TRAINING WEBINARJULY 2015

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2

Global Wine CapacitySpain has the largest planting of grape vines in the world.

0

20

40

60

80

100%

Surface Vine Area (mha)

Europe

France 800 (21.5%)

Italy 769 (20.7%)

Spain 1,018 (27.4%)

Turkey 517 (13.9%)

Other 618 (16.6%)

AP/Africa

Australia 169 (18.6%)

China 570 (62.8%)

South Africa 131 (14.4%)

South America

Chile 205 (39.7%)

Argentina 221

(42.7%)

Other 91 (17.6%)

North America

Other 37 (4.1%)

USA 407 (100.0%)

3

Global Wine CapacitySpain has the largest planting of grape vines in the world.

Source: Company data

4

Preference Manager

5

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

Millions of Cases

1995

2,800

Old World

229

New World

154

China

35

Other

80

2004

3,298

Old World

-460

New World

25

China

111

Other

-186

2012

2,788

-15%-15%

Global Wine ProductionProduction was rising until 2004 but it has since fallen by 15%, primarily in old world markets.

Source: OVI

6

Global Wine ProductionProduction was rising until 2004 but it has since fallen by 15%, primarily in old world markets.

Source: OVI

7

Luxury Goods MarketThe highest price segments (cars, hospitality, jets) are growing much faster than lower price segments like food and personal goods.

Market Growth

Cars

10%

Hospitality

9% 9%

Wine

5%

2%

Personal Goods

2%

Other

2%

£351B £150B £19B£58B£39B £223B £45BMarket Size

Jets Food

8

Luxury Goods MarketThe highest price segments (cars, hospitality, jets) are growing much faster than lower price segments like food and personal goods.

Source: Company information

9

-10.0

-5.0

0.0

5.0

10.0

15.0%

0 15 20 25 30 35 40 45 50 55 60Liter

300M Population

Consumption Volume per Capita

Consumption Growth

China

U.S.

Germany

France

UK

ItalySpain

Argentina

300M Population

Australia

Portugal

Global Wine ConsumptionMany of the bigger consumption markets are declining but China is on the rise.

Source: OVI

10

Global Wine ConsumptionMany of the bigger consumption markets are declining but China is on the rise.

Source: OVI

11

0

100

200

300

400

500

Millions of Cases

2007

60

2008

85

2009

135

2010

170

2011

200

2012

245

2013

300

2014E

340

2015E

370

2016E

450

+650%

23%

33%

2007-2016CAGR

+650%

Domestic Production

Imports

Wine Consumption in ChinaWine consumption in China has exploded. While domestic production has also grown, import volumes have grown even faster to keep pace with demand.

Source: OVI

12

Wine Consumption in ChinaWine consumption in China has exploded. While domestic production has also grown, import volumes have grown even faster to keep pace with demand.

Source: OVI

13

Starbucks Growth by RegionGrowth in the Americas been relatively steady, EMEA has rebounded and growth has moderated in China and AP.

Source: Company data

-10

0

10

20

30%

Same Stores Sales Growth

Average 8%

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Average 8%

AmericasEMEA

China/AP

14

Starbucks Growth by RegionGrowth in the Americas been relatively steady, EMEA has rebounded and growth has moderated in China and AP.

Source: Company data

15

Starbucks Growth by RegionGrowth in the Americas been relatively steady, EMEA has rebounded and growth has moderated in China and AP.

Source: Company data

-0.1

0.0

0.1

0.2

0.3

Average 0.1

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13

Average 0.1

16

Restaurant StocksInvestors are paying a premium for earnings growth at Dunkin, Dominos and Starbucks.

Source: Bloomberg, Company information

0

11

12

13

14

15

16

17

18

19

20

0 10 20 30 40%

Earnings Growth

Valuation EV/EBITDA

Yum!

Wendy's

Tim Horton's

Starbucks

McDonald's

Dunkin

Dominos

17

Restaurant StocksInvestors are paying a premium for earnings growth at Dunkin, Dominos and Starbucks.

Source: Bloomberg, Company information

18

TablesHow do different professionals use Mekko Graphics?

Strategy Marketing Finance

Chart usage:

• Marimekko

• Cascade

• Bar is most used chart

Key enhancements:

• Axis breaks

• CAGR columns

• Growth lines

19

Project TimelineThe taskforce will complete the project according to this timeline.

Task

Refine Project Scope

•Conduct interviews

•Present preliminary findings

Prepare RFP 3/8/2015

• Identify vendors

•Solicit bids 5/4/2015

Project begins

•Field interviews

•Competitive assessment

Finalize budget 3/14/2015

Feb Mar Apr May Jun Jul Aug

1 8 15 22 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23

3/8/2015

5/4/2015

3/14/2015

20

Use Cases

0

20

40

60

80

100%

% of Locations

Applebees

Midwest

West

South

Mid Atlantic

Southwest

FloridaNew England

Panera Chipotle Chilis PF Changs

GA TX AZCOMOState origin

Cheesecake Factory

0

5

10

15%

Average 8%

Vitamins

5%

Herbs/Botanicals

6%

Sports Nutrition

12%

Minerals

4%

Meal Supplements

15%

Specialty/Other

8%Average 8%

Marimekko

Bar Mekko

Cascade

Market Map- sales by competitors by regionsProduct Portfolio-sales by product by product lineResource Allocation-costs by plant by product

Growth Profile—growth $ or % & revenue by businessProfit Pool—profit % & revenue by segment or product lineMarket Share—market share % & revenue by segment

Performance Improvement-earnings changes between yearsDeal Value-revenue synergies, cost synergies, totalStore Mix by Region-current #, adds by region, future #

2,000

2,200

2,400

2,600

2,800

3,000

3,200

3,400

Millions of Cases

1995

2,800

Old World

229

New World

154

China

35

Other

80

2004

3,298

Old World

-460

New World

25

China

111

Other

-186

2012

2,788

-15%-15%

21

Use Cases

0

11

12

13

14

15

16

17

18

19

20

0 10 20 30 40%

Earnings Growth

Valuation EV/EBITDA

Yum!

Wendy's

Tim Horton's

Starbucks

McDonald's

Dunkin

Dominos

Stacked Bar

Bubble

Scatter

Market Growth--sales by segment over timeSales Mix—Sales by customer or business segment over timeCost Bar—breakdown of total costs by type

RMS/ROS--relative market share, return on sales and revenueCustomer Profitability--profit %, revenue, cost varianceProduct Portfolio--2 key purchase dimensions and revenue

Growth Map--sales growth by competitor for 2 marketsPurchase Decision Matrix--suppliers by cost & capabilitiesExperience Curve—units produced & cost/unit over time

-10.0

-5.0

0.0

5.0

10.0

15.0%

0 20 40 60Liter

300M Population

Consumption Volume per Capita

Consumption Growth

China

U.S.

Germany

France

UK

ItalySpain

Argentina

300M Population

Australia

Portugal

0

100

200

300

400

500

Millions of Cases

2007

60

2008

85

2009

135

2010

170

2011

200

2012

245

2013

300

2014

340

2015

370

2016

450

+650%

23%

33%

CAGR

+650%

Domestic Production

Imports

22

Resources

Learn Ask Connect

Training videosSample chartsPresentations Strategy Consultant’s ToolkitBlogFAQsDocumentationPalettes

Mekko Graphics Toolbar

MekkoGraphics.com

23

Questions?

24

Additional Features

0

10

20

30

40%

New York

37%

Chicago

32%

Los Angeles

25%

Boston

18%15%

Close Rate Last 12 Months

Denver

Apply Cell Colors from Spreadsheet or using Conditional Formatting

Values Scaling

0

200,000

400,000

600,000

800,000

1,000,000

Units (Thousands)

Android

758,720

iOS

150,786

Microsoft

30,843

Blackberry

18,606