The use of consumer tablets in business How do SOLUTIONS PROVIDERS embrace this trend and what value can we add?

Tablets Aren’t these just toys? ”We do not consider a tablet like an iPad to be of any concern. This technology will never compete in the Point-of-Sale market.” Director of Retail Store Services, IBM November 2010

Well not exactly.... Apple iPad A product that started it all… 1991 – Atari ST-PAD (never released) 1991 – AT&T EO Personal Communicator 1993 – Apple Newton 1996 – PALM 2000 – Microsoft ... All failed due to unresolved problems including weight, battery, and application issues

Adoption Phase Where are we at? The Chasm Innovators 2.5% Early Adopters 13.5% Majority 34% Late Majority Laggards 16% The Chasm

What causes the CHASM? Looking into the rabbit hole

The very near future Where we need to be heading PROFIT EARLY MAJORITY How do we get there Identify opportunities in the market and our products Take a brutally honest look at our solutions Work with strategic partners to resolve all issues. If there isn’t a partner then develop it yourself. Ignoring issues will not get us there. Be willing to spend more to establish yourself before the EARLY MAJORITY takes off. Do not choose price over quality. EVER EARLY MAJORITY PROFIT SLOPE OF ENLIGHTMENT

Consumer Tablets The good, the bad, and the OPPORTUNITY ✓ 1 2 3 4 5 6 7 Low entry cost Wide acceptance Poor battery life – compared to enterprise level products Consumer applications on the device Subject to theft Not industry hardened – Otterbox / Lifeproof ✓ How do you process credit cards?

Let me hold that for you Securing the credit card reader is the key Speed of service is impacted Why is it expensive for the merchant? #1 complaint for tablet based systems. Credit card swipe issues A 1 Often blame is placed on the POINT-OF-SALE Application 2 B Incorrect charges on customer’s statement 3 Cost of replacement for readers that fail C Additional charges for manual entry Example (assuming a 30% swipe issue) A restaurant will spend at a minimum of $3000.00 per year in additional processing fees for every million dollars processed. (1% for manual entry). 4 Damage to the tablet from readers that are not supported properly 5 Extremely expensive for the merchant

SOLUTIONS What options can we offer our customers tThere are multiple legacy POS companies now that are pushing their customers to use third party payment devices. Don’t support credit cards 1 Industry Hardened Readers tPartner with VAULT and MetSales to provide your customers with the #1 line of fixed and mobile enclosures in the market. Provide a product that will allow you to deliver a solution, reduce your ongoing support cost, and maximize your profits. Do not compete with your suppliers. WE DO NOT SELL TO END USERS. Never have, never will Integrated Enclosures Through the use of intelligent printers from EPSON, STAR, and other manufacturers a USB HID device can be used. These low cost devices are a proven solutions 3 2

VAULT currently has solutions for the following tablets: Current Solutions VAULT offers a complete line of products VAULT currently has solutions for the following tablets: Apple iPad 2,3,4, AIR, & MINI Samsung TAB2, TAB3, & TAB4 in 7” and 10” Microsoft Surface PRO/RT & Surface PRO 2 DELL Venue 11 and Venue 8 Using readers from today’s industry leaders (MAGTEK, IDTech, RoamPay, Infinite Peripherals, plus others)

Custom Solutions VAULT Design Center DESIGN PROTOTYPE PRODUCTION PHASE One of our Solidworks CAD Engineers will work with your team to design an enclosure to meet your needs. The use of the latest technologies including 3D renderings, 3D printing, and RAPID are used to expedite this process During this refinement phase the team will work to complete the product and address any opportunities that may have arisen during the design phase. Additional 3D printed models are produced based on these changes. VAULT currently has 4 production facilities and 2 powdercoating facilities. We are in the process of expanding our distribution facility into a new 40,000 sqft facility in North Carolina. We believe that this will allow us to deliver product in a shorter period of time. In 2015 we will be opening a facility on the West Coast.

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