JSC “latvijas balzams”: achievements 2012 Guntis Āboltiņš-Āboliņš, CEO Valters Kaže, Brand Director

About Us #1 alcohol producer in the Baltics >120 products and brands >100 international awards ~70 m Bottles annually LVL 67.7 m revenue in 2011 >600 employees 36 direct export markets >160 export markets via SPI Group 24% market share in Latvia 57% market share among local producers

Unaudited Business Results 9m 2012 50,3 m (+8% vs 9m 2011) Revenue (LVL) 32,4 m Volume (litres) +1% volume +8% revenue Export growth (% vs 9m 2011) 2.5 m (+19% vs 9m 2011) Unaudited profit (LVL) 26.3 m (including 18.3 m in excise tax) Taxes paid (LVL)

Unaudited Business Results 9m 2012 REVENUES 9M 2012 AND 2011 TOTAL, LVL m VOLUME REVENUES 9M 2012 AND 2011 TOTAL, m litres REVENUES 9M 2012 AND 2011 BY MARKET, LVL m VOLUME REVENUES 9M 2012 AND 2011 BY MARKET, m litres

In 2012 Company has invested LVL 310,000 in development LB Investments in 2012 In 2012 Company has invested LVL 310,000 in development New equipment for production of Stolichnaya IT renovation and infrastructure Filter housings New equipment for packaging and corks Other improvements Investment in production and logistics LVL 275,000 Design concepts New recipes and technologies Investment in new product development LVL 35,000

Key Achievements in 2012 MARKET LEADING GROWTH Sustainable market share in Latvia: 24% share retained despite harsh competition such as import growing by +28% year on year (9m 2012) 18 new products and packaging redesigns: focus on consumer insights driven portfolio management Growing export volume: SPI Group exports to >160 countries as main source PUBLIC RECOGNITION Silver category in «Sustainability Index 2012»: a recognition to to our sustainable strategy and risk management «Senior-Friendly Company“: awarded by Ministry of Wellfare and EC

NEW PRODUCT DEVELOPMENT

Grand Cavalier Exclusive VODKAS AND INFUSIONS STRONG VODKA «LB VODKA 69%»: FOR HOME-MADE INFUSION FANS «LB INFUSION»: 3 INNOVATIVE COMPLEX FLAVOURS «BALTA»: CLASSIC VODKA FOR LITHUANIAN MARKET Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

Grand Cavalier Exclusive BRANDIES AND STRONG SPIRIT DRINKS «BONAPARTE CINNAMON»: DELICATE BRANDY AND CINNAMON BLEND «ARAMIS»: 5 YEARS AGED FRENCH BRANDY «GRAND CAVALIER EXCLUSIVE»: #1 BRAND IN LITHUANIA + INNOVATIVE TECHNOLOGY + 8 YEARS AGED FRENCH BRANDY Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

Grand Cavalier Exclusive LIQUEURS AND BITTERS «ŠARLOTE»: MARKET LEADER REBORN IN A NEW QUALITY «ŽOLYNŲ»: 23 NATURE-BORN INGREDIENTS TO RULE THEM ALL IN LITHUANIA Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

Grand Cavalier Exclusive SPARKLING WINE AND FUSION «RĪGAS DĪVA»: FUSION WINE DRINK FEATURING REAL FRUIT FRESHNESS «RĪGAS JUBILEJAS» SPARKLING WINE: 60 YEARS OF CLASSIC TECHNOLOGY WITHIN CONTEMPORARY PACKAGING Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

Grand Cavalier Exclusive CIDERS AND PREMIXES «APPLE GARDEN»: DRY CIDER FOR A DEMANDING CONSUMER NEW PREMIX FLAVOURS: FROM CLASSIC VALUES TO HOT THINGS... Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

Grand Cavalier Exclusive DESIGN RELAUNCH FOR MOST-LOVED BRANDS Grand Cavalier Exclusive Brandy Aramis Bonaparte Cinnamon

AND FINALLY... HERE COMES THE MOST INNOVATIVE PRODUCT OF 2012...

High quality vodka Combines centuries of Riga Black Balsam craftmanship with advanced technologies The most pure form of vodka – secret hidden in: Black Charcoal and Silver purification: unique silver-ionized charcoal applied 7 times filtered for the most pure taste purest artesian well water (184m and 198m) no suggar added – the most pristine taste Highly competitive to top-notch vodka brands locally and globally Widely available in stores from January, 2013

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INDUSTRY IN 2012 AND CHALLENGES AHEAD

Priorities for Industry 2012-2013 Pro-active and meaningful conversation with government started to combat illicit alcohol market in Latvia Alcohol excise tax unchanged – secures stability and predictability of the licit business framework More strict measures related to breach of alcohol regulation – age verification for young adult (18-25) consumers introduced Productive collaboration with State Revenue Service and law enforcement bodies

2013: The Challenges Ahead Top priority: effectively combat illicit alcohol market in Latvia More severe sentence for distribution of illicit alcohol Pure alcohol contents based excise taxation legislative initiative Real estate taxation incentives for the largest employers Industry as a social partner in legislative decision making Walk the talk: implementation of the National Development Plan

JSC “Latvijas balzams” Priorities in 2013 Further development of innovative and cost-effective technologies Retention of top quality despite the increase of raw material costs Growth of production volumes driven by economic recovery in world markets Production and logistics Competitive and profitable new products Brand building for current brands New product development Grow in core markets and selectively enter new Develop globally competitive product portfolio Export Responsible and moderate alcohol consumption education programs Combat illicit alcohol market to tackle its social and economic impact Reduce impact on environment by improving production processes Corporate Social Responsibility