UB Final-ppt (2)

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January 22rd ,2008 Copyright Protected

UB Group InvestorPresentation

UNITED

BREWERIESLIMITED


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Introduction

Flagship company of United Breweries Group. UBL was founded in 1915.

It has 48% Market Share in the country.

Available in 52 countries across the globe.

Rated as top 10 fastest growing brands in UK.

Multi-Faceted strategic alliance with Scottish and Newcastle plc (S&N).an

international brewery. Millennium Alcobev Pvt Ltd(MABL), is a joint venture in which UB along with

its subsidiary and (S&N) have equal stake of 50%.

Management Team

q Dr. Vijay Mallya- Chairman.

q Mr. Kalyan Ganguly- President & Managing Director


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Mission

To be the recognized leader in our target markets.

To be the preferred employer wherever they operate.

To recognize the values of human assets.

To be the partner of choice for customers, suppliers

and other creators on innovative concepts.


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Product Portfolio

UBLs Products

Kingfisher Premium

Kingfisher Strong

UB export lager

London Pilsner

UB Premium Ice

MABL Products

Sandpiper Lager Zingaro Beer

Kalyani Black Label


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Kingfisher

Flagship brand of United Breweries Ltd.

The largest selling Beer in India.

6 bottles of Kingfisher are sold every second in India.

Kingfisher Strong has become the No.1 Strong Beer in India.

Kingfisher Premium which continues to remain a leading brand in the mild

beer segment.

UBL commands a market share of around 40% with 67% of the market

share in the mild beer segment and 27% in the strong beer segment.


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UBL: New Initiatives

Kingfisher Blue

q A new premium offering targeted at young, trendy consumers who seek zest andexcitement from life.

q Has been launched in select markets and will be extended across the country overthe next few months

q It has been extremely well received by the consumers and already outsells

international; new entrants

Kingfisher Bohemia

q Anytime Anywhere' wines which complement any type of cuisine.

q South African wine available in a Red White and Rose variants. It is already themarket leader among the premium wines across the country

Kingfisher Ultra (KF Ultra)

q KF Ultra redefines premium beer segment in India.

q Launched in mid September 2009.

q Tagline The Emperor of Good Times.


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Production


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Mfg Network.


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Global Market Scenario

MARKET SIZE

vA 133 billion lt. Global Market

vGlobal Growth: An average 10%

growth for last 10 yrs

vIndian contribution: 1.2% of Global Sales

vIndian Consumption: 3% of GlobalConsumption

vIndia: 2 lt./capita consumption

v

MARKET STRUCTURE

vHenieken, Carlsberg, Anheuser Busch,InBev,

Budweiser, Fosters, SAB, Kingfisher(UBG)

v

v


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Indian Market Scenario

Market Size A 140 million cases annual consumption market

South and west zones account for bulk (> 75 %) ofthis market

Major beer consuming centers Mumbai;Bangalore; Chennai

The per capita consumption stands at a low 0.5 ltr.per annum, compared to the Chinese average of

20 ltr and the US and German average of 100 ltr. Andhra Pradesh enjoys the highest consumption of

Beer, followed by Maharashtra and tailed by TamilNadu.

v


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Market Structure

The beer market is estimated to grow over 70 millioncases a year.

In the last three years, the market has grown at 8-10% per annum.

Major beer brands (manufacturers) Kingfisher,SAB Miller, Carlsberg, Fosters

Foreign brands SAB Miller, Carlsberg, Fosters,Budweiser


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UB Group Acquisitions


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Market Share

UB Groups Kingfisher Beerenjoys a Leading Market Sharein India of over 49%.

SAB Miller breweries, has grown

to gain almost 43% of theMarket segment.

Carlsbergs Tuborg andAnheuser-Buschs Budweiserand Heinken have a combined

market share of less than 7%. Regional Players enjoy a

negligible market share ofalmost 1%.


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P&L Statement

(Rs. Crore)

Sales

Sales Growth

Exenses


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Balance Sheet Statement

(Rs. Crore)

SOURCES OF FUNDSOwner's Fund

Equity Share Capital

ShareApplicationMon


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Cash Flow Statement

(Rs. Crore)

Fund Flow from O


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Revenue Analysis


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Loan Funds


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Owners Fund


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Financial Analysis


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Current Ratio


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Debt to Capital


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Interest Coverage Ratio


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Inventory Turnover Ratio


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Debtor Turnover Ratio


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Fixed Asset Turnover Ratio


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EPS


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DPS


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RONW


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Stock Performance in the past


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Breweries Industry & GovernmentPolicies

Until 1989, licensing policies were restricted In June 2007, 100% of FDI investment was allowed.

Post 2007, liquor manufacturing no longer needs alicenses.

State specific Manufacturing Licenses: Mandatory State specific Sales: Cross Sales prohibited by law

Obtaining Licenses: Lengthy& expensive

Different State-wise structure:

oExcise Dutyo Import and Export Levies


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Challenges

Predominantly a spirits marketEntry of international Players

Global markets experiencing low / stagnating

growth in recent yearsPlagued with a myriad of taxes & levies


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Cheers

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