Business profile Distribution & Marketing Company LEVERSA “Your sales and marketing department in Latvia”

1. Business profile Distribution & Marketing Company LEVERSA “Your sales and marketing department in Latvia”

2. OUR HISTORY: • In the beginning there were 2 distribution companies – “Arlems” and “Vice Versa”. • Arlems started its business in 1993 importing the first truck of rapeseed oil Risso from Belgium. Today, every fourth bottle of table oil consumed in Latvia is Risso. • Vice Versa was also established in 1993 and as a distribution company served Latvian food producer “Kok & Co”. As a result “Kok” brand became one of leaders at the Latvian ketchup and mayonnaise markets. • Leversa has combined the sales & marketing skills of Arlems with the sales & logistics expertise of Vice Versa. • SIA Leversa was registered in October 2002 by the merger of Arlems and Vice Versa Our new name is “LEVERSA” = “ArLEms” + “Vice VERSA”. • Since summer 2007 Leversa is owned by 2 Latvian private persons, founders of former Arlems.

3. Overall retail sales turnover with foodproducts 2009 in Latvia compared with 2008 = -20.6% Overall retail sales turnover with foodproducts 2010 in Latvia compared with 2009 = -5.3% Overall retail sales turnover with foodproducts 2011 in Latvia compared with 2010 = +1.3%

4. OUR HISTORY: The merger has resulted in successful expansion of the combined businesses, so that makes Leversa as one of top Latvian distribution companies dealing with food products - the member of TOP-500 Latvian companies 2009

5. OUR COLLECTIVE Most of all we proud about very low personnel rotation in company. 76% of associates (except logistics) work more than 8 years with us!There are a few who work since 1993. All staff on all positions, even warehouse workers, drivers and bookkeepers are individually motivated for better performance achievement. Nobody receive just a straight salary. Everyone works on a principle “the better performance – the higher compensation”. We strive to be as a united collective, as a group of people joined by common interests not in office only but beyond it as well.

6. Structure General Manager MARKETING & SUPPLY 4 FINANCE SYSTEMS 4 SALES 22 persons LOGISTICS 22 IT 1 We do consider our simple 1-level structure as our competitive advantage provided quick internal information flow and responsiveness to any market signals.

7. BUSINESS STRATEGY: To provide value-added, marketing-led services for manufacturers of good quality branded consumer products wanting to expand their business in Latvia. We are willing to be as sales & marketing department of variable cost for our Partners-suppliers.

8. We provide our Principals with SALES services: Sales forces of 22 full time dedicated persons cover the whole country which is divided into Riga, North and South areas. Area sales managers supervise over 14 sales representatives who call on retail outlets and collect orders in their districts. All regional sales reps are equipped by company’s passenger cars. Key-account managers present brands and negotiate listings, prices, assortments, promotions and other conditions with ALL national and regional retail chains. Management set up sales targets which are easily followed up thanks to the used information technology - each salesman has handheld computer iPAQ. Sales reps send orders just received in store from their computers directly to the central computer system with a help of GPRS.

9. SALES STRUCTURE IN RIGA GeneralManager Key-account manager Sales reps Retail supervisor Riga 500+ independent shops LIDO, Nomeda, Deli, Vidzemes Maiznica,Lango, Anre Juniors, Eurofood, Elanders, Grinhols Sales reps HoReCa Sales reps Open markets Wholesale depots

10. SALES STRUCTURE OUTSIDE RIGA The market is completely covered by our sales forces.

11. TWO sales forces to strengthen quality TYPE OF SALES FORCE SALES CHANNELS CONSUMER’S TARGET MASS-MARKET STRATEGY 14 sales reps covering > 2000 active customers directly Average income per person “not low” Different sales channels – retail stores, open markets, wholesale PREMIUM STRATEGY 4 key-accounts managers covering deliveries to retail chains Average income per person “average+” We are able to deal with both – premium and mass- targeted brands and products Strong marketing-oriented approach to support and to develop premium brands

12. Export Wholesalers Other retailers

13. We provide our Principals with MARKETING services: Leversa in cooperation with external advertising agencies is able to offer to Principals marketing services from A to Z: Market Research ( Consumer - Media - Trade ), qualitative /quantitative Control of legal information on labels Packaging design Communication and promotion plans Media - Production ( TV, Radio, Outdoor) - Media Airing In-store demonstrations and product tastings Trade-marketing activities (P.O.P. materials, lotteries, contests, e.t.c.) Just say us what might you need else!

14. We provide our Principals with LOGISTICS services: • Logistics services include import, warehousing and distribution. • Warehouse facilities: • - Location in Riga next to the office premises • 1900 pallet places for dry groceries- 100 pallet places for chilled products • We use combined transportation system. • We deliver part of merchandise to customers with our own trucks and outsource other transport services to third parties providing to Leversa flexibility and reducing related costs. • Most of used trucks/vans are temperature controlled. • Delivery time in Riga: 24 hours • Delivery time outside Riga: 48 hours

15. DISTRIBUTION CENTER The market is fully covered by our logistics services

16. BRAND CATEGORY PRINCIPAL BRIEFLY ABOUT … Microwave popcorn Soya food and drinks Natural mineral water Tuna preserves Mayonnaise, ketchup, vegetable preserves Pasta Bottled edible oils Convenient food Snacks Our own brand Darida, Belarus Cargill Oil Packers, Belgium Our own brand S.I. Group, Ukraine Bolton Alimentary, Italy Adriana, Czech Republic Alpro Comm. VA, Belgium AS Salvest, Estonia N1 in Estonia Branding is well working even in that category. Risso=market leader Strong local brand. Production is sourced in Latvia, India, Italy, Hungary Volume leader in Central Europe Market leader among imported mineral waters It is manufactured in USA, birth place of popcorn Salty rusks - innovative snack, Obvious market leader in Ukraine N1 in Italy and in many European countries! European pioneer and market leader Non-alcoholic drinks Ilgezeem,Latvia Specialist and market leader of natural malt-based drinks We represent local and international brands We continuosly work on brand portfolio extension and welcome brand holders interested in to cooperate.

17. Philosophy of cooperation with Partners • The BRAND has to be the object of common care and attention • Leversa is encouraged to invest into Brand development together with Partner • Leversa always looks for long-lasting partnerships • Leversa follows its commitments and anticipates the same approach from our Partners • Leversa contributes into cooperation hard work, creativity and passion of its personnel • Leversa expects good understanding and teamwork with our Partners

18. Our self-profile • We aren’t the largestr distributor in Latvia but who said that bigger is better? • We like hard challenges and ambitious targets and we like creative and smart solutions • We hate “let’s try” approach; we like “go & get” only • We deal on fair “win-win” basis • If we say “YES”, this means “YES” for sure • If we can’t do something, we say “Sorry, NOT” Do you like us? 

19. MEMBER OF ESMA ASSOCIATION We are proud to say that “Leversa” is a member of ESMA since 2002. ESMA - a pan-European trade association of Europe's finest sales and marketing organizations, specializing in selling, marketing and distributing packaged consumer goods (PCG). ESMA exists to promote and safeguard the interests of its members, and to help PCG manufacturers find the best partners for expansion in Europe, both in home and export markets. Members are experts in their geographic markets and provide a range of first-class services for manufacturers. To know more about ESMA please visit www.esma.org.

20. Your first contact: • Bizan Viktor • Marketing Director • SIA “LEVERSA” • 8b Uriekstes str., Riga, LV-1005, Latvia • Phone: +371-7517490 • Fax: +371-7517495 • E-mail: viktors.b@leversa.lv • www.leversa.lv • presentation updated on 2012 May