investors presentation 26, oct 06

8/6/2019 Investors Presentation 26, Oct 06

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United Breweries Limited

half yearly briefing Apr 06- Sept 06

Presentation October 2006


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Key performance highlights

28% volume growth

Growth ofKingfisher 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 of35% 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 comingsummer season


3/13

Operations Review


4/13

UB : Growth Sept 06 vs Sept 05

18.60%

24.80%

30.09.05 30.09.06

Strong,

32.50%

Mild,

16.80%

H1 2006-07

*Combined Operations

Growth surge sustained

specially in the Strong beer segment


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22%

48%

K F Premium K F Strong

KINGFISHER GROWTH

K F Strong now the

No. I strong beer

brand AND No.I top

selling brand inIndia

K F Premium 2nd

top selling brand in

India, and No.1 Mildbeer brand


6/13

Market Share

47.5%

30.6%

5.4%3.6%

2.3%

10.6%

UBL

Group

SAB Mohan

M

Mt.

Shiv

Fosters Others


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Market Share

47.5%

30.6%

3.6%

10.6%

2.30%

5.40%

UBL Group SAB + Mt. Shiv Others

MM

Fosters

38.3%


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Competition

International players entry likely to stimulate marketgrowth APB: Possible acquisition ofManav, Lilasons and in addition

to Arlem

Carlsberg : License for Greenfield in Rajasthan; acquisition ofHimneel

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 keyrole in driving competitive advantage


9/13

Financial Review


10/13

30.09.06 include results of recently merged ABDL & MBDL

Resu s Sep 06

Un ed B ewe es L m ed 30 9 2006 30 9 2005n upees c o e

Ne Sa es/ ncome f om ope a ons 415 12 272 00

O he ncome 5 37 9 08

To a Income 420 49 281 08 50%

Expend u e

Cos ofp oduc on 193.71 128.79

Adve semen & Sa esP omo on 69.19 51.42

Se ng & D s bu on 45.12 17.61

O he ope a ngCos s 25.51 18.94PBIDT 86.96 64.32 35%

F nancecha ges 12.00 10.39

Dep ec a on 10.15 5.68

P of Befo eNon recurring items &Taxation 64.82 48.25 34%

NonRecurring items - (13.18)

Taxation (24.09) (17.17)

Net Profit 40.72 17.90 127%

COMBINEDBUSINESS

PBIDT 109.73 78.14 40%

Financecharges 27.29 24.60

Depreciation 20.11 20.46

Profit BeforeNon recurring items &Taxation 62.33 33.08 88%

Ha fyearended

Unaudited


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EBITDA SEPT 05 Vs SEPT 06

t s

Vol.

dr

incr

35.93Incr

on

r lisation

, 54.39

Decrease

in Interest

Income,

(3.70)

st t s

Inc rease

other

Selling

Costs,

( 9.11)

igher

price of

Inputs,

( .16)

igher

Ad

spends,

(16.18)

igher

operating

costs,

(6.58)

igher

staff

costs,

(5.94)

s sVol. driven increase 35.93 (6.16) igherprice of Inputs

Increase on realisation 54.39 ( 9.11) Increase otherSelling Costs

Decrease in Interest Income (3.70) (5.94) igherstaff costs

(6.58) igheroperating costs

(16.18) igherbrand spends

86 6 (63 6)

+ 22 65

E t st E t


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Key Ratios

UBL As at As at

Rupees Million 30.9.06 30.9.05

Debt 3,058 1,779

Net Worth 5,479 5,196

GEARING 0.56 0.34

PBIDT 870 643

Interest 120 104

INTEREST COVER 7.25 6.19

Capital Employed 8,538 6,976

ROCE 10% 9%

for the qtr for the qtr

EPS 18.85 7.82

EPS in the current year is on a face value of Re 1.


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investors presentation 26, oct 06

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