Transforming the way retailers and brands engage with the mobile shopper Nexen Presentation David Fernandez – Founder & CEO San Diego, CA

Company Overview Proprietary and Confidential - Copyright Netclearance Systems,Inc. In-Store Mobile Engagement Platform In-Store Mobile Engagement Platform Founded (2011) Founded (2011) Patent-pending technology Patent-pending technology Members of MMA and In-Location Alliance Members of MMA and In-Location Alliance Based in San Diego, CA Based in San Diego, CA Founded by tech-savvy team (Motorola, Qualcomm, Alcatel- Lucent, Packet Video) Founded by tech-savvy team (Motorola, Qualcomm, Alcatel- Lucent, Packet Video) Experienced management team and advisory board Experienced management team and advisory board

Mobile media impact in purchasing decisions (2012) Trend is clear - mobile channel will soon surpass TV & PC Advertising Proprietary and Confidential - Copyright Netclearance Systems,Inc.

“The holy grail for us is that a customer can walk into our store and we know who they are, probably based upon their being a loyalty program member, and recognize them through their mobile device. We can then use their mobile as the vehicle by which we communicate with them in a highly personalized way.” Mike Hogan, Chief Marketing Officer, GameStop “If you don’t have a mobile strategy in 2013, you don’t have a strategy at all.” Eric Weisberg, JWT Executive Creative Director Netclearance Systems enables you to implement your in-store mobile future today, on any platform, quickly and at low-cost. Too good to be true? Read on… Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Mobile Coupons/Ads authoring and tracking tool Mobile Coupons/Ads authoring and tracking tool Product search and recommendation Product search and recommendation Campaign management and analysis tools Campaign management and analysis tools In-store mobile ads placement In-store mobile ads placement Easy to deploy and reconfigure Easy to deploy and reconfigure Supports all major smartphones platforms Supports all major smartphones platforms Connection-less and secure for privacy Connection-less and secure for privacy Battery-operated for flexible installation Battery-operated for flexible installation Mobile SDK for easy- integration with retailer’s mobile app Mobile SDK for easy- integration with retailer’s mobile app Direct channel with customers Direct channel with customers Skinnable front-end that blends with your brand Skinnable front-end that blends with your brand Easy to integrate with existing loyalty programs Easy to integrate with existing loyalty programs Developer friendly REST interfaces. Developer friendly REST interfaces. Compatible with existing BI tools Compatible with existing BI tools Highly granular and customizable dashboards Highly granular and customizable dashboards Built with open- source for easy integration and customization Built with open- source for easy integration and customization In-Store Mobile Marketing Platform Wireless Proximity Technology White Label Service Extensive Analytics and Open Platform Proprietary and Confidential - Copyright Netclearance Systems,Inc. NETCLEARANCE MOBILE PLATFORM

No Wi-Fi or broadband infrastructure required. Installation takes less than 5 minutes Web-based console and reporting Leverages cloud- based server infrastructure Vector based graphics Vector based graphics Compressed data allows for fast downloads Compressed data allows for fast downloads Programmable interface for easy customization Programmable interface for easy customization Integrates with engagement zones for in-store location Integrates with engagement zones for in-store location Supports SMS Create, send and track Push Notifications. Send, receive and track messages. Flexible Messaging API allows easy integration with existing messaging platforms. Card-linked offers/coupons make redemption easy Card-linked offers/coupons make redemption easy Proximity based payments that are secure and fast Proximity based payments that are secure and fast Compatible with existing smartphone base (No NFC required) Compatible with existing smartphone base (No NFC required) Supports major credit cards, debit cards and gift cards. Supports major credit cards, debit cards and gift cards. Low Cost Startup & Administration Low Cost Startup & Administration Indoor Mapping Technology Mobile Messaging Platform Mobile Payment Services Proprietary and Confidential - Copyright Netclearance Systems,Inc. NETCLEARANCE MOBILE PLATFORM

How Does Retail Owner Benefit? Increase Revenue IncreaseRevenue Per Shopper Increase Store Foot Traffic Increase Shopper Loyalty Mobile Coupons A/B Product Testing Game Mechanics Mobile Marketing Mobile App Product Alerts Social Marketing Integration with eCommerce Site Store Finder Mobile Rewards Integrated Shopping List Social Ratings In-Store Product Maps >65% Conversion Rate (almost 7 out of 10 new shoppers make purchase) 2 Smartphones continue to have growing impact on store sales - $159b in Effective Loyalty Programs lift Sales 20-25% 3 Effective Loyalty Programs lift Sales 20-25% 3 1 – Deloitte Digital 2 – NPD Group 3 – SAP Study Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Platform Demo

What our prospects want Ease of integration with shopper loyalty program Ease of integration with shopper loyalty program Engages with shopper from entrance to checkout line Engages with shopper from entrance to checkout line Provides deep insights into purchase behaviors Provides deep insights into purchase behaviors White label White label Low cost of deployment and maintenance Low cost of deployment and maintenance High ROI (7~10x) High ROI (7~10x) Netclearance EngagementConversion Loyalty Relationship Proprietary and Confidential - Copyright Netclearance Systems,Inc. We can deliver it today!

Retailer’s opportunity to own the mobile media channel Impact of mobile influence in sales Increase in-store mobile conversion rates Personalization (like Amazon) Attract, serve and retain mobile shoppers Proprietary and Confidential - Copyright Netclearance Systems,Inc. Increase basket size Reduce marketing costs New revenue stream (mobile ads/coupons) Wayfinding (Indoor maps)

In-store mobile engagement platform Wireless Sensors Cloud based Cloud based Open web interface Open web interface Reports and Analytics Reports and Analytics White- label White- label Application Server Mobile App SDK Multi-protocol support Multi-protocol support Low-maintenance Low-maintenance Plug - n – Play Plug - n – Play Battery operated Battery operated Multi-platform Multi-platform White-label White-label Ease of use Ease of use Ease of integration Ease of integration Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Features Software Development Kit (SDK) to tap Netclearance’s Proximity-Sensors Supports all major mobile platforms 100% REST Server API High-availability server architecture SaaS model and licensing model (available) Mobile app events controlled by proximity 12 Proprietary and Confidential - Copyright Netclearance Systems,Inc.

13 Proximity Platform Universal Sensor Multiple Apps and Platforms One Sensor Server Programmable Actions Call a number Post a message Browse to URL SMS Offers Payment Play media And more… Proprietary and Confidential - Copyright Netclearance Systems,Inc.

14 Proximity Platform Applications Personalized Promotions Digital Signage In-Store Mobile Engagement Proprietary and Confidential - Copyright Netclearance Systems,Inc.

15 Proximity Platform Applications (O2O online to offline) Personalized Promotions In-Store Mobile Engagement Browser History Cookies Session Proximity Data Offers Clicks Online Browsing Proprietary and Confidential - Copyright Netclearance Systems,Inc.

In-store mobile marketing Mobile shoppers are the future of retail Mobile shoppers are the future of retail Brick and mortar retailers don’t know Who is in the store until checkout Brick and mortar retailers don’t know Who is in the store until checkout $658B by 2016 – US only $658B Retail mobile influence is real and growing But we are here to help you. Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Contact Us Netclearance Systems 306 N W El Norte Pkwy Suite 77, Escondido,CA P: E: W:

Backup Slides

Copyright Netclearance Systems, Inc. - Confidential Netclearance Cost per store Annual Subscription $600 Tag lease ($20/mo, 20 tags) $4,800 Mobile Ad Rev Share (1% trade spend) $26,250 Total Cost $ 31,650 Retailer revenue per store (with Netclearance) Sales increase (mobile influenced 0.2%) $79,800 Increase in mobile ad revenue (PPC) (5% trade spend) $125,000 Marketing savings (print ads reduction) $41,096 Total Benefit $ 245,896 Store ROI 7.8 Store Economics: Netclearance model scales with use Safeway (Average size and spend) CPG Trade Spend $2,500,000 Avg. sq. ft 33,000 Benefits Recurring revenue per store Recurring revenue per store Low cost of entry Low cost of entry High margins High margins

Mobile is becoming the dominant commerce media 1 Billion 1 Billion smartphones by Gartner 58% In-store product information 58% consumers want In-store product information 10x Mobile Coupons have 10x redemption rate vs. Print - MMA $689B Mobile-influenced purchases projected to grow from $159B to $689B by Deloitte Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Conversion Rate in physical stores Conversion Rate in physical stores 25-60%25-60% Conversion Rate in online stores Conversion Rate in online stores 1-3%1-3% Avg. redemption rate for paper coupons 1%1% Avg. redemption rate for mobile coupons 15-25%15-25% In-store mobile potential vs. Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Why should retailers care? 1 Deloitte Digital – 2012 Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Proximity Technologies ” inches1-2’ feet 100’ feet 200’ feet Near Field Bluetooth LE 2D Barcode & Watermarks WLAN Single User – Single Campaign Multi-User – Many Campaigns Proprietary and Confidential - Copyright Netclearance Systems,Inc. Netclearance Unified Platform

In-Store mobile location Wireless Sensors Shopper runs app while in store ABC Store Welcome Sandy Personal Offers Points: 170 Deals Now Personalized Coupons/Offers Shopping list Recommendations Check-out/Payments Social Networks Cloud Server Store Profile Shopper Profile Purchase History Preferences Store Promotions KPI A/B Testing Reports Scorecards Dashboards Customer Data Promotions Analytics Solution Mobile App SDK Mobile App SDK Retailer promotes app In-store mobile engagement platform Proprietary and Confidential - Copyright Netclearance Systems,Inc.

Engage more Boost loyalty Boost loyalty Increase purchases Increase purchases Netclearance’s mobile platform creates memorable in-store personalized, immersive, helpful and engaging experiences that increase in-store sales conversion rates, customer loyalty and average purchase value. Proprietary and Confidential - Copyright Netclearance Systems,Inc.