EX-99.1 2 dex991.htm POWERPOINT PRESENTATION Powerpoint Presentation
Family of Fine Beverages
Exhibit 99.1

1
Forward looking statements
This
presentation
contains
forward-looking
statements
within
the
meaning
of
the
Private
Securities
Litigation
Reform
Act
of
1995.
Forward-looking
statements
involve
known
and
unknown
risks
and
uncertainties
that
may
cause
the
actual
results,
performance
or
achievements
of
CEDC
to
be
materially
different
from
any
future
results,
performance
or
achievements,
expressed
or
implied,
by
forward-
looking
statements.
Investors
are
cautioned
that
forward-looking
statements
are
not
guarantees
of
future
performance
and
that
undue
reliance
should
not
be
placed
on
such
statements.
CEDC
undertakes
no
obligation
to
publicly
update
or
revise
any
forward-looking
statements
or
to
make
any
other
forward-looking
statements,
whether
as
a
result
of
new
information,
future
events
or
otherwise
unless
required
to
do
so
by
the
securities
laws.
Investors
are
referred
to
the
full
discussion
of
risks
and
uncertainties
included
in
CEDC’s
Form
10-K
for
the
fiscal
year
ended
December
31,
2004,
and
in
other
periodic
reports
filed
by
CEDC
with
the
Securities
and
Exchange
Commission.

2
Who is CEDC?
Originally founded in 1990
NASDAQ listed since 1998 with current market
capitalisation of over US$1 billion
The
leading
producer
of
vodka
in
Poland
and
the
4th
largest producer of vodka worldwide.
The
leading
distributor
and
importer
of
alcoholic
beverages in Poland.
2006 forecasted sales of US$906m to US$931 and
forecasted EPS of US$1.94 to US$2.14

3
Who
is
CEDC?
(cont’d.)
Operate
largest
nationwide
next-day
alcoholic
beverage
delivery
service
with
15
distribution
centers
and
87satellite
branches
located
throughout
Poland.
Distribute
over
700
brands
of
alcoholic
beverages
consisting
of
a
wide range of alcoholic beverages.
Net Sales CAGR of 45% over the last five years
EPS CAGR of 90% over the last five years
Over 2,900 employees
in Poland

4
Market Position of CEDC
•
Leading
importer
of
alcoholic
beverages
in
Poland,
-
No. 1 importer of wine
-
No. 1 importer of beer
-
A leading importer of spirits
•
Leading
distributor
of
alcoholic
beverages
in
Poland
-
No. 1 distributor of domestic spirits
-
No. 1 distributor of wine
•
Leading
producer
of
vodka
in
Poland
-
No.
1
Mainstream
Vodka
in
Poland
–
Absolwent
-
No.
1
Premium
Vodka
in
Poland
–
Bols
-
No.
2
Flavoured
Vodka
-
Zubrowka

5
CEDC is the leading Vodka producer by value
Source: AC Nielsen; Rinki Alkoholowe
Vodka producers market share by value
Market shares for key brands by value
Source: AC Nielsen
Rank
Brand
Segment
Producer
Value
Share
1
Absolwent
Mainstream
CEDC
15.0%
2
Starogardzka
Econony
Sobieski
11.1%
3
Bols
Premium
CEDC
7.1%
4
Gorzka Zoladkowa
Mainstream
Polmos Lublin
5.3%
5
Sobieski
Premium
Sobieski
4.8%
6
Luksusowa
Mainstream
Vin & Spirit
4.3%
7
Krakowska
Econony
Sobieski
4.1%
8
Zubrowka
Mainstream
CEDC
3.5%
9
Soplica
Mainstream
CEDC
3.2%
10
Balsam Pomorski
Econony
Sobieski
3.1%
CEDC
32%
Sobieski
29%
Vin & Spirit
8%
Pernod
3%
Diageo
3%
Brown Foreman
3%
Other
22%

6
CEDC is Leading Importer of Beers, Wines and
Spirits
Metaxa
(1)
Rémy Martin cognac
Passoa Liqueur
St. Rémy brandy
Cointreau Liqueur
Bols Liqueurs
(1)
Grant’s whisky
Jim Beam bourbon
(1)
Jaegermeister bitter
Jose Cuervo
Camus Cognac
Raynal
Sierra
Teacher’s
Sauza
Spirits
Notes: (1) Hold a leading position in their respective sectors
Amsterdam
Bitburger
Budweiser
Corona
Foster’s
Franziskaner
Grolsch
Guinness
Kilkenny
E&J Gallo wines(1)
Sutter Home
Rosemount
Veuve Clicquot
Rothschild
Laroche
Moreau & Fils
Codorniu
Torres
Banfi
Frescobaldi
Penfolds
Concha y Toro
Georges Duboeuf
Piper Heidsieck
Beers
Wines
Above represents only partial selection of products imported by CEDC

7
CEDC Distribution Network
•
Distribution platform with a truly national footprint:
-
15 distribution centers
and 87 satellite branches
-
450 sales people visiting both on and off-trade clients
-
37,000 outlets serviced
•
National coverage is important due to:
-
Poor road infrastructure
-
Local stores (traditional trade) are expected to remain key
point of purchase for alcoholic beverage products
•
Next largest distributor, Alti Plus (5% market share) has a
multi-regional rather than national network
•
Producers are highly dependant on distributors with national
footprint
-
Above the line advertising not allowed in Poland

8
450 Salesman serving over 37,000 direct
customers
CEDC National Sales Network
Export, 1%
Horeca, 2%
Gas Stations, 5%
3rd Party
Distributors *, 25%
Hypermarkets &
Discount Stores,
25%
Traditional Trade,
42%
* -
3
party
primarily
sales
made
to
traditional
trade
rd

9
Three Year
Strategic Objectives
•
Expand export opportunities
-
Zubrowka
represents a significant opportunity to expand exports
-
US market represents key area of opportunity
•
Accelerate direct sales of our own brands
-
Sales
force
to
focus
on
selling
Bols
and
Bialystok’s
brands
•
Reduce cost of goods sold
-
Leverage purchasing power to reduce cost of raw materials
-
Build rectified spirit plant by end of 2006 early 2007
•
Reduce key operating overheads
-
Reduction of bad debt expense
-
Combine purchasing power to reduce key SG&A costs
•
Develop new brand opportunities
-
Introduction
of
new
brands
and
bottling
of
bulk
spirits
and
wine
for
own
and
third-party
brands

10
•
Purchase profitable niche brands to fill existing production capacity
-
Mid single digit multiples
•
Continue Acquisitions of Distribution Companies / Assets (Buy versus Build)
-
Target at least US$100 million of annualized net sales
-
Continue to consolidate satellite branches
•
Expand higher margin import portfolio
-
Combination of CEDC’s
and Bols’
exclusive imports strengthens position as a “one stop shop”
Three
Year
Strategic
Objectives
(cont’d)

11
Net sales
(1)
EPS (fully diluted)
Strong historical financial and operating
performance
2003
2004
2005 (est.)
2006 (est.)
2002
Notes:
(1) Net of excise tax
(2)
Excludes
the
impact
of
acquisition
one-off’s
that
occurred
in
2005
of
$0.46
per
fully
diluted
share.
Without
taking
into
account that impact, U.S. GAAP EPS fully diluted per share guidance is $1.11 to $1.21.
2001
$ 178,236
$0.25
$ 292,965
$0.66
$ 429,118
$0.96
$ 580,744
$1.34
$ 730-760 million
$1.57 –
1.67
$ 906-931 million
$1.94 –
2.14
(2)

12
Stock Performance
•
CEDC is listed on NASDAQ stock exchange since 1998
•
Average daily trading value over US$ 6 million
•
CEDC’s market cap as of  November 29, 2005 was
US $1.03 Billion 
•
Our main shareholders are 
-
US-based managers
11.1%
-
Poland-based managers
6.2%
-
Botapol Management B V        
7.1%
-
Takirra Investment N V
7.1%
-
Institutions
53%
›
Fidelity Investments International
›
Oberweis
Asset Management
›
Morgan Stanley Investment Management
-
Free float
15.5%

13
Summary
•
#1 producer and marketer of vodka in Poland
•
#1 distributor of alcoholic beverages in Poland
•
#1 importer of high margin spirits, wine and beer in Poland
•
Strong and growing cash flow and profits