Will Waiting to Upgrade Save You Money? Mike Borelli National Sales Manager Emily Cain Territory Manager of Texas Patriot Capital “Why upgrading your pumps for EMV now may not cost you money”

Who We Are Patriot Capital has been focusing it’s financing resources on the Petroleum and C-Store industry for almost 20 years. We’ve helped thousands of customers acquire needed equipment with our financing products. Our customers have been able to enhance their sites, acquire necessary equipment upgrades and increase their overall sales volumes and profits by providing simple and competitive financing. We finance anything needed in a C-Store: Underground Storage Tanks (UST), Coolers, Point Of Sale, Car Wash Equipment and more! For 100% of the costs, including shipping, installation, and maintenance

Virtually All Retail and Commercial Petroleum and C-Store Equipment What We Finance Fuel Dispensers Including CRIND Upgrades POS Systems LED Lighting Underground Storage Tanks (UST’s) Car Washes and Entry Systems / EMV Upgrades Canopies Image Upgrades And Graphics Packages Price Signs And Brand Signs Inside-the-store Capital Equipment – Beer Caves, Coolers, Freezers Virtually All Retail and Commercial Petroleum and C-Store Equipment

Why Upgrade? Reasons for upgrading to EMV: Over 50% of sites will be upgraded by Dec. 2018 EMV pumps have secure card processing EMV pumps reduce the risk of fuel theft and meter tampering New pumps include entertainment and promotional features. New pumps drive customers’ in-store purchases. Upgraded pumps enhance the sites image. Reasons for not upgrading to EMV: “My customers are loyal, they don’t care about being secure.” “It’s throwing money down the drain.” “It’s spending money that won’t help my business.”

What Will Card Fraud Cost You? Over 96% of the top 200 U.S. merchants are accepting EMV. In the fourth quarter of 2017, EMV credit card transactions accounted for over 60% of $$$ transactions. Consumers care more about securing their information than about being loyal to you. Crooks will shoot for easy targets; which are non-EMV sites.

Detailed EMV Timeline 2015 2014 2013 2012 2011 Aug. 2011: Visa announces US EMV timeline Apr 2013: Processor mandate to support EMV Jan. 2012: MasterCard announces US EMV June 2012: AmEx announces US EMV Oct 2016: VISA and MC change Oct 17 to Oct 20 2016 2017 2020 Oct 2015: In-store liability shift – all US retail Oct 2020: Liability shift on forecourt

Upgrade 2018 vs. 2020 Price Increases 2018 – 2020 = $6,500 Savings Interest Rate Increases = $3,500 Savings New Pump Warranty = $3,000 Savings Upgrading Now Boosts Traffic 5% Growth = $74,000 Incremental 3 Year Profit Limited Growth If You’re Last To Upgrade 2020 or Later Cost of Four-Pump Upgrade = $72,000 2020 or Later Incremental Cost = $13,415 -$85,415 2018 Cost of Four-Pump Upgrade = $70,000 2018 Total Incremental Profit = $87,000 +$17,000 Gas Pumps +4-5 % year Technicians +7-10 % year Borrowing Costs +200 BP 16% Cost Increase by 2021?

Change Creates Opportunity Pay at pump ignited C- store growth by freeing staff to serve customers EMV creates an opportunity for progressive jobbers and marketers to develop: Programs to improve the consumer experience Site tools to improve overall site operations Expand and extend supply contracts Become future ready

How We Can Help Benefits of Financing Payback Calculator 100% of the costs, including shipping, installation, and maintenance, can be included in the lease. No blanket liens or second mortgages. We can finance equipment even if you do not own the site. Leasing doesn’t tie up lines of credit. Preserve lines of credit for things that grow your business like land, more sites, fuel inventory, etc. The upfront costs are very non-restrictive, generally only two payments in advance. Lease payments are fixed, not variable. All of Patriot Capital’s lease, loan, or equipment finance payments, are fixed at today’s very attractive rates. View Online Calculator

Q&A Mike Borelli Emily Cain Patriot Capital National Sales Manager Territory Manager of Texas Patriot Capital Q&A