Rmc consumer goods deck 6 1 10

Confidential Report Prepared for Filltek June 3, 2010

Table of Contents Sections Outsourcing factors Who We Are Partnership Success How We Do It

Commonly We Hear… How do I recover more on my end of season inventory? Does it make sense to manage short lots on the website? Do your clients need an effective way to deal with slow movers? Do closeouts on the website cheapen the brand? Do end of season goods interfere with new product introductions? Are you running out of space?

Outsourcing Inhibitors The trust issue Brand protection No one wants to deal with small lots Upside down on the balance sheet It’s embarrassing

To Be Updated - What should the title be?

Outsourcing Drivers Generate cash from stale inventory Free up warehouse space Focus on core competencies Simple, consistent solution to age old problem

Who We Are 1,000,000 unique products sold annually 400,000 sq. ft. of processing and retail space 20,000 customers per week 200 employees 90 years executive experience in asset disposition Centrally based in Kansas City

Proven Business Model Long-term partnerships with world class distributors and freight carriers Strategic, systematic process and E.D.I. Progressive culture willing to take risks Proactively invest to sell targeted inventories Skilled Execution Protect client/brand sensitivities Increase recovery Visible metrics and reporting Manage professionally as a core competence

Target Strategic Partner Generate excess inventory with market value of $1M+ annually Diverse SKU’s Consumer products Variable quantities

Partnership Success Needed inventory recovery option Generated over $605,000 in revenue ( Joe to check) Tripled per-piece revenue Reduced warehouse inventories and related costs Partnerships that build revenue. Performance that builds trust.

Partnership Success Needed to increase average return per freight bill and generate more revenue Handle X (Blaine) Increase of 71% ( need dollars) per freight bill Average recovery per salvage trailer increased by 58% Partnerships that build revenue. Performance that builds trust.

How We Do It Partnerships that build revenue. Performance that builds trust. Optimize Sales Venues Major Facilities Top Notch Inventory Control System Project Management and Fast Transition Management Team

Primary Processing Center 310,000 square feet 100+ trailer capacity per week X shipments per week X SKU’s? Parents per week (Blaine)

Optimize Sales Venues sales of 1,000,000+ unique products annually. 20,000 customers per week. cargo largo retail store

Online Sales Designated Top 100 Seller 3,000 buyers per week 99.5% positive feedback rate Recognized as Top Holiday Seller in 2009 2,000 buyers per week on 98% positive feedback rate www.cargolargo.com 5,000 visits per week

Brick and Mortar Retail Two Midwest locations Sales in excess of $350 per square foot Over 26,250 customers per week Prices range from $.50 - $34,000 Diverse Product and Customer Demographic

Other Sales Venues Wholesale 100’s of active buyers Bid Sale Over 1000 lots sold per week 80% sell thru Live Auctions ? ? Tech Sales ?

Integrate with client systems and services via API/standard methods Leverage product history in 4.7 million SKU’s ? ? Patented Inventory Control System

Dee Pack - President Founded in XXXX Responsible for X, X & X. Dave Myers - Chief Operating Officer Responsible for X, X, & X. Joe Magdziarz - Director of Operations Responsible for X, X, & X. Blaine Bogue - Director of Retail Operations Responsible for X, X, & X. Management Team

Rmc consumer goods deck 6 1 10

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Editor's Notes