Download Investor Presentation, May 2006

United Breweries Limited
Year Briefing – April 05-March
06
Presentation May 2006
Key Highlights – 12 months

Volume growth of 19% and 22% in UBL & in the combined business
respectively and continues to outperform the industry

Record sales for Kingfisher lager >20m

Kingfisher strong reaches No1 position in strong beer segment, sales
>17m

Out beats Industry growth of 14% (1051 mio against 918 mio)

Market share as on March 06 40% (combined 50.3%)

Margins up from 13% to 20% of NSR

Two fold increase in EBITDA and three fold increase in PAT

Stock split announced
Summary P & L
Profitability Statement
United Breweries Limited
Year ended
Year ended
31.3.2006
31.3.2005
In rupees crore
Unaudited
Audited
Realisation
increase
Rs.16.46 cr
3%
Income
Net Sales/Income from operations
Other Income
Total Income
Expenditure
Cost of Production
Advertisement & Sales Promotion
Other operating Cost
PBIDT
Margin on Net sales
Finance charges
Depreciation
Profit Before Non recurring items &Taxation
Non Recurring items
Provision for Taxation
Profit after tax
COMBINED BEER BUSINESS
PBIDT
Finance Charges
Depreciation
Profit Before Taxation
580.48
15.09
595.56
429.25
24.66
453.91
228.37
156.19
96.23
114.77
20%
21.87
13.55
79.35
(1.61)
(29.37)
48.37
209.12
110.17
78.01
56.61
13%
20.82
10.57
25.22
123.10
52.50
31.80
38.80
29.80
50.90
31.10
(52.20)
(11.18)
14.04
Volume Increase
Rs.55.97 cr
10%
Interest income
Reduction
Rs.9.57 cr
(2%)
Input cost reduction
Bottles Rs.9.78 cr
2%
Other cost
Increase Rs.14.48 cr
(2%)
PBIDT % margin for 31.3.05
10% on the NSR of
Current year
Hence net increase is 10%
Summary Balance Sheet
UBL
Rupees Million
Sources
Share Holders Funds
Loan Funds
Total Sources
Application
Fixed Assets
Investments
Net Current Assets
Total Application
As at
As at COMBINED BUSINESS
31.3.06
31.3.05
31.3.06
31.3.05
5,380
2,409
7,790
2,521
2,803
5,324
2,436
5,474
7,910
(503)
5,831
5,328
1,140
2,695
3,954
7,790
1,138
1,465
2,721
5,324
3,433
1,230
3,247
7,910
2,834
50
2,443
5,328
Key Ratios
UBL
As at
Rupees Million
As at COMBINED BUSINESS
31.3.06
31.3.05
31.3.06
31.3.05
Debt incl. guarantee
2,747
3,341
5,474
5,831
Net Worth
5,380
2,521
2,436
GEARING
0.51
1.33
2.25
PBIDT
1,148
566
1,231
298
Interest
219
208
525
509
5.25
2.72
2.34
0.59
7,893
5,405
7,910
5,328
INTEREST COVER
Capital Employed
ROCE
EPS
15%
21.93
* Includes KBDL investment of Rs. 1230 million
10%
5.41
16%
(503)
6%
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
Growth Chart
UB vs Industry
25%
19%
Growth %
20%
15%
20%
14%
Industry
9%
10%
10%
10%
9%
3%
5%
0%
2005-06
2004-05
2003-04
9%
UB
Combined
Market Share
Market Share in %
UBL
2004-05 2005-06
Combined
2004-05 2005-06
Overall
38%
40%
48%
50%
Mild
65%
67%
70%
71%
Strong
23%
27%
35%
39%
Average Realization and Cost of sales
Realization drivers:
140
Sales Realization Cost Index
• Kerala – Price revision after 4
years
123
120
100
• Andhra – Price revision after 7
years
100
109
• Delhi – Matched Kerala prices
• Rajasthan – Auction market to
Govt. distribution, policy changes
80
60
63
67
• Rationalization of market spends
consequent net retention increase
66
•Aggressive price revision to offset
bottle cost push
40
Cost Drivers:
20
• Rationalization in bottle prices
0
2004
2005
2006
SR
COS
• Optimization of Power & inputs
costs
• Synergy of operation – economies
of Scale
Thank You