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ROTHSCHILD
July 14,2000 Ez2get SummaryFact Sheet
Background: Ez2get (the "Company")has retained Rothschild raise $50 millionthrougha to privatelyplacedequityfinancing. Ez2get is a nationwiderapid satisfaction marketingand fulfillment company providing same hour dehvery of restaurant-prepared meals, office products and supplies, and premium gifts and apparel Ez2get has aggressively d_fferent_ated itself from _tscompetitors through its business model which targets a time sensitive, price insensitive corporate rather than consumer market Th_sstrategy targets customers whose large average order size makes the Company's business model profitable on each order Ez2get partners with national and local restaurant chains (over 6,000 locations currently) and retailers to provide one hour delivery of meals and products to its customers. Ez2get's strategy _sto turn local restaurants and retailers into onehour e-tallers with Ez2get managing logistics and distribution without havingto maintain inventory itself The customer benefits from a local merchant with local brand acceptance and local customer service Ez2get's marketing efforts are corporate focused (B2B) rather than consumer focused (B2C) with local sales forces calling on targeted companies m each market. The customer acquisitionand marketing costs of th_sstrategy are much lower than competitors' mass consumer market strategies. The Company is creating a new market by reducing the time to fulfillment expectat,ons of its corporate customers. Ez2get currently serves 32 urban markets (see Appendix A) with plans to serve 50+ markets within 18 months by growing both through the acquisition and conversion of existing local delivery systems and through greenfield operations. Currently, the Company generates well in excess of $1 mllhonper week of revenue from customers which include over 9,000 corporations, 700,000 consumers, and over 25,000 hotel rooms The Company's clients include Andersen Consulting, 3M, Marriott,Pncehnecom, and other major corporations The Company is building a nat=onw_deame-hour delivery system based on =ts s proprietary Delivery Magic software (patent pending). The system enables the Company to co-ordinate logistics nationwide from a single operations center in Dallas, Texas. The system can adjust for indlwdual restaurant and meal preparation t=mes,weather, driver performance, and time of day, among other variables, to ensure that the Company meets the requirements of its t_mesensitiveclients Key benefits of the system include better order predictability, national scalabllity, reduced driver turnover and improved driver efficiency
Business Overview
Business Overview
The Internet provides a crucial link in Ez2get's strategy The Internet allows customers to access real-time information tadored specifically to the local market Current local systems which rely only on printed catalogs are difficult to scale because the marketing materials cover only a small geographic location, are not flexible if the customers moves or is travelling, cannot provide the same depth of product information or real-time information on product availability The Internet makes each ez2get customer a local customer in all of the Company's markets Additional benefits include reduced labor, marketing and pubhshmgcosts and the opportunity to develop other e-commerce revenue streams One of Ez2get's key strategic advantages is the depth of its management team (See Appendix B) which includes senior executives with extensive retail, logistics, package dehvery, marketing and financial experience. W.R Ford Smith II, President and CEO, was FoundedChalrman/CEO of PETsMART and Co-Founder of Food com, Maurice Levy, COO, was SVP at Purolator and a Managing Director at Federal Express; Harry Cummins III, CFO, was Head of Strategic Planning at Visa International and a four-t_meCFO Ez2get was founded in July 1999 and began operations in December 1999. The
Management
Corporate Background Financial
Company operates out of a 32,000 sq ft. headquarters in Dallas, Texas and 44 regional offices in the U S Ez2get is a Delaware Corporation. The Company's basic economic model is to offer higher-end restaurantprepared meals and other premium products to customers at standard market prices. Ez2get earns a 25%-40% margin (m the form of a discount) from restaurants on food items and 8%-35% from retailers on non-food items The Company also receives a dehvery charge from customers of $7 (food) or $12 (non-food). As mentioned previously, the Company makes a profit on every order it dehvers The Company also receives advertising revenue from participating restaurants/retailers and is also building other e-commerce focused revenue streams, including on-line reservations, and revenues from its portal sites Based on anticipated financing and a pending acquisition, the Company's base case calls for financial performance as follows Year 1 Year 2 Year 3 Year 4 Year 5 Revenues $212 mn $384 mn $621 mn $958 mn $1,457 mn Operating Income ($25) mn $11 mn $52 mn $91 mn $142 mn Note. Figures assume no "greenfield"expansion, or future acquisitions beyond the initial acquisition • Makes money on every order B2B versus B2C focused Corporate customer = time sensitive, price msensittve Larger average bcket size (4x-5x consumer-focused competitors like Kozmo com and Urbanfetch) makes business model profitable No inventory- leverages strong relationships w#h local restaurants and retailers Extraordinary management depth Market leading propnetary logistics technology- category survivors will be determined by logistics success more than anything Truly scalable model, including internationally Taps existing market and creates a new market (FedEx created the market for overnight dehvery among corporate customers - Ez2get anticipates doing the same for the one hour dehvery market) Rapid revenue growth
Key Investment Themes.
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Summary:
Rather than building a consumer and marketing focused business hke many recent entrants into the sector, Ez2get is budding a nationwide (soon to be international) logistics-focused business targeted at time sensitive and price insensitive corporate customers. The Company's profitable business model, proprietary technology, and experienced management team create a real strategic advantage The Company is seeking to raise a round of financing to fund an acquisition and to continue _tsbuild-out strategy into targeted markets The Company also hopes to benefit from partnering with strong strategic investors
Please contact one of the following: H. William Coogan, Jr. Managing Director (212) 403-3585 (212) 403-3608 fax Noah C. Roy Associate (212) 403-5413 (212) 403-5486 fax Russell Tan Analyst (212) 403-3536 (212) 403-5213 fax
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ROTHSCHILD Appendix A Ez2get currently serves the following urban markets. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • New York City San Francisco/East Washington, DC Boston Los Angeles Dallas/Fort Worth Chicago Philadelphia Miami San Jose Salt Lake City Orlando Columbus Minneapohs/St Fort Lauderdale Northern New Jersey Connecticut (Stamford, Greenwich, Hartford) Long Island (the North Shore of Nassau County) Northern Virginia (Arhngton, Reston/Herndon, Oklahoma City Nashville Tulsa Seattle Baltimore Denver Providence Memphis Kansas City Lexington Cleveland Palo Alto Palm Beach Alexandria, Annandale, McLean, and Vienna) Paul Bay
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ROTHSCHILD Appendix B Name W R Ford Smith II Position Founder, Chairman, CEO, President COO Background Founder, Chairman, CEO, PETsMART, Co-Founder, Food.com SVP, Purolator Managing Director, Federal Express (12 years) CEO, Home Delivery Network, CEO Transceiver Network Director & SVP, Comdata Network COO, Home Delivery Network, Founder, Restaurant Marketing Group President, Dine 11 and Landsoft Holdings, Developer of Delivery Magic Logistic System Co-founder, Food corn; Principal _nVarious Ventures SVP Sales, Aramark, Managing Director, Federal Express Head of Strategic Planmng,Visa International, Four-time CFO
Maurice Levy
George DeHaven
SVP New Market Development, D_rector SVP Operations
Scott J. Oliver
Clement Lee
VP Core Logistics Technology, D_rector,Founder Founder, SVP Business Development SVP Sales/Marketing
James Brimhall
Alan Gohlke
Harry Cummins III
CFO SVP Finance & Administration Treasurer
George Stephens
Partner, BDO Siedman; Sr. Manager E&Y, S.E C Compliance & Regulatory Accounting VP, Bnnker International and Cheesecake Factory, Inc., Human Resources & Operations Carter Hawley Hale, Hambrecht & Quist; Partner, Rubicon Ventures
W_lhamStreitberger
VP Human Resources
Rusty Hale
Director, Founder
Danny A, Zottoli, Jr
Director
President, Spencer Trask Internet Group, Former President, Moody's Financial Information Services General Partner, Edelson Technology Partners
Harry Edelson
Director
Samantha McCuen
Director
Managing Director, Sandier Capital Management