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United Breweries Limited

Investors Meeting August 2007

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The Indian Beer Industry

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Alcohol Consumption

India EmergingMarkets

21.5% 87%Beer

Spirits/Liquor

Wine 5%

8%

<0.5%

78%Beer is under represented in

India

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Consumption Per Capita

India China USA

1 litre

23 litres

83 litres

24 litres

World Average

12 litres

Indonesia

1 litre per capita is a major milestoneachieved in India in the last 12 months,

BUT ………

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Industry Growth

5%

10%

15%

20%

25%

30%

5 YearCAGR 2005

2006 2007

Future:strong doubledigit growth

2008 +

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Opportunity for Growth

• Current population 1.1 billion• Over 50% of the population is below the age of 25 years, demographics remain until 2020•Increasing personal GDP•The emerging young population hold more liberal views on alcohol, than earlier generations

Higher penetration

Sustainable profit growth

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UBL’s Capability

• Iconic brand – KINGFISHER

• Balanced portfolio of supporting brands

• Manufacturing network across all major states

• Leadership in cold chain management, and point of sale visibility

• Established trade relationships

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UBL’s Competitive Advantage-Through our Promoters

UBLS & N UB Group

• Brewing processes• Procurement synergies• International best practice• Experience in capacity investment• People resource

• Strength in distribution• Enhanced recognition through KFA• Relationship with USL

• Buying influence• Route to market influence• One stop portfolio of leading brands for modern trade

Equal to competition Competitive Advantage

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Competitor Positions

• SABM– Established in India as the No 2 player– Investment in capacity– Brand launches eg Peroni, Castle

• International brands have not worked– Castle launched over 2 years ago > No market share– Peroni launched over 6 months ago > No market share– Fosters launched over 5 years ago, pre advertising ban

> 2% market share

1010

Competitor Positions• Carlsberg

– Acquired Himneel brewery early 2007, new greenfield breweries in Rajasthan & Maharashtra. Plans to launch a Polish beer.

• A – B– JV brewery with Crown in AP, plans to build more greenfield

units. Recent launch of Budweiser & Armstrong beer brands

• APB– 2007 acquisition of Aurangabad brewery, greenfield construction

in progress in AP.

• Coors– Announced plan to build a greenfield unit in Maharashtra

• Inbev– Recently announced JV entry into India.

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Impact of Competitors

• Invest in the market

• Invest in capacity

• Provide consumers with more choice

• Drive improvement through the upstream supply chain

BENEFIT ALL PLAYERS IN THE INDUSTRY

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Environment for New Competitors

• Excessive State regulation and intervention– Route to market– Economics, need to have a brewery in each state– Pricing– Licensing

• Driver of growth is Strong beer,– all new International entrants brands are leaders in

Mild beer not Strong

• Ban on advertising alcohol

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UBL Reaction to Competition

Maintain profitable Industry leadership• Aggressively invest in new capacity, and

upgrade process technology– Lower cost of investment:

• Europe $100 per HL• Russia $55 per HL• India $35 per HL

• Develop and launch exciting new products– Kingfisher Ultra, Kingfisher wine

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FULL YEAR FY’07

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Performance Highlights – FY’07• KF Strong overtakes KF premium to become

India’s biggest selling beer, sales of over 26m cases

• Invested around Rs200Cr in new capacity, to increase own brewery capacity by 20%, and 2 new greenfield breweries with over 8.5m cases of capacity pa

• Completed acquisition of KBDL, and now fully merged into UBL

• Market capitalisation exceeds $1bn• Total annual dividend of 25%

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Market Share

33%

48%

UBL SABM MM Mt Shiv Others

6%4%

9%

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Profit Performance – FY’07

EBITDA Net Profit

UBL Consolidated

Net ProfitEBITDA

Rs162 Cr +18%

Rs55 Cr+550%

Rs172 Cr +24%

Rs65 Cr+350%

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Q1’08

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Performance Highlights Q1’08

• KF Strong and KF premium outgrow the industry

• New greenfield breweries commissioned and in operation

• Capacity investment for 2008-09 on track

• Market capitalisation exceeds $1.7bn

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Kingfisher Performance – Q1’ 08

7.15m

7.7m

7.2m

9.3m

June 06 June 07 June 06

Industry Growth +7.2%

Premium

Industry Growth +19.5%

Strong

June 07

+7.6%+28.5%

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Profit Performance Q1’ 08• Price increases achieved on around 55% of

volume• Results impacted by:

– Capped capacity of Hyderabad brewery impacts UBL standalone results by Rs6Cr, profit of Rs6Cr recorded in UMBL

– Continuing impacts of prices increases on barley and hops affects margins

• UBL stand alone now includes KBDL, MBDL & ABDL, not included in last years numbers

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Profit Performance – Q1’08

EBITDA PBT

UBL Combined

PBTEBITDA

Rs79 Cr +54%

Rs71 Cr +5%

Rs105 Cr +18%

Rs65 Cr +57%

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THANK YOU