Baltika BreweriesH1’06 Results

August 10, 2006

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Contents

• Financial Results• Russian Beer Market and Baltika Breweries• Outlook

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• Excellent profit performance

― Net Sales 531.6 MEUR, +18,2%

– EBITDA 162.4 MEUR, +21.5%

– EBIT 124.8 MEUR, +23.8 %

• Russian market volume growth of 6.1%

• Improvement of volume dynamics in Q2’06

– Total volume of Baltika Breweries 11.2 MHL, +4.0 %

– Export volume of Breweries Group 0.8 MHL, +8%; with license volume in Ukraine volume growth abroad +18%

– Beer Volume of Baltika Breweries in Russia in Q2’06 6.6 MHL, +8.5%

– Market share in Russia in H1’06 23.6%, -0.4%pts.; market share of Breweries Group 35.6%, -0.7%pts

– Market share in Russia in Q2’06 24%, -0.1%п.п.; market share of Breweries Group * 36%, -0.4%п.п.

Overview of Developments in 1H’06

*Baltika, Vena, Pikra, Yarpivo

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Financial Results

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1H’06 Financial Results H1’06 H1’05 ∆

Volume, MHL 11.21 10.78 +4.0%

Net Sales, MEUR 531.6 449.6 +18.2%

EBITDA, MEUR 162.4 133.7 +21.5%

EBITDA Margin, MEUR 30.6% 29.7% +0.9 pts

EBIT, MEUR 124.8 100.8 +23.8%

EBIT Margin, MEUR 23.5% 22.4% +1.1 pts

IFRS

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Baltika Net Sales Development in 1H’06

+4.0%

+5.6%

+18.2%

Volume Average Price

Change of Currency

Rate

Net Sales

Many factors such as volume growth, average prices and change of currency rate contributed to net sales growth

+6.6%+1.2%

Other Sales

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MEUR H1’06 H1’05 Change

Net Sales (without VAT, excise) 531.6 449.6 +18.2%

Cost of sales* 244.7 219.0 +11.7%

Gross profit 286.9 230.6 +24.4%

Logistics expenses* 73.3 66.8 +9.8%

Expenses on production promotion (marketing, sales etc. expenses)* 68.3 46.0 +48.3%

Administrative expenses* 20.3 16.7 +21.95%

EBIT 124.8 100.8 +23.8%

Net profit 94.7 81.4 +16.3%

1H’06 Results Breakdown

* Including depreciation

IFRS

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Baltika Margin Development

22.4% 23.5%

EBIT Margin H1’05 Cost of Sales Logistics and Administrative

Expenses

Expenses on production promotion

EBIT Margin H1’06

+2.7% -2.6%

Favorable market conditions and efforts on reduction of production costs compensated growth of expenses on production promotion

+1.0%

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Russian Beer Market and Baltika Breweries

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Russian Beer Market Development

* Baltika, Vena, Pikra, Yarpivo** Estimate

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6

11

2

9

16

97

-1

8

17

-3

2

7

12

17

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2005 Q1 Q2 Q3 Q4 2006 Q1 Q2

Market Growth Breweries Group Growth

Source: BBH, State Statistics Committee, BreweriesNote: Domestic Volumes

Source: BBH, State Statistics Committee, Breweries

Market share, % H1’05 H1’06

Baltika 24.1 23.6

Group of Breweries* 36.3 35.6

Sun Interbrew 17.4 18,9

Heineken 13.0 13,6

SABMiller * 5.0 5,7

Ochakovo 5.9 5,2

Others 22.4 21,0

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Price Segments Development

Baltika’s share in segment

H1’05 H1’06

Licensed 7.4 7.5

Premium 29.8 29.5

Mainstream 37.2 33.4

Lower Mainstream 29.0 26.9

Discount 14.7 12.2

6,9% 9,1%

21,7% 20,0%

28,5%28,5%

25,0% 23,1%

17,7% 19,0%

0,3%0,3%

Н1'05 Н1'06

Imported

Licensed

Premium

Mainstream

Lower Mainstream

Discount

Share of different price segments of the total beer market volumes

Source: Business Analitika

Group of Breweries Share in segment

H1’05 H1’06

Licensed 19.4 20.8

Premium 42.6 44.4

Mainstream 52.3 49.4

Lower Mainstream 37.1 33.6

Discount 25.4 23.3

Source: Business Analitika

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Performance of Baltika Brands in 1H’06 Baltika and Arsenalnoye are two leading brands in Russia

Volume growth of licensed brands: Tuborg – brand №1 in licensed segment +102.2%, Carlsberg +22.4%, Foster’s +116.9%, Kronenbourg 1664 +61.8%

Volume growth of premium brand Nevskoye +35.6%

High volume growth of a number of regional brands: Don +24.9%, Leningradskoye +47.7%

Growth of market share of Breweries Group in licensed segment +1.4% pts. (up to 20.8%)

Growth of market share of Breweries Group in premium segment +1.8% pts (up to 44.4%)

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Инновации в начале 2006 года Launch of Foster’s in bottle 0.5 l with ring-pool cork

Launch of Kronenbourg 1664 in bottle 0.46 l, brand transfer to twist-off cork

Launch of a new brand in the Baltika portfolio – beer for young adults “Cooler” in a transparent bottle with NLL label and ring-pool cork

Launch of a new licensed brand Tuborg Twist in a transparent bottle with NLL label and ring-pool cork

Launch of Carlsberg in a new bottle format with a bottom opener

Launch of PET 2.5 l for group of brands– Arsenalnoye, Kupecheskoye, DV, Uralsky Master etc. Launch of a new packing mid-cone for can –brands Baltika 3, 7, Tuborg Launch of Baltika 3 in PET 1.0 l

Launch of Yarpivo brand in PET 1.5 l

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Outlook

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Integration of BBH Russian companiesToday:

4 separate enterprises After integration:

Leader of Russian beer market

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The Company plans to complete the merger process by the end of 2006

21 August. Shareholder assemblies

of Vena, Pikra and Yarpivo are asked to approve the merger

with Baltika

Approval by regulatory and

registration authorities. The

Baltika Group of Companies becomes a

single legal entity

Supplemental share issue, buy-back of Baltika

shares, voluntary

purchase by Baltika of shares in Vena, Pikra,

and Yarpivo

Exchange of Vena, Yarpivo

and Pikra shares for newly issued Baltika shares

03 July Baltika becomes majority

shareholder in Vena, Yarpivo

and Pikra

Extraordinary meeting of Baltika

shareholders approves the

merger with Vena, Pikra and Yarpivo

07 March

March-June

July August September – December

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Baltika Group in 2006

• 10 breweries: St.Petersburg (2 breweries), Rostov-on-Don, Tula, Samara Yaroslavl, Voronezh, Chelyabinsk Krasnoyarsk, Khabarovsk

• Production Capacity: 40 MHL/year • 4 malt-houses: St.Petersburg, Tula, Chelyabinsk, Yaroslavl

• About 11 000 employees• Market share 36%

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Portfolio of United Brands in 2006

Licensed

Premium

Mainstream

Lower Mainstream

Discount

Rating

#3

#1

#1

#1

#1

Балтика 0, 5, 6, 7, 8

Балтика 2, 3, 4, 9

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Breweries Group Network in Russia

ST PETERSBURG

SAMARA

KRASNOYARSK

KHABAROVSK

TULA

CHELYABINSK

YAROSLAVL

YARPIVO

PIKRA

VENA

BALTIKA

VORONEZH

10,5 МHL

4,5 МHL

1,5 MHL

6,0 МHL

1,5 МHL

ROSTOV-ON-DON 2,5МHL

2,5 МHL in 2006,

growth up to 4,5 МHL

3,0 МHL

1 МHL

6 МHL

Thank you!IR: +7 812 329 40 93

Baltika BreweriesH1’06 Results