Company’s history

2. Company’s history 1994 The company was found in 1994 as the distribution-logistic company selling wide range of food and tobacco products. • 1994 – 2000 – development of two directions in the distribution of consumers’ goods: • -import and distribution of tobacco products; • -import and distribution of tea and coffee products. • Strategic partners - Rothmans of Pall Mall (Ltd),«BritishAmeriсan Tobaссo Inc.», Great Britain и MJF Group, Sri-Lanka • 2000 – Company focuses its efforts on tea and coffee distribution after introduction of restrictions on tobacco market run by state.

3. Company’s history • 2000 – 2004 – Active development ofHoReCa division. Sales improvement in regions with the help of local sub-distributors managed by company’s managers. • 2004 - 2006 – launch of the first coffee house «Amato»; • – introduction of directs sales in regions; • – launch of proper administrative warehouse complex with • the area of 8500 m2; • – portfolio extension through the fat and oil products and • tinned goods. • 2007 – 2008 – HoReCa portfolio extension.

4. Achievements Last year we significantly extended our portfolio. Each year we increase our turnover by 30%. Today, “Avalontorg” is one of the biggest distribution companies in the Republic of Belarus. We work in all trade channels: hypermarkets, trade chains, private shops, wholesalers, open markets and individual entrepreneurs. We offer to our customers the most flexible solutions to meet their requirements. We develop our portfolio on the permanent basis and now it includes world-wide famous brands (soy sauceKIKKOMAN, spices and seasonings Cykoria, Maitre, Knorr, sauces and mayonnaises Calve, cakes and dessertsSelezneff, bakery Delifrance, chocolate, syrups, confectionaryetc).

5. Achievements 1 2 We work in regions through local sub-distributors and by completing direct sales.Each sub-distributor has its own logistic system and stocks controlled by our managers. Separate sales division (HoReCa) makes sales to restaurants, bars, hotels and other on-premise outlets Sales are completed by sales force of our company or sales force of our partners. Our company has its own fleet, including 27 trucks of different carrying capacity. In each region sub-distributors have a fleet from 2 to 6 trucks. 3 4 There are more than 300 employees in our company today. All key employees participate in trainings aimed to improve their level of competence.

6. Our objectivesin HoReCa segment • Our objective is to become a leader in supply of provision to Horeca segment through satisfaction of our customers in assortment and service; • Further development of logistic line; • Further extension of coffee house chain «Amato»; • Further development of our private label «Amato» (“TORREFAZION MUSETTI S.R.L.”, Italy); • 2007 – Introduction of fish and seafood, meat and semi-prepared food, delicacy, cheese, frozen bakery etc in our assortment. Organization of supplies to Japanese, Chinese and Italian restaurants; • Further extension of our assortment portfolio.

7. OurRetail partners ООО «Unilever СНГ»: тм «Lipton», тм «Брук Бонд», тм«Беседа», тм «Knorr», тм«Calve», тм«Rama» ООО «ОРИМИ ТРЭЙД»: тм «Принцесса Нури», тм «Принцесса Канди», тм «Принцесса Гита», тм «Принцесса Ява», тм «Greenfield»,тм «Tess», тм «Жокей»,тм «Regal» MJF Group: тм «DILMAH» ООО «Императорский чай»: тм «Императорский», тм «Чай ОК», тм «Playtea», тм «Сан Виль»,тм «Tea Break» ЗАО ДК «АВАЛОН»: тм «Золотая чаша», тм «Чайная долина»

8. Наши партнеры в сегменте Retail «Петровская Слобода»: тм «Петровская Слобода» Basilur Tea Company Ltd.: чай тм «Basilur» «CykoriaS.A.»: тм «Cykoria», тм «Arrod» Torrefazione Musetti S.R.L.: тм«Musetti» Sucafina S.A.: тм «Ambassador» Tabasko S.A.: spice sauceTabasko Kikkoman Corporation: soy sauceKikkoman our private coffee label «Amato» (“TORREFAZION MUSETTI S.R.L.”, Italy) тм «Kaffa» тм«Черная карта»

9. Sales volumes Sales volumes (1994-2007)

10. Sales volumes

11. Market overview Minsk. Open markets. There 19 open markets in Minsk. We sell our products in all 19 open markets. Average shelve space for our products is: Tea – 60% Coffee – 19% Average numeric distribution in Minsk open markets - 95%.

12. Market overview Minsk. Retail. There are approximately 450 active outlets in Minsk retail.твует около 450 активных торговых точек (магазинов). We sell our products to 95% of outlets. Category А - 15%, Category B – 25%, Category С – 60% There are also 8 trade chains and 4 hypermarkets in Minsk where we sell our products. According to calculation of our sales analysts 50% of tea shelve space and 15% coffee shelve space in Minsk retail outlets occupied by brands supplied by Avalontorg.

13. Market overvies Regions. Retail and Open markets. Average tea shelve space occupied by Avalontorg products in regions’ outlets – 60%. Average tea shelve space occupied by Avalontorg products in regions’ outlets – 17%. Numeric distribution in regions – 85% - 90%

14. HoReCa sales department Regional sales department Regional branches: Grodno Mogilev Gomel Brest Vitebsk Minsk Regions Tec. service Minskreg. Avalontorg structure General Manager EMG logistics EMG marketing Regional sales department EMG administrative HR department Legal department EMG development Finance department IT department Sales department Purchase sector Ordering sector Customs’ department Certification department Warehouse Fleet department Accounting department Security department Construction department Tec. department Marketing department Retail Wholesale Agents’ project IT specialist Secretary HR specialist courier courier инженер по охране труда

15. Company’s structure Marketing Company also includes marketing department with promo-team. Department functions: Retail Project Company also includes Minsk wholesale project which is used to control pricing and marketing activities. • Media planning; • Market analysis; • Launch programs; • PR - campaigns; • Promo activities.

16. Minsk sales department structure Minsk sales manager Retail - sales Agents’ project Wholesales Sales manager Wholesale manager Sales supervisor Key accounts supervisor Unilever Manager MD MD Orimi MD MD Merchandiser Cykoria, P. Sloboda MD MD Merchandiser Bridgetown MD MD Merchandiser Merchandiser Merchandiser

17. Sales supervisor MD, Molodechno MD MD MD merch. MD merch. merch. MD merch. MD merch. MD MD MD MD MD merch. MD, Slutsk analyst MD, Borisov MD, Zhlobin MD, Mozyr MD, Baranovichi Orimi team Cykoria team Uniliver team Uniliver team Regional sales department structure Regional sales department Assistant Mogilev Gomel Vitebsk Brest Minsk reg. Grodno Sales supervisor Sales supervisor Sales supervisor Sales supervisor Sales supervisor analyst analyst analyst analyst analyst MD, Lida MD MD MD MD MD, Bobruisk MD, Polock MD, Pinsk Orimi team Orimi team Orimi team Uniliver team Uniliver team Cykoria team Orimi team Uniliver team

18. Key work principle We deliver products to our customers all over the Belarus within 48 hours from the time when the order was placed by our fleet or fleet of our sub-distributors.

19. Storage Avalontorg company owns warehouse area of 5 000 m2, specially devoted for products storage with different requirements to temperature and humidity. There are deep freeze chambers with minimal temperature -18 °С, chamber with temperature 0 °С and chambers without temperature regime in our warehouses . There is multi-shelves storage system for work with the wide assortment of products. The work of warehouses is atomized due to the special machines.

20. Storage The product placement system is done in a way to minimize risk of smell transfer to products. Spilled or dropped products are removed immediately. Warehouse equipment, including fork-lifts, cleaning machines, palletizers and other are kept in clean. Service diagnostic is done on a permanent basis according to instructions. All employees are trained and are qualified for this type of work.

21. Fleet • The main objective of fleet department is to deliver product to necessary point, by optimal route with the lowest costs. • We have all necessary for the effective work of fleet department: • professional specialists; • own trucks – Today we have 27 trucks of different carrying-capacityfrom1,5 to 5,0 tons. In each region each sub-distributor has from 2 to 6 trucks; • necessary infrastructure, • Including transport objects, • warehouses, offices with necessary connection tools • and data-processing devices; • during delivery the products are • convoyed by forwarding agent. This • helps to keep the product saved and to • deliver it in time.

22. Contacts Республика Беларусь Минская обл., Минский р-н, 3-ий км МКАД, склад для хранения продуктов питания №7 с административно-бытовым корпусом ООО «Торговый Дом Авалон», комн. 27 Тел.: + 375 17 290-53-32 (33, 34, 35, 36, 37) Факс: + 375 17 290-53-00 www.avalon.by avalon@avalon.by