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

0% 50% 100%

2009-10

2001-02

1989-90

Low (< Rs.45 K)

Middle (Rs. 45K -Rs.90K)

High (> Rs. 90K)

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 – excellent opportunity for growth in beer consumption over the next decade and half.

94.2

70.8

636

485

447

455

0% 20% 40% 60% 80% 100%

2011

2001

> 60 years

20-59

0-19

Population demographics

Figures millionSource: 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

India EmergingMarkets

21.5% 87%Beer

Spirits/Liquor

Wine 5%

8%

<0.5%

78%

Per Capita Beer Consumption

0.912

22 24

59

82

100

125

0

20

40

60

80

100

120

140

India

Indo

nesia

China

World

Avg

Russia

USA UK

Germ

any

Country

Lit

ers

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

Volume Growth – H1

+ 12.6%

+ 14.3% + 13.8%+ 16.6%

Industry CombinedBusiness

UBLOnly

MABLOnly

Change in Consumption pattern

0

10

20

30

40

50

60

701995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

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

Kingfisher PerformanceKingfisher premium - % growth

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2005-06 2006-07 2007-08 Est.

Industry-Mild

KF premium

Kingfisher Strong - % growth

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%40.0%45.0%50.0%

2005-06 2006-07 2007-08 Est.

Industry-Strong

KF Strong

UBL V’s SABM Market Share

33%

47%

UBL SABM

March 07

Financial Performance

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

Results September 07United Breweries Limited 30.9.2007 30.9.2006

In rupees crore Incl. of KBD

Net Sales/Income from operations 579.66 415.12 464.59 Other Income 13.79 5.37 Total Income 593.45 420.49 41%

ExpenditureCost of production 301.88 193.70 Advertisement & Sales Promotion 144.72 114.31 Other operating Costs 34.61 25.51

PBIDT 112.23 86.97 29% 88.25 Margin on sales 19.36% 20.95% 18.99%

PBIDT 112.23 86.97

Finance charges 19.02 12.00

Depreciation 26.02 10.15

Profit Before Non recurring items &Taxation 67.19 64.82 4%

Non Recurring items

Taxation (25.01) (24.09) Net Profit 42.18 40.73 4%

COMBINED BUSINESSPBIDT 143.31 109.75 31%

Finance charges 31.50 27.67Depreciation 38.05 20.29 Profit Before Non recurring items &Taxation 73.76 61.79 19%

Year ended

Audited

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 As at As at COMBINED BUSINESSAmounts in rupees million 30.9.07 31.3.07 30.9.07 31.3.07SourcesShare Holders Funds 5,998 5,583 4,012 3,498 Loan Funds 4,075 4,762 7,185 7,766 Total Sources 10,073 10,344 11,197 11,263 ApplicationFixed Assets 6,172 5,262 7,462 6,561 Investments 591 591 1 1 Net Current Assets 3,310 4,491 3,733 4,702 Total Application 10,073 10,344 11,197 11,263

Ratios

UNITED BREWERIES LIMITED As at As at COMBINED BUSINESSRupees Million 30.9.07 31.3.07 30.9.07 31.3.07

Debt 4,075 4,762 7,185 7,766

Net Worth 5,998 5,583 4,012 3,498

GEARING 0.68 0.85 1.79 2.22

PBIDT 112 162 143 186

Interest 19 28 31 54

INTEREST COVER 5.90 5.77 4.55 3.47