Boni Holding SACompany presentation

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Fodder production

(partnering)

Slaughter-house

(partnering)

Cutting & Boning

unit

Hybridcenter

Reproduction Stock farmStock farm

Raw-curedproducts

Rawproducts

Cookedproducts

Boni Holding is a vertically integrated company that has its own daughter companies at all production levels:

• fodder production

• swine breeding

• hybrid

• commodity

• slaughtering

• cutting and boning

• meat processing.

The holding also has a specialized marketing firm, which develops and services the trade relations of the company.

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The Lovech factory represents a complex of two separate meat processing factories and an industrial cutting house. The factory for production of sausages and delicacies covers a built-up area of 8,870 sq. m, while the overall area is 9,032 sq. m. Its prod-uct range includes raw-cured delicacies, smoked and cooked sausages and salami, hams and smoked meats, pates, etc. The factory is

technologically equipped to produce virtually any kind of processed meat product that requires curing, smoking and/or cooking. The factory for production of meat cuts, ready-to-cook/eat meat products and minced meat cov-ers a total built-up area of 3,925 sq. m. Its product range includes an assortment of meat cuts in retail packages, minced meats, raw sausages and shape-molded products, ready-to-cook prod-ucts for retail or wholesale, ready-to-eat grilled and baked products, etc.The industrial cutting house covers a built-up area of 2,965 sq. m and has a maximum processing capacity of 1,200 pigs/day. its production includes a variety of meat cuts for the retail market as well as industrial preparations (carcass and packaged pork and beef meat), raw materials and by-products. The cutting house serves the other two productions with extreme efficiency due to the close proximity. Because of its excellent strategic location in the middle of Bulgaria and its raw material security, provided by the company’s farms, the cutting house can provide regular supplies of fresh meat to its customers across the country.There is a 1,923 sq. m refrigeration unit attached to the produc-tion complex in Lovech as well as boiler generator and a local

abatement equipment for industrial sewage. The buildings are constructed by a metal frame bearing structure. The fencing wall elements are filled with panels of heat and noise proof layers. In functional terms, the production units are separated into a reception area, processing area and ship-ping area with their respective technological separate rooms and refrigerator areas. In order to meet the latest requirements for the production of safe and quality food items, there is a special controlled sanitary area for the staff. In terms of placement, the buildings are located in such a way that they have controlled entrances and exits.The investment in the complex amounts to over 15 million euro. According to the assessment of the European Bank for Reconstruction and development, Boni Holding’s meat processing complex in Lovech is one of the most sophisticated in Europe. in 2007 the complex won the national prize “Building of the Year” in the category “Industrial buildings”.

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The Karlovo meat meat processing factory, which entered Boni Holding in 1997, is the successor to the famous meat processing factory of the Matevi brothers that was founded in the end of the 19th century. Karlovo is specialized in the produc-tion of raw-cured salami and meat delicacies. It covers a total build-up area of 10,000 sq.m.The greatest wealth of Karlovo meat processing factory is its drying chambers, where the products dry, mature and get their taste qualities under the influence of the unique micro-flora. During the long years, the Karlovo drying chambers

have cultivated several lactic acid bacteria strains, a combination that can not be found anywhere else in the world. Thanks to the specific climate conditions, the preserved manufacturing tradition and the use of advanced equipment for meat processing, the products of the Karlovo factory differ from the rest because of their unique quality and taste.The Karlovo factory is the only meat processing entity that has the right to produce the famous in Bulgaria Karlovska lukanka. Positioned in the luxury price segment, it is the most popular brand and the quality standard for the raw-cured delicacies market in Bulgaria. Its unique taste comes from the combination of selected fresh meats, natural spices and the secret recipe passed on from generation to genera-tion. No ferments are used for its maturing as this happens naturally under the influence of the specific micro-flora developed in the drying chambers of the Kar-

lovo meat processing factory under the influence of the unique geographical location of the town of Karlovo and the centuries-old manufacturing tradition.

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Lovech meat processing factory

• Production of sausages, salami, delicacies and pate: 50 tons/day;

• Production of meat cuts, ready-to-cook/eat meat products and minced meat: 40 tons/day;

• Industrial cutting house: 1,200 pigs/day

KarLovo meat processing factorySpecialized in the production of raw-cured products from minced, and whole meat: 10 tons per day

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25%75% 12%88%

MARKET sHARE “PoRK MEAT”: 25% MARKET sHARE “sAusAgEs, sALAMI, DELIcAcIEs AND PATE”: 12%

mln. EURO, incl. VAT *forecast

year

turnover

2012

75.0*

2011

71,2

2010

68,4

2009

61,2

2008

54,4

2007

38,0

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main marKets for the industriaL preparations:

• processing factories, which use frozen or cooled

meats for their production.

• hypermarkets, which use mainly industrial pack-

ages (big pieces) or sorted meat (cuttings) for pro-

cessing or cutting to get it ready for customer pack-

aging in the stores themselves.

• Big clients from the area of public feeding, where

the nature of their culinary production requires

industrial packages.

main marKets for meat processing:

• end client-oriented markets (households). All shops fall into this category. The characteristics of this market cate-

gory are that it changes dynamically and the main process is that small shops make place for the super and hypermarkets.

• public feeding-oriented markets. This category develops quickly and is dependant on the fast growth of the tourism

business and the rising standard of life of the population. The growth of this category is the main factor for the develop-

ment of the production of ready-to-cook meats, as well as the production of special products.

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The meat processing factories of Boni Holding have their own motor park with more than 100 refrigeration trucks and vans to provide direct service to the retail chains and big individual clients and indirect service, through their distributors, to all commercial establishments in the country. • Small retailers and traditional trade. The distribution network of the Holding is built on a territorial basis and is distributed among a number of Distributors that cover the territory of the country. Each of them holds exclusive or partial rights to sell prod-ucts and market the trademarks of Boni Holding within its designated region. In addition to the classical distribution, they serve also regional chains. Each Distributor has its own transport that covers the technical requirements for transport of meat and meat products, refrigeration facilities and personnel with experience in distribution and marketing of meat and meat products.

• Direct customers. They are supplied directly from the meat process-ing factories in the group. Such customers are: the resort complexes - Eleni, Albena, Dyuni, Victoria Group, Royal Garden, and Helena Resort, and the meat processing companies Damit, Delikates 2, Saranda Distri-bution, Vivenda, Liberty Food, Kenar, Madzharov and others.

• National Chains. Due to the growth of the retailing in Bulgaria, working with chains requires special stand and a significant focus. Policy towards retailer chains is differentiated according to the turnover, the offered range of products, the market activities, regular-ity of payments, etc. Boni Holding’s production is marketed through Metro, Billa, Kaufland, Lidl, Penny Market, Mercator, Piccadilly, Fantas-tico, Evropa, CBA, HIT, etc.

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2012

®

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• Kaufland

• Lidl

• Penny market

• Billa

• CBA

• Evropa

• Metro

• Fantastico

• Piccadilly

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