Rayovac: A Review of Battery Recycling February 20, 2015 Update on North America World Rechargeable Battery Regulatory Forum (WRBRF) March 23 rd, 2015 © 2015 Call2Recycle ® All rights reserved Carl E. Smith CEO / President

© 2015 Call2Recycle ® All rights reserved North American: Battery Collection Performance 3.1% Pounds 3.1 % 3-Year Battery Collection Trends with Annual Growth Rate 3%3% 43 % 12 % 20 %

© 2015 Call2Recycle ® All rights reserved North American: Battery Collection Performance 5.5 % Pounds 3-Year Collections: USA vs. Canada with Annual Growth 43 %.3 % -6 % 20 %

© 2015 Call2Recycle ® All rights reserved 2013 and 2014 Applicable Volume in lbs

© 2015 Call2Recycle ® All rights reserved Why the Decline in Rechargeable Collections? The growth of WEEE programs (26 states now require EPR for electronic waste) keeping the batteries with the host products The growth of battery “auctions”, particularly for cobalt based lithium ion chemistries The demise of several important electronics retailers that have traditionally generated considerable batteries (e.g., Radio Shack bankruptcy, Best Buy retrenching) The growth of a couple aggressive battery brokering businesses (e.g., Battery Solutions) ?

© 2015 Call2Recycle ® All rights reserved Increased Efficiencies Continue

© 2015 Call2Recycle ® All rights reserved Vermont Update  Only US state to mandate collection of primary batteries (effective January 1, 2016)  Pricing: 2015 earnest money deposit ($2500) applied against ongoing obligation with March 1 deadline 4 th Quarter 2015 one-time start-up charge (TBD) based on share ahead of implementation Ongoing fees based on sales into the marketplace to determine base price, adjusted after first / second years based on results  Expect at least 30%+ “free-riders” based on carving out batteries in products (we’ll get them anyway) and internet sales  90%+ of the identified obligated steward sales have signed up with the Call2Recycle ® program

© 2015 Call2Recycle ® All rights reserved US Battery Legislative Activity  Connecticut −Industry supported legislation presented for a mandated all-battery product stewardship bill −Slow moving with opposition from tech, med devices, amongst others −Chair (Senator Ted Kennedy) seeks more participation in discussions to rewrite bill  California −Primary battery EPR bill introduced with “sharps” −Influential sponsor seeks to rewrite bill and has engaged industry.  Texas − Sponsored bill that won’t see the light of day

© 2015 Call2Recycle ® All rights reserved Canada Update  Call2Recycle Canada Inc. runs a nationwide all battery stewardship program even though its is not mandated by all provinces in the country  Two of maritime provinces (New Brunswick/Prince Edward Island) signed MOUs – will stay legislation and formalize ‘national’ program.  Ontario – Monopolized By a Quasi- Government Body. Cost 50% higher.  BC and Quebec exceed 30% collection rates in less than years of operation.  Environmental handling fees (visible fees) – between manufacturer and retailer (not on receipt)