1. 2 OJSC UNITED CONFECTIONERS MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE 14-th position in...

2OJSC UNITED CONFECTIONERS

MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE

14-th position in World top -100 Confectionary Companies.

14,8% of total market share in Russia.

«UNITED CONFECTIONARY» is the leader of the confectionery market of Russia and the leading Eastern European confectionery holding.The company is a part of «Guta Group». It unites 19 confectionery plants, including the largest Moscow confectionary factories: «Krasny Octyabr», «Confectionary Concern «Babaevsky», «RotFront».

Net revenue 2013 – 1 106 128,7 thousands of Euro. Gross profit 2013 – 348 203,3 thousands of Euro.Total comprehensive income for 2013 year, net of tax 85 232,9 thousands of Euro.


MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE

«UC» has leading positions in the Russian market in all categories: caramel – 36.4% (1th position), sweets sold in bulk – 29.9% (1th position), chocolate bars - 22% (2th position), boxed pralines – 21.6% (2th position).

Coverage of more than 100 000 retail outlets throughout Russia and own retail chain «Trans konditer».

Produces more than 3 500 SKU of confectionery products in all confectionery categories. In 2014 produced 355 000 tons products.

«

«Guta Group» is one of leading multiproduct investment & industrial corporation in Russia. It was established in 1989. Annual turnover -


KEY PLAYERS IN CONFECTIONERY MARKET. RUSSIA

«UC» Holding is the leader of the Russian confectionery market

Others; 45,3%

UC; 13,7%Mars; 5,1%

Mondelez (Kraft

Foods); 6,8%

Ferrero; 1,8%

Nestle; 3,3%

Private Label; 11,0%

KDV; 5,2%

Orkla; 2,1% Konti; 2,6% Roshen; 3,1%

Main confectionery market players in Russia in 1st half of 2014 (volume)

Others UCMars Mondelez (Kraft Foods)Ferrero NestlePrivate Label KDVOrkla KontiRoshen

Others; 36,8%

UC; 14,8%Mars; 10,0%

Mondelez (Kraft

Foods); 10,0%

Ferrero; 7,9%

Nestle; 5,6%

Private Label; 5,1% KDV; 3,3%

Orkla; 2,3% Konti; 2,1%Roshen;

2,1%

Main confectionery market players in Russia in 1st half of 2014 (value)

Others UCMars Mondelez (Kraft Foods)Ferrero NestlePrivate Label KDVOrkla KontiRoshen

Source: Nielsen


RUSSIA. MARKET STRUCTURE. CHOCOLATE BARS

«UC» is the 2-ed player (volume), passed ahead «Nestle»and taken 22.0% market share by volume.

20,8% 20,6% 19,7% 22,0%

31,8% 32,2% 32,7% 30,8%

18,6% 17,3% 17,2% 16,0%

6,1% 6,2% 6,3% 6,8%

5,8% 4,7% 5,0% 4,5%

3,4%3,6% 3,5% 4,1%

3,4% 3,5% 3,5% 3,7%

2,2% 2,6% 2,4% 3,2%2,1% 2,4% 2,5% 1,8%

0,0% 1,0% 0,7% 1,3%6,0% 5,8% 6,4% 5,9%

0%

25%

50%

75%

100%

2012 2013 2013-1 2014-1

Key players' market shares VOLUME

UC Mondelez (Kraft Foods) Nestle

Ferrero Orkla Private Label

Mars Alfred Ritter GmBH Pobeda

KDV Others

22 2 2

19,4% 18,9% 18,1% 19,3%

27,1% 27,4% 27,6% 25,3%

15,0% 13,5% 13,6% 12,0%

15,0% 15,8% 16,1% 18,0%

4,2% 3,5% 3,7% 2,9%

1,8% 1,9% 1,8% 2,2%

4,9% 5,0% 4,8% 5,0%

2,7% 3,1% 2,9% 3,6%1,7% 1,9% 2,0% 1,5%

0,0% 0,6% 0,4% 0,8%8,5% 8,4% 9,1% 9,3%

0%

25%

50%

75%

100%

2012 2013 2013-1 2014-1

Key players' market shares VALUE

UC Mondelez (Kraft Foods) Nestle

Ferrero Orkla Private Label

Mars Alfred Ritter GmBH Pobeda

KDV Others

22 2 2

Source: Nielsen


RUSSIA. MARKET STRUCTURE. BOXED PRALINES

Market share of «UC» in Boxed pralines is increasing. Shares of «Mondelez» (Kraft Foods) and also «Konti», «AVK» and «Roshen» decreased. «UC» could improve its share by volume and value.

21,2% 22,1% 21,3% 21,6%

14,8% 15,1% 16,4% 17,3%

8,6%9,8% 9,9%

11,1%

8,6%8,7% 8,7%

8,8%4,3%5,3% 5,1%

7,6%7,9%6,9% 7,0%

6,1%4,2%

3,4% 3,5%2,8%

3,7%3,3% 3,2%

2,2%1,1%

1,4% 1,4%2,1%

1,0% 1,1% 1,1%2,0%

2,0%1,6% 1,6%

1,4%22,8%

21,2% 21,0%17,1%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC Ferrero Mars

Nestle Storck Mondelez (Kraft Foods)

Orkla Konti Private Label

Samarskiy Konditer AVK Others

111114,6% 14,9% 14,0% 14,3%

24,6% 25,1% 26,5% 27,4%

12,6% 13,7% 13,7% 14,1%

8,6%8,1% 8,1% 7,8%

4,7%5,8% 5,6%

7,7%7,2%6,3% 6,3%

5,3%3,4% 2,8% 2,9%2,2%2,5% 2,4% 2,2% 1,7%0,7% 0,9% 0,8% 1,5%

0,5%0,6% 0,6% 1,0%

1,7% 1,4% 1,4%1,2%18,8% 18,0% 17,8%

15,9%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC Ferrero Mars

Nestle Storck Mondelez (Kraft Foods)

Orkla Konti Private Label

Samarskiy Konditer AVK Others

22 2 2

Source: Nielsen


RUSSIA. MARKET STRUCTURE. BULK CANDIES

«UC» dominates in the category of bulk candies, its share by value is increasing steadily.

29,9% 30,1% 29,7% 29,9%

8,8% 7,2% 6,8% 9,3%

9,2%8,4% 8,2%

8,4%

9,8%9,3% 9,4%

7,5%

7,2%6,9% 7,5% 6,6%

3,6%5,1% 4,7% 5,0%

5,0% 4,9% 5,3% 5,0%

4,0% 4,4% 4,0% 4,8%0,3% 1,6% 1,2%

3,3%3,9% 3,7% 4,1%

2,8%18,4% 18,4% 19,1%

17,5%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC Slavyanka Konti Roshen

AVK KDV Orkla Akkond

Private Label Nevskiy Konditer Others

11 1 1

33,4% 33,7% 33,2% 33,8%

8,9% 7,3% 7,0%9,0%

7,5% 7,1% 6,8%7,1%

8,9%8,5% 8,6%

6,1%

7,4%7,1% 7,6% 6,8%

2,9%4,3% 3,9% 4,1%

5,4% 5,3% 5,7% 5,3%

4,1% 4,5% 4,1% 5,0%

0,3% 1,1% 0,8% 2,1%2,3% 2,2% 2,5% 1,6%

18,9% 19,1% 19,8% 19,1%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC Slavyanka Konti Roshen

AVK KDV Orkla Akkond

Private Label Nevskiy Konditer Others

11 1 1

Source: Nielsen


RUSSIA. MARKET STRUCTURE. CARAMEL

«UC» is the leader of the Caramel category as well,

both in volume and value.

34,1% 34,2% 33,7% 36,4%

24,9% 23,5% 23,9% 20,5%

4,0% 4,5% 4,6% 4,6%

4,4% 4,2% 4,1% 4,0%

3,0% 3,3% 3,3% 3,4%

3,1% 3,5% 3,9% 3,3%0,7% 1,6% 0,8% 3,0%2,4% 2,5% 2,6% 2,6%0,8%

3,1% 2,8% 2,4%2,0%1,9% 1,9% 1,9%2,7%2,1% 2,1% 1,9%

18,1% 15,5% 16,1% 16,0%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC RoshenKonti Perfetti Van MelleNevskiy Konditer KDVPrivate Label Mondelez (Kraft Foods)Voznesensk pishekombinat KonfilOrkla Others

111126,1% 26,8% 26,2% 28,6%

16,2% 15,6% 15,9% 13,2%

2,5% 2,8% 2,8% 2,8%

15,2% 15,3% 15,1% 14,1%

1,4% 1,6% 1,6% 1,9%1,8% 1,9% 2,1% 1,8%0,3% 0,8% 0,4% 1,7%

8,2% 8,7% 8,9% 9,2%0,5%

1,8% 1,6% 1,4%1,4%1,3% 1,3% 1,4%1,9%1,5% 1,5% 1,3%

24,5%21,9% 22,6% 22,7%

0%

25%

50%

75%

2012 2013 2013-1 2014-1


UC RoshenKonti Perfetti Van MelleNevskiy Konditer KDVPrivate Label Mondelez (Kraft Foods)Voznesensk pishekombinat KonfilOrkla Others

11 1 1

Source: Nielsen


LOCATION OF MAIN ASSETS

United Confectioners' assets cover most of the Russian Federation.

Tula

TambovVoronezh

Kursk

Smolensk

Rostov-on-Don

Volgograd

Saratov

Bryansk

Krasnoyarsk

Perm

Yaroslavl

Vyborg

Yekaterinburg

St. Petersburg

Nizhniy Novgorod

Ioshkar Ola

Chelyabinsk Novosibirsk

Khabarovsk

Blagoveshchensk

Krasnodar

19 confectionery production units in 11 cities

8 regional distribution centers (RDC) in 7 cities

4 logistic centers in 3 cities

Agricultural sector – 1 agricultural holding (38 000 hectares) and 1 sugar production unit

Retail chain «Transkonditer» (30 shops in 19 cities);3 Factory Outlets

2 dairy production units

Confectionery factory RDC WH Agricultural sector Dairy prod. Own retail shops

MoscowTver

Penza

SamaraTumen


QUALITY CHOCOLATE

Cocoa beans from Cote d’Ivoire and Ghana (Africa)

Some factories have equipment for primary processing of cocoa beans.

Sugar and milk are produced at the agro-industrial factories of the Holding.

Produced in 2014 milk - 3 t.ton sugar beet - 360 t.ton wheat – 65 t.ton maize – 47 t.ton


successfully compete with Kraft, Nestle, Mars etc.

win TOP positions in the Russian market

our market share grow in all categories

unique competence in the biggest market - candies

NATIONAL URBAN, VOLUME SHARE 2014 (NIELSEN)

UNICONF; 22,0% UNICONF; 21,6%UNICONF; 29,9%

UNICONF; 36,4%

Mondelez (Kraft Foods); 30,80%



Nestle; 16%

Nestle; 8,80%

Ferrero; 6,80%

Ferrero; 17,30%

Mars; 3,70%

Mars; 11,10%

Others; 20,7%

Others; 35,1%

Others; 70,1%

Others; 61,0%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Chocolate Boxed Candies Bulk Candies Caramel

2 1 1 1


ACTUAL GROWTH IN SALES CAGR 2006-2014

597,0656,0

805,0852,4

941,6

1 115,11 165,6 1 189,3

1 095,1

0

200

400

600

800

1 000

1 200

1 400

2006 2007 2008 2009 2010 2011 2012 2013 2014

mln

. EU

RO

Sales (mln. EURO excl. VAT)


TOP BRANDS

Each family In Russia knows well and loves our brands.

There are legendary and new brands in the portfolio of «United Confectioners».

Total brands - over 300.


TOP BRANDS

since 1966

since 1998

since 1976

SKU - 66

SKU - 46

SKU - 31

since 1922

SKU - 99

since 1931

SKU - 138

since 1998

SKU - 10

Market shares of main

«UC» brandsAlenka 1,2%Babaevskiy 1,0%Vdokhnoveniye 0,8%Russkiy Shokolad0,02%


NEW BRANDS

since 2012

since 2013

since 2012

SKU - 40

SKU - 7

SKU - 6

Market shares of main

«UC» brandsFelicita 0,1%Eco Botanica 0,02%Sweet history 0,04%


KEY RETAIL CUSTOMERS: INTERNATIONAL & LOCAL CHAINS


«United Confectioners» is the leader in Russian Confectionery market with strong intention to develop worldwide.

THE UNITED CONFECTIONERS IN THE WORLD

Export to 30 countriesoutside Russia


STRONG POSITIОNS

Our brands are presented of the main chains in Germany, Poland, Latvia, Estonia…


Powerful brands and ideas beloved by millions of consumers

adopted for European market

INTERNATIONAL BRAND PORTFOLIO


Alionka – sweets for all the family. Legendary milk chocolate is produced since 1966. And also bonbons, biscuits, cookies, candies. Alionka - is the most recognizable women

image in Russia. It’s like Mona Lisa (da Vinci) for

Russians.

Sweet treasure – plenty of pleasure!

EXPORT BRANDS

For those, who appreciate: Delicious taste rich in high quality cocoa.

Creativity and Art symbols of the brand are world famous Bolshoy Theatre and ballet

Love Gift boxes and elegant stick chocolate

Inspiration Passion

Poetry Art


No artificial colours or preservatives

Natural products with natural taste Wafers, biscuits, bon-bons Korovka - a name for funny cow

Korovka for a green break

EXPORT BRANDS

Soft small roll from two spreads Natural product with cocoa, milk, eggs, peanut Light product – no glazing, less calories, perfect for summer Unique recipe since 1959: BonRoll doesn’t melt and stays in form Rich taste, TOP popular product among millions of Russian consumers


Unique format: very slim sticks of chocolate original form of sticks each stick in individual package 10 sticks inside fillings or pieces of nuts inside the sticks high quality and perfect taste chocolate in sticks

Share the taste! Share the pleasure!

Alionka and Inspiration

EXPORT BRANDS


EXPORT NEW BRANDS OF 2013

NEW LINE OF DARK CHOCOLATE

Only dark genuine chocolate

Pure taste of cocoa or with favorite flavors

Involves rich traditions of chocolate - making, since 19th century

The taste of genuine cocoa inspired us to create a unique brand of dark chocolate – DARX.

Each bar of DARX reflects rich experience of chocolate-making and a tireless desire to create a truly valuable product.

We even have put a cocoa bean on the packaging as a symbol of our brand, because whatever DARX flavor we produce – it’s always dark – the very best that the cocoa beans can offer.


INTRODUCTION

Since August 2014, we initiated the commercial activity in the Canary Islands. Being present in 109 shops now.

We have launched two brands:

«Korovka» is the brand of wafers and cookies.It is a family of excellent quality products, with no artificial colorant nor preservatives, with unique taste.

«Artpassion» is a premium brand of chocolates in Russia. These are premium products with higher % of cocoa than competition, with a fine taste, wrapped in an outstanding packaging.

UNIQUE BRAND

UNIQUE BRAND

N1 Famous brand for people from Eastern Europe

Natural products with natural milky taste

Unique taste of baked milk Unique “Russian pie” with

condensed milk No artificial colours or preservatives Simple and fun for every day Families with children

UNIQUE BRAND

UNIQUE BRAND CONCEPT

N1 RUSSIAN PREMIUM BRAND RUSSIAN BALLET TRADITION – N1 THE ART OF BALLET & THE ART OF

RUSSIAN CHOCOLATE NOBLE RUSSIAN CHOCOLATES LEGENDARY BRAND INSPIRED BY RUSSIAN BALLET

Love Inspiration

Theatre Ballet

Poetry

Elegance Art Passion

Pleasure

Literature

BASIC ASSORTMENT

GIFT BOXES PRALINES

CHOCOLATE STICKS TENDER SOUFFLE IN CHOCOLATE


CURRENT STATUS

We have used the model of direct distribution, making the agreements with customers, placing orders, importing the product, controlling the points of sales, preparing and executing the promotions

There are 15 SKU already listed in 109 shops in Canary Islands, being present in the following chains:

Corte Ingles,Alcampo/Achuan.Jesuman Group,Agrucan (SPAR),DISARumardi (distributor of impulse channel)


VOLUME GROWTH IN 2015

In 2015, we started the sales in Spain Continent.We have initiated the commercial contacts with Corte Ingles, Grupo Miquel Aimentación, Carrefour, Grupo Día, among others. We started deliveries in February 2015.

The following table illustrates the volume development for 2015

This represents a growth of 560% vs 2014.

Tonnes 2014 2015

Artpassion 10 98

Korovka 28 155

Total 38 252

In terms of POS, the aim for 2015 is to achieve in total 1491 shops before the end of the year 2015, converting all the big retailers (except discounters),of the country.


United Confectionerssuccessfully combines more than 200 years of quality traditions with modern equipment and technologies

QUALITY AT 100 %

The quality management system meets international standardsISO 22000


INNOVATION

Centre for Development and Applied Research

Launched in 2012 The only one in Russian confectionery industry Equipped with modern analytical equipments Source of product innovation and engineering solutions Manufacturing of test batches of new products Definition of market prospects

Investments to the project was more than 150 million rubles.


OUR HISTORY IS OUR PROUD

1851«Krasny Octyabr»

(«Einem»)

Ferdinand Teodor Fon Einem

Ulius Geis

A small shop of chocolate and sweets on the street Arbat in 1867 grew into a partnership «Einem», and in 1913 was given the honor to become the supplier of His Imperial Majesty.

1826 «ROT FRONT»

(Trade House of Lenovy )

«United Confectionary» was established in 2002

as Russia's largest confectionery Holding for the revival and keeping of

confectionary traditions.

Grigoriy A. Lenov Ekaterina S. Lenova

Handicraft shop on production of caramel and sweet in 1900 receives the name of Trade house, in 1931 is renamed in «ROT FRONT». In 1938, is one of the largest factories in the Soviet Union.

Aleksey I. Abrikosov

The shop received the name «Abrikosov» for the art of making sweets of apricots. Since 1880 was known in Russia and abroad. In 1899 was awarded the title "Supplier of the Court of his Imperial Majesty".

1804 «Confectionary concern

«Babaevsky» («Abrikosov and sons»)


SOCIAL RESPONSIBILITY

Philanthropy Corporate Events Training and improvingof qualification

Donor's action Protection of environment and savings of energy

Caring for ours veterans


THANK YOU

1. 2 OJSC UNITED CONFECTIONERS MAJOR CONFECTIONARY HOLDING IN WESTERN EUROPE 14-th position in...

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