<PAGE> 1
Filed by Webvan Group, Inc.
Pursuant to Rule 425 under the
Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
Subject Company: HomeGrocer.com, Inc.
Commission No. 000-29789
SLIDES USED DURING
INVESTOR PRESENTATIONS
<PAGE> 2
WEBVAN
- Enormous market opportunity ... and Growing
- Total shopping experience ...Same Day
- Unique, proprietary distribution system ...+Alternative
- Highly scalable business ...A Learning Organization
- Superior, attractive financial model ...It Works
- Experienced management team ...Getting Better
[WEBVAN LOGO]
2
<PAGE> 3
THE WEBVAN MISSION
"THE LAST MILE FOR E-COMMERCE"
[GRAPHIC OF WEBVAN DELIVERY TRUCK]
[WEBVAN LOGO]
3
<PAGE> 4
TOTAL SHOPPING EXPERIENCE
[DIAGRAM COMPARING WEBVAN TO "TODAY'S E-TAILER"
FROM SALES ORDER AND FULFILLMENT TO DELIVERY AND
CUSTOMER SERVICE]
[WEBVAN LOGO]
4
<PAGE> 5
WEBVAN'S VALUE PROPOSITION
[DIAGRAM]
CHOICE, CONVENIENCE, HIGHEST QUALITY PRODUCTS,
COMPETITIVE PRICES
[WEBVAN LOGO]
5
<PAGE> 6
REVOLUTIONARY ORDER
FULFILLMENT MODEL
[GRAPHIC]
WEBSTORE
[GRAPHIC] [GRAPHIC]
Customers DC
[GRAPHIC] [GRAPHIC]
Van Truck
[GRAPHIC]
Station
[WEBVAN LOGO]
6
<PAGE> 7
WEBVAN OPPORTUNITY
U.S. MARKET $1.6 TRILLION
Scale and Efficiency... ...Expanded Customer Base... ... Broader Offering
<TABLE>
<S> <C> <C>
[PIE CHART SHOWING [PIE CHART SHOWING [PIE CHART SHOWING
GROCERY/DRUG OFFERINGS] WEBVAN@WORK AND GROCERY/ SERVICES, WEBVAN@WORK
DRUG OFFERINGS] AND GROCERY/DRUG OFFERINGS]
Market Size Market Size Market Size
$655B $800B $1.6T
[WEBVAN LOGO]
</TABLE>
7
<PAGE> 8
[WEBVAN LOGO]
GROCERY MODEL
8
<PAGE> 9
POWERFUL BUSINESS MODEL -
GROCERY
<TABLE>
<CAPTION>
WEBVAN BEST IN CLASS
------ -------
<S> <C> <C>
Revenues $ 300M $ 16.7M
Gross Margin 32% 32%
Distribution Center & G&A % 7%
Store -- 18%
Delivery % --
Total Operating Expenses 20% 25%
Operating Margin 12% 7%
Rev per Cap Ex $ 9.4x 3.5x
</TABLE>
[WEBVAN LOGO]
9
<PAGE> 10
CUSTOMER REQUIREMENTS
[BAR GRAPH]
ACTIVE CUSTOMERS STEADY STATE METRICS
---------------- --------------------
160,000 Orders/Day 8,000
87,000 Operational Days 7
47,000 Order Size $ 103
Q4 Q1 Q2
[WEBVAN LOGO]
10
<PAGE> 11
BAY AREA - CUSTOMER FREQUENCY
REGISTRATION -- TRIAL -- REPEAT -- INCREASE SIZE AND PROFIT -- REWARD AND REFER
STRANGERS -- CUSTOMERS -- FRIENDS -- LOYALISTS -- EVANGELISTS
[BAR GRAPH SHOWING INCREASES IN EACH CATEGORY ABOVE FROM
Q3 99 TO Q4 99 TO Q1 00]
[WEBVAN LOGO]
11
<PAGE> 12
ORDER SIZE RAMP
[BAR GRAPH]
STANDARD AREA MODEL - BAY ORDER SIZE LEVERS
------------------------- -----------------
$103.0 o Customer Mix
$97.0 o Category Management
$90.3 o Expand Product Offering
Q1 Q2 Model
[WEBVAN LOGO]
12
<PAGE> 13
GROSS MARGIN TARGET
[BAR GRAPH]
STANDARD AREA MODEL GROSS MARGIN LEVERS
------------------- -------------------
32.0% Strategic Alliances +3-5%
28.3% Product Mix +1-3%
25.4% Reduced Spoilage +2-3%
Q1 Q2 Model Scale +1-3%
[WEBVAN LOGO]
13
<PAGE> 14
TECHNOLOGY ENABLES
HIGH INVENTORY TURNS
[BAR GRAPH]
INVENTORY TURNS TURNS LEVERS
--------------- ------------
26.4 Virtual Inventory
25.0
Cycle Compression
24.0
Q1 Q2 Model Predictability
[WEBVAN LOGO]
14
<PAGE> 15
Key Metrics
<TABLE>
<CAPTION>
----------------------
Q1 Q4
----------------------
<S> <C> <C>
Revenue (million) $ 28.3 $ 16.3
----------------------
Active Customers 160,000 87,000
----------------------
Average Order Size $ 91.00 $ 90.33
----------------------
Repeat Order Rate 78% 78%
----------------------
Gross Margin 28% 25%
----------------------
Inventory Turns 26x 25x
</TABLE>
[WEBVAN LOGO]
15
<PAGE> 16
Strategic Alliances
Promotion ...
----------
Bay and Atl Combined
[LINE GRAPH SHOWING EXAMPLE OF A PROMOTION OVER TIME]
... Payoff
------
- Creates Customer Penetration
- New Way to Shop
- Creates Customer Value
- Trusted Brands
- Easy to Repurchase
- ROI of Promotion
- Increases Volume
- Creates Loyalty Over Time
Relationships with 11 of Top 20 CPG's...18% of Q2 Revenue...
Comprehensive Solution...Win/Win
[WEBVAN LOGO]
16
<PAGE> 17
[WEBVAN LOGO]
Beyond Grocery
[WEBVAN LOGO]
17
<PAGE> 18
Beyond Grocery
- Capitalize on Loyal Grocery Customers
- Leverage Existing Assets and Marketing
$$s
- Expand Market ...+$400 Billion
Opportunity
- Smooth Demand and Create Operating
Efficiencies
[WEBVAN LOGO]
18
<PAGE> 19
Leveraging Our Asset
The Investment ... ... The Opportunity
Investment $30-35(*)
Bay Area Market
Cust Acq. $15-20
------
Total $45-55
w@w
Distribution Center ... Leverage Competencies
Satellite $11B
... Expand Served Market
Last Mile
--------------------
- Grocery Model
Drug
- Frequent Contact [ARROW TO RIGHT]
- Pick Capacity HMR
- Delivery Infra.
$14B
Grocery
Technology Platform
Expanded Market Size ... Align Capacity with Opportunity
(*)Estimated average cost of constructing/equipping 26 DCs
[WEBVAN LOGO]
19
<PAGE> 20
Last Mile Opportunity
<TABLE>
<CAPTION>
WEBVAN HOME APPAREL CONSUMER TOYS BOOKS PETS MUSIC
MARKET IMPROVEMENT ELECTRONICS
<S> <C> <C> <C> <C> <C> <C> <C>
$655B $120B $100B $75B $30B $30B $25B $20B
</TABLE>
- Operational Efficiency/Density
- Frequency of Contact
- Build Customer Relationships
Additional Market Opportunities: $400 Billion
[WEBVAN LOGO]
20
<PAGE> 21
Satellite Launch - Sacramento
<TABLE>
<CAPTION>
[CALIFORNIA STATE MAP]
85 Miles - 2 Hour Drive Bay Area Sacramento
-------- ----------
<S> <C> <C> <C>
- Market Size $10.5B $5.2B
- #HH 2.5M 1.1M
- Target Demo (>$60K) 50% 40%
- Service Area (Sq. Miles) 800 211
- Target HH Density 1,641 1,792
- Delivery Hours 15 7
- Days per Week 7 5
</TABLE>
Expand Served Market ...Cherry Pick Areas Served
Leverages Infrastructure ...Limited Incremental Cost
Smooths Demand...Day-to-Day Variation
[WEBVAN LOGO]
21
<PAGE> 22
Satellites - National Presence
<TABLE>
<CAPTION>
Mkt Size HH's
-------- ----
<S> <C> <C>
2000 Coverage - 6 DC's $38.1B 10.5M
- Satellites
- Philadelphia...from Balt. $11.3B 2.7M
- Wash. DC...from Balt. $8.5B 2.0M
- Sacramento...from Bay Area $5.2B 1.1M
- Portland...from Seattle $3.7B 1.0M
- Charlotte...from Atlanta $3.3B 859K
- Milwaukee...from Chicago $3.2B 800K
- New York...from N.J. ??? ???
- Total Satellite Coverage $35.2B 8.5M
- Increase in Mkt. Coverage 92% 81%
</TABLE>
Significant Opportunity ... Working Interstate Challenges
eg., Regulated SKU's Local Brands/Pricing
[WEBVAN LOGO]
22
<PAGE> 23
Webvan @ Work
<TABLE>
<CAPTION>
Web Store
Consumer Business
-------- --------
<S> <C> <C> <C>
[WEBVAN@ - Active Customers 100K 3K
WORK LOGO] - Shopping Frequency 15%more often
- Avg. Order Size $90 $higher
</TABLE>
Expand Served Market ...Attractive Value Proposition
Efficient Marketing $ ... Access Customer Employee Base
Leverage Infrastructure...Limited Incremental Spend
[WEBVAN LOGO]
23
<PAGE> 24
Productivity - Eliminating
Variation
Satellites... Webvan@Work
Day-to-Day Variation ...Hour-to-Hour Variation
% Total Channel Orders
Sacramento
Orders per Day
<TABLE>
<S> <C>
[BAR GRAPH SHOWING DELIVERY [BAR GRAPH SHOWING WEBVAN@WORK
TO SACRAMENTO ON SPECIFIED DAYS OF THE WEEK DELIVERIES AT SPECIFIED TIMES OF DAY TO
TO UTILIZE CAPACITY DUE TO DEMAND VARIATIONS] UTILIZE CAPACITY DUE TO DEMAND VARIATIONS]
</TABLE>
Capacity Capacity
[WEBVAN LOGO]
24
<PAGE> 25
[WEBVAN.COM LOGO]
National Footprint
[WEBVAN LOGO]
25
<PAGE> 26
National Footprint
Top 15 Markets
Grocery & Drugstore Market = $655Bn Market Size ($Bn)
----------------------------------- ------------------- ----------
[BAR GRAPH] New York/New Jersey $37
TIER 1(1-26)=48% Los Angeles 29
TIER 2(27-130)=39% Chicago 17
TIER 3 = 13% San Francisco 14
Philadelphia 14
Washington DC 10
Detroit 10
Boston 12
Dallas 11
Atlanta 9
Seattle 8
Houston 8
Denver 7
Orange County 5
Baltimore 5
TOP 15 MARKETS $196
- 13 markets by end of `00
- 15 markets by June `01
- 26 markets by end of `02 ??
- Webvan will cover 50% of the Grocery and Drug market by the end of
2002 ... Capital Market Dependent!
[WEBVAN LOGO]
26
<PAGE> 27
HomeGrocer Acquisition
- Leverages Market Presence
- Consolidates the Industry
- Improves Operational Flexibility/
Execution
- Leverages Human Resource Talent
Base
- Capitalizes on Synergistic Opportunities
[WEBVAN LOGO]
27
<PAGE> 28
Combined Presence
[US MAP WITH THE FOLLOWING GEOGRAPHIC AREAS INDICATED: PORTLAND, SEATTLE,
SACRAMENTO, SAN FRANCISCO, ORANGE COUNTY, LOS ANGELES, SAN DIEGO, DALLAS,
CHICAGO, NEW JERSEY/NYC/CT, BOSTON, BALTIMORE, WASHINGTON, D.C., ATLANTA]
June '01
--------
- 15 Markets(*)
- Mkt.Size: $133B
- 33 million HH's
(*)Facilities in 12 markets
if capital for 2 more DCs
[WEBVAN LOGO]
23
<PAGE> 29
Atlanta Update -
Learning Organization
<TABLE>
<CAPTION>
Key Metrics
-----------
Bay Area Atlanta
-------- -------
<S> <C> <C>
Customers at Launch 7500 10,000
Penetration 32% 44%
Capacity @ Launch 500 1200
Scale
- 7 day delivery 8 Months Launch
- 2nd shift 5 Months <1 Month
1,000 Orders per Day 4 Months 2 Weeks
Last Mile SKU's @ Launch 1000 2000
</TABLE>
[WEBVAN LOGO]
30
<PAGE> 30
Webvan
- Enormous market opportunity ... and Growing
- Total shopping experience...Same Day
- Unique, proprietary distribution system ...+Alternative
- Highly scalable business ...A Learning Organization
- Superior, attractive financial model ...It Works
- Experienced management team ...Getting Better
[WEBVAN LOGO]
32
<PAGE> 31
[WEBVAN LOGO]
33
<PAGE> 32
National Footprint
[PYRAMID CHART]
Launch
LOCAL - National branding, local flavor
Customer Acq.
- CPG and Wholesaler alliances
Merchandise
NATIONAL - Real Estate contracts
Infrastructure - Bechtel relationship
- Scalable
Technology Platform - Replicable
[WEBVAN LOGO]
34
<PAGE> 33
Combined Market Presence
<TABLE>
<CAPTION>
Rollout Plan - Next 12 months(June 30)
Number of Total Grocery & ------------------------------------------
Households With Drugstore % of Adults Webvan Robin Combined Presence
Rank DMA Income > $75k (000s) Market Online 'Thru June '01 ----- ------------------
---- --- -------------------- ------ ------ --------------
<S> <C> <C> <C> <C> <C> <C> <C>
1 New York/New Jersey 1,879 $37 44% X X
2 Los Angeles 1,057 29 49% X(2) X X
3 Chicago 861 17 45% X X(2) X
4 San Francisco 717 14 56% X X(2) X
5 Philadelphia 636 14 42%
6 Washington DC 575 10 60% X X(2) X
7 Boston 555 12 47% X X
8 Detroit 442 10 39%
9 Dallas 425 11 50% X(2) X X
10 Atlanta 395 9 45% X X(2) X
11 Houston 366 8 49% X
12 Seattle 345 8 53% X X X
13 Minneapolis 325 8 45%
14 Denver 277 7 49% X
15 Orange County 262 5 49% X(2) X X
16 Cleveland 253 7 37%
17 Hartford 232 5 41%
18 Baltimore 220 5 46%
19 Phoenix 214 7 43%
20 Miami 201 7 41%
21 St. Louis 200 6 41%
22 Portland 190 5 48% X(1) X(1)
23 Tampa/St Pete 188 7 37%
24 San Diego 187 5 47% X
25 Sacramento 182 6 46% X(1) X(1)
26 Indianapolis 177 5 42%
27 Milwaukee 166 4 39%
$283 (1) Satellite Location
National Average (Top 50) 43%
(2) Behind first mover
</TABLE>
Expands served market by 190% immediately....88% in 12 months
Rationalizes resources
Provides alternative design for faster rollout option in
critical/second tier markets
[WEBVAN LOGO]
35
<PAGE> 34
Target Customer
Average Consumer Spending Per Avg. HH's in Top 30 Mkts.
----------------------------- -------------------------
Year
---- Income > $75K
-------------
[BAR GRAPH SHOWING THAT 45% OF
[BAR GRAPH] THE 400,000 AVERAGE HOUSEHOLDS
IN TOP 30 MARKETS THAT HAVE
<TABLE> INCOME GREATER THAN $75,000 ARE
<CAPTION> INTERNET CONNECTED.]
AVG. CONSUMER CONSUMER >$75K
<S> <C> <C>
GROCERY $3,425 $5,480
DRUG $ 770 $1,230
HMR $ 805 $1,290
</TABLE>
[WEBVAN LOGO]
36
<PAGE> 35
Acquisition Costs
Cost ... ... Payback(*)
-------- --------------
(*)For Target $5000/year customer and 12% EBIT
[LINE GRAPH]
<TABLE>
<CAPTION>
Q3 Q4 Q1 Q2
<S> <C> <C> <C> <C>
INCREMENTAL PROFIT >$15 >$35 >$45 $50
PAYBACK-MONTHS > 14 > 4 > 4 > 2
</TABLE>
[BAR GRAPH]
<TABLE>
<S> <C> <C> <C>
Q3 Q4 Q1 Q2
$250 >$150 >$200 >$125
</TABLE>
Strong Customer Growth ... Increased Brand Recognition...
More Efficient Spend ... Evangelists
[WEBVAN LOGO]
37
<PAGE> 36
THE FOREGOING COMMUNICATION IS BEING FILED PURSUANT TO RULE 425 UNDER THE
SECURITIES ACT OF 1933 AND DEEMED FILED PURSUANT TO RULE 14A-12 UNDER THE
EXCHANGE ACT OF 1934. THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF SALES
OF SECURITIES. SHAREHOLDERS OF HOMEGROCER.COM, INC. AND OTHER INVESTORS ARE
URGED TO READ THE PROXY STATEMENT-PROSPECTUS WHICH WILL BE INCLUDED IN THE
REGISTRATION STATEMENT ON FORM S-4 TO BE FILED BY WEBVAN GROUP, INC. IN
CONNECTION WITH THE MERGER BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION. AFTER
SUCH DOCUMENT IS FILED, IT WILL BE AVAILABLE FREE OF CHARGE ON THE SEC WEBSITE
AT WWW.SEC.GOV AND FROM WEBVAN GROUP, INC. AND HOMEGROCER.COM, INC. THROUGH THE
CONTACTS LISTED BELOW. COPIES OF THE DOCUMENT FILED HEREWITH MAY BE OBTAINED
FROM THE CONTACT AT WEBVAN GROUP, INC. LISTED BELOW.
CONTACTS:
Bob Okunski
Webvan Group, Inc.
650.627.3944
Dan Lee
HomeGrocer.com
425.201.7848