Brett Bontrager• Group Executive, Stanley Security

Power Of Brand

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Major Events Throughout The Past 12 Months Continue To Shape Our Businesses And The Security Industry

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Increase In Access Control And Authentication Certainty At The DoorKnowledge Of Who Is In Your Facility, And Where They Have Access

Improved System IntelligenceIdentifying Inconsistencies And Patterns In And Around Facility

Budgets ChallengesIncreasing Knowledge And Outputs With Small Or Reduced Revenue Pool

These Events Have Led To…

…Which Have Become Major Security Trends Throughout 2013

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Improved System IntelligenceIdentifying Inconsistencies And Patterns In And Around Facility

Budgets ChallengesIncreasing Knowledge And Outputs With Small Or Reduced Revenue Pool

These Events Have Led To…

…Which Have Become Major Security Trends Throughout 2013

Increase In Access Control And Authentication Certainty At The DoorKnowledge Of Who Is In Your Facility, And Where They Have Access

RTLS

EAS

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Increase In Access Control And Authentication At The Door

Video

Verification

Alarm

Monitoring

Total Security Solution

Access Control

Access Control Will Be A Growth Driver For The Foreseeable Future

•Recent Events Are Driving Security Professionals To Reallocate More Of Their Spend To Physical Access Control

The Core Of Any Solution Is The Access Control

20% Growth In Access Control Projected In 2013

IMS Research Report2013

RTLS

EAS

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Increase In Access Control And Authentication At The Door

Video

Verification

Alarm

Monitoring

Access Control

Access Control Must Be Integrated With Other Security ApplicationTo Have A True Solution

• Introduction Of Single Solutions Into The Market Causing Customers To Work Through Disparate Systems

AlarmMonitoring

VideoVerification

RTLSEAS

Total Security Solution

Roadmap Option 2

Roadmap Option 1

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Increase In Access Control And Authentication At The Door

Keys

Prox Card

s

PIV & PIV-I

Evol

ution

Of

Acce

ss C

ontr

ol

Hosted M

gmt.

Biometrics

As Biometrics Continue To Advance To Provide Greater Accuracy For Authentication At The Door, Customer Have Been Given Many Options

Fingerprint Hand Geometry Facial Recognition

Iris Recognition

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Increase In Access Control And Authentication At The Door

“…facial-recognition technology "shall return an incorrect candidate a maximum of 20% of the time” - Electronic Privacy Information Center

Iris Recognition 30,000x More Accurate In Standalone Access Control Than Fingerprint

Accuracy And Ease Of Use Is Becoming Key

1:1.3MFalse Accept Rate For 1 Eye

1:6BFalse Accept Rate For 2 Eye

1:10KFalse Accept Rate For

Fingerprint

“More than half of those surveyed would be willing to use biometric authentication for smart phone security” - IBM Report

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Increase In Access Control And Authentication At The Door

Evolution Of Technology

Government

Institutional

Commercial

Consumer

Migration

Tech

nolo

gy A

dopti

on

Consumer

Commercial

Institutional

Government

Examples: Wi-Fi Adoption Example: Biometrics On iPhone 5S

Trend Continuing With Adaptation Of Biometrics

Tech

nolo

gy R

evol

ution

Past Present

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Improved System IntelligenceIdentifying Inconsistencies And Patterns In And Around Facility

Budgets ChallengesIncreasing Knowledge And Outputs With Small Or Reduced Revenue Pool

These Events Have Led To…

…Which Have Become Major Security Trends Throughout 2013

Increase In Access Control And Authentication Certainty At The DoorKnowledge Of Who Is In Your Facility, And Where They Have Access

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Improved Systems Intelligence

30.4% CAGR

2011 2012 2013 2014 2015 2016 2017

Video Analytics

Trend Continues To Be A Large Growth Area Within The Security Market

What’s Driving The Growth?Decreased Labor Costs

Increased Speed And Accuracy“Object Left Behind” Recognition

Quick & Easy Installation

Examples

Quick Analytics Post Tragedies

Monitoring As A PreventionSource: Markets and Markets

Delivered WithMobility

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Improved Systems Intelligence

Demand Increasing For Improved Visibility Of Internal Systems…

…Which Has Driven New Focus On The Way Information Is Given

Smarter.Data Management

Sharper.Audio Management

Easier.Access Management

Faster.Account Management

Clearer.Video Management

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Improved System IntelligenceIdentifying Inconsistencies And Patterns In And Around Facility

Budgets ChallengesIncreasing Knowledge And Outputs With Small Or Reduced Revenue Pool

These Events Have Led To…

…Which Have Become Major Security Trends Throughout 2013

Increase In Access Control And Authentication Certainty At The DoorKnowledge Of Who Is In Your Facility, And Where They Have Access

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Budget Challenges: Globalization

Global Linkage New Product DevelopmentLocal Team

Customers Are Needing Product That Is Made

In The MarketFor The Market

Global Customers Demanding A Global Provider WithLocal Products And Implementation

Demand For Local Teams With

Local Products And Services

Need For Global Security Providers

Growing As Customer Demand

Increases

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Budget Challenges: Industry Integration

Installation and Service

Mechanical Hardware

Doors

RTLS Biometrics Cloud Storage Video Analytics

Illustrative: K12 Solution

…Products & Services Integrated w/ Industry Standards

Delivering Integrated Solutions With Comm Avl Technology And Software…

Products & Services

Partner Technologies

Industry Enterprise Software

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Budget Challenges: Vertical Solutions

Initial Vertical Focus On Institutional Customers…Migrating To Commercial

Banking - $1.5B Retail - $1.8B Government - $1.0B Healthcare - $1.8B Education - $1.8B

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Budget Challenges: Vertical Solutions

Banking - $1.5B Retail - $1.8B Government - $1.0B Healthcare - $1.8B Education - $1.8B

Initial Vertical Focus On Institutional Customers…Migrating To Commercial

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Budget Challenges: TOGETHER FOR SAFER SCHOOLS

•Priority 1 Is Core, Authentication, And Perimeter Access

• Integration W/ Local First Responders

•Verified Monitoring To Support Apprehension And On Site Location

•Video & Location Technologies Next Horizon

5 Year Road Map Developed To Avoid Disparate Systems

K-12 Focus

STANLEY’s TOGETHER FOR SAFER SCHOOLS grant program is offering $200,000 in security products and services to one winning school.

Selection to take place in December.

Closing Thoughts

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Entering New Markets

Future Of Mobility In The Security Industry

True Voice Of The Customer

The Role Of The Integrator

Service Still A Differentiator

Thank You!