Investor Presentaiton
Excise tax environment
□ Three-year excise schedule in place since 2007
□ Average 2008-2010 growth rates at 25-30%
☐ Anticipated tax increase in 2011-13 in the range of 30-40% annually
□ Current excise incidence for Winston is 19% of the retail price
JTi
E
Ad
Valorem,
(% of MRP)
Specific,
(Rub/M)
Minimum
Excise Tax,
Winston Excise
(Rub/ M)
Burden
(Rub/pack)
YOY
increase
2007
5.0%
100
115
3.07
2008
5.5%
120
142
3.72
21.3%
2009
6.0%
150
177
4.74
27.4%
2010
6.5%
205
250
6.21
31.0%
Predictable excise tax environment in Russia supports steady
development of government tax revenue and business
The next tax schedule to 2013 is currently under discussion
(1) MRP: Minimum Retail Price
Source: Russian Ministry of Finance, JTI Estimates
11View entire presentation