose advertised prices or coupon values and triggers competitor reactions

Instantly Addresses Competitive Offers through the ability to react to pricing pressures and either match or beat competitor offers within minutes

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Superior Customer Results

Increase in Revenue and Profitability -Increased Revenues

-Increased Category Sales

-Increased Category Margins

-Increased Offer Redemption Rates

18% to 80% offer redemption rates depending upon distribution channel

Average 9% uplift on overall sales

Average 14% increase in category sales

Average 23% increase in category margins

Decrease in Costs

-Reduced Customer Defection

-Reduced Marketing Costs

Average 14% increase in customer loyalty

Average 21% increase in customer retention

Average 16% increase in frequency rates

Average 31% reduction in marketing costs

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Comparative Advantages

Real-Time Capabilities react to trends and changes in consumer shopping behavior

Widest Range of targeting method, offer types, deployment channels and reporting capabilities

Flexible and Adaptive System Architecture that easily integrates with existing enterprise software and hardware

Rapid Implementation in 90-days with preconfigured templates based on best practices as well as administrative controls and process frameworks that map to your current business

Low Total Cost of Ownership with high usability, proven scalability, superior reliability and low support requirements

Quick Return on Investment from pronounced impact on organizational effectiveness and operations

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Professional Services

We measure our success by how quickly and efficiently we put our enterprise solutions to work for our customers

Our team employs consultants, educators, and technical support staff dedicated to maximizing return on investment

We understand that the key to a successful business lies with establishing a life-long partnership with a team that can ensure a customer’s financial and organizational growth

Implementation, application and technical consulting, as well as training, education and customer support services are complemented by our partners

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Maxxing Satisfies all Customer Decision Criteria

Financial stability

High-performance company

Retail-centric vision

Superior customer results

Large investment in R&D

Comprehensive solution functionality

Flexible solution architecture

Exceptional professional services

Large network of partners

Validation by industry analysts and associations

100% referencable customer base

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Questions?

John Seaner Vice President & General Manager Americas

Maxxing, Inc. 1501 Broadway, 12th Floor

New York, NY 10036 +1 646-571-2077 (Office)

+1 267-247-6323 (Mobile) www.maxxing.com