2013 Corporate Presentation

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The Largest Restaurant Chain on the Balkans

Happy Bar & Grill found in 1994 First restaurant opened in Varna, Bulgaria First to apply US standards and methods of work in Bulgaria

Happy Bar & Grill 2013 | All rights reserved

The Largest Restaurant Chain on the Balkans

Currently operating 25 Happy Bar & Grill restaurants - 23 restaurants in Bulgaria - 2 restaurants in Barcelona, Spain
Market leader in home delivery One of the strongest restaurant brands on the market Brand portfolio of the company includes 5 more restaurant and catering brands

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Brand Portfolio
- Daily, full-service, casual restaurants - Busy city locations, main roads and interstates - Unique and recognized identity - International cuisine - Between 100 and 180 seats - 23 restaurants in Bulgaria - 2 restaurants in Spain Daily, full-service, casual restaurants Busy city locations Unique and recognized identity Japanese cuisine Between 100 and 180 seats 3 restaurants

www.happy.bg Corporate Web Site www.dostavka.happy.bg Home Delivery Web Site

www.happysushi.bg Corporate Web Site www.sushi.happy.bg Home Delivery Web Site

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Brand Portfolio
High-end fish restaurants Premium locations Unique and recognized identity Between 140 and 260 seats 2 restaurants

www.captaincook.bg Corporate Web Site

Caf-Club Premium locations Unique and recognized identity Between 100 and 250 seats 1 caf-club

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Brand Portfolio
Quick-service restaurants Busy city locations Between 50 and 400 seats 1 restaurant

- Personnel Cafeterias - Factories, schools, state and municipal organizations - 25 cafeterias

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The Flagship Restaurant Brand

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History
1994: First restaurant opened in Varna, Bulgaria 1995: Second restaurant opened in Varna, Bulgaria, the beginning of the restaurant chain 1999: First four drive-by restaurants on major intercity roads and interstates opened, 8 restaurants already in the portfolio 2000: First two restaurants opened in Sofia, Bulgaria, 11 restaurants already in the portfolio 2003: First restaurant opened in Barcelona, Spain, 15 restaurants already in the portfolio

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History
2009: Added a SUSHI menu to the regular menu of the restaurant, 21 restaurants already in the portfolio 2010: Started the Happy Delivery home and office delivery service, 23 restaurants already in the portfolio 2010: Awarded one of the most prestigious international restaurant awards, the International Hotel & Restaurant Associations (IH & RA) Crystal Award 2014: Happy Bar & Grill will celebrate 20 years anniversary

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Restaurant Locations

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Business Structure
Own Food Supply Factory

Own Logistics

Own Restaurants and Franchisees

Dine In 79%

Take Away 1%

Home & Office Delivery 20%

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Sales per year

(in millions of EUR)

AAGR (last 10 years): 18.54% AAGR (last 5 years): 5.25%

+51.6%
-5.7% +14% +6.9% +4.7%

+6.3%

+39% +34% +24.7% +9.9%

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Happy Positioning
Healthy and low calorie dishes

High quality food

Accessible and central locations Unique and recognizable internal settings Fast and excellent service Affordable prices

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Employee Focus

We are proud of our employees

Trained to give maximum customer satisfaction 2500 employees nationwide 85% of the management started at service positions Happy personal development program

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Constant Product Development And Innovation

Regular seasonal addition of new dishes
Experimenting with new cuisines to the market and ways of preparing food Regular renovation of the outsides and insides of the restaurants Experimenting with new designs and decoration concepts

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Official Partners

BULGARIAN ASSOCIATION FOR NUTRITION AND DIETETICS

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Granted Awards
Most highly recognized granted awards: 5 consecutive years granted the Customers Favorite Brand award in the Restaurants category by BGBusiness magazine 2012: Golden Effie Award in the Services category 2010: IH & RA Crystal Award

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Granted Awards
2009: Best Restaurant Chain by the Bulgarian Tourism and Recreation Association 2009: Greatest Contribution to the Development of the Restaurant Industry in Bulgaria by BHRA

2007: Restaurant Chain of the Year by BHRA

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Granted Awards
2007: Restaurant Chain of the Year by the Balkan Alliance of Hotel Association 2006: International Award for Tourist, Hotel and Catering Industry

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Future Development
Local market: - own restaurants and franchisees
International growth: - first stage: franchisees in neighbor markets - second stage: franchisees in Central and Eastern European markets

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Happy Bar & Grill at Our Customers Doorstep

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Happy Delivery Overview

Extremely rapid growth and successful development Fully covering the Bulgarian Happy Bar & Grill market for less than 3 years Number of customers increase from 2011 to 2012 with 97.4% Revenue increase from 2011 to 2012 with 133.9%

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Happy Delivery Overview

Two Forbes E-Volution Awards 2013 Bulgaria: - First in Customer Experience - First in Innovations

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Happy Delivery Overview

External check and inspection on the quality of the service and fulfillment of standards requirements:

2011: 98.28% 2012: 98.86% 2013: 99.71%

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Happy Delivery Sale Channels

Customers

Phone Orders 50%

Online Orders 40%

Mobile Orders 10%

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Happy Delivery Sale Channels: Phone Orders

Professionally equipped call center Experienced and trained to adhere to strict standards of service call center operators High-class professional delivery call center phone system

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Happy Delivery Sale Channels: Online Orders

Boutique web page Tested and modified to boost sales Multiple functionalities and unique delivery widgets

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Happy Delivery Sale Channels: Mobile Orders

Web page responsive design

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Happy Delivery Differentiators

Customer-Centric Marketing:
- Loyalty program - Personal offers

- QSVC* service quality control

via personal phone customer interviews - State of the art detailed customer sales based analysis
*Quality, Service, Value, Convenience standard for service quality control, first initialized by McDonalds as a part of its global development strategy.

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Social Networks: Facebook

Driving customer traffic to delivery website

Aiding in customers acquisition Activating current customers

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E-mail Marketing

Activating current customers

Building an interactive relationship with the customers

Driving customer traffic to delivery website

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SMS Marketing

Activating current customers Initiating fast customer response and reaction

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THANK YOU!

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