SBUX Starbucks Corporation

Executive Compensation

Pay-for-Performance Starbucks executive compensation program reflects a strong pay-for-performance alignment tied to overall company and business-unit performance, with the vast majority of pay variable and “at-risk.” Long-Term Incentive Plan Annual Incentive Plan Performance RSUs (60%) Number of shares earned dependent upon achievement of two-year EPS goal ROIC – potential downward modifier Stock Options (40%) Realizable value dependent on future share price appreciation Executive Management Bonus Plan (EMBP) Cash based on objective performance goals: Adjusted net revenue – weighted at 50% Adjusted operating income – weighted at 50% The following generally describes the performance measures applicable to our annual and long-term incentives:

Fiscal 2017 Financial Results Under Incentive Plans (1) These financial performance metrics were used in determining (i) payouts under our EMBP, and (ii) the number of Performance RSUs earned with respect to awards granted in FY16. Note that these financial measures may differ from the comparable GAAP and Non-GAAP measures that we report, as these measures are adjusted to exclude the impact of certain non-routine and other items in accordance with the terms of our EMBP and our 2005 Long-Term Equity Incentive Plan. Further information regarding these measures and related adjustments is included in the Compensation Discussion & Analysis section of our proxy statement for our 2018 Annual Meeting of Shareholders. Fiscal 2017 Consolidated Financial Performance (in millions except EPS)(1) Adjusted Net Revenue Adjusted EPS Adjusted Operating Income ROIC In line with our emphasis on pay-for-performance and our performance relative to our peers, compensation awarded to our Named Executive Officers (NEOs) for Fiscal 2017 reflected the following financial results: $22,364.6 - $23,748.0 Perf. Target Range $4,400.5 - $5,057.0 Perf. Target Range 23.7% - 24.9% Perf. Target Range $2.022 - $2.298 Perf. Target Range $22,611 $4,394 25.2% $2.066

Executive Compensation Tied to Company Performance (1) Excluding our executive chairman, Howard Schultz, whose compensation is 100% variable. 79% 17% 4% president & ceo All Other NEOs(1) 90% Variable 83% Variable 86% 4% 10%

Corporate Governance

Fiscal 2017 Corporate Governance Highlights Independent Director Nominees 9 of 12 Mandatory Retirement Age 75 Full Board Meetings 8 Board Evaluations Annually Frequency of Board Elections Annual Director Equity Grants Yes

Diverse and Experienced Board of Directors(1) (1) Excludes William W. Bradley and Robert M. Gates, who will retire immediately prior to the 2018 Annual Meeting of Shareholders. Director names in black font are independent. Satya Nadella Joshua Cooper Ramo Clara Shih Javier G. Teruel Myron E. Ullman, III Craig E. Weatherup Howard Schultz Kevin R. Johnson Rosalind G. Brewer Mary N. Dillon Mellody Hobson Jørgen Vig Knudstorp

Outreach Efforts Global Social Impact

What is the Role and Responsibility of a For-Profit Public Company? Be Globally Responsible Create Opportunities Strengthen Communities 100% Ethically Sourced Coffee As of FY16, 99% of all coffee purchased is ethically sourced. Build and operate 10,000 stores globally by 2025 using green building standards Over 1,400 LEED® certified stores across 20 markets. Invest in 100% renewable energy to power operations globally by 2020 We have purchased Renewable Energy Credits (RECs) to cover 100% of our electricity usage in global company-operated stores, and in April 2017 we announced our investment in a solar farm which delivers enough clean energy to power 600+ Starbucks stores in the Southern & Mid-Atlantic United States. Double the recycled content, recyclability & reusability of our cup by 2022 Our cups currently contain 10% post-consumer fiber (PCF), with plans to move to 20% PCF underway. Working with an industry coalition, we are advocating to expand access for customers to be able to recycle our cups in more communities. Embrace and employ 100,000 Opportunity Youth by 2020 In 2015 we set a goal to hire 10,000 Opportunity Youth. To date, we have hired over 40,000 Opportunity Youth and expanded our goal to 100,000 by 2020. Hire and honor 25,000 veterans and military spouses by 2025 In March 2017, we met our initial goal of 10,000 hires and expanded the goal to 25,000. Welcome and employ 10,000 refugees globally by 2022 In January 2017, we announced our commitment to hire 10,000 refugees across the 76 markets we serve. Graduate 25,000 partners by 2025 and increase accessibility and performance More than 1,000 partners have graduated to-date with over 9,000 partners participating in ASU’s online degree programs. Have 100% of our stores worldwide annually participate in community service by 2020 We established our baseline of 25,000 stores and will track progress going forward. Rescue 100% of food available to donate by 2020 in U.S. company-operated stores The FoodShare program was announced in FY16 and began its rollout. To-date, we have launched over 15 markets and donated more than 3 million meals. Diverse Supply Chain Our program focuses on developing business relationships with companies that are at least 51% owned and operated by a minority, woman, LGBTQ, veteran or person with a disability. Today, our annual spend is nearly $700 million and accounts for approximately 10% of our total spend in the U.S. and Canada.

Our Future in Sustainable Coffee Making coffee the world’s first sustainably sourced agricultural product While nearly all of the coffee we purchase is ethically sourced, we can do more. Through the Sustainable Coffee Challenge, we are working together with other industry players, governments and nonprofit organizations to make coffee sustainable for all. Provide 100 million coffee trees to farmers by 2025 In just one year, through the One Tree for Every Bag Commitment we donated 25 million trees. We plan to provide 100 million trees to farmers by 2025. Invest $50 million in farmer loans by 2020 Through these loans, farmers have the ability to support agronomy, restoration and infrastructure improvements. We have $21.3 million currently committed or invested. Train 200,000 coffee farmers by 2020 We currently operate 8 Farmer Support Centers in key coffee producing countries around the world, including a Global Agronomy Center near San Jose, Costa Rica. Our open-source agronomy approach gives farmers in these regions free access to the latest findings of our top agronomists, including new varietals of disease-resistant trees and advanced soil-management techniques.

Board Recommendations

Proxy Voting Recommendations For each director nominee Election of 12 directors Proposal Recommendation For For Against Against Against Report on Sustainable Packaging Diversity Report Advisory resolution to approve our executive compensation Ratification of selection of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal 2018 Proxy Access Bylaw Amendments Management Proposals Shareholder Proposals

Fiscal 2018 Projected Non-GAAP Measures In addition to the GAAP EPS projection in this presentation, the company provides a non-GAAP EPS projection that is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Our non-GAAP EPS projection excludes the below listed items, as they do not contribute to a meaningful evaluation of the company's future operating performance or comparisons to the company's past operating performance. The GAAP measure most directly comparable to non-GAAP EPS projection is projected diluted net earnings per share.

Fiscal 2018 Projected Reconciliation of GAAP to Non-GAAP EPS (1) Represents restructuring related expenses and related inventory write-offs recorded within cost of sales including occupancy costs. (2) Includes transaction costs for the acquisition of our East China joint venture and the divestiture of our Taiwan joint venture; ongoing amortization expense of acquired intangible assets associated with the acquisition of our East China joint venture and Starbucks Japan; and the related post-acquisition integration costs, such as incremental information technology and compensation-related costs. (3) Represents the estimated impact of the U.S. Tax Cuts and Jobs Act, specifically the transition tax on undistributed foreign earnings and re-measurement of deferred taxes. (4) Represents incremental stock-based compensation award for U.S. partners. (5) Income tax effect on non-GAAP adjustments was determined based on the nature of the underlying items and their relevant jurisdictional tax rates. Non-GAAP EPS may have limitations as an analytical tool. This measure should not be considered in isolation or as a substitute for analysis of the company’s results as reported under GAAP. Other companies may calculate this non-GAAP financial measure differently than the company does, limiting the usefulness of this measure for comparative purposes.