1. Al-Ghazzawi Group Food and Beverage Strategy Overview March 2012

2. Al-Ghazzawi groupPage 2 Agenda ► To review the strategy elements for Food and Beverage Sector for final approval ► Vision & mission statements ► Growth Strategies ► Performance Objectives ► Strategic Initiatives ► Develop an implementation roadmap for strategic initiatives

3. Al-Ghazzawi groupPage 3 Outline ► Background ► Highlight of SWOT ► Vision and Mission ► Growth Strategies ► Performance Objectives ► Strategic Initiatives & Actions List ► Strategic Initiatives List ► The 5 Year Roadmap ► New Initiative Investment Request

4. Al-Ghazzawi groupPage 4 Background GDC was granted the exclusive franchising rights to develop and operate Joffrey’s Coffee & Tea Co. under the Joffrey’s Systems throughout the Kingdom of Saudi Arabia, and certain countries in the Middle East and South Asia. At present, GDC has 51 (Fifty One) Joffrey’s outlets & six sub franchises in Jeddah, Dammam and Riyadh (Saudi Arabia), Bahrain, Beirut (sub franchise) and has continued planning to develop and operate additional Joffrey’s outlets in due course.

5. Al-Ghazzawi groupPage 5 Highlight of SWOT Key Strengths ► Early penetration in Saudi market ► Product quality ► Positive customer perception Key Weaknesses ► Poor visibility in key locations in KSA ► Retention of key employees ► Staff motivation and morale Key Opportunities ► Big market in KSA and Middle East ► Wholesale market penetration Key Threats ► Competitor strategies ► New government regulations may limit use of expatriate workers

6. Al-Ghazzawi groupPage 6 Mission and vision statements Mission Statement: To establish sensational warm and inviting Social experience, and tie with our customer through generations in Saudi Arabia and the Middle East in food and beverage services Vision Statement: To be the first choice in food and beverage services

7. Al-Ghazzawi groupPage 7 Growth Strategies Growing outlets from 58 to 100, by adding 8 outlets each year. 6 kiosks and 2 shops. Sub-Franchise: from 1 in Lebanon and 4 in KSA to 5 in KSA. Keep wholesale - Sub-Franchise: add 15 more in new areas in the middle east. Plan to open new Food and Beverage brand Study the possibility of opening catering business. Markets/Geography growth Current Markets/ Geographies New Markets/Geographies Type of growth Organic growth (Extension of current products/services) Inorganic growth (Step outs in new products/services)

8. Al-Ghazzawi groupPage 8 5 Year Growth Strategy – Overall View Revenues Profit margins - 20%0%5%10%15%20%25%30%Over 30% 00 M SR 50M SR 75M Over SR100M Exist Outlets 2012 29 M Wholesale 2012 1.9 M Sub-Franchise 2012 0.47M 2016 3.94 New Outlets Revenue (2012): SR33.05 MForecasted Revenue (2016): SR64.23 M SR 25M 2012 1.68 M 2016 5.63M 2016 50.72 M 2016 3.94

9. Al-Ghazzawi groupPage 9 5 Year Growth Strategy (Cont’d) Revenues Profit margins -0%0%10%20%30%+ 30% 00 M SR 60M - 10% SR 50M SR 40M SR 30M SR 20M SR 10M 2012 26 M (15%) Existing Outlets 2013 33.35 M (17%) 2014 38.35 M (18%) 2015 44.1 M (20%) 2016 50.72 M (22%)

10. Al-Ghazzawi groupPage 10 5 Year Growth Strategy (Cont’d) Revenues Profit margins 4%8%10%12%14%16% 00 M SR 6M 6% SR 5M SR 4M SR 3M SR 2M SR 1M 2012 1.68 M (10%) New Outlets 2013 3.70 M (12%) 2014 4.25 M (13%) 2015 4.90 M (15%) 2016 5.63 M (16%)

11. Al-Ghazzawi groupPage 11 5 Year Growth Strategy (Cont’d) Revenues Profit margins 2012 0.47 M (70)% SR 6M 0M SR 2M SR 3M SR 4M SR 5M SR 1M - 20%0%10%20%30%+ 30%- 10% Sub Franchise 2013 0.90 M (70)% 2014 1.50 M (70)% 2015 2 M (70)% 2016 3.94 M (70)%

12. Al-Ghazzawi groupPage 12 5 Year Growth Strategy (Cont’d) Revenues Profit margins 2012 1.9 M (40%) SR 6M 0M SR 2M SR 3M SR 4M SR 5M SR 1M - 20%0%10%20%30%+ 30%- 10% Wholesale 2013 2.28 M (40%) 2014 2.74 M (40%) 2015 3.28 M (40%) 2016 3.94 M (40%)

13. Al-Ghazzawi groupPage 13 Sector and business performance objectives Strategic goalsSector objectivesKPIsJoffrey’sKPIs Financial: Create sustainable and profitable businesses with positive cash flow and return on capital Diversify the sector income through several brands and business OperationIncrease existing outlets sales by 15 % on early basis Leverage 50 % of financial needs for growth from internal accruals (2 Million) Increase sub-franchise income from 350 K to 6 Million by increasing sub- franchises to 25 Operation /Financial Customer: Establish loyal & satisfied customers through effective relationship and follow-up approaches Develop ment Increase loyalty cards & matching offering for 90 % of regular customers by end of 2013 Serving customers in time with required quality as per our SOP Ensure and control sub-franchises achieve 90 % evaluation rate on SER by controlling Operation Growth: Establish effective organization, management and operational systems to achieve efficient and reliable operations Increase our brands portfolio by opening a new food & beverage Al-Ghazzawi brand Develop ment Open 8 new outlets (6 kiosks and 2 shops) in prime locations (high traffic with higher average income) Operation

14. Al-Ghazzawi groupPage 14 Sector and business performance objectives Strategic goalsSector objectivesKPIsJoffrey’sKPIs Management/Operational Excellence: Establish effective organization, management and operational systems to achieve efficient and reliable operations Hire qualified managers for this expansion HRManage sub-franchises to quality requirements by master franchiser Standardize our Manual Focus and maintain our quality Operation Employee Engagement: Develop motivated, competent, loyal and aligned employees to deliver the business strategy Design and implement a comprehensive HR system in addition to career development. HRReduce Turnover of Joffrey’s employees from 30 % to 10 % within 5 years HR

15. Al-Ghazzawi groupPage 15 Strategic Initiatives & Actions List #ChallengesStrategic Goal Key Initiatives & Action Items (KI : Key Initiatives) (AI: Action Item) 20122013201420152016 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 1 Limited sub- franchise base, which doesn’t utilize Joffrey’s master franchise agreement Manageme nt / Operational Excellence 1.1 Review and update terms and contracts with sub-franchises in local and international locations (AI) 1.2 Update current SER (Service Evaluation Criteria) (AI) 1.3 Establish sub-franchise management function(KI) XXXXXX 2 Food and beverage business in Al- Ghazzawi is limited to Joffrey’s franchise, putting this sector in jeopardize if a conflict with Joffrey’s happened or they decided to seize partnership with Al-Ghazzawi Growth 2.1 Market study for positioning a new brand (KI) 2.2 Business plan for new brand (KI) 2.3 Establish new brand(KI) 2.4 Feasibility study for creating catering arm (KI) XXXXXX X

16. Al-Ghazzawi groupPage 16 Strategic Initiatives & Actions List #ChallengesStrategic Goal Key Initiatives & Action Items (KI : Key Initiatives) (AI: Action Item) 20122013201420152016 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 3 Lack of customer data to help in customer relationship management Customer3.1 Create information system and database for regular customers (AI) 3.2 Establish CRM function (KI) XXXX 4 Limited financial resources to support expansion plans Finance4.1 Secure 50 % of financial needs on yearly basis (approximately SR 2 Million financing) (AI) 5 Full support of top management Management / Operational Excellence 5.1 Approve & commit detailed expansion plan based on agreed upon strategy (AI) X 6 Adequate and qualified support function (HR, Logistics, Finance) that matches planned growth Management / Operational Excellence 6.1 Design and implement HR system (KI) 6.2 Design and implement clear financial PnP (AI) 6.3 Prepare supply chain plan that matches expansion required (KI) XXXX X

17. Al-Ghazzawi groupPage 17 Strategic Initiatives & Actions List #ChallengesStrategic Goal Key Initiatives & Action Items (KI : Key Initiatives) (AI: Action Item) 20122013201420152016 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 Q1Q1 Q2Q2 Q3Q3 Q4Q4 7 Reduce employees turnover from 30% to 10% Employee Engagement 7.1 Design and implement training program (KI) 7.2 Design and implement performance based incentives (AI) 7.3 Design and implement career development plan (AI) XXXX X 8 Decrease customer complaints by at least 50% Customer 8.1 Establish a customer service section to collect, analyze and resolve customer complaints (KI) 8.2 Create customer complaints database (AI) X X 9 Improve Joffrey’s brand image Management / Operational Excellence 9.1 Standardize brand identity (Manual colors, logos and outlets design) (KI) X

18. Al-Ghazzawi groupPage 18 Strategic Initiatives List #Key InitiativesTime Investment Needed (SR) 1Establish sub-franchise management function2012 (Q2)TBD 2Market study for positioning a new brand2013 (Q1)TBD 3Business Plan for new brand2013 (Q1)TBD 4 Establish new brand2015 (Q2)TBD 5Feasibility study for catering arm2013 (Q1)TBD 6Establish CRM function2012 (Q2)TBD 7 Supply chain planning2013 (Q1)TBD 8Design and implement training program2012 (Q2)TBD 9Establish customer service section2012 (Q2)TBD 10Standardize brand identity2012 (Q2)TBD TBD : To be determined

19. Al-Ghazzawi groupPage 19 The 5 Year Roadmap  Review contracts (1.1)  Establish sub-franchise management function (1.3)  Establish CRM function (3.2)  Design and implement training program (7.1) Performance Implementation of Operational Excellence Scale to high performance Getting house in order 2012 2013 - 20142015 >  Establish customer service section (8.1)  Standardize brand identity (9.1) Stage 1 Stage 2 Stage 3  Market study and business plan for a new brand (2.1,2.2)  Feasibility study for creating a catering arm (2.4)  Prepare supply chain plan (6.3)  Establish a new brand (2.3)

20. Al-Ghazzawi groupPage 20 Appendix

21. Al-Ghazzawi groupPage 21 New Initiative Investment Request 1The Challenge 2Objectives 3Scope of the Initiative 4Expected Benefits 5Estimated Investment Needed (SR) 6Resources required 7Timing