Appendix 1 - Financial Analysis of expansion plan of 2000 new stores in next 5 years (Figures in '000)

Year 1997 1998New stores opened 200 300Cash investment per 350 345Total Cash investme 70000 103500Sales/investment (Ex 2.4 2.3

New sales from coff 168000 238050

0 50000

EBIT margin (Exhibit 18% 17.80%EBIT Generated thro 30240 51272.9PAT (Using 1996 tax 18597.6 31532.8335

Cash flow requireme 51402.4 71967.1665Cumulative debt fin 51402.4 123369.5665

Increase in EPS (U 0.21 0.35

New sales due to introduction of food products(1000 existing stores. In 1998 Testing in 200 stores. In 1999, nation-wide launch)

Appendix 1 - Financial Analysis of expansion plan of 2000 new stores in next 5 years (Figures in '000)

1999 2000 2001350 500 650 2000340 330 320 Assumption that cash investment goes down as realty prices will go down

119000 165000 208000 Inventory costs related to food products is negligible due to perishable nature of items2.3 2.3 2.3

273700 379500 478400

462500 705000 900000

Assumption of 250,000 of sales in the years 1998 and 1999 and 300,000 thereafter.17.60% 17.40% 17.20%

129571.2 188703 237084.879686.288 116052.345 145807.152

39313.712 48947.655 62192.848162683.2785 211630.9335 273823.7815

0.89 1.29 1.63

Assumption that cash investment goes down as realty prices will go downInventory costs related to food products is negligible due to perishable nature of items

Assumption of 250,000 of sales in the years 1998 and 1999 and 300,000 thereafter.

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