These data are not audited (in neither the report according to IFRS nor according to the Hungarian accounting principles).

This Report has the same structure as the Annual Report closing the business year of 2012/13, however, there are differences compared to the last year interim reports in the following:

– Settlement of software-monitoring payments: this amount is paid regularly by the Company to the Supplier in order to be able to download and install the patches and updates. These payments are included under other operational expenditures. Earlier, these payments had been capitalised as non-tangible assets and were amortized in three years’ time.

– Settlement of the share in Morello kft: the long standing, 35.43% share of Zwack Unicum Nyrt in the above company is entered in line “Investment in associates”. The value of the capital interest is determined by the equity method. In earlier reports the Company recognized the investment at cost in the line of Available-for-sale financial assets.

Both actual and base data are shown in this Report in the new structure.

The Company gross revenues amounted to 9.476 Million HUFs, 1.2% higher than in the previous year. Net sales were 5,610 Million HUFs, 2.6% lower than the base (5,762 Million HUFs).

Net revenues generated from domestic sales were 3% lower than in the previous year (4,953 Million HUFs against last year’s 5,106 Million HUFs). Within domestic sales, the turnover of own produced products dropped by 2.4% compared to the base. Revenues generated by the premium brands dropped by 1.6%, by the quality products by 4%, and by the commodity portfolio by 34.7%.

Net revenues from traded products (including Diageo portfolio) were 5.5% lower than in the base period.

In the second quarter, Company sales revenues were favourable. Revenues in all product segments increased, except in the commodity range. Net revenues increased in this quarter by 4% compared to the base, while in the first quarter there was a drop of 8.8%.

Market research data in April-July 2013 indicate a 7.5% volume reduction on the Hungarian spirits market. The shrinking of the market further slowed down (this time last year the decrease in volume was at 11%) but it was still considerable. The volume of the premium segment practically stagnated (-0.3%). The reduction of consumption of the quality and commodity products (-9.5% and -10.2%, respectively) is significant. The two large sales channels (retail and gastronomy) differ significantly in the change of turnover. In retail, reduction continued in all the product categories (here the volume of the premium category also dropped by 4.2%). On the other hand, however, in gastronomy, the volume of the premium section increased (by 3.5%) and total sales dropped at a lesser extent (in gastronomy -4.6%; in retail -9.1%).

Export revenues were 657 Million HUFs, which is exactly the same as last year in the first half. Revenues from Unicum increased by 8%, due primarily to Germany and some one-off deals. At the same time, sale of lower margin products (palinkas and rums) dropped compared to the base.

The gross margin increased considerably (by 4.2 %). That was mainly because, as from the beginning of this calendar year, we have managed to secure more favourable purchase prices for a part of our traded products. That has reduced our cost of goods. Meantime, the funds available for the marketing support of the same brands also decreased – as can be seen in the Other operating income line. The increase in the gross margin rate was also due to the fact that within Company revenues, the weight of the most profitable own produced premium products continued to increase. Due to the above reasons and to the increasing revenues in the second quarter, gross margin increased by 156 Million HUFs (5.2%).

Total operational costs remained at the previous year’s level (-1 M HUFs; -0.1%), and the different cost types (personnel, depreciation and other operational costs) do not show any significant changes either.

Other operational costs dropped by 127 Million HUFs (38.7%) due to the already mentioned reasons.

The financial results dropped by 17.5% (21 Million HUFs). In April-September this year, the base interest rate of the Central Bank was nearly 40% lower than last year at the same time. However, primarily due to the reduction of the inventory, average liquid cash was higher during this half year than in the base period. As a result, the financial results dropped to a lesser extent than the deposit interest rate.

The after tax results of the Company according to IFRS is 665 Million HUFs, which is 6.3% higher than the base (626 Million HUFs) and is above the pro rata plan, too.

Within current assets, the value of the inventory dropped by 21% (578 Million HUFs) compared to the previous year. Since last autumn, Management developed inventory management further, the result of which can be seen this year.

The reduction of the accounts receivable (-512 M HUFs; -16.6%) is due primarily to two factors: on the one hand, payment discipline of our customers improved, and on the other hand, the share of partners paying earlier than 30 days increased within the structure of accounts receivable.

Zwack Unicum Nyrt spent 206 Million HUFs on capital investment in the first quarter, which were of a supplementary character and complied with the plan.

The headcount of the Company is 236 people (at the end of the 2012/2013 business year it was 237, last year in the same period it was 242).

This Quick Report for the first half of the business year has been made according to the relevant accounting regulations and the financial statements made on the basis of our best knowledge, and they are in accordance with both the Hungarian and the international standards. It gives a truthful and reliable account of the assets, liabilities, financial standing and profits of Zwack Unicum Plc. This business report gives a reliable picture about the Company’s situation, development and performance and it includes the major risks and factors of uncertainties. To make this report comparable with earlier ones, it carries figures in compliance with the International Financial Reporting Standards.

Additional information:

– There was no change in the ownership structure of our Company.

– There was no change in the organisation of the Company in the first half of the 2013/2014 business year.

– The Company still has no own shares.

November 5, 2013

On behalf of the Board of Directors of Zwack Unicum Részvénytársaság:Sándor Zwack, Chairman  and Frank Odzuck, General Manager