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COMPANY PROFILE

1. COMPANY PROFILE. COMPANY PROFILE. Dear Sirs, We are proud to introduce you the leader of Ukrainian alcohol beverages, one of leading international company – Image Holding The Holding consists of Production facilities :

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COMPANY PROFILE

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  1. 1 COMPANY PROFILE

  2. COMPANY PROFILE Dear Sirs, We are proud to introduce you the leader of Ukrainian alcohol beverages, one of leading international company – Image Holding The Holding consists of Production facilities: 1. Khortytsa Distillery - one of the largest alcoholic beverages producers in the world, located in the south-eastern part of Ukraine; 2. Feodosia Winery and Cognac House Crimean WineHouse – wine distillery and wine-growing, situated in Crimea, in the heart of ancient city of Feodosia. Distribution company: Trading House “Megapolis”- is a exclusive distributor of Khortytsa Distillery and Crimean WineHouseproduction The company representative offices located in: 1. Ukraine: wide-spread distribution networkwith 41 branch offices. 2. Russia: Moscow, Postov-na-Donu, Kazan, Nizhny Novgorod, others – 64 regions;

  3. 2 COMPANY HISTORY

  4. COMPANY HISTORY Construction of the new vodka distillery Khortytsastarted in2002 году and lasted only one year. It is the only enterprise in Ukraine built from scratch on a carefully selected spot as a part of an unparalleled project (9,2 hectares). In December 2003 the first batch of products came off the conveyor belt.Today, Khortytsa distillery is the most expansive and up-to-date distillery In Ukraine. All its manufacturing facilities and components were purchased under the motto: «Best equipment for the best enterprise!». That is why the Khortytsa distillery uses equipment from the world leaders in the manufacture of hardware for the food industry (REHAU engineeringsystems, GRUNDFOSpumps, TOYOTAloaders etc.)Highly reliable Italian bottling lines ITAL PROJECTensures high accuracy of each operation from thorough dosing and corking to quality labeling and date marking. The alcohol cellar and bottling equipment is made of THYSSENKRUPP stainless steel. Highly-qualified personnel is employed to operate five lines with producing capacity of 600,000 dal monthly. The Company’s products are the absolute leader in sales on home market. The Company’s objective is to gain absolute leadership throughout the world.

  5. Khortytsa DISTILLERY OUTPUT, IN DALS 3

  6. Khortytsa DISTILLERY OUTPUT, IN DALS

  7. 4 BUSINESS AND CORPORATE ETHICS

  8. BUSINESS AND CORPORATE ETHICS Company philosophy: our present and future is based on acknowledgement and vigorous development of the ABSOLUTE QUALITY concept.

  9. 5 MISSION

  10. MISSION To be theundisputable leader in the field of absolute quality beverages production and distribution, securing long-term and profitable business growth due to the effective management and high professionalism of personal

  11. COMPANY PERSONNEL 6

  12. COMPANY PERSONNEL Over 4,500 employees work for the companyat the present.This is a concerted and team-oriented personnel. They are very dedicated to work and mostly concentrated on absolute quality of the end product. The softness of taste, fineness of aroma and the unrepeatable uniqueness of the drink, its true quality, depend not only on the fine size of ingredients, temperatures of infusion and distillery, and time intervals of mixing but also on the state of the heart and spirit put into the beverage production.

  13. 7 UKRAINE: LEADING BRANDS MARKET SHARES

  14. UKRAINE: VODKA MARKET DYNAMICS * * figures by MEMRB-IRI company

  15. UKRAINE: LEADING BRANDSMARKET SHARES (in liters)* * figures by MEMRB-IRI company

  16. UKRAINE: LEADING BRANDSMARKET SHARES * * figures by MEMRB-IRI company

  17. UKRAINE: LEADING BRANDSMARKET SHARES (in UAH) * * figures by MEMRB-IRI company

  18. UKRAINE: LEADING BRANDSMARKET SHARES * * figures by MEMRB-IRI company

  19. 8 EXPORT

  20. EXPORT Owing to absolute quality, the Khortytsa brand products are appreciated by consumers and are being sold in 27countries of the world. Including Russia, Israel, Germany, Latvia, Kazakhstan, Poland, Armenia and other countries. By the end of the year number of countries will reach 70.

  21. 9 OUR PARTNERS

  22. OUR PARTNERS Russia Pyatyorochka, Krestovsky, Alye Parusa, Avoska, Present Prod, Micridan, Mir VT,7 Continent, Ashan, Prodmix, Eridan, Ireland, Germes Inter, Yuzhny Dvor, Hyam-Nyam, Stanem Druz’yamy, Billa, 12 months, Cotex-Torg, Ramstore, ABK, Grossmart, Ostrov, TsenrtServis, Dixica, FortunaGarant. Ukraine Furshet, Veluka Kyshenya, Begemot, Silpo, Metro, Eco Market, Billa, Fozzy, Target,Class, Pyatyorochka, Rost, Akvamarin, Bolshaya Lozhka, Kelikh, ATB, Reinford, Kit, Econom +, Kramnytsya +, Amstore, Obzhora, Favorit, Krona, Soyuz-Leader, Grand, Pacco, Absolut, Oscar.

  23. 10 DISTRIBUTION IN UKRAINE AND RUSSIA

  24. EXCLUSIVE DISTRIBUTION CAMPAIGN Megapolis Trading House is the exclusive distributor for Khortytsa Distillery and Crimean Wine House. Megapolis Trading House was founded in 1995 and is the largest distributor of alcoholic beverages in Ukraine. The Company arranges sales operating a network of 41 sales branches and 81 trading departments, which covers all regional centers of Ukraine. Megapolis Trading House performs supplies to more than 35 thousand sales outlets. The Company is notable for the European labor management system. Our principles are customer-oriented policy, permanent staying in profit area, leadership on each level, self-training, in-processness. Therefore Megapolis Trading House is an undisputed leader! Starting from 2004 the Russian representative office of the company operates in Moscow. Nowadays distribution net consists of 13 branches and more than 50 trading departments operating in 64 regions of Russian Federation.

  25. DISTRIBUTION IN UKRAINE Zaporozhye, Nikopol, Melitopol, Berdyansk, Lugansk, Donetsk, Gorlovka, Mariupol Simferopol, Sevastopol, Yalta, Feodosia, Dnepropetrovsk, Krivoy Rog, Kherson, Kirovograd, Nikolaev, Odessa, Ismail, Vinnitsa, Zhitomir, Cherkassy, Uman, Sumy, Poltava, Kremechug, Kharkov, Kiev, Pereyaslav-Khmelnitsky, Belaya Tserkov, Rovno, Chernigov, Lutsk, Khmelnitsky, Ternopol, Lvov, Ivano-Frankovsk, Chernovtsy, Nezhin, Uzhgorod, Mukachevo, Konotop.

  26. DISTRIBUTION IN RUSSIA Moscow, Saint-Petersburg, Kazan, Yekaterinburg, NizhnyNovgorod, Rostov-na-Donu, Novosibirsk, Chelyabinsk, Volgograd, Omsk, Tomsk, Vladivostok, Tyumen, Magadan, Arkhangelsk, Murmansk, etc.– 64 regions altogether

  27. BREAKDOWN OF DISTRIBUTION FIGURES BY PERIODS, 2005 11

  28. BREAKDOWN OF DISTRIBUTION FIGURES BY PERIODS, 2005

  29. SALES PUTLETS DYNAMICS

  30. 12 AWARDS

  31. AWARDS PRODEXPO-2004: ABSOLUTE QUALITY GOLD WINNERSTheInternational Exhibition of Foodstuff and Food Raw MaterialsProdExpo-2004 (February 9 to13, Moscow) awardedthe vodka Khortytsa Silver Freshnessand the recipe of Pepper and Honey Spicy nastoyka with a title of Best Product 2004 and gold medals. Best Brand of Ukraine All vodkas produced by Khortytsa distillery, which were exhibited at the alcoholic beverages tasting contest Best Brand of Ukraine held on the 16thNational Fair Exhibition were rewarded with gold medals with the right to bear a medal image on labels.BEST QUALITY VODKA IN UKRAINE HAS BEEN DEFINED The competent InternationalTaste Panelacting within the frameworks of AlcoSoftAnnual Exhibition awarded Khortytsa distillery beverages with twelve gold medals. It is worth noting that gold medals rewarded to all the Khortytsa distillery beverages presented at the contest is a unique achievement of a Ukrainian producer.

  32. AWARDS Khortytsa distillery: a sparkling debut in the North capital of RussiaKhortytsa distillery presented a special vodka Khortytsa Platinum and bitter nastoykaKhortytsa Pepper and Honey Spicy at the 11th International Exhibition Petersburg Wine and Vokdka Fair2004 heldat the LenExpo exhibition center. The debut of the leading Ukrainian distillery Khortytsa was a success: Khortytsa Platinum was awarded with a gold medal and Khortytsa Pepper and Honey Spicy -with a silver medal. New Khortytsa distillery winnings10 product names presented by the Khortytsa distillery at the 11th International Specialized Exhibition Fair WINE-VODKA-TOBACCO 2004 held in Sochiwere awarded with 10 medals in all nominations. This is an ABSOLUTE ACHIEVEMENT at such large-scale exhibition! Khortytsa gold parade On February15, 2005 the XII Tasting Contest held within the PRODEXPO International Exhibition announced its winners. With a high status of a largest East-European contest the competent panel highly rated the Khortytsa distillery products. In addition to diplomas of honour, which the leader of market is accustomed to, the products of the super-modern distillery have won 6 medals for exclusive recipes and absolute quality.

  33. AWARDS Best vokda in Ukraine has been defined Striking results have been shown byKhortytsa distilleryat the ALCO+SOFT’ 2005 Tenth Anniversary Exhibition! The company products were awarded with 24 medals for quality and the top contest prize Grand Prix. It was first time in the exhibition history when such a number of awards was won by the same producer. LenExpo 2005At the 12th International Wine and Beverages Exhibition LenExpo 2005, Saint-Petersburg, each and every product presented thereat was awarded with a medal in various nominations! Awards granted at the international specialized exhibition in Russia implicitly prove the absolute quality and excellent tasting parameters peculiar to the Khortytsa distillery products.

  34. 13 HISTORY OF FOUNDATION Crimean Wine House

  35. HISTORY OF FOUNDATION The Company has quite recently launched Wine branch, however, due to its professionalism and purposefulness, it is rapidly and successfully expanding now. Feodosia Winery is unique for it keeps hereditary secrets of wine growing since it was founded in 1824 by Count Alexander Baude and follows old traditions of wine making so far. At the beginning of ХХ century a hereditary nobleman was forced to escape from Bolshevik repressions and for that reason Count Baude immigrated accompanied by his family to France. Only in 1991 upon results of bidding at the international auction, the Baude Mansion and old-established winery were restored to the descendants of initial owners. The winery was given a new name of Crimean Wine House. 12 years later, in 2003 Crimean Wine House was acquired by Image Holding Company. The Company entered into the contract by virtue of which certain grape varieties are directly delivered from Bordeaux Province France.

  36. ИСТОРИЯ СОЗДАНИЯ At the same time, the Crimean nature, where the Crimean Wine House land is spread, is as specially created for wine growing and wine making prosperity. Contrasting relief is where vineyards are planted on downhills, in valleys and plains close to the seaside of the Black Sea. Plenty of sunshine ensures bunches of crapes grow ripe till November gaining the best sweetness. Variety of soils provides that wine from every certain area is notable for individual impressive nature. Vineyards, crape storehouses and winery together are located on a wide spread territory of Crimean Wine House (about 4,5 thousand ha), that brought into the world a wide selection of dry, fortified and sweet wine, and as well quite rare natural semi-sweet wines.

  37. 14 PRODUCTION

  38. PRODUCTION Crimean Wine House uses experience of high-skilled wine makers and ultramodern equipment for wine production. Work continues here during a whole year, including daily attendance at the vineyards and application of skills and experience for growing a high-quality product. At present the modern Italian bottling lines made by ITAL PROJECT, a world known company, are mounted in Crimean Wine House sites. Production process is completely automated and requires minimum manual interference. Every line is provided with warranty, ensures a high protection and safety level. The equipment conforms to all applicable technical, ecological and sanitary standards. For bottling Crimean Wine House mostly uses 0,75 l bottles of European standardmanufactured in compliance to advanced international technologies. The winery production capacity is valued in six digits, in particular, at the same time 11 thous. tons of wine raw material can be stored and 10,3 thous. tons of crape can be processed at Crimean Wine House. Every selection of wine manufactured here is special and unique. Each is notable for original history, individual flavor and is exclusive without any doubts.

  39. Wide lands of Crimean Wine House amaze by rich grape varieties, including different table varieties (45%). However it is not a limit. In the near future it is planned further expansion of the vineyards. A gross crape yield of 14 thousand tons shall be deemed an immediate objective of an extensive development It will result to the development of the wine branch and facilitate increasing of the company’s profit.

  40. Крымский Винный Дом STRATEGIC SALES PLAN 2006 Ukraine: 11 100 000 bot. Export: 1 670 000 bot. 2007 Ukraine: 19 050 000 bot. Export: 7 550 000 bot.

  41. HOLDING DEVELOPMENT STRATEGY

  42. DEVELOPMENT STRATEGY2006 July 2006 – launch of alcoholic beverage bottling using leased production facilities in the Russian Federation; October 2006 – doubling of Khortytsa Distillery production output; November 2006 – increasing production output of Crimean Wine House Affiliated Company; December 2006 – export supplies to 70 countries all over the world

  43. DEVELOPMENT STRATEGY FOR2007 – 2008 2007 – distribution network is accomplished throughout the countries, which are the major customers, such as Russia, Kazakhstan and Poland. Formation of distribution network in the USA 2007 – launch of a new distillery in the Russian Federation 2007 – construction of glass-works plant 2007 – construction of cognac house in the Crimea 2008 – launch of pure-alcohol plant 2008 – construction of printing plant 2008 – construction of juice plant

  44. The company aims at absolute leadership in sales IN THE WHOLE WORLD!

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