Stock Spirits Group PLC Year-end 2017 Results

7 March 2018 Disclaimer

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This presentation is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation or which would require any registration or licensing within such jurisdiction. 2 Introduction

David Maloney Chairman

3 Agenda

SECTION PRESENTER

Introduction David Maloney (Chairman)

Business review Mirek Stachowicz (CEO)

Financial results Paul Bal (CFO)

Looking forward Mirek Stachowicz (CEO)

Q&A

4 2017 Year-end results summary

• Positive performance in 2017: • Volume, revenue, adjusted EBITDA and adjusted EPS all in growth • Stabilisation and turnaround in market and financial performance in • Cash generation continues to be robust • Final dividend proposed today of 5.72€ cents per share • Total dividend paid/proposed in respect of 2017 is 8.10€ cents per share (2016: 7.72€ cents per share excluding the special dividend) • 25% Irish whiskey investment in Quintessential Brands completed in July • Paul Bal replaced Lesley Jackson as CFO in November • More robust business, strategy refreshed and well placed for the future

5 Business review

Mirek Stachowicz Chief Executive Officer

6 Introduction

What we committed to delivering last year-end • Turnaround Poland - grow market share, revenue and EBITDA • Complete cost savings initiatives in 2017 • Respond appropriately to competitors’ actions • Put the business on a stronger footing for the future

What we have achieved • Turnaround of our Polish business is on track • Improved financial performance • €3.2m of annualised cost savings in 2017 • 2016 Czech acquisition integrated ahead of plan • 25% equity investment in Quintessential Brands

7 The Polish spirits market

• Total spirit sales are influenced by increased affluence in Poland 2017 Total spirits value by category (with Y-o-Y growth rate %) • Total spirits market grew +2.4% in volume and +3.6% in value

• Clear vodka represented 72% of the total CLEAR VODKA vodka market by value but it is declining (-1.0%). Flavoured vodka grew +14.3% FLAVOURED significantly by value (+9.5%) VODKA

WHISKY • Traditional trade was still the most -1.0% important channel, representing 66.6% of vodka sales by volume in 2017 BRANDY +9.5% • Our Polish business delivered 54% of OTHER total Group revenue in 2017

• Stock is building a stronger own brand portfolio through increased premiumisation and different price points

Source: Nielsen, total Poland (excluding beer and wine), value market share, MAT on monthly within key categories basis December 2017, as reported in January 2018 • Whisky was the fastest growing category by value (+14.3%) and is a strategic priority for us 8 Source: Nielsen, total Poland, Traditional trade, MAT on monthly basis December 2017, as reported in January 2018 Poland vodka category share gains last 6 months

Vodka volume and value market share last 6 months vs prior 6 months (%, all channels) Value Volume 45% Roust Roust • Stock has seen gains in value and +1.5% +0.7% 40% volume market share in the last 6 months, particularly in the 35% Discounters channel 30% Stock Stock +0.1% +0.2% • Roust is starting to lose value 25% market share to Stock in the 20% MB modern trade but Roust is gaining MB -0.4% value in the traditional trade 15% -0.8% channel 10%

5% • Marie Brizard is losing value and volume market share in all 0% Jan 17- Jun 17 Jul-Dec 17 Jan 17- Jun 17 Jul 17- Dec 17 channels

Source: Nielsen, total Poland, total off trade, total vodka (defined as sum of total vodka, flavoured vodka and vodka based flavoured liqueurs) value and volume for each half year period as reported in January 2018 9 Poland market share trends

Quarterly % change in volume and value (2017 vs 2016)

Volume market share Value market share

STOCK ROUST MARIE BRIZARD STOCK ROUST MARIE BRIZARD

5.0% 5.0%

4.0% 4.0%

3.0% 3.0%

2.0% 2.0%

1.0% 1.0%

0.0% 0.0% Q1 vs LY Q2 vs LY Q3 vs LY Q4 vs LY Q1 vs LY Q2 vs LY Q3 vs LY Q4 vs LY -1.0% -1.0%

-2.0% -2.0%

-3.0% -3.0%

• The trend in both volume and value share favours Stock as Roust’s momentum slows and Marie Brizard’s decline accelerates

Source: Nielsen, total Poland, total off trade, total vodka (defined as sum of total vodka, flavoured vodka and vodka based flavoured liqueurs) value and volume for each quarterly period, 2016 and 2017, as reported in January 2018 10 Mainstream clear vodka pricing

Total Poland average price per litre (PLN)- All formats

ZOLADKOWA DE LUXE (Stock) ZUBROWKA (Roust) KRUPNIK (Marie Brizard) • Pricing in the mainstream segment has not really 45.0 improved over 2017 44.5 • We have demonstrated our 44.0 ability to respond effectively to 43.5 competitive pressures and will

43.0 continue to do so

42.5 • Our pricing strategy has

42.0 resulted in Stock’s ZdL volume market share growing +2.9% 41.5 (sell-out) vs the sub-category

41.0 decline of -0.8%

40.5 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec • Stock announced a price 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 increase in January 2018, which will be effective from 1st March 2018

Source: Nielsen, total Poland, total clear vodka by volume, MAT Dec and total Poland net sales per litre (PLN) all formats (in graph), as reported in January 2018 11 The competitive landscape

• Difficult to understand what is happening at Roust: • extensive senior management changes at Group level and in Poland • simultaneous departure of all independent Non-Execs • management turnover makes it hard to speculate about future strategy

• Marie Brizard’s position in Poland is rapidly declining: • resulting in the Group’s recent profit warning • recent change of Group CEO and change in management in Poland • the Group appears to be relying on improved market pricing in the mainstream segment for its turnaround in Poland

• Stock’s strategy and planning is based on the assumption that market pricing in the mainstream segment will not improve in the mid-term

12 Poland - Operational highlights

• Jim Beam grew by 48.5% in volume and overtook Jack Daniels, and is now the number four whisky brand in Poland

• Stock has secured the consent of Beam Suntory to distribute the Irish whiskey range of Quintessential Brands - The Dubliner and The Dublin Liberties

• Takes time for Stock to accelerate growth of flavoured vodka brands • complex product ranges require excellence in activation in the traditional trade channel • ranging in the modern trade changes once per year • volume sales of Stock’s total flavoured vodka range grew by +1.4%

Source: Nielsen, total Poland, total off-trade MAT Dec 2017 as reported in January 2018 13 Poland - Operational highlights

WHISKY PREMIUM VODKA Grew Jim Beam volume and value ahead of the category Grew volume and value ahead of the category supported by supported by heavyweight consumer trial building innovative limited editions of Stock Prestige plus trial and distribution building on Amundsen

FLAVOURED VODKA CATEGORY IN-STORE EXECUTION Grew total flavoured sales supported by innovative Improved our execution at the point of purchase using our promotions to expand Zoladkowa Gorzka usage and Saska Perfect Store programme and up-weighted display and flavour extensions with appeal to millennials leaflet presence

14 Overview of the Czech market

• Our Czech business 2017 Total spirits value by category (with Y-o-Y growth rate %) delivered 25% of Group revenue in 2017 • Total spirits market grew RUM 4.8% in volume and 7.8% in VODKA value in 2017 +11.8% HERBAL BITTERS AND LIQUEURS • Unprecedented growth in +5.8% WHISKY rum; 27% of the total spirits FRUIT DISTILLATES market by value in 2017 +13.3% FRUIT & OTHER LIQUEURS +11.1% • 81% of the rum category SPRITZ was local rum (includes +5.2% OTHER Bozkov); 19% was imported rum in 2017 • Increasing demand for international rums • Whisky was the fastest growing category (+13.3%) in 2017 Source: Nielsen, total , value market share, MAT December 2017 15 Czech Republic - Operational highlights

• The Czech spirits market continued to grow at 7.8% and Stock outgrew the market by gaining +1.5% Value share of total spirits (%) value share 32.1% 33.6%

• Bozkov (local rum) outgrew the rapidly growing rum category following investment in new brand

architecture MAT Dec 2016 MAT Dec 2017

Value share of rum category (%)1 • Stock lost value share in the herbal bitters category to Jaegermeister but we launched our new Black Fox 58.8% 59.8% brand in November to compete

• We have a strong portfolio of international whisky brands MAT Dec 2016 MAT Dec 2017 • extending the Diageo contract • signed new Beam Suntory agreement Value share of herbal bitters category (%)

• secured the rights to distribute Quintessential 41.7% brands 37.2%

• Increased our value market share (+5.6%) in vodka to 30.6% following the Bohemia Sekt acquisition

MAT Dec 2016 MAT Dec 2017 Source: Nielsen, total Czech Republic, total off-trade MAT Dec 2017. 16 1 . The “Rum” category includes both traditional rum (made from sugar cane) and “local rum” (made from sugar beet) New brand developments in 2017

• Taken bold steps to premiumise in the growing categories. We have: • outgrown the total rum category and have recently launched a premium product to compete with imported rums. Bozkov Republica uses powerful local brand equity to enter a new price segment • launched a new premium brand in the herbal bitters and liqueurs category Black Fox to compete with Jaegermeister

• Introduced premium pricing on new products: • Black Fox (+73.5% higher vs. Fernet Stock) • Bozkov Republica (+83% higher vs. Bozkov Original)

17 Overview of the Italian market

Total spirits value by category • continues to be a (with Y-o-Y growth rates) challenging spirits market Digestives -12.0% as it is highly fragmented -1.4% Aperitives -4.0% * * * Sweet cream liqueur • Total spirits market grew by * * Grappa +1.3% in value in 2017 but -0.7% +4.4% * Whisky volumes remained flat -0% Rum -2.7% • Our Italian business +4.3% Gin * +1.2% delivered 10% of Group Clear vodka revenue in 2017 +25.1% * Sambuca • Stock has a presence in -1.1% -1.9% Lemon cream liqueur (Limoncello) 58% of the total market by -0.2% Fruit cream liqueur -1.7% value (categories with *) * Brandy * Other • Stock has a value share of

Flavoured vodka 5.6% of total spirits in the modern trade channel

* Stock has own or distribution brands in these categories in 2017. Stock has a presence in 58% of the total spirits market by value Source: IRI, total Italy, total on- and off-trade, value market share, MAT December 2017 18 Italy - Operational highlights

• High unemployment has led to a fall in Value share of limoncello (%) demand for spirits by young adults 21.4% +0.8% 22.2%

• Stock increased its value and volume share in limoncello and brandy respectively during the year

• Stock 84 was successfully relaunched during 2017 MAT Dec 2016 MAT Dec 2017 • We grew value share in flavoured vodka despite the overall sub-category declining Value share of brandy (%) in 2017 14.4% +0.1% 14.5% • Continued decline in Keglevich volume contributed to an impairment, but we are continuing to invest in the brand over the coming years

MAT Dec 2016 MAT Dec 2017

Source: IRI, total Italy, total off-trade, by category MAT Dec 2017. 19 New brand developments in 2017

• Successful relaunch of Stock 84 brandy and Stock 84 XO

• In January 2018, we launched Syramusa, a new ultra-premium limoncello brand

• 3-year programme investing in Keglevich Fruit to broaden its appeal • new packaging • reformulated liquid • increased emphasis on natural, high quality ingredients • significantly increased advertising and promotional support

20 Other markets - Operational highlights

Slovakia • Solid performance in Slovakia with a marginal increase in volume share in 2017 • Retained leadership in herbal bitters and liqueurs. Flavoured vodka and fruit spirits categories are growing (Golden Ice) • Launch of Fernet Stock Grapefruit and Fernet Stock 90th Anniversary limited edition • New distribution agreement signed with Beam-Suntory, adding strength to the whisky portfolio International • Our products are sold in more than 50 countries • Widened range of distribution brands with global partners - Beam-Suntory, Beluga, Botran rum, Distell and Lucas Bols • Negotiated the rights to distribute Quintessential brands in selected markets

Source: Nielsen, total Slovakia, total off-trade, market share by volume, MAT Dec 2017 21 Financial results

Paul Bal Chief Financial Officer

22 Introduction

• The trading results are a combination of top-line growth and cost savings • Poland – stabilisation and turnaround • Czech Republic – top-line and EBITDA progress, helped by M&A • Italy – margin held in challenging conditions • Other cost benefits – lower corporate costs and positive FX • Two non-recurring, non-cash exceptional charges • Strong balance sheet and cash flow • Changes in accounting policies and year-end • Dividends

23 Consolidated P&L

€’000s 2016 2017 % Change • +5.2% increase in revenue Revenue 260,974 274,601 5.2% • COGS per litre flat at €1.16 Cost of goods sold (128,714) (137,394)

Gross profit 132,260 137,207 3.7% • Gross profit +3.7%; improved revenue in Poland and Czech, but lower margin reflects Polish pricing Gross profit margin % 50.7% 50.0%

Selling expenses (61,305) (60,808) • Selling expenses €0.5m lower; more focused NPD Other operating expenses (30,819) (31,287) • Other operating costs marginally higher; savings in corporate Share of loss of equity-accounted overheads offset by higher staff costs investees, net of tax - (331) Operating profit before exceptional 40,136 44,781 11.6% • Share of loss of associate (Quintessential Irish whiskey investment) expense Operating profit before exceptional 15.4% 16.3% • Double-digit Operating profit (before exceptional expenses) growth expense margin % and improved margin Exceptional expenses - (14,900)

Operating profit 40,136 29,881 -25.6% • Exceptional expense €14.9m: impairment of Italian goodwill Net finance costs (965) (2,572) • Higher net finance costs; 2016 benefited from €1.5m FX gains on Profit before tax 39,171 27,309 intercompany loans Income tax expense (10,734) (11,280) • Exceptional tax €4.7m: deferred tax charge due to change in Polish Exceptional tax charge - (4,700) tax law Profit for the year 28,437 11,329 -60.2% • Adjusted EBITDA margin growth and improvement Adjusted EBITDA 51,360 56,324 9.7% Adjusted EBITDA margin % 19.7% 20.5% • Adjusted EPS increase of +14.3%

Earnings per share (basic ) €0.14 €0.06 -57.1% - Adjusted EBITDA is operating profit before depreciation, amortisation and exceptional expenses, excluding the share of results of equity-accounted Earnings per share (adjusted basic) €0.14 €0.16 14.3% investees - Adjusted EPS excludes the impact of both exceptional items 24 H1 - H2 Performance

Revenue (€m) at constant currency

148.7 154.8 • Good momentum in revenue 117.8 119.8 • Momentum improved in H2 in 2017

H1 16 H2 16 H1 17 H2 17 Reported: €116.0m €145.0m

Adjusted EBITDA (€m) at constant currency • Adjusted EBITDA consistently increased 32.5 34.3 19.3 22.0 • Margin improvement

16.4% 21.8% 18.4% 22.2%

H1 16 H2 16 H1 17 H2 17 Reported: €17.9m €33.5m

xx.x% Adjusted EBITDA margin (%) 25 Volume & revenue overview

Volume (m 9L cases) +6.5% 12.3m 13.1m • Strong overall volume growth of +6.5%, 7.0 primarily from Poland and Czech

• +11.8% growth in clear vodka

Dec 16 Dec 17

Revenue (€m) at actual rates • Key drivers of top-line growth: 274.6 +5.2% • Foreign currency: +2.1% 261.0 • Volume: +6.5% • Pricing: -3.3% • Mix: -0.1% +5.2%

• On a constant currency basis revenue growth Dec 16 Dec 17 is €8.1m (+3.0%) 2016 Revenue at constant currency €266.5m 26 Poland financial performance

Revenue (€m) at constant currency 147.7 +5.1% • Revenue growth €7.2m (+5.1%) on constant 140.5 currency basis

• Key drivers of top-line growth: • Volume: +8.1% • Pricing: -6.5% • Mix: +3.5% +5.1% Dec 16 Dec 17 Reported for 2016: €136.9m

Adjusted EBITDA (€m) at constant currency • EBITDA improvement of €1.0m (+2.8%)

37.7 • EBITDA impacted by: +2.8% • -€0.8m increased staff incentives • -€0.5m increased other overheads 36.7 25.6% • Margin fallen slightly by 50bps. Excluding the increased staff incentives, it would have been 26.1% 26.1%

Dec 16 Dec 17 xx.x% Reported for 2016: €35.9m EBITDA % 27 Czech financial performance

Revenue (€m) at constant currency 68.8 +5.7% • Increase in revenue of €3.7m (+5.7%) on constant FX 65.1 • Volume growth in Bozkov family, and brands acquired in 2016; offset by decline in Fernet

Dec 16 Dec 17 Reported for 2016: €63.2m

Adjusted EBITDA (€m) at constant currency 21.8 • Increase in gross profit and reduction in overheads improved performance +8.0% • On a constant currency basis, EBITDA growth of 20.2 €1.6m (+8.0%) 31.7% • EBITDA margin uplift of +0.7ppt, notwithstanding 31.0% increased A&P investment

Dec 16 Dec 17 xx.x% Reported for 2016: €19.6m EBITDA % 28 Italy financial performance

Revenue (€m) 29.4 -4.4% 28.1 • Revenue decline -4.4%, in line with volume decline; pricing stable

• Flavoured vodka category decline continues; Dec 16 Dec 17 impacting Keglevich flavoured sales: • Decline in results, forecasts and higher * Adjusted EBITDA (€m) capital discount rates: impairment of 6.9 €14.9m • Risk flagged at interims -8.2% • Non-cash item; assessment of carrying 6.6 value of goodwill (IAS 36) 0.3 • Non-recurring; investment in market in next 3 years 6.9 0.3 23.4% 22.5% 6.3 Excluding • Redundancy costs of €0.3m to restructure the 6.3 restructuring costs commercial team underlying margin: 23.4% • Excluding €0.3m restructuring costs, Adjusted Dec 16 Dec 17 EBITDA was €6.6m, with underlying margin xx.x% 23.4% held Adjusted* EBITDA % * Adjusted EBITDA is before the exceptional impairment charge 29 Other markets financial performance Slovakia, , Bosnia, Baltic distillery & Exports

Revenue (€m) • Growth in Slovakia revenue, offset by 31.5 -4.7% the equipment failure at the Baltic 30.0 distillery

• Slovakia EBITDA in line with 2016 Dec 16 Dec 17 • International EBITDA marginally down; Adjusted EBITDA (€m) Stock 84 brandy and XO relaunch 5.4 5.1 5.9% improved Bosnia and Croatia 0.5 0.5 • Underlying EBITDA is €5.4m excluding Excluding non-recurring costs relating to: 16.2% 16.3% 4.9 restructuring & one- off costs, the underlying margin: • UK market restructuring 18.7% • Baltic distillery costs, net of insurance Dec 16 Dec 17 • Improvement in underlying EBITDA xx.x% margin EBITDA % 30 Corporate costs

€m Dec 16 Dec 17 Corporate office costs (excl.bonus) 6.4 5.5 Plc related costs including NED, 1.4 1.1 • Further restructuring in Group Operations and Group internal audit and external Legal reduced corporate office and local market communication support costs Group external audit 0.3 0.3 • Reduction in underlying Corporate Costs: -26.1% or Local market support costs including 3.5 1.5 -€3.2m operations, IT and Group NPD projects • Share-based incentives (non-cash item): 2017 Insurance 0.7 0.7 represents open and new awards; In 2016 there were no awards and a write-back of lapsed awards Underlying run-rate 12.3 9.1 Share based incentives and bonus (0.8) 2.8 • Group annual bonus plan triggered in the year due to results; first time since IPO Sub total @ constant FX rates 11.5 11.9 Restructuring costs and other non- 3.1 1.7 • Restructuring costs reflect management changes and recurring costs the restructurings Other including consolidation and FX 1.5 0.8 adjustments Total @ actual FX rates 16.1 14.4

31 Impact of FX movements

Revenue bridge Dec 2016 - 2017 (€m) • Revenue helped by 274.6 261.0 5.5 8.1 currency movements • Revenue impact +2.2%: • Polish Zloty +1.4% • Czech Koruna +0.8%

Revenue 2016 Impact of FX Operating Revenue 2017 activities

Adjusted EBITDA bridge Dec 2016 - 2017 (€m)

51.6 0.4 4.6 56.3 • Adjusting for the impact of FX, Adjusted EBITDA €4.6m higher than 2016

EBITDA Dec 16 Impact of FX Operating EBITDA Dec 17 activities

32 Net Finance Costs

€m 2016 2017 • Dynamic management of cash and debt led to further reduction in interest Interest payable on bank loans 1.8 1.4 payments Bank commissions and guarantees 0.6 0.8 • In 2017, the Group financing facilities were Other net interest expense 0.1 0.3 extended to November 2022 Net Finance costs (pre-FX movement) 2.5 2.5 • Additional bank commissions in 2017 due Foreign currency exchange (gain)/loss (1.5) 0.1 to the extension of the credit facilities

Net finance costs 1.0 2.6 • Strong balance sheet is combined with very flexible finance facilities

• In 2016, FX gain from exchange movements on intercompany loans. These were settled in full in 2016

33 Tax

• Current tax expense and the effective tax rate is lower €m 2016 2017 partly due to a reduction in Italian tax rates Current tax expense 7.0 5.8 • Prior year charge for Czech tax assessment €0.6m is Prior year tax expense (0.4) 0.2 partially offset by €0.4m of provision releases where Deferred tax charge 4.1 5.2 the tax years are now closed or management's assessment of likely outcome has changed Income tax expense 10.7 11.3

Exceptional deferred tax charge - 4.7 • Deferred tax charge increased reflects timings of trade incentives Total tax charge 10.7 16.0 • The exceptional deferred tax charge: a change in tax Effective tax rate % 27.4% 26.7% legislation in Poland ending tax deductions for intangibles amortisation;

• A one-off accounting charge, non-recurring: the value of the liability will not change unless there is a change in tax rate in Poland or the brands are sold

• This is a non-cash item

Note: effective tax rate % excludes impact of exceptional tax charge and the exceptional expenses which are non-taxable 34 Free cashflow

Free cashflow (€m) 48.3 48.6

94.1% 86.3% • Free cashflow slightly ahead of prior year Adjusted cash Adjusted cash flow conversion flow conversion • Lower conversion rate due to leveraging our cash flow strength to gain competitive advantage in seasonal trading in Poland

Dec 16 Dec 17

Net free cashflow (€m)

39.2 • Net free cashflow reduced by the €15.0m Irish 24.2 whiskey investment

- Free cashflow (FCF) calculated as Adjusted EBITDA less Capex, Net Working Capital change, excluding any costs associated with M&A, financing and tax

- Net Free cashflow is used to calculate the cash available for dividends. It is Dec 16 Dec 17 calculated as FCF but less M&A, financing and tax. 35 Net debt

Net debt bridge 31 December 2016 to 31 December 2017 (€m)

59.7 (46.7) (5.2) • Strong net cashflow from 2.5 5.1 53.1 operating activities 15.0 • Final dividend for 2016 and interim dividend for 2017 paid

15.7 • Investment - acquired 25% of Quintessential Brands Ireland Whiskey Ltd for €15.0m 7.0 • Significant liquidity available to the business 1.16x 0.94x • Leverage after investment still below December 2016

Net debt Net cash Income tax Dividends Whiskey Net capital Net interest FX Net debt Dec-16 inflow from paid paid investment exp. & sales paid Dec 17 op. proceeds activities for PPE y.yyx Net debt to Adjusted EBITDA ratio

36 Changes in accounting policies and Year-end

• IFRS 15 (revenue recognition); adopted from 1 January 2018 • If applied in 2017; reduction of revenue by -1.7%, no change in Adjusted EBITDA. Marginal improvement of Adjusted EBITDA margin (+36bps) • IFRS 9 (measurement of financial instruments); adopted from 1 January 2018, no material impact. IFRS 16 (accounting for leases) will be adopted from 1 October 2019 • As previously reported, we will now move to a 30 September year-end • Like other beverage companies: away from peak trading periods • Statutory reporting periods therefore will be: • Interims: 6 month period to 30 June as normal (announcement only) • Expect more marketing investment • 9 month period to September 2018 (announcement and presentation) • Incomplete view given the lack of the seasonal peak 4th calendar quarter • Proforma 12 month results and comparisons will be provided for better understanding of performance, and to re-base • 12 month period to September 2019 onwards (interims in May 2019)

37 Dividends

• We are proposing a final dividend of 5.72€ cents per share (2016: 5.45€ cents per share) • For 2017, total dividends of 8.10€ cents per share (2016:19.62€ cents per share, or 7.72€ cents per share excluding the special dividend) • An underlying increase of +4.9% • At IPO, the stated dividend policy was: 35% of net free cashflow but progressive • 35% of 2017 net free cashflow would have constrained the 2017 total dividend • Going forward we will focus on paying progressive dividends, where cash generation allows

38 Looking forward

Mirek Stachowicz Chief Executive Officer

39 Group strategy at the IPO

• Further develop the Group’s strong brand portfolio in current markets • Utilise purchasing and production capabilities to deliver quality products with a competitive cost advantage • Continue to invest in people and develop management talent • Expand distribution capability in current and new markets • Continue to invest in attractive markets with strong growth potential • Pursue the significant opportunities for acquisitions across Central and Eastern Europe

40 Our strategy looking ahead

We are refocusing our strategy from the IPO to emphasise the following priorities:

Premiumisation Millennials Digital M&A

Aim 30% of Group revenue to Attract internationally-minded Regularly communicating with Consider larger, more material come from premium brands consumers to our local 75% of targeted consumers M&A opportunities brands through digital channels

How • Whisky strategy • Marketing insight investment • Combined IT/Digital strategy • Cost and growth synergies • New NPD process • Provenance of local brands • Common digital marketing • Brand portfolio enhancement • World class brand partners • Digital engagement architecture • Geographic expansion • High Potential (HIPO) • Digitalised processes • Strategic rationale management pipeline

On a solid foundation of:

Strong governance: Engaged people: Focused resources: Small company agility: • compliance • empowerment • sales and operational planning • flat structures • ethics • talent management (S&OP) process • devolved responsibility • transparency • line of sight • insight-driven • speed • strategic planning 41 Concluding remarks

• Our plans are based on building shareholder value despite the continuing price pressure in Polish mainstream vodka • We are on the right track to achieve this by: • growing critical mass in Poland • accelerating organic growth of our existing businesses through premiumisation of our product range, deployment of digital tools and attracting millennials to our local brands • investing strongly and consistently in brands in Italy • Becoming a leading player in whisky in our core markets with our partner and own brands • seeking attractive M&A opportunities

42 Q&A

43