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Orin Smith

COMPANY VIEW
A statement by Howard Schultz, Chairman and Chief Global Strategist of Starbucks
Corporation and Orin C. Smith, President and Chief Executive Officer of Starbucks
Corporation, follows. This has been taken from the company's 2003 Annual Report.
From the early days of Starbucks history, we have eagerly embraced possibilities and
let our imagination propel us to create new experiences instead of accepting the
status quo. That spirit, combined with our belief that a company can indeed achieve
the delicate balance between social and fiscal responsibility, and, frankly, our genuine
love for a great cup of coffee, has guided Starbucks on an amazing journey from a
single store in Seattle to a global presence with more than 7,000 locations worldwide.
That journey, which has yielded some wonderful rewards, is still in its early stages.
In a challenging economic environment where enduring success is extremely difficult
to achieve, Starbucks continues to thrive. The overwhelming global acceptance of the
Starbucks brand has resulted in the strongest performance in our history. Fiscal 2003
was marked by consolidated net revenues of $4.1 billion (up 24 percent from $3.3
billion in fiscal 2002), annual comparable store sales growth of 8 percent, and
increased market capitalization from approximately $300 million in 1992 to
approximately $12 billion in 2003. In addition, we opened 1,201 retail store locations
worldwide, including the 1,000th store in our Asia Pacific region. We also celebrated
our 12th consecutive year of positive comparable store sales growth of 5 percent or
greater and at fiscal year-end, we had 141 consecutive months of positive
comparable store sales growth all impressive achievements.
These accomplishments are rooted in some of our basic beliefs treat everyone with
respect and dignity, tirelessly source and roast the finest arabica coffee beans, and
contribute positively to our communities and our environment. From our...