BUSINESS UPDATE RUSSIA & UKRAINEBUSINESS UPDATE RUSSIA & UKRAINE

The 2The 2ndnd Quarter and 1Quarter and 1stst Half 2004Half 2004

September 2004September 2004

2

Operating Review - 2nd Quarter/1st Half 2004

Outperforms the market both in Russia and Ukraine

Focus on higher margin brands

Extremely strong performance of the global brands

along with the local premium brands

Increased market share both in Russia and Ukraine

The highest net income result

Continued brand and packaging innovations

3

SUN Interbrew Market Share - Russia

Source: SIL estimation, State Statistics Office

14.80%

16.70%

10.00%15.00%20.00%

2Q 2003 2Q 2004

14.00%

16.40%

10.00%15.00%20.00%

1H 2003 1H 2004

Second Quarter 2004

First Half 2004

16.7%

Russia

4

Market Growth. Russia

Vs. the same period of previous year

Source: SIL estimation, State Statistics Office

-5%

-8%

-2%

3%

11%9%

7%5%

9%

25%

6%

33%

20%18%

16% 16%

6%

13%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

January

February

March

April

May

June

July

August

September

October

Novem

ber

Decem

ber

January

February

March

April

May

June

2003 2004

Q2 2004 Market growth was 11%

HY 2004 Market growth was 14%

Q2 2004 SUN Interbrew’s volume growth was 24% HY 2004 SUN Interbrew’s volume growth was 37%

5

SUN Interbrew Market Share - Ukraine

Source: SIL estimation, Ukrpivo, Derzhcomstat

Second Quarter 2004

First Half 2004

33.60% 34.50%

10.00%

20.00%

30.00%

40.00%

2Q 2003 2Q 2004

33.90% 34.40%

10.00%

20.00%

30.00%

40.00%

1H 2003 1H 2004

34.5%

Ukraine

6

Market Growth. Ukraine

Vs. the same period of previous yearSource: Ukrpivo, Derzhcomstat

17%

-6%

7%

12%

31%

34%

-1%

2%

15%13%

2%

29%

5%

24%

35%

21%

-4% -3%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Janu

ary

Feb

ruar

y

Mar

ch

Apr

il

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nov

embe

r

Dec

embe

r

Janu

ary

Feb

ruar

y

Mar

ch

Apr

il

May

June

Q2 2004 Market growth was 3%HY 2004 Market growth was 9%

2003 2004

Q2 2004 SUN Interbrew’s volume growth was 6% HY 2004 SUN Interbrew’s volume growth was 11%

7Source:SIL estimation, State Statistics Office, Business Analytica

Beer Market Volume by Pack. Russia

Bottles share declines at the expense of PET

6% 6% 6% 5% 6% 6%

53% 50% 50% 49% 47% 45%

31% 32% 32% 33% 35% 37%

11% 11% 12% 12% 12% 12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004

Can

PET

Bottle

Keg

8

Beer Market Volume by Pack. Ukraine

Source: Ukrpivo, Derzhcomstat

12% 16% 19% 13% 12% 15%

59%57%

58%57% 55% 54%

28% 25% 22%28% 32% 29%

1% 2% 1% 2% 1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004

Can

PET

Bottle

Keg

9

RUSSIAMultipacks

Test Market: 2x2 packs for 50cl bottles for 3 brands: Stella Artois®, Beck’s® and Staropramen®

Production in Klin from May 2004

UKRAINELaunch of Rogan Kampai dry beer and

Chernigivske Bila Nich in 0.5l BNR. Volume sold in Q2: 13.87 kHl and 14.38 kHl

In June 2004 launch of Chernigivske Bagryane in KEG 50

Innovation in Brand Varieties & Packaging

10

STELLA ARTOIS® :

RUSSIA52% volume growth in Q2 2004 vs. Q2 2003National TV campaign Cannes Film festival and Movie sponsorship campaign in pressBeer draught Master for Amateurs consumer promotion in 7 Mio+ citiesConsumer program in cinemas in Moscow and all over Russia

UKRAINE57% volume growth in Q2 2004 vs. Q2 2003

“The Day After Tomorrow” Movie promotion: joint with 20th Century Fox: TV & radio & outdoorPrint campaign in cinema and glossy magazinesNational Cinemas campaign

Marketing Q2 2004 milestones

11

BECK’S®:

RUSSIAVolume growth 107% vs. Q1 2004Launch of multi-packs in key accountsNational TV campaign in AprilBeck’s® club program continued in Moscow Distribution push with special incentive programs for distributors and retailAfter launch in March Keg share gain 6% of total brandBeck’s® street cafes installation

UKRAINEBreak Glass and Droplet TV campaignsOOH: city-lights program in 6 key citiesBill-board placementPOS materials, fridges and displays placement program

Marketing Q2 2004 milestones

12

STAROPRAMEN®:

65% volume growth in Q2 2004 vs. Q2 2003

Staropramen® image TV campaign continued till

June

Keg launch supported by consumer program in

on-trade “Czech days with Staropramen®”

Marketing Q2 2004 milestones - Russia

13

HOEGAARDEN® & OTHER BELGIAN SPECIALTIES :

In Q2 2004 SIL Russia took under full control

import of Belgian specialties

Belgian specialties in bottles were launched in

March and kegs in May

Hoegaarden® Kegs sales show good dynamics

and occupy 35 % of total brand sales

Marketing Q2 2004 milestones - Russia

14

SIBIRSKAYA KORONA:

63% volume growth in Q2 2004 vs. Q2 2003National TV campaign “Yantarnoye”

Start of “Birthday with Siberian Crown” promo

6 biggest cities

high response rate – 800 participants per day

word of mouth effect

Marketing Q2 2004 milestones - Russia

15

KLINSKOYE:

27% volume growth in Q2 2004 vs. Q2New Klinskoye Arriva extension in

transparent bottle is the main driver for Klinskoye growth

“Break through” in the East with +119% volume growth in Q2 2004 vs. Q1 2003.

Marketing Q2 2004 milestones - Russia

16

TOLSTIAK:

5% volume growth in Q2 2004 vs. Q2 2003

New Tolstiak Grechishnoye variant reached 4% in brand portfolio and became #1 Buckwheat beer in the world

Advertising campaign on TV

Marketing Q2 2004 milestones - Russia

17

CHERNIGIVSKE:Chernigivske market share in Q2 2004 grew to 18,9% (vs. 15,2% in Q2 2003)

Quality TV campaign around Klitschko fightsImage TV campaign continued Launch of Chernigivske Bagryane – Ukrainian Red beer – in 1lt PET

CHERNIGIVSKE Bile :

New TV campaign

Launch of Bila Nich – dark unfiltered line extension of Bile – in 0,5 lt glass bottle

Marketing Q2 2004 milestones - Ukraine

18

ROGAN:Rogan market share in Q2 2004 grew to 10,9%

(vs. 9,7% in Q1 2004)

“Hello, Rogan!” national consumer promo campaign launched for April-July in partnership with Kyivstar -one of the two biggest Ukrainian mobile communications operators

New Rogan line-extension launched – RoganKampai, bottle 0,5

Regional consumer promo campaign launched in on-trade in North-East and South-East linked to European Football Championship 2004

Rogan Legke switched to BNR bottle

Marketing Q2 2004 milestones - Ukraine

19

Volume

Net Sales

Gross Margin

Operating Income

EBITDA

EBITDA Margin

Net Income

Key figures of the second quarter 2004*

88.7%+10.311.621.8

-1.7%25.8%24.1%

37.9%+14.337.651.9

46.7%+10.221.832

-3.7%44.6%40.9%

47.8%69.8146215.7

17.5%+0.94.95.8

Q2 2004 Q2 2003 Change Change, %

*Figures are given in m hl, €m, %

20

Key figures of the first half 2004*

344.8%+15.54.520

0.1%19.7%19.8%

52.8%+23.945.269.1

87.8%+17.519.937.3

-2.4%41.3%38.9%

52.5%120.3229.1349.4

28.3%+2.17.59.7

HY 2004 HY 2003 Change Change, %

Volume

Net Sales

Gross Margin

Operating Income

EBITDA

EBITDA Margin

Net Income

*Figures are given in m hl, €m, %

21

Cost Management

HY 2004 HY 2003 Change

Gross profit, €/hl

Sales, marketing and distribution costs/Net sales,

%

General and Administrative expenses/ Net

Sales,%

-1.4%5.3%3.9%-0.9%4.3%3.4%

-3.0%27.3%24.3%-2.7%25.3%22.6%

11,0%12.614.014.5%13.315.2

Q2 2004 Q2 2003 Change