United Breweries LimitedICICI Investors Conference

SingaporeMarch 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 6% giving impetus to growth

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

Indian Demographics – favorable to growth in beer consumption

• Current population 1.1 billion• Over 50% of the population is below the age of 25 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 – excellent opportunity for growth in beer consumption over the next decade and half.

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.

• State governments like Punjab, Rajasthan, Haryana & Chandigarh have in recent past made substantial changes in the previous distribution methods making beer more affordable as well as profitable.

• 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

India EmergingMarkets

21.5% 87%Beer

Spirits/Liquor

Wine 5%

8%

<0.5%

78%

Consumption Per Capita

India China USA

0.7 litres

23 litres

83 litres

24 litres

World Average

12 litres

Indonesia

Industry Growth

5%

10%

15%

20%

25%

30%

5 YearCAGR 2005

2006 2007

Beer Segmentation

Dec 05 Dec 06 Dec 05

MILD STRONG

Dec 06

+23.1% +35.4%

Market Consolidation

SAB Miller

UBLCirca 83%of market

Mohan Meakins

MSIL

OthersRecent new Entrants:

APBA – BCarslberg

UBL performance in the Indian Beer Story

Volume Growth – Combined Business

0

10

20

30

40

50

60

70

2003-04

2004-05

2005-06

Est2006-

07

Volumes inMio cases

Quarterly - EBITDA trend

0

10

20

30

40

50

60

June Sept Dec March

2004

2005

2006

Key Brands

Kingfisher Sandpiper Kingfisher

Mild Strong

ZingaroUB Export Bullet

Kingfisher Mild = No 1 top selling mild beer

Kingfisher Strong = No 1 top selling strong beer

Kingfisher Strong = No 1 top selling beer in India

20m22m

1.5m 1.8m3m

1.8m

Market Share

Mild Beer

Strong Beer 38%

66%

Market position by state: UBL is No.1 in 8 out of the top 10 state markets

Maharashtra

Tamil Nadu

Andra Pradesh

Karnataka

Mumbai

Rajasthan

Uttar Pradesh

Delhi

Madhya Pradesh

Kerala

16

13

13

10

8

7

6

5

3

2

% India Val.

No.1

No.1

No.2

No.1

No.1

No.1

No.2

No.1

No.1

No.1

UBL Position

Shareholder Return

Share price Rs.149.5 to Rs.268.5

Share price Rs.323 to Rs.1495 462%

76%

05/06

06/07*

* TSR to date, March 07

Legal Structure

S&N

UBL

37.5%

UBHL Public

37.5% 25.0%

Millennium Alcobev Ltd

50% 50%

UBL & MAL Separate Legal entitiesUBL subsidiaries – KBDL and its 2 subsidiaries

which would merge into UBL effective 1st Apr’06

MAL has 3 Subsidiaries namely – MBIL, Empee and UMBL

UBL & MAL Separate Legal entitiesUBL subsidiaries – KBDL and its 2 subsidiaries

which would merge into UBL effective 1st Apr’06

Board Of Directors

• 2 x UB Group (VJM Chairman)

• 2 x S & N

• 2 x Executive Directors (CEO & CFO)

• 3 x Independent Directors

Latest financialsDecember 2006

# Dec 06 results include ABDL + MBDL

Comparative results for Dec 05 Income Rs. 453.8Cr EBITDA Rs. 88.57 Cr.

Results Dec 06United Breweries Limited 31.12.2006 31.12.2005In rupees crore

Net Sales/Income from operations 601.10 392.88 Other Income 9.59 10.92 Total Income 610.70 403.80 51%

ExpenditureCost of production 283.05 182.76 Advertisement & Sales Promotion 115.48 82.22 Other operating Costs 93.69 53.24

PBIDT 118.48 85.57 38%Margin on sales 19.40% 21.19%

PBIDT 118.48 85.57

Finance charges 17.48 14.88

Depreciation 16.00 8.55

Profit Before Non recurring items &Taxation 85.01 62.14 37%

Non Recurring items - (13.18)

Taxation (31.58) (21.81) Net Profit 53.43 27.14 97%

COMBINED BUSINESSPBIDT 141.02 89.69 57%

Finance charges 40.89 36.37Depreciation 31.22 19.81 Profit Before Non recurring items &Taxation 68.91 33.51 106%

Nine months ended

Unaudited #

EBITDA Dec 05 Vs Dec 06

Revenue effect in Rs. Crore

Vol. driven

increase, 52.17 Increase

on realisation

, 80.88

Decrease in Interest Income, (1.33)

Cost effect in Rs. Crore

Increase other Selling Costs, (21.82)

Higher price of Inputs, (14.92)

Higher Ad

spends, (40.43)

Higher operating

costs, (11.46)

Higher staff costs, (10.18)

Rs. crore Rs. crore

Vol. driven increase 52.17 (14.92) Higher price of InputsIncrease on realisation 80.88 (21.82) Increase other Selling CostsDecrease in Interest Income (1.33) (10.18) Higher staff costs

(11.46) Higher operating costs(40.43) Higher brand spends

131.72 (98.81)

85.57 131.72 (98.81) 118.48

Revevue Effect Cost Effect

Summary Balance Sheet

UBL As at As at As at COMBINED BUSINESSRupees Million 31.12.06 31.12.05 31.3.06 31.12.06 31.3.06SourcesShare Holders Funds 5,590 3,892 5,072 3,516 3,159 Loan Funds 3,988 2,035 2,534 6,613 5,586 Total Sources 9,578 5,927 7,606 10,129 8,746 ApplicationFixed Assets 2,823 1,382 2,104 4,341 3,376 Investments 2,196 1,820 591 1,605 17 Net Current Assets 4,559 2,725 4,911 4,182 5,352 Total Application 9,578 5,927 7,606 10,129 8,746

Current Debt Profile

UNITED BREWERIES LIMITED Unaudited Audited Unaudited

Debt Profile 31.12.06 31.3.06 31.12.05

Amounts in rupees million

Long Term Debt 3,113 1,762 1,808

Working Capital funding 875 772 227

Total 3,988 2,534 2,035

Debt in Subsidiary 188 288

Debt in Joint Venture - UBL guarantee 1,866 2,500 2,500

Grand Total 6,043 5,322 4,535

Key Ratios

UBL As at As at As at COMBINED BUSINESSRupees Million 31.12.06 31.12.05 31.3.06 31.12.06 31.3.06

Debt 3,988 2,035 2,534 6,613 5,586

Net Worth 5,590 3,892 5,072 3,516 3,159

GEARING 0.71 0.52 0.50 1.88

PBIDT 1,185 856 1,371 1,410 1,487

Interest 175 149 239 409 529

INTEREST COVER 6.78 5.75 5.74 3.45 2.81

Capital Employed * 9,578 5,927 7,606 10,129 8,746

ROCE 12% 14% 18% 14% 17%for 3 qtrs for 3 qtrs for the year for 3 qtrs for the year

EPS 2.47 12.10 4.67 EPS for 3 qtrs ended 31.12.06 is on a face value of Re 1.

Average Realization and Cost of sales

Sales Realization Cost Index

100 105 106 105 105

61 57 59 59 59

0

20

40

60

80

100

120

31/03/2005 31/03/2006 June qtr 31-03-2007

Sept qtr31-03-2007

Dec qtr 31-03-2007

NSR

COS

Outlook

• GDP growing at healthier rate• Continued growth in disposable income• Encouraging demographics for over a decade• Anticipated liberalization of policies & duty

structures• Industry consolidated with high entry barrier• UBL is in advantageous position to capitalize on

opportunities