2. Marketing

3. Three months Ended March 31 $ thousands20112010Change Net sales revenue8,80210,545(1,743) Big Rock is losing money – Why? Decline in sales Value brands

4. Distillers competitor analysis Beer Units/ Case Size (ml) Base Price Warsteiner Premium (Germany)1234126.80 Big Rock – Grasshopper - Craft1234124.13 Big Rock – Honey Brown Lager - Craft1234124.13 Big Rock – Alberta Genuine Draft – “Value” 1534124.19 Lucky Lager – Labatt1234119.38 Labatt Blue1234122.98 Kokanee - Labatt1234122.98 Great Western Lager, Pilsner, etc.1234122.49 Coors Light1234122.59 Budweiser – Labatt1234122.98 Sleemen Clear1234122.00

5. The marketing mix Products/Services Pricing Place Promotion

6. Operations

7. Location Four potential locations Clients, atmosphere and competition

8. BelgoMetropolitan GrillUnicorn PubDakota Bar and Grill Flames CentralChicago ChophouseZen 8Earl’s

9. Detailed operations Hours – Lunch and dinner Menu and food  Specialty menu  Fresh local ingredients

10. Floor plan

11. Human Resources

12. General Manager ManagerKitchenManager – Lounge Chef Cook Prep Cook Dishwasher Bartender Server Hostess General Manager – KitchenManager – Lounge Chef Cook Prep Cook Dishwasher Bartender Server Organizational chart

13. Finance

14. Year 1Year 2Year 3Year 4Year 5Year 6 Sales Beverage 459,900 492,093 526,540 568,663 614,156 669,430 Food 3,942,000 4,217,940 4,513,196 4,874,251 5,264,192 5,737,969 TOTAL 4,401,900 4,710,033 5,039,735 5,442,914 5,878,347 6,407,399 COGS Beverage 65,700 69,971 74,519 80,107 85,915 93,003 Food 1,971,000 2,099,115 2,235,557 2,403,224 2,577,458 2,790,098 TOTAL 2,036,700 2,169,086 2,310,076 2,483,332 2,663,373 2,883,102 Gross margin 2,365,200 2,540,948 2,729,659 2,959,582 3,214,974 3,524,297 Gross Margin %53.7%53.9%54.2%54.4%54.7%55.0% GM % - Food50.0%50.2%50.5%50.7%51.0%51.4% Gm % - Beverages85.7%85.8% 85.9%86.0%86.1% Operating Expenses TOTAL 1,839,512 1,952,294 2,072,238 2,205,687 2,347,911 2,506,763 Net Profit/(Loss) 525,688 588,653 657,421 753,895 867,063 1,017,534 Five year divisional analysis

15. Net Profit/(Loss) 525,688 588,653 657,421 753,895 867,063 1,017,534 DCFs 498,678 529,718 561,204 610,493 666,060 741,487 TOTAL DCFs 3,607,641 Start-up costs (2,500,000) NPV 1,107,641 WACC5.416% Dividend Yield5.53% Weighted-Average Interest Cost4.23% IRR16.78% Payback Period3.97years Does it make financial sense?

16. Questions?

17. Financial assumptions ASSUMPTIONS Sales GrowthCOGS Efficiency FactorSpoilage5% Year 15%Year 10.50%(annual, % of COGS) Year 25%Year 20.50% Year 36%Year 30.50%Discount Rate Year 46%Year 40.75%5.416% Year 57%Year 50.75% (per year)Salary Growth Inflation2%(real, annually)4% (annual) Rental Commissiondividend yield is 5.53% (per google finance)5.53% % of sales2%Weighted-Average Effective Interest Rate (2011'Q1 report, page 6 of 19) 4.23% Sales per day Food $ 10,800.00 (based on 180 tables sold per day, @ 3 customers per table)Debt/Capitalization(per same report)Q18.60% Beverages $ 1,260.00 (based on 180 beverages sold per day)page 8of19Q4'109.20% Average8.90% COGS per day Food $ 5,400.00Debt32088.75% Beverages $ 180.00Equity3345291.25% Total Capitalization36660 Average Selling PriceAverage Daily SalesWACC5.416% Food$20/customerFood540 customers Beverages$7/beverageBeverages180 customers