GP-Vengo:: Exploratory Discussion – Questions

Business Model:

Vengo’s business model is very different from traditional vending OEM’s in that we do not mark up the equipment, but are choosing partners in building an ecosystem where Vengo largely makes money through monetizing the media. The attached Operator Intro Deck gives more background on the Vengo program and outlines the economic structure on page 8, titled “The Offer”.

When embarking on a new experimental project, we require three things:
- Scalability – we need to make sure that the project can be replicated nationally (or internationally).
- Sufficient Sample Size that has variability in customer demographics, geography, and product selection.
- Partner Goals are aligned – we need to make sure this is synergistic to our Operating, Location and CPG brand partners alike.
  - Examples: discuss Planet Fitness and Kiehl’s projects.

Current Washroom Products include:
- Personal Care – tampons, tide pens, shampoo, body wash, lip balm, pain relievers, gum, vitamin supplements, Tums, combo toothbrush-toothpaste, Tums, condoms, mouth wash
- Electronics – pre-charged phone chargers, apple and android wall chargers, ear-buds,
- Snacks – Quest bars, Cliff bars, 5-hr Energy
- Other – Masterlocks

For product mix, Vengo will drive the process in our core network with input from both location and operators. As Vengo needs scalability to best capitalize on media potential, we strive to have a meaningful offering to our brand partners.

Technology:

The vending machine can be mounted on virtually any surface using a mounting plate to hang like a TV
- Vengo also has developed a stand for more flexibility.

The Vengo connects via WIFI, Ethernet or 4G (last resort due to cost). We require connectivity tests during site surveys and have the following connectivity form for all installs.

There are no hard and fast rules on size requirements and/or restrictions. Every product goes through an intense testing and onboarding before deployment.