EX-99.1 2 dex991.htm POWER POINT SLIDES Power Point Slides
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,
2005, and in other periodic reports filed by CEDC with the Securities and Exchange
Commission.

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VISION
Continued leadership in the beverage
manufacturing and distribution
industry, by
providing our customers with products of
high
value while maintaining integrity and
commitment to deliver shareholder value

3
Who is CEDC?
Originally founded in 1990
NASDAQ listed since 1998 with current market
capitalisation of almost 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.
Operate largest nationwide next-day alcoholic
beverage delivery service with 15 distribution centers
and 78 satellite branches located throughout Poland

4
Who is CEDC? (cont’d.)
Distributes
over
700
brands
of
alcoholic
beverages
consisting
of
a
wide range of alcoholic beverages.
Over
2,900
employees
in
Poland
Net Sales CAGR of 43% over the last five years
EPS CAGR of 81% over the last five years
2006 forecasted sales of US$931 million to US$956 million and
forecasted EPS of US$1.90 to US$2.10

5
2005 Polish Drinks Industry Overview
-
Total alcohol market growth in low single digits primarily led by
imports (beer, wine and spirits) and domestic beer
-
Spirit excise increase of 3% in February 2005 led to softness in the
domestic spirit market (no perceived impact on imports)
-
CEDC has changed the spirit market landscape by purchasing the two
most profitable distilleries in Poland
-
Continued consolidation in the wholesale trade
-
Smaller spirit wholesalers continue to struggle to maintain margin

6
Transformational Year for CEDC
-
Transformed CEDC from leading distributor to leading producer and
distributor
-
Completed acquisitions of the two most profitable distilleries in
Poland
-
Obtained
control
of
32%
of
the
vodka
market
in
Poland
with
4
of
the
top 10 brands
-
The acquisition of Bols
together with our existing import portfolio
created the largest import portfolio in Poland
-
The acquisition of Polmos
Bialystok
and Bols
enabled CEDC to tap
into growing international vodka market

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Rational for Transformation
OFFENSIVE
-
Benefits for sales force through
brand ownership
-
Margin expansion
-
Retail/wholesale leverage
-
Export potential from brand
ownership
-
Complimentary portfolio of vodka
brands
-
Larger import portfolio in growing
segment
-
Production synergies
DEFENSIVE
-
Control our own destiny through
brand ownership
-
Control of the margin table from
producer to retailer
-
Market entry for new players
extremely difficult

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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

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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
Sobieski, 28%
Polmos Lublin, 8%
Vin & Spirit, 7%
Pernod, 3%
Diageo, 3%
Brown Forman, 3%
Other, 17%
32%
Excluding the economy sector, CEDC has over 46%
of the vodka market by volume
Rank
Brand
Segment
Producer
Value
Share
1
Absolwent
Mainstream
14.8%
2
Starogardzka
Econony
Sobieski
10.5%
3
Bols
Premium
6.8%
4
Gorzka
Zoladkowa
Mainstream
Polmos
Lublin
6.3%
5
Sobieski
Premium
Sobieski
4.8%
6
Soplica
Mainstream
3.5%
7
Luksusowa
Mainstream
Vin
& Spirit
3.5%
8
Krakowska
Econony
Sobieski
3.4%
9
Zubrowka
Mainstream
3.2%
10
Balsam Pomorski
Econony
Sobieski
3.0%

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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
(1)
Teacher’s
Sauza
Spirits
Notes: (1) Hold a leading position in their respective sectors
Amsterdam
Bitburger
Budweiser
Corona
Foster’s
Franziskaner
Grolsch
Guinness
Kilkenny
Evian
Apollinaris
E&J Gallo wines
(1)
Sutter Home
(1)
Rosemount
Veuve Clicquot
Rothschild
Laroche
Moreau & Fils
Codorniu
Torres
Banfi
Frescobaldi
Penfolds
Concha y Toro
(1)
Georges Duboeuf
Piper Heidsieck
Beers/Water
Wines
Above represents only partial selection of products imported by CEDC
CEDC Exclusive Import Portfolio

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Leading National Distribution Network
Distribution platform with national footprint:
15 distribution centres and 78 satellite branches
700 sales people visiting both on and off-trade clients
40,000 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 (7% 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

12
National Sales and Marketing Teams
•
Focused Marketing Team of 28 people to develop own and agency brands in
Poland
•
Three focused National Sales Organizations
›
On Trade Sales –
Key Brand Building Opportunity
-
Over 70 people employed in the only dedicated On-Trade sales team in Poland
-
Leverages the key brand building opportunities offered by the HORECA channel
›
Key Account Sales Team
-
Dedicated team of 80 people across all CEDC companies focused on
serving key accounts
-
In
house
team
of
merchandisers
supported
by
additional
outsourced
team
–
serving
top
200
accounts
for
all
key
brands
-
National coverage of CEDC allows us to serve nationwide customers on all levels both at headquarter level and store
level
›
Traditional Trade Sales Team
-
National sales force of 550 people focused on dominant channel in Poland
-
Ability to execute national promotions and merchandising standards across Poland with our 40,000 direct customers

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CEDC Brands –
Bols
Vodka
#1 Premium Vodka in Poland
Sales of more than 1.5 million cases
Most profitable brand in Poland
Re-launch of new Bols
flavors with new package
design in 1
st
quarter of 2006
License production in Russia planned for 2007

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CEDC Brands –
Zubrówka
Considered to be a vodka in a category of its own in Poland with
a unique flavor and heritage
Leading brand for export
Very loyal base of consumers
Strongly connected with tradition and Polish
culture
Considered one of the top icons of Poland
Approaching 1 million cases

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CEDC Brands –
Soplica
One of the oldest vodka brands in Poland
Associated with Polish nobility and heritage
Currently exported to markets such as UK
and Mexico
New package design and price positioning
executed in August 2005 –
30% growth
since re-launch
New line extensions of flavors launched this
year in 1
st
quarter of 2006
On target to reach 1 million cases in 2007

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CEDC Brands –
Absolwent
#1 Vodka in Poland for last 7 years
One of the top 10 selling vodka brands in the
world
High quality at a reasonable price
Brand has continued to outperform the
category
Positioned in the mainstream
Close to 4 million cases sold

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Accelerate direct sales of our own brands
700 strong sales force to focus on selling own brands and
imports
Leverage our 40,000 direct customers to grow sales of our
brands
Utilize dedicated on-trade sales force to execute brand
building in on trade outlets
Dedicated National Key Account and Off Trade sales force
to expand distribution and product listings
Business Strategy

18
Reduce costs of goods sold
Leverage purchasing power to reduce cost of raw materials
Largest spirit purchaser in Poland
Purchase over 120 million each of bottles, caps and labels
per year
Build rectified spirit plant by mid 2007 at our two production
sites -> payback within 3 years
Business Strategy

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Reduce key operating overhead expenses
Combine purchasing power to reduce key SG&A costs
Continue to consolidate satellite branches
Consolidate back office of CEDC in 2008
Reduction of headcount by 10% by 2008
Reduction of bad debt expense at production level through
new trade terms introduced December 1, 2005
Business Strategy

20
Develop new brand opportunities
Introduction of new brands for own and third-party brands
Current excess production capacity gives opportunity for
growth of new brands for next three years
Restricted advertising laws in Poland emphasizes new
brands to be developed through distribution
Post rectification (lowering of spirit costs) more aggressive
move into private label and economy sector
Business Strategy

21
Continued Acquisitions of Producers/Brands and
Distributors
Grow current 32% production share to 40% by acquiring
niche brands and growth of own brands
Utilize excess capacity with acquired niche brands
Targeting mid-single digit multiple for brand acquisitions on
a forward 12 month basis
Acquire distributors with at least $100 million in annualized
sales for 2006 and 2007
Business Strategy

22
Expand higher margin import portfolio
Combination of CEDC’s
and Bols’
exclusive imports
strengthens position as a “one stop shop”
Rapid on premise expansion in Poland drives growth
opportunities for imports
Our direct distribution and strong sales force makes us
more attractive for additional agency brands
Strong GDP and purchasing power growth in Poland will
fuel consumer demand for imports
Business Strategy

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•
Expand export sales
Vodka represents the fastest growing category world wide
Grow Zubrowka
exports to reach 750,000 cases within 5
years (current base 170,000 cases)
Expand export sales for Soplica
to 200,000 cases within 5
years (current base 30,000 cases)
New distributor agreements to be signed in 2006
representing greater value for CEDC
Expand geographical reach of Zubrowka
from current small
base
Business Strategy

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Zubrówka
–
New Export Package
Increase of net
contribution  per case by
40%

25
Target opportunities outside of Poland
Regional acquisition opportunities (Central and Eastern
Europe)
Target companies with similar business model as CEDC
Leverage our know how and business relations to utilize in
other markets
License production of Bols
in Russia
Business Strategy

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CEDC Margin Expansion Opportunities
Through brand ownership CEDC is able to expand gross margins to over
20% nearly double historical pure distribution margins
Additional opportunities for margin expansion exist
›
Further developing sales of own brands
›
Expanding export sales
›
Continuing to grow import sales
›
Further acquisition of brands

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CEDC Warsaw Dual Listing
CEDC will complete a secondary listing of its shares on the
Warsaw Stock Exchange
-
Open to new institutional investors –
EU, Regional and Local
-
Allow CEDC to tap into local retail investors
-
Increase liquidity of CEDC shares
-
Facilitate
further
buy
out
of
Polmos
Bialystok
minority
shareholders

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Net sales
(1)
EPS (fully diluted)
EBITDA
Strong Historical Financial And Operating
Performance
2003
2004
2005
2002
Notes:
(1) Net of excise tax
(2) Excludes the impact of acquisition one-off’s and foreign exchange
(3) Excludes the impact of new acquisitions and the impact of foreign exchange
$ 293 million
$0.66
$14 million
$ 429 million
$0.96
$24 million
$ 580 million
$1.34
$32 million
$ 749 million
$1.63
$56 million
(2)
2006
(Forecast)
$ 931-956 million
$1.90 –
2.10
$105 million
(3)

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Conclusion
CEDC is the 4
th
largest vodka producer in the world
Further consolidation of brands and distribution will
continue –
branded products continue to take share
Growing consumer purchasing power will fuel growth of
domestic brands
and imports
Leverage our infrastructure for improving shareholder
value
Export to play a key profit driver over the next 5 years
Continued consolidation in Central & Eastern Europe with
CEDC taking an active role