The Perfect Fit For Your

Future

Questions for YOU:

Do you want to SOLVE customer issues?

Do YOU want to ASSURE the HVAC equipment is meeting

expectations?

Would you like to add $50,000 to your bottom line in the first year*?

*Based on 5 seals per month, Average Retail Price $2250, 30% Overhead

More Money! Create new revenue stream for your business

Average 62% GP on seal applications > $1000 in GP per application Additional revenues from existing customers Create revenues during seasonal slowdowns Dealer Investment average pay back 6-24

months

Why Invest?Aeroseal Dealers Experience...

We can get to where Mastic can’t

Mastic: Not as Durable and not as effective as

Aeroseal Reduction in leakageNasty Work & Labor

Intensive Boring Sales Story

“Aeroseal can potentially

reduce labor time and costs for

duct sealing by 70%”

Oakridge National

Laboratory

Why Aeroseal?The 21st Century: Wireless and

Mobile

Systems will ship with a HP Pavilion 2-in-1 10.1” touch screen 2GB memory 64 GM SSD 2-in-1 tablet with Win8

Computer Controlled

Productivity Advances: Safety

Checks Encourages Consumer

Engagement:

Telescoping handle and

wheels

One compressed air fitting

(3) 115V; separate 15A

connections

One pressure tube connection on the back of the unit

Antennas fold back for safe storage and easy transport

Built-in modem

Single-Box Design

Fan Pump – Single-Speed Setting

WandFilter

Heater Cylinder Inside

Single-Box Design

Heater Cylinder

Injection Nozzle

Portability

Weight: 80 lbs

Fixed Directional Wheels

HomeSeal Pro System

HomeSeal System Compressed Air Dryer

PC Connection75’ Blue Tube 12” Clamp and Flange

12” Clamp

Software License

1,500 CFM Negative Pressure Scrubber Fan

Options and Accessories

Options Scrubber fans

Basic: 1500 cfm Basic Compressor kits (required)

Compressor: Minimum 6.5S CFM @ 100PSI, 8 Gallon tank, up to 125PSI pressure (Electric and Gas compressors available from Aeroseal).

Supplies Basic Kit

4 gal sealant, 1 gal solvent, ¼ roll of 36” lay flat, 1 box foam and 3 rolls of duct mask

Upgrade Kit 20 gal sealant, 3 gal. solvent, 2 rolls of 36” lay flat2 boxes foam and 6 rolls of duct mask

Accessories Generator

Running compressor: 12,500w-Starting-10,000w

Without compressor: 5,500w running

Spare Wand Wye Kit with Clamps 14” Flange Kit w/ Clamp 10” Flange Kit w/ Clamp 220V - (3) 110V pigtail

extension 50' Power Cord Kit ( 3 Cords)

Or Invest in a business in a box

withAeroseal Mobile

Pro…All Ready to Go!:

Improving Productivity

Aeroseal Mobile Pro:

Improving Productivity

Aeroseal Mobile Pro! Install From the Trailer

Less Time to Set up/Tear Down Means More Profits! Potential for One Tech

Operation!

Conduct In-Home Survey

Isolate furnace/coil and plug registers

Measure initial leakage (Pre-test)

Inject sealant Measure final

leakage (Post-Test) Seal register boots Present certificate

Aeroseal Process*

Proven Results

Certified Pre & Post Test Results Computer Controlled 90%+ Reductions is Standard Seals Inaccessible Leaks Minimal Time In Attics/Crawls 10-year Warranty Stays flexible & Malleable Don’t Have To Unwrap & Re-Wrap

Insulation

Why it Matters?

The Ho e TruthAbout Residential

Homes

Why it Matters? DUCTS LEAK

“Typical duct systems lose 25 to 40 percent of the heating or cooling energy put out” (US DOE)

DEMAND GROWING 100 million homes have Air Conditioning Stronger Code enforcement across country Consumers understanding New Solutions available

Why it Matters?Sealing ducts is the single most important

measure to improve energy efficiency McKinsey: Energy Efficiency Potential

Insulate wall cavitiesInsulate slab foundation

Upgrade windowsInstall wall sheathing

Perform HVAC maintenanceSeal home air leaks

Insulate atticInstall programmable thermostat

Upgrade heating equipmentInsulate basement

Seal ducts

0 100 200 300 400

(Trill BTUs)

Why it Matters?Sealing ducts is cost effective for the

homeowner McKinsey: Cost Benefit to Homeowner

Install programmable thermostatInsulate basement

Seal ductsInsulate attic

Perform HVAC maintenanceSeal home air leaks

Upgrade windowsInstall wall sheathing

Upgrade heating equipmentInsulate wall cavities

Insulate slab foundation

0.0 4.0 8.0 12.0

16.0

($/MMBTU)

Why it Matters?Consumer Benefits*

Comfort: help with rooms that are too hot

or cold Health & Safety:

reduce the risk of pollutants circulating through home

reduce the risk of carbon monoxide and combustion gases entering home through ventilation system

Savings: increase heating and cooling

efficiency by as much as 20% Environment:

reduce air pollution and greenhouse gas emissions

*Source: Duct Sealing, U.S. Environmental Protection Agency

25% Degrade Common 16 SEER = only 12

SEER 95% AFUE = only 71%

Why It Matters?

SEER – AFUE Degrade

Want To

Get What You Pay For?

SEAL YOUR DUCTS.

Why Aeroseal?Success Support from Day 1!

Dedicated Account Manager

Kick-Start Training

Technical Training

Pathway to

Profitable Growth

Recognition &

Rewards

Two Days of Training at our Corporate OfficesPathway to Profitable GrowthLead Generation ( internal/ external)“ How to Sell” Selling techniques to consumer for

CSR/SERVICE/Comfort AdvisorsMarketing Aeroseal to the ConsumerHow to Price (Retail/Spiff/POP/Referral)In-Home Selling ProcessGoal Setting/Execution PlanOn going continued support

Kick Start Training by Aeroseal and the Comfort Institute Getting Dealers started in the right direction

Competitive Advantage HVAC systems work as designed Increase Quality, Decrease Callbacks Get More Referrals & Internet Reviews Attract The Best Techs

SOLVE Customers Problems Comfort, Healthier Air, and Energy Savings Airflow Improvement: 42% Supply side, 91% Return side* Energy Savings Average: conditioned space: 5-15%,

unconditioned space: 10-30%. Consumer ROI: 2-5 years

Why Invest?Aeroseal Dealers Experience...

.

2 days Kick-Start training our HQ location. Class focus on Success Planning for selling Duct Performance to the consumer (Travel & Lodging Provided)

Ongoing Partnership Accountability - through our Pathway to Profitable Growth

Regional TrainingFREE registration for 1 st year/future years at discounted pricing (unlimited attendees):

• Duct Performance102 (3 days Retrotec Certification + Duct +

Performance Certification)• Service Tech In-Home Lead 506

Generation Techniques (1 day)

Online Streaming Technical Videos, Review Quizzes, Manuals & Fact Sheets Training Library:

• Limited Access to Training Library• videos, 12+ Technical manuals(30+

/fact sheets)• ComfortPRO Webinars • Access to Bi-Weekly Webinars

(45 min each )• Access To All Past Recorded Webinars

Ongoing Telephone Support and Coaching:

• Ongoing High Priority “Ask The Expert” Telephone Support with Mobile Access

• Planned Coaching Sessions• Remote Team or One-on-One Training

available CSR/ST/CA

Marketing Resources, Pre-Appointment Education & Sales Support Systems:

• Limited Access to Consumer Education Sales Videos Streaming On Your Website

• Sales Education Image Library30+• CSR scripts & forms• Pre-Appointment Education Fact

Sheets: (Printing Extra)• Access To All Past Friday Feed Articles• Right to attend Annual CI Networking

Success Summit

Two days of Technical Training at Your Location to Teach you how to run the machines Teach how to run the job properly, detailed SOP’s Teach you how to set up your own box van, truck

or trailer Teach you how to problem solve on job site Teach you how to maintain the equipment How to increase your profitability

Why Invest?Aeroseal Dealers Experience...

Marketing Support

Utility rebate development Web & dealer

locator Consumer video Printed literature Third party endorsements Apparel, banners &

vehicle decals National marketing

Product of the Year

Gold Medal Award-2015

Why Aeroseal?The Product is Innovative and Works!

Revenue Per Job Per Month Annual Per Job Per Month Annual# Jobs 1 5 60 1 10 120Retail Price $1,800 $1,800 $1,800 $2,400 $1,600 $1,600Seal Revenue-Projection $1,800 $9,000 $108,000 $2,400 $16,000 $192,000# Upgrade Opportunties* 0.2 1 12 0.2 2 24Average Price/Upgrade $0 $0 $700 $700 $700Upgrade Revenue-Projection $0 $0 $0 $140 $1,400 $16,800# Duct Repairs 0 0 1 10 120$ / Duct Repair $0 $0 $125 $125 $125Duct Repair Revenue-Projection $0 $0 $0 $125 $1,250 $15,000

Total Projected Revenues $1,800 $9,000 $108,000 $2,665 $18,650 $223,800

*Upgrade opportuntites based on competitive advantage on primary business model, inlcudes additional sales, pricing premium vs. competition, and upgrades.

Expenses 5 60 10 120Labor Rate-1 $35 $175 $2,100 $25 $250 $30,000Labor Rate-2 $35 $175 $2,100 $25 $250 $30,000Labor Rate/Cost $70 $350 $4,200 $50 $500 $60,000Taxes/Liabilities @ 30% include Y/N n $0 $105 $1,260 $15 $150 $18,000Labor Rate/Hr. $70 $70 $70 $65 $65 $65Prep Time 3 15 180 2 20 240Sealing Time 1 5 60 2 20 240Breakdown/Clean Up 2 10 120 2 20 240Total Hour Projection 6 30 360 6 60 720Cost Summary Labor Cost-Projection $420 $2,100 $25,200 $390 $3,900 $46,800Material Cost-1 $75 $375 $4,500 $75 $750 $9,000License Fee $219 $1,095 $13,140 $219 $2,190 $26,280Other Costs $0 $0 $0 $0 $0 $0Total Cost Summary $714 $3,570 $42,840 $684 $6,840 $82,080

1-Material projection: 1/3 gal.sealant/foam blocks/tape/tubing/brochures

Gross Profit Projection $1,086 $5,430 $65,160 $1,981 $11,810 $141,720GP % 60.3% 74.3%

Applied Overhead $ $540 $2,700 $32,400 $800 $5,595 $67,140Other $ (Lease) $140 $700 $8,400 $75 $750 $9,000Total Overhead-$'s $680 $3,400 $40,800 $875 $6,345 $76,140Net Profit $ $406 $2,030 $24,360 $1,107 $5,465 $65,580Net Profit % 22.6% 22.6% 22.6% 41.5% 29.3% 29.3%

Business Planning ModelNote: All numbers are based on averages and are for directional purposes only.Actual Results will vary by market.

Your Projections Aeroseal Targets Example

Business Model Projecting

Questions for YOU:

Do you want to SOLVE customer issues?

Do YOU want to ASSURE the HVAC equipment is meeting

expectations?

Would you like to add $50,000 to your bottom line in the first year*?Are you ready give your customers

what they want?

*Based on 5 seals per month, Average Retail Price $2250, 30% Overhead

Air Quality Benefits

Reduce Pollutants, Allergens, Dust entering air stream from wall cavities, basement, or attic

Reduce radon, combustion products and noxious gases in indoor air

• Reduce temperature variation between rooms and floors

• Reduce humidity in rooms• Fix hot or cold room issues

Comfort Benefits

Energy Savings • Lower energy bills: On average homeowners can

Save between $300-$1200 (5%-30%)*• Longer life of the most expensive appliance they own• Federal, State , and local Utility rebates • Average Return on Investment is 2-4 years

*EPA Duct Investor Model-ASHRAE 152 standards

AEROSEAL PROVIDES WHAT YOUR CUSTOMERS

WANTCOMFORT HEALTH SAVE

MONEY

Financing through Fernwood Capital

https://www.fernwoodcapital.com/credit-application

Appendix

Common Questions?

How long will it last? Guaranteed for 10 yrs. (Residential) Stress Tested to 40

years Is the sealant safe? Will I be allergic?

Sealant is Non-Toxic and has been used in hospitals, surgery centers, and government institutions.

UL approvals for UL1381 for aerosol based technology UL723 for smoke and flame rating of 0 and UL 181 for mold growth.

Primary component is Vinyl Acetate Polymer, used in water based paints, hair spray, and chewing gum

What VOCs are emitted? The sealant has been tested by an independent lab and

found to have extremely low concentration of VOC’s. The primary component has no OSHA maximum exposure limit

How long does it take to dry? Drying time is less than 2 hours – by the time clean up is

complete , the system can be turned on.

Common Questions? Will my house smell?

There is a mild odor, like Elmer’s Glue, during sealing. Odor should dissipate by next morning (or before)

Should I be in the house? We prefer no one is in the house during sealing due

to impact on productivity. If you are pregnant, senior, or infant, or utilizing medical equipment we do encourage you to leave as a simple safety precaution.

How big of leak will be sealed? 5/8” round hole can be sealed during normal range of

productivity. What about leaks that are too big?

Broken and disconnected ducts – large leaks – need to be fixed prior to sealing. If a hidden large leak is uncovered during sealing, process is stopped and a solution is discussed.

Common Questions? Where does the sealant leaking from the ducts go?

Sealant escaping from the ducts will settle in wall cavities, attics or crawl spaces. During the process, we will filter the air to capture any sealant entering the living areas.

Will it harm electronics? Sensitive electronics should be covered. During the process we will

filter the air to capture any sealant particles in the room What about my HVAC accessories?

Technician is trained to protect all accessories prior to sealing. Some items, such as humidifiers or UV lights, may be removed then reinstalled to prevent damage, others may be bagged or covered.

Do ducts need to be cleaned before sealing? Extremely dirty ducts should be cleaned. We recommend the technician

assess the condition of the ducts and make a recommendation to the homeowner

Can I clean my ducts if they are sealed? Ducts of all material types can be successfully cleaned after sealing

Will the ducts be covered with sealant? The Aeroseal process does not coat or line the ductwork. The only

sealant remain in the ducts will be at the previous leak.