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!