BELUGA GROUP Ma May 2020 PRESENTATION BELUGA GROUP at a glance - PowerPoint PPT Presentation

BELUGA GROUP Ma May 2020 PRESENTATION

BELUGA GROUP at a glance Diversified business #1 Spirits producer in Russia with portfolio of own and imported brands #4 In vodka globally One of the largest Growing scale of Importer in Russia export Focus on super- Portfolio of premium premium Beluga wines and spirits Vertically integrated operations BELUGA GROUP at a glance Own retail chain and wine production Constant product #1 Distribution platform development and brand innovation More than 2,5k sales people and 160k accounts across Russia 2

1 Over the recent years Beluga successfully turned from vodka producer onto global diversified and vertically integrated business 2010 Today Business line Products Business line Products Diversified spirits and wine Vodka Vodka 1 1 producer focused on both Brandy Brandy domestic and global markets Other spirits Other spirits Presence in every segment Production Production Wine of the spirits and wine market (domestic sales) (domestic sales) Fully vertically integrated 2 business with own Vodka producer with focus on Vodka the local market specialized retail chain Export Player in all key spirits #1 segments #2 3 Player in vodka market in Russia Spirits Vodka & LVI 2 market share 14 % share 1 Wine Import Flavored liquors market share 16 % 10% Vodka market share share 1 share 1 4 Winelab retail 17 % chain Brandy market share share 1 Specialized retail 3 Sources: Company data Notes: 1) in Russia, 1Q2020 2) Flavored liquors

Key investment highlights 1 Large and resilient spirits and wine market 2 Diversified business with vertically integrated operations 3 The leading spirits producer in Russia 4 Increasing footprint on the fast growing wine market Launch of own specialized retail chain to further increase level of 5 controlled sales Strong financial performance and new initiatives aimed at further 6 efficiency improvement High standards of corporate governance coupled with best 7 management team in the industry with solid track record 4

1 Large and resilient spirits and wine market Vodka is the most popular spirit across the world with Russia Despite economic slowdown, vodka consumption in Russia remains stable alongside USA being the key markets while market continue its growth in value terms Russian spirits and wine market dynamics 1 Global spirits consumption Global sales of spirits, Top-5 countries by vodka ‘000 9L cases consumption, mln 9L cases 2019 51% 11% 92 Whisky 440 Russia 13% 39% 65 2012 Vodka 426 USA 30 Ukraine Brandy 190 235 mln 9L cases 21 Rum 146 Poland in 2019 11 Gin 72 Kazakhstan Wine 49% Vodka & LVI 38% Other spirits Trend on wine consumption: share of wine in total spirits and wine market increased from 39% in 2012 to over 50% in 2019 5 Sources: Rosstat (2019), IWSR (2018) Notes: 1) Volume terms

2 Diversified business with high share of non-vodka products Key direction for business diversification BELUGA GROUP alcohol revenue evolution 2011 2019 Categories extension  Acquisition of vineyards and winery in Russia, focus on premium Russian wines 39%  Expansion of imported brands portfolio Vodka (local sales) 80% In-house production Brand innovation  Focus on new product development (launches of Green 8% Baboon gin, Vogue sparkling wine, Fox & Dogs whisky, etc.) 4% Vodka (export)  Successful launch of new vodka brands (e.g. Arhangelskaya and Mednaya Loshadka): Arhangelskaya gained 5% market share in the category on its third year 1 26% Brandy, flavored 12% Distribution platform focused on direct sales liquors & other  High and growing level of the controlled sales 2 (85% of total sales in 2019)  Expansion of own specialized retail chain Winelab Import 27% Wine & spirits 4% Growing share of export operations  Export to more than 95 countries across the world  8% of alcohol revenue in 2019 (vs. 4% in 2011) Total alcohol sales RUB 21.2 bn RUB 38.9 bn  Natural FX hedge against exchange rate swings Product portfolio has been significantly diversified: shares of export & import operations as well as brown spirits and wine categories continue its growth 6 Sources: Company data, AC Nielsen Notes: 1) AC Nielsen, 2018 2) Controlled sales include direct sales and sales through dedicated sales force 3) xx% - share of a given category in alcohol segment revenue

2 Diversified product portfolio: own brands Other spirits Vodka Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream 7 Sources: Company data Notes: Price range for every segment could differ based on product category

2 Diversified product portfolio: imported brands Other spirits Whisky Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream 8 Sources: Company data Notes: Price range for every segment could differ based on product category. Whiskys Cigars Barrel, Fox&Dogs , Trouble Maker, Eagle’s Rock are bottled on Georgiyevskiy Plant

2 Vertically integrated operations 604 stores 1 Premium spirits&wine stores with focus on development in Moscow, St. Petersburg and Far East Retail 117 imported brands in product portfolio 12 Federal logistic centers 50 suppliers from 18 countries spread across Russia Import 2,500 sales people 160K active accounts Distribution Export to more than 95 countries 6 spirits production facilities Export across Russia 1 vineyard Production 231 ha of fertile vineyards and 780 ha of land ready Own resource base for grape planting 9 Sources: Rosstat, Nielsen, ISWR Notes: 1) As of Dec 31, 2019

3 The leading spirits company in Russia Unmatched leadership in home Strong brand country and further advance worldwide positions Belenkaya #1 Vodka in the country #1 #2 #1 Russia Russia Beluga Distilled spirits producer Independent importer In super-premium segment Belenkaya #1 In middle segment #1 #1 #1 Russia Russia Myagkov Tzar #1 Flavored spirits producer 1 Brandy producer In low-premium segment In mainstream segment Globally Globally Zolotoy Reserv #4 #9 #3 Dr. August #1 Vodka producer Spirits companies Brandy in the country In flavored liquors Market share in 1Q2020 by volume Top-5 flavored liquors Top-5 vodka & LVI Top-5 brandy producers producers producers 17,4% Beluga Group Beluga Group 13,7% Beluga Group 16,0% Roust Allians Sordis 9,8% 7,6% 11,5% Tatspirtprom 9,6% Alvisa OPVZ 7,5% 11,3% 8,5% ASG 6,7% Stellar 10,4% Tatspirtprom 7,8% Global Spirits KIN Roust 6,3% 5,7% 10 Sources: Rosstat 1Q2020; AC Nielsen (2018); ISWR (2018) Notes: 1) Including bitters, herbal liquors, flavored liquors

3 Beluga – flagship brand supplied all around the world… In Top-5 super-premium vodka brands globally #1 Super-premium vodka brand in Russia Market shares of super-premium vodka brands in globally 2 54,1% #2 Super-premium vodka brand in travel retail globally #3 Super-premium vodka brand globally 14,1% 8,2% 7,8% 2,0% #1 Grey Goose Belvedere Beluga Ciroc Chopin Beluga Gold Line: the #1 ultra-premium vodka in the World Super-premium vodka in Baltic states, CIS, Bulgaria, Slovakia, #1 Vietnam; #2 in Germany, Israel, Czech Republic, Serbia, Over the last years Beluga has experienced double- Croatia, Lebanon, India digit growth, outpacing competitors Top 5 players volume growth globally 2, (’15 - ’18A , %) Undisputed leader on the Russian market Market shares of top-5 super-premium vodka brands in Russia 1 17,0% 74,0% 1,0% 0,6% 11,0% 7,0% 3,0% 1,0% (2,4%) (3,4%) Beluga Grey Goose Kremlin Mamont Kauffman 1 2 4 3 5 11 Sources: Rosstat, ISWR Notes: 1) IWSR (2018) 2) ISWR traditional vodka (2018)

4 Increasing footprint on the fast-growing wine market Russia’s wine market Sales of imported wine brands: significant growth over last few years  Sales of imported wine by BELUGA Share of imported Exceeds vodka market by 33% in volume GROUP in volume terms (‘000 9L cases) terms wine in total 59%  imported alcohol 896 Current wine consumption per capita sales 1 788 Import significantly lags behind developed countries 580 78 Imported wine  brands Share of Russian wine reached 52% of total wine sales as of 2019 263 550 Imported wine SKUs 136 2015 2016 2017 2018 2019 Golubitskoe estate Production of proprietary brands: promising line of business Own premium winery Total production of wine in BELUGA GROUP is well Russia, volume terms (mln 9L positioned to gain substantial cases) 2 Own production market share on the wine +15% market Long-term 76 market 66 Recent acquisition of Golubitskoe share target Estate will strengthen its positions 20% among local premium wine makers Vast distribution platform ensures spread of proprietary brands through major federal chains and 2015 2018 own retail stores (Winelab) 12 Sources: Euromonitor, public sources, Company data Notes: 1) Volume terms 2) Rosstat