PROFILE OF INTERBRANDS ROMANIA

Interbrands Romania Mission Be the best full service import, logistics and distribution company, by any standards Interbrands Romania Business Model Core Businesses:
- Tobacco
- Personal Care
- Grocery
- Beauty & Handsome
- Food
- Petfood
- Pharmacy
- Electrics

Interbrands Romania Business Model Main Partnerships:
- British American Tobacco - 1997
- Braun (Now part of Procter & Gamble - 2006
- Cadbury - 2007
- Gallina Blanca - 2006
- Ghe Stubeanu - 2005
- Gillette (Now part of Procter & Gamble) – 1999
- J Production Comserv - 2005
- Kotanyi - 2002
- Nestlé - 2000
- Nestlé Purina PetCare - 2000
- Orkla Foods (Including Ardealul) – 2004
- Pambac - 2006
- Procter & Gamble - 1993
- Rockstar - 2006
- SES Victory Impex – 2005
- Vodafone - 2006

Interbrands Romania Business Model:
- Maximum synergy and cost sharing
- General Management & Support Departments
- Headcount 133-136 since 2003
- Warehousing & Logistics
- 8 Main DCs (2007: 7 New, 3 Greenfield), 8 Transit Points, 9 Mini DCs
- Less people, less rent, less WC in stock
- New HQ Office Bucharest end 2007
- Integrated IT systems and support
- Wiz, V3, Voyageur
- IT (64 Servers, 355 PCs, 45 Laptops, 314 Voyager PPCs, 299 V3 PPCs)
- Process Analysis and simplification : Six Sygma
- Evaluating new ERP: SAP/Oracle? Investment some Euro 1.1 - 1.5 mio
- WMS (Bucharest Q107, then roll out)
- Fleet: 1,200 Vehicles (2002: 1,450)
- Investments: $28 million start to end 2005
- 2,200 People (2002: 2,500)
- 4,000 SKUs (2002: 700)

Interbrands Romania Business Model:
- Interbrands margin: Fixed & Variable
- In some cases guaranteed pre-tax Profit, if KPIs achieved
- Principals assume:
- Product Development
- Manufacturing
- Marketing
- Interbrands assumes investments
- Sales
- Infrastructure
- Fleet
- IT
- Profitability and cash flow variable

Summary: We share the good & the bad in a long term mutually sustainable partnership

Interbrands Romania Structure
- Dedicated sales forces
- Key Accounts
- Van Selling
- Pre-Selling
- Shared Sales Forces
- Pharmacy Division (2000)
- Retail Van Division (2002)
- Food Division (2002)
- Sales Force Management: Adapted to requirements

Interbrands Romania Structure
- Universes
- BAT Dedicated 38,000 doors
- Retail Shared 10,000
- P&G Beauty & Handsome Dedicated 3,600
- Pharmacy Shared 3,100
- P&G Grocery Dedicated 3,000
- NPP Dedicated 1,600
- Food Shared 1,000
- Braun Dedicated 700
- Total Doors e.g. Cigarettes 90,000
- Project 20,000: P&G Grocery expansion project

Interbrands Romania 2006 Forward
- The Vision
- Double the top line at least every 4 years
- Sales of $ 2 Billion by 2010 Interbrands Romania 2006 Forward
- The Strategy
- Further increase professionalism & productivity
- Switch from a Limited Liability to a Joint Stock Company
- Higher focus on ‘ full service ’
- Logistic Platforms:
- Bucharest March 2007
- Timisoara May 2007
- Merchandizing Division
- Drive organic growth and new opportunities
- Growth of core businesses
- Expansion of Retail Division / Rural penetration (+20,000): Supermarket On wheels
- Diversification Pharmaceuticals; Pet medicines and accessories, Packaged foods & confectionary; White goods
- Downside: Loss of focus
- Upside: Multi-Principal dependence; Accelerate sales & profit growth rate; Further reduce shared costs
- Broad geographic expansion: Focus on neighbouring markets  Greenfield, JVs, Associations
- Hub approach, shared support e.g. IT, HR, Training College.

Interbrands Romania Conclusion
- A Road Map to Success
- First Class partners/brands
- Long-term partnerships
- Limited conflict of interest
- Critical mass / Scale
- Sales Forces: Dedicated to Channels and depth
- Business transparency
- Sharing fixed costs
- Investments: Fleet, Logistics, IT systems
- Quality Management