Synergy becomes BELUGA GROUP

June, 2017

POSITIONING OF THE GROUP

BELUGA GROUP continues to develop its business, being today in the pool of international companies for the production of spirits. The Group's products are sold on 5 continents in more than 70 countries around the world. The portfolio of premium imported brands makes 10% in the Company's revenue.

GLOBALIZATION OF THE BUSINESS, DEVELOPMENT OF EXPORT AND IMPORT

OPERATIONS

We are constantly expanding our brand portfolio in order to provide customers with a large choice of the most high-quality products and satisfy the most sophisticated demand. We are a Company that is customer-oriented and always stays in touch!

IMPROVING THE PORTFOLIO, CUSTOMER ORIENTATION

For us, reputation is one of the main values. We pay special attention to it when creating the image of an attractive and open employer for potential employees and those who have already joined our team.

CONTINUED FORMATION OF THE

REPUTATION OF THE CORPORATE BRAND

The new brand will allow bringing external and internal communications to a qualitatively new level, to build them more effectively. We want to be as open and transparent to our target groups as possible.

INCREASE IN TRANSPARENCY

FOR KEY AUDIENCES

With an updated corporate brand, we intend not only to increase the recognition of the Company and its products, but to bring the corporate culture to a new level, to strengthen self-identification of people bearing the name of the Group.

DEVELOPMENT OF THE CORPORATE CULTURE

2

CONTINUED DEVELOPMENT OF THE DISTRIBUTION

PLATFORM WITH A FOCUS ON DIRECT SALES

ACHIEVING DIRECT CONTACT WITH END CUSTOMERS THROUGH TRADE MARKETING

BEST IT PLATFORM

‣ EXPANSION OF THE GENERAL EXPORT GEOGRAPHY AND IN PARTICULAR BELUGA BRAND

‣ IMPROVING THE QUALITY OF IMPORTED OPERATIONS THROUGH TARGETED SELECTION OF PARTNERS

‣ FOCUS ON SUPER-PREMIUM INTERNATIONAL VODKA

MARKETS

THE STRATEGY OF THE GROUP

THE STRATEGY OF BELUGA GROUP REMAINS THE SAME – TO BE THE LEADING SPIRITS GROUP IN RUSSIA, AS WELL AS ONE OF THE LEADING INTERNATIONAL PLAYERS

‣ DIVERSIFIED BRAND PORTFOLIO, COVERAGE OF ALL

SEGMENTS

‣ FOCUS ON PREMIUM AND MARGINAL PRODUCTS

‣ INCREASE IN PRICE AND BRAND RECOGNITION

‣ STRENGTHENING THE PRESENCE IN GROWING CATEGORIES

‣

‣

‣

PRODUCTION, SALE AND DISTRIBUTION OF ITS OWN

ALCOHOL PRODUCTS

USE OF MODERN TECHNOLOGIES TO ENHANCE THE OVERALL OPERATIONAL PERFORMANCE

‣

‣

BRAND PORTFOLIO

DISTRIBUTION

EXPORT KEY

BUSINESS

3

GROUP CORPORATE BRAND

On June 26, 2017, by the decision of the Annual Meeting of Shareholders of "Synergy", BELUGA GROUP is to become the new corporate brand of the Company.

The corporate identity of the Company has been completely renewed. The strategy of the Company, its structure, management of business processes remain unchanged.

The new name of the Group does not entail any additional activities and does not affect the Company's obligations. Bank details, contact details, as well as the organizational and legal form -

Public Joint Stock Company - will remain unchanged.

MAJOR CHANGES:

LOGOTYPE COLORS FONT

SYNERGY BELUGA GROUP

VODKA BLUE

CAVIAR BLACK

CRISP WHITE

4

BELUGA GROUP IS A GLOBAL COMPANY

THE BEST EXPERTISE IN THE INDUSTRY,

MANAGEMENT WITH 15+ YEARS’ EXPERIENCE

9,000 PROFESSIONAL EMPLOYEES,

3,500 OF THEM ARE HIRED IN SALES

6 OWN FACTORIES AND 13 LOGISTICS

CENTERS THROUGHOUT THE COUNTRY

REPRESENTATIVE OFFICES IN THE USA AND AUSTRALIA

7 FOREIGN TEAMS:USA, GERMANY, FRANCE, GREAT BRITAIN, GEORGIA,

KAZAKHSTAN, THE BALTIC STATES

THE GROUP'S BRANDS ARE INCLUDED IN RATINGS OF MAJOR

INTERNATIONAL MAGAZINES: DRINKS INTERNATIONAL, IMPACT, IWSR

THE PRODUCTS OF THE GROUP ARE PRESENTED IN THE TERRITORY OF RUSSIA AND ALSO IN MORE THAN 70 COUNTRIES

OF THE WORLD ON 5 CONTINENTS

USE OF THE MOST INNOVATIVE TECHNOLOGIES IN MARKETING,

PRODUCTION, AND SALES

5

»«

»«

»«

»«

»«

»«

BELUGA BRAND IS NO. 1 IN THE

SUPER PREMIUM SEGMENT

NO. 1 ON THE RUSSIAN MARKET

FOR THE PRODUCTION OF OWN

VODKA BRANDS

BRAND "BELENKAYA" IS A NO. 1

ON THE RUSSIAN MARKET BY

PRODUCTION VOLUME

NO. 1 ON THE RUSSIAN

LIQUEUR MARKET

NO. 2 ON THE RUSSIAN COGNAC

MARKET

NO. 1 RUSSIAN INDEPENDENT

IMPORTER IN THE CATEGORY OF

STRONG ALCOHOLIC BEVERAGES

BELUGA GROUP IS A MARKET LEADER

6

Source: *IWSR 2015, **the Company's data, Rosstat 2016.

Diageo

39,4

Roust

23,1

Pernod Ricard

17,1

Sazerac

11,2

BELUGA

GROUP

10,7

Stock

8,6

Belvedere

8,3

Bacardi

6,9

BELUGA GROUP IS IN THE TOP-5 OF THE WORLD VODKA COMPANIES (MLN. 9L CASES)*

BELUGA GROUP IS A MARKET LEADER

BELUGA GROUP IS THE LEADER OF RUSSIAN SPIRITS MARKET IN VALUE TERMS. (%)**

BELUGA

GROUP

Tatspirtprom

13,6

16

Roust ASG Global Spirits

9,8

5,44,6

7

KEY INDICATORS OF BELUGA GROUP

2014

Revenue (bln. rub.) Dynamics of shipments (mln. dkl.)

Spirits shipments below 25%, 2016 (thous. dkl.) Spirits shipments over 25%, 2016 (thous. dkl.)

Source: the Company's data, Rosstat.

20152016

44,646,8

59

2016 2015 2014

11,6

9,811

BELUGA

GROUP

646

Tatspirtprom

257

Niva

193

Sordis

148

BELUGA

GROUP

1,067

Tatspirtprom

464

Global Spirits

460

8

Market shares of major importers (%)** The import share in the revenue of the spirits segment (%)

Source: FCS, Rosstat, the Company's data *includes strong spirits and wine, **Includes only strong spirits.

Diageo

12,7

BELUGA GROUP IS THE LARGEST RUSSIAN INDEPENDENT IMPORTER OF STRONG SPIRITS AND

№5 AMONG GLOBAL IMPORTERS

Dynamics of imports (thous. dkl.)* Largest categories of import portfolio (%)

2016

665

2015

450

2014

351

Bacardi Pernod

Ricard

Maxxium BELUGA

GROUP

Roust

8,98,6

4,33,4

2,6

WhiskyBrandyRumCognacOthersBitter

6611

10

64 2

Russia

Import

86

14

9

KEY INDICATORS OF BELUGA GROUP

BELUGA GROUP IS A COGNAC PRODUCER NO. 2 IN RUSSIA

Dynamics of shipments of the largest producers in 2016/2015 (thous. dkl.%)

Source: the Company's data, Rosstat.

Alliance

-6,1%

Dynamics of production (thous. dkl.) Market shares of the largest producers (%)

2016

713

2015

525

2014

469

55,60

6,806,90

8,20

9,00

13,70

AllianceBELUGA GROUPKINKizlyarUsovoOthers

2016

2015

BELUGA

GROUP

+40%

KIN Kizlyar Usovo

1086

1203

713

460

645502

550524 541

505

BELUGA GROUP TAKES THE 2ND

PLACE IN THE PRODUCTION OF COGNAC IN RUSSIA IN 2016.

10

BELUGA GROUP - A WIDE PORTFOLIO OF THE HIGHEST QUALITY BRANDS

11