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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
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Operations Review
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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
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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
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Financial Review
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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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