Annual Financial Results 2015/2016

Strategy and development perspectives

September 2016

History of AMBRA

1992 – establishment of AMBRA S.A.

1995 – leader in sparkling wines

1997 – acquisition of the CIN&CIN brand

2005 – IPO and formation of the Group

2006 – leader in still wines

2009 – leader in wine stores chains

2012 – leader in the Internet sale

2013 – CYDR LUBELSKI (apple cider) – leader and creator of a

new category in Poland

2015 – 10 years on the Polish capital market

2016 – highest recommended dividend in the Group history

and all-time low level of debt

2

Get to know AMBRA

AMBRA Group is a leading manufacturer, importer and distributor of

wines in the Central-Eastern Europe .

Poland is the main operating market for AMBRA, where the Company

is a leader of the constantly growing wine segment.

Strong brands are main source of the Group’s growth : FRESCO,

ZAREA, CYDR LUBELSKI, CIN&CIN, DORATO, EL SOL, PICCOLO, PLISKA

are leaders in the major categories of the market

The Group also operates in the Czech Republic, Slovakia and

Romania.

3

Strategy of the AMBRA Group

Increase of the value for shareholders through:

Optimal use of the Polish wine market development potential

• Focus on development in the fastest market categories: still and sparkling wines

• Development of strong brands portfolio: FRESCO, ZAREA, CYDR LUBELSKI, CIN&CIN, DORATO, EL SOL, PICCOLO, PLISKA

• Development of premium distribution channels: HoReCa and Retail (CENTRUM WINA wine stores chain and online)

• Market development in all growing market segments, such as cider, brandy, premium vodka

• Operating cash flow increase and consistent policy of growing dividend

4

Wine market in Poland

Sales of wine in Poland (in PLN billion) * Source: AC Nielsen

2,06

2,20

2,32

2,44

1,80

1,90

2,00

2,10

2,20

2,30

2,40

2,50

2013 2014 2015 2016 (estimated)

+6,4%

+5,7%

+5,0%

Sales of wine in Poland grows constantly. Wine market growth in 2016 is estimated to 5%.

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Wine market in Poland Trade structure

6

32% 31% 34% 32%

37% 37% 35% 36%

31% 32% 32% 32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016 (F)

Traditional Trade

Hyper- and Supermarkets

Discounters

Source: AMBRA S.A. based on AC Nielsen.

Strong development of discounters noted in previous years weakened in favour of hyper- and supermarkets.

2016 (estimated)

Wine market in Poland Category structure

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Still wines remain the fastest growing market category. After a few slower years sparkling wines started to grow again.

Structure and dynamics of the wine market in Poland (in PLN billion)

1 482 1 549 1 683 1 801

285 284289

292275 244230

214139 133

136137

0

500

1 000

1 500

2 000

2 500

2013 2014 2015 2016 (F)

wina deserowe

wermuty

wina musujące

wina stołowe

Source: AMBRA S.A. based on AC Nielsen.

Dessert wines Aperitif wines Sparkling wines Still wines

Wine market in Poland Category structure

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Fastest growing categories – still and sparkling wines contribute to almost 70% of total net sales revenue of the AMBRA Group in Poland.

Net sales revenue structure of the AMBRA Group in Poland 2015/2016

13,6%

55,1%

7,1%

6,8%

5,0%

7,1% 4,8%

Sparkling wines

Still wines

Aperitif wines

Soft beverages

Spirits

Cider

Other

Source: AMBRA S.A. based on AC Nielsen.

KPIs 2015/2016

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(consolidated data in PLN million, unless stated otherwise) 2015/2016 2014/2015 Change

[%]

Sales volume (in million average bottles a 0,75 litre) 68,2 64,9 +5,0%

Net sales revenue (after excise tax and customer bonuses) 424,1 396,9 +6,9%

Margin on sales 181,2 175,8 +3,0%

% margin on sales 42,7% 44,3% -1,6p%p.

Gross profit on sales 139,0 135,4 +2,6%

% gross profit on sales 32,8% 34,1% -1,3%p.

Profit on sales 31,6 27,6 +14,7%

EBIT 34,0 34,2 -0,6%

Net profit attributable to owners of the parent company 17,9 19,0 -6,0%

Net cash flows from operating activities 34,8 56,8 -38,7%

Total assets 411,8 395,3 +4,2%

Net debt (liabilities from loans and borrowing less cash) 39,0 44,1 -11,5%

Net sales revenue per segment [PLN million]

10

397,0

424,1

+16,4 +0,2

+10,5

2014/2015 Poland Czech Republicand Slovakia

Romania 2015/2016

Poland Dynamic growth of still wines, increase in premium distribution channels – CENTRUM WINA wine stores chain, HoReCa. Czech Republic and Slovakia Growth of soft drinks for children. Romania Dynamic growth of sparkling wines, the ZAREA brand is a leader of the Romanian market, lower excise tax on spirits and sparkling wines.

Gross profit on sales [PLN million]

11

135,4 139,0

-3,5

+0,9

+6,2

2014/2015 Poland Czech Republicand Slovakia

Romania 2015/2016

Poland Depreciation of EUR/PLN and USD/PLN exchange rates, apples prices increase, lower sales of aperitif and cider. Czech Republic and Slovakia Change in product range – higher profitability of sales revenue. Romania Dynamic sales growth.

EBIT [PLN million]

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34,2

29,6

33,0 34,0

-4,6

-1,2 +1,1

+3,5 +1,0 Poland

Lower margin offset largely by cost optimization. Czech Republic and Slovakia Higher profitability of sales revenue transferred almost entirely to profit on sales. Romania Improvement of profitability of sales partly offset by higher employee benefits.

EBIT – one-off items [PLN million]

13

2015/2016 2014/2015 change (%)

EBIT reported 34,0 34,2 -0,6

Sale of a part of real estate in Romania -5,4

Sale of discontinued winery in the Czech Republic

-0,7

Termination of catering activities in Poland 0,7

Other -1,0 0,8

EBIT adjusted 33,0 29,6 +11,5

Net profit attributable to owners of the parent company [PLN million]

14

19,0 15,6 17,2 17,9

-3,4

+1,6 +0,7

Figures after tax and non-controlling interest.

Adjusted net profit attributable to owners of the parent company grows by PLN 1,6 million or 10,3%. Stable financial costs: a decrease of interest expenses offset by foreign exchange losses.

Operating segment– Poland Highlights

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(PLN million, unless stated otherwise) 2015/2016 2014/2015 change (%)

Net sales revenue (external sales) 342,8 326,4 +5,0

Profit on sales 22,0 23,4 -5,8

EBIT 23,5 22,8 +2,8

Net profit 18,9 19,0 -0,7

• Strong growth of still wines – very good results of the FRESCO brand and premium channel (CENTRUM WINA wine stores chain and HoReCa)

• Further decline of aperitif wines in line with market trend • Increase of cider market below expectations, sales of

competition ciders – CYDR LUBELSKI remains the volume and quality market leader

• Adverse impact of PLN depreciation

Operating segment– Poland Updated strategy of CYDR LUBELSKI

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(PLN million, unless stated otherwise) 2015/2016 2014/2015 change

[%]

Sales [litres] 8,1 8,6 -5,9*

Net sales revenue [PLN million] 23,3 24,9 -6,3*

Cider market [litres] 11,9 10,4 +14,4

Cider market [PLN million] 112,5 105,4 +6,7

Market share [revenue] 52,6% 50,6% +2,0%p.

• Slower growth of cider market during the year, temporary decrease in the summer

• Transition to the brand value maximation strategy • Further portfolio development to increase brand value –

new products: CYDR LUBELSKI ANTONÓWKA and PERRY LUBELSKI

• Premiumization through new packaging and new premium product standard: CYDR LUBELSKI NIEFILTROWANY (unfiltrated)

• 57% consumers choose CYDR LUBELSKI * Discrepancy between sales dynamics of CYDR LUBELSKI and market dynaamics resulted from higher sales in

June 2015 which reached consumers in July 2015.

Operating segment– Czech Republic and Slovakia Highlights

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(PLN million, unless stated otherwise) 2015/2016 2014/2015 change (%)

Net sales revenue (external sales) 30,2 30,0 +0,7

Profit on sales 2,3 1,4 +57,5

EBIT 2,5 2,1 +17,2

Net profit 1,8 1,6 +15,0

• Change in sparkling wines range – replacement of Rossijskoje Igristoje with more profitable brand: MUCHA SEKT

• Strong growth of sales revenue by 26,8% on the Slovakia market

• Significant growth of ROBBY BUBBLE by 14,1% (soft drinks for children)

• Improvement of product profitability

Operating segment – Romania Highlights

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(PLN million, unless stated otherwise) 2015/2016 2014/2015 change (%)

Net sales revenue (external sales) 51,2 40,6 +26,1

Profit on sales 7,6 2,8 +172,3

EBIT 8,2 4,4 +87,4

Net profit 5,5 2,7 +102,8

• Zarea S.A. became clear leader of the sparkling wine market with 30% market share

• Brand ZAREA became second largest brand in terms of sales value in the AMBRA Group

• Improved profitability thanks lower excise tax and growth of ZAREA sparkling wine

• Increase of both liquor and brandy market together with strengthening market share

AMBRA – dividend policy

* Recommendation of the Management Board 19

AMBRA earned net profits of almost PLN 130 million and paid over PLN 62 million as dividend to its shareholders over 10 year since the IPO (over 1/3 of current capitalization). AMBRA’s dividend yield is one of the highest on the Warsaw Stock Exchange. AMBRA Group's strategy assumes stable growth of dividend payments.

14,9

19,1

16,0 16,5

26,0

19,017,9

0,30

0,40 0,40

0,430,45

0,500,52*

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2009/2010 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

net profit attributable to owners of the parent company (mln zł)

dividend per share (zł)

AMBRA – assumptions for 2016/2017

• Growth of still wines and in Romania

• Increase of operating expenses below sales dynamics

• High cash flows

• Sustained dividend policy

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Contact us

www.ambra.com.pl

ir@ambra.com.pl

https://twitter.com/ambra_sa