OREANDA-NEWS. On 09 April 2009 was announced, that at the General Shareholders Meeting of Baltika Breweries the report of financial results for 2008 was approved by shareholders. The amount of dividends for 2008 per share rose by 64% compared to the amount of dividends paid for 2007.

The level of dividends fully corresponds to the Company’s practice of delivering growth in dividends paid out and in the interests of shareholders. With the start of a new brewery in Novosibirsk and the significant increase in production capacity of several of the Company’s subsidiaries, a geographically balanced production and logistics infrastructure has been put in place. The completion of this major stage means that the general level of investments in the current year 2009 will be below the level of the past few years.

The good financial results also contributed to growth of the earning per share indicator. In 2008, the Company’s revenue rose by 17.2% compared to 2007 and net profit grew by +11.1%. During 2008, Baltika delivered high operating margin and proved the financial stability of the business despite the growth in prices for raw materials and packaging, an unprecedented increase in excise tax, unfavourable weather conditions and the situation on the world financial markets. There was a slight decline in the volume of the beer market in 2008, and Baltika increased its market share by 0.7% up to 38.3%.

Thus, the size of dividends payable on both ordinary and preference shares comes to 85 rubles 10 kopeks per share. In accordance with the decision of the shareholders, pay-out of dividends shall begin on 01 July 2009.

Alexander Shokhin, President of Russian Union of Industrialists and Entrepreneurs, Member of the Board of Directors of Baltika Breweries: ‘Baltika demonstrates a successful balance of interests between shareholders and employees that is rare in modern times. The Company has managed to avoid massive reduction of staff and to maintain all social programmes, as well as the policy of paying out dividends to shareholders thanks to thorough work to reduce costs over the past several years and smart actions on the market.’

The composition of the Board of Directors of Baltika Breweries was approved at the Shareholders Meeting and reads as follows:

Anton Artemiev,

Ulrik Andersen,

Alexander Izosimov,

Hans Kasper Madsen,

Jorgen Buhl Rasmussen,

Bjorn Sondenskov,

Alexander Shokhin.

Furthermore, Baltika shareholders elected members of the Internal Auditing Committee, approved the authorisation for the Company’s auditors KPMG JSC and A&P Audit JSC, established the size of remunerations and reimbursement of expenses for members of the Board of Directors, approved transactions with Russian Railways OJSC and confirmed the new edition of the Company’s Articles of Association.

Baltika Breweries is the largest FMCG producer in Russia. Since 1996 it has been the leader on the Russian beer market. The Baltika brand occupies first place in Europe in terms of sales. The Company comprises breweries in 10 cities across Russia and 1 brewery in Azerbaijan. It has a broad portfolio of brands.