1. Al-Ghazzawi Group Food and Beverage Strategy Overview February 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 ► New Initiative Investment Request ► 5 Year Roadmap

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 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 26 M 55 M Wholesale 1.6 M 6 M Sub-Franchise3.6 K 3.3 M New Outlets 24 M Sales (2011): SR26 MForecasted Sales (2017): SR88 M SR 25M

9. Al-Ghazzawi groupPage 9 5 Year Growth Strategy (Cont’d) Revenues Profit margins - 20%0%10%20%30%+ 30% 00 M SR 60M - 10% SR 50M SR 40M SR 30M SR 20M SR 10M 24 M 26 M 55 M Existing Outlets New Outlets

10. Al-Ghazzawi groupPage 10 5 Year Growth Strategy (Cont’d) Revenues Profit margins 1.6 M 6 M 3.6 K 3.3 M SR 6M 0M SR 2M SR 3M SR 4M SR 5M SR 1M - 20%0%10%20%30%+ 30%- 10% Sub Franchise Wholesale

11. Al-Ghazzawi groupPage 11 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

12. Al-Ghazzawi groupPage 12 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 HR 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 Decrease customer complaint about our service by 50 % HR

13. Al-Ghazzawi groupPage 13 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 1.1 Review and update terms and contracts with sub-franchises in local and international 1.2 Update current SER (Service Evaluation Criteria) 1.3 Establish sub-franchise management function 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 2.1 Market study for positioning a new brand 2.2 Business plan for new brand 2.3 Establish new brand 2.4 Feasibility study for creating catering arm XXXXXX X

14. Al-Ghazzawi groupPage 14 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 3.1 Create information system and database for regular customers 3.2 Establish management section to manage the new function XXXX 4 Limited financial resources to support expansion plans 4.1 Secure 50 % of financial needs on yearly basis (approximately 2 Million financing) 5 Full support of top management 5.1 Approve & commit detailed expansion plan based on agreed upon strategy X 6 Adequate and qualified support function (HR, Logistics, Finance) that matches planned growth 6.1 Design and implement HR system 6.2 Design and implement clear financial PnP 6.3 Prepare supply chain plan that matches expansion required XXXX X

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 7 Reduce employees turnover from 30% to 10% 7.1 Design and implement training program 7.2 Design and implement performance based incentives 7.3 Design and implement career development plan XXXX X 8 Decrease customer complaints by at least 50% 8.1 Establish a customer service section to collect, analyze and resolve customer complaints 8.2 Create customer complaints database X X 9 Improve Joffrey’s brand image 9.1 Standardize brand identity (colors, logos and outlets design) X

16. Al-Ghazzawi groupPage 16 Strategic Initiatives List #Key InitiativesTime Investment Needed (SR) 1 To promote a congenial and professional environment to reduce our employee turnover ratio 2013 (Q2)TBD 2 To standardize our Operational Manual for achieving operational Excellency and quality2012(Q4)1 Mn. 3 To build the image of Joffreys via some advertisements and exhibition participation activities which will result in improving our sub franchise base and awareness about our brand 4 Training our staff by appointing a qualified trainer to help to upgrade our operational efficiency, hospitality and quality levels

17. Al-Ghazzawi groupPage 17 New Initiative Investment Request 1The Challenge 2Objectives 3Scope of the Initiative 4Expected Benefits 5Estimated Investment Needed (SR) 6Resources required 7Timing

18. Al-Ghazzawi groupPage 18 5 Year Roadmap  Initiatives Performance Implementation of Operational Excellence Scale to high performance Getting house in order 2012 2013 - 20142015 >  Initiatives Stage 1 Stage 2 Stage 3