Belinda Wong chief executive officer, China China ~2,500 is the largest STORES international market for 118 Starbucks CITIES 35,000+ PARTNERS 5M+ TRANSACTIONS EVERY WEEK Best-in-class new store portfolio
ZHAOQING JUL 2016 HUANGSHI SEP 2015
XIANGYANG FEB 2016 YEAR 1 COMPANY OPERATED STORES (USD ‘000)
FY13 FY16
AUV 618 671 RIZHAO SEP 2016 ROI 66% 73%
All years apply same FY16 average FX rate Unparalleled store design
BEIJING DASHILAR CHENGDU TAIKOO LI XI’AN ZHONGDA INT’L
BEIJING TIAN HE FANG SHENZHEN CUIZHU WUHAN CREATIVE SPACE Unparalleled store design SHANGHAI DISNEYTOWN Innovative store formats
BEIJING AIRPORT BEIJING SOUTH RAILWAY STATION (NO.3 STORE)
SHANGHAI HONGQIAO RAILWAY STATION BEIJING SOUTH RAILWAY STATION (NO.4 STORE) Leading as employer of choice
Bean stock Housing allowance Talent exchange Partner family forum
“Bean stock has made “Starbucks listened to our “Working in Singapore has “My mother finally sees how me a proud shareholder needs as millennial partners prepared me for the next phase much Starbucks means to of Starbucks.” and truly cares for us as of my Starbucks career growth.” me and why I have a bright an individual.” Cherry Jin Jack Liu future here.” store manager, Wuhan Anne Gou asst. store manager, Guangzhou Roy Dong shift supervisor, Chengdu store manager, Kunming Becoming a part of the community
Engaging in movie Rebuilding hometowns Advocating for young narrations for the blind devastated by typhoons migrant workers
Supporting “Chunyun” (Spring Festival human migration) 512,000 community hours contributed since FY10 Next 5 years FY17-FY21
5,000 200+ 2x ~3x ~3x STORES CITIES STORES REVENUE OPERATING INCOME China growth drivers
Urbanization and the Coffee Core retail business Brand extensions Digital Flywheel rising middle-class market growth Engaging new customers
Urbanization and the Coffee Core retail business Brand extensions Digital Flywheel rising middle-class market growth
RAPIDLY INCREASING MIDDLE CLASS RAPIDLY GROWING SPECIALTY COFFEE MARKET** IN MILLIONS * 600 15% CAGR
300
Starbucks leads in 2x market share** and top of mind brand 66 awareness***
2005 2015 2022 FY13 FY16 FY21
*McK Global Institution, Chinese Academy of Social Science, Euromonitor ** Euromonitor 2016 report ; *** 2016 Starbucks brand health tracking Existing customers visiting more frequently
Urbanization and the Coffee Core retail business Brand extensions Digital Flywheel rising middle-class market growth
MSR MEMBERS CAGR FY13 TO FY16 63% 53% TOTAL GOLD China growth drivers
Urbanization and the Coffee Core retail business Brand extensions Digital Flywheel rising middle-class market growth
Store footprint/format Daypart expansion Local relevance Teavana China growth drivers
Urbanization and the Coffee Untapped new Core retail business Brand extensions Digital Flywheel rising middle-class market growth opportunities
CPG Shanghai Roastery Princi China growth drivers
Urbanization and the Coffee Digital Core retail business Brand extensions Digital Flywheel rising middle-class market growth Flywheel
Mobile Order & Pay MSR / Personalization Digital Payment Social Gifting and Delivery Starbucks & Alibaba Announcing partnership with Tencent
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