Business profile Distribution & Marketing Company LEVERSA

1. Business profile Distribution & Marketing Company LEVERSA “Your sales and marketing department in Latvia”

2. OUR HISTORY: • In the beginning there were 2 distribution companies – “Arlems” and “Vice Versa”. • Arlems started its business in 1993being imported the first truck of rapeseed oil from Belgium. • Vice Versa was also established in 1993 and as a distribution company served Latvian food producer “Kok & Co” dealt with manufacturing of mayonnaise and tomato products. • Leversa has combined the sales & marketing skills of Arlems with the sales & logistics expertise of Vice Versa. • SIA Leversa was registered in October 2002 by the merger of Arlems and Vice Versa Our new name is “LEVERSA” = “ArLEms” + “Vice VERSA”. • Since summer 2007 Leversa is owned by 2 Latvian private persons, founders of former Arlems.

4. OUR TEAM Most of all we proud about very low personnel rotation in company. 60% of associates (except logistics) work with us 10 years or more but 80% of them work in company 5+ years ! There are a few who work since 1993. All staff on all positions, even warehouse workers and drivers are individually motivated for better performance achievement. Nobody receive just a straight salary. Everyone works on a principle “the better performance – the larger compensation”. The company provides the space where people are able to realize their professional interests and ambitions; the staff pay back with loyalty.

5. Structure General Manager MARKETING & PROCUREMENT 5 ACCOUNTING 4 SALES 20 persons LOGISTICS 22 IT 1 We do consider our simple 1-level structure as our competitive advantage provided quick internal information flow and responsiveness to any market signals.

6. BUSINESS STRATEGY: To provide value-added, marketing-led services for manufacturers of good quality branded consumer products wanting to expand their business in Latvia. We are willing to be as sales & marketing department of variable cost for our Partners-suppliers.

7. We provide our Principals with SALES services: Sales forces of 20 full time dedicated persons cover the whole country which is divided into Riga, North and South areas. Area sales managers supervise over 16 sales representatives who call on retail outlets and sell our products to retailers in their districts. All regional sales reps are equipped by company’s passenger cars. All sales reps send orders just received in store from their portative computers directly to the central computer system with a help of GPRS. Important to note that with our product portfolio containing just 400+ SKUs our sales reps are still able to sell rather than just collect orders like it’s happenned in many companies with assortment of some thousands SKUs. Key-account managers present brands and negotiate listings, prices, assortments, promotions and other conditions with ALL national and regional retail chains.

8. SALES STRUCTURE IN RIGA GeneralManager Key-account manager Sales reps Retail supervisor Riga 500+ independent shops LIDO, Nomeda, Deli, Vidzemes Maiznica,Lango, Anre Juniors, Eurofood, Elanders, Grinhols Sales reps HoReCa Sales reps Open markets Wholesale depots

9. SALES STRUCTURE OUTSIDE RIGA The market is completely covered by our sales forces.

10. TWO sales forces to strengthen quality TYPE OF SALES FORCE SALES CHANNELS CONSUMER’S TARGET MASS-MARKET STRATEGY 16 sales reps covering > 2000 active customers directly Average income per person “not low” Different sales channels – retail stores, open markets, wholesale PREMIUM STRATEGY 4 key-accounts managers covering deliveries to retail chains Average income per person “average+” We are able to deal with both – premium and mass- targeted brands and products Strong marketing-oriented approach to support and to develop premium brands

11. We provide our Principals with MARKETING services: Leversa in cooperation with external advertising agencies is able to offer to Principals marketing services from A to Z: Market Research ( Consumer - Media - Trade ), qualitative /quantitative Control of legal information on labels Packaging design Communication and promotion plans Media - Production ( TV, Radio, Outdoor) - Media Airing In-store demonstrations and product tastings Trade-marketing activities (P.O.P. materials, lotteries, contests, e.t.c.) Just say us what might you need else!

12. We provide our Principals with LOGISTICS services: • Logistics services include import, warehousing and distribution. • Warehouse facilities: • - Location in Riga next to the office premises • 1900 pallet places for dry groceries- 100 pallet places for chilled products • We use combined transportation system. • We deliver part of merchandise to customers with our own trucks and outsource other transport services to third parties providing to Leversa flexibility and reducing related costs. • Most of used trucks/vans are temperature controlled. • Delivery time in Riga: 24 hours • Delivery time outside Riga: 48 hours

13. DISTRIBUTION CENTER The market is fully covered by our logistics services

14. BRAND CATEGORY PRINCIPAL BRIEFLY ABOUT … Convenient food Natural mineral water Pasta Tuna preserves Mayonnaise, ketchup, vegetable preserves Snacks AS Salvest, Estonia Darida, Belarus Our own brand Alpro , Belgium Bolton Alimentary, Italy S.I. Group, Ukraine Adriana, Czech Republic N1 in Estonia and Baltics 100 various SKUs. Production is sourced in Latvia, India, Italy, Vietnam, Romania, Spain, Thailand Large Central European manufacturer Market leader among imported mineral waters in Latvia European pioneer and market leader N1 in Italy and in many European countries! Salty rusks - innovative snack, Undisputable market leader in Ukraine. Export-orientated Plant-based food and drinks Non-alcoholic drinks Ilgezeem,Latvia Specialist and market leader of natural malt-based drinks We represent local and international brands Bunge, multinational One of the largest agrifood processors worldwide Edible oils, mayonnaise We continuosly work on brand portfolio extension and welcome brand holders interested in to cooperate.

15. Philosophy of cooperation with Partners • The BRAND has to be the object of common care and attention • Leversa is encouraged to invest into Brand development together with Partner • Leversa always looks for long-lasting partnerships • Leversa follows its commitments and anticipates the same approach from our Partners • Leversa contributes into cooperation hard work, creativity and passion of its personnel • Leversa expects good understanding and teamwork with our Partners

16. Our self-profile • We aren’t the largest distributor in Latvia but who said that bigger is better? • We like hard challenges and ambitious targets and we like creative and smart solutions • We hate “let’s try” approach; we like “go & get” only • We deal on fair “win-win” basis • If we say “YES”, this means “YES” for sure • If we can’t do something, we say “Sorry, NOT” Do you like us? 

17. MEMBER OF ESMA ASSOCIATION We are proud to say that “Leversa” is a member of ESMA since 2002. ESMA - a pan-European trade association of Europe's finest sales and marketing organizations, specializing in selling, marketing and distributing packaged consumer goods (PCG). ESMA exists to promote and safeguard the interests of its members, and to help PCG manufacturers find the best partners for expansion in Europe, both in home and export markets. Members are experts in their geographic markets and provide a range of first-class services for manufacturers. To know more about ESMA please visit www.esma.org.

18. Your first contact: • Bizan Viktor • Marketing Director • SIA “LEVERSA” • 8b Uriekstes str., Riga, LV-1005, Latvia • Phone: +371-7517490 • Fax: +371-7517495 • E-mail: viktors.b@leversa.lv • www.leversa.lv • presentation updated on 2013Sep