Starbucks Coffee Starbucks Coffee CompanyCompany

Jeremy Hanoun hanoun_j@epita.fr

Fabon Dzogang dzogan_f@epita.fr

English Presentation EPITA

Forward Looking Statement Forward Looking Statement This presentation includes the following forward looking This presentation includes the following forward looking statements: statements: anticipated store openings, comparable store sales anticipated store openings, comparable store sales expectations, trends in or expectations regarding the Companyexpectations, trends in or expectations regarding the Company’’s s net revenue, net earnings and earnings per share results and net revenue, net earnings and earnings per share results and capital expenditures.capital expenditures. These forward looking statements are These forward looking statements are based on currently available operating, financial, and competitibased on currently available operating, financial, and competitive ve information and are subject to various risks and uncertainties. information and are subject to various risks and uncertainties. Actual future results and trends may differ materially dependingActual future results and trends may differ materially dependingon a variety of factors including but not limited to, coffee, daon a variety of factors including but not limited to, coffee, dairy iry and other raw material prices and availability, successful and other raw material prices and availability, successful execution of internal performance and expansion plans, execution of internal performance and expansion plans, fluctuations in U.S. and international economies and currencies,fluctuations in U.S. and international economies and currencies,the impact of initiatives by competitors, the effect of legal the impact of initiatives by competitors, the effect of legal proceedings, and other risks detailed in the Companyproceedings, and other risks detailed in the Company’’s filings s filings with the Securities and Exchange Commission, including the with the Securities and Exchange Commission, including the ““Risk FactorsRisk Factors”” section of Starbucks Annual Report on Form 10section of Starbucks Annual Report on Form 10--K K for the fiscal year ended October 1, 2006. The Company assumes for the fiscal year ended October 1, 2006. The Company assumes no obligation to update any of these forwardno obligation to update any of these forward--looking statements.looking statements.

The Coffee IndustryThe Coffee Industry

Diverse and Fragmented IndustryDiverse and Fragmented IndustryTotal worldwide coffee Total worldwide coffee production production –– 15 billion 15 billion pounds annuallypounds annually

60 countries60 countries~25 million farmers~25 million farmers

Starbucks purchases 2% Starbucks purchases 2% of the worldof the world’’s coffee supply s coffee supply per yearper yearFrom 2001 to 2006 specialty From 2001 to 2006 specialty coffee consumption grew coffee consumption grew over 48% in the U.S.over 48% in the U.S.

Starbucks2%

Specialty8%

Arabica70%

Robusta30%

World Coffee Supply World Coffee Supply By TypeBy Type

Sources: International Coffee Association and Specialty Coffee ASources: International Coffee Association and Specialty Coffee Association of Americassociation of America

Demonstrated LeadershipDemonstrated LeadershipPublicly traded since 1992Publicly traded since 1992

Led creation of North American specialty Led creation of North American specialty coffee industrycoffee industryExpanded globally to become one of the Expanded globally to become one of the worldworld’’s most recognized brandss most recognized brandsEstablished progressive work Established progressive work environment and environment and ““employer of choiceemployer of choice””Built a reputation for ethical and Built a reputation for ethical and responsible behaviorresponsible behaviorRecognized as one of AmericaRecognized as one of America’’s Most s Most Admired CompaniesAdmired Companies

Recent Company RecognitionRecent Company Recognition

“Top 50 Companies

for Diversity”

“100 Best Corporate Citizens”

“World’s Most Respected

Companies”

#6 “Top 25 Green Power

Partners”

# 2 “Most Admired Companies in

America”#16 “100 Best Companies to

Work For”

Starbucks DifferentiatorsStarbucks Differentiators

Balanced Balanced Growth Growth StrategyStrategy

Site Selection Site Selection ExpertiseExpertise Corporate Social Corporate Social

ResponsibilityResponsibility

Brand Strength Brand Strength / Loyalty/ Loyalty

Starbucks Starbucks ExperienceExperience

Starbucks Starbucks DifferentiationDifferentiation

Coffee Coffee ExpertiseExpertise

Passionate Passionate PartnersPartners

Large & Diverse Large & Diverse Customer BaseCustomer Base

Long History Long History of Strong of Strong Financial Financial

PerformancePerformance

The The Starbucks ExperienceStarbucks ExperienceEstablished a Third PlaceEstablished a Third Place to to facilitate human connectionfacilitate human connectionInfluenced world view of coffee Influenced world view of coffee through education and thethrough education and theStarbucks ExperienceStarbucks ExperienceAppeal is universalAppeal is universal

High quality productsHigh quality productsPrepared the way you like itPrepared the way you like itFriendly serviceFriendly serviceClean comfortable environmentClean comfortable environmentConvenient Convenient

Successful Growth StrategySuccessful Growth Strategy13,000+ stores in 13,000+ stores in 39 countries39 countriesNearly 44 million Nearly 44 million customer visits per customer visits per week worldwideweek worldwideApproximately Approximately 150,000 partners 150,000 partners (employees)(employees)15 consecutive 15 consecutive years of years of comparable store comparable store sales growth sales growth ≥≥5%5%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

FY02 FY03 FY04 FY05 FY06 Q1 06 Q1 07

Expansion Fuels TopExpansion Fuels Top--Line Growth Line Growth

InternationalInternationalUnited StatesUnited States Global Consumer Products GroupGlobal Consumer Products Group

millionsmillions

$4,076

Total Net RevenuesTotal Net Revenues

5-Year CAGR = 24% $7,787

$6,369

$1,934

$5,294

$2,356Growth Rate = 22%

$3,289

Operating Margin PerformanceOperating Margin Performance

Operating MarginOperating Margin

9.5%10.3%

11.5%12.3%

11.5%

14.5%13.6%

0.0%

5.0%

10.0%

15.0%

FY02 FY03 FY04 FY05 FY06 Q1 06 Q1 07

$0.26$0.33

$0.47

$0.61

$0.71

$0.22$0.26

$0.00

$0.20

$0.40

$0.60

$0.80

FY02 FY03 FY04 FY05 FY06 Q1 06 Q1 07

Strong LongStrong Long--Term PerformanceTerm Performance

FY06 includes the cumulative impact of the accounting change to FY06 includes the cumulative impact of the accounting change to adopt FIN 47adopt FIN 47

Earnings Per ShareEarnings Per Share

CAGR = 25%

Growth Rate = 18%

Strong Q1 FY07 ResultsStrong Q1 FY07 Results13 weeks ended December 31, 200613 weeks ended December 31, 2006

Opened a record 728 new storesOpened a record 728 new stores$2.4 billion in net revenues $2.4 billion in net revenues 6% comparable store sales growth6% comparable store sales growth13.6% operating margin 13.6% operating margin $205 million in net earnings$205 million in net earnings$0.26 earnings per share$0.26 earnings per share

FY 2007 Performance MetricsFY 2007 Performance Metrics

2,400 net new stores2,400 net new stores3% 3% -- 7% comparable store sales growth7% comparable store sales growth20% net revenue growth20% net revenue growth$0.87 $0.87 -- $0.89 EPS range$0.89 EPS range

FY 2007 Business DriversFY 2007 Business DriversFY 2007 Business Drivers

Open 2,400 new Starbucks storesMaintain operating margins in the U.S. businessImprove International operating marginIncrease global presence of the brand beyond the Starbucks retail storesContinue to leverage G&A expenses

Open 2,400 new Starbucks storesOpen 2,400 new Starbucks storesMaintain operating margins in the Maintain operating margins in the U.S. businessU.S. businessImprove International operating Improve International operating marginmarginIncrease global presence of the brand Increase global presence of the brand beyond the Starbucks retail storesbeyond the Starbucks retail storesContinue to leverage G&A expensesContinue to leverage G&A expenses

LongLong--Term Growth GoalsTerm Growth Goals

Open at least 10,000 new stores in next Open at least 10,000 new stores in next four yearsfour yearsDouble the size of the business in next Double the size of the business in next 4 4 –– 5 years5 yearsGrow net earnings faster than revenueGrow net earnings faster than revenuePotential for 40,000 stores worldwidePotential for 40,000 stores worldwide

Initiatives Driving U.S. SegmentInitiatives Driving U.S. Segment

Expand store footprint in new and Expand store footprint in new and existing marketsexisting marketsIncrease average unit volumesIncrease average unit volumesPromote continuous innovation to Promote continuous innovation to meet customer preferences and needsmeet customer preferences and needsLeverage the Starbucks brand with Leverage the Starbucks brand with complementary offeringscomplementary offeringsRemain employer of choiceRemain employer of choice

Rapid Retail Store GrowthRapid Retail Store Growth

4,2725,239

6,1777,353

8,8969,401

~10,600

0

5,000

10,000

15,000

20,000

FY02 FY03 FY04 FY05 FY06 Q1 FY07 FY07e

U.S. StoresU.S. Stores International StoresInternational Stores

7,2257,2258,5698,569

10,24110,241

12,44012,440

14,84014,840

FY07 estimates based on Company store opening targetsFY07 estimates based on Company store opening targets

5,8865,886

13,16813,168

Total Store CountTotal Store Count

5-Year CAGR = 21%

Strong Comparable Store PerformanceStrong Comparable Store Performance

5% 5%6%

9%

5%6%

8%

10%

8%7%

3%- 7%

0%

5%

10%

15%

FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

CompanyCompany--operated stores open 13 months or longeroperated stores open 13 months or longer

Comparable Store Sales GrowthComparable Store Sales Growth

2007 Target Range

2.2 : 12.2 : 1

$424$424

$920$920

ForecastForecastFY 2006FY 2006

1.7 : 11.7 : 1

$371$371

$631$631

FY 2000FY 2000

Year 1 Sales to Year 1 Sales to Investment Investment RatioRatio

AverageAverageNew StoreNew StoreInvestmentInvestment

Year 1 Sales Year 1 Sales

Compelling New Store PerformanceCompelling New Store Performance

$s in$s inthousandsthousands

Average U.S. CompanyAverage U.S. Company--Operated Retail StoresOperated Retail Stores

FY06 new store firstFY06 new store first--year sales based on current Company forecastyear sales based on current Company forecast

$671

$812 $806$863 $872

$937$910

$1,004

$920

$1,045

FY02 FY03 FY04 FY05 FY06

Increasing Average Unit VolumeIncreasing Average Unit Volume

thousandsthousands

Average U.S. CompanyAverage U.S. Company--Operated Store SalesOperated Store Sales

Total StoresTotal StoresNew StoresNew Stores

Innovation: Expanded HandInnovation: Expanded Hand--Crafted Crafted Beverage OfferingsBeverage Offerings

Innovation: Complementary OfferingsInnovation: Complementary Offerings

texttext

International Business International Business Demonstrates Brand PowerDemonstrates Brand Power

Primary focus on introduction Primary focus on introduction of core beverage offeringsof core beverage offeringsCommitted to delivering the Committed to delivering the Starbucks ExperienceStarbucks ExperienceBuild key joint venture Build key joint venture partner relationships partner relationships Opportunistically increase Opportunistically increase equity ownershipequity ownership

100% in 10 countries100% in 10 countries50% in 6 countries50% in 6 countries

Strategic expansion into new Strategic expansion into new markets with existing partnersmarkets with existing partners

Canada35%

United Kingdom

39%

Other Company-operated

16%

JV/ Licensed

10%

International Segment International Segment Revenue BreakdownRevenue Breakdown

Q1 FY 2007 Q1 FY 2007

1.6 : 11.6 : 1

$420$420

$692$692

Forecast Forecast FY 2006 FY 2006

1.2 : 11.2 : 1

$424$424

$527$527

FY 2000FY 2000

Canada Canada (1)(1)United Kingdom United Kingdom (1)(1)

1.3 : 11.3 : 1

$610$610

$803$803

FY 2000FY 2000

1.6 : 11.6 : 1Year 1 Sales to Year 1 Sales to Investment Investment RatioRatio

$561$561AverageAverageNew StoreNew StoreInvestmentInvestment

$905$905Year 1 Sales Year 1 Sales

Forecast Forecast FY 2006FY 2006

Solid International Store PerformanceSolid International Store Performance

$s in$s in thousands thousands U.S.D U.S.D (2)(2)

(1)(1) CompanyCompany--operated retail stores onlyoperated retail stores only(2)(2) Excludes the impact of foreign currency fluctuationsExcludes the impact of foreign currency fluctuations

The Bahamas5Puerto Rico

22

Expanding International PresenceExpanding International Presence3,767 International Locations In 38 Countries3,767 International Locations In 38 Countries

Cyprus7

Germany 75

Ireland 10

Jordan6

Kuwait38

Lebanon11

France 30

Oman5

Qatar 9

South Korea 187

Switzerland 31

Taiwan 189

Thailand91

UAE 46

UK 528 Turkey

62

Philippines 106

Canada725

Japan 665

Bahrain8

Saudi Arabia52

Spain 58

Mexico116

Peru9

Chile17

Malaysia 79

Indonesia 48

New Zealand47

Singapore42

Austria 11

Australia89

China288

500 + Brazil2

India

In 2007, Starbucks expects to open more than 6 stores per day worldwideIn 2007, Starbucks expects to open more than 6 stores per day woIn 2007, Starbucks expects to open more than 6 stores per day worldwiderldwide

100 - 500

< 100

Note: Store count as of December 31, 2006.Note: Store count as of December 31, 2006.

Greece 52

Egypt1

Global Consumer Products GroupGlobal Consumer Products Group (CPG)(CPG)Beyond the Retail StoreBeyond the Retail Store

Early stage of growth and developmentEarly stage of growth and developmentExtends the Extends the Starbucks ExperienceStarbucks Experience to to our customers anywhere and any time our customers anywhere and any time beyond beyond theirtheir Starbucks storeStarbucks storeProvides platform to leverage business Provides platform to leverage business partnerspartners’’ manufacturing and manufacturing and distribution competencies while distribution competencies while managing brand integritymanaging brand integrityRepresents 26% of specialty revenues Represents 26% of specialty revenues and 4% of net revenuesand 4% of net revenues

Growth Opportunity of CPG SegmentGrowth Opportunity of CPG Segment

Investment ConsiderationsInvestment ConsiderationsWorldwide brand recognition Worldwide brand recognition Long runway for future growth Long runway for future growth Strong financial fundamentalsStrong financial fundamentalsInnovation is part of our DNAInnovation is part of our DNATalented & cohesive management teamTalented & cohesive management team