Instant Savings

1. Instant Savings July 31, 2012 RMAS

2. 2013 Enhancements - Instant Savings Instant Savings will go live in January 2013 and will allow Ace Rewards members to receive their rebate at the time of purchase instantly at POS. Benefits: • Expedited check-out process • Exclusive in-store value for Ace Rewards members • Increase of Ace Rewards customer base and scan rate • Elimination of invalid rebates for our best customers

3. 2013 Enhancements – Instant Savings • Instant Savings is for Ace Rewards customers only. • Instant Savings will be downloaded to the stores and activated with Ace Rewards card at checkout. • Sales receipt will reflect savings. • Non Ace Rewards customers will redeem the rebates via mail. • Online Submission will be eliminated. • Ace Rewards customers will pay tax on the pre-rebated transaction amount. • Retailers must adhere to Ace sale pricing to receive “Instant Savings” offers.

4. Instant Savings Receipt Example

5. 2013 Enhancements – Instant Savings • For 2013 Instant Savings will mirror the current mail-in rebate program: • Monthly window for regular promotions and Red Hot Buys • Weekly window for National Events • Retailers and vendors are credited/debited weekly for Instant Savings. • Reports will be available for retailers to reconcile Instant Savings Credits. Currently ADW R-ADV 0143 Instant Saving Margin Report is available. • Preprints will advertise price with Instant Savings for Ace Rewards customers, similar to “Price with Card”. • Customers can sign-up and receive the Instant Savings on that transaction.

6. Current Epicor Levels

7. Current Stores with Dynamic

8. 2013 Enhancements – Instant Savings Requirements: • Active on Ace Rewards • Transmit POS data • Active on Dynamic Promotions • Epicor Release 21.1 – Level 5 (Fall 2012) • Training Webinar Available NOW • Other POS systems will also be supported in late 2013

9. Instant Savings Architecture • Monthly Instant Savings & corresponding rebates begin on the first of the month (or the first day of the monthly ad if earlier) and will run through the end of the month. • National Event Instant Savings and corresponding mail in rebates will begin on the start date of the promotion and end on the final day of the promotion. • Future Ace Rewards Members Only offers to come.

10. Instant Savings Execution Retailer Retailer Financials Sales are booked at pre-rebated price. Customers are taxed at pre-rebated price. Sales offset by “Instant Savings Credit” weekly Credit recorded as accounts receivable • Now: 21.1 Epicor training webinar. • Install Epicor release 21.1 L5 available 10/1/12. • On Dynamic Promotions • Ace Rewards participant • Download Hotsheets with credit sku • Statement credited weekly for IS amounts

11. Instant Savings Execution • Ace link for 21.1 training is live now - http://inter.viewcentral.com/reg/activant/AceNewRelease • This is a different link than the regular link that was previously provided. • Ace retailers should now use the new link (above). Upon completion they will be placed on a list for shipment of 21.1 starting in October.

12. 2013 Enhancements – National Look Up • National look up will enable access to the 23+ million Ace Rewards Members via the POS: • Phone number • Last name / zip code • Ensures a positive customer experience and supports Instant Savings

13. 2013 Enhancements – National Look Up National Look Up Requirements: Epicor Release 21.1 – Level 5 (Fall 2012) • Allows for National and Local look-up • No fields can be updated Epicor Release 22 (Spring 2013) • Will allow for customer update at POS (ie. Name, Address, Mobile, E-mail, Birthday) • If customer is not available in local or national searches, then web-based New Member Sign-up at POS will prompt to sign-up the new customer. • No VPN will be required, but POS must be connected to the internet.

14. Thank You! Barney Onken 719-332-3984 onken@acehardware.com Paul Bogren 970-214-8335 bogren@acehardware.com