Philp Industries Weekly Summary September 3rd - September 9th Cycle Force Group (CA) Prepared on September 19th 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 NEW ITEM SET-UPS IN THE SHOOT: Final Migration of Active US ASINs to Canada (562 SKUs) Completed: 517 ASINs approved MSRPs correctly updated following initial submission with incorrect prices Cost for 2 updated following initial submission with incorrect costs. Outstanding: 2 ASINs rejected (awaiting response from Amazon as to reason) 38 SKUs with duplicate SKUs to already existent ASINs needing Vendor SKU/UPC verification from CFG team (Jenna working on) Awaiting MSDS report from CFG for remaining ASINs showing in US only. Klokov (3 SKUs) - Awaiting to hear if these need to be re-listed in CA (were re-listed in US) Visibell (1 SKU) - Awaiting to hear if these need to be listed in CA PROJECTS COMPLETED THIS WEEK: 6 Variations successfully created Product description updated for Tour de France product Wald keyword test: test keywords pulled for 'Rear Bike Basket', 'Front Bike Basket', 'Rear Bike Rack', 'Bike Training Wheels'. Keywords with 1K-100K hits submitted for 12 ASINs being tested Product description and variation updates made to KHE Affix Mid BB Bushing Cup Set for 19mm Bullet Point updated for 6 Viva ASINs Submitted Cost update for M-Wave Plastic Bicycle Bottle Cage, Approved ONGOING PROJECTS (AWAITING AMAZON): 1 Variation pending with tickets continuing to be filed Inquiry made about whether any ASINs are not in Innetwork fulfillment ONGOING PROJECTS (AWAITING DAN): Strida ASIN with conflicting title and image sent to vendor to clarify. Vendor reports image and title are correct, however Amazon is disputing this and has placed selling restriction on this product (ASIN:B01HIY7O7C). ONGOING PROJECTS (AWAITING CFG): List of 6 products with wrong UPCs in Amazon sent to Vendor on 8/30 to verify UPCs 74 ASINs with duplicate vendor SKUs sent to CFG to clarify on 8/16 Requested UPC clarification for ASIN B001EVAYFK on 8/3 Do MSRP updates need to be made to Stitch ASINs? 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 Missing Product Detail 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 Non-Compliant Barcode Private and Confidential | Philp Industries

Category Activity Category Shipped COGS September 3rd - September 9th Change over last week 9000 Cycling - 9103 Bike Cleaners and Lubes $1,059.82 $-243.83 9000 Cycling - 9020 Cruiser Bikes $689.45 $-23.00 9000 Cycling - 9050 Mountain Bikes $660.06 $-107.73 9000 Cycling - 9070 Other Bikes $541.91 $-387.74 9000 Cycling - 9080 Trailers $411.77 $70.99 9000 Cycling - 9109 Fenders $382.98 $57.85 9000 Cycling - 9060 Folding Bikes $375.17 9000 Cycling - 9154 Bike Baskets $367.94 $-134.95 1000 Exercise -amp- Fitness - 1180 Weights $263.26 $0.00 9500 Street- Surf -amp- Snow - 9760 BMX - Bikes $234.52 9000 Cycling - 9100 Accessories $205.57 $-90.38 9000 Cycling - 9312 Balance Bikes $201.94 $-136.74 9000 Cycling - 9067 Unicycles $141.77 $71.63 9000 Cycling - 9085 Child Seats $95.62 9000 Cycling - 9117 Chest -amp- Body Protective Gear $76.49 $8.15 Private and Confidential | Philp Industries

Brand Activity Brand Shipped COGS September 3rd - September 9th Change over last week Armor All (ARMQP) $1,059.82 $-243.83 Mantis (MANTV) $917.08 $-75.37 Polaris (POLHU) $566.26 $229.65 CFG (CFGA2) $497.86 $-214.59 Mighty (MIGI8) $364.44 $21.67 Nantucket Bicycle Basket (NANT2) $320.29 $-174.74 M-Wave (MWAV2) $303.67 $165.19 Klokov (KLOK2) $263.26 $0.00 Trail-Gator (TRAUP) $251.37 $16.27 KHE Bikes (KHEB2) $234.52 $-10.75 Ventura (VENUP) $232.30 $-20.15 Victory (VICVO) $191.59 Cycle Force (CYCM3) $171.32 $16.71 Fun (FUNA3) $141.77 $71.63 Quadrabyke (QUAET) $96.57 $-94.83 Private and Confidential | Philp Industries

Top Products Parent Products Individual Products Product Shipped COGS Change over last week Armor All Bike Care Products (B06XY6BH1V) $1,059.82 $-243.83 Polaris Ranger B.0 24 Full Suspension Bicycle (B00NXGSF46) $504.78 $168.17 Cycle Force Women's Stylish Cruiser, 26 x 15.5 inch/One Size (B072HF2TFR) $269.43 $0.01 Klokov Olympic Weightlifting Bumper Plates (B072XR6LLJ) $263.26 $0.00 Cycle Force Women's Vintage Cruiser, 26x15.5 inch/One Size (B0725286SF) $228.43 $-116.67 Trail-Gator Trailgator Bicycle Tow Bar (B06Y65D18C) $212.43 $1.10 Victory Touring 126L Cruiser Bicycle (B00NXGSPKK) $191.59 Fun Unicycle (B06XTT5Q25) $141.77 $71.63 Bellelli Bicycle Baby Carrier, Pepe for rear, Rabbit Two for front (B06XPX4SGY) $95.62 Kenda K-193 Kwest Commuter Wire Bead SRC/PRC Bike Tire (B00H2AJZTI) $52.68 $-12.52 Individual Products Product COGS Change Out of Stock Armor All Bike All-Purpose Lubricant (B00YC5B9BI / AA05) $948.73 $-238.95 0.00 % Mantis X20 Drift Tricycle, 20 inch front wheel, drift rear Wheels, for Boys... (B00MFTCQSS / MA2006-1-JV) $541.91 $-387.74 100.00 % Mantis Tri-Rad 24 Burgundy Adult Folding Tricycle (B06XJ43HZV / MA01A-16) $375.17 Mighty Flexi Fender Set with Dynamo Connection for 700C and Up, Black (B00KVCEGT8 / 386105) $364.44 $39.31 0.83 % Polaris Ranger Full Suspension Mountain Bike, 26 inch Wheels, 18 inch Frame... (B00LGMY12Y / PO2604-1-MT) $336.61 $0.00 1.12 % Klokov 10kg Olympic Weightlifting Bumper Plates (Pair) (B071KDCMSB / 0102-PASM-1005) $263.26 Nantucket Bike Basket Co Kid's Oval Lightship Basket, Natural (B0040PTA4S / C/001/C) $240.24 $-38.07 KHE Bikes Park One Freestyle BMX Bicycles, Black (B00JHHX8RY / KH2002-1-BX) $234.52 CFG Women's Vintage Cruiser, 26-quot-, Red (B071CK3F5N / BKW-9902A) $228.43 $-116.67 Trail-Gator Trailgator Bicycle Tow Bar (Red) (B000KAZUQY / 640020) $212.43 $70.81 Private and Confidential | Philp Industries

Increasing Products Increasing Parent Products Shipped COGS Change over last week Victory Touring 126L Cruiser Bicycle (B00NXGSPKK) $191.59 Polaris Ranger B.0 24 Full Suspension Bicycle (B00NXGSF46) $504.78 $168.17 Fun Unicycle (B06XTT5Q25) $141.77 $71.63 Piranha Classic Spoke Trike (B00ESYRP8O) $43.89 Exustar E-SB706 High Top Tail Shoe (B00ZRTDZ74) $35.48 M-Wave Amsterdam Single Side Bag and Roller Bag (B06XJH11P1) $34.86 Wald 3133 Q-R Bolt-On Front Handlebar Bike Basket (B06WVCJQ8P) $21.43 Zoom Alloy Seat Post (B00H2AI95Y) $15.62 Greenfield Rear Stay Mount Kickstand (B01N095U3M) $13.03 Ventura Adjustable Rear Stay Kickstand (B074K33RJ8) $12.49 Increasing Individual Products Product COGS Change Out of Stock Mantis Tri-Rad 24 Burgundy Adult Folding Tricycle (B06XJ43HZV / MA01A-16) $375.17 100.00 % Victory Touring 126M Cruiser Bike, 26 inch Wheels, 19 inch Frame, Men's Bik... (B00LGMXU3U / VI2602-1-CR) $191.59 75.91 % M-Wave Shop -amp- Ride Luggage Trailer and Cart, Black/Grey (B00ZHYDTRA / 640099) $189.32 0.00 % Polaris Ranger Full Suspension Mountain Bike, 24 inch Wheels, 17 inch Frame... (B00LGMY174 / PO2401-1-MT) $168.17 38.25 % Cycle Force Dual Suspension Mountain Bike, 20 inch Wheels, 15 inch Frame, M... (B00Q8KOM9G / 10020W) $155.28 CFG Women's Stylish Cruiser, 26-quot-, White (B06ZZM1YVX / BKW-9906B) $134.72 32.49 % Fun Chrome 20-quot- Unicycle with Alloy Rim (B001NGD5HK / 659321) $71.63 Trail-Gator Trailgator Bicycle Tow Bar (Red) (B000KAZUQY / 640020) $212.43 $70.81 Polaris Dragon Tricycle with Steel Frame and Suspension Fork, 10 inch Wheel... (B0011RATI4 / 61108) $61.48 Nantucket Bike Basket Co Adult Classic Tuckernuck Collection Bicycle Basket (B004Y2LSAQ / B/003/A) $45.36 Private and Confidential | Philp Industries

Decreasing Products Decreasing Parent Products Shipped COGS Change over last week Armor All Bike Care Products (B06XY6BH1V) $1,059.82 $-243.83 Cycle Force Women's Vintage Cruiser, 26x15.5 inch/One Size (B0725286SF) $228.43 $-116.67 Stop-A-Flat Puncture-proof, Thorn-resistant, No-flat Bicycle Tubes in 12/16... (B073R1MC2C) $43.41 $-43.41 Nantucket Portland Rear Pannier Bag (B00BUMAV8S) $0.00 $-42.80 Mr. Tuffy Bicycle Tire Liner (B0754G5NKV) $-40.79 Exustar E-SB740 BMX Shoe (B00ZRTEUAU) $34.33 $-34.01 Nantucket Bike Basket Company Gull Collection (Child-Size Oval/ 10.5 x 8 x ... (B0068LVAZ4) $-29.35 Safeman Multifunction Quick Lock (B0728FTSZZ) $-22.93 Ventura Double-Leg Side Kickstand (B074HPXXV8) $-18.96 CFG Presta Valve Bicycle Inner Tubes (B00H2AGGV8) $-12.80 Decreasing Individual Products Product COGS Change Out of Stock Kawasaki Mihari Fat Tire Bike, aluminum, 26x4 inch wheels, Blue/Yellow (B01N5MKP0D / KA01A-18) $0.00 $-431.18 100.00 % Mantis X20 Drift Tricycle, 20 inch front wheel, drift rear Wheels, for Boys... (B00MFTCQSS / MA2006-1-JV) $541.91 $-387.74 Hollandia M1 Land Cruiser Bike, 26 inch Wheels, 18 inch Frame, Men's Bike, ... (B004XYZWLG / HOLL-3) $-266.22 0.00 % Armor All Bike All-Purpose Lubricant (B00YC5B9BI / AA05) $948.73 $-238.95 CFG Women's Stylish Cruiser, 26-quot-, Pink (B06ZXW47NT / BKW-9906C) $134.71 $-134.71 Cycle Force C12 Single Child 2-In-1 Bicycle Trailer -amp- Jogger (B07194MHQF / CF-BT514) $-129.45 CFG Women's Vintage Cruiser, 26-quot-, Red (B071CK3F5N / BKW-9902A) $228.43 $-116.67 CFG Women's Tough Cruiser, 26-quot-, Pink (B06ZZBGRVX / BKW-9912A) $-97.93 Quadrabyke Kiss Kid's Cycle, 10 inch Wheels, 2, 3 or 4-wheel design, Girl's... (B00SSWDRFW / KT095-01) $96.57 $-94.83 91.77 % Kawasaki Monocoque Kid's Bike, 16 inch Wheels, 11 inch Frame, Girl's Bike, ... (B001UNLPZ0 / 73516) $-84.48 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