United Breweries Limited half yearly briefing Apr 06- Sept 06

Presentation October 2006

Key performance highlights

28% volume growth Growth of Kingfisher mild 22%, strong 48% KF Strong now No. 1 Brand in India KF Premium remains No.1 EBITDA Rs.87 Crore as against Rs.64 Crore, growth of 35% versus H1 last year Profit after tax - over 100% growth Operating margins remain at over 20%. Capacity expansion program (Rs.141 crores , 22% increase capacity) ,& green field sites underway (Rs.92 crores), Orrisa 15lac
cases & Rajasthan 72 lac cases p.a.)

Enhanced capacities to be completed before the coming summer season

Operations Review

UB : Growth Sept 06 vs Sept 05

Growth surge sustained
1. 1 11% 1. 1 11%
Mild, 1.1% 11 Strong, 1.1% 11

H1 1111 -11

specially in the Strong beer segment

1. 11 11. 1 1. 11 11. 1
*Combined Operations

KINGFISHER GROWTH
1% 1

1% 1

F Strong now the No. I strong beer brand AND No.I top selling brand in India K F Premium 2nd top selling brand in India, and No.1 Mild beer brand

K F Premium

K F Strong

Market Share
1.1 1%

1.1 1%

1.1 1% 1% .1 1% .1 Mt. Shiv 1% .1 Fosters Others

UBL Group

SAB

Mohan M

Market Share

38.3%
11 .1% 11 .1% 1.1 1% 1.1 1% 1.1 1%
MM Fosters

1% .1 UBL Group SAB + Mt. Shiv

Others

Competition
International players entry likely to stimulate market growth
APB: Possible acquisition of Manav, Lilasons and in addition to Arlem Carlsberg : License for Greenfield in Rajasthan; acquisition of Himneel Budweiser: Stake in Crown/AP for Greenfield

Fosters acquisition by SABMiller

Most likely to be positioned as affordable premium(5%), cross lined to Kingfisher

Investment in brands and brand equity will play a key role in driving competitive advantage

Financial Review

In rupees crore

Results Sept 11 United Breweries Limited

Half year ended 1. . 11 111 1 1. . 11 111 1 Unaudited

Net Sales/Income from operations Other Income Total Income Expenditure Cost of production Advertisement & Sales Promotion Selling & Distribution Other operating Costs PBIDT Finance charges Depreciation Profit Before Non recurring items &Taxation Non Recurring items Taxation Net Profit COMBINED BUSINESS PBIDT Finance charges Depreciation Profit Before Non recurring items &Taxation

1 11 1. 1 11 . 1 1 11 1. 1 1 11 1. 1 1. 1 11 1. 1 11 1. 1 11 1. 1 11 1. 1 11 1. 1 11 1. 1 11 (11 ) .11 1. 1 11

1 11 1. 1 11 . 1 1 11 1. 1 1 11 1. 1 1. 1 11 1. 1 11 1. 1 11 1. 1 11 1. 1 11 11 . 1 1. 1 11 (11 ) .11 (11 ) .11 1. 1 11

1% 1

1% 1

1% 1

11 1%

1 11 1. 1 1. 1 11 1. 1 11 1. 1 11

1. 1 11 1. 1 11 1. 1 11 1. 1 11

1% 1

1% 1

30.09.06 include results of recently merged ABDL & MBDL

EBITDA SEPT 05 Vs SEPT 06

Revenue effect in Rs. Crore Decrease in Interest Income, ( 111 . ) Increase on realisation , 11 .11
Higher Ad spends, ( 11 ) .11 Cost effect in Rs. Crore Higher price of Inputs, (1 ) .11

Vol. driven increase, 1. 1 11

Higher operating costs, (1 ) .11

Higher staff costs, (1 ) .11

Increase other Selling Costs, ( 11 ) .11

Revenue Effect Vol. driven increase Increase on realisation Decrease in Interest Income

Cost Effect Rs. crore Rs. crore 1. 1 11 (111Higher price of Inputs . ) 1. 1 11 (11 ) .11Increase other Selling Costs (111 . ) (111Higher staff costs . ) (111Higher operating costs . ) (11 ) .11Higher brand spends 1. 1 11 (11 ) .11 + 1. 1 11

Key Ratios
UBL As a t As a t

Rupees Million De bt Ne W t orth GEARING PBIDT Inte st re INTERES COVER T Capital Em ploye d ROCE

1.1 1 1 .1 11 ,11 11 ,11 11 .1 11 1 11 1 11 .1 11 ,11

1.1 1 1 .1 11 ,11 11 ,11 11 .1 11 1 11 1 11 .1 11 ,11

1% 1 1 % for the qtr for the qtr EPS 1.1 11 11 .1 EPS in the curre ye is on a face value of Re1 nt ar .

Outlook
Expect strong double digit growth, led by strong beer Focus on building brand equity MAPL debt restructuring now complete, savings will accrue to combined operations in H2 KBDL operations to be merged with UBL by end March 2007 Continuing price control in major markets Real inflationary increases in key raw materials Large Capital outlay to meet growing demand