APU - HISTORY

APU was established in 1924 by the Government of Mongolia as a state monopoly in vodka production. In 1992, it was re-organized as a joint stock company and 49 percent of its shares were floated on the Mongolian Stock Exchange. The company was fully privatized in 2001, when the current management took over the stewardship of the oldest enterprise of Mongolia.

2002-2004 were years of full scale upgrade and modernization of all systems: equipment, technologies, management, and culture. An expansive investment program and unwavering efforts by the production and management team resulted in the todays state-of-the-art facility.

APU - TODAY

APU, the top national producer building on its portfolio of premium brands and culture of quality and innovation, will continue to develop internationally.
APU and its associate companies employ over 1300 highly trained professionals. Products & brands: more than 60 Total production & sales: 79.0 million liters Annual turnover around USD 200 million Company value increase - Share price doubled in 2011
90,000 Sales volume/mln.litre/

One of the largest tax-payers in Mongolia

80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 2010 61,6 mln

78,9 mln
milk&juice beverages beer spirit vodka

2011

APU PLANTS
VODKA PLANT
Fully modernized in 2004 - Capacity: 12 million liters of finished products per year Vodka plant expansion in 2010- Capacity: 20 million liters of finished products per year Capacity utilization 80% German, Italian equipment Own pure alcohol/spirit supply

1.About Mongolia

2.Company profile plants

BREWERY 3.APU

Fully modernized in 2004 - Capacity: 18 million liters of finished products per year Brewery expansion in 2007 - Capacity: 25 million liters per year Brewery expansion completed in May 2010 - Capacity: 50 million liters per year Capacity utilization above 90% German equipment: GEA, Krones Diversified packaging: glass bottle, PET bottle, KEG, aluminum cans

4.Vodka brands portfolio.

5.Beer brands portfolio

WATER AND SOFT DRINK PLANT
Fully modernized in 2004 - Capacity: 11-13 million liters per year Capacity utilization 100% German, Italian equipment PET line: 2L, 1.5L, 0.5L, 0.33L

6.Beverage brands portfolio

NATURE AGRO SPIRIT DISTILLERY

7.CHINGGIS KHAN Vodka 8.Research Summary Consumption liters of pure Greenfield project completed in 2008-- Capacity: 15 thousand& Barrier alcohol per day Spirit distillery expansion in 2011 - Capacity: 23 thousand liters of pure alcohol per day, total 9.Research Summary - Market Share 38 thousand liters
Capacity utilization 60% German equipment Rainer Schmidt The only distillery in Mongolia producing grade Alfa pure alcohol

10.The Dairy factory project 11.ECOLEAN line

TETRA PAK PACKAGED MILK AND JUICE PRODUCTION

Powder milk and fruit juice concentrate processing Tetra Pak packaging line Annual capacity 8 million liters Emphasis on new product development

12.TETRA PAK line

VODKA BRANDS PORTFOLIO

Chinggis Khan Soyombo Khar Suvd Altan Gagnuur Yamaakhai Bolor/classic, orange, cranberry/ Arkhi Altan Turuu Eruul ultra premium /5cl,70cl, 75cl, 1l, 40% alc.vol/ super premium /75cl, 39.5% alc.vol/ premium /75cl, 38% alc.vol/ premium /75cl, 39% alc.vol/ premium /75cl, 39% alc.vol/ premium /75cl, 39% alc.vol/ premium /75cl, 50cl, 35cl, 38% alc.vol / low premium /75cl, 50cl, 39.5% alc.vol/ standard /75cl, 50cl, 35cl, 38% alc.vol /

BEER BRANDS PORTFOLIO

Altan Gobi 1.About Mongolia Khar Khorum /dark/ Fusion Niislel 2.Company profile Hops and Malts Borgio Gold Borgio 3.APU plants /33cl, 50cl , 50cl CAN, 5l KEG, 5.1% alc.vol, draft/ /33cl, 50cl, 50cl CAN, 5.3% alc.vol, draft/ /33cl, 50cl, 5.0% alc.vol,draft/ /33cl, 50cl, 1.5l PET, 5.0% alc.vol, draft/ /draft/ /33cl, 50cl, 5.2% alc.vol, draft/ /33cl, 50cl, 2l PET, 5.5%alc.vol, draft/ /7 different brands, 33 types of packaging/

4.Vodka brands portfolio.

5.Beer brands portfolio

6.Beverage brands portfolio 7.CHINGGIS KHAN Vodka 8.Research Summary - Consumption & Barrier 9.Research Summary - Market Share 10.The Dairy factory project 11.ECOLEAN line 12.TETRA PAK line

SOFT DRINKS BRANDS PORTFOLIO

Soft Drinks Terelj Selenge Juice

/0.5l, 1.5l PET bottles/ /0.5l, 1.5l PET bottles/

Water Pure Water

/330ml, 500ml, 1.5liters PET bottles/

Frutta Multifruit /1 liter Tetra Pak/ Frutta Orange /1liter Tetra Pak/ Frutta Apple /1 liter Tetra Pak/

Milk Pure Milk

/1 liter Tetra Pak/

APU market share

APU market share (top three competitor on the market)

2011

2012

PRODUCTION OVERVIEW
APU Production:
Production (in thousand hectoliters) 2009 Vodka Beer Soft Drink Milk, Juice Pure alcohol Total 91 240 52 13 41 438 2010 133 289 93 54 48 618 2011 157 438 70 61 63 789 2012 plan 197 499 96 61 81 935

Total Production /MNT billion/:

144% 26% 40%
300.0 200.0 100.0 2009 2010 2011 estimate 2012 plan

37%

125.8

172.5

242.0

307.0

DISTRIBUTION NETWORK

5010 sales points

Total number of APU Sales points: 7016 points nation wide

DISTRIBUTION NETWORK (Ulaanbaatar)

Ulaanbaatar

Supermarkets & Store

On trade

Soft drink

Draft beer

Wholesales centers & contractual retailers

Sales Channels

12 sales agents

9 sales agents

18 sales agents

1 sales agent

4 direct sales routes

APU Sales Agents

1572

1205

1934

152

147

Sales points

Total: 5010 sales points, 99 delivery trucks

DISTRIBUTION NETWORK (Rural Area)

Rural Area (21 provinces, 342 soums)

Western Region

Eastern Region

Central Region

APU Sales Offices-24

APU Sales Offices-24

APU Sales Offices-21

594 sales points

612 sales points

800 sales points

Total: 2006 sales points, 38 delivery trucks