Starbucks : 2020 Proxy Presentation

Starbucks Coffee | Shareholder Engagement

Strategic Priorities |Executive Compensation |Corporate Governance |Global Social Impact

February 4, 2020

Starbucks Hacienda Alsacia - Costa Rica Visitor Center		©2020 Starbucks Corporation.

	FORWARD-LOOKING STATEMENTS
	Certain statements contained herein are "forward-looking statements" within the meaning
	of the applicable securities laws and regulations, including financial targets. Generally,
	these statements can be identified by the use of words such as "anticipate," "believe,"
	"continue," "could," "estimate," "expect," "forecast," "intend," "may," "plan," "potential,"
	"project," "should," "will," "would," and similar expressions intended to identify forward-
	looking statements, although not all forward-looking statements contain these identifying
	words. These forward-looking statements are based on currently available operating,
	financial and competitive information and actual future results may differ materially
	depending on a variety of factors and uncertainties including, but not limited to:
	fluctuations in U.S. and international economies and currencies; our ability to preserve,
	grow and leverage our brands; the ability of our business partners and third-party
	providers to fulfill their responsibilities and commitments; potential negative effects of
	incidents involving food or beverage-borne illnesses, tampering, adulteration,
	contamination or mislabeling; potential negative effects of material breaches of our
	information technology systems to the extent we experience a material breach; material
	failures of our information technology systems; costs associated with, and the successful
	execution of the company's initiatives and plans, including the integration of the East
	China business and the successful expansion of our Global Coffee Alliance with Nestlé;
	our ability to obtain financing on acceptable terms; the acceptance of the company's
	products by our customers and evolving consumer preferences and tastes; changes in
	the availability and cost of labor; the impact of competition; inherent risks of conducting a
	global business; the prices and availability of coffee, dairy and other raw materials; the
	effect of legal proceedings; the effects of the coronavirus outbreak; the effects of
	changes in tax laws and other risks detailed in the company filings with the Securities
	and Exchange Commission, including the "Risk Factors" sections of our Annual Report
	on Form 10-K for the fiscal year ended September 29, 2019 and our Quarterly Report on
	Form 10-Q for the fiscal quarter ended December 29, 2019. The company assumes no
	obligation to update any of these forward-looking statements.
	Non-GAAP Financial Measures
	Certain non‐GAAP measures included in this presentation were not reconciled to the
	comparable GAAP financial measures because the GAAP measures are not accessible
	on a forward‐looking basis. The company is unable to reconcile these forward-looking
	non-GAAP financial measures to the most directly comparable GAAP measures without
	unreasonable efforts because the company is currently unable to predict with a
	reasonable degree of certainty the type and extent of certain items that would be
	expected to impact GAAP measures for these periods but would not impact the non-
	GAAP measures. Such items may include acquisitions, divestitures, restructuring and
	other items. The unavailable information could have a significant impact on the	2
Rwanda Origin Experience	company's GAAP financial results.

Table of Contents

"Growth at Scale" Agenda and Long-Term Growth Algorithm

4

Executive Compensation

7

Corporate Governance

11

Global Social Impact

16

Board Recommendations

19

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"Growth at Scale" Agenda and Long-Term Growth Algorithm

4

"Growth at Scale" - With Focus and Discipline

STREAMLINE

"GROWTH AT SCALE"

ACCELERATE	EXPAND GLOBAL	INCREASE
SHAREHOLDER
U.S. AND CHINA	REACH
RETURNS

BUILD THE BRAND

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Long-Term Growth Algorithm

REVENUE	OPERATING	EPS1
GROWTH	INCOME1	GROWTH
	GROWTH

7% - 9%	8% - 10%	AT LEAST
	________	10%

DOUBLE-DIGIT EPS1GROWTH AT SCALE

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(1) Non-GAAP measure. Refer to page 2 of this presentation for our disclosure on the non-GAAP measures included in this presentation.

Executive Compensation

7

Fiscal 2019 Pay-for-Performance

Starbucks executive compensation program reflects strong pay-for-performance alignment tied

to overall Company results, with the vast majority of pay structured as variable and "at-risk."

	president & ceo	All other named executive officers (NEOs)(1)
			Variable/At-Risk				Variable/At-Risk
93%		89%
Base Salary
Fixed
Base Salary
7%
			Fixed
					11%
Annual Incentive
Bonus Target
13%
					Annual Incentive
					Bonus Target
			Long-term	13%			Long-term
			Incentive Target				Incentive Target
80%		76%

(1) Excludes Scott Maw who retired on November 30, 2018

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Fiscal 2019 Pay-for-Performance

Both our short-term incentive and our long-term incentive plans were redesigned in fiscal 2019 to foster long-term shareholder value creation and pay-for-performance alignment.

Fiscal 2019 Annual Incentive Bonus Plan

			Adjusted Net	+	Adjusted Operating	+		Individual
			Revenue	Income
Base ($)	X	Target Annual Incentive Opportunity (%) X	Performance Factor
(weighted 40%)		(weighted 60%)
				weighted 70%				weighted 30%

• Individual Performance Factor ("IPF") added to the Annual Incentive Bonus Plan, accounting for 30% of the target value
• IPF is assessed againstpre-established strategic, operational and leadership goals as well as retrospective review

		Fiscal 2019 Leadership Stock Plan
Annual EPS Performance Averaged Over 3	X	3-yr rTSR vs S&P 500	+	Time-Based RSUs
(upward & downward modifier)
	60% Performance RSUs			40% Time-Based RSUs

• Instead of stock options,time-based Restricted Stock Units ("RSUs") now account for 40% of annual awards, to better balance ownership and retention
• Performance-basedRSUs continue to account for the remaining 60% of awards but are now measured on a three-year performance period with a three- year relative total shareholder return ("rTSR") modifier in order to further align compensation with shareholder interests

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Fiscal 2019 Financial Results Under Incentive Plans(1)

In-line with our emphasis on pay-for-performance against rigorous internal goals, compensation awarded to our NEOs for fiscal 2019 reflected the following financial results:

Annual Incentive Bonus Plan ($ in millions)

Adjusted Net	Adjusted
Revenue	Operating
	Income

$26,596.3$4,478.8

150%	120%
payout percentage	payout percentage

$24,875.7 - $26,970.5	$4,087.2 - $4,790.3
Perf. Target Range	Perf. Target Range

Certified Payout: 132%

November 2017 Performance RSUs

Adjusted	Adjusted
EPS	ROIC

$2.43423.5%

0%	Modifier
(N/A given 0%
payout percentage
EPS payout)

$2.461 - $2.760	23.8% - 25.0%
Perf. Target Range	Perf. Target Range

Certified Payout: 0%

1. These financial performance metrics were used in determining (i) payouts of annual incentive bonuses, and (ii) the number of Performance RSUs earned with respect to awards granted in FY18. Note that these financial measures differ from the financial measures we otherwise disclose, as these measures are adjusted to exclude the impact of certainnon-routine and other items in accordance with the terms of our annual incentive bonuses 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 2020 Annual Meeting of Shareholders.

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Corporate Governance

11

Fiscal 2019 Corporate Governance Highlights

Independent Director	Full Board
Nominees	Meetings

11 of 13

7

Mandatory	Board
Retirement Age	Evaluations

75Annually

Frequency of

Board Elections

Annual

Director

Equity Grants

Yes

Huehuetenango, Guatemala	12

Independent, Diverse and Experienced Board of Directors

Our board brings deep experience, expertise and insights to the important issues facing Starbucks.

INDEPENDENCE

DIRECTOR TENURE

Richard E.	Rosalind G.	Andrew	Mary N.	Isabel	Mellody	Kevin R.
Allison, Jr. +	Brewer *	Campion +	Dillon	Ge Mahe +	Hobson	Johnson *

(Independent Vice Chair)

AGE DISTRIBUTION

DIVERSITY

Jørgen Vig	Satya	Joshua	Clara	Javier G.	Myron E.
Knudstorp	Nadella	Cooper Ramo	Shih	Teruel	Ullman, III
					(Independent Chair)

Board Refreshment:In September 2019, we added three new board members with experience and expertise across global technology, retail and customer experience at scale.

• Denotes new Starbucks independent director, who joined in September 2019.*(Green) denotes current Starbucks partner (employee).

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Board Matrix

Starbucks has best-in-class directors, with a variety of complementary skills necessary to guide and oversee the Company's strategy.

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Governance and Our Board

Board Oversight of Strategy

Our board is integral to determining the Company's overall long-term strategy, including our "Growth at Scale" agenda.

Beyond the Boardroom

Extensive orientation program: meeting key leaders of the Company, visiting our stores to engage with store partners and customers first-hand and immersing in our Starbucks culture.

Evaluation of Board and Board CommitteesIn fiscal 2019, the board established an independent external review process to be conducted every three years, in addition to continuing annual board and committee evaluations.

Key Market

Opportunities

Long-term	Consumer
Growth
Trends
Algorithm

Oversees

Starbucks

Long-range

Risk	Strategy	Competitive
Assessment		Developments

Social Impact	Sustainability
Agenda	Initiatives

15

Global Social Impact

16

Huehuetenango, Guatemala

For more information regarding our Global Social Impact efforts, please visit: https://www.starbucks.com/responsibility

Global Social Impact Highlights

Promote Sustainable Coffee

Coffee Sourcing Commitment

• Making coffee the world's first sustainably sourced agricultural product.

Starbucks Global Farmer Fund

• We have invested nearly $50 million in the Starbucks Global Farmer Fund to support farmers; this comes in addition to relief funds, such as the $20 million we provided in 2019 to many of our smallholder coffee farmers in Latin America who experienced the effects of low global coffee prices.

Open-Source Agronomy

• Train 200,000 coffee farmers by 2020.

Planting Coffee Trees

• Provide 100 milliondisease-resistant coffee trees to farmers by 2025.

Create Opportunities

Achieved Goal of Hiring 25,000 Veterans and Military Spouses by 2025

• To date, we have hired over 26,000 veterans and military spouses, and our goal from now on is to hire 5,000 each year.

Employ 10,000 Refugees Globally by 2022

• To date, we have hired 1,600 refugees.

Hire 100,000 Opportunity Youth by 2020

• To date, we have hired over 96,000 Opportunity Youth.

Starbucks College Achievement Plan: Graduate 25,000 Partners by 2025

• Starbucks College Achievement Plan is helping partners complete their education through Arizona State University ("ASU") online. Since launching in 2014, more than 3,000 partners have graduated to date, with over 13,000 partners participating in ASU's online degree programs.

Strengthen Communities

Rescue 100% of Food Available to

Donate in U.S. Company-operated

Stores by 2020

• Currently, around 60% of our U.S.company-owned stores participate in Starbucks FoodShare program and more than 20 million meals have been donated.

Inclusion and Pay Equity

• In fiscal 2018, we achieved 100% pay equity for women and men and people of all races performing similar work in the U.S. and in fiscal 2019, we achieved 100% gender pay equity in China.

Diverse Supply Chain

• In fiscal 2019, we spent $703 million with diverse suppliers, which is an increase of $104 million over the previous year.

Local and Community-Centric

Economic Development

• Globally we have invested in more than a dozen Community Stores, over 65 Military

Family Stores and opened four Signing

Stores for people who are deaf or hard of

hearing.	17

Global Social Impact: Starbucks Sustainability Commitments

Our aspiration to become resource positivemeans we give more than we take: storing more carbon than we emit, providing more clean, freshwater than we use and eliminating waste.

	STARBUCKS 2030 PRELIMINARY TARGETS	OUR 2018 FOOTPRINT
		_______
	______
			These targets and strategies are informed by a comprehensive environmental
			baseline report conducted in partnership with World Wildlife Fundand Quantis,
			which found that, as of 2018, our global operations and supply chain resulted in:
50% Reduction	50% Reduction	50% Reduction	15.6 million	1 billion	868 kilotons
In carbon emissions	Through conservation or replenishment of water	In waste sent to	tons of greenhouse gases	cubic meters of water	of waste generated
	used for direct operations and coffee production	landfills
	emitted	used

Expanding plant-	Shifting away from	Implementing regenerative	Better ways to	Eco-friendly stores,
based menu options	single-use to	agriculture, reforestation,	manage our	including operations,
	reusable packaging	forest conservation and	waste	manufacturing and
		water replenishment in our		delivery
		supply chain

LEARN MORE

______

Visit stories.starbucks.com/stories/sustainabilityor text GREENto 73356*to receive updates about Starbucks commitment to environmental sustainability.

*Message and data rates may apply. Text STOP to 73356 to opt out, text HELP for more information. By opting in, you agree to receive recurring messages from Starbucks, which may be sent through an automated dialing system. Consent is not required to purchase. See our Privacy Statement and Text

Message Terms: https://sbux.co/terms. ©2020 Starbucks Corporation.	18

Board Recommendations

19

Leadership Experience, Chicago, IL

2020 Proxy Voting Recommendations

Proposal

Management Proposals

1. Election of 13 directors

2. Advisory resolution to approve our executive officer compensation

3. Ratification of selection of Deloitte & Touche LLP as our independent registered public accounting firm for fiscal 2020

Shareholder Proposal

4. EEO Policy Risk Report

Recommendation

For each director nominee

For

For

Against

20

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Starbucks College Achievement Plan

OUR

MISSION

OUR

VALUES

To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time.

With our partners, our coffee and our customers at our core, we live these values:

Creating a culture of warmth and belonging, where everyone is welcome.

Acting with courage, challenging the status quo and finding new ways to grow our company and each other.

Being present, connecting with transparency, dignity and respect.

Delivering our very best in all we do, holding ourselves accountable for results.

We are performance driven, through the lens of humanity.

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