Hartwall/BBH Full Year Results for 2002 20 February, 2003

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Hartwall/BBH Full Year Results for 200220
February, 2003
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Running order

• Hartwall
• Baltic Beverages Holding (BBH)
• Outlook for 2003

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• 2002 demonstrates strength of Finnish business.
• Volume 4.2m Hl 2.2
• Net Sales 339.3m 6.6
• EBITDA 60.3m 14.4
• Op. Profit 26.5m 13.6
• EBITDA margin 17.8 1.2 points
• Op margin 7.8 0.5
  points
• Favourable summer weather buoyed market
• Beverage market leadership maintained 45
• Lahti production facility largely completed

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Baltic Beverages HoldingFull Year results 2002
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BBH Strong trend in sales and profit growth

• m (USD)
• Sales 1237 27 (33)
• EBITDA 413 20 (26) Operating Profit
  324 17 (23)
• Net Profit 155 2 (6)

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BBH 22 Volume Growth in 2002 ( 5.3m Hl)
2,911
22
2,384
1,829
1,278
Russia
913
618

318
202
151
75
14
33
Volume in million litres
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BBH Russia22 volume growth extends leadership

• Market volumes 69.5m Hl 9
• BBH beer volumes 22.8m Hl 22
• BBH market share 32.8 4.2 points

4.2
total BBH volumes inc export 23.3 mHl
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BBH RussiaVolume evolution explained

• Consistent and strong absolute growth
• 2001 BBH beer volumes 4.5m Hl
• 2002 BBH beer volumes 4.4m Hl

BBH beer volume growth Q1 Q2 Q3 Q4 FY 2001
26 26 44 34 33 2002 44 37 19 7 22
Extraordinary growth due to weather
Baltika can growth boosted second half of 2001
and first half of 2002
Baltika distribution changes
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BBH RussiaBrand leadership extended

• Market share () 2002 2001
• No.1 Baltika 13.1 12.3
• No.3 Arsenalnoye 5.5 4.5
• No.5 YarPivo 4.0 3.2

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BBH Russian Market Structure
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BBH RussiaPrice

• c15 price rises achieved
• Clear divisions between sectors
• BBH over achieves in value
• Brand
• Pack format
• Business system

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BBH Baltic Countries21 volume growth extends
leadership

• Market volumes 5.0m Hl 18
• BBH beer volumes 2.3m Hl 20
• BBH market share 46 1 point
• Strong volume growth
• 67 litres per capita consumption
• BBH re-structuring to enhance leadership in
  Baltic region

total BBH volumes 2.6m Hl
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BBH UkraineMarket Share and Volume growth

• Market volumes 13.7m Hl 14
• BBH beer volumes 2.8m Hl 27
• BBH market share 20 2 points
• Volume growth led by PET sector
• Low but rising consumption (28 litres per capita)
• Key brands strengthened positions
• Slavutich and Lvivske
• Slavutich retains price premium
• Capacity enhancement underway.

total BBH volumes 3.2m Hl
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BBH margin evolution

• 2002 2001
• EBIT margin 26.2 28.4 -2.2
  points
• EBITDA margin 33.4 35.2 -1.8 points
• Increased marketing costs
• Brand building
• Mix evolution
• Can costs
• Strong Euro

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BBH outlook for 2003 Beer markets with enormous
potential

• Rising per capita consumption from a low base
• Rising consumer prosperity
• Beer has low share of alcohol consumption (lt25)
• Improving quality of supply

Litres per capita per annum
Source BBH, Plato Logic, October 2002
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BBH outlook for 2003

• General market
• Strong beer market fundamentals
• Good economic growth forecast
• Less testing comparatives in second half
• gt F/cast for Russia c.10 growth for the year
• BBH to grow ahead of market
• Brand strength
• Proven business system
• Capacity expansion
• c 5mHl (across Russia)
• Baltika distribution changes complete
• Opportunities in Ukraine and Kazakstan

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Supplementary Slides
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Baltic Beverages Holding
BBH Area of operation
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BBH Structure at end 2002
ScottishNewcastle plc
Carlsberg A/S
Orkla ASA
60
100
40
Oyj Hartwall Abp
Carlsberg Breweries A/S
50
50
BBH AB
BALTICS
UKRAINE
RUSSIA
KAZAKHSTAN

• Baltika Group (74)
• St. Petersburg
• Tula
• Rostov-Na-Don
• Samara
• Yarpivo (60)
• Zolotoy Ural (75)
• Pikra (68)
• Vena (49,9)
• Voronezh (78)

• Estonia Saku (75)
• Latvia Aldaris (75)
• Lithuania Svyturys Utenos Alus
• (76)
• Utena
• Klaipeda

Slavutich (85) Lvivska Pivovarnia (99) Slavuta
Malt House (88)
Irbis (76)
BBHs ownership structure 31 January 2003
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BBH beer market trends
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(No Transcript)
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(No Transcript)
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BBH
BBH
BBH
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BBH Net Sales by Quarter shows seasonality
Million euro
MEUR
99 00 01 02
99 00 01 02
99 00 01 02
99 00 01 02
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BBHStrong Euro vs USD exacerbates Rouble
depreciation
Average rate 2002 2001 change EURRUB 29.64
26.20 13.1 USDRUB 31.53 29.25 7.8
At 31/12/02 2002 2001 change EURRUB 33.11 2
6.26 26.1 USDRUB 31.96 29.81 7.2