The Discrepancy

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Empatica, Impact Your LifeMinh Nguyen, Leah Tholen, Joseph Santiago and Afryea Nophlin

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E4 Description

Background

Technology Implementation

Challenges

Future Outlooks

Finance

Overview

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Empatica

E4 Background Execution Challenges Future Outlooks Finances

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Empatica

E4 Background Execution Challenges Future Outlooks Finances

Track changes with the central nervous system

Monitors minor electrical changes

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Background

E4 Empatica Designed to save lives

Medical field Seizures Epilepsy

Education Improve comprehension Academic integration

E4 Background Execution Challenges Future Outlooks Finances

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Empatica

Wristband

Monitors human functions

Data conversion

Relay information Through customized UI

E4 Background Execution Challenges Future Outlooks Finances

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Why McGraw-Hill

E4 Background Execution Challenges Future Outlooks Finances

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Competitive Advantage

Original learning device

First-movers advantage

Advance education

Product lifecycle

E4 Background Execution Challenges Future Outlooks Finances

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Technology Implementation

Calibration

Measure stress level

Differentiate personal vs. educational stress

Relay information

Instructor take action

E4 Background Execution Challenges Future Outlooks Finances

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Potential Challenges

Information Security Transparency Parental consent

Data Accuracy 2 weeks calibration Communication

Cost and Expansion Payment plan Creating value

E4 Background Execution Challenges Future Outlooks Finances

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Future Outlooks

E4 Background Execution Challenges Future Outlooks Finances

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Future Outlooks

Integration May 2016 Integrate Empatica with Connect Stress differentiation Product calibration Market product

E4 Background Execution Challenges Future Outlooks Finances

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Future Outlooks

Implementation August 2016 Private schools and Montessori schools Calibration

Match students with Empatica

E4 Background Execution Challenges Future Outlooks Finances

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Future Outlooks

Data and Feedback May 2017 Data analysis User feedback

Students Teacher Parents

E4 Background Execution Challenges Future Outlooks Finances

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Future Outlooks

Update and Expansion May 2017 onward Utilize feedback to upgrade firmware Improve UI if needed Expand to other schools

E4 Background Execution Challenges Future Outlooks Finances

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Finances

E4 Background Execution Challenges Future Outlooks Finances

Cost per unit $275

Suggested Retail Price

$400

Population currently using Connect software

34%

Projected Population (2015-2020)

40% of all private school students between 3rd-8th grade

Projected Population (2020-2025)

40% of all school students between 3rd-12th grade

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

$150 $207$270 $330

$401

$669

$775$904

$1,061

$1,251

$1,484

$2,555

$2,898

$3,316

$3,825

$4,445

Before E4

33% growth in net revenue between 2015-2025

Based on projected growth of McGraw Hill’s current digital solutions revenue before and after the addi-tion of E4

*All numbers in the millions.

Finances

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Summary

Independence of Connect

Disconnects Connect Software from text-based

products

Diversify Customer

Base

Customer base expands

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Summary

Competitive

advantage

Key Differentiato

r• Connect

Innovative• Sole

developer

Exclusive• Exclusive

Partners

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Empatica, Impact Your LifeMinh Nguyen, Leah Tholen, Joseph Santiago and Afryea Lateefa