1. March 1, 2016 Key Success Factors for Optimizing Value Recovery in the eMaterial Market Michael Blumberg, Blumberg Advisory Group Joe Morrow, Belmont Trading Company

2. © 2016 Belmont Trading Co., Inc. All rights reserved. Agenda The eMaterial Market and Challenges Criteria for Selecting an eMaterial Management Partner The Integrated Value Recovery Partner Integrated Value Recovery Case Studies Belmont Trading Company Overview Blumberg Advisory Group Overview 2

3. THE EMATERIAL MARKET AND CHALLENGES

4. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial vs eWaste 4 eWaste Generally implies material that is: Beyond Economic Repair (BER) or End Of Life (EOL) Destined for lower- value recycling/metals recovery eMaterial Any electronic product that is transitioning from one use to the next, such as: New in box equipment that an OEM never sold as new Resalable used equipment even if it requires repair or refurbishment to make it suitable for resale Material generally referred to as eWaste: BER or EOL material that cannot be used again due to obsolescence or damage. In this presentation we use the most applicable term given the context of the topic we are discussing.

5. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial Value Recovery Drivers 5 Maximizing Economic Value Pursuing Sustainability Goals Complying With Regulations Protecting Private Data

6. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: 2014 6 Source: http://i.unu.edu/media/ias.un u.edu-en/news/7916/Global-E- waste-Monitor-2014-small.pdf

7. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: Trends 7 Total CAGR = 5.0% Per Capita CAGR = 3.7% Source: http://i.unu.edu/media/ias.un u.edu-en/news/7916/Global-E- waste-Monitor-2014-small.pdf

8. © 2016 Belmont Trading Co., Inc. All rights reserved. The Growing eWaste Problem: The Impact We Can Have 8 Source: Shegerian, John, Triple Pundit, August 21, 2015 Total value per 100 cell phones: $192.51

9. © 2016 Belmont Trading Co., Inc. All rights reserved. eMaterial Reuse & Recycling Options 9 Lower Value Recovery Higher Value Recovery Scrapping & Recycling Component Harvest & Resale Remarketing Whole Units Striving for higher value recovery options helps us achieve economic, sustainability, and regulatory goals

10. © 2016 Belmont Trading Co., Inc. All rights reserved. Global eMaterial Challenges 10 North AmericaLatin AmericaEuropeAsiaAfrica Canada: 7 provinces have recycling systems in place National-level eWaste export controls US: 25 states have (differing) laws on eWaste and recycling Limited national regulation Formal eWaste regulation in Costa Rica, Colombia, Peru, Brazil, Mexico Robust private- sector self- regulation, e.g. by MNOs who put in place take-back programs WEEE directive Local laws like PAS 141 in UK RoHS directive Battery directive Japan only country with formal laws Taiwan & S. Korea have well developed systems in place China has national regulation on imports and licensing India has no national law but some state laws Little government action to speak of South Africa is building eWaste recycling infrastructure Countries with regulations: 52 Countries without regulations: 153

11. SELECTING AN EMATERIAL MANAGEMENT PARTNER

12. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria for eMaterial Management Service Providers 12 eMaterial Manager Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities These are the critical criteria to examine when evaluating the capabilities of any eMaterial management partner

13. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Geographic Footprint and Local Expertise 13 Value Recovery Goal How Geographic Footprint and Local Expertise Helps Achieve It Maximize Economic Value Diversity of resale markets maximizes value-in-use for materials Maintains current knowledge of constantly changing local regulatory environment and demand trends Pursue Sustainability Goals Deep knowledge of local markets allows greater transparency into the material’s second life Comply with Regulations Decreased risk of violating local regulations What Is It? Ability to deal with the global business challenges and their implications through: Knowledge of local regulations Knowledge of local markets & demand patterns Understanding of trade requirements & relationships between countries Local market presence

14. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Vertical Market and Material Diversity 14 Value Recovery Goal How Vertical Market and Material Diversity Helps Achieve It Maximize Economic Value Single point of contact for all eMaterial value recovery needs Potential to cross sell components across product segments Knowledge transfer between verticals What Is It? Breadth of vertical markets and material processing capability, may include: Mobile devices Computing equipment Telecom equipment Consumer electronics Batteries Wearables Network Connectivity

15. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Breadth of Services Offered 15 Value Recovery Goal How Breadth of Services Helps Achieve It Maximize Economic Value One-stop shop for all processing services you may need Savvy partners specialize in services they are best positioned to provide and outsource others Pursue Sustainability Goals The fuller the range of services provided, the more options for avoiding less sustainable practices (e.g. landfill disposal) Protect Private Data Secure, certified data erasure/ device destruction is one service your partner should perform in- house, with a strong track record of avoiding security breaches What Is It? The breadth of services a partner can perform on a given device, such as: Triage, sorting and grading Data wipe/destruction Repair/refurbishment Component harvest Remarketing whole units Remarketing components Recovering precious and other metals Recovering other materials

16. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Logistics and Processing Capabilities 16 Value Recovery Goal How Logistics and Processing Capabilities Help Achieve It Maximize Economic Value Lean, efficient, standardized logistics & processes reduce operating costs creating more value Pursue Sustainability Goals Tracking of process metrics support demonstrates progress toward sustainability goals Comply with Regulations Standardized, documented processes allow clear demonstration of compliance Protect Private Data Efficient, mature, standardized QA processes reduce the risk of incomplete data wiping What Is It? Maturity & sophistication of logistics & processing capabilities: Productivity vs. other vendors Logistics expertise and partnerships in locations served Quality assurance processes and certifications Process and technology standardization across facilities Metrics and SLAs measured and supported

17. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Remarketing and Distribution Capabilities 17 Value Recovery Goal How Remarketing and Distribution Helps Achieve It Maximize Economic Value Find both the highest price and the quickest payment for your material—then optimize the two to maximize value Pursue Sustainability Goals The more remarketing options a partner has access to, the more capable they are of finding solutions aligned with customers’ goals Comply with Regulations The more country and channel options a partner has access to, the more capable they are of ensuring & demonstrating regulatory compliance What Is It? Breadth of market reach and depth of expertise in remarketing and distribution: Insight & knowledge into every viable markets Direct presence in these markets Access to multiple channels and potential customers Proven track record of optimizing inventory turnover

18. © 2016 Belmont Trading Co., Inc. All rights reserved. Evaluation Criteria: Analytics and Reporting Capabilities 18 Value Recovery Goal How Analytics and Reporting Helps Achieve It Maximize Economic Value Modeling & scenario planning to examine several variables to ensure processing and remarketing decisions are yielding maximal value in minimal time Pursue Sustainability Goals Use data to demonstrate clearly where you are in relation to your goals Comply with Regulations Generate reports to demonstrate regulatory compliance What Is It? Ability to analyze and report against KPIs relevant to recovering value from eMaterial, such as: The frequency & thoroughness of reporting on recovery rates, revenue sharing schemes, and compliance levels Analytics to support procurement, processing, remarketing and sales decisions

19. THE INTEGRATED VALUE RECOVERY PARTNER

20. © 2016 Belmont Trading Co., Inc. All rights reserved. The Integrated Value Recovery Partner 20 Integrated Value Recovery Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Global Multi-Vertical Broad Services High Process Maturity Broad Reach, Deep Expertise Robust Analytics & Reporting The Integrated Value Recovery Partner has advanced capabilities along every dimension of our framework

21. INTEGRATED VALUE RECOVERY CASE STUDIES

22. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Global, Diversified Telecom Equipment OEM 22 Client Leading Europe-based telecom equipment OEM Operations in 180 countries Diverse portfolio of Network Telecom products Integrated Solution Five providers partnered to provide integrated solution Services span remarketing, recycling, logistics management, and CO2 offsetting for all the client’s products across all 180 global locations Resale values increased over those attained by prior partners Client Situation Required diverse set of services, from remarketing to recycling Operated in 180 countries with 47 vendors—goal to minimize vendor count Required customized services based on product type, country, and optimal value recovery strategy

23. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Global, Diversified Telecom Equipment OEM (Continued) 23 Integrated Value Recovery Partners Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Capabilities Demonstrated Local expertise or partnerships in all 180 client countries Consistent processes across all facilities serving the 180 countries Improved resale values by leveraging global network to find optimal resale markets and channels Ability to process all types of telecom material Including remarketing, recycling, logistics management, and CO2 offsetting Tracked and reported on client KPIs globally

24. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Latin American Mobile Device Trade-In Program 24 Client Leading LATAM mobile network operator Diversified service portfolio includes mobile phones, cable TV, broadband, mobile payments Operates online eCommerce site and a network of retail stores Integrated Solution Partnered with client and in-store processor to develop end-to-end trade-in program Integrated Value Recovery Partner manages all out-of-store logistics Leverages Mexico facility for processing Leverages Dubai and Hong Kong facilities for remarketing Client Situation Sought partner to run online and in-store mobile device trade-in program and provide: Maximum recovery value by exporting phones to best markets for resale Maximum velocity of cash conversion Adherence to strict Colombian export laws

25. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Latin American Mobile Device Trade-In Program (Continued) 25 Integrated Value Recovery Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Best processing location: Mexico Best resale markets: Dubai & Hong Kong Partner handled end-to-end logistics, sorting, grading, repair, and remarketing Integrated processing and logistics across 5+ countries (Colombia, Mexico, US, Dubai, China For regulatory compliance, material must move from Colombia to Mexico for processing, then US for export Capabilities Demonstrated

26. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Case Study: Telecom Equipment Broker Facing Export Restrictions 26 Client Eastern European telecom equipment broker Integrated Solution Based on local expertise, determined an export route to move the equipment from Russia to an intermediary country, then to Sweden for resale in the EU Integrated Value Recovery Partner handled all the logistics for the operation, leveraging its own office in Moscow and processing facility in Sweden. Client Situation In business of buying and selling equipment in Eastern European countries Had high-value telecom inventory in Russia Equipment could not be sold in EU countries due to Russian export restrictions No resale market for the equipment in Russia; only option was to scrap it, with obvious negative environmental impact

27. © 2016 Belmont Trading Co., Inc. All rights reserved. Case Study: Case Study: Telecom Equipment Broker Facing Export Restrictions (Continued) 27 Integrated Value Recovery Partner Geographic Footprint & Local Expertise Vertical Market & Material Diversity Breadth of Services Offered Logistics & Processing Capabilities Remarketing & Distribution Capabilities Analytics & Reporting Capabilities Knowledge of local laws in all European countries, facilities in Sweden & Russia Logistics management across three countries Ability to take ownership of material and export from Russia to Sweden Capabilities Demonstrated

28. BELMONT TRADING COMPANY OVERVIEW

29. © 2016 Belmont Trading Co., Inc. All rights reserved. We are passionate about creating sustainability solutions for used electronics equipment 29 Belmont Trading Company exists to make our world sustainable for future generations by creating responsible and ethical solutions for managing and recapturing value from used electronic equipment in every global market Reducing the proliferation of eWaste With 10 facilities on 4 continents we are well positioned to localize processing and remarketing solutions for our partners Our focus materials include computing, mobility, network telecom, batteries & accessories, and a range of other electronics 28 year history of growth of innovation for its business partners Meeting or exceeding local governmental and NGO standards Maximizing value returned to customers

30. BLUMBERG ADVISORY GROUP OVERVIEW

31. © 2016 Belmont Trading Co., Inc. All rights reserved. Experience and Credentials Full service management consulting firm specializing in the Aftermarket & Reverse Logistics Service Industry: -Reverse Logistics & Returns Management -Depot Repair & Field Service -Service Logistics -Tech Support -Asset Recovery & Liquidation -E-Waste & E-recycling Founded in 1969 Headquartered in suburbs of Philadelphia, PA Practice areas include: -Strategic & Business Planning -Market Research & Customer Satisfaction -Benchmarks & Best Practices -Productivity & Efficiency Improvement -Systems Design, Evaluation, & Recommendation -Mergers & Acquisitions Broad Industry Focus -IT/Telecom -Consumer Electronics & Appliances -Medical/Scientific Instrumentation -Process Control & Plant Automation -Building Controls & Automation 31

32. © 2016 Belmont Trading Co., Inc. All rights reserved. 32

33. © 2016 Belmont Trading Co., Inc. All rights reserved. Thank You! 33 Michael R. Blumberg President, Blumberg Advisory Group www.blumberg-advisor.com michaelb@blumberg-advisor.com 855.643.9060x703 Joe Morrow President, Mobility Solutions Belmont Trading Company www.Belmont-trading.com JoeM@Belmont-trading.com 847.412.9690x320