2010 State of the Company
Imperial Capital Security Investor ConferenceSecurity Investor Conference
December 14 2010December 14, 2010
Mace Security International IncMace Security International, Inc.
D i R fi ld CEO
Management Team background• Dennis Raefield, CEO
o 36 year security professionalo CEO of Omega Corporate Security‐$15Mo CEO of Omega Corporate Security $15Mo Pres. of Security Division of Pinkerton‐$85Mo Pres. of Honeywell Systems Division‐$110M
f f d d hi h h io CEO of VC funded high‐tech security startupo Prior Board member, Maceo CEO of Maceo CEO of Mace
• Greg Krzemien, CFOo 10 years “Big 4” Accounting firm experienceo 20 years public company experience as CFOo CPA, 12 years with Mace
G M i VP P d D l
Operating Team background• George Martinez, VP Product Development
o Director of Product Management, GEo General Manager‐ Infographics Access Controlo General Manager Infographics Access Controlo Senior Product Manager, Casi‐Rusco/GE
• Morgan Hertel, GM Mace Central Stationo 20 years CS experienceo Industry leader and speaker on advanced solutions
• Eric Vorbeck National Sales Manager• Eric Vorbeck, National Sales Managero Sales Manager, Northern Video/Tri‐Ed
• Jon Goodrich, President Mace Pepper Spray, pp p yo Founder, Mace Securityo 35 years Industry experience
A OTCQB li d bli
Mace Security International, Inc.o A OTCQB listed public company
2000 shareholders incl Institutional investors no stockholder with more than 14% stakeno stockholder with more than 14% stake ~$5M market cap/ ~$12M Tangible Net Worth
B ht bli h ll i 1994o Bought as a public shell in 1994Original strategy to buy car washes Acquired security products &Digital Marketingq y p g g 2010 Revenue >$20M
o Proxy fight changed Board in 2007o Proxy fight changed Board in 2007 3 new board members added CEO terminated in Q2‐2008New CEO in Q3‐2008
M d l bl d
Mace Security International, Inc.o Mace was a deeply troubled company
o 3 diverse business segments with no synergyo Poor quality and old technology productso Poor quality and old technology productso Multiple operating plantso Had lost money almost since its inception
i ifi h l fli lli ho Significant channel conflict, selling the same products into multiple channels
o The recession began as we changed outo The recession began as we changed out management Q3‐2008o Our core customers were the small installer‐
dealers with no sales force. Sales fell 35% due to the construction downturn.
T d M h i d h i
Mace Security International, Inc.o Today, Mace has survived the recessiono We have settled our legal issueso We are executing a strategic plan to becomeo We are executing a strategic plan to become
a security focused companyo We are now leveraging one of the strongesto We are now leveraging one of the strongest
brand names in security and protection:
o We have created a new formula for leveraging the brandleveraging the brand
Mace Security International, Inc.
The Mace Divisions:
Strategic Core:Mace Personal Defense‐30%Mace Central Station‐20%Mace Security Products‐50%
Security Focusy
Divested in 2010:Digital Media MarketingCar WashesCa as es
Mace Security International, Inc.
The Mace Strategic Plan:
In 2010: completely divest all non‐ strategic divisions and gbecome a security ‐focused manufacturer with a powerful f p fbrand name.
Status: will meet the 2010 goal
Th M St t i Pl
Mace Security International, Inc.The Mace Strategic Plan:
In 2011 become profitable and selfIn 2011: become profitable and self‐sustaining from a cash flow
ti d i f d fperspective, and raise funds for acquisitions
In 2011: release new products that l t l t tileverage our central station combined with our video and access
d tproducts
The Mace Strategic Plan:Mace Security International, Inc.
The Mace Strategic Plan:
In 2011‐2013: continue our acquisitionsIn 2011 2013: continue our acquisitionsof wholesale central stations, one redundant and others for accountredundant and others for account growth
In 2012: become a market leader in providing quality security for threeproviding quality security for three segments: Consumer, DIY , and Installing Dealers of security systems.Installing Dealers of security systems.
The Mace Divisions:Mace Security International, Inc.
The Mace Divisions:
Core:Core:
o Mace Central Stationo Mace Central Station
o Mace Security Productsy
o Mace Personal Defense (Pepper Spray)
o Our dedicated Mace Team
Mace Security InternationalSecurity Services‐Mace Central Station
Anaheim, CA
Mace Security InternationalSecurity Services‐Mace Central Station
L t d i A h i CA t t f th t f ilit•Located in Anaheim, CA: a state of the art facility
•A “wholesale” UL/ETL listed alarm monitoring centerA wholesale UL/ETL listed alarm monitoring center
•Serving independent alarm dealers throughout the USg p g
•360 Dealers with over 38,000 accounts
• Alarm, video, and access control remote monitoring
Mace Security InternationalSecurity Services‐Mace Central Station
A i d b t to Acquired by new management team
o Best performing divisiono Best performing division
o Steady growth $4M+ of RMRo Steady growth $4M+ of RMR
o Revenue growth & strong EBITDA (16%)g g ( )
o A small but powerful contributor
Mace Security Productso DIY sales growing
o In 2008‐2009 struggled with dealers saleso In 2008 2009 struggled with dealers sales
o Dealer revenue now recovering
o Profitable in Q3‐Q4
o Changed Senior Management in June
N k ti & l t i lo New marketing & sales teams in place
o Oct/Nov/Dec: best months in years/ / y
2011 New Product Introduction & ProductMace Security Products2011 New Product Introduction & Product
Roadmap
• Video Surveillance • Access Control • Intrusion Detection• Perimeter Protection
BestBest‐‐inin‐‐Class Price PerformanceClass Price Performancefor Business & Home Securityfor Business & Home Security• 2 New DVR Models• 7 New Camera Models• Product Launched Q3 10• Product Launched Q3‐10• Sales booming
17Company Proprietary &
BestBest‐‐inin‐‐Class Price PerformanceClass Price PerformanceBestBest inin Class Price PerformanceClass Price Performancefor Business & Home Securityfor Business & Home Security• 4 New Covert Camera Models• Product Launched Q3‐10
18Company Proprietary &
Best‐in‐Class Price PerformanceBest in Class Price Performancefor Professional Security• 2 New DVR Models• 5 New Camera Models• Product Launched Q3‐10• Sales excellent
MaceAlert™ SOLO Alarm SeriesDIY Home Security for Alerting & Protection
hLaunching Q4‐2010
WirelessWireless Systems
Motion
MagneticLaunch Q3‐10
20Company Proprietary & Confidential
g
New Branding & Packaging
New Branding‐ Channel Specific
New Products‐ Slow shift to IP and Wireless
Mace Security InternationalP l D fPersonal Defense
P So Pepper Sprays
o Bear Spraysp y
o Law Enforcement Sprays
Brand name division of Mace $6M in total sales @ 10% growth per yearg p y #1 Worldwide brand recognition Quality provider 10 15% EBITDA 10‐15% EBITDA
Personal DefenseMace Security InternationalPersonal Defense
D f S i lDefense Sprays International• Hot Pink:• Night Defender Pepper Gel with
built‐in LED Light• Pepper Gun with additional formulas
• Law Enforcement products• Stoppa Red non‐irritant gel,
expanding into markets where pepper spray is illegal
Law Enforcement Home ProtectionHome Protection•Expand wireless home security system with additional accessories
• Take Down Extreme Pepper Gel with Built‐in LED Light
• Take Down Pepper Gun
Personal Alarms•Multipurpose Portable Alarm
Personal DefenseMace Security International
Personal DefenseThe Mace Pepper Gun
Mace Personal Defenseo Beginning significant expansion
o Brand has not been exploited
C i t t l d fit bl tho Consistent slow and profitable growth
o With ex‐CEO arbitration settled will nowo With ex‐CEO arbitration settled, will now get maximum management attention
o Significant revenue upside potentialo Mace in every caro Mace in every nightstand
Mace Security Summaryo Linkstar sold, ending a major P&L and cash drain
o Projecting breakeven cash flow in Q2 2011o Projecting breakeven cash flow in Q2‐2011
o Projecting Profitable in Q3‐2011j g
o Last Car Washes close in Q1, raises $2.5M additional
o Sell warehouse in Q1‐2011 and lease smaller space at less operating cost raises additional $1.5M
o Retiring all debt except LOC and operating leases
Mace Security – Our Vision
Mace Security Visiono Leverage our great name with all security
protectiono Yourselfo Your familyo Your homeo Your homeo Your business
o Integrate products and RMR services to solve customer problems, not sell boxes
S lo Some examples:
Mace Security Vision• Mace Pepper Spray with GPS locator, video,
and panic button• Direct connect with the Mace CS when the
spray is armed or releasedT i d di t h f li• Two way voice and dispatch of police, picture captured of assailant
• Mace Pepper Alarm that releases spray when an intruder enters a restricted area, or byan intruder enters a restricted area, or by remote control from a Mace central station• Vaults• Remote mountain cabin
Mace Security Vision• Mace Cameras and DVR’s that report
malfunctions and loss of signal to the Central StationStation
• Mace cameras with analytics that autoMace cameras with analytics that auto connect to our remote video monitoring station only when activity occursy y
• Mace Access Control that unlocks your door using stored video images as you walk up to the door…and says “Good morning Mr. Phelps”
Mace Security International, inc. Mace has survived the recession and built a solid
management core
Mace is now a focused security company, no longer a “mini‐conglomerate”g
Mace has settled its legacy issues and moved forward
Our strategy is clear, focused, and directed towards the new trends in security
Our combined RMR + Product strategy is a winner.
Imperial CapitalImperial Capital Security Investor Conference
Thank YouContact: Ms. Sarah Din at [email protected]
Mace Security International, Inc.