BEHIND A CUP OF COFFEE:

1. BEHIND A CUP OF COFFEE: HOW FAMOUS BRANDS COVER THEMESELVES Creti Carolina, Francesconi Elena, Martiriggiano Sara, Saccenti Elisa Risk Management & Derivatives, A.Y 2013-2014

2. Table Of Content • The coffee market • Starbucks • Dunkin’ Donuts • Green Mountain • Conclusion

3. THE COFFEE MARKET SOME NUMBERS • The second most traded commodity after oil; • Global production of US$ 15.4 billion in 2009/10 • 4 billion cups consumed every day around the World (Americans 400 million cups);

4. MAYOR PRODUCERS • TOP 5 • -BRAZIL 33% • -VIETNAM 15% • -INDONESIA 6.3% • COLOMBIA 5.9% • ETHIOPIA 5.0% • 65.6% r:Coffea canephoram:Coffea canephora and Coffea arabicaa:Coffea arabica

5. A Liberalized Market • The coffee market is for its nature unstable, and the price is sensitive to the supply/ demand, to the speculation on the financial market, and to political questions; • The volatility is increased after the stop of the “International Coffee Agreement” in 1989. This system provided that, when the prices fell below a certain level, the producer country could not enter into the same market over a predefined quotas.

6. A Liberalized Market 231 March 2011 109.24 Dec. 2013 Worst Level • 2007 achieved the same level as 1989; • peak in 2011/2012 • Oct 2013: lowest level since March 2009,

7. ITS QUOTES- “Arabica vs Robusta”

8. A COMPETITIVE MARKET • There are many realities widespread all over the World

9. OUR ANALYSIS

11. Company Overview 1 Starbucks

12. Core Business • purchase and roast high-quality whole bean coffees for sale • sell teas and other beverages, food items and beverage-related accessories and equipment, primarily through company operated retail stores + licensed retail stores • in addition to the flagship Starbucks brand the portfolio also includes goods and services offered under other brands: Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks dicembre 2013 Starbucks 12

13. The mission of the company • “To inspire and nurture the human spirit – one person, one cup and one neighborhood at time”. The objective: “to maintain Starbucks standing as one of the most recognized and respected brands in the world” Starbucks

14. The mission of the company

15. Global Expansion Today it is in 62 countries around the world and it has about 18000 stores world-wide. Starbucks

16. Price Stock Starbucks Corporation’s common stock is listed on NASDAQ, under the trading symbol “SBUX”. The price of the stock is around 80 us$ Starbucks

17. Financial Statement 2 Starbucks

18. ConsolidatedBalance Sheets

20. Consolidated Statement Of Comprehensive Income

21. Consolidated Statement Of Cash Flows

23. Risk Factors & Managements 3 Starbucks

24. General RiskFactors [1/3] dicembre 2013 Starbucks 24

25. General RiskFactors [2/3] dicembre 2013 Starbucks 25

26. Growth targets • The performances of the international operations may be affected by: • foreign currency exchange rate fluctuations, or requirements to transact in specific currencies; • changes or uncertainties in economic, legal, regulatory, social and political conditions in their markets; • interpretation and application of laws and regulations; • restrictive actions of foreign or US governmental authorities affecting trade and foreign investment; • import or other business licensing requirements; • the enforceability of intellectual property and contract rights; • limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new US and international regulations; • in developing economies, the growth rate in the portion of the population achieving targeted levels of disposable income may not be as fast as they forecast; • difficulty in staffing, developing and managing foreign operations and supply chain logistics, including ensuring the consistency of product quality and service, due to distance, language and cultural differences, as well as challenges in recruiting and retaining high quality employees in local markets; • local laws that make it more expensive and complex to negotiate with, retain or terminate employees; • delays in store openings for reasons beyond their control, competition with locally relevant competitors or a lack of desirable real estate locations available for lease at reasonable rates; • disruption in energy supplies affecting their markets. dicembre 2013 Starbucks 26

27. General RiskFactors [3/3] dicembre 2013 Starbucks 27

28. Financial Condition • Financial condition and results of operations are sensitive to, and may be adversely affected by, a number of factors, many of which are largely outside their control: • declines in general consumer demand for specialty coffee products; • increases in labor costs such as increased health care costs, general market wage levels and workers' compensation insurance costs; • adverse outcomes of current or future litigation; • especially in larger or fast growing markets, labor discord, war, terrorism, political instability, boycotts, social unrest, and natural disasters, including health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in their stores. dicembre 2013 Starbucks 28

29. Hedging Philosophy Starbuck manages his exposure to various market-based risks according to a market price risk management policy. The market price risk management policy governs how hedging instruments may be used to mitigate risk Risk limits are set annually and prohibit speculative trading activity. Besides, Starbuck also monitors and limits the amount of associated counterparty credit risk. dicembre 2013 Starbucks 29

30. Commodity prices, availability and General Risk Conditions Commodity price risk represents Starbucks primary market risk, generated by the purchases of green coffee and dairy products, among other items. Risk arises from the price volatility of green coffee. dicembre 2013 Starbucks 30

31. Financial Risk Management [1/2] dicembre 2013 31

32. Financial Risk Management [2/2] dicembre 2013 32

33. Derivative Financial Instruments [1/4] dicembre 2013 Starbucks 33

34. Derivative Financial Instruments [2/4] dicembre 2013 Starbucks 34

35. Derivative Financial Instruments [3/4] The following table presents the pretax effect of derivative contracts designated as hedging instruments on earnings and other comprehensive income ("OCI") for fiscal years ending (in millions): dicembre 2013 Starbucks 35

36. Derivative Financial Instruments [4/4] The following table presents the pretax effect of derivative contracts not designated as hedging instruments on earnings for fiscal years ending (in millions): Notional amounts of outstanding derivative contracts (in millions): dicembre 2013 Starbucks 36

38. Company Overview 1 DUNKIN' BRANDS GROUP, INC

39. Core Business • One of the world's leading franchisors of quick service restaurants (“QSRs”) serving hot and cold coffee and baked goods, as well as hard serve ice cream • Operate business in four segments: Dunkin' Donuts U.S., Dunkin' Donuts International, Baskin-Robbins International and Baskin-Robbins U.S. Starbucks dicembre 2013 DUNKIN' BRANDS GROUP, INC 39

40. The mission of the company At Dunkin' Brands, community is the heart of our business. That's why we established The Dunkin' Donuts & Baskin-Robbins Community Foundation. Working in partnership with Dunkin' Donuts and Baskin-Robbins franchisees across the country, the Foundation serves the basic needs of our communities through food for the hungry, safety and children's health. It's what we do every day. DUNKIN' BRANDS GROUP, INC

41. Global Expansion- Dunkin' Donuts - 3,100 stores in 30 countries outside of the U.S. DUNKIN' BRANDS GROUP, INC

42. Global Expansion- Baskin-Robbins - 7,000 store locations in over 50 countries outside the US.. DUNKIN' BRANDS GROUP, INC

43. Price Stock Starbucks Corporation’s common stock is listed on NASDAQ, under the trading symbol “SBUX”. The price of the stock is around 80 us$ DUNKIN' BRANDS GROUP, INC

44. Financial Statement 2 DUNKIN' BRANDS GROUP, INC

45. Segment profit +4,77% +8,84% DUNKIN' BRANDS GROUP, INC

46. Consolidated Balance Sheets DUNKIN' BRANDS GROUP, INC

47. Consolidated Statements of Operation DUNKIN' BRANDS GROUP, INC

48. Consolidated Statements of Comprehensive Income DUNKIN' BRANDS GROUP, INC

49. Consolidated Statements of Cash Flows DUNKIN' BRANDS GROUP, INC

50. Consolidated Statements of Stockholders’ Equity (Deficit) DUNKIN' BRANDS GROUP, INC