#1NUTRITEK GROUP Investor presentation FY 2006 HYTPHTEK July 2007#2I. Nutritek Group at a Glance NUTRITEK GROUP 2#3Nutritek Group at a Glance ☐ ☐ ☐ The largest national producer of baby food in terms of value in Russia and other CIS countries in 2006 The only Russian producer of special Breast Milk Substitutes ("BMS") and clinical nutrition products The third-largest national dairy producer in Russia by revenue in 2006 One of the fastest growing in the industry: revenue increased by 66% in year ended 31/03/07 Breakdown of sales by products, value, year ended 31/03/07 Purees, juices and 400 300 Nutritek revenues, US$ mln Growth - 16% Growth-66% 379 149 39% 229 197 200 51 26% 68 } 30% 230 61% 100 146 74% 161 70% YE 31/03/05 YE 31/03/06 ■Dairy products Baby food Source: IFRS Financial Statements, converted from RUR YE 31/03/07 Nutritek sales volume, thousand tonnes water Cheese 5% 16% Cereals 250 Growth-1% 8% Dairy baby food 200 191 193 Canned milk 1% 2% 150 BMS and special 100 nutrition Whole milk products 31% 14% Butter and dry milk 23% NUTRITEK GROUP 50 Growth-27% 248 0 YE 31/03/05 YE 31/03/06 YE 31/03/07 Source: Company Source: Company#4Company Structure 100% Corporate structure of PJSC "Nutrinvestholding❞* Marshall Milk Investments Wigo 6.3% 38.3% 100% Matrio 8.0% PJSC "Nutrinvestholding" 100% 50% OJSC "Nutrinvest❞ 50% Nutritek International (BVI) Russian assets International assets 47.4% Free float NUTRITEK GROUP Note: Corporate structure following the completion of the open subscription procedures by existing shareholders and the public 4#5Nutritek's Investment Highlights Leading position in the baby food segment Exposure to fast growing Russian baby food market Full range of baby food products Developed raw milk base Streamlined distribution ■ ■ The largest national producer in Russian baby food market (15.4% market share in 2006 according to Euromonitor) Unique supplier of full range of baby food products in the Russian market Operates one of the most modern baby food plants in Russia, other CIS countries and Eastern Europe Growing consumer incomes in Russia ■ One of the most dynamically growing consumer markets - processed baby food (27% CAGR in 2001-2006 in value terms) The only producer of a full range of baby food products, covering all principal price segments of the market, with exception of the premium price segment Strong brand recognition among local customers in regional areas of Russia Production facilities located in leading milk production regions in Russia Nutritek supports local farms with equipment, quality control technology and financial resources Own agro business reduces the costs and secures regular supply of high quality raw milk Nutritek occupies dominant position as a raw milk purchaser in the regions where its production facilities are located Starting from Jan 1, 2007 Nutritek streamlined its baby food distribution system to increase efficiency and reduce costs All sales to the customers are now executed through distributors via special third-party agreements with distributors and retail chains Government purchases (tenders) Strong and dedicated management team Excellent track ☐ Government purchases are just as profitable as retail sales and in some instances even more profitable Government purchases are expected to grow in the near future Motivated and experienced management team has significant expertise and competence in all aspects of the dairy and baby food markets ◉ Strong track record of growth, profitability and acquisitions record NUTRITEK GROUP ◉ The size of Nutritek, high profitability and its credit history provide for significant advantage against local competitors 5#6II. Market Overview NUTRITEK GROUP CO 6#7☐ ◉ ☐ Sizable Market Opportunity Considerable market size: Baby food US$ 749 mln in 2006 Dairy products - US$ 5.2 bln in 2005 CAGR for baby food in 2001-2006 - 27% in value terms Baby Food growth drivers: - Rising consumer incomes Rising urban population Home made baby food is being replaced by manufactured baby food Increasing offer value-added products Kg. per baby 30 20 20 10 France 40 40 50 60 55 56 Spain Finland Newly updated government demographic policy Source: Euromonitor Baby food market growth, US$ mln 94 100 800 200 90 Value CAGR[1] 2001-2006- 27% 173 82 700 180 151 80 72 160 600 67 70 In '000 tonnes 140 61 60 56 500 50 400 749 40 590 300 US$ mln 120 Kg. p.a. 100 80 £30 60 474 200 20 314 40 226 254 100 20 10 0 0 T 2001 2002 2003 2004 2005 2006 Finland Norway Value (RHS) Volume (LHS) NUTRITEK GROUP Source: Euromonitor Note: [1] denominated in USD Source: Euromonitor Spain Switzerland 36 32 Greece Baby food consumption, 2005 30 26 26 USA 20 20 19 Norway Portugal Poland Dairy consumption, 2005 134 103 100 France USA 92 92 77 66 66 18 12 10 8 Russia Ukraine 51 57 41 36 21 Portugal Greece Czech Rep Bulgaria Russia Ukraine Bulgaria#8Nutritek's Position on the Russian Baby Food and Dairy Market Baby Food Nutritek is the largest national producer of baby food and the only Russian producer of clinical nutrition products Russian baby food market structure by producer (value), 2005 Other 25.6% Nestle 21.7% ☐ Most of the products produced by international players are still imported ☐ Nutritek has the potential to improve its own market position in the baby food market due to: Most complete product range in sector including complex products such as Breast Milk Substitutes ("BMS") Azovsky 4.9% Faustovo 5.9% Lebedyansky 6.9% Nutritek 13.4% Nutricia 21.6% Specialised distribution channels Specialised promotions and marketing strategy Source: Euromonitor Russian baby food market by segment (value), 2005 100% 4% 10% 8% 13% Dairy Products 5% 17% 1% 80% 17% 1% 13% 7% ☐ Nutritek is one of the largest national producers of dairy products 31% 6% 11% 19% 13% 60% Total Nutritek share in the Russian dairy market is 3.9% [1] in value terms 11% 5% 5% 5% 10% 5% 40% 9% 15% ☐ Wide product assortment including yogurts and bio-products 12% 39% 7% 9% 17% Leading dry milk producer [2] (market share - 8.2%) 20% 16% 5% 19% 14% 14% Highly fragmented market with over 1,700 small independent plants in operation 8% 0% Baby drinks (in glass) Dried Baby Food Milk Formula Puree Sources: [1] AC Nielsen for 24 cities [2] Company estimates NUTRITEK GROUP ■Nutritek ■ Hipp ■Lebedyansky Nutricia ■Azovsky ■ Heinz Nestle Faustovo Kolinska Semper Unimilk ■ Other Source: Euromonitor 8#9III. Operational Overview NUTRITEK GROUP 6#10Full Range of Baby Food Products ☐ ☐ Nutritek is the only producer of a full range of baby food products in Russia including breast milk substitutes Besides Nutritek only Nutricia and Nestle have presence in major segments All other players are occupying its own niche Availability of breast milk substitutes that is used from the first days of the babies' life gives the producer significant advantage in creating consumer' loyalty Baby Food Product Portfolio (value), YE 31/03/2007 Source: Company Baby water 1% Cereals 21% Purees 21% Juices 18% Breast milk substitutes and special nutrition 35% Dairy baby food 4% Nutritek Nestle Nutricia Kolinska Hipp Friesland Heinz Frutonyanya Tip-Top Azov Agusha Major producers according to the market segments Baby Special and Clinical BMS Medical Standard Frutek NUTRITEK GROUP Source: Company Cereals Purees Juices Baby Water Dairy Baby Food | | | || 10#11Nutritek product portfolio Baby food Крошк ГРЕЧКА с яблоко Крошка ОВСЯНКА с переком Крошк Крошка 5 Kroshka The brand was developed for the middle price segment and has a wide range of baby food products, such as: cereals, puree, juices Winnie The brand was developed for the lower-middle price segment and has no particular focus on packaging or advertising support Чудесная детская каша Чудесная детская каша Чудесная детская каша CHECK CYRAN Чудесная детская каша «Винни гречневая с гру Чудесная" «Винни» детская каша «Винни» пшеничная с тыквой молочная инев Чудесная «Винни» - детская каша •Винни» пшеничная с яблоком безмолочная злаков «Винни Чудесная" детская каша «Винни» овсяная со сливой молочная таков «Винни» "молочная для детского питания ДЕТСКАЯ ПИТЬЕВАЯ ВОДА Винни HYTPUTER Нутрилак HITPUTER HYEPUTEK 0-6 Нутрилак 0-12 HIIPUTER Нутрилак Нутрилак НА 400 AP 400г HTPUTEK Нутрилак 6-12 Special nutrition and dairy products HYTPUTER Фемила Лактамил HYTPUTEK Femilak & Laktamil Femilak and Laktamil are special nutrition products for pregnant and breastfeeding women that contain calcium, folic acid and other microelements НУТРИЭН OCTEO HYTPUTER НУТРИЭН ПУЛЬМО HYTPUTEK НУТРИЭН ЭЛЕМЕНТАЛЬ HYTPUTEK НУТРИЭН ФТИЗИО NUTRITEK GROUP эн APT ВИННИЯ ВИННИ BHHHH «ВИННИ- ASPHEOC Nutrien Nutrien covers a wide range of enteral nutrition products for patients with serious health deviations www ВОЛОГОДСКОЕ CMETAHA 20% 400г HYTPHAAK AKBA Nutrilak The brand is positioned in the upper middle price segment as the best value proposition for healthy babies and babies with special nutrition needs, such as various forms of allergy, digestive malfunction, etc PEPMAN МОЛОКО коровье натуральное 1,5% ТВОРОГ PEPMANT КЕФИР кефир классический 2,5% 1000 r PEPMANT МОЛОКО 1.5% 1000 1 Farm Nº1 The brand was developed for the middle segment of dairy market and has a very colorful packaging design. The product line covers wide range of dairy products, such as milk, sour cream, butter, etc 11#12Strong Production Platform PTK Severnoe Moloko (Vologda region) Specialization: whole milk products, bio- products, fermented milk and dry milk Nutritek-Agro-Vologda (Vologda region) ■Live stock population Company Nutritek (Istra, Moscow region) O Specialization: breast milk substitutes and special nutrition Agro Piim (Estonia) ■Live stock population Estmilk (Estonia) Specialization: breast milk substitutes, special nutrition, whole milk products Moloko (Belgorod region) Specialization: dry milk and " butter Moscow Zelenodolsky MK (Tatarstan) Specialization: whole milk products, specializing in bio-products and baby food Yaroslavl warehouse ■ Area: 10,283 sq m Domodedovo warehouse ■ Area: 3,800 sq m ور Sibaykonservmoloko (Bashkortostan) Specialization! breast milk substitutes, cereals and special nutrition Khorolsky MKK (Ukraine) Specialization: breast milk substitutes and whole milk products KZ Dinskoy (Krasnodar region) Specialization: purees and juices MKK Penzensky (Penza region) Specialization: whole milk products, specializing in bio-products, cheese and dry milk Biysky Maslosyrkombinat (Altay region) Specialization: hard and soft cheese and whole milk products Filimonovsky MKK (Krasnoyarsk region) Specialization: whole milk products, dry milk, canned milk NUTRITEK GROUP Warehouses Baby food plants Dairy plants Mixed plants Agro holdings Corporate center 12#13Distribution Coverage Nutritek products are sold national wide covering all regions of Russia, major CIS countries and Baltic Countries Breakdown of sales by geography, value, YE 31/03/07 EU 4% Kaliningrad Latvia Estonia Center 17% Tallinn Lithuania Riga St Petersburg Belarus Ovinitus Petrozavodsk Ukraine Moldova Kiev Chisinau O Minsk Center Smolensk Tver ● Odessa Moscow Bryansk ●Kaluga ● Lipetsk Voronezh Rostov-on-Don Arkhangels Vologda Yaroslavl Northwest 12% Kostroma Syktyvkar Nizhni Novgorod ● Norilsk Perm Izhevsk Ural 15% Ekaterinburg Saransk Penza Saratov ⚫ Kirov Cheboksary Kazan Ulyanovsk Samara Volgograd Astrakhan Uta Volga 18% Chelyabinsk • Tumen CIS 15% Krasnodar ⚫ South ⚫ Stavropol Georgia. Tbilisi O Erevan Armenia Azerbaijan 3% ●Makhachkala Baku Uzbekistan Turkmenistan Ashkhabad NUTRITEK GROUP Source: Company Kostanai Kazakhstan Siberia 14% Omsk Novosibirsk ⚫ Krasnoyarsk O Tashkent Alma Ata Far East 2% Yakytsk O Petropavlovsk- Kamchatski Khabarovsk Yuzhno-Sakhalinsk O Blagoveshchensk Irkytsk Chita Ulan-Ude Vladivostok 13#14Baby Food and Dairy Distribution ~90% Sales through distributors Baby food distribution Nutritek Group Dairy distribution Nutritek group ~10% ~50% ~19% Tender sales Direct Sales* Wholesale dry milk and butter ~31% Wholesale WMP and cheese Baby food products are sold through specialized distributors to better serve the market needs and tender programmers ■ Most of baby food products are sold under special three sided agreements among Nutritek, distributor and retail chain ■ More then 80 specialized on baby products distributors covering all regions ■ Local distributors provide effective market penetration in the regions Tender sales account for ca. 10% of the total baby food sales and ca. 25% of breast milk substitutes sales ■ Essential part of tender sales is represented by Breast Milk Substitutes and cereals accounting for ca. 90% and 9% respectively Nutritek sells its products through two main sales channels: direct sales and wholesale Direct sales account for ca. 50% of the total dairy sales and include retail sales (ca. 32% of total dairy sales) and sales to processors (ca. 18% of total dairy sales) Whole milk products are mostly sold directly through retail Most of dry milk is sold to processors and used for whole milk products production Butter as well as cheese and canned milk products are mostly sold to wholesales NUTRITEK GROUP Note: the share of direct sales for commodity products (dry milk and butter) is below 10-20% 14#15IV. Strategy NUTRITEK GROUP 15#16Business growth strategy - Organic Growth – leveraging strong competitive advantages to outpace market and increase margins on a rapidly expanding and lucrative baby food market Leverage wide production platform to expand margins Increase volumes and margins through expanding Brand and Product Portfolio Baby Food Capturing new routes to market and higher quality "push" via a newly introduced Distribution System Dairy Agro Business NUTRITEK GROUP Capitalise on and grow the existing dominance in the strategically important Government purchases programmes M&A - careful review of potential opportunities for strategic acquisitions in the CIS, with clear investment strategy, financial resources and strong integration experience in place Capture new volumes and expand margins in a rapidly developing and unsaturated segment of organic products Shift product mix towards more value-added and higher margin offering of enriched, bio and fermented milk products Increase market share in the traditional dairy segment at the expense of small regional players Leverage regional presence to increase volumes at the expense of decreasing consumption of unpackaged dairy products Secure raw milk base 16#17Strategy: International Expansion Expand geographical coverage of the business by entering new markets, in particular those of China and countries of South-Eastern Asia The Group has regional headquarters in Singapore to manage operations in South- eastern Asia and act as marketing and distribution centre for Group's products in the region Population of China and South-East Asia, 2006 Start production of dry milk, BMS, dried baby food, baby juices and purees at the two joint venture production facilities in China November 2006: MOU with two Chinese plants for establishment of joint ventures in baby food and dairy industries were signed January 2007: MOU with government of a Chinese province where Group plans to establish a JV Leverage New Zealand Dairy raw milk supplies for production of baby food to be sold in China and South-Eastern Asia Nutritek already holds a minority stake in newly-built New Zealand dairy plant - New Zealand Dairies Ltd Supply contract for procurement of ordinary and vitaminised dry milk and base formula for Grow-up milk signed with New Zealand Dairies Ltd China 1,308 Myanmar 51 Laos 6 Leverage "Future Nutrition" ** brand recognised in China and Chinese-speaking communities to market products locally New Zealand NUTRITEK GROUP Investment targets Source: Euromonitor Vietnam Thailand 84 63 Cambodia 15 Philippines 86 Malaysia 27 Singapore 4 Indonesia 227 17#18V. Financial Highlights NUTRITEK GROUP 18#19Financial Highlights - Revenue Year ended 31/03/06 vs. Year ended 31/03/07: ■ Total revenue - 66% growth in US$ terms 400 ◉ Baby Food revenue - 119% growth in US$ terms 350 ◉ Dairy revenue -33% growth in US$ terms 300 Revenue, US$ mln Growth - 66% 379 149 39% Drivers for growth: 250 Growth - 16% 229* ☐ ■ Organic growth and M&A activity 197* 200 68 23% Average price increase 51 19% 150 - Shift of the Group's product mix towards higher 230 value-added and higher-margin products 61% 100 81% 146 161 77% - Overall inflation in Russia 50 50 NUTRITEK GROUP YE 31/03/05 YE 31/03/06 YE 31/03/07 ■ Dairy products ■ Baby food Source: IFRS Financial Statements, converted from RUR 19#20Financial Highlights Gross profit and margin (¹), Baby Food 50 Growth-125% 50% Growth -42% 45% 36.6% 37.5% 40% 30 34.1% 55.8 35% Year ended 31/03/06 vs. Year ended 31/03/07: Group gross profit(1) - 88.4% growth in US$ terms Group gross margin (1) - growth from 23.5% to 26.8% EBITDA 100% growth in US$ terms EBITDA margin - growth from 14.9% to 18.1% Drivers for growth: Increase of Baby Food segment share in the total Group's revenues ■ Overall shift of the Group's product mix towards higher- margin products EBITDA and EBITDA margin 70 60 281420 24.8 10 17.5 0 YE 31/03/05 YE 31/03/06 YE 31/03/07 30% 25% Source: IFRS Financial Statements, converted from RUR, Company Gross profit and margin (1), Dairy 60 70 760 50 Growth-15% 40 30 15.0% 20 34.2 29.7 10 0 Growth - 100% 20% 70 19% 60 18.1% Growth - 58% 25% 18% 50 Growth-30% 19.9% 17% 20% 40 18.1% 68.5 16% 14.9% 30 15.3% 15% 20 45.9 14% 15% 29.1 13% 10 22.4 12% 0+ YE 31/03/06 YE 31/03/05 Note: (1) Includes Depreciation and Amortisation NUTRITEK Source: IFRS Financial Statements, converted from RUR GROUP YE 31/03/07 10% YE 31/03/05 YE 31/03/06 YE 31/03/07 Source: IFRS Financial Statements, converted from RUR, Company 20 20#21Summary Income Statement Revenue Cost of sales Gross profit before D&A Gross margin before D&A SG&A D&A EBIT Income tax Net profit Net margin EBITDA* EBITDA margin YE 31/03/2005 YE 31/03/2006 YE 31/03/2007 197.5 229.2 378.9 -157.5 -175.3 -277.3 39.9 53.9 101.7 20.2% 23.5% 26.8% -10.5 -19.7 -33.2 -10.2 -13.7 -29.2 17.3 7.1 29.4 -1.8 -0.8 -7.2 15.5 6.2 22.2 7.8% 2.7% 5.8% 29.4 14.9% 34.2 68.5 14.9% 18.1% * EBITDA represents net income before income tax, minority interest, non-operating income (expense), interest expense, depreciation and amortisation Source: IFRS Financial Statements, converted from RUR NUTRITEK GROUP 21#22Debt Analysis mln. US$ Short-term loans CLN Secured bank loans Unsecured bank loans Promissary notes Total short-term loans Long-term loans Rouble bonds YE 31/03/2007 100.0 10.9 17.5 13.3 141.7 46.1 Total long-term loans 46.1 Total short and long-term loans 187.8 Cash and cash equivalents 16.8 Source: Company 200 150 100 սլա $ՏՈ 50 Term structure of debt, 31 March 2007 24.6% 75.4% ■Under 1 year ■1-5 years Source: Company Total Net debt/EBITDA 50 50 1.7x 7 171 6 135 5 3.9x 4 2.5x 3 2 10 0 + + 1 31.03.2005 31.03.2006 31.03.2007 Total Debt - Total Debt/EBITDA (RHS) NUTRITEK GROUP Sources: IFRS Financial Statements, converted from RUR 22 22#23Q&A NUTRITEK GROUP NUTRITEK GROUP HYTPHTEK 23 23