JSC Healthy Water Inc

Water Is Georgias Number One Mineral Resource

Cubic meter river water per capita

High mountains in Georgia provide an abundance of water resources Renewable source of water Water resources in Georgia are high compared with The World Average

16 000 12 300 12 000 8 000 4 000 0 World Georgia 7 060

Up to 50 resorts based on mineral springs and aquifers

Georgian water resorts were famous destinations of the Soviet people

Why Georgia

Substantial Economic Progress Since 2003 Dramatically minimized and simplified licensing Very low taxes Low corruption Simplified customs regime since August 2006 Beneficiary of EU GSP+, granting companies the right to export 7 200 categories of goods duty-free Ease of Doing Business, 2010 Low Cost of Energy Cheap Workforce Strategic Location of the Country

Healthy Water
1905 1958-1990 1998 2002 2003-2007 2009 2010 2011

Source of Factory mineral water production discovered in starts Nabeghlavi Limited Unique production content, taste mostly for and healthful Kazakhstan features Water and brand not popular in Georgia Factory closed in 1990

Healthy Water Started producing Ltd. created still water Georgian and Bakhmaro Swiss private investors New Nabeghlavi brand Stating capital of 50 000 USD Utilized inefficient Russian equipment

Modernized factory Increased production by 800 percent

Market share reached 51 % from 6%

In 2007 Purchased 25year exclusive license for extraction of Nabeghlavi and Bakhmaro waters

United under Poised for Working on holding major new Export Margebeli JSC international Markets expansion Holding Planned managing June 2010 Technology several food opened Investment and beverage representative producing office in companies in Ukraine Georgia

Soviet Era

Inception

Strong Domestic Growth

Aggressive Export Growth

Management Team & Key Persons

Family Business managed by founders since first days of company establishment
Mikheil Svimonishvili Economics, Zurich State University, Switzerland Information Systems, Tbilisi State University Economics, Bruchsal Academy of Commerce, German Consultant, Healthy Water Governor of Guria Region Minister of Agriculture City Planner, Tbilisi Gia Gogoladze Economics and Engineering, Tbilisi State University Director, Healthy Water Economist, United Georgian Bank Avtandil Svimonishvili PhD, Geography, Moscow State University Economic Geography, Tbilisi State University Director General, Healthy Water First Secretary, Ministry of Foreign Affairs Researcher, Georgian Scientific Institute Translator, Isfahan Metallurgical Plant, Iran

12 year experience of establishing, growing and developing a leader company on local market with
Experienced technical staff Reliable Partners worldwide, like Krones AG State of the art factory, Up-to date technology Well built distribution channel

Product Portfolio
Nabeghlavi
Hydrocarbonate sodium table water enriched with natural CO2 subtle taste and unique curative properties Mineralization 3.5 5.9 g/l

Bakhmaro
Spring water To the surface at the health resort situated at the height of 2000m above sea level. Very soft water Rich with oxygen Perfect pH indicator: - 7.5.

Production Facility
located at the foothills of the Caucasus, ecologically clean zone in Western Georgia Elaborate system of pipelines connects several bore wells and the bottling plant, situated in village Nabeghlavi, nearby the sources Equipped with state-of-the-art European automatic bottling lines from KRONES, with the capacity of 30000 bottles per hour Proved by a Certificate of Conformity with EU standards and ISO 9001:2000 Contractor supplier of Defense Logistics Agency (DLA) In 2010 Sales Volume reached 62 mil. bottle

Sales Dinamics

Share Distribution

Healthy Water has dominated IDS Borjomi in Borjomis home market

New Developing Policy

Until 2010: Management completed building of the factory with latest technologies and modern facility. Healthy Water became the leader on local market Obtained a 25 year general license Gained market share in the neighboring countries Established Distribution Infrastructure: storage buildings, strong network with all essential equipments - distribution vehicles, branded refrigerators, software etc

Since 2010 Export has become the most important direction of development
Nowdays Export share is 20%in total sales

Distribution Channel
Distribution throughout Georgia by sister company of Healthy Water (Engadi) Equipped with advanced software for distribution network control State-of-the-art storage facility in logistical hub in the outskirts of Tbilisi 6500 active Trade Point (Supermarket Channels, HoReCa, Off-Trade) 600 active HoReCa Units 3000 branded refrigerators throughout Georgia Very close relations with stores built up during the past years through day-to-day direct work and incentive systems

Strategic Location for Export Opportunities

Shortest Route Between Europe And Asia Via Silk Road

Access To The Black Sea To Reach Europe With Low Cost

Access To Railway To Reach Middle East, Caspian Sea Access To Modernized Roads For Truck Transportation To Caspian, Middle East And Turkey

Growth potential in Eastern Europe, Middle East and Asia

CAGR 2003-2008 Water Consumption

Healthy Water Will Focus Expansion Via Countries With:

Middle East Eastern Europe Africa Asia/Australia North America West Europe 0,5% 0,2% 3,3%

6,3%

Highest Growth Potential And Convenient Location

Strategically concentrated to export to Asia, Middle East and Eastern Europe Healthy Water will focus on the three regions Priority export focus will be Nabeghlavi for premium segment while Bakhmaro will also follow

7,9% 6,8%

In 2008 global bottled water market grew by 4,5% (CAGR) in 2003-2008 was 6,8 percent Bottled water market expected to grow 3,7% in 2011 and 4% in 2013

Source: Zenith International

Source: Zenith International

Nabeghlavi export potential is largely linked with popularity of Georgian cuisine in FSU countries, although other factors also play

PRIORITY I Ukraine Baltics Azerbaijan Kazakhstan PRIORITY II USA Poland Turkmenistan Belarus UAE

Export Countries Prioritized By: Knowledge Of Georgian Cuisine (FSU, emigrants) For San Pellegrino Effect Going For Ready Markets Demand On Imported Sparkling Water (high proportion of sparkling water consumption) Relatively Stable Economies (to invest in building customers)

PRIORITY III Israel North Africa EU Russia

Aggressive expansion to CIS countries- current priority Ukraine

2010
Opening a representative office Active Marketing Campaign in largest Retail Channels and Business Centers

2011
Integrated Marketing Campaign TV commercials with the most recognizable Georgian Celebrity in CIS Buba Kikabidze Radio Trivia with prizes - 2 person Tour to Georgia, Nabeghlavi bottling plant and Batumi city Wide media Coverage: with billboards, Printed and internet ads Continuous tasting campaigns in largest retail chains

Address: Lot 204, Didi Dighomi, Tbilisi 0131, Georgia Phone: (+995-32) 99 91 99, 98 69 82 Fax: (+995-32) 93 17 59 E-mail: info@HealthyWater.ge Website: www.HealthyWater.ge