2014 FMG Symposium January 23-25 Las Vegas, Nevada

HDA HOLDINGS

The White Glove Delivery Solution

Dick Merians – President & CEO

A Tsunami is Coming Are You Prepared?

HDA Holdings 1

What are the Problems?

Traditional Channel

Excessive inventory limits open-to-buy

Competition from Internet sales

Margin pressure

Internet Channel

Free delivery - curbside or to the “first dry area”

No nationwide White Glove delivery network

High returns & damage rates

HDA Holdings 2

Both Channels Have Unique Supply Chain Issues to Address

The Future of the Industry

Offer More SKUs

Zero Based

Inventory

Reduce Your

Prices

Increase Your

Margins

Provide 3-5 Day

Delivery

HDA Holdings 3

What is the Solution

Leverage Manufacturers existing warehouse capacity

Create a nationwide, integrated end-to-end distribution and logistics platform

Advanced technology and Class A delivery teams will insure on time and intact deliveries

Increase Retailers open-to-buy

Zero Based Inventory program reduces costs

HDA Holdings 4

Existing Logistics Flow

HDA Holdings 5

Manufacturers Retailers Customers

Line-Haul White Glove Delivery

HDAH Logistics Flow

HDA Holdings 6

A B

1

2

3

4

1

2

3

4

Manufacturers Customers

Cross-Dock Cross-Dock

Line Haul

Deliveries in 3-5 Days

Platform Roll-Out

HDA Holdings 7

HDAH Coverage Map

How Can You Become More Competitive?

Zero Based Inventory Program

Line-haul from Manufacturer

Scan & Track All Items

Only Class A Delivery Teams

Direct to Customers Homes

HDA Holdings 8

HDA Holdings

The White Glove Delivery Solution