Growth through Mul -T-Lock Centers

1. Growth through Mul-T-Lock Centers

2. Mul-T-Lock is the Locksmith Champion

3. Locksmith Channel − Development To Hybrid Locksmith (HLS) From traditional locksmith To Small System Integrator (SSI)

4. Current status Effect on growth GAP 4

5. Closing the Gap with Mul-T-Lock centers • MTL centers an effective tool • Increase Brand reputation • Increase commitment of customers • Promote Unique products • High security focus (patented) • Recurring revenues (Key control) • Block competition 5

6. Goals for today’s session • Define • What are MTL Centers • Who is the right candidate • What are MTL Centerprogram components • Explain • Benefits to MTL • Benefits to you • Benefits to your customers • Benefits to end users • Action plan • Define the most suitable business model for your region

7. So, what is a Mul-T-Lock Center?

8. Mul-T-Lock branded Shop

9. Mul-T-Lock branded Shop • Immediately Identified as a Mul-T-Lock Partner Israel

10. Mul-T-Lock branded Shop • Inside and Out Israel

11. Mul-T-Lock branded Shop • Can be part of the shop Turkey

12. Mul-T-Lock branded Shop • Combined with Shop unique brand Argentina

13. Mul-T-Lock branded Shop • Or only Mul-T-Lock Mexico

14. High Security Focus • Patented key business • Key Control • Master Key Systems • Unique Products

15. Reputation • Mul-T-Lock Center certification • Long term business relationships • Clear commercial policy • Selling Reliable product Brands • Quick response to the market needs

16. A MTL Center should be… • Positioned as anautorityonSecurity • Knowledgable of the potential securityproblemsfacedbycustomers • Knowledgabletheproductfeatures and theproductportfolio • Knowledgableof thevariousapplications and productmodels • Able to listen and understandcustomerneeds • Able to Providecomplete, clear and consistentinformation • Able to Influencethedecisions of cunsumers

17. Mul-T-Lock Center Strategy We offer… They commit to… • Training • Support • Differentiation • Special Conditions • Sale patented keys cut • Get Key cutting machine • Assign space for branding • Allow us to train their sales team

18. Training Patented Investment level Non-Patented MTL Center rules Technical training Unique Product solutions Security level 18 18

19. Support examples • Advertising material • Partner zone access • Appears in web site • Toll free number • Free master systems • Participate in our PEU’s projects • Networking with our distributors/customers • Other

20. Special Condition examples • Prices • Sales targets • Priority on deliveries • Shipments FOC • Engraved patented key blanks (inserts) • Free access to show room/training facilities • Support for their events

21. Key Factors • Long term business relationship with the locksmiths • Clear commercial policy • Reliable products • Locksmith work to restricted key cutting • Quick response to the buildings needs • Raising wave of insecurity creates growing awareness about the importance of the restricted key in buildings entrances

22. Mexico case study Developing a Mul-T-Lock Center program where a professional Locksmith culture exists

23. Starting Point Organization: 2 Exclusive Salesman 4 Non exclusive Salesmen 4 Assembly people Problems: High rotation of non exclusive salesmen and low sales Salesmen going to all channels Unorganized assembly • 0Mul-T-Lock Centers • No agreement signed • 5 locksmiths with key cutting machines • End user channel: 30 % Locksmiths 70 % Wholesalers • 20 k key blanks sold 19,500 Non patent 500 Patent

24. First Step • Segmentation locksmiths and wholesalers • Reconsider / establish the key platform policies • Establish Goals • Elaborate business plan PEU PEU Wholesale Locksmith Wholesale Locksmith Non Pattented Pattented

25. Difficulties • No control on non patented keys • End user not worried if it’s patented • MT5 price difference vs Interactive • LS don’t follow key cutting policies • Wholesalers had highest discount • Lack of knowledge on high security • End users & salesmen • No regulations or standards

26. Business Plan • Mul-T-Lock center launch • Strong Launch Patented platform (Interactive +) • Launch of new products (SPL810, TLO, code-it) • Regions to attack • 1st stage: 2 Centers per neighborhood • 2 ½ hour drive rule • List of potential Centers by area • Locksmith Show

27. Locksmith Show • Showed a MTL center • Cut keys with KC5 • New products • Conference for 50 locksmiths • Informed platform conditions

28. Sales team job • Locksmiths show  over 250 leads • 52 possible Centers visited • 45 trainings (marketing & technical) • 140 “emergency” deliveries • 450 possible customers sent to their centers 2012 2013

29. Results • Rumor of our centers has spread out • Inquiries every week • 23 Mul-T-Lock Centers • All with signed agreement • 28 locksmiths/centers with key cutting machines • End user channel: 80 % Locksmiths 20 % Wholesalers • 20 k key blanks sold 15,000 Non patent 5,000 Patent • 12 Compact KCM sold 2013 Goal 37 Centers

30. Mul-T-Lock Centers

31. Sales by Channel Before After

32. Sales (MEX, K)

33. Brazil case study Developing a Mul-T-Lock Center program where no professional Locksmith culture exists

34. Video of David describing the case

35. Thank you