Eric WickbergDirector – Display Solutions Sales

2009 1

OVERVIEW

• Custom Solutions Process• Video Conferencing / Telepresence• Examples of OEM Projects• Display / Projector Manufacturer

Relationships

2009 2

Custom designed product and service solutions

Design Process for Custom or Modified Product:

• Project Review• Proposal/Project Timetable• Design & Collaboration• Design Review• Prototype Delivery / Modify Design• First Article Approval Process• Packaging / Staging / Documentation • Training / Marketing • Production• Forecasting / Managed Inventory• Quarterly Business Reviews (monitor success)

Chief Custom Capabilities

Custom Solutions Process• Project Initiation Form (PIF)

– Basics to start a project and define project scope• Overall needs/description of the project• Timing• Budget, costs, projected revenue and margin

– Helps with project prioritization and using Chief resources wisely

– Projects with clearly defined budget/margin/sales expectations typically take precedence over “speculative/strategic projects”

• A project is “active” when resources are allocated to the project with defined milestones and deliverable

2009 4

Custom Solutions Process

2009 5

2Submit ECO

to ECA

Engineering Change

1Create ECO

END

2Review

Submitted ECOs

YES

Incorrect or missing

data?

NO

3 Load Data

into ERP

Go to 4.5

ECO Submitted END

1ECA

Receives ECO

4Determine Required

Reviewers and Send for Review

1Users Receive

E-Mail Notification

Incorrect or Missing

Data?

YES

ECO Sent for Review

3Complete Review

2Process

WorkENDNO

Go to 4.5

2Review ECO

for Completeness

Complete?

YES

NO

ECO Workflow Complete

Go to 4.5

3Review

Each Item

1Monitor

ECOs for Workflow Complete

4Make Item

Effective

END

6Notify

Affected Parties

7Monitor Future

EffectiveDates

5File ECO

Even “easy” projects touch many, many people...

Video Conferencing Market• Market Overview

– Tandberg and Polycom >70% combined market share

– Hewlett-Packard and Cisco have remaining share, targeted at high-end videoconferencing systems

– Global videoconferencing systems and services market estimated at $4.2B in 2012 up from $1.6B in 2007,

• CHIEF is the leader in video-conferencing mounting solutions! – Established formal relationships with Cisco, Tandberg, and

Polycom; and developing HP relationship.

– Fusion mount and accessories provide a superior solution

Source: Business Week

Video Conferencing& Telepresence

CHIEF Product Solutions for Tandberg Video Conferencing Equipment

Standard CHIEF sku’s sold via PRO AV Dealers• Tandberg Set Top Box (integrated camera/codec)• Tandberg Edge (HD camera + codec)• Tandberg Codec’s

• Co-Branded Website ……. Launching soon! www.tandberg.chiefmfg.com

Video Conferencing& Telepresence

New Fusion Wall Mount “Kits”• Single Screen Solution

• Dual Screen Solution

• Triple Screen Solution

• Packaged with Camera Shelf, Extensions, and Shelves

• Sold via Polycom as Accessories

Articulating Arm Solution• Custom PNR with codec holder/camera accessory

-- MSP-POL2

CHIEF OEM Solutions for

Cisco TelePresence

• Custom solutions for freestanding, wall, table mounts

• Executive solutions, multi purpose conference rooms...expanding to entry level solutions.

• First year of production will generate more than $1M in revenue

• Work with the OEM, contract manufacture, and global logistics m

• Highly involved from design through delivery

• Program success and corporate involvement is driving opportunities in other divisions with standard products

Professional/Commercial Retail

- Overview- Direct Sales via SONY Electronics USA- Drop Ship and Stocking Business

- Relationship Management-Direct Interface with SONY Senior Product Management & Marketing Teams (CA & NJ)- Regional Sales Reps (by Territory)- Primary Business coming from Hospitality Projects- Custom Product Development on Request

- Product Assortment- 15 MSP Part #’s active

-Standard Chief “U” product but includes Sony “Universal” interface instead of MSBU/PSBU.

- Custom Wall Mount for SONY 65” TV – Only Mount available for this display due to weight.- Compatibility/Parts/Resources available at www.sony.chiefmfg.com

- Overview- Direct Sales via SONY Retail Consumer- 56 Retail Stores (sony style)- 8 Outlet Stores- 3 Family Center Stores- Online (sonystyle.com)

-Relationship Management-Direct Interface with Consumer Direct Business Manager, Merchandising Team, and Online Marketing Team.- Primary Business coming from Consumer Sales via Sony Retail stores/online.

- Product Assortment- Chief “Professional” Products (MTRU)- iC by Chief Products- Sanus Mounts- Sanus Furniture

Display Manufacturers

2009 11

• NEC

Display Manufacturers

2009 12

Display Manufacturer

OEM/Sell/Recommend Partner

% Share

ChiefShare

Account Manager Notes

SONY Sell/Recommend CHIEF 17% 75%+ EK Retail, on-line, and Professional business won in 2008.

Samsung Recommend Peerless/ CHIEF 23% 25% EKHospitality / D. Signage business won via Pro AV channel. Hospitality – Hotel Solutions. Long standing strategy of not offering mounts unless “by” Samsung.

LG Recommend Peerless/CHIEF 10 % 0% PR Continue to pursue Hospitality & Commercial Rep relationships

Sharp OEM Peerless 11 % 0% EK Peerless commission arrangement – similar to LG

Philips Recommend Peerless 8% 0% PR Peerless configurator...

VIZIO OEM 4% 0% EKPrice Conscious Solutions … are they an ideal candidate? Remains of interest due to significant success in 2008 . PDP continues to gain momentum.

NEC OEMSell/Recommend Chief/Peerless - 50% PR NEC OEM solution 2x2.

KFC/Zales – Menu Board/Video Wall Solutions

Panasonic Sell/Recommend Chief/Peerless - 25% DA Solutions group – Edu., EntertainmentHospitality – refer business.

Sunbrite Sell/Recommend Chief - 100% PR Limited 2009 sales depleting inventory

Display Manufacturers

2009 13

Projector Manufacturer

OEM/Sell/ Recommend Partnership

% Share

Account Manager Notes

Epson OEM Peerless/ Premier 21% EK Short throw opportunity...

NEC OEM Peerless 6% PR $45 Peerless projector

Optoma Sell/OEM Bering / CHIEF/Peerless 8% EK Met at InfoComm. OEM pending. Peerless OEM for

short throw. $39 projector.

Sanyo OEM Sanyo / CHIEF 6.2% EK Current Bid out for OEM Business - FP Bundles Created

BenQ Recommend Peerless/CHIEF 6% EK Met at InfoComm. OEM pending

Recommend Peerless 5% EK Wall

In-Focus OEM/Sell Peerless 4% EK Several Conversations regarding OEM partnership …. Price driven!

Sony (Professional) Sell/Recommend CHIEF 7% EK RPA Recommended/OEM Version Sold

Panasonic Recommend CHIEF/Other? 4% DA Continue to support integration projects

NEC

• Custom NEC 2x2 Tile Matrix for the NEC X461UN Display.

• NEC Part Number: WM-46UN-2x2• Cost effective, fast install, product

specific design• Product is four MSR mounts