Novabev Group · RUS:BELU
Novabev — Beluga Group — Investor Presentation (January 2022)
58 slides from Novabev's investor presentation, January 2022
Slide 1: Beluga Group presentation
BELUGA — croup — BELUGA GROUP presentation EXPORT
Slide 2: Disclaimer
‘The information contained herein has been prepared by Beluga Group PISC (the *Company’) The information and opinions presented herein are based on information gathered at the time Of its publication and are therefore subject to change without notice Whitethe Company relies on information obtained f
Slide 3: Agenda
Agenda BELUGA GROUP LEADING ALCOHOL RAPID EXPANSION OF TODAY COMPANY IN RUSSIA OWN SPECIALIZED RETAILER STRATEGY FOCUS ON APPENDIX OVERVIEW SUSTAINABLE DEVELOPMENT
Slide 4: Beluga Group today
BELUGA — cROUP:
Slide 5: Beluga Group at a glance
vl Spirits producer BELUGA GROUP at a glance wt Vodka producer RUB O7n (18% y-o-y) al RUB 6 Spn (123% y oy) ixal RUB 9 . Don (+31% y-o-y) In Russia) 14.3% Globally? 1,001 LTM Gross revenue®) wl LTM Net revenue®) 1.5x LTM EBITDA® 225% ROIC®) stores(") Specialized alcohol Net debt / EBITDA of Net Inco
Slide 6: Strategy 2024 execution progress
Strategy 2024 execution progress 2020 1H 2021 2024 nec 645 > 100 > — ~2,500 Share of Retail DOUBI ti Wy _ 7 . in total revenue 34% > 37% > ~45% THE BUSINI E-commerce share ay in Retail revenue®) 3% > 5% > 10-15% > Share of non-vodka 34% 5 35% . ~45% products®) Net Debt / EBITDA 1.7x > 1.5x > <1.0x
Slide 7: Beluga Group's route to the consumer
BELUGA GROLP’s route to the consumer OUR CONSUMER SPECIALIST RUB 28bn >Amn 1001 RETAIL & E-COM LTM revenue 1H 2021 Customers?) Stores? 12 1,350 100 20+ logistic salesmen countries exported centers of export brands DISTRIBUTION & EXPORT a) & 18 50 Spirits in-house countries suppliers. production site
Slide 8: Strategic importance of establishing own retail chain
Strategic importance of establishing own retail chain Key advantages for BELUGA GROUP. Winelab’s value add to the Group’s business I) Direct access to customers, better 2 infer contribution” margin compared to other sales channels, understanding of customers’ behavior = In-house brands 1.5x Agencies
Slide 9: Beluga Group's efficient route to the market
BELUGA GROUP'’s efficient route to the market 5 production facilities across Russia with >2Omn 9L total capacity Tethanol plant with Imn OL total capacity [vineyard a mn a epee 2/1/ ha fertile vineyards Saint Petela SN pat FAN Ackhangelsk region A 900 ha additional tand Moscow Winemaking facility 1,
Slide 10: Robust operational performance
Robust operational performance Total shipment Hi Import Il In-house brands In-house brands shipment Import brands shipment Mn, 9L cases etpmanbts — dtipmedhte Mn, 9L cases Mn, 9L cases < @22% > o12% >| 74 05 7 144 15.7 a9 = 140180 14.6 2018 2019 2020 2021 2018 2019 2020 2021 2018 2019 2020 2021 Stor
Slide 11: Selected brands' performance in 2021
Selected brands’ performance in 2021 shows ongoing trend of sales mix premiumization In-house brands 3 A Vodka Spirits H Wine Beluga Beluga (export) Bastion, Green H Golubitskoe cognac Baboon, gin - Estate, Tete Io de Cheval im Cy 7 By ol« 105% 115% 108% : | 27% Partners’ brands Spirits Imported Win
Slide 12: New exclusive agreements in 2021-2022
New exclusive agreements in 2021-2022 continue to strengthen positions in the key categor ies Dur rtfolio across and have lai premiumization of th Flagship partnership with one of the cognacs’ global leader Rémy Cointreau... sal iN COMFORT
Slide 13: Strong financial performance
In 1H 2021, consolidated revenue grew by 20% mainly due to growth of exports as well as steady growth of Winelab retail chain Gross profit grew by 21% driven by improvements in operating efficiency as a result of ongoing implementation of the approved Strategy 2024 In 1H 2021, consolidated Net Incom
Slide 14: Beluga Group
BELUGA LENG wo. a a IN _ ‘
Slide 15: Key investment highlights
Key investment highlights Large and resilient spirits and wine market N21 spirits producer in Russia” and N&4 vodka producer globally?) Vertically integrated operations Diversified business with strong brand portfolio Beluga brand active global expansion Launch of own specialized retail chain to fur
Slide 16: Large and resilient spirits and wine market
Large and resilient spirits and wine market Vodka is the most popular spirits category across the world with Russia alongside USA being the key markets Despite economic slowdown, vodka consumption in Russia remains stable while market continues its growth in value terms = Global spirits consumption
Slide 17: Unmatched leadership domestically and further advance worldwide
Unmatched leadership domestically and further advance worldwide Market share in the Russian market for 2021 by volume #1 vodka & flavored liquors #1 flavored liquors producer #4 brandy producer #1 whiskey producer producer) Igrist Roust Opvz Stellar 49% Sina | 25 Tatspirtprom Geet Allians Allians ||
Slide 18: Diversified business with large share of non-vodka categories
Diversified business with large share of non-vodka categories Key direction for business diversification Distribution platform focused on direct sales "High and growing level of the controlled sales"? (85% of total sales in 2020) * Expansion of own specialized retail chain Winelab Brand innovation *
Slide 19: Strong brand portfolio: own brands
Strong brand portfolio: own brands Vodka Brandy /Cognac/ Wine Liquor : Other spirits tequila, ru Super premium Super: premium Sub-premium premium Sub-premium premium Middle Middle Mainstream Mainstream
Slide 20: Strong brand portfolio: imported brands
Strong brand portfolio: imported brands Other spirits tequila, ru Brandy / Cognac / Whisky : Wine Liquor : Super Super: premium premium Sub-premium Sub-premium premium premium Middle Middle cane aa =| Mainstream Mainstream
Slide 21: Increasing footprint on the fast-growing wine market
Increasing footprint on the fast-growing wine market Russia’s wine market overview = Russia is among Top-8 highest wine consuming countries globally and N@1 wine consumer in CIS and Eastern Europe”), with wine consumption per capita in Russia significantly lags behind developed countries = Russian t
Slide 22: Beluga - flagship brand supplied all around the world
Beluga - flagship brand supplied all around the world Top-5 ultra-premium vodka brands globally Market shares of ultra-premium vodka brands globally by volumes, 2020 #1 ~ BELUGA 32.2% * Premium vodka brand ° * Premium vodka in Russia and CIS =» Ure oremium brand globally © Prestige vodka brand globa
Slide 23: Beluga brand export operations snapshot
Beluga brand export operations snapshot United States 14% > x2 higher +5 4% +30% Export department, Moscow CIS®, excl. Russia US as one of the core export markets export gross Beluga sales Beluga sales margin compared volumes growth, volumes Middle-East & Africa to domestic 2021 growth, 2020 28% > D
Slide 24: Industry leading efficiency, growth and dividend yield
Industry leading efficiency, growth and dividend yield Cash conversion ratio ‘20 Revenue CAGR ‘18-20 EBITDA CAGR ‘18-20 Dividend yield ‘21@ ee 89,9% te 191% 4 32,3% ie 43% Production & Prodection& Production & debition itbtion debiion seamen segment seamen DISGED) % DIAGEO DIAGEO DIAGEO Perot Road -
Slide 25: Rapid expansion of own specialized retailer
Slide 26: Key investment highlights
Key investment highlights BUHJIGB Large specialized alcohol retail market with substantial white space potential #1 specialized wine & spirits retailer in Russia Strong customer value: quality assortment and competitive prices Well-positioned to swiftly expand into e- commerce through click & collec
Slide 27: 3,3% 3,6% 1,8% 2,1% 30,5 28,9 32,1 18,8
3,3% 3,6% 1,8% 2,1% 725 609 610 299 305 285 540 430 30,5 28,9 32,1 18,8
Slide 28: Capitalizing on massive market potential
..capitalizing on massive market po Sizeable white space potential® in specialized alcohol retail market in Russia... <i rT 29k ae: Notable potential for further store 7" rol-out Winelab’s target expansion regions Current Winelab retail Reflects Winelab expansion plans m Other specialized alcohol re
Slide 29: Winelab focuses on value-for-money wine and spirits assortment
Winelab focuses on value-for-money wine and spirits assortment demonstrating rapid roll-out dynamics RUB 144.26 (+24% y-o-y) Retail revenue 1H 2021 84 ths. sqm (+61% y-o-y) Total selling space”) SKUs structure by categories® by brands34) i Stilland I Beer sparkling 12% . LMst0ts on I Soft drinks 965
Slide 30: Solid operational performance illustrated by strong LFL sales growth
Solid operational performance as illustrated by strong double digit LFL sales growth Winelab average ticket? RUB 531 2018 2019 2020 2021 Winelab ticket density Lower density due to # tickets per sqm per day large proportion of immature stores 31 3,0 2018 2019 2020 2021 Source: Company data LfLsales
Slide 31: Well-defined CVP: quality assortment at competitive prices
Well-defined CVP: quality assortment at competitive prices ~ Pfefferer Torres Vina Esmeralda ee BAHJIOB sire Na Im Stilland Im Vodka 22 Alcohol revenue structure RUB Sean in 13% P1,099 P699 by categories, 20200 25bn one Vs P1700) Vs P1,000 I Spirits I Other , 35% 7% Borsao Tres Picos Garnacha Brazin
Slide 32: • Transition from plastic to • Development of • Cooperation with
• • Transition from plastic to • Development of that will allow users to collect points with the purchase and pay with them • Cooperation with , &
Slide 33: Strong store economics
Strong store economics 3 Remaining lease term Ownership structure Lease contract currency ~6 months ~RUB Omn alia alia aaa 1-3 Average breakeven Average CAPEX for 56 “8% . period of typical store opening a new store y ihe) I Stores leased HE 4-5 years 99% 7 41.2% RUB ~| 8 months ~RUB 3m Me ne ° fe)
Slide 34: Store opening step-by-step guidance
Store opening step-by-step guidance Geo BAH NOB eneral premise scoring a a) Initial Location analysis Choosing location from Moscow region and Saint Petersburg Proximity to transport hubs Parking availability Current stores’ location -analysis regarding Risk estimation and selected OA evaluation and
Slide 35: Expanding Winelab's e-commerce
nelab’s e-commerce Expanding V E-com platform with “click & collect” basis Higher e-commerce average ticket 1A.Ak 21.5k S3leus 4,213 Ruz 3,862RvB Website @) worite App ‘Average ticket ‘Average ticket ‘Average ticket in monthly orders monthly orders imstores,2021 nw mobile app,2021 E-commerce platfor
Slide 36: Winelab's mobile app customer journey
Winelab’s mobile app customer journey Online catalogue Mobile basket Personal account Click & Collect Customized recommendations Newarrivals Tracking of availability QR-code search >200k mobile app downloads +1,200 additional SKUs product assortment in online Launching new online services >3,000 num
Slide 37: Winelab operating metrics compared to leading Russian public retailers
Winelab has strong operating metrics when compared to the leading Russian public retailers Sales density, LTM'21 Sales LFL, 1H’21 Gross margin, 1H’21 Store closure rate) qm 5 5 5 RUBm per ths. s 652 15,4% 273% 3,6%
Slide 38: Winelab outstanding financial profile
\Vinelab outstanding financial profile Revenue from retail EBITDA from retail EBITDA (excld. CAPEX) from retail RUB bn RUB br RUB bn Number of stores opened 9 Retail segment Share of retail 37% 38 % EBITDA margin, % 12% . for the period, # intotal revenue, % 3.149% o-——9 9% 10% 9% 216 8% 29% “—~ sow
Slide 39: Industry leading EBITDA margin
Eanes Industry leading EBITDA margin 2020 Cash conversion ratio Sales growth rate 2020 EBITDA growth rate 2020 (IFRS 16) 11,9% 873% 454% 100% Notes: (I) Cash conversion ratio is calculated as (EB!
Slide 40: Experienced management team committed to outperform
Expierenced management team committed to outperform Key team members @ Konstantin Roman Askar Gennadiy lliva Evgeny Rinat Prohorov Izumin Kinzhigaliev Sizih Maksimov Shingarev Shamsiev CEO Deputy CEO Retail Chain E-commerce Commercial Director Marketing Director Information Divisional Director Devel
Slide 41: Strategy overview
STRATEGY OVERVIE
Slide 42: Key components of Beluga Group's strategy
Kkey components of BELUGA GROUP's strategy Further diversification of brand portfolio with focus on high-margin products Benefiting from customer demand shift from vodka into categories with higher margin (eg. wine, whiskey, etc.) Offering wide brands portfolio. Exclusive contracts with major intern
Slide 43: Indicative multi-factor revenue growth opportunities
Indicative multi-factor revenue growth opportunities BELUGA GROUP is planning to double revenue by 2024 by implementing the following key strategic initiatives RUB bn. 05 03 0) Nt Digitalization O2 Continuous Beluga and operational ~| 30 shift to brand global excellence Scommercé expansion” (STN Exp
Slide 44: Digitalization and operational excellence
Digitalization and operational excellence Production process and warehouses automation Snapshot reporting based on software collecting data from the equipment's controllers Adoption of lean manufacturing approach WMS (warehouse management system) and RFID markers Digital planning system Automatic sy
Slide 45: Strategic KPIs
Strategic KPIs OPERATING METRICS, FINANCIAL METRICS 2020 2024 2020 2024 Number of 645 ~2,500 4-year Net revenue - . Winelab stores Focus on Moscow & CAGR 5 20% Saint-Petersburg Share of Retail ~ AED - r een 34% 45% EBITDA margin +2-3 p.p E-commerce share 169 | Net Debt / os in Retail revenue® 10-15%
Slide 46: Focus on sustainable development
BELUGA FOCUS ON SUSTAINABLE DEVELOPMENT
Slide 47: Continuous adherence to high ESG standards
Continuous adherence to high ESG standards 88% 209k Sy fox) industrial waste cubic meters of water Qa &B i) “Be recycled, 2020 consumed, 2020 . . . , ISO 9001:2018, Organic Donations Switch to NNPB®) ed ® ISO 22000:2018, vodka to Ocean technology, HACCP 22000 development in Foundation decreasing bot
Slide 48: Supporting the UN Sustainable Development Goals
High priority SDGs" of BELUGA GROUP Additional selected SDGst) Supporting the UN Sustainable DECENT Wo CoN Development Goals Decent work and 12 rxoun, economic growth snPranuchot = 10,000 employees in BELUGA GROUP * Ensuring opportunities for career development = Transparent, fair and equal terms of
Slide 49: High standards of corporate governance with independent board members
High standards of corporate governance with independent members on the Board of directors ALEXANDER NIKOLAY, MECHETIN BELOKOPYTOV ceo Chairman of the BoD. Founder of BELUGA GROUP CFO SERGEY MIKHAIL MOLCHANOV KASHIRIN Chief Operating Officer Head of Business Development KONSTANTIN OLEG PROKHOROV MEDO
Slide 50: Well-experienced management with strong commitment
Well-experienced management with strong commitment Key team members stay with the company since its inception SQA Qa @ @® @& @ @ } \ } \ } { \ ] \ ] \ ] \ ) \ ] { } { ] { ] Alexander Sergey Nikolay Sergey Dmitry Mikhail Oleg Konstantin Oleg Vladislav Mechetin Molchanov — Belokopytov Kuptsov Erokhin
Slide 51: Shareholder structure and dividend policy
Shareholder structure and dividend policy Shareholder structure? Dividend policy a lm A Mechetin lm Free float In September 2020, the Board of Directors of BELUGA F990 9),0 GROUP approved the Group's new dividend policy, 508 % 24 % which sets out the following key principles: WH Quasi-treasury jj Ma
Slide 52: Outstanding shareholder returns compared to peers
Outstanding shareholder returns compared to peers Total shareholder returns (incl. re-invested dividends), 2019-2022YTD 663% Russian retail & consumer companies : Major international alcohol producers. |__| i 103% UES 57% i 59% 54% 48% 27% 12% i cs GGMATHUT 08238 — Aléugeo Cseroup Qos DIAGEO CAMPART
Slide 53: Appendix
BELUGA Fae a es APPENDIX
Slide 54: Beluga Group transformation history
BELUGA GROUP transformation history Al 9 2015-2021 FB 2008-2014 1999-2007 / Transformation into Establishment Active expansion into a vertically integrated of a leading spirits global spirits market diversified group with expanding producer in Russia and development , 7 with > US$ 1bn of imported br
Slide 55: Golubitskoe Estate: in-house premium wine production
Golubitskoe Estate: in-house premium wine production 2ATna 90O0ha 2.5 mn D0% 1.2mn area in operation additional area bottles per year capacity utilization, in property production capacity 2020 bottles of Golubitskoe Estate wine sold in 2020 Own wine brand portfolio Sa 5 Prodexpo International Wine r
Slide 56: Financial performance summary
Financial performance summary In RUB bn unless stated otherwise 1H 2019 1H 2020 1H 2021 CAGRIO9-21 Total shipment, mn 9L cases 63 72 73 7.9% # of stores 545 622 713 14.4% Financial metrics P&L Net revenue 215 25.6 30.8 19.7% Gross profit 84 92 m1 151% Gross margin 39.1% 358% 36.2% (38%) EBITDA 27 3.
Slide 57: The Group significantly de-levered in the last years
The Group significantly de-levered in the last 3 years Net Debt /LTM EBITDA declined significantly from 3.7x in 1H 2019 to 1.5x in 1H 2021 Cost of borrowing declining as well - 849% pa. in 1H 2021 (vs 8.66% pa. in 2020) Strong cash position enhanced by recent SPO, which raised up| to RUBS.6 bn Inves
Slide 58: White space analysis methodology
Step 1 Determined current average penetration levels of specialized alcohol retail market Step 2 Established general potential penetration levels Step 3 Forecasted potential penetration level for each region Step 4 Excluded ultra-convenience channel Russia's average penetration levels Stores per 1mi