A concept to moove you Expansion plans for

Switzerland, Germany, Austria
Wolf Wagschal & Serena Shamash

April 2012

Topics

•  About yoomoo •  Frozen yogurt category & trends •  Relevancy to CH, DE, AU •  Financial Projections

yoomoo is the UK’s leading fat-free frozen yogurt brand with £8 in annual sales
•  UK’s leading fat-free frozen yogurt brand •  Annual Sales of ~£8.0M •  Projected to grow to ~£29.0M by 2015 in the UK •  Flagship store in London’s Harrods •  10 other high-profile locations across UK •  Yoomoo international rolled out first franchise store in Athens (2011) •  Rapid international expansion plans in 2012

Ambitions to be the leading ! frozen yogurt brand globally

yoomoo founded by two entrepreneurs with significant industry & business support
The Entrepreneurs Supporters / Team
Daniel Gestetner (Zoggs Myla, The Fit co. etc) www.brandsetc.com •  James Averdeik (Gü chocolate puddings) www.gupuds.com •  R&R Ice Cream Ltd (2nd largest manufacturer in Europe) www.rr-icecream.eu •  Extensive head office support & operations team

yoomoo frozen yogurt is …

•  Naturally healthy and delicious •  No hidden “nasties” •  Premium flavor and quality  
•  FAT FREE

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yoomoo currently has 11 “yogurt bars” across the UK and growing strong

Business model covers four key strategic priorities for rapid growth
Self-owned outlets
•  Multiple formats: •  Mini yogurt bar (2.5m x 2.5m) •  Large yogurt bar (7m x 3m) •  Stand alone shops (30m2 – 100m2)
Outside/seasonal Kiosk operation Outside/seasonal Kiosk operation

Int’l & Nat franchising
•  First franchise location in Athens (2011) •  Full-press on international franchising in India, UAE, Spain, Greece, UK

Supermarket line
•  Joint Venture with R&R Ice Cream Ltd., to launch retail line in ~6,000 supermarkets across UK •  Tesco •  Sainsbury’s •  Waitrose •  Supported by £ 2M advertising budget start April 2012

Outdoor kiosk

Stand alone

Types of YOO MOO units

Stand Alone

Large Kiosk

Mini Kisok

yoomoo brand is relevant and approachable
•  Global clarity and simplicity •  Intelligent personality •  Fun, quirky, engaging •  Personification and elasticity

Meet the famooly …

Topics

•  About yoomoo •  Frozen yogurt category & trends •  Relevancy to CH, DE, AU •  Financial Projections

Frozen yogurt: A growing global trend

•  US frozen yogurt market is worth over $2 billion and growing rapidly •  Frozen Yogurt is one of the fastest growing food service franchising categories Internationally •  UK market alone estimated to reach £150M in 2013 •  And starting to emerge in other parts of Europe as well as the rest of the world !

Frozen yogurt perfectly aligns with macro consumer trends
Health Quest for longevity, staying in-shape & feeling healthy Personification Indulgence Create your own Yoo Moo experience as you wish Taking time to live a little & reward oneself Convenience Desire to simplify life

Frozen yogurt is “guilt-free indulgence”

Topics

•  About yoomoo •  Frozen yogurt category & trends •  Relevancy to CH, DE, AU •  Financial Projections

CH, DE & AU are large & growing icecream markets – sizeable upside if frozen yogurt can steal share
Retail: 2012E
Ice-cream category market value ($M)! 2003-2012E ! % Growth! Yogurt sub-category! Market value ($M)! 2003-2012E ! % Growth! !

USA 10,360!

UK
40%

CH 318!
11%

D 4,575!

AU 294!

1,633!
10%

+16%!

+22%!

+10%!

+40%!

+11%!

875!

15!

4!

30!

5!

+1!

+24%!

+18%!

+16%!

+15%*!

benchmark
Source: Data Monitor, 2012 / Note: Data reflective of RETAIL (supermarket, convenient store, etc.) purchases 2012E = Estimate for 2012

High & growing per capita spend on icecream is a good proxy for consumer openness for new frozen desserts
!
Retail per capita spend ($) on ice-cream category (2003 & 2012E)
+41%!

2003! 2012E!

+6%! +7%! +19%! +11%!

56! 39! 42! 40! 32! 36!

31!

33! 22!

27!

USA! benchmark
Source: Data Monitor, 2012 2012E = Estimate for 2012

UK!

CH!

DE!

AU!

Switzerland is a promising launch market for frozen yogurt
!•  Seen by a “best” test market by international brands (Nestle, Coke)
—  “If it works in Switzerland, it can easily work in other markets” —  Particular business environment that raises entry barriers for foreign brands lacking local experience •  Relative resilience to global economic downturns •  High disposable incomes •  Very International and frequent travellers •  First-mover advantage (almost no frozen yogurt players) •  Leading European consumers of ice cream and chilled desserts •  Extremely health conscious & love all form of sports

Topics

•  About yoomoo •  Frozen yogurt category & trends •  Relevancy to CH, DE, AU •  Franchising yoomoo in CH, DE, AU

A passionate team with hospitality expertise, business & local knowledge
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Wolf Wagschal
Investor / Managing Partner Over 25 years international gastronomy & hospitality management experience Created over 15 restaurant concepts Education: Harvard, Cornell, & European University, EHL www.wwwh.ch •  •  •  •  •  WW Worldwide Hospitality Five AG Kramer Gastronomy Candrian Catering AG Autogrill AG

Prashant Jhawar
Investor / Partner 30 business management leadership experiences www.ushamartin.com www.prashantijhawar.com Chairman of Usha Martin Group of Companies

Thomas Winkler
Investor / Partner 25 years advertising & sales experience www.suisse-food.ch Currently the owner of 6 Burger Kings in CH

Serena Shamash
Senior Advisor 12 years mgmt consulting, marketing & concept development Education: MBA IMD www.world-on-small-plates.com •  Eat Me AG •  Boston Consulting Group •  General Mills Inc.

Oliver Spring
Strategy Partner Development Entrepreneur marketing & management www.fine-box.ch www.senses-group.ch •  SENSES Catering & Events •  FINE BOX Gourmet llc •  BLUMENHALLE •  Blumenhalle Eventhall

A frozen yogurt business model has high profit and rapid scale-up potential
!
Simplicity
•  Simple technological & operational processes •  Easy to operate, manage & maintain •  Limited need for skilled labor

Low costs
•  Lower capital requirements •  Low retail space requirements ! less rent •  Self-service model ! less labor costs •  Low cost-of-goods-sold (COGS) •  Long product shelf life (12mo)

Flexibility
•  Diverse retail formats for easy integration in any given space •  Pop-up kiosks to capitalize on seasonal opportunities •  Frozen yogurt easy to pair with smoothies, juices, etc. to increase revenues

High perceived value
•  High-willingness to pay based on core consumer need (healthy, tasty, etc.) •  Still appeals to masses •  Growing category with significant publicity

Launch strategy: Big Summer Bang
First Mover
Capitalize on first-mover advantage •  Launch multiple locations…fast, including one flagship location •  Re-define frozen yogurt •  Pre-empt competition by building significant entrybarriers

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Messaged Sampling
Sample at key venues •  Tastes as good as ice cream and has at least 50% of the calories •  Summer health events •  Major summer festivals -  Montreux Jazz Festival -  Zurich Street Parade -  Open Airs Cinema & Events

PR
Create consumer hype •  Position as “hottest” trend •  Leverage PR to gain extensive coverage •  Leverage Swiss Cows…

Anticipate launching 99 outlets in 5 years in all larger cities across Switzerland, Germany & Austria
!
•  7 Stand Alone •  9 Large Kiosks •  10 Mini Kiosks •  21 Stand Alone •  21 Large Kiosks •  22 Mini Kiosks •  2 Stand Alone •  2 Large Kiosks •  5 Mini Kiosks •  Zurich •  Geneva •  Basel •  Berlin •  Munich •  Frankfurt •  Vienna •  Salzburg •  Bregenz •  Bern •  Lausanne •  Lucerne •  Dusseldorf •  Hamburg •  Bonn • Graz • Innsbruck • Linz

Potential to generate ~ CHF 50M annually in revenues by year 5
!

Switzerland
•  26 outlets •  Year-5 projected annual… •  net revenues: CHF 17.5M •  net income: CHF 2.1M •  Est. on-going net income: 11%

DE (revenues) ~CHF 31M 64 locations AU (revenues) ~ CHF 3M 9 locations

Aggressive scale-up model is feasible given ambitious team & low business model complexity
Note: Financial projections for Germany & Austria currently mirroring Swiss environment; DE = Germany, AU = Austria

Risks & Mitigation Plans
RISKS!
Frozen yogurt does not catch on

!

MITIGATION!
•  Concept extremely successful globally •  Initial marketing focus on “category education” •  If underperformance, team to find ways to reformulate the concept/ product/communication efficiently •  Relatively low barrier to entry and high profitability will attract competitors (International brands & local players) •  Leverage first-mover advantage -- Create a big splash to establish the yoomoo brand •  Already considered in business plans •  Nonetheless, exploring product extensions (e.g. smoothies, fresh juices, coffees, etc.) to balance sales in cold months •  Pursue in-store locations that are less vulnerable to weather (e.g. in shopping centers, cinemas, etc.) •  Leverage all possible networks across channels to access prime real estate •  Make a big push for the summer festivals to raise interest in yoomoo

Increase in competition

Product vulnerable to seasons / weather

Difficulty in finding prime locations

Cooperations Partner
• Shop in Shop concept planned between FineBox & Yoo Moo • 1st Joint Shop scheduled to open on MAY 3nd 2012 on the Pelikanstrasse 19, 8001 Zürich • www.finebox.ch • www.senses-catering.ch

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www.yoomoo.com!