Al RIFAI ROASTERY Development Plan Highlights

Egypt

MACRO FACT SHEETEGYPT

Egypt Macro - Fact Sheet

Total Egyptian Population 90,000,000

Geographic Relevant Population (Cairo + Giza + Alexandria + Red Sea Urban+ Delta Urban) 40,000,000

Relevant Age Grp (15-64) 25,000,000

Relevant Income Level (30% - income level LE 15,000+) 7,500,000

Males (50.4%) 3,780,000

Females (49.6%) 3,720,000

Relevant population Avg Monthly Spend on Food & Beverage - Estimate (LE) 3,100

COMPETITION MAPPINGAL RIFAI EGYPT

Upscale Roasteries (Direct Comp) # of Shops Avg PSD Sales - LE Product Range

AL RIFAI 2 Nuts, Coffee, Confectionery & Gourmet Food

ABU AUF House of Nuts 26 Nuts, Coffee, Confectionery & Gourmet Food

Lebanese Roastery 15 Nuts, Coffee & Confectionery

Mowafak Roastery 15 Nuts

Upscale Roasteries - Egypt 15% 15% 15% 15% 15% 15% 10% 100%

Brand Share of Voice

Penetration

Growth Potential

Menu Functionality

Service Quality

Quality Perception

Value Perception Total

Al Rifai

Abu Auf

Lebanese Roastery

Little Caesars

o Al Rifai shows the highest potential for growth, Service Quality, Quality Perception & Value For Money Perception

Avg PSD Sales for Line-store =

Avg PSD Sales for Mall Shop =

Food cost of mixes: 000% (Classic/Assorted Mix) up to 00% (Healthy Trim Mix)

Healthy Trim Mix included 00 ingredients one of which was the Goji Berries

Avg GP% of total product mix = 00% - Weighted Avg GP% of total product mix = 00%

Avg Check = LE 000 (Ramadan Season = LE 000)

Sales Mix of Key Categories:◦ Nuts (Raw & Roasted) = 00%◦ Coffee Sales represented 00%◦ Gourmet Food = 00%◦ Chocolate = 00%◦ Tea = 0%◦ Malban & Mulabas = 00%◦ Dried Fruits, Herbs & Spices = 00%

BRAND HISTORY OVERVIEWAL RIFAI EGYPT

Note: The drops displayed were basically due to OOS situations

o Total Sales from (Aug 14th 2014 till August 11th 2015) =

o Sales Mix of Al Rifai Egypt:o Single Nuts = LE 000 = 00%o Nuts Mixes = LE 0000 = 00%o Seeds & Crackers = LE 0000 = 00% (CFC Shop sold 30% of that category higher than CTS Shop)o Malban, Chocolate & Sweets = LE 000 = 00%o Coffee & Cardamom = LE 123,146 = LE 0000 = 00%o Dried Fruits = LE 0000 0000= 00%

o Important to Note:o ….o …o ..o ..

Strengths Weaknesses

Opportunities Threats

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PLANNING HIGHLIGHTSAL RIFAI EGYPT

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Enhancing profitability, raising the GP% from the budgeted 35% to at 50% by the end of the second year; that can be achieved by: Smart and selective Local Sourcing of certain items Increasing staff efficiency & productivity with practical incentive schemes Refining the cost-price figures displaying the actual GP (estimated 11% to be added to the bottom line/GP%)

Franchise agreements can be considered to guarantee: At least 2 new openings a year in strategic areas Strong brand presence in key areas in Cairo & Alex by the second year

Permanently solve the system errors (with the direct involvement of Finance & IT Teams) and train staff on using it

By mid of the second year, all pending logistical issues should be sorted out: Smooth Importation of the food shipments thru the sister company’s license Arranging for the Dry Shipments clearance

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List of areas/streets recommended for a flagship & in-line-stores in Cairo & Alex: …. … ..

Communication Until the number of shops reaches 6-10 shops, ATL communication is recommended; a lot of LSM

functions can be much more effective and efficient Tie-ups proved (when applied on a small scale) to be effective at this phase

Offerings Product-on-product is the tactic always followed in our premium brand case, although was not of a great

appeal to our customers who come to us for our fine quality not the promotion and direct discount Branded give-away premiums can be a great branding and promotion tool in our case, especially that we

can get the HO support in that

Pricing: We have been applying a premum price positioning and we should maintain that, keeping an eye on

competition; 30%-40% over competition’s pricing did not seem to turn off our customers; yet, we should be careful not to go higher unless it is a necessity

Local sourcing can guarantee a good GP%, the matter that should make us price our items comfortably, not fearing to be too expensive

HORECA B2B Approaches: Opportunities are very high; however, we can not cater to that confidently unless we grow in volume so

that have enough stocks to cover our HORECA demands without fearing OOS or prodct waste situations

THANK YOU

PREPARED BY:

MOHAMED A.RASHID IBRAHIM

CELL#: +201004220013 - +491777830870

HTTP://EG.LINKEDIN.COM/PUB/MOHAMED-IBRAHIM/32/104/2B

AUGUST 2015