Philp Industries Weekly Summary August 20th - August 26th Cycle Force Group Prepared on September 5th 2017 Private and Confidential | Philp Industries

A Data-Driven Approach ACTIVITY AMAZON ORDERS AMAZON SALES FAST TRACK AMS CHARGEBACKS CATEGORY PERFORMANCE BRAND PERFORMANCE INDIVIDUAL PRODUCT PERFORMANCE Private and Confidential | Philp Industries

Activity Summary Private and Confidential | Philp Industries

Catalog Maintenance Updates Activity # POs not accepted Partial Case Purchase Orders Missing Images Unowned ASINs Replen Codes Mismatched ASINs Missing from Cost Spreadsheet Vendor Code Missing from Cost Spreadsheet UPCs Missing from Cost Spreadsheet Model #s Missing from Cost Spreadsheet Name Mismatches UPC Mismatches Brand Name Mismatches Brand Code Mismatches Mfg Model/Catalog # Mismatches GL Mismatches Category Mismatches Subcategory Mismatches ITK Mismatches Mismatched Parent ASINs Merging Submissions Manufacturer Mismatches 3 New Klokov ASINs assigned, 15 images labeled and submitted; videos uploaded for all; updates made to all; added ASINs to variation with old ASINs 1 Buy button brought back (Trail Gator) Wald keywords updated to begin testing Added A+ content to 1 Overade ASIN Images removed from 2 Trail-Gator ASINs; 12 New/higher resolution images submitted to update these ASINs; 1 image does not meet size requirements and vendor informed Provided vendor with MSDS resources and tutorial Wrong Size Chart Images removed from 21 Scudo Jersey ASINs; New Size Chart images labeled and submittted; Images are now live Bombtrack NIS: 42 ASINs approved, 403 images reformatted into 22 zip files and submitted to Amazon; All images approved NIS email compiled for vendor Bullet points updated for 18 Viva ASINs Product description updated for 1 Steppenwolf ASIN Working with Amazon to get Hazmat label removed from a Strida product that has no hazmat components to it NIS for 1 Visibell Electric Horn/Bell edited and submitted. MSDS obtained from vendor and submitted Cost updates for M-Wave Plastic Bicycle Bottle Cage approved; inquiry made as to why we are not updating cost in CA as well No maintenance this week Private and Confidential | Philp Industries

Amazon Orders Amazon PO Dollars SKUs Ordered Confirmation Rate Fulfillment Rate Private and Confidential | Philp Industries

Amazon Sales Shipped COGS Shipped SKUs Average Sales Price Inventory Weeks of Cover Private and Confidential | Philp Industries

Fast Track Fast Track Replenishable Out of Stock Non-Replenishable Out of Stock Lost Buy Box Private and Confidential | Philp Industries

AMS Sales Spend Average Cost of Sale Conversion Rate Private and Confidential | Philp Industries

Chargebacks PO - On-Time Non-Compliance Excessive Backordered Units PO On-Time Accuracy Oversized Carton Private and Confidential | Philp Industries

Category Activity Category Shipped COGS August 20th - August 26th Change over last week 9000 Cycling - 9154 Bike Baskets $12,587.48 $863.64 9000 Cycling - 9100 Accessories $8,111.55 $-796.89 9000 Cycling - 9107 Tires $5,756.87 $1,102.37 9000 Cycling - 9050 Mountain Bikes $4,532.92 $1,299.95 9000 Cycling - 9080 Trailers $4,513.98 $381.93 9000 Cycling - 9108 Tubes $4,122.20 $-844.88 9000 Cycling - 9113 Bike Small Parts $3,308.22 $-214.43 9000 Cycling - 9312 Balance Bikes $3,238.20 $-1,733.01 9000 Cycling - 9060 Folding Bikes $2,938.99 $1,693.00 9000 Cycling - 9220 Automobile Bike Racks $2,518.88 $66.23 9000 Cycling - 9204 Drivetrain and Accessories $2,223.26 $-853.10 9000 Cycling - 9065 Electric Bicycles $1,995.99 $350.99 9000 Cycling - 9030 Hybrid Bikes $1,720.12 $1,379.17 9000 Cycling - 9208 Handlebars- Stems- and Seatposts $1,630.50 $55.88 9000 Cycling - 9106 Wheels $1,591.32 $337.67 Private and Confidential | Philp Industries

Brand Activity Brand Shipped COGS August 20th - August 26th Change over last week Wald (WALE8) $11,509.41 $-1,443.03 Nantucket Bicycle Basket Co. (NANBD) $6,031.80 $1,083.26 Ventura (VENX7) $4,022.14 $473.92 M-Wave (MWAB7) $3,801.67 $-335.42 Trail-Gator (TRAYJ) $3,762.04 $296.93 Mantis (MANVR) $3,683.45 $1,036.56 Panaracer (PANZK) $3,670.05 $86.71 Kenda (KENE8) $3,080.87 $1,043.57 Stop-A-Flat (STOXV) $2,463.50 $-643.50 Force (FORRZ) $2,192.97 Shimano (SHIAJ) $2,057.90 $250.85 Steppenwolf (STFTT) $1,995.99 Vuelta (VUELB) $1,718.31 $285.36 Kawasaki (KAWC7) $1,673.18 $-2,144.66 Greenfield (GRESX) $1,566.98 $-328.19 Private and Confidential | Philp Industries

Top Products Parent Products Individual Products Product Shipped COGS Change over last week Trail-Gator Child Bike Tow Bar (B074RLP1Y7) $3,739.04 $273.97 Nantucket Bike Basket Co. Classic Lightship Basket (B0041285Q4) $2,892.83 $766.99 Stop-A-Flat Puncture-proof, Thorn-resistant, No-flat Bicycle Tubes in 12/16... (B0127EGQZY) $2,463.50 $-643.50 Mantis Tri-Rad Folding Adult Tricycle (B01NAJ1OC8) $2,079.00 $924.00 Steppenwolf Men's Haller E1 Electric Bicycle (B017P7KI7U) $1,995.99 Fun Unicycle (B06XSMXHWP) $1,401.40 $-137.11 Wald 582 Folding Rear Bicycle Basket (B06XVZGXYH) $1,322.24 $-37.77 Bellelli Pepe Rear Mounted Baby Carrier (B0748567WM) $1,170.43 $-329.90 Klokov Olympic Weightlifting Bumper Plates (B0731YG1LC) $948.88 $-80.12 Nantucket Basket - The Lightship Oval Collection (B00D3SIHUQ) $907.60 $-22.99 Individual Products Product COGS Change Out of Stock Wald 10252 Bicycle Training Wheels (16 to 20-Inch Wheels, .75 and 1-Inch Fr... (B000C1YTCW / W10252) $2,831.60 $-519.00 0.17 % Wald 1216 Bicycle Training Wheels (12 to 16-Inch Wheels) (B000C128PM / W1216) $2,689.20 $261.45 0.13 % Trail-Gator Trailgator Bicycle Tow Bar (Red) (B000KAZUQY / 640020) $2,420.46 $1,160.22 74.74 % Force Pursuit W15 27.5 Hardtail MTB Bicycle, 15-Inch/X-Small, White (B00KYSL8Q8 / CF80015W-1) $2,192.97 15.41 % Nantucket Bike Basket Co Adult Classic Lightship Collection Stained Bicycle... (B004Y2LTKA / C/004/A) $2,143.13 $844.14 0.12 % Mantis Tri-Rad Folding Adult Tricycle, 20 inch Wheels, 16 inch Frame, Unise... (B00FXMIUPW / 67520) $2,079.00 $924.00 37.75 % Steppenwolf Men's Haller E1 Electric Bicycle, Shadow Matte, 21 in. (B014VRY0OY / SWE045-5401H-1) $1,995.99 5.72 % Ventura Universal Bicycle Carrier Rack (B001NGF6AY / 440149) $1,792.22 $65.57 0.36 % Wald 582 Rear Folding Bicycle Basket (12.75 x 7.25 x 8.5, Black) (B0012DZEBY / W582BL) $911.33 $58.54 43.83 % Trail-Gator Children's Black Trailer Tow Bar (B0011HZKI8 / 640022) $820.26 $-761.67 0.06 % Private and Confidential | Philp Industries

Increasing Products Increasing Parent Products Shipped COGS Change over last week Steppenwolf Men's Haller E1 Electric Bicycle (B017P7KI7U) $1,995.99 Mantis Tri-Rad Folding Adult Tricycle (B01NAJ1OC8) $2,079.00 $924.00 Strida Folding Bicycle, five different styles, several colors available (B06XHNCB6Z) $769.00 Nantucket Bike Basket Co. Classic Lightship Basket (B0041285Q4) $2,892.83 $766.99 Viva Legato 7 Mixte Women's City Bike, 700c Wheels, 50 or 53cm Frame, Red (B00LGZO6D0) $536.95 Viva Legato 7 City Bike with internal hub, 700c Wheels, 53 or 59 cm frame (B00LGZO3NI) $495.95 Kenda K-193 Kwest Commuter Wire Bead SRC/PRC Bike Tire (B00DU4TTE6) $902.15 $493.04 Head Mountain Bike (B06XTN7671) $670.00 $410.00 Wald 520 Rear Medium Twin Basket (13.5X6.25X11) (B06Y17RKMY) $503.39 $408.89 Lombardo Mirafiori 270M Commuting Bike, 700c Wheels, Men's Bike, Black/Whit... (B00PUDUJTY) $355.95 Increasing Individual Products Product COGS Change Out of Stock Force Pursuit W15 27.5 Hardtail MTB Bicycle, 15-Inch/X-Small, White (B00KYSL8Q8 / CF80015W-1) $2,192.97 15.41 % Steppenwolf Men's Haller E1 Electric Bicycle, Shadow Matte, 21 in. (B014VRY0OY / SWE045-5401H-1) $1,995.99 5.72 % Trail-Gator Trailgator Bicycle Tow Bar (Red) (B000KAZUQY / 640020) $2,420.46 $1,160.22 74.74 % Mantis Tri-Rad Folding Adult Tricycle, 20 inch Wheels, 16 inch Frame, Unise... (B00FXMIUPW / 67520) $2,079.00 $924.00 37.75 % Nantucket Bike Basket Co Adult Classic Lightship Collection Stained Bicycle... (B004Y2LTKA / C/004/A) $2,143.13 $844.14 0.12 % Strida EVO folding bicycle, internal 3 speed hub, folds to 45x20x9-quot-, Neon G... (B00XXJPD02 / ST1808-1-MI) $769.00 10.10 % Viva Legato 7 Mixte City Bike, 700c Wheels, 53 cm Frame, Women's Bike, Red,... (B00K8T2BZ0 / VIV-002-4B) $536.95 3.13 % Viva Legato 7 City Bike, 700c Wheels, Men's Bike, Grey, 59 cm Frame (B00K8T2C54 / VIV-002-2C) $495.95 7.98 % Kenda K-193 Kwest Commuter Wire Bead SRC/PRC Bike Tire, Black, 26-Inch x 1.... (B006GEZQX0 / KE212085) $534.99 $440.58 0.58 % Lombardo Mirafiori 270M Commuting Bike, 700c Wheels, Men's Bike, Black/Whit... (B00NYR2TIW / TL28270U.N-17) $355.95 6.33 % Private and Confidential | Philp Industries

Decreasing Products Decreasing Parent Products Shipped COGS Change over last week Hollandia Evado Electric City Commuter Bicycle (B01L8X7X48) $0.00 $-1,645.00 Kawasaki Sumo 4.0 Fat Tire Bicycle (B01MSIK659) $385.00 $-770.00 Stop-A-Flat Puncture-proof, Thorn-resistant, No-flat Bicycle Tubes in 12/16... (B0127EGQZY) $2,463.50 $-643.50 ByK E-350 Kid's Bike, 18 inch wheels, 8.5 inch frame, for Boys and Girls, f... (B01F26XMEC) $825.00 $-495.00 Wald 157 Giant Delivery Basket (B00D3SHH0C) $243.43 $-466.42 KMC X10SL 10-Speed Chain (B00PUCQXWW) $-446.90 Rennrad Convertible 2 in 1 Balance/Pedal Bike (B0127BF1GM) $-418.00 Overade Plixi Foldable Bicycle Helmet (S/M 54-58 cm) (B01MQ5L85J) $708.93 $-393.85 Kawasaki K26 Hardtail Mountain Bike (B01MSIK3T5) $-378.00 Klokov Olympic Weightlifting Barbell (B01MTCGP24) $-350.00 Decreasing Individual Products Product COGS Change Out of Stock Hollandia Evado Electric City Commuter Bicycle, 3-Speed, 18-quot- Women's Frame,... (B01L6ULODO / HL12B-18) $0.00 $-840.00 11.75 % Hollandia Evado Electric City Commuter Bicycle 7-Speed, 18-quot- Women's Frame, ... (B01L6UL7AO / HL13A-18) $-805.00 39.95 % Kawasaki Sumo Fat Tire Bike, 26 x 4 inch Wheels, 18.5 inch Frame, Unisex (B00LUFF6PI / KA2606-1-MT) $385.00 $-770.00 0.06 % Wald 742 Training Wheels (16-26-Inch) (B00079WKSO / W742) $689.54 $-764.49 0.23 % Trail-Gator Children's Black Trailer Tow Bar (B0011HZKI8 / 640022) $820.26 $-761.67 Klokov 20 kg Olympic Weightlifting Bumper Plate (Single) (B072KLXLVJ / 0102-PASM-2005) $-663.00 31.35 % Stop-A-Flat 1.75 Tube, Yellow, 16-Inch (B00S0N8WCM / 820000001) $585.00 $-598.00 1.37 % Wald 10252 Bicycle Training Wheels (16 to 20-Inch Wheels, .75 and 1-Inch Fr... (B000C1YTCW / W10252) $2,831.60 $-519.00 0.17 % ByK E-350 Kid's Bike, 18 inch Wheels, 8.5 inch Frame, Girl's Bike, Pink (B00Y0PO4Y4 / BY1803-1-JV) $495.00 $-495.00 0.15 % Kawasaki Sumo Fat Tire Bike, 26x4 inch wheels, Gray/Green (B01N6NYHZC / KA02A-18) $-470.00 0.00 % Private and Confidential | Philp Industries

Appendix Private and Confidential | Philp Industries

Services Review Using a Data-Driven Strategy Catalog Data Quality Compare Amazon data sources and purchase orders to identify and set up missing catalog items Continuously compare replenishment codes to all available data sources to maintain fidelity Create new listings for missing items and set up new products in advance of line changes Scrape Amazon content to detect and correct changes in variations or suppressed products Detect and consolidate duplicate listings Forecasting Provide digestible format of Amazon forecasts and supplementary planning recommendations Analyze historical recommendations for accuracy and improve forward forecast Operations Monitor fulfillment to proactively spot data issues Update catalog data to ease fulfillment problems Educate your team on fulfillment practices to improve fulfillment rates International Expansion: Sell on Amazon Globally Promotions/Marketing Update Amazon content to improve search relevance and conversion to sale Execute comprehensive marketing strategy across Amazon promotional tools “Own” critical keywords in search results Add premium content to qualified listings Monitor and update targeting, balance of promotions to maximize ROI Profitability Negotiate with Amazon on COOP terms Improve Amazon pricing strategy over time Analyze metrics to find opportunities for margin improvement or increase sales volume through margin reduction Monitoring Continuously compare Amazon data to consolidated vendor “Reference Data” Correct data issues on a weekly basis Analyze key metrics to provide high-level feedback Flexibility: What does your company need? Private and Confidential | Philp Industries

Contacts Dan Philp Sage King Managing Partner dan@philpindustries.com 206-300-2141 Sage King Vendor Support sage@philpindustries.com Private and Confidential | Philp Industries