United Breweries Limited

1. The UB Group
PRESENTATION
ON
McDOWELL & COMPANY
UNITED BREWERIES LTD
27th October 2005

2. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
Beer :
 48% market share nationally
 Sold in over 52 countries
 India’s 1st
global consumer brand - Kingfisher
Spirits :
 54% market share in the domestic market
 2nd
largest player in the world
 Both businesses poised for spectacular growth
 Compelling demographics
 Rapid rise in disposable income
 Changing lifestyle & spending pattern
 Slow but sure dismantling of regulatory
controls
India’s leading drinks group
UB Group (India)

3. The Market for Beverage Alcohol
These regulatory hurdles constitute
an entry barrier to the industry
Regulatory environment :
• The Indian market is highly regulated,
highly restricted and highly taxed.
• Licensing requirement exists for Raw material
procurement, Stocking of raw material, Production,
Inter-state movement, Retailing and Distribution.
• Controls also exist on Brand entry, Advertising,
Distribution & Pricing.
UB Group (India)

4. The Indian Market
The UB Group enjoys a unique advantage as the
Leader in both Spirits and Beer Segments
Re-distribution structure –
• Government market (65%) –State government is the
sole distributor
• Auction market (16%) – State government auctions
geographical territories which has led to monopolies /
cartels
• Free market (19%) – Through trade licenses
• Bargaining power in the distribution network is
commanded by players with premium brands, large
volume base and product range
UB Group (India)

5. The Indian Market
Spirits Market -
• India is a 112 million cases market, growing at around
9-10% p.a
• Armed Forces – another 12.5 million cases
• Whisky dominates – 62%
• Low Spirits consumption – Per capita < 2.1 liters p.a
• Changing lifestyle, exposure to global trends fueling
growth
• MNC’s entered 10 years ago, but yet to emerge strongly
• Industry has seen some shakeout consequent to
marginalization of smaller players
UB has aggressively consolidated its leadership position by
- Acquiring brands (Gilbeys Whisky) & Companies (SWC)
- Investing heavily in brand building
UB Group (India)

6. Acquisition of Shaw Wallace
• Shaw Wallace was the 2nd
largest player in spirits in India
(MS - 15%).
• UB Group acquired ~ 55% stake for a consideration of
Rs.13,000 mio in July 2005
• Stakes increased to 75% through open offer.
• Valuation underpinned by growth prospects and synergies
arising from combined MS.
• Vision to bring all Spirits business together and create
“United Spirits”
• Combined business would be amongst top 50 private
sector companies in India.
UB Group (India)
Combined brand portfolio gives leadership in ALL
flavors, geographies and price points

7. Phase I
• Investment division of McD to be demerged into NewCo
– All non-spirits investments to be demerged
– Demerged entity to have mirror shareholding as McD
• Merge all operating spirits companies into McD
–Swap ratios decided basis KPMG & Haribhakti valuations
• SWC itself may be merged few months later upon resolution of tax
/ other litigations
- However McD will directly hold 75% of SWC even in the
interim stage
Phase II
• Merger of SWC & its upstream overseas holding companies into
McD
– McD’s holding in SWC to be transferred to a Trust
– SWC’s holding in McD to be cancelled
Restructuring Mechanics
UB Group (India)

8. • Merger schemes of Phase I filed with Stock Exchanges
• Time frame for completion of mergers
• April – May 2006
• Appointed date April 1, 2005
• Following entities being merged
• McDowell & Company Limited (Listed)
• Herbertsons Limited (Listed)
• Triumph Distillers & Vintners Private Limited
• United Distillers India Limited
• Baramati Grape Industries Limited
• Phipson Distillery Limited
• United Spirits Limited
• Asian Opportunities & Investments Limited
•McDowell International Brands Limited
•Zelinka Limited
• Shaw Wallace Distilleries Limited together with its subsidiaries
• Non-spirits Investments being divested into McDowell India Spirits
Limited, a wholly-owned subsidiary
Restructuring Process – Status Report
UB Group (India)

9. UB Group (India)
Mergers…update
• Filing of schemes with Stock exchanges
completed
• Schemes to be filed with courts –1st
week of
December’05
• Court convened meetings- Mid January
• Final hearing by Courts –End March ’06
• Filing of orders with RoC and listing by end
April ‘06

10. Sales Performance HY–I -- FY’06
UB Group (India)
Company Line
Million cases
%
GrwthHY-I FY’04 HY-I FY’05
McDowell
Main
line
9.39 11.16 19%
TOTAL 12.39 13.51 9%
Company Line
Million cases
%
GrwthHY-I FY’04 HY-I FY’05
‘UNITED
SPIRITS’
Main
line
18.83 23.33 24%
TOTAL 27.13 30.17 11%

11. Resultant Structure
MCD (Spirits)
UBHL & Associates
Public
X%
z%
Trust
y%
MCD
(Investments)*
UBHL & Associates
Public
42.47%
57.53%
* Includes non-spirits investments Aventis, Mangalore Chemicals, UBHL, UBL etc
UB Group (India)
McD Results Sep’05
Rs Crores
YoY 2005 2004
Net sales 17% 630.57 541.2
Cost of goods Sold 400.26 63% 337.32 62%
staff cost 41.68 7% 41.57 8%
Advt & Sp 36.72 6% 38.84 7%
Other overheads 79.43 13% 83.58 15%
E B I T D A 82% 72.49 11% 39.90 7%
Interest /Finance cost 36.74 15.4
Depreciation 7.49 7.86
Profit before Tax 70% 28.26 4% 16.65 3%
Tax 12.26 6.73
Profit after Tax 61% 16.00 3% 9.92 2%

12. UB Group (India)
United Spirits Sep ‘05
Rs Crores
U S L
Net sales 957.22
Cost of goods Sold 477.22 51%
EBI TDA 122.16 13%
Interest/Finance cost 75.39
Depreciation 12.21
P B T 34.56 4%

13. Brand Performance HY–I -- FY’06
UB Group (India)
Brand FY’05 FY’06 % Grwth
Bagpiper Whisky 3.49 5.45 56%
McDowell’s No.1 Whisky 2.56 3.02 18%
McDowell’s No.1 Brandy 2.32 2.80 21%
McDowell’s Celebration Rum 2.03 2.18 7%
McDowell’s Signature Whisky 1.48 2.04 38%
Old Cask Rum 0.82 0.82 1%
Gilbey’s Green Label Whisky 1.15 1.11 (4%)
Blue Riband Gin Series 0.56 0.56 1%
Gold Riband Whisky 0.46 1.04 127%
Antiquity Rare Whisky 0.04 0.06 53%
Royal Challenge Whisky 0.44 0.46 6%
Director’s Special Black Whisky 2.27 3.49 54%
Director’s Special Whisky 1.93 2.38 18%
White Mischief Vodka 2.78 4.20 51%

14. • Spirit prices have been rising since early 2004
• Failed sugarcane crop
• Increased dosage of alcohol in motor spirit
• Spirit prices softening – but quantum step-up from earlier levels
• Furnace Oil prices spiralling
Raw Material Price Trends
UB Group (India)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
'94-95 '95-96 '96-97 '97-98 '98-99 '99-00 '00-01 '01-02 '02-03 '03-04 '04-05 APR
05
MAY
05
JUNE
05
JULY
05
AUG
05
Rs./MT
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Rs./BL
MOLASSES Rs/MT RECTIFIED SPIRIT Rs/BL ENA Rs/BL

15. • Cost push offset by
• Increase in NSR
• Decrease in market spends
• Strategic buying of raw material including stock build-up
• Increase in NSR / Decrease in Spends
• UB has been in the forefront of the industry initiatives to drive
prices up and spends down
• Have spearheaded industry meetings with State Govts to
obtain price increases e.g. TN, Kerala, Delhi, Rajasthan
• McDowell’s NSR increase Rs 29 / case
• Decrease in COG
• Stocks built up pre-April 2004 cushioning impact of the rise in
prices
• Imported molasses
• Strategic timing of purchases to effect price reductions
• Result:
• HY-I costs of FY’04 are still lower than HY-I of FY’05 by
Rs.19/case
• Fuel cost impact accounts for Rs.5/case
Trends - Realization & Costs
UB Group (India)

16. • Brand building exercise continues
• Packaging Innovations introduced; Others on the anvil
• Reduces costs; beats counterfeiting
• Tetra packs
• Pouch Packs to replace mono-cartons
• Other Tamper-proof and tamper-evident packaging
• Synergies
• Detailed exercise undertaken with help of Accenture to
identify potential areas
• Procurement
• Market spends
• Terms of Trade
• Removal of clashing interests e.g. Competing Brands,
Duplicate Mfg Sources
• Duplicate Services / Infrastructure
• Costs of Business e.g. levies
Trends - Realizations & Costs (contd.)
UB Group (India)

17. Synergies – Costs & Revenues
UB Group (India)
• Total synergies estimated in excess of Rs 100 cr on a sustainable
basis (Rs 0.50/bottle)
• Major synergies from areas other than consumer price increases
• Majority of revenue synergies not quantified

18. • Sales Volumes > 61 million cases
• Bagpiper – India’s Largest Alcobev brand > 11 million cases
• McDowell’s No.1 family - ~ 17 million cases
• EBITDA Rs. 275 crores
•Realization of synergies would have commenced in full swing
Outlook FY’06 United Spirits
UB Group (India)

19. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
United Breweries Limited

20. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Key Highlights
• PBDIT (UBL) for the half year Rs. 64.3 crores, and
increase of Rs.40.5 crores versus last year
• PBDIT (Combined business) Rs. 78.1crores, and
increase of Rs.68 crores versus last year
• Volume growth of 22% in UBL & in the combined
business and continues to outperform the industry
• Price increases achieved in a number of key states
• Interim dividend of 15% paid by UBL
• UBL - Winner of Super brands award

21. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Summary P & L
Profitability Statement Year ended
United Breweries Limited 30.9.2005 30.9.2004 31.3.2005
In rupees crore Audited
Income
Net Sales/Income from operations 272.00 211.93 453.91
Other Income 9.08 3.64
Total Income 281.07 215.57 453.91
Expenditure
Cost of Production 107.09 104.94 209.12
Advertisement & Sales Promotion 69.03 52.47 110.17
Other operating Cost 40.64 34.36 78.01
PBIDT 64.31 23.80 56.61
Finance charges 10.39 14.61 20.82
Depreciation 5.68 4.39 10.57
Profit Before Non recurring items &Taxation 48.24 4.80 25.22
Non Recurring items (13.18) -
Provision for Taxation (17.17) (1.20) (11.18)
Profit after tax 17.90 3.60 14.04
COMBINED BEER BUSINESS
PBIDT 78.14 10.12
Finance Charges 26.61 25.45
Depreciation 16.14 15.57
Profit Before Taxation 35.39 (30.90)
Half year ended
Unaudited

22. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Key Drivers of Performance
• Volume growth
• Implementation of price increase in key
states
• Reduction in cost of sales driven by bottle
cost
• Synergized operation between UBL &
MAL

23. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
2003-04
UBL, 46
SAB, 31
M M, 6
Others, 17
UBL
SAB
M M
Others
2004-05
UBL, 48
SAB, 31
M M, 5
Others, 16
UBL
SAB
M M
Others
Apr to Sept 05
UBL, 49
SAB, 28
M M, 6
Others, 17
UBL
SAB
M M
Others
Market Share Movements

24. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Volume Performance
Volume Performance
91
57
22
36
22
9
44
27
11
0
10
20
30
40
50
60
70
80
90
100
2004-05 Ytd Sept 05 Qtr Sept 05
Volume-miocases
Industry
UB
Combined

25. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Analysis by Pack Type
Pack Salience Sept 04
Bottle Quartz
88%
Bottle Pint
10%
Cans
1%
Draught
1%
Pack Salience Sept 05
Bottle Quartz
86%
Bottle Pint
11%
Cans
2%
Draught
1%

26. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Average Realization and Cost of sales
Sales Realization Cost Index
100
106
115
129
63 68 72 70
0
20
40
60
80
100
120
140
Mar-04
May-04
Jul-04
Sep-04
Nov-04
Jan-05
Mar-05
May-05
Jul-05
Sep-05
SR
COS
Realization drivers:
• Andhra – Price revision after 7
years
• Kerala – Price revision after 4
years
• Delhi – Matched Kerala prices
• Rajasthan – Auction market to
Govt. distribution, policy changes
• Price increases in 2004-05 to
offset bottle cost maintained
Cost Drivers:
• Rationalization in bottle prices
• Optimization of Power & inputs
costs
• Synergy of operation –
economies of Scale

27. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Cost of Sales Analysis
Cost to Sales - Ytd Sept 05
Bottles
41%
Others
59%
Cost to Sales - Ytd Sept 04
Bottles
52%
Others
48%

28. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Integration of UBL and MABL
• Rationalisation of brand portfolio by state
• Changes to sourcing of beer to achieve least
cost supply
• Closure of Mumbai based MABL head office
• Synergies taken in the areas of:
– Raw material procurement
– Marketing and promotional costs
– Headcount

29. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
Trading Outlook
• Strong volume performance expected to continue
– Strong beer segment to continue lead
• Hardening of raw material costs
– Barley
• Other Costs in line with the growth in volume
• Substantial capital expenditure – over Rs.400 crore
approved by the board to be incurred over a period of
seven years to meet the growing demand
• Proposal to discuss merger of various subsidiaries, in
place – Substantial improvement in cash profits.

30. UB Group (India)
• The UB Group, is the market leader in both Spirits &
Beer business in the country
• The Group has a turnover of Rs 3700 crores
• The core Beverage Alcohol business account for 80% of
the group turnover
• Other interests include Fertilizer, Engineering , Life
Science, Infrastructure development & Media
• The Group is professionally managed and is headed by
Dr Vijay Mallya, the Group Chairman
The UB Group- An introduction
UB Group (India)
THANK YOU