“KONTI” GROUP

2

Key Investment Highlights

Attractive market

Modern production facilities

Strong distribution and marketing expertise

Experienced management team

Strong brand portfolio

Impressive growth story

Leading Ukrainian confectionery manufacture

Excellent credit history

3

Ukrainian market overview

• The USD value of Ukrainian confectionery market in 2010 was increased by 24% compared to previous year and reached

USD 2,12 billion.

• The Ukrainian confectionery market is relatively consolidated. TOP10 confectionery manufactures held more then 60% of the market in 2010

• Per capita consumption of confectionaries in Ukraine is about 15kg per year, which is still below European (22-25 kg in EU)

• Ukrainian confectionery demand is almost fully satisfied by local producers

Confectionery market, USD bn

Output structure, 2010 Production share of main market players, 2010

Sweets34,2%

Biscuit27,7%

Caramel sweets9,8%

Wafer products6,1%

Chocolate3,9%

Fruit jelly1,7%

Dragee0,7%

Other15,9%

Roshen; 25,0%

KONTI; 15,5%

AVK; 11,6%

Biscuit Chocolate; 5,8%

Zhytomyr sweets; 2,8%

Poltava Konditer; 5,1%

Svitoch; 1,7%

Kraft Foods; 1,7%

Other; 30,8%

0,550,63

0,83

1,17

1,43

1,67

1,94

2,24

1,69

2,12

0,00

0,50

1,00

1,50

2,00

2,50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

4

Russian market overview

• The confectionery market in Russia is one of the biggest in the world.

• The USD value of Russian confectionery market in 2010 was increased by 10% compared to previous year and reached USD 6,7 billion.

• The consumption of confectionaries in Russia is around 16kg per capita per year

• In 2010 the production of confectionery items decreased by 4%. TOP 10 producers held about 40% of the market.

• The chocolate segment has the largest market share in terms of value. Bakery products segment has the largest market share in natural equivalent.

• Among TOP 5 producers 2 are Russian-owned and 3 are global players.

Confectionery market, USD bn

Output structure, 2010 Production share of main market players, 2010

United Confectioners

13,7%

Roshen 5,5%

Vostok KD 5,2%

Mars 4,8%

Slavyanka 4,6%

Kraft Foods 4,4%

Nestle 3,7%

KONTI 2,8%

Orkla 2,8%United Bakers 2,1%

Other 50,5%

Sweets23,6%

Biscuit18,2%

Chocolate11,3%

Wafer products8,5%

Caramel sweets8,2%

Fruit jelly3,3%

Dragee0,7%

Other26,1%

2,5

3,3

3,9

4,54,9

5,6

6,6

7,3

6,1

6,7

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

5

History

1997 1999 2001 2003

Konstantinovka

Confectionary

Factory (Ukraine)

became a part of

the Group

Gorlovka

Confectionary

Factory (Ukraine)

was acquired

Donetsk

Confectionary Factory

(Ukraine) was added

to the Group

ISO 9001:2000

implementation

2004

Kursk Confectionery

Factory (Russia) was

acquired

After 2010

KONTI Group intends to

invest around USD

152mln by 2014 in New

factory in Kursk.

2007

Head-office

Construction,

Donetsk (Ukraine)

Construction of

logistics center in

Makeevka (Ukraine)

Construction of

logistics center in

Kursk (Russia)

2008 2009

Construction of

packaging factory

for confectionery

products in

Makeevka

(Ukraine)

2010

Jelly-Sweets production line

installation in the new

production complex in Kursk

(Russia).

6

Company overview

Production output, thousand. tones

Production Facilities

Kursk Factory

Konstantinovka

Factory

Gorlivka Factory

Donetsk Factory

• KONTI is the second largest and the fastest growing confectionary company in Ukraine, with 12% Ukrainian market share and 4% Russian market share in terms of value in 2010

• The Company operates the most technologically advanced production facilities in Ukraine

• Three factories in Ukraine and two factories in Russia are part of KONTI Group. Since Russian factory acquisition in 2004 its output was increased by six times. In 2010 New Factory was build in Kursk.

• KONTI is producing a variety of confectionery products, including wafers, chocolates, deserts, sponge cakes, biscuits and caramel. During 2010, KONTI increased its output by 8.4% to 238 ths. tones

• Strong distribution network is one of major competitive advantage

• 2010 consolidated non-audited net sales rose by 29% to UAH 4.2 billion according.

Source: company data

Output structure, 2010

New Factory in

Kursk

Packaging factory

(Makeyevka)

Chocolate sweets

36,2%

Chocolate 3,2%Biscuit 32,7%

New year

presents 2,7%

Fruit jelly 0,3%

Caramel sweets

12,7%

Dragee 0,8%

Combined

confectionery

dessert 5,1%

Wafers 4,3%Sponge cake

2,1%

5467

84

126

151

184

205219 220

238

0

50

100

150

200

250

300

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

7

Production Facilities and Objects

in Ukraine

Workshop

Acquisition/building

date

Investments to 10 Investments ‘11-14 Products

1997 USD 7.5 million

1999 USD 2 million

2001 USD 164 million

2007 USD 10 million

2007 USD 17 million

2009 USD 4 million

Konstantinovka

Horlivka

Donetsk

Office

Logistic centre

Packaging factory

Total: USD 204.5 million

8

Production Facilities and Objects

in Russia

2004

USD 17.5 million

2008

USD 20.5 million

2008-2014

USD 49 million

USD 152 million

Kursk New Factory

Kursk

In 2010 the installation process of first Jelly-Sweets

production line in the territory of New Kursk

production site was completed.

Additionally eight new advanced production lines are

to be installed in the period from 2011 to 2014.

Logistic centre

Factory

Acquisition/building

date

Investments to 10 Investments ‘11-14 Products Workshop

Total: USD 152 million USD 87 million

9

Brand Portfolio

Sandwich bisuits

Confectionery dessert

«Bonjour»

Chocolate products «AMOUR»

Chocolate candies

Sponge cake Caramel sweets

Wafer products

Chocolate products

Biscuits Dragee

The Company focuses on premium products with keeping all traditional confectionery items in its portfolio.

10

Mission and Strategic goals

Increase market share in Ukraine to

15%

Increase market share in Russia to

7.5%

Increase output of premium and high-

yield brands

Reach USD 1 billion yearly net sales

Mission

Long-term development with creating unique high-quality and healthy products. Be international company

with stable increase of enterprise value, operation profitability and strong brand portfolio. To create

conditions for personal, professional and financial growth of employees.

Strategic Goals

11

Financial results

Gross profit

Net Income EBITDA

Net Sales

692930

1 386

1 816

2 559

3 253

4 191

34%

49%

31%

41%

27%29%

0%

10%

20%

30%

40%

50%

60%

0,0

500,0

1 000,0

1 500,0

2 000,0

2 500,0

3 000,0

3 500,0

4 000,0

4 500,0

2004 2005 2006 2007 2008 2009 2010

Sales, UAH mln growth, %

82114

133

187

356

550

445

12%12%

10%10%

14%

17%

11%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

0,0

100,0

200,0

300,0

400,0

500,0

600,0

2004 2005 2006 2007 2008 2009 2010

EBITDA, UAH mln

EBITDA margin, %

45 4026

42

-191

195208

7%

4%2% 2%

-7%

6%5%

-20%

-15%

-10%

-5%

0%

5%

10%

-200,0

-150,0

-100,0

-50,0

0,0

50,0

100,0

150,0

200,0

250,0

2004 2005 2006 2007 2008 2009 2010

NI, UAH mln NI margin, %

Negative Net Income in 2008 was caused by UAH 433 082 thousand loss on USD and EURO loans due to Ukrainian currency devaluation in Q4 2008. As from 01.09.09 all KONTI Group USD and EURO loans are converted into UAH and

173

312

481

622

836

987

1142

33%

51%53% 52%

48%

44%

37%

0%

10%

20%

30%

40%

50%

60%

0,0

200,0

400,0

600,0

800,0

1 000,0

1 200,0

2004 2005 2006 2007 2008 2009 2010

Gros profit, UAH mln

Gros margin, %