2. VSD Logistics- Nordic

3.  VSD wants to become the Preferred 4 th Party Logistics Provider in the Nordic market for FMCG, with focus on the Beverages segment  VSD will be known for it’s Excellent Customer Service, Service Flexibility, Speed Of Reaction and Competitive Pricing in the Nordic Market place  VSD shall have Leading edge competence, flexibility in it’s Warehouse & Transportation infrastructure, efficient Organisational design and a Information & Application platform to enable business with Pan Nordic active companies as well as Local Country active companies  VSD will join forces & create Partner alliances with preferred business partners where a win-win situation can be proven to ensure competitive edge VSD Nordic + Baltics

4. areas VSD 2006 - Commercial areas Commercial / concept area VSD Logistics Wine&Spirit Retail Duty-Free Nordic Nordic Nordic VSD operations: Purchasing, stock control, transport, customer service, ICT/EDI, distribution, information/Reporting, 3PL development

5. Nordic Organization – New form 2005

6. VSD Logistics role in the supply chain is to be the “hub” in the system, co-ordinating all activities between the trading parties. 4PL – administrative logistics:  Supply chain set-up - framework  3PL set-up  Inbound transport Management  Warehouse set-up  Distribution management  Payment  VSD Information network HUB VSD Invoicing services Suppliers Importers Customers Transporters Warehouses Transporters Information flow Invoicing/payment info. Physical flow The Logistics ”HUB”

7. Producer & Supplier Warehouse & Transportation Management Customer Support Management End Customer Information Management Inbound Management Forecasting Stock Planning Purchasing Transport Mgmt Inbound admin Customs & Excise Goods Receipt Storage Package Rework Pick & Pack Delivery to customer Customer Order Customer Complaints & Returns Product info support Transport planning Billing & Factoring services Governmental Tax reporting VSD’s Assigner W&SRetailDuty Free ClockworkJDA/E3 Extranet EDIMovex Cash Flow Core competence VSD3PL Core Competence The VSD Concept

8. Integrity is one of VSDs strongest competitive advantage. VSD will be dependent on serving multiple importers / trading partners where objectivity and integrity are the basic. Set-up:  VSD do not own products – VSD is a leading service company of supply chain  Standard contracts with importers, no special agreements  Same price list for all importers  Totally Activity Based Costing on logistics and administrative services  Short term contracts  Own transaction- and information platform, separate set-up for VSD – outsourced internationally to IBM and WM Data  Cash flow direct from importer to supplier, and direct from customer to importer  VSD Logistics Nordic set-up in own holding company Integrity

9. Berntson AB/Bacardi Martini Bibendum SE AB Moestue Grape Sel. Premium Wines AB Phlipson&Söderberg Nordic Bev. Co. AB Moët Hennessy AB Diageo AB G:a Slottskällan Bryggeri (Ancrona ab) VSD Logistics SE Amundsen (V&S) Best Buys Int. Bibendum NO AS Brand Partners/Pernod Ricard Bravino Ca de Vin Ca De Lisse Diageo AS Berentsen Gaia Wines & Spirits Helge Wiig Moestue Grape Sel. Moët Hennessy AS Nordic Beverage Co. Podium Wines Record WInes Scanvin Servco Strøm Terroir Trans Nordic Selections United Wineries Vin & Vilt Vinarius Vinetum Vinmonopolet(Pricelists) Westerheim WineBrothers Winetailor Unilever Bestfoods AS Gallaher Norge AS Interbev as VSD Logistics NO Bibendum Oy Nordic Bev. Co. Moët Hennessy Soumi Oy 2006: Wennerco Altia 1888 SkyCellar Wine & Spirits VSD Logistics FIVSD Logistics DK Bornicon & Salming DK A/S Nordic Bev. Co. A/S Moët Hennessy A/S Bibendum DK A/S DutyFree / Travel Value Diageo DutyFree (Color Line) Retail / FMCG (Hansen & CO AS) Customers NORDIC & BALTIC market 2006 One Logistics Solution to The Nordic & Baltic Market VSD Baltics One company One market One solution

10. Warehouse and distribution: 45 000 purchase orders annually inbound 950 suppliers / manufacturers world wide 85 000 customer orders annually outbound 220 000 pallets outbound / year (915 pallets outbound per working day) 1 650 deliveries per week in the Nordics - 3 000 delivery addresses Nordic 4 warehouses with full Nordic coordination – total 70 000 sq.m: 40 000 sq.m. at Ulven in Oslo, Norway 4 000 sq.m. in central Åbo/Turku, Finland – 15 000 sq.m. Voutila/Vantaa from Aug.05 3 500 sq.m. in Ishøj (35 km outside Copenhagen) Denmark 24 000 sq.m. in Örebro, Sweden (Regional Distribution Centre – RDC) Fact and figrues – VSD Logistics Nordic One Logistics Solution to The Nordic Market

11. Integrated transaction system Plukklister Bekreftelse plukkliste Fakturapåsett EDIfraktseddel og frakt-booking VSD ordresystem Kundeservice (telefon og fax) Elektronisk ordre (EDIfact), ordrebekreftelse og pakkseddel (Vinmonopol/Joh./Hakon) Elektronisk fakturasplitt til DnB Telefax EDI EDI: fraktbooking og transportplanlegging Avvikshåndtering Kunde Kundeordre (EDI og fax) Mottak av varer og faktura Elektronisk pakkseddel EDIfact DnB Factoring Mottak av fakturafil Splitt av beløp Betaling Importør (vareeier) Kopi av faktura Betaling direkte inn fra DnB Factoring EDI Kontoregulering

12. Factoring prosesses VSD Logistics Products and invoices Debtor Debtor- and Statements, invoice info web reports Payments DnB NOR Finans Collection, ledger Payments Statements, web reports Importers, producers Invoice info

13. 2200 km Door-door distribution 210 stores Total leadtime: 48-60 hours - North 24-30 hours - Middle/South 8-10 hours - Oslo EDI orders VSD Logistics Off-Trade Distribution – Norway (Vinmonopolet)

14. ICA Meny Nord, Tromsø ASKO Nord, Tromsø Mack Ølbryggeri, Tromsø Coop, Tromsø Asbjørn Pedersen Engros, Harstad Paul Nygård AS/Service grossistene ICA Meny Nord, Bodø ASKO Kjeldsberg, Bodø ICA Meny Nord, Tr.heim ASKO Kjeldsberg, Tr.heim Coop, Tr.heim Vectura, Tr.heim Dankert Krohn, Molde ASKO Giørtz, Eidsnes P. Juls Sandvig, Ålesund Coop, Ålesund Asko Hannevik, Bergen ICA Meny, Bergen ICA Distribusjon, Bergen Vinhuset Engros, Bergen Kristoffer Kårbø, Bergen Coop, Bergen Middelthon, Stavanger Fred Hansen & Kaada, Forus ICA Meny, Stavanger Coop, Stavanger Asko Oppland, Leira Asko Brumunddal ICA Meny Mjøsa, Hamar Coop. Hamar Asko Dramen Aass Bryggerier, Drammen Asko Torgersen, Skien Trio Bryggeri, Skien Asko Torgersen, Skjetten Vectura, Oslo Joh.System, Oslo Spiritus Oslo ICA Distribusjon Øst, Oslo Narvesen Engros, Oslo Asko Agder, Lillesand| ICA Meny Sør, Kristiansand Årheim Agenturer, Sogndal KI GA Engros (Arve Rustad) K.Ekrheim, Oslo Coop, Oslo Sverre Bergstrøm, Fredrikstad ICA Meny Borg, Sarpsborg Wine/Spirits Dry Food Fresh Food Supplier Available on all 45 wholesalers Best on-trade distribution possible International cross- docking shipments Direct shipments Wholesaler distribution

15. VSD Logistics Warehouse Wholesaler Customer Complete order including all product groups. Sent via web, EDI or fax to end customer. Local stored products is picked at the Wholesalers warehouse VSD handled products in Central Warehous, EDI order from wholesaler sendt to VSD Order confirmation Sent by datafax to end customer when order is ready for picking Order qty is checked against stock. If OK the order goes straight to picking In case of soldout, the order is held, and customer care calls and offers a substitute before the order is effectuated. When order is ready for collection A packing slip is sent (EDI) this is The base for invoicing the customer. Cross-docking: order flow

16. 45 Wholesalers depots availability (all available) Reitan Narvesen, Coop, ICA Ahold/Hakon, NorgesGruppen, Servicegrossistene, Ekerholt Norwegian Vinmonopoly (190 shops 85% of W&S sales) as Government controlled Market Best On Trade distribution through wholesalers and breweries - competition in all cities and nation wide ICA Meny, NorgesGruppen, Vectura, Aass Bryggeri, Mack Bryggeri, Vinhuset Engros, Middelthon Engros, P. Juls Sandvig, Asbjørn Pedersen 70 Wholesalers depots availability (=all available) ICA Ahold, Dagab, Coop, Axfood Snabbgross, Servicegrossisterna Swedish Systembolaget (430 shops 88% of W&S sales) as Government controlled Market On Trade distribution through wholesalers and breweries Servera, ICA Meny/Arvid Nordquist/Restaurangpartner, Servicegrossisterna, Axfood Snabbgross, Martin Olsson, ++ 700 Restaurants direct, own distribution network based on independent transporters/”åkeri” 49 Wholesalers depots availability (=all available) Finnish Alko (315 shops 80% of W&S sales) as Government controlled Market On Trade distribution through wholesalers Ruokakesko/Toimitustukku, Ravintolatukku/L-Juoma, Heinon Tukku, Inex Partners, KJS Viinitori, Lounais-Juoma, Meira Nova 17 Wholesalers / Retailers of total 50 served today S/Engros, Metro, FDB, Dagrofa, DFV, DS, Netto, Fakta On-trade: direct distribution / specialists – nation wide coverage| VSDs Nordic Distribution coverage

17. Nov. 2005 2004 2005 2003 Ensure excellence of existing Customers & Service Demand Pan Nordic! Organisational Design to ensure strategic fit Ensure we get the Customer base we need Ensure we get the right Warehouse & Transportation structure New WHS Örebro Sweden Sept- 04 IT/IS project started Jan-03, implemented May-03 VSD Denmark contracted WHS and DIST. Aug-03 VSD Finland contracted WHS and DIST. Sept.-03 Strategic Platform VSD Nordic & Baltic Ensure same Information Platform Live Baltics with WHS and DIST. Spring’06 One Logistics Solution to The Nordic Market New WHS and DIST. Finland Jan.- 06 2006 New distribution (SB/Wholesales) Sweden Sept-05

18. Nordic & Baltic Rim development Phase 1 Autumn 2004: Swedish national warehouse in Örebro: live 16 Sept. 2004 Renew contract DHL Ulven (Oslo) to end 2008 Consolidated inbound transport Norway, Sweden, Denmark, Finland Consolidated transport agreements on Pan- Nordic level Phase 2 Spring 2006: Pan-Nordic delivery structure from Regional Distribution Centre (RDC) in Örebro to: retail category (24 to 48 hrs leadtime) duty-free operators (12 to 48 hrs leadtime) RDC support local warehouses in Oslo, Helsinki/Voutila, Copenhagen/Ishøj & Riga (for the Baltic countries) Monopoly and on-trade from local warehouses Phase 3 (2006~2008?): RDC to all customer segments dependent on future development on monopoly situation, or ExW delivery terms to Monopolies

19. Copenhagen Oslo Norway 37% Market share W&S (short term potential 40%) Helsinki Finland 25% market share W&S (short term potential 35%) Sweden 22% Market share W&S (short term potential 25-30%) Denmark (short term potential 5%) Stockholm 30 ML 35 ML 15 ML 1,7 ML 2005: VSD Logistics 68 ML 2006: VSD Logistics >80 ML Imported 2006: VSD Nordics Tallinn 0,7 ML 4,6 M people 9 M people 5,2 M people MARKET PENETRATION VSD LOGISTICS & POTENTIAL BALTICS Potential VSD Riga 5,5 ML Local bottling (potential) 51 ML 2,8 ML 4,5 ML

20. Nordic development and market share– Logistics ’000 cases

21. Maxi FMCG warehouse – VSD wine&spirit Örebro

22. Consolidated Purchase forecasts Consolidated Purchase orders One contact for order confirmation One contact for shipping information/confirmation Common & coordinated logistics projects (Packing & labbeling) Brand Owner One contact reporting logistics key figures (Monthly measuring stock level, turnover, service level and forecast deviation. Analysing deviations in lead-time and service level from the brand owner.) One contact handling all customer inquiries One point checking and controlling EDI orders, order confirmation, despatch, invoicing Customers Importer Nordic Supply Chain Organization

23. Overstock transfer between the countries Nordic Item number and overview on stock, reports, purchase forecasts Consolidated for all Nordic countries Duty-free / travel retail on handling’ own market channel and supplied from one central warehouse in the Nordics One Logistics Solution to The Nordic Market Transfers – Supply Chain Management

24.  Reducing No. of total SKUs –rational reduction of each subsidiaries portfolio –identify the same products in all countries to work with these on a Nordic level – not unique product per country –Inbound transport cost: –full loads and more rational handling for both brand owner, transport company and warehouse –Warehouse costs: –reduction of multiple SKUs, locations, higher volumes total per unique product –Administration cost: –reduction of administrative workload for both brand owner and VSD, reduced no. of shipments per year –Service level: –if country warehouses: flexible in the use of inbound shipments/re-route to other countries, share stock between the countries –if one Nordic Central Distribution Centre (CDC): use the same products for all markets Main goal in the long run is to reduce logistics costs while improving service Evaluations of advantages, I

25.  Central Distribution Centre (CDC) –Inbound transport cost: –one delivery address for Sweden, Denmark and Norway, and one common warehouse for Finland, Latvia and Estonia –Pick&pack cost: –same workload, but economy of scale based on large volumes on the total portfolio –Storage cost: –reduced cost per distributed unit based on higher turnover and economy of scale in a central warehouse operations –Administration cost: –reduced from multiple warehouse operations to maximum of two for the Nordic region –Service level: –increased based on one central warehouse covering the Nordic region, more frequent deliveries from brand owners based on higher volume through warehouse Evaluations of advantages, II

26.  Nordic supply chain management –Brand owners: –reduced no of transactions (Purchase orders, order confirmations, shipments/export papers), consolidated volume and production forecasts, one contact person for all Nordic supply chain (VSD Nordic), VSD reporting Key Performance Indicators (KPI) regularly per month –Subsidiaries/importers: –benefit of Nordic consolidation of supply chain management, the reduced no of transactions will reduce the administrative work, no need for logistics management in the subsidiaries, VSD reporting Key Performance Indicators (KPI) regularly per month Evaluations of advantages, III

27.  Development –Focus on sales development –knowledge and resources to work on development of the total supply chain –system and volume to protect Brand Owner’s interest when the Monopoly market open up for sales to retail shops/supermarkets –Display packing/value added services –one central warehouse to do large scale of display pallets, develop sales packaging –Pan Nordic product introduction –testing and introducing new products in the market will be coordinated with market activities, less sensitive to pipeline filling as volume in the CDC cover more than one market Evaluations of advantages, IV

28. Key Performance Indicators (KPI)

29. Picking quality – monthly reported KPI Wine & Spirit segment – all customer segments

30. Delivery quality – monthly reported KPI Monopoly store delivery quality 30 minutes delivery window 315 stores in Finland 210 stores in Norway 410 stores in Sweden

31. KPI – stock management

32. VSD NORDIC+BALTICS SUMMARY Consolidated Pan Nordic inbound Transport procurement gives lower Cost Of Goods Sold (COGS) for VSDs customers. Consolidated Pan Nordic Purchasing towards producers and Pan Nordic Warehouse structure gives lower Interest Of Capital (IOC), improved cash flow and lover operational costs for VSDs customers. Consolidation of common Rework such as display pallets etc will give opportunities of COGS & IOC reductions as well as flexibility to meet fluctuations in consumer demand for VSDs customers and their portfolio. If common SKU’s cross country our customers will also benefit from Increased flexibility to meet unexpected Consumer Demand as well as benefit from reduced COGS & IOC during full Product Life Cycle Management. The solution shall create a Base of strength to meet and exceed future Pan Nordic and Local Customer needs and demands We need to be ready when the monopoly market opens up so VSDs customers can position themselves towards the new market place with retailers or special shops. VSDs core activity is supply chain management. Competence through the physical flow and administrative handling from manufacture to monopoly shops and retailers/wholesalers. The importer could maximize focus and development of market and sales activities – core knowledge. Heavy investments in IT and IS technology to meet the demands from customers and in order to handle the future logistics with lower costs and higher quality. VSD administrate vendor management – warehouse and transport agreements and quality/service output. Includes negotiations, benchmark, KPI reporting and measurement, activity based costing (ABC costing), communication and follow-up – give more reliable and lower service costs.

33. Summary VSD Logistics: nmanages the inventory levels to ensure adherence to agreed service levels nnegotiates logistics contracts with different 3PL suppliers, using large consolidated volumes and long experience in outsourcing to drive down costs nbuilds relationships and procedures with each participant in the supply chain from supplier to customer to ensure a smooth flow of products and information with zero errors. nmanages customer orders and is responsible for achieving agreed service levels naim is to use a holistic approach to supply chain management where the goal is to achieve the lowest possible logistics cost per product while still achieving agreed service levels. This includes (but is not limited to) a continuos assessment of: –stock holding costs vs. transport costs –stockholding costs vs. service levels –total logistics costs per product vs. revenue per product. Warehouse operator nmanages the physical operations of the warehouse –receipt –putaway –storage –picking –dispatch nis measured on the quality of these operations, e.g. picking errors, dispatch on time etc. nis not responsible for out of stock situations, as VSD is planning and managing stock availability. Transporter nmanages the physical transport operation by VSD’s instructions. nis measured on the quality of these operations e.g. delivery on time, damages, price per product, etc. nis not responsible for out of stock situations, as VSD is planning and managing stock availability. VSD Logistics role versus the traditional 3PL supplier is:

34. Kontaktinfo nVed spørsmål eller ønske om kontakt, ta kontakt med nLorna Dyrseth nMail: lorna.dyrseth@vsd.nolorna.dyrseth@vsd.no Mobil : 922-22122