EFP Deck (3Q'12) by BradleyGreenwald100

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									Investor	
  Presenta,on	
  
U.S. Public Education is in Crisis




           $25B in budget cuts in last 4 years
          Responsible	


Corporate Marketing Sponsorships	


      For Public Education 	


Business Model

Public School                              Consumer
  Districts                                Companies
                      SOLUTION
                 Responsible corporate
                    sponsorships in
                 public school districts


                         20%
                      Commission



  2008 - 2011                              Want To Engage
  NEED in
 $25 billion $             $               HAVE $
                                           With Students &
  budget cuts                                  Parents

                    Marketing
                    Programs
Experienced Team

         Mickey Freeman, President & CEO
            •         President, Outward Bound
            •         President, Schoolpop
            •         Sprint Corp. Marketing
            •         Harvard Business School ’93
            •         Founding Chairman, AXL Academy Public Charter School


          Bruce Blair, VP Sponsor Sales
                 •     ESPN Media VP Sales
                 •     IEG Sponsorship VP
                 •     Leo Burnett Advertising

          Lynne Cole, VP Operations
                 •     First Hour Director (public schools sponsorship)
                 •     Imagitas
                 •     AOL Time Warner

          Paul Muller, Director of School Programs
                 •     First Hour Director (public schools sponsorship)
                 •     ACT Board
Large, Growing Market


            Public (K-12)
              52m Students

                    $0.5 -$1.0
                     Billion

              * Monies paid by corporations to schools for sponsorships




                               Source: EFP and independent third party estimates
Responsible Approach


         EFP Social Pledge
        1.  No advertising in the classroom
        2.  No involvement in the curricula
        3.  Districts approve all sponsors and
            messages
   EFP Gets Exclusive, Multi-Year Rights
          From School Districts

By Age
Elementary
   Middle
High School      By Venue
                   Stadiums
                     Gyms              By Tactic
                   Cafeterias
                  Parking Lots           Naming Rights
                                            Signage
                  Auditoriums               Websites
                                          Social Media
                                          Email Blasts
                                         Sales Events
                                 Student & Teacher Recognition
School District Contract Momentum
               1.4m Students Under Exclusive Contract
     1,600,000	
  


     1,400,000	
  


     1,200,000	
  
                                               9 month seeding process
     1,000,000	
                                          9-month seeding process
       800,000	
  


       600,000	
  


       400,000	
  


       200,000	
  


               0	
  
                       Jan	
   Feb	
   Mar	
   Apr	
   May	
   Jun	
     Jul	
     Aug	
   Sept	
   Oct	
   Nov	
   Dec	
     Jan	
   Feb	
   Mar	
   Apr	
   May	
  
                       2011               	

                   	

                       	

                 	

             2012	






                                     Target: 50,000+ student public school districts
                                                      (100 largest)	


                                                                                                                                           * Or RFP won
Responsible Sponsorship




        Brands Partnered
          WITH Schools
EFP’s Unique Appeal To Marketers

            •  On-campus

            •  Exclusive

            •  Uncluttered

            •  Naming Rights

            •  Platform For Campaigns

            •  “Warm engagement”
EFP Current Sponsor Clients
EFP In Discussions with Major Brands
Financing

            •  $2.1 million raised to date

            •  Raising Series B - $1,000,000

                     - $5m pre money valuation
                     ($100k buys ≈1.7% of EFP)

                     - Use of proceeds:
                               Sponsor salesforce
                               Regional acct mgrs
                               P.R. push
                               Working capital
Projected Financials
                                                   2012        2013        	

   2014        	

   2015 	

    2016

                                                  $0.5m        $4.9m             $30m              $92m        $176m



        	
  $40,000,000	
  	
                                                                                              $33m
                                                                                                                   Operating Income
        	
  $35,000,000	
  	
  

        	
  $30,000,000	
  	
  

                                                                                                                                      Profit
        	
  $25,000,000	
  	
                                                                                                         Before
                                                                                                                                       Tax
        	
  $20,000,000	
  	
                                                                                              $18m	
  

        	
  $15,000,000	
  	
  
                                                                                                                           $15m	
       Expenses

        	
  $10,000,000	
  	
  

          	
  $5,000,000	
  	
  

                       	
  $-­‐	
  	
  	
  	
  
                                                    2012	
      2013	
            2014	
            2015	
      2016	
  
        	
  $(5,000,000)	
  
Exit Scenarios

         •  Strategic Acquisition
           - Media Company (e.g. Clear Channel Outdoor)
           - Education Company (Scholastic)
           - Agent Company (e.g. IMG)


         •  IPO

         •  Cashflowing                     Sale Scenario
                                            $18m EBITDA
                                           @ 5 - 6x multiple
                                          = $90 - 108 million
Summary
    •  Market leader

    •  Large, high-growth market
      -  Scalable, recurring revenue
      -  High gross margins


    •  Significant competitive advantages

    •  Solid barriers to entry

    •  Seasoned team

    •  Socially important business model
Thank you 	


for supporting 	


public education!	



								
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