Bulgaria, a strong and important business for Kraft 11 May 2012 An Amazing Brand Portfolio across the globe • 12 brands with more than $1 billion in revenue • 70+ brands with more than $100 million in revenue • 40+ brands over 100 years old • 80% revenue from #1 share positions 2 Fast Facts about Kraft worldwide Approximately $54.4 billion in revenue World’s #2 food company, #1 in North America #1 in global confectionery and biscuits Sales in 160+ countries, Operations in more than 70 countries Approximately 140,000 employees Donated more than one billion servings of food since 1997 3 Figures are for the combined Kraft Foods and Cadbury businesses A very strong portfolio in Bulgaria Local Organization – Locations Kraft Foods Bulgaria AD, a subsidiary of Kraft Foods Inc.: Svoge Kostinbrod • Revenue of BGN 210 million* • Commercial unit in Sofia • Chocolate plant in Svoge • Coffee plant in Kostinbrod • Approximately 1,000 employees * Information for 2011. 5 Sofia Majority of products sourced locally Coffee Kostinbrod 94% Nova Brazilia, Jacobs R&G 6% Imports (Banbury,Valasske, Bremen) Chocolate Biscuits Svoge 77% Milka, Svoge, Suchard 23% Imports (Loerrach, Kaunas, Poznan, Bludenz, Bern) 0% 100% Imports (Plonsk, Viana, Opava, Lovosice) Local Organization - Factories Svoge Chocolate Plant • 1905 – The chocolate factory established by Velizar Peev in Sofia • 1924 – The chocolate factory moved to Svoge due to better economic and environmental conditions • 1947 – Factory’s nationalization • 1993 – Kraft Jacobs Suchard acquires the chocolate factory in Svoge and starts business activity in Bulgaria • 2008 – Svoge Expansion Project Over 30 million USD investment only in the past 2 years Regional hub (local market, EAM, Ukraine, Romania, Greece, Canada) Kostinbrod Coffee Plant • 1990 – The coffee factory “Orion” established in Sofia • 1994 – The coffee factory moved to Kostinbrod • 2001 – Kraft Foods Bulgaria acquires Nova Brasilia coffee plant in Kostinbrod • 2001-now – continuous investment, producing also for Ukraine, Romania, 7 What do we expect from Bulgaria? • Continued macroeconomic stability Trusted partner to business • Predictability • Transparency • Change of mindset in local municipal government (win-win) Better understanding of the competitive environment we operate