Page 1

Purcari Wineries Plc

Corporate Presentation

Strictly Private & Confidential

January, 2018

Page 2

Disclaimer

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Page 3

Purcari Wineries at a glance

30% is owned by investment vehicle Amboselt out of which 83.5% is owned by Victor Bostan

Source: Company Information, FAOSTAT, OIV, Decanter, the Ministry of Finance of Romania, Nielsen

Founded in 1827 by French colonists, Purcari group is now...

4 brands, covering a broad spectrum of segments

Leading wine player in Romania and the CEE...

Located in a region with one of the richest wine heritages

Top 10 European countries by area under vines, kha

… with a strong & expanding regional footprint

Geographical breakdown of sales in value terms, 9M 2017, %

#1awarded CEE winery of the year in 2015-2016 at Decanter

London, “wine Olympics”

premium wine brand in Romania, Moldova

fastest growing large winery in Romania

largest exporter of wine from Moldova

1,060 hectares of prime vineyards, top production assets

Reputable shareholders: Horizon Capital - 64%, CEO Victor

Bostan - 30%1, IFC - 6%

#1

#1

#1

top

top

35% 26% 12% 7% 12%4%

4%

MD CZ+SKPL Asia UA OtherRO

192

140

975

789690

332221

110 102 66 63 62

ES FR IT RO+MD PT GR DE BG RU HU

#1 CEE #4 Europe

Page 4

Our journey so far

Purcari grew business organically and via acquisitions, successfully adjusting to macro

headwinds, refocusing away from reliance on CIS to CEERevenue of

Purcari Group

2016

2014

2012

2010

2008

2006

2004

Macro context Acquisitions

▪ Acquisition of Bostavan, 1st

asset in Moldova

▪ Acquisition of Purcari winery

▪ Acquisition of Crama Ceptura,

1st asset in Romania

▪ Acquisition of Bardar, 1st brandy

asset

▪ Profit sharing deal on

vineyards in Romania (taken

under operation)1

▪ 1st Russian embargo, Group

loses ~80% of business

▪ 2nd Russian embargo, Group

loses ~17% of business

▪ Ukraine conflict, devaluations

across CIS; CIS share of sales

down to ~10%

▪ Strong economic growth across

CEE, especially Romania

▪ Global financial crisis

107m

2017

Organic growth

▪ Focus on Moldovan exports to

Russia

▪ IFC invests into the company

▪ Horizon Capital invests into the

company

▪ Strategy shift to CEE, away

from Russia; Romania defined

as key growth market

▪ Relaunch of all 4 core brands,

marketing shake-up

▪ Start of push into brandy,

sparkling

▪ Foundation of Group

Evo

luti

on

of

Pu

rca

ri G

rou

p

Sales’10-16, RON

▪ 9M 2017: Sales up 35% and

EBITDA 29% yoy

Note: Revenue for 2014 – 2016: IFRS financial statement issued in RON; Revenue for 2010 – 2013: IFRS financial statements issued in USD; 1 - now 164ha, taken under joint operation (130ha) and direct

lease (34ha); 2 – revenue growth for 9M17 vs. 9M16; Source: Company data

60m

71m

63m

66m

45m

48m

+35%2

Page 5

Business model built at the intersection of three themes

Modern,

cost-competitive

winemaking

Affordable

Luxury

Differentiated

marketing

Purcari is positioned at the

intersections of three themes:

▪ Modern winemaking: the

company is brand, as opposed

to appellation centric and runs a

cost-efficient business

▪ Affordable luxury: as an

aspirational brand, Purcari

wines are an example of

affordable luxury, building on a

heritage dating back to 1827

and ranking among most

awarded wineries in Europe

▪ Differentiated marketing: the

company is not afraid to be

quirky about the way it

approaches marketing,

prioritizing digital channels and

focusing on engaging content as

opposed to traditional

advertising

Page 6

Circa 1,060 ha of prime vineyards under operation

Purcari

▪ Location: Purcari region (high

bank of Nistru River, 65km

from the Black Sea) – a

reputable vine region in

Moldova due to its unique

microclimate and soil

▪ Area: 265ha

▪ Weather: The vineyards are

oriented South to South West

to guarantee highest number

of sun hours

▪ Soil: black earth carbonate,

colluvial soils

▪ Age of vines: 10-13 years

Crama Ceptura

▪ Location: Valea Calugareasca

(Slopes of Carpathian

mountains), in Dealu Mare

area, among most famous

wine regions in Romania

▪ Area: 164ha covering

fragmented individual plots

within 15 to 40km (1)

▪ Weather: Region is praised for

having 14 days more sunshine

than country average, favoring

rich high quality grape crops

▪ Soil: reddish brown forest soils

▪ Age of vines: 80ha of 8-10

years and 84ha of 20-30 years

Alexandru Ioan Cuza

▪ Location: AI Cuza, Valul lui

Traian region

▪ Area: 555ha

▪ Weather: hot and dry

conditions ideal for rich red

wines;

▪ Soil: ordinary black, black

earth carbonate, alluvial

meadow-chernozem soils

▪ Age of vines: 10-13 years

Onesti

▪ Location: Codri Area,

considered the heart of white

grapes wines)

▪ Area: 76ha

▪ Weather: cooler temperatures

favorable for high quality

whites

▪ Soil: 25% of the territory

covered by oak and lime

forests and landscape

fragmented by many small

rivers and valleys

▪ Age of vines: 12-13 years

Note: (1) VieVin, the company whose 164ha of vineyards in Ceptura are leased / jointly operated, is currently undergoing reorganization

14 3

Page 7

Unique, highly diverse terroir, matched to individual grape types

Note: (1) VieVin, the company whose 164ha of vineyards in Ceptura are leased / jointly operated, is currently undergoing reorganization

Page 8

State of the art technological equipment and winemaking know-how

Preparation

Harvesting

Fermentation

Filtering

Blending

Storing

Source: Company information

▪ Vineyards located in close proximity to processing + use of modern efficient

New Holland machinery = delivery of harvested grapes within 2 hours to

processing facilities which preserves natural qualities of grapes

▪ Hand-harvesting + use of small boxes, to prevent oxidation in transit

▪ The cooling of whites before processing increases aroma, in particular for

aromatic grapes, like Sauvignon Blanc or Feteasca Alba

▪ Thermovinification for red wines – moderately heating up grapes prior to

fermentation for greater color and tannin extraction

▪ Modern tanks allow for controlled and closely monitored vinification process

which creates rich fruity wines, without extracting excessive alcohol from

wine bases, matching latest customer preferences

▪ Use of membrane filtering under nitrogen to provide microbial stability along

with clarity of wine. Nitrogen minimizes the levels of oxygen present,

preserving flavors and significantly improving shelf life

▪ Micro-oxygenation introduces oxygen into wine base in a controlled manner,

adding to roundness and balance of wines

▪ Storage for reds in Seguin Moreau oak barrels in air-conditioned environment

to ensure right temperature and humidity level

▪ Inspection, tasting, and laboratory tests of wine base before and after

aging in oak barrels.

▪ Blending on different various varieties to create unique blends and ensure

consistency of wine character across vintages

Key interventions to ensure superior quality of Group’s wines

Page 9Source: Company Information

Purcari brand is part of the popular culture, a true icon

Known as the brand with a long

standing tradition of shipments to

Royal courts

With a cosmopolitan image; here showcased by John Kerry,

the US State Secretary; but also featured in the very popular

Black Butler comics (Kuroshitsuji manga), in Japan

Wine with an attitude, taking

position on key societal issues

Page 10

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regionsRose de Purcari,

90 points by

Wine Enthusiast,

#1 premium Rosé in

Romania2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Page 11

Population

# mnGDP

EURmn

Favorable macro fuels growth in our key regions

0.3%

3.5%3.1%

4.0%

4.6%

5.7%

4.4%4.1%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2008-12 2013 2014 2015 2016 2017e 2018f 2018f

Romania Czech Republic Poland Slovakia EU28

38.0

19.6

10.6

5.4

Poland Romania Czech Republic Slovakia

424.3

176.6 169.6

81.0

Poland CzechRepublic

Romania Slovakia

Source: Eurostat, 2017 data Source: Eurostat, 2016 data

Source: European Commission – European Economic Forecast – Autumn 2017, Eurostat Newsrelease 8 June 2017

#1 yoy real GDP

growth in the EU5.0%

4.5% 4.4% 4.2% 3.9% 3.9% 3.8% 3.7%3.1% 2.8%

1.8%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%#1 GDP per capita % yoy growth 2018f in the EU

Source: Eurostat, Focus Economics

3Q 2017 yoy

vs.

6.0%

2.4%

Source: National Bank of Romania

#1

…with strong above average growth and positive outlook….

5.0%

4.7%

3.3%

Sizeable CEE economies…

2016Population

(mn.)

Real GDP %

YoY

Unemployment

rate

GDP / capita

(EUR)

Moldova 3.6 4.1% 3.8% 1,622

Ukraine 42.5 2.3% 9.3% 1,831

China 1,383 6.7% 4.0% 6,856

1

Page 12

Supportive momentum for consumption; good business climate

0.50% 0.40%1.00% 1.20%

0%0.90% 1.00%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2013 2014 2015 2016 2017e 2018f 2019f

Romania Czech Rep. Poland Slovakia EU

Highest Growths in Real Compensation of Employees(1) (yoy %)

Growing Private Consumption above EU levels (yoy %)

-0.1%

1.2%

2.1% 2.4%2.0% 1.8% 1.6%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2013 2014 2015 2016 2017e 2018f 2019f

Romania Bulgaria Hungary Czech Rep. Poland Slovakia EU

Source: European Commission – European Economic Forecast – Spring 2017, Eurostat

Source: European Commission – European Economic Forecast – Autumn 2017

(1) Total remuneration incl. wages & salaries, social contributions; deflated by price deflator of private consumption

Declining Unemployment Rates Below EU Levels

10.90%10.20%

9.40%

8.60%

8%7.30%

7.00%

2.5%

4.0%

5.5%

7.0%

8.5%

10.0%

11.5%

13.0%

14.5%

2013 2014 2015 2016 2017e 2018f 2019f

Romania Czech Rep. Poland Slovakia EU 28

Source: European Commission – European Economic Forecast – Autumn 2017, Eurostat

Key markets score well in Ease of Doing Business Ranking

Rank in Ease of Doing Business, 2017

1

103

4447

45

145

7675

30

76

27

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

100

60

20

40

80

120

140

160

Poland

Czech Republic

Moldova

Romania

Ukraine

Page 13

Sizeable, growing wine sector across the CEE markets

1) Sales of Still Red Wine by Price Segment: Off-trade Volume – Top 2 price brackets (RON 30+; PLN 24+; CZK 130+; EUR 8+; UAH 70+)

Source: Euromonitor

Market volume,

2016 [m liters]

Market value,

2016 [m Euro]

Share of premium & super-

prem1), 2016 [%]

Historical cons. growth,

CAGR ’14-’16 [%]

Forecasted cons. growth,

CAGR ’16-’20 [%]

Wine consumption, 2016, [l/

capita]

Beer consumption, 2016, [l/

capita]

Spirits consumption, 2016,

[l/ capita]

323 244 216 81 168

686 1,090 1,019 571 600

8.8 21.6 20.9 22.6 25.0

7.4 1.9 3.5 0.2 -1.0

9.0 3.2 1.6 1.4 2.9

16.4 6.4 20.5 14.9 4.0

90.0 105.2 143.2 77.4 41.3

3.1 9.3 6.0 7.8 4.2

1

Page 14

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Purcari Pinot Grigio,

Gold Medal at

Challenge

International du Vin,

Bordeaux,

unbeatable value for

money

Page 15

Consumption trends favour wine vs. alternative drinks, pushing demand up

Sources Gallup – US consumer survey, http://news.gallup.com/poll/163787/drinkers-divide-beer-wine-favorite.aspx

47 4746

45

42

44

4241

4241

39

27

29

27

32

34

30

33 33

3132

35

35

21

18

20

1819

22 2223 23

21

23 23

1990 1995 2000 2005 2010 2015

36Beer

Liquor

Wine

Shifting consumer preferences: wine up, beer down

US Gallup survey: Do you most drink liquor, wine or beer? %

“Goldman downgrades beer stocks because

millennials like wine better”

‒ 24 July, 2017

“Millennials Are Drinking More Wine Than Boomers”

‒ 17 February, 2016

“The world is facing a wine shortage, with global

consumer demand already significantly outstripping

supply, a report [by Morgan Stanley] has warned.”

‒ 30 October 2013

“Rosé Is Seeing Explosive Growth as Its Summer

Rival, Beer, Goes Flat”

‒ 3 August, 2017

2

Page 16

CEE consumption especially strong, on shifting drinking patterns

4

6

1516

20

25

33

43

Source: Statista, Euromonitor, Nielsen

Plenty of catch up for CEE countries

Wine consumption, litres per capita, selected countries

Wine steals share from beer

Forecast growth by category, by country 2016-2020F, %

▪ Per capita wine consumption in CEE lags significantly WE

levels, but catches up on growing share vs. beer▪ Romania, Group’s largest market, show fastest growth

forecast in CEE

5.1

2.93.2

9.0

1.11.1

1.9

China

-2.3

UkrainePolandRomania

Wine

Beer

2

FR IT DE CZ RO SK PL UA

Page 17

On supply side, the vineyards base has been shrinking, constraining output

Source: International Organization of Wine and Vine

2

57%47%

24%36%

9% 8%

2000 2015

4% 6%

Less than 50% of grapes collected go for wine making

Share of wine grape declining in total grape production

Grape end uses, 2000 vs. 2015, %

Juices, musts

Wine grapes

Dried grapes

Fresh grapes

Commentary

• Global area under vines, has gradually decreased between

2000 and 2015 from 7,782 ha to 7,515 ha, according to OIV;

• Overall, the corresponding share of wine grape production

(versus other grape uses), has dropped from 57% to 47%,

during the same period, from which one can infer an

approximate 20% drop in vine surfaces used for wine grape

cultivation;

• Much of the drop was driven by the EU, where regulation has

been in place limiting planting rights and subsidizing so called

grubbing-up schemes, in an attempt to address the oversupply;

• In China, among the very few countries which increased the

vineyard plantations, only 12% of grape output goes to make

wine (the rest being fresh and dried grapes);

• Global wine consumption in 2017 is estimated at 243m hl, with

a corresponding production of 247m hl – a significant departure

from the structural over-supply that plagued the market for

decades;

• For instance, the average global consumption to production

ratio has been at 0.85, on average, between 1995 and 2004;

0.90 for 2005-2014 and estimated as high as 0.98 in 2017,

impacted also by a poor harvest season, which is limiting the

supply.

Page 18

These secular shifts, have been favourable to wine pricing globally

Source: European Commission, International Organization of Wine and Vine

As wine trade grows at a fast pace…

Global wine trade, €bn

… prices keep rising

Average price per liter of traded wine, €

20 20

25

26

28

29

2006 2008 2010 2012 2014 2016

26

21

23

1818

+5%

2.1

2.3 2.3

2.0

2.2

2.3

2.4

2.62.5

2.7

2.8

2006 2008 201420122010 2016

+3%

… and vine areas are decreasing…

Area of vineyards in continental Europe, mn ha

4.5

4.4

4.4

4.3

4.2

4.1

4.1 4.04.0

2006 2008 2010 2012 2014

2

• Wine trade has grown strong, as the sector

becomes increasingly global

• Regulation limiting new plantations,

grubbing-up subsidies and generational

change has led to a decrease in vine areas

• The resulting supply decrease,

combined with rising demand, has

pushed prices up

Page 19

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Negru de Purcari

2013, 4.4 score on

Vivino, top 1% wine

globally

Page 20

16 16

12 12

11

10

9

8

6 6

5 5

4 4

1

Our wines: most awarded CEE winery 2015/2016; high up on Vivino

Leading medal-winning winery in CEE at Decanter,

the Wine ”Olympics”

#1

Outstanding Vivino ratings, a proxy for millennial engagement,

based on >12.5k reviews

Average Vivino score, selected wineries, 1-5 scale

3.3

3.43.43.4

3.73.7

3.8

3.9

▪ Our top wine, Negru de Purcari Limited Edition 2011

scores 4.7 (top 1% globally) and across vintages it scores

4.2 (based on 2,000+ reviews)

▪ Most awarded winery to the east of Rhine, ahead of

reputable (and much pricier!) German, Hungarian or

Austrian wineries

VOICE OF THE EXPERT VOICE OF THE CONSUMER

# of Decanter medals in 2015 - 16(1)

3

Notes: (1) Including most awarded wineries in each respective country. German and Austrian wineries added for comparison purposes only, in case of two wineries having same amount of medals, the one

more commended is favored (if amount commended the same, the higher grade medal receiver is favored)

Source: Company Information, FAOSTAT, OIV

Page 21Source: decanter.com, vivino.com, concoursmondial.com, iwsc.net/, challengeduvin.com; *management estimated based on retailers feedback

Rosé de Purcari voice of consumers on Vivino

Vivino scores by vintage year, Rosé de Purcari (most sold Purcari SKU)

3.8 3.8

4.0

4.1

20142013 2015 2016

Proven ability to sustain and increase quality while scaling up

15

2013 2015

14

2014 2016

23

7

Increasing number of medals won from year to year

IWSC

Challenge International du Vin Bordeaux

Concours Mondial de Bruxelles

Decanter

# of medals

▪ Unlike beer or spirits, wine production is more prone to quality

fluctuations. The Group has demonstrated the ability to keep

raising the bar quality wise, as illustrated by the mounting

number of medals won at top global competitions

▪ The ascending trend confirmed by the rising average Vivino

scores, a proxy for consumer feedback, as is the example of

Rosé de Purcari, which is Purcari’s #1 SKU by volumes and

#1 Rosé sold in the Romanian market*

3

Page 22

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Purcari Ice Wine, Decanter

Platinum, 95 points, Best CEE sweet

Page 23

Purcari formula: operational excellence meets sound marketing4

Operational excellence Clever marketing

Lower costs Brand premium

• Location: low cost production platform in

Romania, Moldova, very competitive vs. other

EU, New world

• Scale: large and growing scale in a fragmented

market where scale matters

• Processes: solid processes in place, minimizing

the guesswork and human factor in operations

• Culture: past crises – following 2006, 2013

embargos cultivated hard learned cost-discipline

• Balance sheet: strong balance sheet to trade

payment terms for margin

• Quality: offer superior quality at a given price

point

• Philosophy: be genuine, talk to the consumer,

don’t sell to them

• On a shoestring: focus on creative, viral marketing,

on small budgets

• Digital first: focus on new media, with Facebook,

Instagram and YouTube as main platforms

• “Lean Startup”: fast prototyping, encourage

experimentation, tolerate failure, react fast to flops

• Product innovation: constantly innovate line-up

and packaging, to keep up with the changing tastes

• Influencer marketing: work along key opinion

leaders, including bloggers and fashion divas

+

Strong sales and margins

Page 24Source: Company Information

Marketing: high on creativity, low on cost4

Romania National Day (2013)History of Romania told by a sand artist

Glossa (2014)National poem put on video

Takk Norge (2015)Our workers thank Norwegian consumers

Winedrone (2016)April’s Fool prank

We are the champions (2016)Purcari villagers sing a Queen classic

Digital Label (2017)April’s Fool prank

Maluri de Prut (2016)Celebrate Romania’s unification

Purcari Wine Run (2017)10km through the vineyards

Winelicious (2017)Short 1-6, viral, video recipes

52k+ 1,215k+ 120k+

120k+ 40k+ 310k+

525k+65k+70k+

1 - Confirmed, trackable reach (FB or YT views). Full reach expected to be substantially higher higher; 2 – includes TV campaign.

xx Online reach1

Page 25

Our brands: building youthful, aspirational, fun brands

Sources: public sources, company data

4

Page 26

Extending brands to new segments: sparkling and brandy

Sources: Company Information

4

Page 27

Topping other Romanian wineries at millennial engagement, quality

Sources: Instagram, Vivino as of November 27 2017

Aspirational brand which consumers like sharing about

Number of #brand uses on Instagram, for key Romanian brands

Highest number of ratings and highest scores on Vivino

X axis – number of Vivino ratings; Y axis – average Vivino score

6,567

2,9802,807

1,164

572 479238

3.0

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4.0

0 5,000 10,000 15,000

4

Page 28

Strong conversion across brand pyramid, with room to grow

51%

42%

7%

23%

33%

12%

17%

Familiarity

Consideration

Trial

Occasional

Regular

Loyal

Committed

Commentary

▪ Circa 1 in 2 Romanian premium

consumers who tried Purcari

become regulars

▪ Nevertheless, as a relative new

entrant into the Romanian market,

Purcari still has a weaker brand

Familiarity compared to the more

established wineries

▪ Only 51% of Premium consumers, in

large Urban areas (target group) are

familiar with Purcari

▪ Significant upside remains, by

increasing the awareness of Purcari

brand, which should cascade down

in higher numbers of Regular

consumers

Sources: Company Information, Romanian wine market study (Xplane Market Research Agency, Aug 2017; Research among premium wine drinkers, 20-65 years old, Bucharest, Brasov, Cluj, n=500)

4

Page 29

Purcari is now a clear #1 in premium in Romania, and top-5 overall

Sources: Calculations based on data reported by Nielsen through its Retail Measurement Service for the table wine category on bimonthly periods December2013 / January2014 to June2017 / July2017 for the Country total retail market without

HORECA. In the report are included top 5 brands with average selling price above 30 RON / L, the top is build considering volume on bimonthly periods Aug16-Sep17 to June17-July17. (Copyright © 2017, Nielsen);

Purcari Group = Purcari, Crama Ceptura and Bostavan brands

1616 16

16

11 11 111211

1112 12

56

6 6

7

34

55

12

8

6

2

4

16

10

14

18

10

MAT Sep17

7

2014

13

11

2015 MAT Sep16 2016

Overall, Purcari has more than double MS in 3 years….

Cotnari

Vincon

Jidvei

Purcari (Group)

Cramele Recas

Value share of TOTAL retail market, Romania, % Value share of Premium (RON 30+/liter) retail market, %

…while becoming a clear #1 in Premium

12

16

19

21

9

12

11

16

14

13

9

5 55 5

5

16

11

5

2

4

0

2

4

6

8

10

12

14

16

18

20

22

2014 MAT Sep162015 2016 MAT Sep17

87

1312

Purcari (Brand)

Samburesti

Segarcea

Crama Ceptura

Lacrima lui Ovidiu 26% MS in

Premium for

Group, with 2

brands in top-5

4

Page 30

Very strong revealed comparative advantage (RCA) in wine

1) Calculated in value terms as the share of a country’s or region’s wine exports in its total merchandise exports divided by the share of world wine exports in total world merchandise exports.

Sources: “Global Wine Markets, 1961 to 2009: a statistical compendium – Kym Anderson and Signe Nelgen”

47

1512 12

8 86 6 5 5 5

2 2

Italy

South

Afr

ica

Mold

ova

Chile

New

Zeala

nd

Georg

ia

Port

ugal

Fra

nce

Au

str

alia

Arg

entina

Spain

Bulg

aria

Gre

ece

Index1) of revealed comparative advantage in wine, 2009

In Moldova, the Group benefits from a very competitive exports platform to all of CEE

Rest of the WorldEurope

4

Page 31

Note: COGS per litre is calculated based on IFRS 2016

Sources: Company Information

COGS breakdown of the Group, 2016

• Labour

• Chemicals

• Land

• Fuel

39%

33%

28%

• Oenological materials

• Labour

• Energy

• Equipment

• Bottle

• Labels

• Cap & Cork

• Labour

Costs: sustainable cost advantage, across the cost structure (1/2)4

Agriculture

Production

Finishing

Advantageous input costs, across the structure

• Significantly cheaper labour

• No cost advantage in chemicals

• Vineyard prices in Moldova, Romania at lower costs vs. WE

• Fuel, on par or cheaper in Romania, much cheaper in Moldova

• No cost advantage

• Significantly cheaper labour

• Cheaper energy

• Moderate cost advantage on locally built equipment,

maintenance repair (e.g. storage tanks)

• Significantly cheaper bottles, on lower gas, sand, labour costs

• No cost advantage

• No cost advantage

• Significantly cheaper labour

Page 32

Costs: sustainable cost advantage, across the cost structure (2/2)

1) Quality comparable to Group’s production 2) France (Bordeaux); France (Val de Loire, based on 10t/ha yield calculation); Spain (La Rioja, Pais Vasco); Chile (Colchagua); Romaina (Crama Ceptura Winery, 2017); Moldova (Purcari Winery,2017)

Sources: Company data, Numbeo, Eurostat, ODEPA, Ministry of Agriculture of Spain, Agrifrance 2017 Rural Report, www.vinetur.com, www.larioja.org, http://www.lomejordelvinoderioja.com, www.vivastreet.cl, www.Globalpetrolprices.com,

www.exchangerates.org.uk, www.elobservador.com.uy

Diesel

[€/ liter]

Electricity

[€/ kwh]

Average net

salary [€/ month]

Bottle

[€/ 0.75l]

Vines2)

[€/ ha]

1,913

Grapes1)

[€/ kg]

0.25 0.30 0.15 0.18 0.15

25 k –

3.4 m

31 k –

50 k

1,288 646 573 213

0.85-1.20 0.30

0.074 0.101 0.064 0.0830.114

0.30 0.24

10k –

12k

4k –

9k

1.29 1.13 0.71 1.14 0.77

0.90

27 k –

48 k

4

PurcariCepturaRioja ColchaguaVal de Loire

Page 33

EBITDA margin – global peer group

35%

32%

30%

23%22% 21%

18%

16%

14%13%

11%10%

8%

4%

17%

EBITDA margin 2016, %Median

Source: IFRS Consolidated Financial Statements of the Group, Bloomberg data as of 1 December ; all figures are based on data in the functional currency of each company

(1) Financial year ends as of 06/30; e.g. for 2016, financial statements as of 06/30/2017 where taken into account

(2) Financial year ends as of 03/31; e.g. for 2016, financial statements as of 03/31/2017 where taken into account

Lower costs + brand premium = best in peer group margins4

(1)(1)

(1)(2)

Zhejiang

Guyuelongshan

Shaoxing Wine

Page 34

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

Crama Ceptura –

Astrum, the latest

introduction in the

Ceptura line-up,

targeting the 15-20

RON/bottle segment,

which accounts for

circa 20% of market

sales, which the

Group started

pursuing only now

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Page 35

Strong growth, top and bottom line; net debt nearing 1x EBITDA5

Source: IFRS financial statements for 2014, 2015, 2016; management accounts for 9m2016 and 9m2017

Strong sales growth

Net sales, RON m EBITDA, RON m

Spike in net income

Net Income, RON m

Ongoing deleveraging

Net debt, RON m

Robust EBITDA development

95

70

107

7160

2014 2015

+34%

2016

+35%

9m20179m2016

31

24

37

18

9

9m2016 9m201720162015

+29%

+101%

2014

22.1

14.3

23.1

0.2

-7.9

201620152014

+54%

9m20179m2016

524545

5858

-12%+15%

2016 9m20179m201620152014

Page 36

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Freedom Blend,

indigenous grapes

from Moldova,

Georgia, Ukraine;

91 points by Wine

Enthusiast

Page 37

On track to become the leading Romanian winery

Note: Revenue for Purcari Group as per IFRS financial statements, revenue for other wineries as reported by the Ministry of Finance statutory accounts; The Ministry of Finance data is not on a consolidated basis.

For Recas, Vincon, Halewood, Tohani, Budureasca only the main company of the group was considered.

Source: company data, public data

Purcari Group – #1 fastest growing and #2 most profitable among large Romanian wineries

-5

0

5

10

15

20

25

30

-15 -10 -5 0 5 10 15 20 25 30 35 40 45 50 55 60 65

Segarcea

TohaniBudureasca

Halewood

Vincon

Revenue CAGR’15-16 in RON, %

Pro

fit m

arg

in in

20

16

, %

Husi

Purcari Group

Recas

Jidvei

Cotnari

Revenue CAGR’15-16 in RON vs. profit margin in 2016 of top 10 wineries in Romania in terms of revenue in 2016

Size of the bubble represents 2016 revenue

6

Page 38

Vision: build the #1 winery in CEE, act as market consolidator

Source: Company Information

Strong growth across CEE core markets, marching towards vision

Sales growth of Purcari Group in selected geographies, CAGR’14-16, RON %

Blue chip retail partners throughout CEE

9%

CZ+SK UA

44%

49%

55%

44%

MDAsia

15%

PLRO

Selected accounts

6

Page 39

Unlike beer and spirits, wine quite fragmented; consolidation imminent

Volume share top-3 players by country, %

As wine market moves from terroir- to brand-centric and leaders build scale /

sophistication, the market is ripe for consolidation

#1

#2

#3

Source: Euromoniitor 2016, market share for top-3 players in the still wine category; *excludes Murfatlar, in insolvency

6

Beer

68

Spirits Wine

18

82

Beer

79

Spirits Wine

4139*

10

Beer Spirits Wine

74

63

77

Beer Spirits

36

Wine

67

Page 40Note: (1) 66% share of direct sales in Romania include sales done via Parmafood, a logistics services supplier. For sales done using Parmafood logistics, Group’s management has direct contact

with retailers and Parmafood doesn’t have any impact on marketing plans of Purcari Group with the retailers; (2) management accounts; (3) growth for 2015-2016 in RON, net margin for 2016, IFRS

Source: Company Information, the Ministry of Finance, public data;

I II

III IV

Build out sales force; direct to retail

Continue shift to premium, up mix

Extend brands to new categories

Grow via acquisitions

Vast room to grow in fragmented €3.6bn core CEE market;

drive consolidation; bigger scale to further strengthen competitive advantage

25

38

66

UAPLRO

% of direct to retail

sales1Growth of brandy2,

RONmn

% of premium Purcari

sales of total Group2

Purcari vs. top-5 Romania,

% growth, % net margin3

• Build out own sales in core-

markets, repeat successful

Romanian formula

• Grow share of direct to retail

sales

• Move beyond wine; build on

successful push into brandy

• Launched sparkling in 2017,

expect non-wine segments to

drive growth

• Premium Purcari sales tripled

over the last two years, boosting

margins

• Way to go as ex-works price of

premium Purcari ~4x the price of

mass-market Bostavan

• Wine sector fragmented, high

share of “hobbyist” operators,

lacking expertise

• Opportunity to bring these up

to the operational standards

of Purcari Group

6

Clear drivers to achieve its goal of building a wine champion and consolidate the CEE market…

Engines to drive growth going forward and achieve CEE leadership

373229

22

9m201720162014 2015

50

PurcariTop 5

20

22

Top 5

14

Purcari

14

76

201620152014

Page 41

BUSINESS HIGHLIGHTS

1 Favorable macro fuels growth in our key regions

2 Secular growth of wine market, especially in CEE

3 Purcari – among most awarded wineries in CEE

4 Best of both worlds: low cost + pricing premium = great margins

5

6

7

Strategic vision: build #1 CEE winery, consolidate market

Excellent team, resources to deliver to the vision

Excellent growth track-record, strong fundamentals

Cuvée de Purcari,

the extension to

sparkling

launched in 2017.

Made according to

the traditional,

Champenoise

method, with in-

bottle fermentation

Page 42

A strong team to deliver on the vision

Sources: Company Information

Reputable investors

Horizon Capital (64%) is a leading regional

private equity investor, with over $700m under

management, across four funds; Horizon is

backed by over 40 institutional investors,

including UTIMCO, Stepstone, Aberdeen,

Church Pension Fund, IFC, EBRD, FMO etc.

IFC (6%) is a member of the World Bank Group,

focused on investments in emerging markets.

10 years of IFRS reporting, Big-4 audits

Purcari has been issuing financial statements in

accordance to IFRS and was audited by a big-4

since 2007.

7

▪ Over 35 years of experience

in wine industry

▪ Successfully sold one of the

largest wine companies in

RU

▪ Fluent in FR, RO and RU

Victor BostanCEO, 57

▪ 20 years experience in banking,

audit and corporate finance

▪ Successfully restructured

financial and commercial debts

▪ Fluent in EN, RO and RU

Victor ArapanCFO, 42

▪ 20 years of management experience

▪ Ex-MetroMedia, Sun/Orange, AT&T

▪ Wharton, MBA Harvard Business

School

▪ Speaks EN, RO

John MaxemchukCOO, 47

▪ Over 10 years experience in

wine sales

▪ Successfully reconstructed

Group’s production sites

▪ Fluent in FR, RO and RU

Marcel GrajdieruGM Romania, 77

▪ 9 years of experience in wine

production, thereof 2 at the

Russia-based “Igristie Vinna”

and 8 within the Group

▪ Fluent in EN, RO and RU

Nicolae ChiosaGM Production, 29

▪ Over 10 year of experience in

recruitment and human

resources development

▪ Fluent in EN, RO and RU

Ina BurciuHead of HR, 40

▪ Over 10 years of experience in

wine sales

▪ Successfully launched export to

CEE and Baltic countries

▪ Fluent in EN, RO and RU

Artur MarinCCO, 38

▪ 15+ years of wine consulting

experience

▪ Laureate of numerous

international awards

▪ Fluent in EN, IT

Federico GiottoHead Wine Maker, 39

Sorin BalanelMarketing Director, 41

▪ 19 years of experience in

marketing and advertising with

focus on the beverage industry

▪ Successful coordination of

group’s rebranding campaigns

▪ Fluent in EN, RO and RU

Page 43

SPORTS CULTURAL EVENTS CHARITY PROJECTS

Community Development Policy implemented in 2015 to define strategic approach, management system and budgets for Group’s

contribution to the local communities.

▪ Main partner of USM-Bostavan, women

and men volleyball teams, since 2010.

▪ USM-Bostavan women’s team: Gold

Award at the volleyball championship of

Moldova in 2016 and 2017

▪ USM-Bostavan men's team: Silver Award

at the volleyball championship of Moldova

in 2017

▪ Purcari Wine Run 2017: a unique 10km

trail race, which passes through the

vineyards of Chateau Purcari. Amateur

and professional sportsmen participated in

the race.

▪ Gala Evening with Valentina Nafornita,

main partner, a well-known Moldovan

opera singer. Engaged with the Milan

Scala, Amsterdam, Edinburgh, the Berlin

State Opera, among others.

▪ Doua Inimi Gemene (2017), partner.

"Two Twin Hearts" is the international

music festival dedicated to the memory of

Doina and Ion Aldea-Teodorovici.

▪ Ethno Jazz Festival (annually), partner.

Moldovan principal jazz fest, organized by

Trigon Ethno Jazz group, that promoted

contemporary culture and jazz

▪ CCF/HHC Moldova (child support

program), sponsor. An NGO program

promoting children well-being via

prevention of family separation, inclusive

education and acceptance of children

with special needs.

▪ Philanthropical Foundation “Hospice

Angelus Moldova” sponsor. A non-

profit organization founded to create a

system of medical and social assistance

to incurable cancer patients in advanced

and terminal stages. Operates a hospice

“Angelus Moldova”, a home palliative

care service. Participated in the

fundraising auction in support of the

foundation.

Corporate and social responsibility7