IN SHANGHAI, CHINA

MANAGEMENT TEAM CEO SOSAN ROMANI CIA TANTY WIDYASTUTI VP PR BRIDGET NG VP MKTG HENDRIK LIM CFO TYLER HOLLENBECK COO SHIRLEY HOI KI HO

3 INDICATORS OF SUCCESS AVERAGE NEW STORE 1 ST WEEK SALES NEW STORE OPENINGS COMPARABLE STORE SALES GROWTH

INVESTING ABROAD Missing an expanding market Gaining large potential revenues

China’s Present Economic Condition Persistent Improvement in Gross Domestic Product Continuous Growth of Chinese Currency Constructive Policies in Promoting Foreign Investment

Policies Promoting Foreign Investments Authorization of Fully Foreign–Owned Enterprises Alliance with the WTO Establishment of Special Economic Zones

l. Shanghai

.. INFRASTRUCTURE AND CULTURE IN CHINA Shanghai has a well developed infrastructure Cultural group orientation promotes team work Young Chinese are attracted to western culture

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Tapping into Chinese Demand American products are widely accepted Large revenues are easily attainable

Reaching the Foreign Market Target market Segment in Shanghai Krispy Kreme pricing strategy Krispy Kreme advertising campaign

Krispy Kreme’s promotion

Spreading the Word Promote product awareness Increase customer base

Financing Expansion Expansion requires $7.5 million in capital Terms of borrowing are currently favorable Projected revenues will cover debt payments

Profit Projections Domestic profits will stagnate Foreign profits will climb

High Potential Revenue China’s growing economy Already available marketing plan Widely accepted western culture

Why franchise with Krispy Kreme? A universal appeal The potential for growth

Seize this opportunity See you at the next meeting!