would you invest in the fastest growing or most profitable segment?What method will Starbucks use to translate its foreign subsidiaries financial statements so that they can be consolidated?

Actuals Forecasts Year 2010 2011 2012 Year+1 Year +2 Year +3 Year +4 Year +5 Sales (in millions): Company-operated stores 8,963.5 9,632.4 10,534.5 11,574.1 12,778.1 14,149.1 15,691.7 17,385.1 2,227.2 icensed stores 875.2 1,007.5 1,210.3 1,367.4 1,556.3 1,763.2 1,985.8 PG, foodservice and other 868.7 2,425.3 3,374.8 1,060.5 1,554.7 2,021.1 2,789.1 3,068.0 11,700.4 18,701.4 22,987.1 14,962.6 Revenues 10,707.4 13,299.5 16,759.8 20,745.5 13.7 % 12.5 % 10.9 % ate of change 10.8 % 9.3% 12.0% 11.6% Implied sales growth rates. Sales by Segment and Type: Starbucks: Sales Forecasts by Segment and Type 2010 2012 2013 2014 2015 2016 2017 2011 Company-operated stores 8,963.5 9,632.4 10,534.5 11,574.14 12,778.098 14,149.091 15,691.674 17,385.07 Growth rates 7.5% 9.4% 9.9% 10.4% 10.7 % 10.9% 10.8% Number of company stores 8,866 9,007 9,405 9.938 10,471 11,104 11,737 12.420 1.197 Sales/Average Store Sales Growth /Average Store 1.007 1.078 1.144 1.252 1.312 1.374 1.439 4,6% 4.8% 4.8% 7,0% 6.2% 4.6% 4.7% icensing 875.2 1,210.3 1,367.38 1,556.349 1,763.151 1,985.824 2,227.17 1.007.5 13.0 % 20.1% Growth rates 15.1% 13.8% 13.3% 12.6% 12.2% Number of company stores 7,992 7,996 8,661 9,428 10,195 10,962 11,729 12,546 Sales/Average Store 0.112 0.126 0.145 0.151 0.159 0.167 0.175 0.183 Sales Growth /Average Store 13.0% 15.3% 4.0% 4.9% 5.1% 5.0% 4.8% PG, Foodservice and Other 1,554.7 2,021.11 868.7 1,060.5 2,425.332 2,789.132 3,068.045 3,374.849 10.0 % Growth rates 22.1% 46.6% 30.0 % 20.0% 15.0% 10.0% 18,701.4 10,707.4 13,299.5 et Revenues 11,700.4 14,962.6 16,759.8 20,745.5 22,987.1 Starbucks: sles Forecasts by Segmentand Type 2014 Starbucks: Store Operating Data 2013 2015 201 2010 2011 2012 2016 Americas Expectations for net new stores to be opened each year Net new stores opened during the year Company operated 300 300 300 600 30 3pm 234 300 300 300 Licensed 111 268 270 300 30m -225 600 Total 504 Tetal stores Cempany operated 7 580 7423 745T 8157 8.457 8757 9.053 5044 4,776 5046 12.903 5946 Licensed 5346 5646 6246 6.54m Total 12.624 12.399 13.503 14.103 14.703 15.303 15.90 Revenues- 9859627 12.696.676- 13.780.53 Cempany-operated 3655 10,740 492 11.684 794 1.358 Revenues per storelyear 1.173 1.231 1293 1425 141 5.0 % 50 Growth rate 50% 50% 50% 1372.6m 021 Licensed 676.7 82580 917.41 1,018.897 1.128.239 1.245.969 Revenues per storelyear 168 0.177 0.185 0.195 0204 Growth rate 5% 5% 5% EMEA Expectations for net new stores to be opened each year Net new stores opened during the year Company-operated 33 33 11 67 47 101 Licensed 100 36 104 100 10m Tetal 111 100 100 Total stores Company-operated 47 $72 15 981 1,014 104 s07 1,054 Licensed: 1.121 1.188 1,255 1.32 Tetal 2269 2.36 1654 1758 1869 1.969 2.063 2 181 Revenues Company-oparated: Revenues per storelyear a05.5 1,001.9598 1,049 14 1.108.04 1.168.17 1,231.9 1.115 1.14 1.172 1.104 1.12 1.19m Growth rate: 0% 13% 1% 2%. 2% 29 170.930 Licensed 112.25 1395 165 243 193.1090 207.77m 0 149 Revenues per storelyear: 0.15 0.152 0.155 .158 .16 Growth rate 1% 1% 2% 2 CAP Expectations for net new stores to be epened each year Net new stores opened during the year Cempany operated 36 73 3sm 154 200 200 300 300 400 294 00 400 Licensed: 75 193 400 45m 600 Total 260 440 600 700 70 Tetal stores 1,666 21 Company-operated 435 $12 1.066 136 2,334 1421 32 Licensed 2,141 2428 1028 422 4,67 Total 2.580 284 3.294 3894 4494 5.134 S84 Revenues 988.40 1,356 257 1824.128 Cempany-operated Revenues per storelyeart 361.4 489 2 712.554 2372 84 831 a.93 1.023 1.115 1.205 1.28m 7% Growth rate: 15% 12% 10% 26437 455.974 S46746- Licensed 1909 2322 372 203 646 74m 0094 Revenues per storelyears Growth rate 0105 0.115 0.126 0136 14m 12 % 10% I% 7% CPG Foodservice, and Other ncluding Americas, EMEA, CAP) 1,060 5 3068.045 10 % Ravenues: 1.554-7 s68.7 2021.115 2425 332 278.132 3.37484 Growth rates 10 22.1% 46.6% 30% 20% 15% Forecast Development: Capital Expenditures, Property, Plart and Equipment, and Deprbciation CAPEX Foredasts: Capital Expenditures: Year +4 Year +5 2010 2011 2012 Year+1 Year +2 Year +3 CAPEX: PP&E Acquired 441 414 851 PP&E Sold C 0 414 1,660 Net CAPEX 441 851 1,200 1,341 1,496 1,839 Net CAPEX as a percent of: Gross PP&E 7.7% 7,0% 13.8% 17.4% 16.5% 15.8% 15.2% 14.6% 8.0 % 3.5% 8.0% 8.0% Revenues 4.1% 6.4 % 8.0% 8.0% 4.7% Property, Plant and Equipment and Depreciation Property, Plant and Equipment and Depreciation Forecasts: PP&E at cost: 2011 Year +5 2010 2012 Year+1 Year +2 Year +3 Year +4 Beg. balance at cost: 6,903 8,103 9,444 10.940 12,600 Add: CAPEX forecasts from above: 1,200 1,341 1,496 1,660 1,839 End balance at cost: 6,163 14,439 9,444 5,889 6,903 8,103 10,940 12,600 Accumulated Depreciation: Beg. Balance: 4,244 4,964 -5,804 -6.776 -7,896 875 Subtract: Depreciation expense forecasts from below: -720 -839 972 1,120 3,808 4,244 End Balance: -3,472 -7,896 4.964 5,804 -6,776 8,770 2,355 3,139 3,640 4,164 4,704 5,668 PP&E-net 2,416 2,659 Depreciation Expense Forecast Development: Depreciation expense forecast on existing PP&E: 205 Existing PP&E at cost: 6,903 613 613 613 613 818 205 Remaining balance to be depreciated. 2,659 2.045 1,432 PP&E Purchases: Depreciation expense forecasts on new PP&E: Capex Year +1 1,200 107 107 107 107 107 Capex Year +2 1,341 119 119 119 119 Capex Year +3 1,496 133 133 133 Capex Year +4 1,660 147 147 Capex Year +5 1,839 163 1,120 875 Total Depreciation Expense 839 972 720 Portion Reported Separately on Income Statement (95 % of total) Portion Reported within COGS on Income Statement (5 % of total) 684.12 797.319 923.631 1,063.749 830.923 36.006 41.964 48.612 55.987 43.733 Depreciation methods: 2010 2011 2012 PPE at Cost 5,889 6,163 6,903 Avg Depreciable PPE 6,026 6,533 Depreciation Expense mplied Avg. Useful Life in Years 541 550 581 11.3 11.0 Useful Life Forecast Assumption: yearsy Actuals Forecasts Year 2010 2011 2012 Year+1 Year +2 Year +3 Year +4 Year +5 Sales (in millions): Company-operated stores 8,963.5 9,632.4 10,534.5 11,574.1 12,778.1 14,149.1 15,691.7 17,385.1 2,227.2 icensed stores 875.2 1,007.5 1,210.3 1,367.4 1,556.3 1,763.2 1,985.8 PG, foodservice and other 868.7 2,425.3 3,374.8 1,060.5 1,554.7 2,021.1 2,789.1 3,068.0 11,700.4 18,701.4 22,987.1 14,962.6 Revenues 10,707.4 13,299.5 16,759.8 20,745.5 13.7 % 12.5 % 10.9 % ate of change 10.8 % 9.3% 12.0% 11.6% Implied sales growth rates. Sales by Segment and Type: Starbucks: Sales Forecasts by Segment and Type 2010 2012 2013 2014 2015 2016 2017 2011 Company-operated stores 8,963.5 9,632.4 10,534.5 11,574.14 12,778.098 14,149.091 15,691.674 17,385.07 Growth rates 7.5% 9.4% 9.9% 10.4% 10.7 % 10.9% 10.8% Number of company stores 8,866 9,007 9,405 9.938 10,471 11,104 11,737 12.420 1.197 Sales/Average Store Sales Growth /Average Store 1.007 1.078 1.144 1.252 1.312 1.374 1.439 4,6% 4.8% 4.8% 7,0% 6.2% 4.6% 4.7% icensing 875.2 1,210.3 1,367.38 1,556.349 1,763.151 1,985.824 2,227.17 1.007.5 13.0 % 20.1% Growth rates 15.1% 13.8% 13.3% 12.6% 12.2% Number of company stores 7,992 7,996 8,661 9,428 10,195 10,962 11,729 12,546 Sales/Average Store 0.112 0.126 0.145 0.151 0.159 0.167 0.175 0.183 Sales Growth /Average Store 13.0% 15.3% 4.0% 4.9% 5.1% 5.0% 4.8% PG, Foodservice and Other 1,554.7 2,021.11 868.7 1,060.5 2,425.332 2,789.132 3,068.045 3,374.849 10.0 % Growth rates 22.1% 46.6% 30.0 % 20.0% 15.0% 10.0% 18,701.4 10,707.4 13,299.5 et Revenues 11,700.4 14,962.6 16,759.8 20,745.5 22,987.1 Starbucks: sles Forecasts by Segmentand Type 2014 Starbucks: Store Operating Data 2013 2015 201 2010 2011 2012 2016 Americas Expectations for net new stores to be opened each year Net new stores opened during the year Company operated 300 300 300 600 30 3pm 234 300 300 300 Licensed 111 268 270 300 30m -225 600 Total 504 Tetal stores Cempany operated 7 580 7423 745T 8157 8.457 8757 9.053 5044 4,776 5046 12.903 5946 Licensed 5346 5646 6246 6.54m Total 12.624 12.399 13.503 14.103 14.703 15.303 15.90 Revenues- 9859627 12.696.676- 13.780.53 Cempany-operated 3655 10,740 492 11.684 794 1.358 Revenues per storelyear 1.173 1.231 1293 1425 141 5.0 % 50 Growth rate 50% 50% 50% 1372.6m 021 Licensed 676.7 82580 917.41 1,018.897 1.128.239 1.245.969 Revenues per storelyear 168 0.177 0.185 0.195 0204 Growth rate 5% 5% 5% EMEA Expectations for net new stores to be opened each year Net new stores opened during the year Company-operated 33 33 11 67 47 101 Licensed 100 36 104 100 10m Tetal 111 100 100 Total stores Company-operated 47 $72 15 981 1,014 104 s07 1,054 Licensed: 1.121 1.188 1,255 1.32 Tetal 2269 2.36 1654 1758 1869 1.969 2.063 2 181 Revenues Company-oparated: Revenues per storelyear a05.5 1,001.9598 1,049 14 1.108.04 1.168.17 1,231.9 1.115 1.14 1.172 1.104 1.12 1.19m Growth rate: 0% 13% 1% 2%. 2% 29 170.930 Licensed 112.25 1395 165 243 193.1090 207.77m 0 149 Revenues per storelyear: 0.15 0.152 0.155 .158 .16 Growth rate 1% 1% 2% 2 CAP Expectations for net new stores to be epened each year Net new stores opened during the year Cempany operated 36 73 3sm 154 200 200 300 300 400 294 00 400 Licensed: 75 193 400 45m 600 Total 260 440 600 700 70 Tetal stores 1,666 21 Company-operated 435 $12 1.066 136 2,334 1421 32 Licensed 2,141 2428 1028 422 4,67 Total 2.580 284 3.294 3894 4494 5.134 S84 Revenues 988.40 1,356 257 1824.128 Cempany-operated Revenues per storelyeart 361.4 489 2 712.554 2372 84 831 a.93 1.023 1.115 1.205 1.28m 7% Growth rate: 15% 12% 10% 26437 455.974 S46746- Licensed 1909 2322 372 203 646 74m 0094 Revenues per storelyears Growth rate 0105 0.115 0.126 0136 14m 12 % 10% I% 7% CPG Foodservice, and Other ncluding Americas, EMEA, CAP) 1,060 5 3068.045 10 % Ravenues: 1.554-7 s68.7 2021.115 2425 332 278.132 3.37484 Growth rates 10 22.1% 46.6% 30% 20% 15% Forecast Development: Capital Expenditures, Property, Plart and Equipment, and Deprbciation CAPEX Foredasts: Capital Expenditures: Year +4 Year +5 2010 2011 2012 Year+1 Year +2 Year +3 CAPEX: PP&E Acquired 441 414 851 PP&E Sold C 0 414 1,660 Net CAPEX 441 851 1,200 1,341 1,496 1,839 Net CAPEX as a percent of: Gross PP&E 7.7% 7,0% 13.8% 17.4% 16.5% 15.8% 15.2% 14.6% 8.0 % 3.5% 8.0% 8.0% Revenues 4.1% 6.4 % 8.0% 8.0% 4.7% Property, Plant and Equipment and Depreciation Property, Plant and Equipment and Depreciation Forecasts: PP&E at cost: 2011 Year +5 2010 2012 Year+1 Year +2 Year +3 Year +4 Beg. balance at cost: 6,903 8,103 9,444 10.940 12,600 Add: CAPEX forecasts from above: 1,200 1,341 1,496 1,660 1,839 End balance at cost: 6,163 14,439 9,444 5,889 6,903 8,103 10,940 12,600 Accumulated Depreciation: Beg. Balance: 4,244 4,964 -5,804 -6.776 -7,896 875 Subtract: Depreciation expense forecasts from below: -720 -839 972 1,120 3,808 4,244 End Balance: -3,472 -7,896 4.964 5,804 -6,776 8,770 2,355 3,139 3,640 4,164 4,704 5,668 PP&E-net 2,416 2,659 Depreciation Expense Forecast Development: Depreciation expense forecast on existing PP&E: 205 Existing PP&E at cost: 6,903 613 613 613 613 818 205 Remaining balance to be depreciated. 2,659 2.045 1,432 PP&E Purchases: Depreciation expense forecasts on new PP&E: Capex Year +1 1,200 107 107 107 107 107 Capex Year +2 1,341 119 119 119 119 Capex Year +3 1,496 133 133 133 Capex Year +4 1,660 147 147 Capex Year +5 1,839 163 1,120 875 Total Depreciation Expense 839 972 720 Portion Reported Separately on Income Statement (95 % of total) Portion Reported within COGS on Income Statement (5 % of total) 684.12 797.319 923.631 1,063.749 830.923 36.006 41.964 48.612 55.987 43.733 Depreciation methods: 2010 2011 2012 PPE at Cost 5,889 6,163 6,903 Avg Depreciable PPE 6,026 6,533 Depreciation Expense mplied Avg. Useful Life in Years 541 550 581 11.3 11.0 Useful Life Forecast Assumption: yearsy