Section 326-USA PATRIOT Act Customer Identification Program

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AN INFORMED DISCUSSION Achieving Sustainability,
Scale, and Impact in Community Development Finance
April 21 and 22, 2005
Chicago, IL
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CCA Global Partners
the power to do more
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• No one can be the best at everything. But when
  all of us combine our talents, we can and will be
  the best at virtually anything.
• - Dan Zadra

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• The best hope of solving all our problems lies in
  harnessing the diversity, the energy, and the
  creativity of all our people.
• - Roger Williams

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CCA Global Partners
Retail Sales / Billions (USD)

• Leader in the retail industry
• Network gross sales of 8 billion

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Our Growth
Number of Stores Worldwide

• Grown from a few member stores in 1985 to over
  3,200 worldwide today
• We are positioned to continue our dynamic growth
  and leadership position well into the 21st
  century

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Our Growth

• 74 consecutive quarters of profitability

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Our Growth

• 100 million net worth

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Our Mission

• To provide tools, products and services to help
  our members compete successfully in their markets
  and to assist in increasing their growth and
  profitability.

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Our Model

• CCA Global Partners provides its member stores
  with a business model for success

• Management Systems
• marketing
• buying
• technology
• Maintain the lowest cost structure in the industry

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The Concept
Management
Buying
Marketing
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Support Divisions
Companies
Carpet One USA
Product Merchandising
The Biking Solution
Marketing Advertising
Flooring America
Education Training
Lighting One
Human Resources
Finance Accounting
Tuxedo America
Buying
International Design Guild
Membership Recruiting
Member Services
ProSource
Stone Mountain/GCO
Legal
Floor Expo
Rug Decor
Meeting Services
CCA International
National Accounts
Carpet One Canada
Insurance
National Programs
Real Estate
Flooring One
Lenders One
Advance Carpet One
Information Technology
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Creating the Magic Zone

• National Programs
• Real Estate Services
• Store Design
• National Accounts
• Information Technology
• Human Resources Hiring
• Product Merchandising
• Marketing Advertising
• Buying
• Member Services
• Training
• Research

• Best Service
• Straight-shooters
• Innovative
• Respects and likes their customers
• Honest
• Confident
• Real People
• Smart Business People
• Know Product
• Staff Works Like a Team

Empathetic Owner Staff
Professional Training
Maximization of Profits
Owners
CCA
Professional Knowledgeable
World-Class Marketing
Growth of Business
Increase Customers Profit
Lower Operational Costs
Passion for Business
Magic Zone
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Our Focus

• Conversion franchising in the mainstream retail
  segment

• Franchise creation in the other market segments

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What We Do For Our Member Stores

• Negotiate and purchase product at competitive
  prices

• Merchandising systems
• Advertising and marketing programs
• Technology solutions
• Negotiate and secure locations
• Education, sales training and sales management

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What We Do For Our Member Stores

• National Programs

• National Accounts
• Store Design
• Research
• Real estate

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Our membership stores are recognized as the
mostsuccessful, the most profitable and the
bestmanaged in their industry
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Flooring Retail North America
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• More than 976 stores worldwide and growing
• Full service specialty stores

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Building Brands

• CCAs exclusive brands meet consumer needs

• Carpet One brand recognition grew from 3 in 1992
  to 41 today, and is number one in its category
• Liz Claiborne has 95 consumer recognition
• LEES For Living is the number three most
  recognized flooring brand
• Good Housekeeping has a 99 recognition

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• More than 451 stores worldwide and growing
• Full service specialty stores

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High-End Flooring
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• 108 showrooms and growing

• Focus on decorative and upscale retail market
• Single-source access to finest flooring products
  from all over the world

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Factory Outlet - Flooring
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• 126 stores in U.S. and growing rapidly

• Taking advantage of off-priced shopping trend
• Provides reduce pricing in factory outlet
  environment
• Reduces overhead expenses and other costs

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• Offers a wide selection of area rugs through 26
  outlet mall stores

• To capitalize on the fastest growing segment of
  the floor covering industry

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Residential Builders - Flooring
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• Membership representation in 22 of the top 25
  builder markets

• Installs flooring in one out of every three new
  homes in America
• 120 locations

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Wholesale Flooring
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• More than 144 showrooms in U.S. and Canada

• Serves the flooring resellers
• builders
• designers
• installers
• contractors
• Members-only showroom concept

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Retail International - Flooring
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• Carpet One retail stores in Australia and New
  Zealand with 90 stores

• Full service floor-covering retail stores

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• A joint venture of CCA Global and Associated
  Independent Stores

• Largest independent buying group in the U.K. with
  over 226 locations

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Residential and Commercial Lighting
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• Network of showrooms carrying high quality
  residential lighting and home furnishing
  accessories

• 103 locations in the U.S.

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Mortgage Aggregator
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• One of the largest aggregators of mortgage money
  in the U.S.

• 40 billion in annual mortgage volume
• Uses the combined strength of its members to
  negotiate exceptional terms on products and
  services
• 515 Locations

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Formalwear
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• A cooperative of premier independent bridal and
  mens formalwear retailers

• 264 locations throughout the U.S.

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Biking
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• A partnership with Giant Bicycle Company, the
  worlds largest manufacturer of bicycles

• Over 230 locations throughout the U.S.

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Looking AheadCCA Global Partners

• Planning to grow to 5,400 member stores by 2008

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Growth Strategy

• We will pursue an aggressive growth strategy over
  the next 5 years that can deliver 20 growth per
  year

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We Have Built A Core Competency

• A core competency is a GROUP OF SKILLS unmatched
  by competitors that would be difficult, expensive
  or time consuming to duplicate

• A core competency is a source of sustainable
  competitive advantage

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Why We Believe We Can Grow

• We have the financial strength

• CCA has a unique business model that is of value
  in other industries
• Were strong in most business areas
• Very few franchises are skilled in the buying
  areas of the business

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We Have Deep Resources

• Our people

• Our leadership team
• Our member network
• Our experience
• Our capital financially strong
• Our information technology to come
• Our business processes

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We Have Built A Platform

• A platform is base from which we can launch new
  businesses or groups of businesses that would be
  synergistic
• Cendant
• ServiceMaster

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The Plan

• Acquire existing franchise systems or co-ops that
  are not fully meeting their franchisees
  expectations

• If there is a market void start a new
  franchise/co-op

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Possibilities Include

• Home furnishings

• Sporting goods
• Pet supply stores
• Paint Wallpaper stores
• And more!

• Bedding
• Office furniture
• Jewelry
• Building materials

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• You cannot discover new oceans unless you have
  the courage to lose sight of the shore.
• - Daniel Abraham

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• We don't have to take life the way it comes to
  us. By converting our dreams into goals, and our
  goals into plans, we can design life to come to
  us the way we want it. We can live our lives on
  purpose, instead of by chance.
• - Dan Zadra

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AN INFORMED DISCUSSION Achieving Sustainability,
Scale, and Impact in Community Development Finance
April 21 and 22, 2005
Chicago, IL
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ACCION International

• Alternative Forms of Affiliation

Livingston Parsons V.P. - Lending Model
Development Chicago Federal Reserve Bank April
21, 2005
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The ACCION Mission

• ACCION Intl - To give people the tools they need
  - micro loans and business training - to work
  their way out of poverty.
• ACCION USA To improve the lives of low
  moderate income individuals business owners by
  providing credit other financial services

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Where ACCION Works

• 28 Microfinance Partners in 21 Countries

Africa
Americas

• Mexico (2)NicaraguaParaguay (2)Peru
• Venezuela
• United States
• 3 AUSA Offices
• 5 AUSA Associate Programs

BoliviaBrazil (2)Colombia (3)Ecuador (3) El
Salvador Guatemala HaitiHonduras
Angola Benin Mozambique Nigeria TanzaniaUganda Zi
mbabwe
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ACCIONs Impact
As of December 31, 2004

• Together, ACCION and its partner microfinance
  institutions have loaned 7.6 billion to 4.7
  million microentrepreneurs since 1992, with a
  repayment rate of 97.

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Key Indicators
Key Indicators
Year End 2004
Active Borrowers 1.46 million
Active Portfolio 456.7 million
Active Portfolio 931 million
Total Amount Disbursed 839.7 million
Total Amount Disbursed 1.76 billion
of Women 65
Percentage of Women 65
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ACCIONs History
Expanding Our Reach
Active Clients
Active Portfolio
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ACCIONs Products Services
Methodology

• Initial loans for working capital
• Short-term, stepped lending
• Frequent amortization
• Innovative individual loan products solidarity
  groups

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ACCION Internationals History

• Volunteers in the field 60s
• Creating local institutions 70s
• Building local leadership
• Building a Network Expansion 80s
• Creating Financial Institutions Early 90s
• NGO Transformation Governance - Bancosol
• ACCION as Investor - Late 90s
• Gateway Fund Commercial Markets
• New Delivery Channels for Microfinance 00s
• Commercial Banks
• Consulting Services
• Service Company Partnership
• Direct lending at ACCION USA

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ACCION USAs History

• Reverse Transfer of Technology 91
• ACCION New York Created
• Building a Network Expansion Early 90s
• U.S. Associate Programs Launched
• AUSA as Technical Assistance Provider
• Model Development Role
• Creating Direct Lending Offices 01
• Centralization, Efficiency Expansion
• New U.S. Delivery Channels 03 05
• Program Consolidation
• Commercial Banks Partners
• Local Partners
• Internet

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Thank you
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AN INFORMED DISCUSSION Achieving Sustainability,
Scale, and Impact in Community Development Finance
April 21 and 22, 2005
Chicago, IL
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Robert M. Ling, Jr.Christine Neal
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Agenda

• Unified Western Grocers
• What We Do
• How We Operate
• Some Lessons Learned

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What We Do
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Unified What We Do

• Largest wholesale distributor of grocery products
  in the Western United States
• Annual sales of 3 billion
• Fortune 500 equivalent
• Broad customer base of diverse retailers
• Significant market share in retail trade areas

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Unified What We Do

• Organized and structured as a cooperative in
  1925
• There is strength in numbers
• Combined buying power of independents makes them
  competitive with large chains
• True in 1925, still true today
• Although created as a purchasing co-op, our
  business model is much broader today

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Unified What We Do

• There is skin in the game
• Our customers (Members) also are owners of the
  company
• Our equity capital comes primarily from Members

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Unified What We Do

• A Profile of our Membership
• 550 Members operating 1,500 grocery stores
• Range from single-store operators to 50-store
  operators
• Wide variety of formats
• Top 100 members account for 80 of Unified sales
• Non-members also can purchase from Unified

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Unified What We Do

• Our Mission
• Develop and maintain an efficient grocery
  distribution channel that enables independent
  retailers to compete with large self-distributing
  chains
• We are a virtual chain
• Provide the right products and services to
  independent retailers to help them grow and
  prosper over time
• Our success is dependent upon the success of the
  independent grocer

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Unified What We Do
Wholesalers
Vendors
Consumers
Retailers
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How We Operate
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Unified How We Operate

• We use economies of scale to create efficiencies
  and opportunities throughout our distribution
  channel
• We serve as the eyes, ears and mouthpiece for our
  supply channel by providing leadership,
  intellectual capital and expertise in a wide
  range of areas
• Example Hispanic growth in Southern California
• Help retailers enter underserved, lower income
  urban neighborhoods

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Unified How We Operate

• Buying Power
• Aggregating 1,500 stores into a virtual chain
  increases marketplace clout
• Better prices
• Greater promotional allowances
• Viewed by vendors as regional instead of
  local
• Provides our retailers access to a much wider
  range of products than would otherwise be
  available

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Unified How We Operate

• Warehousing/Logistics
• 4 million square feet of warehouse (conventional,
  case-pick, item-pick, mechanized, chilled,
  frozen)
• 60,000 items
• 1,000 trailers on the road
• Warehouse and transportation monitored constantly
  to keep costs low, productivity high

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Unified How We Operate

• Technology The Backbone of our
  Infrastructure
• Drives efficiency in our warehouse and fleet
  operations
• Needed by retailers to interact with warehouse
  and to operate stores efficiently
• Unified provides expertise to select and
  implement best, most efficient systems
• Scanning systems, back office, etc.

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Unified How We Operate
Vendors
Wholesaler
Consumers
Retailers
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Unified How We Operate

• Services
• Dairy/bakery manufacturing on local basis
• Retail marketing, merchandising and promotional
  support
• Insurance
• Real estate services
• Store equipment and supplies
• Member financial support

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Unified How We Operate

• We do not put tight restrictions on membership
• All are welcome
• No territorial boundaries
• Survival of the fittest
• Some Members compete with each other
• We do not attempt to predict who will be
  successful in our environment

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Unified How We Operate

• Two financial models for grocery cooperatives
• Overcharge and Big Rebate
• Basically Break-even (Unified model)
• Unifieds primary mission is to provide a
  competitive source of supply, not ROI

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Unified and Its Retailers A Successful Model
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Unified Some Lessons Learned

• Provide the infrastructure necessary to compete
  in a Wal-Mart world
• Listen to the marketplace
• Stop selling if the customer does not pay
• Hire the right people for the job
• Focus on governance and process

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The Importance of Infrastructure

• Retailers cant succeed without
• Stable supply of a wide range of products
• Prices that keep them competitive
• Bigger is better 60 of our costs
• are fixed

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The Importance of Structure

• Ownership provides an element of control and
  influence
• Helps drive commitment and loyalty
• Sense of community with other independents
• Us vs. them
• Broad, diverse membership protects against
  significant hits when any Member departs or the
  marketplace moves

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Listen to the Marketplace

• Marketplace intelligence provides a competitive
  edge
• Changing demographics
• Emerging trends
• Products, competition, technology
• Must be able to quickly change and differentiate
• Case study 1 Pro and Sons Ranch Markets

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Listen to the Marketplace
Ranch Market Phoenix, Arizona November 2004
Hispanic format circa 1980
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Listen to the Marketplace

• We listen to our customers and provide what they
  need
• Case study 2 Unifieds dairy operations
• The business world, especially at retail, is
  moving faster every day
• If we dont pay attention, someone else will

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The Wholesalers Dilemma When Not to Ship

• Our position as primary supplier gives us insight
  into retailers ability to pay us
• Dont throw good after bad know when to
  pull the plug
• Lack of discipline has hurt other wholesalers
• Credit losses are more destructive to Unified
  than the loss of a customers business
• Will take strong actions if necessary

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The Importance of Management

• Our business has become highly complex and
  diverse
• Not the simple buy-warehouse-deliver business it
  used to be
• Specialists in many areas now required
• The evolution to professional management

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Focus on Governance and Process

• Ownership by our customers breeds loyalty and
  potential conflicts
• State-of-the-art governance practices expected
  and required by our constituents
• Lenders
• Accountants
• Regulators
• Members and Customers

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Some Conclusions

• Scale matters
• Stay in touch listen
• Be disciplined
• Hire the right expertise
• Focus on governance and process

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Thank you.
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Questions?Comments?
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AN INFORMED DISCUSSION Achieving Sustainability,
Scale, and Impact in Community Development Finance
April 21 and 22, 2005
Chicago, IL