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IN SHANGHAI, CHINA

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

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

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INVESTING ABROAD Missing an expanding market Gaining large potential revenues

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

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

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l. Shanghai

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.. 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

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

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Krispy Kremes promotion

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Spreading the Word Promote product awareness Increase customer base

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

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Profit Projections Domestic profits will stagnate Foreign profits will climb

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High Potential Revenue Chinas growing economy Already available marketing plan Widely accepted western culture

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

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Seize this opportunity See you at the next meeting!