STARBUCKS EMEA HOLDINGS LTD Registered Number 09144787 ...globalassets.starbucks.com/assets/B1F2908C1F4944... · The key elements of the system of internal control that minimise and

STARBUCKS EMEA HOLDINGS LTD

Registered Number 09144787

Report and Financial Statements

For the 53 week period ending 2 October 2016


CONTENTS

PAGE

DIRECTORS AND OTHER INFORMATION 2

STRATEGIC REPORT 3

DIRECTORS’ REPORT 5

STATEMENT OF DIRECTORS’ RESPONSIBILITIES 7

INDEPENDENT AUDITOR’S REPORT 8

PROFIT AND LOSS ACCOUNT 10

BALANCE SHEET 11

STATEMENT OF CHANGES IN EQUITY 12

NOTES TO THE FINANCIAL STATEMENTS 13


DIRECTORS AND OTHER INFORMATION

FOR THE PERIOD ENDED 2 OCTOBER 2016

- 2 -

DIRECTORS K Engskov (resigned 29 July 2016)

D Macdonald

M Brok (appointed 29 July 2016)

REGISTERED OFFICE Chiswick Park

566 Chiswick High Road

London

W4 5YE

United Kingdom

AUDITOR Deloitte LLP

Statutory Auditor

London

United Kingdom

BANKERS Citibank

Citigroup Centre

Canary Wharf

London

E14 5LB

United Kingdom

SOLICITORS Wragge & Co LLP

55 Colmore Row

Birmingham

B3 2AS

United Kingdom


STRATEGIC REPORT


- 3 -

The directors present their strategic report for the 53 week period ended 2 October 2016

(2015: 52 week period ended 27 September 2015) for Starbucks EMEA Holdings Ltd (“the

Company”). In preparing this Strategic Report, the directors have complied with s414C of the

Companies Act 2006.

STATE OF AFFAIRS

The Company was set up during the previous fiscal year in order to help facilitate the move of

the EMEA headquarters from Amsterdam to London by enabling it to continue its role of

providing financial support for Starbucks within the region.

The Company chose to adopt FRS 101 – Reduced Disclosure Framework and has taken

advantage of the disclosure exemptions allowed under this standard.

The profit for the period, after taxation, of $1,750,467,000 (2015: $nil) consists of a dividend

receipt of $1,752,592,000, (2015: $nil), $100,000 (2015: $nil) from its ordinary activities and

tax payable of $2,225,000 (2015: $nil). The dividend was previously subject to taxation and is

therefore not subject to further UK tax, in accordance to UK tax rules. This amount reflects a

one-off effect of transferring the assets of the old regional structure to the new EMEA

headquarters in London.

The directors do not recommend the payment of a dividend for the period.

During the year, the Company became the immediate parent of Starbucks EMEA Ltd, the

directors expect Starbucks EMEA Ltd’s trading conditions during the following year to be

challenging, but are expecting further growth in turnover and realisation of profits in the

future.

Group reorganisation

During 2014, management of the Company’s ultimate parent company, Starbucks

Corporation (“Starbucks”) announced that it would move its European headquarters from

Amsterdam to London. Pursuant to this announcement, in 2014 Starbucks management

reorganised the Starbucks group’s statutory entities in Europe, to better align its legal

organisational structure with its business operations in Europe.

As a result of the Group reorganisation, Starbucks Corporation set up Starbucks EMEA Ltd

and transferred, via license, certain rights to Starbucks intellectual property (IP) to Starbucks

EMEA Ltd. The company now acts as Master Franchisor/Licensor for the Europe, Middle

East and Africa business of Starbucks Corporation.


STRATEGIC REPORT


- 4 -

Principal risks and uncertainties

The results of the Company are significantly influenced by a number of risk factors

experienced by Starbucks EMEA Ltd. For a comprehensive review of risk factors facing the

Company, refer to Starbucks EMEA Ltd’s Annual Report and Financial Statements.

The Company has established a risk committee that meets quarterly and which evaluates the

Company’s risk appetite.

The Company has also established a risk management process to ensure that proper

procedures are in place and that they are operating effectively in order to deal with strategic

and operational issues.

The key elements of the system of internal control that minimise and mitigate against

perceived risk:

Internal audit: an internal audit function, based in Seattle, conducts an annual evaluation of

the Company’s internal control over financial reporting which includes a written assessment

of the effectiveness of such controls under section 404 Sarbanes-Oxley Act.

Financial risk management: the Company is exposed to financial risk through its financial

assets and liabilities. The key financial risk is that the proceeds from financial assets are not

sufficient to fund the obligations arising from liabilities as they fall due. The most important

components of financial risk are interest rate risk, currency risk, credit risk, liquidity risk,

cash flow risk and price risk. Due to the nature of the Company’s business and the assets and

liabilities contained within the Company’s balance sheet the only financial risks the directors

consider relevant to this Company are credit risk and liquidity risk. These risks are mitigated

by the nature of the debtor balances owed, with these due from other group companies who

are able to repay these if required.

By Order of the Board on 2017.

D Macdonald

Director


DIRECTORS’ REPORT


- 5 -

The directors present their report and the audited financial statements of Starbucks EMEA

Holdings Ltd (“the Company”) for the 53 week period ended 2 October 2016 (2015: 52 week

period ended 27 September 2015). Disclosures required under s416(4) which have been

elevated to the strategic report are:

Financial risk management objectives and policies.

DIRECTORS

The directors of the Company who served throughout the period, except as noted, were:

K Engskov (resigned 29 July 2016)

D Macdonald

M Brok (appointed 29 July 2016)

DIVIDENDS

The directors do not recommend the payment of a dividend (2015: £nil).

EVENTS SINCE THE BALANCE SHEET DATE

There have been no material events since the balance sheet date, which impact the results

reported in these accounts or which require disclosure.

DIRECTORS’ LIABILITIES

The Company has granted an indemnity to one or more of its directors against liability in

respect of proceedings brought by third parties, subject to the conditions set out in the

Companies Act 2006. Such qualifying third party indemnity provision remains in force as at

the date of approving the directors’ report.

GOING CONCERN

The Company’s business activities, together with the factors likely to affect its future

development, its financial position, financial risk management objectives, details of its

financial instruments and derivative activities, and its exposures to price, credit, liquidity and

cash flow risk are described in the Strategic Report on pages 3 to 4.

The Company is the immediate parent of Starbucks EMEA Ltd and therefore the results of the

Company are significantly influenced by a number of risk factors experienced by Starbucks

EMEA Ltd. For a comprehensive review of risk factors facing the Company, refer to

Starbucks EMEA Ltd’s Annual Report and Financial Statements.

The Company has considerable financial resources as a consequence, the directors believe

that the group is well placed to manage its business risks successfully despite the current

uncertain economic outlook.

After making enquiries, the directors have a reasonable expectation that the Company has

adequate resources to continue in operational existence for the foreseeable future.

Accordingly, they continue to adopt the going concern basis in preparing the annual report

and accounts.


DIRECTORS’ REPORT


- 6 -

AUDITOR

A resolution to reappoint Deloitte LLP as auditor will be put to the members at the Annual

General Meeting.

DIRECTORS’ STATEMENT AS TO DISCLOSURE OF INFORMATION TO THE

AUDITOR

The directors who were members of the board at the time of approving the directors’ report

are listed on page 5. Having made enquiries of the fellow director and of the Company’s

auditor, each of these directors confirms that:

to the best of each director’s knowledge and belief, there is no information (that is,

information needed by the Company’s auditor in connection with preparing their

report) of which the Company’s auditor is unaware; and is

each director has taken all the steps a director might reasonably be expected to have

taken to be aware of relevant audit information and to establish that the Company’s

auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provision of s418

of the Companies Act 2006.

By Order of the Board on 2017.

D Macdonald

Director


STATEMENT OF DIRECTORS’ RESPONSIBILITIES


- 7 -

The directors are responsible for preparing the Annual Report and the financial statements in

accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year.

Under that law the directors have elected to prepare the financial statements in accordance

with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting

Standards and applicable law), including FRS 101 ‘Reduced Disclosure Framework’ and

applicable law. Under company law, the directors must not approve the financial statements

unless they are satisfied that they give a true and fair view of the state of affairs of the

Company and of the profit or loss for that period.

In preparing those financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent; and

state whether applicable UK Accounting Standards have been followed, subject to

any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate

to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to

show and explain the Company’s transactions and disclose with reasonable accuracy at any

time the financial position of the Company and enable them to ensure that the financial

statements comply with the Companies Act 2006. They are also responsible for safeguarding

the assets of the Company and hence for taking reasonable steps for the prevention and

detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial

information included on the company’s website. Legislation in the United Kingdom

governing the preparation and dissemination of the financial statements may differ from

legislation in other jurisdictions.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF


- 8 -

We have audited the financial statements of Starbucks EMEA Holdings Ltd for the period

ended 2 October 2016 which comprise the Profit and Loss Account, the Balance Sheet, the

Statement of Changes in Equity and the related notes 1 to 13. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including

FRS 101 ‘Reduced disclosure framework’.

This report is made solely to the Company’s members, as a body, in accordance with Chapter

3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we

might state to the Company’s members those matters we are required to state to them in an

auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not

accept or assume responsibility to anyone other than the Company and the Company’s

members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditor

As explained more fully in the Statement of Directors’ Responsibilities, the directors are

responsible for the preparation of the financial statements and for being satisfied that they

give a true and fair view. Our responsibility is to audit and express an opinion on the financial

statements in accordance with applicable law and International Standards on Auditing (UK

and Ireland). Those standards require us to comply with the Auditing Practices Board’s

Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial

statements sufficient to give reasonable assurance that the financial statements are free from

material misstatement, whether caused by fraud or error. This includes an assessment of:

whether the accounting policies are appropriate to the Company’s circumstances and have

been consistently applied and adequately disclosed; the reasonableness of significant

accounting estimates made by the directors; and the overall presentation of the financial

statements. In addition, we read all the financial and non-financial information in the annual

report to identify material inconsistencies with the audited financial statements and to identify

any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware

of any apparent material misstatements or inconsistencies we consider the implications for our

report.

Opinion on financial statements

In our opinion the financial statements:

give a true and fair view of the state of the Company’s affairs as at 2 October 2016

and of its profit for the period then ended;

have been properly prepared in accordance with United Kingdom Generally

Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion the information given in the Strategic Report and the Directors’ Report for the

financial year for which the financial statements are prepared is consistent with the financial

statements.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF


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Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006

requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit

have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns;

or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Sukhbinder Kooner (Senior statutory auditor)

for and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

2017


PROFIT AND LOSS ACCOUNT


- 10 -

Period ended Period ended

2 October 27 September

2016 2015

Note $’000 $’000

Administrative expenses

(54) -

OPERATING LOSS

(54) -

Dividend income

1,752,592 -

Interest receivable and similar income 154 -

PROFIT ON ORDINARY ACTIVITIES

BEFORE TAXATION 4 1,752,692 -

Tax expense for the period 6 (2,225) -

PROFIT ON ORDINARY ACTIVITIES

AFTER TAXATION AND TOTAL

COMPREHENSIVE INCOME FOR THE

PERIOD

1,750,467 -


BALANCE SHEET

AS AT 2 OCTOBER 2016

- 11 -


2016 2015

Note $’000 $’000

FIXED ASSETS

Investments 7 2,103,067 2,069,137

2,103,067 2,069,137

CURRENT ASSETS

Debtors:

- Amounts falling due within one year 8 1,697,369 -

- Amounts falling due after one year 8 874 -

1,698,243 -

Cash at bank and in hand

20,539 19

1,718,782 19

CREDITORS - amounts falling due within one

year 9 (2,226) -

NET CURRENT ASSETS 1,716,556 19

NET ASSETS 3,819,623 2,069,156

CAPITAL AND RESERVES

Equity share capital 10 157 157

Share premium 11 2,068,999 2,068,999

Retained earnings 12 1,750,467 -

SHAREHOLDER'S FUNDS

3,819,623 2,069,156

The notes on page 13 to 20 are an integral part of these financial statements.

The financial statements of Starbucks EMEA Holdings Ltd (registered number 09144787)

were approved by the board of directors on 2017 and were signed on its

behalf by:

D Macdonald

Director


STATEMENT OF CHANGES IN EQUITY


- 12 -

Equity

share

capital

Share

premium

Retained

earnings Total

$’000 $’000 $’000 $’000

At 23 July 2014 - - - -

Profit for the period - - - -

Total comprehensive income for

the period - - - -

Issue of equity shares 157 2,068,999 - 2,069,156

At 27 September 2015 157 2,068,999 - 2,069,156

Profit for the period - - 1,750,467 1,750,467

Total comprehensive income for

the period - - 1,750,467 1,750,467

At 2 October 2016 157 2,068,999 1,750,467 3,819,623

The notes on page 13 to 20 are an integral part of these financial statements.


NOTES TO THE FINANCIAL STATEMENTS


- 13 -

1. Authorisation of financial statements and statement of compliance with FRS 101

The financial statements of Starbucks EMEA Holdings Ltd (the “Company”) for the 53 week

period ended 2 October 2016 were authorised for issue by the board of directors on

2017 and the balance sheet was signed on the board’s behalf by D Macdonald.

Starbucks EMEA Holdings Ltd is incorporated in the United Kingdom and registered in

England and Wales.

The Company has applied Financial Reporting Standard 101 ‘Reduced Disclosure

Framework’ (FRS 101) issued by the Financial Reporting Council (FRC) incorporating the

Amendments to FRS 101 issued by the FRC in July 2015 other than those relating to legal

changes and has not applied the amendments to Company law made by The Companies,

Partnerships and Groups (Accounts and Reports) Regulations 2015 that are effective for

accounting periods beginning on or after 1 January 2016.

The Company’s financial statements are presented in US Dollars because that is the currency

of the primary economic environment in which the Company operates. All values are rounded

to the nearest thousand dollars ($’000) except when otherwise indicated.

These financial statements are separate financial statement. The Company has taken

advantage of the exemption under s401 of the Companies Act 2006 not to prepare group

accounts as it is a wholly owned subsidiary of Starbucks Corporation.

The results of the Company are included in the consolidated financial statements of Starbucks

Corporation which are available from the Investor Relations section of the Starbucks website

at investor.starbucks.com.

2. Summary of significant accounting policies

2.1. Basis of preparation

The financial statements have been prepared under the historical cost convention and in

accordance with applicable United Kingdom law and accounting standards.

The Company has adopted FRS 101 for all periods presented. There were no material

amendments on the adoption of FRS 101. The accounting policies which follow set out those

policies which apply in preparing the financial statements for the period ended 27 September

2015. The Company has taken advantage of the following disclosure exemptions under FRS

101:

(a) the requirements of IFRS 7 Financial Instruments: Disclosures;

(b) the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement;

(c) the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to

present comparative information in respect of:

(i) paragraph 79(a)(iv) of IAS 1;

(ii) paragraph 73(e) of IAS 16 Property, Plant and Equipment; and

(iii) paragraph 118(e) of IAS 38 Intangible Assets;

(d) the requirements of paragraphs 10(d), 10(f), 39(c) and 134-136 of IAS 1 Presentation

of Financial Statements;

(e) the requirements of IAS 7 Statement of Cash Flows;

(f) the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in

Accounting Estimates and Errors;

(g) the requirements of paragraph 17 of IAS 24 Related Party Disclosures; and

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome




- 14 -

2.1. Basis of preparation (continued)

(h) the requirements in IAS 24 Related Party Disclosures to disclose related party

transactions entered into between two or more members of a group, provided that any

subsidiary which is a party to the transaction is wholly owned by such a member.

2.2. Going concern

The Company’s business activities, together with the factors likely to affect its future

development and position, are set out in the Strategic report, pages 3 to 4.

The Company is the immediate parent of Starbucks EMEA Ltd and therefore the results of the

Company are significantly influenced by a number of risk factors experienced by Starbucks

EMEA Ltd. For a comprehensive review of risk factors facing the Company, refer to

Starbucks EMEA Ltd’s Annual Report and Financial Statements, which can be obtained from

Starbucks EMEA Ltd, Chiswick Park, 566 Chiswick High Road, London, W4 5YE.

The Company is expected to continue to generate positive cash flows on its own account for

the foreseeable future.

The directors, having assessed the responses of the directors of the Company’s parent,

Starbucks Corporation, to their enquiries have no reason to believe that a material uncertainty

exists that may cast significant doubt about the ability of the Company to continue as a going

concern.

On the basis of their assessment of the Company’s financial position and of the enquiries

made of the directors of Starbucks Corporation, the Company’s directors have a reasonable

expectation that the company will be able to continue in operational existence for the 12

months following the signing of these accounts. Thus they continue to adopt the going

concern basis of accounting in preparing the annual financial statements.

2.3. Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires management to make judgements, estimates

and assumptions that affect the amounts reported for assets and liabilities as at the balance

sheet date and the amounts reported for revenues and expenses during the period. However,

the nature of estimation means that actual outcomes could differ from those estimates.

The following judgements (apart from those involving estimates) have had the most

significant effect on amounts recognised in the financial statements:

Functional currency The functional currency is the currency of the primary economic environment in which the

Company operates. IAS 21, “The effects of Changes in Foreign Exchange Rates” requires the

company to consider certain indicators when determining the functional currency of the

Company. Management applies judgement to determine the functional currency of the

Company based on the Company’s relevant facts and circumstances. Management has

determined the functional currency to be US Dollars.

Taxation Management judgement is required to determine the amount of deferred tax assets that can be

recognised, based upon the likely timing and level of future taxable profits together with an

assessment of the effect of future tax planning strategies.




- 15 -

2.3. Significant accounting judgements, estimates and assumptions (continued)

Impairment of investments in subsidiaries

Determining whether the Company’s investments in subsidiaries have been impaired requires

estimates of the investments’ value in use. The value in use calculation requires the entity to

estimate the future cash flows expected to arise from the investments and suitable discount

rates in order to calculate present values.

2.4. Significant accounting policies

a) Foreign currency translation The company’s financial statements are presented in US Dollars, which is also the company’s

functional currency.

Transactions in foreign currencies are initially recorded in the entity’s functional currency by

applying the spot exchange rate ruling at the date of the transaction. Monetary assets and

liabilities denominated in foreign currencies are retranslated at the functional currency rate of

exchange ruling at the balance sheet date. All differences are taken to the income statement.

Non-monetary items that are measured in terms of historical cost in a foreign currency are

translated using the exchange rates as at the dates of the initial transactions. Non-monetary

items measured at fair value in a foreign currency are translated using the exchange rates at

the date when the fair value was determined. b) Investments in subsidiariesInvestments in

subsidiaries are accounted for at cost less any provision for impairment.

c) Cash and short-term deposits Cash and short-term deposits in the statement of financial position comprise cash at banks and

on hand and short-term deposits with a maturity of three months or less.

d) Income taxes The income taxes are calculated in accordance with tax requirements in the UK.

Current tax assets and liabilities are measured at the amount expected to be recovered from or

paid to the taxation authorities, based on tax rates and laws that are enacted or substantively

enacted by the balance sheet date.

Deferred income tax is recognised on all temporary differences arising between the tax bases

of assets and liabilities and their carrying amounts in the financial statements, with the

following exceptions:

deferred income tax assets are recognised only to the extent that it is probable that

taxable profit will be available against which the deductible temporary differences,

carried forward tax credits or tax losses can be utilised;

where the temporary difference arises from the initial recognition of goodwill or of an

asset or liability in a transaction that is not a business combination that at the time of

the transaction affects neither accounting nor taxable profit or loss; and

in respect of taxable temporary differences associated with investments in

subsidiaries, associates and joint ventures, where the timing of the reversal of the

temporary differences can be controlled and it is probable that the temporary

differences will not reverse in the foreseeable future.

Deferred income tax assets and liabilities are measured on an undiscounted basis at the tax

rates that are expected to apply when the related asset is realised or liability is settled, based

on tax rates and laws enacted or substantively enacted at the balance sheet date.




- 16 -

2.4. Significant accounting policies (continued)

The carrying amount of deferred income tax assets is reviewed at each balance sheet date.

Deferred income tax assets and liabilities are offset, only if a legally enforcement right exists

to set off current tax assets against current tax liabilities, the deferred income taxes relate to

the same taxation authority and that authority permits the company to make a single net

payment.

Income tax is charged or credited to other comprehensive income if it relates to items that are

charged or credited to other comprehensive income. Similarly, income tax is charged or

credited directly to equity if it relates to items that are credited or charged directly to equity.

Otherwise income tax is recognised in the income statement.

e) Operating profit

Operating profit is stated before investment income and finance costs.

f) Group restructuring

Intra-group restructuring will not give rise to an income statement gain or expense, if a

company is acquired or disposed of at book value. The company has chosen to reallocate the

book value of investments originally held with investments gained.

3. DIRECTORS AND EMPLOYEES

There are no employees of the Company in the current period. All UK employees of the

group are employed by the operating company, Starbucks EMEA Ltd. The details of the

average monthly number of employees and remuneration for the period for employees of

Starbucks EMEA Ltd are disclosed in the financial statements of Starbucks EMEA Ltd.

The directors of the Company are also directors of the operating company and it is not

practicable to allocate their remuneration for the current financial period between the services

to each company. The details of their remuneration for the period are disclosed in the

financial statements of Starbucks EMEA Ltd, which bears the cost of their remuneration.

4. PROFIT FOR THE PERIOD

Profit for the period has been arrived at after charging / (crediting):



2016 2015

$’000 $’000

Fees payable to the Company’s auditors (see note 5) - -

Net foreign exchange losses 45 -

5. AUDITOR’S REMUNERATION

Auditor’s remuneration of £2,000 (2015: £2,000) in relation to the audit of the Company was

borne by Starbucks EMEA Ltd.




- 17 -

6. TAXATION



2016 2015

$’000 $’000

Corporation tax:

UK corporation tax 866 -

Adjustments in respect of prior years

- UK corporation tax 1,359 -

2,225 -

Corporation tax is calculated at 20.0 per cent (2015: 20.5%) of the estimated taxable profit for

the year.

The charge for the year can be reconciled to the profit in the profit and loss account as

follows:

2 October 2016 27 September 2015

Dividend Continuing

operations

Total Dividend Continuing

operations

Total

$’000 $’000 $’000 $’000 $’000 $’000

Profit before tax 1,752,592 100 1,752,692 - - -

Tax at the UK Corporation

tax rate of 20.0% (2015:

20.5%) 350,518 20 350,538 - - -

Tax effect of expenses that

are not deductible in

determining taxable profit - 846 846 - - -

Tax effect of income not

taxable in determining

taxable profit (350,518) - (350,518) - - -

Adjustments in relation to

prior years - 1,359 1,359

Tax expense for the year - 2,225 2,225 - - -

Effective tax rate 0.0% 2,225.0% 0.1%




- 18 -

7. SUBSIDIARES

$’000

Cost

At 27 September 2015 2,069,137

Additions 33,930

Disposals -

At 2 October 2016 2,103,067

Net Book Value 2,103,067

During the previous fiscal year, the Company was incorporated to facilitate the restructuring

of the EMEA region, including the relocation of the EMEA headquarters. As a result of this,

the Company acquired a number of subsidiary investments from other group entities.

During the current year, Starbucks EMEA Investments Ltd distributed its investment in

Starbucks EMEA Ltd to the Company through a dividend distribution.

Details of the Company’s subsidiaries at 2 October 2016 are as follows:

Name

Place of incorporation and

principal place of business

Proportion

of

ownership

interest

%

Proportion of

voting power

held

%

Direct Investments

Starbucks EMEA Investments Ltd London, United Kingdom 100 100

Starbucks EMEA Ltd London, United Kingdom 100 100

Starbucks Coffee Japan, Limited Tokyo, Japan 100 100

SCI Europe I, LLC Washington, USA 100 100

SCI Europe II, LLC Washington, USA 100 100

Emerald City CV Amsterdam, Netherlands 100 100

Indirect investments

Coffee Concepts (South China) Ltd Hong Kong, China 30 30

Starbucks Coffee EMEA BV Amsterdam, Netherlands 100 100

Starbucks Manufacturing EMEA BV Amsterdam, Netherlands 100 100

Starbucks Switzerland Austria Holdings

BV

Amsterdam, Netherlands 100 100

Starbucks Coffee Switzerland AG Zurich, Switzerland 100 100

Starbucks Coffee Austria GmbH Vienna, Austria 100 100

Starbucks Coffee France SAS Paris, France 100 100

Starbucks Coffee Trading Company Sarl Lausanne, Switzerland 100 100

Starbucks Coffee Netherlands BV Amsterdam, Netherlands 100 100

Starbucks Farmer Support Center

Ethiopia Plc Addis Ababa, Ethiopia 100 100

Corporacion Starbucks Farmer Support

Center Colombia

Manizales, Colombia 100 100

Starbucks Farmer Support Center Mexico Chiapas, Mexico 100 100




- 19 -

7. SUBSIDIARES (continued)

Name

Place of incorporation and

principal place of business

Proportion

of

ownership

interest

%

Proportion of

voting power

held

%


Tanzania Ltd Mbeya, Tanzania 100 100


Rwanda Ltd

Kigali, Rwanda 100 100

Starbucks Coffee Agronomy Company

Srl

San Jose, Costa Rica 100 100

Starbucks Coffee Development (Yunnan)

Company Limited Yunnan, China 100 100

Starbucks Singapore Investment Pte. Singapore 51 51

8. DEBTORS


2016 2015

$’000 $’000

Amounts falling due within one year:

Amounts owed by group undertakings 1,697,369 -

1,697,369 -


2016 2015

$’000 $’000

Amounts falling due after more than one year:

Other debtors 874 -

874 -

9. TRADE AND OTHER CREDITORS


2016 2015

$’000 $’000

Amounts owed to Group Undertakings 1,359 -

Other taxation and social security 867 -

2,226 -




- 20 -

10. CALLED UP SHARE CAPITAL



2016 2015

$’000 $’000

Issued and fully paid up

100,400 ordinary shares of £1.00 each 157 157

11. SHARE PREMIUM ACCOUNT

Share

Premium

$’000

Balance at 23 July 2014 -

Premium arising on issue of equity shares 2,068,999

Balance at 27 September 2015 and 2 October 2016 2,068,999

12. PROFIT AND LOSS ACCOUNT

Period ended

27 September

2015

$’000

Balance at 23 July 2014 and 27 September 2015 -

Profit for the financial year 1,750,467

Balance at 2 October 2016 1,750,467

13. CONTROLLING PARTY

In the opinion of the directors, the Company’s ultimate parent company and ultimate

controlling party is Starbucks Corporation, a company registered in the state of Washington,

USA, and is the largest and smallest group in which the results of the Company are

consolidated.

Copies of the consolidated accounts of Starbucks Corporation can be obtained from the

Investor Relations section of the Starbucks website at investor.starbucks.com.

The Company’s immediate controlling party is Starbucks International (Holdings) Ltd.

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome

Documents

STARBUCKS EMEA HOLDINGS LTD Registered Number 09144787 ...globalassets.starbucks.com/assets/B1F2908C1F4944... · The key elements of the system of internal control that minimise and