Obolon Corporation

Development of Obolon Corporation

Mission of the corporation To create the useful and safe drinks which are caring about the people and responsible for the environment

Values of the corporation • Quality: to focus on the beverages production with high standards of quality and safety

• Professionalism: coordinated and professional labor

• Safety: responsibility for life and health of employees, customers

• Efficiency: significant results of compliance with environmental and industrial safety

• Team spirit: the team like a family, like-minded people who share common values

History of the corporation Key events

1980

1992 1998

2003

2015

1974 – Czech experts have calculated the place of construction site - thanks to large reserves of pure soft water. Depth - 290 m.

The official opening of the plant Obolon. The first poured beer and soft drinks

Obolon is the first private enterprise in the independent Ukraine

Obolon is the first in the industry got quality certificate

Brand Obolon: is recognized as a “Golden Trademark”

1974

Obolon Corporation is: -The largest national producer of beer and soft drinks in Ukraine -The largest employer

Beer

53842

tys dal

thousand decalitres

Softdrinks

16803

tys dal

thousand decalitres

Mineral water

5133

tys dal

thousand decalitres

Low alcohol drinks

2324 т

tys dal

thousand decalitres

2015 Production

Subdivisions

General PJSC "Obolon"

Subsidiaries

SC PJSC "Obolon" "Brewery Zibert" Fastow / Kiev Region.

SC PJSC "Obolon" "Krasylivske" Krasiliv / Khmelnitsky Region

The factory in Alexandria, Kirovograd region.

Companies with corporate rights

PJSC "Okhtyrka Brewery plant". Romney / Sumy Region

JSC «Bershad Industrial Complex" in Bershad, Vinnytsya region

LLC "Agro Obolon" Chemerivtsi, Khmelnytsky region.

.

SC "Sevastopol plant beverages', Crimea (production of soft drinks and kvass)

The malting plant in the Chemerivtsi, Khmelnytsky region.

Separated shops department

PJSC "Dyatkivtsi" in Colomuya, Ivano-Frankivsk region.

Obolon Corporation in Ukraine

PJSC "Okhtyrka Brewery" Beer "Okhtyrske" - production pr.500 thousand dal / year; Soft drinks Malt - own production

DE PJSC "Obolon" “Zibert Brewery" Beer - capacity 23 mln dal / year Kvass Soft drinks

The industrial complex JSC "Obolon" Soft drinks Low alcohol drinks Polymer boxes Recycling PET bottles and production of fasteners, packing tape

DE PJSC "Obolon" "Krasylivske" Soft drinks Low alcohol drinks Mineral and drinking water JSC «Bershad Industrial Complex"

Malt Harvesting of barley Low alcohol drinks

PJSC "Dyatkivtsi" Snacks Acquisition of barley

PJSC "Obolon" Beer – capacity pr. 14 million decaliters / month. Soft drinks Mineral Water Beer pellet

LLC "Agro Obolon" Agricultural production Growing barley, cattle and pigs

JSC "Rokytne Glass Plant" Production of glasses

Activities

Obolon

Corporation

Beer

Soft drinks

Low alcohol drinks

Mineral Water

Fixing-packing tape

PET form. 43 thousand preforms / hour

Growing and processing of grain. The malting plant is able to process 180 thousand tons of barley / year

Seed plant "Obolon Agro" Up to 10 tons of seeds / year For their own needs and partners

Growing winter wheat

Production of snack/crackers "Obolonski"

Production of snack/toast “ Bulba toast"

The main activity

Polymer products

Agricultural production

Beer grains Snacks

Drinks

Drinks

Beer is a priority activity among drinks 69% 7%

21%

3%

Portfolio structure of Obolon company, 2015

Пиво Мінеральна вода Безалкогольні напої Слабоалкогольні напої Beer Softdrinks

Mineral water Low alcohol drinks

Пиво Мінеральна

вода Безалкогольні

напої Слабоалкогольн

і напої

Ринок 194152 183055 109709 7537

Оболонь 53842 5133 16803 2324

0

50000

100000

150000

200000

250000

Tho

usa

nd

dal

Production of drinks, thousand dal 2015

Market Obolon

Beer Mineral water Soft drinks Low alcohol drinks

Drinks. Beer

26%

27%

31%

9% 7%

Shares of beer- companies on the beer market, 10 monthes 2015

Оболонь

САНІНБЕВ

Карлсберг

МПК

Інші

Obolon company is the biggest national producer of beer

Obolon SanInBev Carlsberg MBC Etc

3%

Zhugylivske; 17%

Zibert; 23%

1% 2%

1%

Obolon; 52%

1%

Beer portfolio structure of Obolon company,

2015 Десант

Жигулевское

Зіберт

Регіональне (Охтирське, Фастівске) Злата Прага

Карлинг

Оболонь

Хайк

Desant

Zhugylivske

Zibert

Regional beer

Zlata Praga

Carling

Obolon

Hike

8 trade marks

Premium:

Hike,,

Zlata Praga, Carling,

Beermix

Mainstream:

Zibert, Obolon

Discount:

Desant, Zhugylivske

Drinks. Beer

•TM Obolon is the first beer of the independent Ukraine since 1992 on the market

•TM Obolon is Ukrainian beer №1 in the world

•Belongs to the top 3 favorite brands in Ukrainian

•Artesian water from 105 to 297 m

•Own malt

•Beer production is at one plant in the main PJSC "Obolon", which has the most powerful line in Europe - 14 million hectoliters / year

TM Obolon

characteristics

•Is made on “Zibert brewery " which has unique equipment in Ukraine. There are special tanks that meet the requirements for the production of wheat beer

•Local spring water

TM Zibert

characteristics

Price pyramid

Drinks. Soft drinks

57% 25%

18%

Soft drinks portfolio structure of Obolon company,

2015

Живчик

Ностальгия

Квас

Zhivchik

Nostalgia

Kvass

23%

17%

15%

10%

4%

5%

6%

1%

2%

17%

Shares of the companies on the soft drinks market,

2015 Корпорація Кока Кола

ТОВ "Сандора" Миколаївська обл. (Pepsi)

Корпорація Оболонь

Корпорація Рейнфорд/Малбі

Корпорація Ерлан/Біола

ТОВ "Аквапласт" м. Дніпропетровськ

Корпорація ВВН

ТОВ "Напої плюс"

Корпорація "Росинка"

Інші

Coca cola Corporation

Sandora (Pepsi)

Obolon Corporation

Rainford Corporation

Erlan/Biola Corporation

AquaPlast Ltd

BBH

Drinks plus Ltd

Rosinka Corporation

Etc

Obolon company is the biggest national producer of soft drinks

Drinks. Soft drinks

• Each sold tenth bottle of soft drinks in Ukraine is Zhivchik

• TM Zhivchik is the first and only brand in Ukraine which combines drink with useful properties. Juices with Echinacea extract, rosehip and sea buckthorn influence on the human body better, strengthen immunity, improve metabolism, tone, relieve tension and increase resistance to stress and useful in terms of prevention of accumulation of radionuclides.

• TM Zhivchik contains vitamins E and C, provitamin A, minerals, antioxidants, beta carotene.

• TM Zhivchik is issued on four corporate enterprises, each of them has its own artesian wells.

TM Zhivchik

characteristics

TM Starokuevskiy

kvass

characteristics

Mainstream plus:

Zhuvchik, Kvass

Mainstream:

Sitro, Limonad, Lime,

Cola Nova

Discount

Price Pyramid

- Live fermentation product

- It is made by classical technology according to the kvass production process. It begins with the germination of barley and rye for malt. The kvass ‘s components are only natural products. They are crystal clear water, barley and rye malt, yeast and sugar

Drinks. Mineral water

Obolon company proposes a wide range of the mineral water

64%

19%

8%

6% 1% 1% 1% 0%

Mineral water portfolio structure of Obolon company, 2015

ОБОЛОНСЬКА

ПРОЗОРА

PRIVATE LABEL

ОХТИРСЬКА

Севастопольська

ЗБРУЧАНСЬКА

ПІДГІРНА

АКВАБАЛАНС

Obolonska

Prozora

Private label

Ohturska

Sevastopilska

Zbruchanska

Pidgirna

Aquabalance

3%

32%

3%

2%

10%

50%

Shares of the companies on the mineral water market,

2015

Оболонь

ІДС

Біола

Кока-Кола

Галс

Інші

Obolon

IDS

Biola

Coca Cola

Gals

Etc

Drinks. Mineral water

• The mineral water portfolio includes drinking water and medical-drinking water , which are extracted from deep water deposits and bottled with modern equipment in compliance with health standards.

• TM Obolon ska is the mineral water with the highest quality, suitable both for consumption and coocking. The line of the TM Obolonska includes mineral water "Obolonska", "Obolonska-2", “Obolonska plus a lemon”, “non-carbonated Obolon-2”, and " Obolon plus orange and lemon. "

• TM Prozora is an artesian drinking water with the highest quality, environmentally friendly. It is extracted from the well deeper than 100 meters, which is located in a green corner of Podillya. Prozora has balanced components, combines taste and freshness and purity of spring water and melt water structure. The line of the TM Prozora consists of mineral water “Prozora", “non-carbonated Prozora “, “Prozora with green tea and peach”.

Mineral water

Characteristics Premium

Mainstream:

Obolonska, Prozora,

Zbruchanska 77

Discount:

Aquabalance, Ohturska

Price pyramid

Drinks. Low alcohol drinks

31%

62%

3% 4%

Shares of the companies on the low alcoholic market, 2015

Оболонь

ТОВ "НОВІ НАПОЇ"

КП "POCИHKA" М.КИЇВ

Інші

Obolon company has created the market of low alcohol drinks due to the producing of the classical

drinks – Gin-Tonic, Rom-Cola, Brendy-Cola. The additional popular drinks are Vodka-Lime, Visky-Cola 96%

2% 1% 1%

Structure of Obolon’s low alcoholic drinks portfolio, 2015

КЛАСИКА САН

PRIVATE LABEL

КОКТЕЙЛІ РІО

Move On

АЙСЛАЙФ

Classical Private Coctails Rio Move on Ice-Life

Obolon New Drinks Ltd Rosinka Etc

Drinks. Low alcoholic drinks

• Drinks are based on gin, brendy, rum, vodka, visky. They are world classical drinks. Our drinks are very popular among the consumers

Alcoholic drinks

Characteristics Premium

Mainstream:

Classical drinks

Discount:

Price pyramid

• The new liquors Villa Bianka of 20% alcohol content and cocktail taste were launched recently

Beer grains/sparging

Index Wetness

crude protein

crude fiber

crude ash

crude oil

Unit

%

Norm 10,0

24,0-27,0

16,0

5,0-6,0

4,0-8,0

The majority of brewing waste (grains, pellet, malt sprouts and yeast) is traditionally used in agriculture.

Beer grains are natural, environmentally friendly product with high protein content, alternative of the different types of animal feed and food additives. Formed after the filtering of beer wort during the brewing. Most grains are used as animal feed quality, as is natural, environmentally friendly and biologically active products without chemical additives

For reducing the impact on the environment in 2008 Obolon company the first in Ukraine has applied a dryer beer sparging technology. Expiration date of dry (granular) form is about 6 months, allowing for the delivery of the product without territorial restrictions.

.

Polymer products Fixing-packing tape

Obolon company treats responsibly to their existing manufacturing waste from its production. By 2014 the company has processed 10 tons of PET bottles (waste); produced 755 tons banding

Since 2008, the company has been developing the plant of the polymer products proccessing - especially PET bottles. The company was the first in Ukraine began recycling PET bottles. Long-term program "Eco Obolon“ was launched.

Production of PET tapes for: - Strapping products pallets - In woodworking, metallurgy, building, etc. - The largest buyers are Company "KEN-PAK" PE "Elektrospetstorhmontazh", JSC "Tripolye Packaging", JSC "Rokytne Glass Plant", LLC "Alpi-cue" and others

The processing plant in Olexandria

•Capacity of 60 thousand tons / month

•German equipment of the company REIMOTEC

The properties of tape

•High tensile strength (1000 kg)

•High flexibility (technological memory)

•No rust

•Price is 20-30% less than the belt

•Resistant to temperatures from -40 to +90 g

•Safety

Obolon company is the largest and only producer of the tape in Ukraine.

Obolon is the leader among Ukrainian brewing companies who uses the technology of recycling waste.

Polymer products Fixing-packing tape

The processing plant in Olexandria

•Capacity of 43 thousand bottles/hour

•Equipment of the company Husky (is a world leader in industrial equipment)

The properties of preform

•Ecological PET Preform PCO 1881 standard

•Weight 31,7 gr

•Preforms capacity of 1 liter is available in the following colors: dark green, light green, blue, brown and transparent

In Ukraine PET bottle has appeared in 1995 due to Obolon corporation who first started the production of beer in this convenient packaging. PET-bottle quickly gained popularity among producers and consumers through affordable price, durability, light weight and convenience during the transportation and using . Today PET is a leader in the beverage consumption in that type of packaging.

With the launch of own preforms production Obolon was the only company in Ukraine who created full cycle production - from the production of billet to the processing of PET bottles and making banding recycled.

51

212

214

154

0 50 100 150 200 250

жовт-груд. 2012

2013

2014

2015

Production of preforms, mln

October-december

Agricultural production. Malt

Obolon company is the only brewery in Ukraine which has its own malt plant. The construction of the malt plant was completed in 2008. The volume of investments amounted to $ 100 million.

Obolon corporation has additional part in the structure. It is the malting plant "Obolon Agro". This plant is engaged in growing and breeding of the seed of brewery barley (is processed 11,121 hectares of land in Chemerovetsky and Horodok Districts of Khmelnitsky region and in Novoselytsia district of Chernivtsi region.

The unique technology is used on the Obolon production. In particular, the only in Ukraine round-type beds for growing malt is installed in Chemerivtsi Also plant demonstrates the best performance in the industry for saving resources. Experts of European companies developed and introduced many technological innovations. For example, the system uses dry barley transportation instead of water, significantly reducing water consumption. In the drying compartment recovery of hot air is made, which saves heat and therefore gas

The most advanced wastewater treatment system is unique in Europe. In the bioreactor closed type water is cleaned of dirt by using microorganisms, and then passes through the membrane and UV filters. Thus, clean water output obtained that meets all indicators GOST drinking water. In the future the plant plans to introduce re-use of treated wastewater in industrial processes to 75%.

Agricultural production. Malt

Index

• Wetness

• Extractness

• Time of the sugarness

• General protein

Unit

• %

• %

• Min

• %

Lower limit

• 4,0

• 79,0

• 10

• 9,5

Normal

• 4,5

• 80,5

• 15

Upper limit

• 5,0

• -

• 20

• 12,5

The high quality of malt attracts not only local manufacturers but also European companies. We export our malt to Georgia,

Moldova, Vietnam, Azerbaijan, Poland, Armenia.

The malting plant in Chemerivtsi

•Capacity 120 thousand tons of malt /year

•Processing capacity 180 thousand tons of barley /year

•The most modern equiped company

•The export programme on malt

The characteristics of malt

• malt of Pilsner type

•European high-quality barley

•GOST 4282:2004

Snacks

The plant in Kolomuya, PJSC "Dyatkivtsi"

• Investments were directed to reconstruction of the technology base and to industrial buildings

Crackers "Obolonskie“ (rye-wheat)

• Taste: Barbecue, red caviar, jelly with horseradish, bacon

• Packing: 35 grams, 90 grams.

Toast «Bulba toast»

• Taste: Barbecue, smoked sausages, jelly with horseradish.

• Packaging: : 35grams, 80 grams

Crackers are made with sweet wheat and rye wheat bread, aromatic oils and natural aromas. The original taste and high quality are achieved through the use of selected raw materials. Crackers "Obolonskie" with traditional flavors are perfect complement to beer.

We make toast with fresh rye wheat bread, is chopped by big pieces that are fried with the addition of aromatic spices . Toast with rich flavor is a harmonious addition to beer with this technology.

Obolon Company develops the new markets actively by declaring himself in the snacks market. In future it is planned to active development category - bread snacks.

Export

Obolon company is the only Ukrainian brewery corporation, which belongs to the 30 largest brewing groups in the world. Self paving the way to Western markets Obolon company first began to export the beer abroad in the former Soviet Union. More than 40 countries on 5 continents know the unique taste of Ukrainian traditions prepared by Obolon.