DFI Retail Group Holdings (D01) Investor update summary

Transaction and operational control

• 50% Maxim’s stake to be exchanged for full ownership of Coffee Concepts, the Starbucks licensed business, plus US$340 million cash; Hongkong Caterers will become Maxim’s sole shareholder.

• Coffee Concepts operates more than 1,100 coffeehouses across seven Asian markets; Andrew Wong will lead the Starbucks and IKEA licensed businesses post-transaction.

• Completion targeted by end-Q1 2027, subject to customary closing conditions; day-to-day operations will remain unchanged.

• The transaction is the final step toward full operating control and independently-led growth for the Starbucks and restaurant businesses.

• Hongkong Caterers, the Starbucks business and Jardine Matheson will continue collaboration in procurement, supply chain, property and digital initiatives.

Growth and operating plans

• Starbucks held ~16% of a $3.8 billion market growing at 5%; Southeast Asia, particularly Thailand and Vietnam, offers expansion potential, with further opportunity in Hong Kong and Singapore.

• Target at least 250 net new coffeehouses by 2029, lifting the footprint above 1,350, with expansion focused on Thailand, Vietnam and underserved locations.

• Target 6%–7% annual revenue growth; the plan assumes 5% from store expansion and 1%–2% like-for-like growth, mainly in higher-growth Southeast Asian markets.

• Plans include all-day food and beverage innovation, localized assortments, loyalty-led personalization and cross-brand partnerships to increase customer occasions and sales.

• Synergy opportunities span procurement, property, supply chain, CapEx, food assortment and loyalty; five of seven Starbucks markets already have other format presence.

Financial impact

• Consolidation is expected to add $600 million–$650 million revenue in 2027, assuming end-Q1 completion, and approximately $900 million on a full-year basis in 2028.

• Starbucks generated US$746 million revenue in 2025, with 3.5% 2023–2025 CAGR and 7% underlying operating margin; identified synergies could lift margin to 8%–9%.

• Estimated operating synergies are US$10 million in the first full year after consolidation, with further benefits expected to ramp up.

• Initial-year profit dilution is estimated at $35 million–$40 million as Maxim’s equity-accounted profit is lost; free cash flow is expected to be accretive within 12 months.

• Reaffirmed 2028 underlying PATMI guidance of $310 million–$350 million and overall operating margin target of 5%–7%.