United Breweries Limited

Presentation November 2007

India and the Beer Industry

Indian Economy

• The current year growth rate is 9% • The growth is largely propelled by local consumption hence lesser prone to global changes.

• Inflation currently at (5.7- 7.9)% (CPI) giving impetus to growth –

Source RBI Oct 13, 2007

• Substantial increase in the disposable income in the age group of 20 to 30 years

Increase in disposal Income

1989-90 2001-02 2009-10 0% 50% Low (< Rs.45 K) Middle (Rs. 45K -Rs.

90K) High (> Rs. 90K) 100%

Source: Motilal Oswal Securities

Indian Demographics –

favorable to growth in beer consumption • Current population 1.1 billion • Over 50% of the population is below the age of 20 years • The demographics to remain almost unchanged till the year 2020 •Core target market is 18-30 year olds • As initiation to alcohol consumption is through low alcohol beverages like beer the next decade and half.

– excellent opportunity for growth in beer consumption over

Population demographics

2001 70.8

485 455 > 60 years 20-59 0-19 2011 94.2

636 447 0% 20%

Figures million

40% 60% 80% 100%

Source: Motilal Oswal Securities

Beer Industry in India

• Policies & Regulations are driven by State Government • Highly regulated with restriction in movement between states • 65% of the Indian market is state controlled – Distribution by Govt. Corporations, implications upon pricing • Advertising strictly prohibited, advantage for existing players, major barrier to entry

Beer Industry in India contd.

• Government corporations are now approachable and not averse to make changes • There have been recent recommendations by some governing bodies to de link beer from spirit and have a common national duty structure much lower than the current duty levels

Beer Industry in India contd

AFFORDABILITY

• Duty not set according to alcohol content • Highest duty in the world • Expensive alcoholic beverage

AVAILABILITY

• 55,000 licensed outlets across the country • 1 per 20,000 people • In UK 1 per 350 people

Beer is not the alcoholic beverage of the common man

Alcohol Consumption

<0.5% 78% Wine 5% Spirits/ Liquor 8% India 21.5% Beer 87% Emerging Markets

Per Capita Beer Consumption

140 120 100 80 60 40 20 0 0.9

In di a In do ne si a 12 22 24 59 C hi na W or ld A vg R us si a

Country

U S A 82 100 125 UK G er m an y

Key performance highlights H1 2007-08

• 13.8% volume growth in UBL while the combined business grew at 14.3% as against an industry growth of 12.6% • Kingfisher growth - premium 5.4%, strong 23.9% • EBITDA at the half year end 112 Cr. as against 87 Cr., a growth of 29% • Combined EBITDA at the half year end 143 Cr. as against Cr.110, a growth of 30%

Operational performance

+ 12.6%

Volume Growth – H1

+ 16.6% + 14.3% + 13.8% Industry Combined Business UBL Only MABL Only

Change in Consumption pattern

30 20 10 0 70 60 50 40 Mild Beer % Strong Beer % • Currently all international brands known in India are mild beers & most of the new launches have been in this category, which has been declining

25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2005-06

Kingfisher Performance

Kingfisher premium - % growth

Industry-Mild KF premium 2006-07 2007-08 Est.

50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2005-06

Kingfisher Strong - % growth

2006-07 2007-08 Est.

Industry-Strong KF Strong

UBL V’s SABM Market Share

47% 33%

UBL SABM March 07

Financial Performance

Results September 07 United Breweries Limited In rupees crore Year ended 30.9.2007

30.9.2006

Audited Incl. of KBD Net Sales/Income from operations Other Income Total Income Expenditure Cost of production Advertisement & Sales Promotion Other operating Costs 579.66

13.79

593.45

415.12

5.37

420.49

301.88

144.72

34.61

193.70

114.31

25.51

41% 464.59

PBIDT Margin on sales PBIDT Finance charges Depreciation Profit Before Non recurring items &Taxation Non Recurring items Taxation Net Profit 112.23

19.36% 112.23

86.97

20.95% 29% 86.97

19.02

26.02

67.19

12.00

10.15

64.82

4% 88.25

18.99% (25.01) 42.18

(24.09) 40.73

4% COMBINED BUSINESS PBIDT Finance charges Depreciation Profit Before Non recurring items &Taxation 143.31

31.50

38.05

73.76

109.75 31% 27.67

20.29

61.79

19% Margin on sales in the published financials not comparable as Sept. 06 does not include KBDL a 100% subsidiary

Performance analysis

• An increase in the operating margins despite cost push • Despite a 29% growth in operating margins PBT growth of only 4% on account of interest & depreciation – Rights issue approved by the Board expected in the first half of the next financial year • Healthy growth in operating margins of 31% in the combined business

Summary Balance Sheet

UNITED BREWERIES LIMITED BALANCE SHEET Amounts in rupees million

Sources Share Holders Funds Loan Funds

Total Sources

Application Fixed Assets Investments Net Current Assets

Total Application 30.9.07

5,998 4,075

10,073

5,583 4,762

10,344

4,012 7,185

11,197

3,498 7,766

11,263 As at

6,172 591 3,310

10,073 As at COMBINED BUSINESS 31.3.07

5,262 591 4,491

10,344 30.9.07

7,462 1 3,733

11,197 31.3.07

6,561 1 4,702

11,263

Ratios

UNITED BREWERIES LIMITED

Rupees Million

Debt As at 30.9.07

As at COMBINED BUSINESS 31.3.07

30.9.07

31.3.07

4,075 4,762 7,185 7,766 Net Worth GEARING PBIDT Interest INTEREST COVER 5,998 0.68

112 19 5.90

5,583 0.85

162 28 5.77

4,012 1.79

143 31 4.55

3,498 2.22

186 54 3.47