Pershing Square Activist Presentation Deck

Wide Competitive Moat in China While competition in China has recently intensified, we believe that Starbucks has a defensible moat underpinned by several key advantages Global brand operating in China for nearly 20 years ▪ Synonymous with the highest-quality coffee and a premium "third-place" experience ▪ Local upstart Luckin only began operations in January, while Costa entered China in 2006 and is not well-known outside the UK Scale and industry leadership position ~3,400 stores in China today, more than 3x as many as Luckin and 7x as many as Costa Leading loyalty program with 7 million, 90-day active My Starbucks Rewards members ■ Partnership with Alibaba-owned Ele.me to roll out delivery across China in 2019 Vertical integration ensures quality control and supplier availability First-mover advantage in most desirable real estate locations Profitable operating model with no need for venture funding to fund growth Excellent operational and management skills Learnings from other Western brands that have succeeded in China, most notably KFC Can quickly hire, train, and develop best-in-class talent 26

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