CONFIDENTIAL © 2 0 1 6 T H E A T R O . A L L R I G H T S R E S E R V E D

Patrick Fitzgerald – EVP Theatro May 2016

Tomorrow’s Technology Empowered Employee

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Today’s Shopper More Advanced Then Ever

Technology Advanced

Personalization

Experience

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Store Technology Over the Decades

1970s 1980s 1990s 2000s Today Electronic cash registers, computers systems for inventory control

Bar codes for scanning data, networked computers in stores

Internet enables e-commerce and global data exchange with supply chain

Merging of online and offline shopping, RFID for asset tracking

Smart Phones & Tablets for Store Managers

1937 2-way radio invented

1911 Public address system invented

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But…..Why such low penetration for use by hourly workers?

• Looking down at a screen creates a poor customer experience

• Productivity is lost when distracted and holding a device in the hand

Tablets & Smart Phones for Everyone!

Primary Mobile Device:

Smartphone

Smartphone

Professional Hourly Worker

100

Smartphone adoption in the Enterprise

5

Primary Mobile Device:

Two-Way Radio

Smartphone use

by hourly workers

while at work is

below 5%1

1 RIS Mobile Guide & Theatro Survey

Even the Playing Field

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…and they hate using them!

• Broadcasts everything said to everyone

• Massive amounts of distracting ear noise

• No point-to-point or private conversations

• No ability to reach a specific group of teammates

38 Million Hourly Workers Use Walkie-Talkies to Communicate

Even at the Apple Store

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• Strategy Execution – Communicates Daily Store Plan & Critical Operating Information

▪ Morning Huddle

▪ Team Meetings

• Product Knowledge – On-Going Training and Knowledge sharing

▪ HQ to Associate Training

▪ In the Moment Training

• In The Moment Customer Service Execution

▪ Finding the right person to help make the sale

▪ Buy Online, Pick-up in Store

• In The Moment Store Operations Execution

▪ Task management

▪ Inventory management

Communication Addresses Critical Store Operation Challenges

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7

Consistent Execution

requires

Consistent Communication

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Crossroads of Key Technology Trends

Our wearables enable an hourly worker to remain hands-free while

using a mobile device

Voice UI eliminates the need to use hands and distractions from

looking down at a screen

A per user SaaS offering eliminates the significant capital outlay of

investing in mobile devices Mobile connectivity to IT resources has been proven to

greatly improve employee productivity

Connecting every employee to everything enables retailers to create

new personalized shopping experiences

IoT

Wearables

Mobile

Voice UI

SaaS

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A voice-controlled wearable computer connecting them to each other, to management and to critical IT systems

Voice Controlled Wearable Computers

Small as a matchbook

2 ¼” H x 1 ¾” W Lightweight (1 ½ oz) Long battery life (8hr)

• An intuitive “conversational” user interface

• Optimized for unconditioned Wi-Fi network

• Uses a discreet ear-bud for the ear

• Integrated mobile IoT beacons & sensors

Theatro is a Replacement that Employees Love!

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10

Demonstration Voice Controlled Wearable Computers

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Employee Performance Analytics Transparency and Deeper Insights

Customer Wait Time – Measure register back-up, carry-out, BOPIS and other customer service response times.

On the Floor Team Leadership– Understand the in-store social network and identify go to team members

Management Engagement & Effectiveness - SOP Measurement & Insights

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Voice Controlled Wearables Show an Immediate Positive Impact!

Ear Chatter Distractions

Before Theatro

After 1 Week with Theatro

Total Conversations

Cust Wait Time (Register Back up)

Unanswered Help Requests

Team Interaction Time

68 sec’ss

169

83%

110 min

37%

32 sec’s

558

1%

268 min

0%

29 sec’s

523

5%

102 min

0%

183 sec’s

228

82%

65 min

24%

Increased teamwork

Increased customer focus

Group selling and increased revenue

Reduced customer abandonment

Quicker customer response times

Before Theatro

After 1 Week with Theatro

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THANK YOU