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May 12, 2006 St. Petersburg

BALTIKA BREWERIES Q1 2006 Results. May 12, 2006 St. Petersburg. CONTENTS Financial Results Russian Beer Market and Baltika Breweries Future . Overview of Developments in Q1 2006. Russian market volume growth of 2% Frozen volume s

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May 12, 2006 St. Petersburg

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  1. BALTIKA BREWERIES Q1 2006 Results May 12, 2006 St. Petersburg

  2. CONTENTS • Financial Results • Russian Beer Market and Baltika Breweries • Future

  3. Overview of Developments in Q1 2006 • Russian market volume growth of 2% • Frozen volumes • Baltika total volumes 4.1MHL, -1,7%, Group* total volumes 6.2MHL, -0.7% • Baltika export volumes 0.3 MHL, +11%, including licence production growth +20% • Baltika market share in Russia 23%, -1.1 %pts, Group * 34.9%, -1.2%pts • Solid profit performance by Baltika • Net Sales188.2MEUR, +13.8% • EBITDA 50.2 MEUR, +11.7% • EBIT 32.2MEUR, +9.4% • Merger plan approved by shareholders of Baltika • License production of Baltika started in Ukraine * Baltika, Vena, Pikra, Yarpivo

  4. Financial Results

  5. Baltika Financial Results Q1 2006 IFRS

  6. Baltika Net Sales Development in Q1 2006 +13.8% +7.7% +6.2% - 1.7% +1.6% Net Sales(EUR) Forex Beer volume Other sales Price/SKU

  7. Q1 2006 Results Breakdown IFRS * Including depreciation

  8. Development of Baltika Operating Margin +3.9% -1.9% -3.6% 17.8% +0.9% 17.1% EBIT MarginQ1 2006 Logistics costs EBIT MarginQ1 2005 Sales andmarketingcosts COGS Administrativecosts

  9. Russian Beer Market and Baltika Breweries

  10. Russian Beer Market Development * Baltika, Vena, Pikra, Yarpivo * *Estimate Source: BBH, State Statistics Committee, Breweries Source: State Statistics Committee, Breweries Note: Domestic Volumes

  11. Price Segments Development Share of different price segments of the total beer market volumes Source: BusinessAnalytica

  12. Packaging Segments Development Share of packaging segments of the total beer market volumes * Total HoReCa Source: BusinessAnalitica

  13. Positions of Baltika Group Brands in Q1’06 • Baltika and Arsenalnoye – two leading brands of Russia • Tuborg is brand №1 in license segment, growth in Q1’06 +47.0%, Carlsberg +11.5%, Foster’s +52.2% • Premium brand Nevskoye grew +37.1% • High growth of regional brands: Leningradskoye +31%, Don +29.8%, Samara +8.3% • Baltika Group market share in license segment +1.3%pts– share 20.6% • Baltika Group market share in premium segment +2.7%pts – share 44.5%

  14. Baltika Group Innovations in early 2006 • Foster’sin 0,5 l bottle with a ring-pull crown cap • Kronenbourg 1664in 0,46 l bottle, brand switch to a twist-off cap • A new brand in the Baltika umbrella – Cooler, a beer for young adults in a transparent bottle witha NLLlabel and ring-pull crown cap and in a can • A new license brand Tuborg Twistin a transparent bottle witha NLLlabel and ring-pull cap • Carlsberg in a new bottle format with a unique bottom opener • PET 2,5 l for several brands – Kupecheskoye and Arsenalnoye the first

  15. Future

  16. Integration of BBH Russian companies around Baltika After integration: Leader of Russian beer market Today: 4 separate enterprises

  17. Converting shares and contractual purchase Major stages of the merger in 2006 Company expects to complete the merger process by the year end March 7 May ~August ~October ~End 2006 Baltika shareholders approved all resolutions on merger Baltika shareholders approved all resolutions on merger Regulatory approvals andregistrations Stock issue placement and cash offers Regulatory approvals andregistrations EGSMs of Pikra, Vena and Yarpivo EGSMs of Pikra, Vena and Yarpivo Stock issue placement and cash offers Baltika Group becomes a single legal entity Baltika becomes majority shareholderin Pikra, Vena and Yarpivo

  18. 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 35%

  19. Portfolio of United Key Brands in 2006 Baltika after integration Baltika Yarpivo, Pikra, Vena Rating Rating Licensed #2 #6 Premium #1 #1 Балтика 0, 5, 6, 7, 8 Mainstream #1 Балтика 2, 3, 4, 9 #1 Lower mainstream #1 #1 Discount #1 #3

  20. Group Brewery Network in Russia 3,0 МHL 10,5 МHL ST PETERSBURG 6,0 МHL 6 МHL YAROSLAVL TULA 1 МHL 2,5 МHLin 2006 growth up to 4,5 МHL 1,5 МHL 4,5 МHL VORONEZH SAMARA ROSTOV-ON-DON 2,5 МHL CHELYABINSK 1,5 MHL BALTIKA KRASNOYARSK VENA PIKRA KHABAROVSK YARPIVO

  21. Baltika BreweriesQ1 2006 Results Thank you!

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