RUSSIAN NATIONAL LOGISTIC NETWORK FOR FRESH FRUIT DISTRIBUTION Road Show Presentation October 26 Representing JFC Group: Mr. Vladimir Kekhman Chairman Mrs. Julia Zakharova General Director 1
Contents Introduction Overview of the Russianfruit market Business highlights Financial highlights Proposed offering
Introduction Largest supplier of fresh fruits into Russia with 1% overall market share, including 25% share in the banana market Relationships with leading fruit suppliers in Latin America and Africa Sales to all top Russian retail chains providing country-wide distribution The most efficient fruit storage processing system in the country 8 distribution centres and 1 modern fruit processing terminals across Russia Dynamic management team looking to capitalise on the growth in fruit consumption in Russia
History 1994 1995 1996 1997-22 The Company is founded by Vladimir Kekhman First three fruit terminals opened in St. Petersburg JFC brand is launched Terminals are opened in Moscow, Yekaterinburg, Krasnodar, St. Petersburg and Chelyabinsk 23 Specialized subsidiary for supply to retail chains is set up Distribution centre opened in Moscow 294 346 364 Integration of the mysap.commanagement information system 186 Inaugural local RUR7m bond issue 113 123 24 25 26 Terminal in Novosibirsk is opened Second local RUR1,2m bond issue Corporate reorganisation of the Group in Russia completed 2 21 22 23 24 25 Revenues, USD Mio Launch of construction of a new distribution centre in Moscow to service retail chains Long-term contracts with leading retail chains all over Russia Terminal in Novosibirsk is successfully reconstructed Effective management of own banana plantations in Ecuador and use of own cargo fleet
Transparent Corporate Structure Implementation of the strategic restructuring plan will increase overall Group effectiveness (27-21) JFC Group Holding BVI JFC Holding Export company BVI WhilmManagement BVI Ship owning companies - 7 Panama, Malta Banana production companies Ecuador Trading company, Malta St. Petersburg Moscow Yekaterinburg Krasnodar Chelyabinsk Kazan Novosibirsk N. Novgorod Regional branches JFC Holding Distribution Cyprus CJSC JFC Gruppa Russia CJSC NFK JFC" Russia Bonanza Ltd. Russia CJSC Cargo JFC" Russia "JFC International Ltd. Russia Companies will be merged into JFC Group Production, export, transportation, wholesale Infrastructure and distribution of fruits in Russia 5
Contents Introduction Overview of the Russian fruit market Business highlights Financial highlights Proposed offering
Russian macroeconomic development %, YoY 14 12 1 8 6 4 2 GDP vs. private consumption growth 11.6 11.1 11.2 1 9.5 8.5 7.3 7.3 7.5 7.2 7.4 6.4 5.1 4.7 2 21 22 23 24 25 1H26 GDP grow th private consumption Inflation vs. import growth Improving business environment Earlier this year Russia achieved investment-grade ratings by all three ratings agencies Improving tax system and structural reforms under way Government committed to further liberalisation and diversification of the economy Objective is to lessen dependence on the exploitation of raw materials Accession to WTO anticipated in 27 The growth in consumer spending outpaces GDP growth US $bn 12 1 8 6 4 2 98.6 2.2 18.6 74.9 8.9 15.1 6 48.8 12 11.7 4.7 31.4 1.9 6 2 21 22 23 24 25 1H26 Imports CPI Average 25 2 15 1 5 %, YoY Strong economic fundamentals GDP per capita exceeded US$9, in 25 vs. US$3, in 23 and is expected to grow in 26 CBR s reserves show constant growth and have reached $265bn (as of 1.1.26) RUB/USD exchange rate has been appreciating and remains broadly stable Import growth rates are to remain above 2% p.a. 7
Fruit imports and consumption Tonn ' 4 3 5 3 2 5 2 1 5 1 5 1 642 Annual Fruits Import to Russia 2 16 2 311 2 758 3 617 3 795 3 9 2 21 22 23 24 25 26E Comparison of Annual Fruit Consumption, 25 Breakdown of Imported Fruits, 25 Others 31% Pears 7% Apples 19% Bananas 21% Oranges 1% Tangerines 8% Lemons 4% 2 183 156 Kg per capita 15 1 5 111 t 1 93 73 57 43 Italy Germany Hungary USA France Czech R. Poland Russia Source: Federal Customs Service, Company s estimations 8
Banana imports and consumption Annual Banana Import Volumes into Russia Comparison of Annual Banana Consumption, 25 Tons ' 9 771 847 815 842 8 7 68 643 6 495 5 4 3 2 1 2 21 22 23 24 25 26E Breakdown of Banana Import by Destination, 25 Kg per capita 18 16 14 12 1 8 6 4 2 17.9 13.2 12.5 Sweden Norway Finland Germany 1.6 9.8 9.5 9.1 8.8 Czech R. Spain Italy France Netherlands 6.5 5.7 Russia Ecuador 91% Columbia 3% Costa-Rica 3% Philippines 2% Gonduras 1% 1 The 22-26 banana imports CAGR exceeded inflation and GDP growth rate. The key supplier of bananas to Russia was Ecuador Ecuador: lowest production costs; most developed cultivation standards; best infrastructure (transportation, storage) Source: Federal Customs Service, Company s estimations
Citrus imports Annual Citrus Import Volumes Main Suppliers of Citrus Fruits, 25 Tons ' 1 9 8 7 6 5 4 386 469 66 747 t 859 867 1 Others 28% Turkey 26% 3 2 1 2 21 22 23 24 25 26E Egypt 1% Argentina 15% Morocco 21% Breakdown of Citrus Import, 25 Comparison of annual orange consumption, 25 Lemons 19% Others 5% 25 2 23,1 Oranges 42% Kg per capita 15 1 12, 1,9 1, 7,8 5,9 5,6 Mandarins 34% Source: Federal Customs Service, Company s estimations 5 Spain Italy France Netherlands Norway Finland Germany Russia 2,6
Income and spending Real Disposable Income (1999 = 1%) Spending on basic goods and services (as % of RDI) 25 2 15 1 5 121.7 135.3 155.4 17.8 185.8 23.4 75 74 73 72 71 7 69 68 74.6 73.2 72.2 69.9 71.1 69.1 21 22 23 24 25 26E 67 66 21 22 23 24 25 26E Real disposable income of Russians increased significantly over the last 6years, although the gap in prosperity between Moscow, Saint-Petersburg and the regions remains quite large There is a positive qualitative shift in spending and consumption structure. As incomes continue to grow, spending on basic goods and services declines. More Russians choose high quality, rather than low price. Source: Federal Statistics Committee, The World Bank, Company s estimations
Retail chains Volume of Total Retail Trade in Russia Retail chain s share in retail sales M i o R U B 8 7 6 5 4 3 2 1 7742 738 5642 4529 37 3765 2352 2 21 22 23 24 25 26E % 35 3 25 2 15 1 5 t 31 24 16 8 5 3 1 2 21 22 23 24 25 26E According to A.T. Kearney Global Retail Development Index 26, Russia is second most attractive market for global retail chains Retail trade stands for 21% of GDP growing 1-15% a year Share of chains in retail turnover will reach 4% by 27 according to RBC forecast Source: Rosbusinessconsulting, MEDT, Company s estimations
Contents Introduction Overview of the Russian fruit market Business highlights Financial highlights Proposed offering
Business Overview Emphasis on fruit quality Long-term relationships Own banana plantations Rail cars with cooling systems Own fleet of special trucks Modern ripening technologies Ability to extend product life Packaging and other VA services Fruits purchase & production Transportation Distribution Storage Processing Sales Via marine vessels and trucks CFR basis of deliveries High-tech infrastructure; Proximity to buyers Broad distribution chain Retailers and wholesalers
Fruits Purchase & Production PURCHASE: PRODUCTION: Diversified range of suppliers - low risk of dependence on a key supplier Contracts are concluded for 1 year on average Dedicated staff with language skills and thorough knowledge of suppliers Customs/excise duties -paid in full, no shadow schemes utilized JFC Ecuador (non-consolidated subsidiary of the Company) possesses plantations of 98 hectares for banana cultivation in Ecuador Costs of own production are 25% lower than costs of purchased goods 12% of banana turnover are cultivated at own plantations By 21 increase in share of own produced bananas by 32% 15
Transportation VESSELS: Delivery of fruits is carried by vessels and trucks: TRUCKS: Import from Latin America, Africa Shipping costs composed 35% of DDP price for imported fruits Duration - on average 1-3 weeks 7 own sea vessels Import from Europe Transportation costs composed 14% of DDP price for imported fruits Duration - on average 3-5 days By 21 launch of construction of new container vessels Our track record no major delays in the last 11 years Lost or spoiled in transit are negligible amounts 16
Distribution Network JFC controls and manages the most efficient distribution network for fruits and vegetables in Russia The Company has 8 distribution centers (with 1 terminals) whichall are equipped with temperature regulation systems, storing, ripening, packing and wrapping facilities Distribution centers are situated in: St. Petersburg -2 Moscow -2 Yekaterinburg Krasnodar Chelyabinsk Kazan Novosibirsk Nizhniy Novgorod Fruit terminals are either owned or leased by JFC on a long termbasis Terminals operate 24 hours per day (split in 2-3 shifts), 7 days per week. The volatility of seasonal working force is 1% during a year By 21 the construction of new distribution centers oriented onretail sales in Moscow and St. Petersburg will be completed. 17
Distribution to regional branches Delivery to JFC distribution centers within Russia by train and trucks: TRAINS: 2% of fruits have been transported by train (25) Railway cars with cooling systems are leased from the state-owned market monopolist (Russian railways) Transportation prices are controlled by the Government, fixed every 4 months on average and have been stable over the last few years TRUCKS: 8% of fruits have been transported by trucks (25) JFC owns 5 Mercedes-Benz refrigerator trucks and has a long stable relationships with rental operators Lost or spoiled fruits constitute.3% of the total volumes on average Transportation within Russia constitutes 3.5% of COGS 18
Sales Sales to Russian Market Total Revenue International Sales Sales from the port 13% of banana volume Gross margin: 12,6% Bananas Sales from the terminals 1% of other fruits volume 59% of banana volume Other fruits 28% of banana volume Gross margin: 13,9% We operate in: Ukraine, Georgia, Romania, Bulgaria, Montenegro, Poland, Turkey, Algeria, Iran, Iraq, Lithuania, Latvia. We plan to expand to: Slovenia, Tunisia, Libya, Syria, Albania, United Arab Emirates, Kuwait. Sales to wholesalers 55% Gross margin for banana: 13,3% Average gross margin for other fruits: 13,3% By 21 JFC plans to increase the share of sales to retail chains up to 65%. Sales to retail chains 45% Gross margin for banana: 19,7% Average gross margin for other fruits: 19,8% Expansion to the new markets will give JFC an opportunity to increase banana sales to foreign countries by more than 7% by 21. 19
Objectives for a 5-year 5 strategy QUALITATIVE PERFORMANCE: Risk reduction: Gradual transformation into a full-scale logistics and distribution operation, including management of the commercial real estate Reduction of operational losses risks: Gradual exit from SPOT market of green banana and expanding cooperation with retail chains Country-wide coverage: Presence in all densely populated regions Brand recognition: Lower customer acquisition costs Investment attractiveness: Increased interest in JFC from international financial institutions Access to new funding sources: New route via international capital markets Flexible pricing: Product competitiveness IT leadership: Highly advanced technical equipment and software solutions International expansion: Significant increase in international sales and multi-national asset profile Key suppliers independence: Creation of a diversified supplier base is a part of the strategy against over-reliance on any single supplier QUANTITATIVE PERFORMANCE: Growth in: Banana import to Russia by 4% (from 11.6 Mio boxes to 16.2 Mio boxes) Import of other fruits to Russia by 18% (from 115 924 ton to 136 57 ton) International sales by 71% (from 4.5 Mio boxes to 7.7 Mio boxes) Retail chains share up to 65% 2
Contents Introduction Overview of the Russian fruit market Business highlights Financial highlights Proposed offering
Revenue growth and composition Revenue growth, 2-25 Revenue composition, 26 4 35 Apples 4% Peers 3% Others 2% 3 USD ' 25 2 15 Citrus 26% 1 5 Bananas 65% 2 21 22 23 24 25 Bananas Citrus Apples Pears Others As revenues continue to grow, the key factor of future success is diversification of revenue composition. An ongoing qualitative shift in consumption will enable us to increase our market share of fruits with higher added value. Bananas and citrus sales, however, will continue to be the major source of revenue. 22
Main financial indicators 4 EBITDA, 21-1H 26 36 67 33 455 3 Assets, Equity, 21-1H 26 272 58 USD ' 3 2 1 3 82 8 52 13 555 23 4 USD ' 2 1 51 347 25 27 11 631 17 11 96 7 22 58 14 138 29 649 211 52 51 814 81 365 21 22 23 24 25 1H 26 21 22 23 24 25 1H 26 Assets Equity Net Profit, 21-1H 26 Net Debt, 21-1H 26 2 16 815 16 128 35 154 43 USD ' 15 1 5 2 426 5 393 7 312 8 226 13 429 USD ' 12 8 4 8 494 17 116 56 475 86 843 21 22 23 24 25 1H 26 21 22 23 24 25 1H 26 23
1H26 Financials results Mln US$ 25 2 15 1 5 Sales и EBITDA Debt coverage Balance sheet items 26 17.4 196 1H 25 1H 26 Sales EBITDA 33.5 mln US$ 2 15 1 5 92.3 1H25 Net debt 154.4 1H26 2.7 2.6 2.5 2.4 2.3 2.2 2.1 Net debt/ebitda mln US$ 3 25 2 15 1 5 162.1 36.9 272.6 1H 25 1H 26 Assets Equity 81.4 The reduction of sales is a technical issue due to a change in consolidation principals: the distribution companies become subsidiaries, so their turnover is now accounted for excluding VAT Focus on profitability: EBITDA margin doubles from 8% to 17% due to increases in efficiency of sales Debt burden is under control: Net debt/ebitda ratio sinked to 2.3 from 3.5 in 25 Total assets in 1H26 amounted to USD272.6m, up 29% from 25, equity doubled 24
Overview of certain ratios 23 24 25 1H 26 Profitability Gross Margin 8,4% 12,3% 13,9% 15,6% EBITDA Margin 4,6% 6,7% 1,% 17,% Net Profit Margin 1,9% 2,% 3,6% 8,6% Debt Load Net Debt to EBITDA 4.2 3.8 3.5 2.3 Net Debt to Equity 2.5 2.9 2.5 1.9 EBITDA to Interest Expense 3.5 2.4 2.8 4. 25
Conclusion Country risk profile - investment grade ratings by all major rating agencies Investing in JFC gives diversification from traditional oil, telecom and banking sectors in Russia Big upside potential for the fruit market consumption in Russia - growing disposable incomes of population JFC strategy is to focus on higher added value services with smaller price volatility JFC is rated B-/stable by S&P JFC has impeccable track record with servicing credit facilities 26
Conclusion (cont ed) JFC is fully transparent and investor-friendly JFC has experienced management team JFC owns modern property and infrastructure JFC has unrivalled distribution coverage and offers full-service product offering to retail chains Strengthening financials: - 5% turnover growth in 25. - Steady improvement in profitability: EBITDA margin surged up from 7% in 24 to 1% in 25 and 17% in 1H26 - Declining pattern of leverage net debt sinkedto 2.3xEBITDA in 1H26 compared to 3.5x in 25 27
Contents Introduction Overview of the Russian fruit market Business highlights Financial highlights Proposed offering
Offering Summary Issuer: Guarantor according to Russian law: Amount: Tenor: Put option: Coupon: Joint Lead Managers: Paying agent: Use of proceeds: ZAO JFC Group ZAO National Fruit Company JFC 2 blnrur (~74 mlnusd) 5 years In 2 years at par Semi-annual, will be fixed until put option UralSibBank, ABN AMRO UralSibBank Refinancing of existing indebtedness
WE HAVE DONE A LOT, BUT WE ARE PLANNING MORE