1. The Chocolate Factorys Fairy01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch

2. 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 3. The Opportunity 1. Consumer Food Trends3. Distribution TrendsSWISS HANDMADE CHOCOLATE CHOCOLAT ARTISANAL SUISSE4. Switzerlands Chocolate Reputation Market Situation2. Chocolate Benefits01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 4. Premium Foods01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 5. Premium Foods Luxurious individual desire of self-esteem, reward, sociability, acceptance, respect, prestige Authentic - made by the Specialist Natural ingredients, biological, no preservatives Locally made / known origin / homemade Handmade Selected Ingredients01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 6. Premium products: a social phenomenonSource: Harvard Business Review, 2004 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 7. USA: +75% in 6 years, +25% 2008 est. Lifes little luxury Mio US$ 19%16201800+25%160013001400+75%1200 100081%Specialty Stores740800Retail600 400 200 0 199720032008 est.Souce: marketresearch.com, washington dc IRItracked search 1998 / 2004 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 8. Chocolate: upgrade potential premium01/17/14-onfidential documenthandmadeRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 9. Premium Chocolate: Packaging01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 10. Premium Chocolate: autenthic / raw01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 11. March Franais de la chocolaterie artisanale +10 % 2002 vs. 2002 Euros+10% 426387500 400 300 200 100(source INSEE/EAE 2002)0200101/17/14-onfidential document2002Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 12. Emotional ProductEssencesCosmtiqueDgustations01/17/14-onfidential documentGastronomie Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24AccessoiresMode info@thechocolatefactory.ch 13. A new image based on functional benefits Antyoxydants Flavonoides Phnol (=vin rouge)Anti- Aging Free RadicalsCocoa Butter Magnesium Phosphor (+70% cacao)System cardio-vasculaireThobromine CafineAphrodysiac StimulansPhnyltylamine (PEA) Substances Cannabinoides01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24Anti- Depressive Anti - Mal damour Well Being info@thechocolatefactory.ch 14. Distribution Trends: Specialty Stores the category killers Reaction of manufacturers against distribution power Competence Risk reductionVertical RevolutionIndividual choice, assortments Purchasing experience01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 15. Chocolate Specialty StoresLeonidas, Belgium (1910) 1700 Boutiques; B, F, 40 pays.Godiva, Belgium (1926); 300 Boutiques; 2750 POS; B, F, worldwide.The Rocky Mountain Chocolate Factory (1981); 269 Boutiques; USA.Jeff de Bruges, Belgium (1986); 215 Boutiques; B, F, international. 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 16. Chocolate Specialty Stores Ghirardelli, USA (1852); 12 Boutiques + 60 (Lindt) USA, Aus.De Neuville, France (1986); 130 Boutiques, F.Daskalides; Belgium/USALa Maison du Chocolat, France (1986); 9 Boutiques; F, GB, USA, Jap.Teuscher, CH (1944) 17 Boutiques, internat.Rococo, GB (1983); 2 Boutiques, GB.01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24Marcolini, Belgium, (1990); 11 Boutiques; B, F, Jap.Cacao Sampaka Spain (1998); 4 Boutiques; ESP.info@thechocolatefactory.ch 17. Swiss Chocolate01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 18. Mass Market Standardtablettes 45%vol./33%val.pralins 14%vol./27%val.divers 41%vol./40%val. * Source: Nielsen AS 0301/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 19. Concentration on 3 major players Autres (Favarger, Villars, Alprose, Maestrani); 15%Camille Bloch; 3%Migros; 35%Kraft Foods; 5%Coop; 6%Ferrero; 8%Nestl; 10%Masterfoods; 8% Lindt&Sprngli; 10%Source: Chocosuisse/PME 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 20. Specialty Stores account just for 10% of the market 13 Prod.600 Confis.44823 Tons1500 Tons762 Mio. Sfr.97,5 Mio. Sfr.97% Vol.3% Vol.90% Val.10% Val. 1.70 Sfr. 7 Sfr.Confiserie Confiserie 3% --10% 3% 10%Grande Grande Distribution Distribution 97% --90% 97% 90%Tot. Market 46323 Tons859 Mio. Sfr. * Source: Nielsen AS 03 **Source: Estimation01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 21. Swiss Confiseries vicious circle Concurrence de la grande distributionProblmes structurelsOrientation court termeEclatement des assortimentsStandardisation5 -10% closings/yearRationalisationPression sur les prixManque de diffrenciationManque dattractivit Approvisionnement standardis01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 22. Lack of chocolatey purchasing experiencePain01/17/14-onfidential documentSnacksConfiserieRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24Chocolaterieinfo@thechocolatefactory.ch 23. Pralins are the Swiss Confiseries standard01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 24. Lack of competitive edge ConfiseurAssortiment des Produits au ChocolatSpeckPralinsTruffesFormes fantaisie*AeschbachPralinsTruffesFormes fantaisie*GalerinaPralinsTruffesFormes fantaisie*MeierPralinsTruffesFormes fantaisie*SpeckPralinsTruffesFormes fantaisie*SprngliPralinsTruffesFormes fantaisie*StricklerPralinsTruffesFormes fantaisie*Treichler/GilgenPralinsTruffesFormes fantaisie*SpeckPralinsTruffesFormes fantaisie** Kirsch- & Champagnerstngeli, Gressli, Speckli, Steinli, Trpfli, Florentiner, Schokokeks, Saisonale Produkte.. 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 25. The Swiss market is composed by 2 segments Locals Highest pro capita consumption of chocolate 9.4 kg /person/yeartarget marketTourism + 30 Mio Visits / Year (65 Mio overnights) + 240 Mio Sfr. spent on Sweet Goods01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 26. Swiss Chocolate Specialty Store benchmarks Success Benchmark 1 LausanneLausanneSignal d BougySuccess Benchmark 2 Signal de BougyGeneveAutres Chocolatiers, Genve Rohr, Auer, Stettler, Bonbonnire, Zeller, Du Rhne..01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 27. Premium Chocolate sole growth factor Nouveaux produits - prix +84%"out-of-pocket" sfr. / 100gr 3.503.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00+ 84% 1.901.30Frey Tourist2.402.101.40Frey GiandorCailler Lait / Lindt CrestaMarch valeur +1.5%Frey Supreme Lindt Excellence Lindt Excellence Caramel (150g)'000 Sfr.735'756+ 1.5 %749'000750'000 700'000 650'000 600'00001/17/14-onfidential document2002Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 242003 info@thechocolatefactory.ch 28. The Opportunity 1. Consumer Food Trends3. Distribution TrendsSWISS HANDMADE CHOCOLATE CHOCOLAT ARTISANAL SUISSE= a big opportunity! 4. Switzerlands Chocolate Reputation Market Situation2. Chocolate Benefits01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 29. Management Franois Hutter Project Initiator Food Marketing at Novartis / Wander AG, Bern and Mvenpick International Ice Cream & Coffee Fine Foods Health Foods Nutrition & Sant Market Manager Ovomaltine, Caotina, Duo, Mvenpick Ice Cream & Coffee international Marketing MBA University of St. Gallen01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 30. CONCEPT01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 31. A brand of Swiss handcraft chocolate specialty stores01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 32. The Chocolate Factory conceptStores with a Soul Innovative Product Mix Exciting Customer Experience Complementary Sales Channels Network Model Fast Roll Out via Franchising 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 33. Network of handcraft chocolate specialty stores Schaffhausen BadenBaselWinterthurAarau SolothurnWilArbon St.GallenOltenZrichLa Chaux dF Biel Zug ArosaBernNeuchtelThun FribourgLuzernChurGstaadDavosInterlaken LausanneGruyre GrindelwaldSt.MoritzVevey-Montreux Crans-Montana GeneveLocarno/ MaggioreSion-Sierre Verbier ZermattCA 700+ 01/17/14-onfidential documentLuganoCA 450+ Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 34. Stores with a soul Superior Quality (homemade chocolate) Brand ImageROICompany Dynamics01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 35. Network ModelFRANCHISE MANAGEMENT COMPANYMarketing Sales Mgmt Devpment KAMLOCAL OPERATION UNITScoachingVENTES VENTESrecipes, ingredients R&D Studios packaged goods01/17/14-onfidential documentVENTESRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24VENTES LABORA VENTES TOIRE LABORA TOIRE LABORA TOIRE LABORA TOIRE LABORA TOIREinfo@thechocolatefactory.ch 36. Core Product: broken chocolateplaques paissesplaques fines/feuillantineCore Product the widest broken chocolate assortment01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 37. 87% added value of broken chocolate SFR/100g. Consumer Sales Price at Specialty StoreHandcraft Chocolate Manufacturers Production Process8.50*87%(avg. Sales Price Mass Markets) Sales Price to Confiseurs and Chocolatiers Rough Chocolate Production starting from Cocoa Beans(1.70*) 1.12*13%0.00* source: nielsen as03 / store checks / barry callebaut price lists 2004 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 38. Lean manufacturing LABORATOIREActivits: Prparation des ingrdients Temprage Mixage Refroidissement Stockage Matriel: Tempreuse 20kg / Fondeuse Table Travail Machine laver Frigidaire Four Petit matriel01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 39. Packaged Products: central manufacturingBonbons (Truffes/ Pralins)Pearls/ Breadspread Drages/Caviar Other innovative products 01/17/14-onfidential documentPackagedPowdersHot DrinkChocolate Ice CreamTHE CHOCOLATE CENTER OF EXCELLENCE Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 40. Broken Chocolate / rationalesmost authentic chocolate format best nutritional features the Swiss format le got non la forme01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 41. Broken Chocolate: rationalesTablettesPralins TruffesFormes FantaisieConfiserieNiche NicheSatur SaturSatur SaturGrande DistributionSatur SaturSatur SaturSatur Satur01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 42. Creativity, sensorial trends, chocolate blends Well-being Teas: green teas, white teas, bergamot, earl grey, aloe vera..Fruits: red fruits, peach, white peach, citrus, exotic fruitsLocal Fruits: chestnut in Ticino, pear or grape in Valais, mirtilles, cherry in Basel, Apple, blackberry, strawberry..DARK / MILK / WHITE /Flower/Fruit : for refreshing combinations Other green citrus, gingerFlower Tastes: white flowers, autumn flowers, exotic flowers, jasmin, mimosaSweet / Salt combinations..Exotic Tastes Tastes from the Orient: pepper (yellow pepper, pink pepper)Escapism Spices & Herbs safran, rosmarinIndulgence Double Pleasure : chocolate with chocolate notes, nougat, stracciatella, chocolate and coffee..Dessert notes: lemon pie, red fruits crumbles, apple cinnamon, tiramisu, amarettoGrand Classics Le Chocolat Noir01/17/14-onfidential documentLe Chocolat BlancRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24Le Chocolat au LaitLe Chocolat au Lait Noisettesinfo@thechocolatefactory.ch 43. Product Mix productweightlocally manufactured broken chocolate (72 % gross margin)70%30%avg. 74.7% gross margincentral manufacturing of packaged products (75 80% gross margin)01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 44. Powerful brand experience mixProduct Presentation Boutique Style Shopping Experience The chocolate expert The local handcraft Unique PositioningInnovative Spirit Network Thinking Militantism Strong Corporate CultureProximity Creativity Loyalty Programs Efficient Marketing Programs LOCAL OPERATION UNITSVENTE S LABOR ATOIRE01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24SALES MARKETING / PR IN-STORE SALESBUSINESS Corporate Horeca Food Service CONSUMER Events Walk- In Home Deliv. P Eventsinfo@thechocolatefactory.ch 45. Complementary Sales Channels Complementary Sales Channels :Home Delivery Corporate SalesHomemade ChocolateGastronomy High End DistributionInternet01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 46. Switzerland locations Strong Agglomerations & Tourism Centers Schaffhausen WinterthurBadenBaselAarau WilSolothurnSt.GallenZurichArbonOlten Biel ArosaZugNeuchtelBernLuzernThunFribourgChur InterlakenGruyreLausanne VeveyMontreuxGrindelwald Crans-MontanaSt.Moritz/ Pontresina Saas FeeSion-SierreGeneveVerbierDavosLocarno/ Maggiore Zermatt LuganoAgglomrations touristiquesAgglomrations, 000 habitants 300-1000100-29901/17/14-onfidential document50-99+200 A & +400 T+50 A & +200 TRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24Destinations Touristiques, nuites hotelires 000 + 1000500-999350-499info@thechocolatefactory.ch 47. Franchising The Chocolate Factorys ideal expansion model entrepreneurial spirit speed + protectionFRANCHISINGlower capital needs01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 48. Outlet's Break Even 50 40 Operating Cash Flow30 20 10 0 -10123456789101112-20 -30 -40 -50 Months (opening month 07) 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 49. Real Case - 1 Outlet Payback - Development of Cumulated Cash FlowsCum. Free Cash Flow ('000 Sfr)1'000 750 500 250 0 14710 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55-250 -500 MonthsInitial Investment Outlay: Sfr. 210000 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 50. ECONOMICS01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 51. '000 sfrProj. Sales per town (incl. local & visitors) 2'000 1'800 1'600 1'400 1'200 1'000 800 600 400 200 0 zh1zh2gebsbelsstmtzzttlugaludavverbcramonaverage sales level : 900000 sfr.800 700'000 sfr600 500 400 300 200 100 0 gruy01/17/14-onfidential documentsgwthinterlbabruoltzofRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24frvevmonzglocainfo@thechocolatefactory.chbiel 52. Basic P&L P&L Standard Swiss Bakery/Pastry Benchmark ChocolatierSfr%SfrNetSales(POS)580'000100.0%1'350'000NetSales(other)Net Sales270'000The Chocolate Factory+2.7% Sfr % gross margin 80.0% 747'000 80.0% thanks to 20.0% 149'000 calibrated product 20.0% mix 100.0% 896'000 100.0% %580'000100.0%1'620'000183'28031.6%453'60028.0%226'68825.3%396'72068.4%1'166'40072.0%669'31274.7%Personnel205'90035.5%680'40042.0%304'64034.0%Rent33'6405.8%100'000-8% 71'680 6.2%8.0%Misc.58'00010.0%162'000297'54051.3%942'40099'18017.1%224'00026'1004.5%72'9004.5%44'8005.0%73'08012.6%151'1009.3%176'51219.7%5'8001.0%16'2001.0%-0.0%67'28011.6%134'9008.3%176'51219.7%16'82025.0%33'72525.0%44'12825.0%50'4608.7%101'1756.2%132'38414.8%CoGS Gross MarginTot. Overhead EBITDA Depreciation EBIT Interests EBT Taxes Net Income OperatingCashFlow76'56001/17/14-onfidential document 13.2%174'075Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24personnel costs 10.0% 71'680 thanks to 58.2% local 448'000 lean manufacturing 13.8% 221'312 11%177'1848.0% 50.0% 24.7%-2% misc. costs thanks to headquarters support 20%info@thechocolatefactory.ch 53. Models Assumptions: Sales & Franchising Revenues CASE SCENARIOS Sales Vol. / Val. Tons / Outlet 000 Sfr. / OutletSales Increase p.a.WORST2.4 200REAL10.8 895 5%Sales Increase vs. PY in %BEST18.0 149 5Franchising Model Investments Royalty Fee Fixed Entry Fee (000 Sfr)01/17/14-onfidential documentOnbehalfof Franchisee 5%ofNetSales Rue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 54. Initial investment outlay per outletPositionSfrCommentsRentCession 80'000 Laboratory Upto10tonsormore.For 36 monthsinfo@thechocolatefactory.ch 68. Initial Timing / Milestones Activity / Months1234567891011121314151617Company Foundation Outlet Nr. 1 Search, Identification5Fitting1Boutique Concept Development3Personnel Search Chocolatier Store Personnel3 3Product Development Broken Chocolate3Other Products3+Operations Opening/Sales12Development Decision Outlet Nr. 2 Search / Contract4Fitting01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch18 69. 01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch 70. Confiseur Chocolatier, Lausanne01/17/14-onfidential documentRue Plantamour 15, 1201 Geneva Phone: +41 22 732 36 24info@thechocolatefactory.ch