United Breweries Ltd. — Interim / Quarterly Report 2021

Aug 17, 2020

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August 17, 2020

1. The Secretary BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Fort Mumbai 400 023

2. The Manager-Listing Department National Stock Exchange of India Limited Exchange Plaza, 5[th] Flr., Plot. C/1, G Block Bandra-Kurla Complex, Bandra (East) Mumbai – 400 051

Dear Sir,

Sub: Newspaper Advertisement

Pursuant to Regulation 47 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we enclosed herewith copies of advertisement of Unaudited Financial Results Statement for the quarter ended June 2020, published in the required Newspapers on August 16, 2020.

Kindly take the above on record.

Thanking you,

Yours faithfully, For UNITED BREWERIES LIMITED

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GOVIND IYENGAR

Senior Vice President – Legal & Company Secretary

Encl: a/a

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FINANCIAL EXPRESS - 16/08/2020

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UNITED BREWERIES LIMITED

UNITED BREWERIES LIMITED

Registered office: UB Tower, UB City, No. 24, Vittal Mallya Road, Bengaluru - 560001 Phone: +91-80-45655000. Fax: +91-80 - 22211964, 22229488 CIN: L36999KA1999PLC025195 Email: ublinvestor@ubmail.com Website: www.unitedbreweries.com

Registered office: UB Tower, UB City, No. 24, Vittal Mallya Road, Bengaluru - 560001 Phone: +91-80-45655000. Fax: +91-80 - 22211964, 22229488 CIN: L36999KA1999PLC025195 Email: ublinvestor@ubmail.com Website: www.unitedbreweries.com Rs in Lakhs.

Rs in Lakhs.

Statement of unaudited standalone financial results for the quarter ended June 30, 2020

Statement of unaudited consolidated financial results for the quarter ended June 30, 2020

				Quarter ended	Quarter ended		Year ended				Quarter ended	Quarter ended		Year ended
	Particulars		June 30, 2020	March 31, 2020	June 30, 2019		March 31, 2020		Particulars	June 30, 2020	March 31, 2020		June 30, 2019	March 31, 2020
			Unaudited	Audited*	Unaudited		Audited			Unaudited	Audited*		Unaudited	Audited
**1 **	Income								1 Income
	(a) Revenue from operations(gross of excise duty) (refer Note 7)		126,225	309,897	470,720		1,464,646		(a) Revenue from operations(gross of excise duty) (refer Note 7)	126,282	309,991		470,842	1,465,115
	(b) Other income		141	61	316		911		(b) Other income	148	76		325	930
	Total income from operations		126,366	309,958	4,71,036		1,465,557		Total income from operations	126,430	310,067		471,167	1,466,045
**2 **	Expenses								2 Expenses
	(a) Cost of materials consumed		21,338	65,385	97,555		297,486		(a) Cost of materials consumed	21,290	65,145		97,293	296,605
	(b) Purchase of stock-in-trade		717	5,592	4,742		19,497		(b) Purchase of stock-in-trade	717	5,592		4,742	19,497
	(c) changes in inventories of finished goods,								(c) changes in inventories of finished goods,
	work-in-progress and stock-in-trade		4,984	(1,041)	(582)		(955)		work-in-progress and stock-in-trade	5,021	(1,052)		(569)	(989)
	(d) Excise duty on sale of goods		75,537	167,480	265,867		814,191		(d) Excise duty on sale of goods	75,537	167,480		265,867	814,191
	(e) Employee benefits expense		11,510	12,787	12,310		49,977		(e) Employee benefits expense	11,555	12,865		12,433	50,412
	(f) Finance Costs		715	476	768		3,112		(f) Finance Costs	715	476		768	3,112
	(g) Depreciation and amortisation expense		5,052	7,337	6,921		28,497		(g) Depreciation and amortisation expense	5,056	7,343		6,922	28,510
	(h) Other expenses (refer Note 7)		21,705	46,469	57,934		197,010		(h) Other expenses (refer Note 7)	21,752	46,659		58,169	197,815
	Total expenses		141,558	304,485	445,515		1,408,815		Total expenses	141,643	304,508		445,625	1,409,153
3	(Loss)/profit before tax		(15,192)	5,473	25,521		56,742		3 (Loss)/profit before tax	(15,213)	5,559		25,542	56,892
4	Tax expense								4 Tax expense
	(a) Current tax		-	2,563	9,858		17,550		(a) Current tax	-	2,589		9,864	17,597
	(b) Deferred tax (credit)		(3,763)	(1,209)	(791)		(3,531)		(b) Deferred tax (credit)	(3,763)	(1,212)		(791)	(3,534)
	Total tax (credit)/expense		(3,763)	1,354	9,067		14,019		Total tax (credit)/expense	(3,763)	1,377		9,073	14,063
5	(Loss)/profit for the period/year		(11,429)	4,119	16,454		42,723		5 (Loss)/profit for the period/year	(11,450)	4,182		16,469	42,829
6	Other comprehensive income (OCI)								6 Other comprehensive income (OCI)
	Items that will not be reclassified to profit or loss in								Items that will not be reclassified to profit or loss in
	subsequent periods								subsequent periods
	Re-measurement gains/(losses) on defined benefit plans		19	(1,428)	(43)		(1,538)		Re-measurement gains/(losses) on defined benefit plans	19	(1,428)		(43)	(1,538)
	Income tax effect on above		(5)	359	15		387		Income tax effect on above	(5)	359		15	387
	Total other comprehensive income/(loss), net of taxes		14	(1,069)	(28)		(1,151)		Total other comprehensive income/(loss), net of taxes	14	(1,069)		(28)	(1,151)
7	Total comprehensive (loss)/income for the period/year		(11,415)	3,050	16,426		41,572		7 Total comprehensive (Loss)/income for the period/year	(11,436)	3,113		16,441	41,678
8	Paid up equity share capital (Face value of Re.1 each)		2,644	2,644	2,644		2,644		8. (Loss)/profit for the period/year attributable to:
9	Other equity						349,153		Equity shareholders of the Holding Company	(11,440)	4,158		16,462	42,773
10 Earning/(loss) per equity share in Rs.									Non-controlling interest	(10)	24		7	56
	(nominal value per share Re.1)**									(11,450)	4,182		16,469	42,829
	(a) Basic		(4.32)	1.56	6.22		16.16		9. Total comprehensive (loss)/income for the period/
	(b) Diluted		(4.32)	1.56	6.22		16.16		year attributable to:
** Not annualised for interim periods Segment information (also refer Note 4)				Quarter ended			Year ended Rs. in lakhs		Equity shareholders of the Holding Company Non-controlling interest 10. Paid up equity share capital (Face value of Re.1 each)	(11,426) (10) (11,436) 2,644	3,089 24 3,113 2,644		16,434 7 16,441 2,644	41,622 56 41,678 2,644
	Particulars		June 30, 2020	March 31, 2020	June 30, 2019		March 31, 2020		11. Other Equity 12. Earnings/(loss) per equity share in Rs.					349,382
			Unaudited	Audited*	Unaudited		Audited		(nominal value per share Re.1)**
1. Segment revenue Beer			125,510	309,431	470,170		1,462,613		(a) Basic (b) Diluted	(4.33) (4.33)	1.56 1.56		6.23 6.23	16.18 16.18
Non-alcoholic beverages			715	466	550		2,033		** Not annualised for interim periods
	Total revenue		126,225	309,897	470,720		1,464,646		Segment information (also refer Note 4)					Rs. in lakhs
2.	Segment results										Quarter ended			Year ended
	Beer Non-alcoholic beverages Total segment results		(7,303) (501) (7,804)	14,210 (892) 13,318	35,211 (2,019) 33,192		94,841 (4,838) 90,003		Particulars	June 30, 2020	March 31, 2020		June 30, 2019	March 31, 2020
										Unaudited	Audited*		Unaudited	Audited
	Other income Finance costs Other unallocable expenses (Loss)/profit before tax		141 (715) (6,814) (15,192)	61 (476) (7,430) 5,473	316 (768) (7,219) 25,521		911 (3,112) (31,060) 56,742		Total revenue 1. Segment revenue Beer Non-alcoholic beverages	125,567 715 126,282	309,525 466 309,991		470,292 550 470,842	1,465,115 1,463,082 2,033
NOTES: In March 2020, the World Health Organisation declared Coronavirus (COVID-19) to be a pandemic and consequently on March 24, 2020, the Government of India ordered a nationwide lockdown, which got extended in phases. The outbreak of COVID-19 pandemic in India has caused significant disturbance and slowdown of economic activities. 1. *Refer Note 9 See accompanying notes to the standalone financial results									2.Segment results Beer Non-alcoholic beverages Total segment results	(7,331) (501) (7,832)	14,281 (892) 13,389		35,223 (2,019) 33,204	94,972 (4,838) 90,134
	The Company's business operations have been significantly impacted by way of interruption of production, supply chain, etc. The Company has taken various precautionary measures to protect its employees from COVID-19. The Company has assessed the impact of this pandemic on its business operations and has considered all relevant internal and external information available upto the date of approval of these financial results in determining the recoverability and carrying values of property, plant and equipment, intangible assets, investments, trade and other receivables, inventories and other financial statement captions. The impact of COVID-19								Other income Finance costs Other unallocable expenses	148 (715) (6,814)	76 (476) (7,430)		325 (768) (7,219)	930 (3,112) (31,060)
	pandemic on the overall economic environment being uncertain, may affect the underlying assumptions and estimates used in preparation of these fnancial results, whereby actual								(Loss)/profit before tax	(15,213)	5,559		25,542	56,892

The Company has taken various precautionary measures to protect its employees from COVID-19. The Company has assessed the impact of this pandemic on its business operations and has considered all relevant internal and external information available upto the date of approval of these financial results in determining the recoverability and carrying values of property, plant and equipment, intangible assets, investments, trade and other receivables, inventories and other financial statement captions. The impact of COVID-19 pandemic on the overall economic environment being uncertain, may affect the underlying assumptions and estimates used in preparation of these financial results, whereby actual outcome may differ from those assumptions and estimates considered at the date of approval of these financial results. The Company will continue to closely monitor the situation and any material changes to future economic conditions. From May 2020, the Company has resumed its business activities in a phased manner in line with directives issued by the central and state governments.

Refer Note 9 See accompanying notes to the consolidated financial results NOTES:*

1. The standalone financial results for the quarter ended June 30, 2020 of United Breweries Limited (“the Company”) have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on August 14, 2020 and have been subjected to limited review by the statutory auditors of the Company. The standalone financial results have been prepared in accordance with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and in terms of Regulation 33 of the SEBI (Listing 3. Obligations and Disclosure Requirements) Regulations, 2015, as amended. 4. As per Ind AS 108, operating segment is a component of the Company that engages in business activities, whose operating results are regularly reviewed by the Company's Chief Operating Decision Maker ('CODM') to make decisions about resources to be allocated to the segment and assess its performance; and for which discrete financial information is available. Accordingly, the Company has identified its operating segments, as below:

In March 2020, the World Health Organisation declared Coronavirus (COVID-19) to be a pandemic and consequently on March 24, 2020, the Government of India ordered a nationwide lockdown, which got extended in phases. The outbreak of COVID-19 pandemic in India has caused significant disturbance and slowdown of economic activities. The Group's business operations have been significantly impacted by way of interruption of production, supply chain, etc.

The Group has taken various precautionary measures to protect its employees from COVID-19. The Group has assessed the impact of this pandemic on its business operations and has considered all relevant internal and external information available upto the date of approval of these consolidated financial results in determining the recoverability and carrying values of property, plant and equipment, intangible assets (including goodwill), trade and other receivables, inventories and other financial statement captions. The impact of COVID19 pandemic on the overall economic environment being uncertain, may affect the underlying assumptions and estimates used in preparation of these consolidated financial results, whereby actual outcome may differ from those assumptions and estimates considered at the date of approval of these consolidated financial results. The Group will continue to closely monitor the situation and any material changes to future economic conditions. From May 2020, the Group has resumed its business activities in a phased manner in line with directives issued by the central and state governments.

• a) Beer - This segment includes manufacture, purchase and sale of beer including licensing of brands

b) Non-alcoholic beverages - This segment includes manufacture, purchase and sale of non-alcoholic beverages

1. The consolidated financial results for the quarter ended June 30, 2020 of United Breweries Limited (“the Holding Company”), its subsidiary (together referred to as “the Group”) and its associate have been reviewed by the Audit Committee and approved by the Board of Directors at their meetings held on August 14, 2020 and have been subjected to limited review by the statutory auditors of the Holding Company. The consolidated financial results does not include the Holding Company's share of net profit/loss in respect of Kingfisher East Bengal Football Team Private Limited, an associate, which is considered as not material to the Group.

Considering the seasonality of the business, the revenue and profits do not accrue evenly over the year in respect of aforesaid operating segments. The Company's CODM does not review assets and liabilities for each operating segment separately, hence segment disclosures relating to total assets and liabilities have not been furnished.

1. On October 10, 2018, certain officials from the Competition Commission of India (“CCI”) had visited the Company for their investigation in relation to allegations of price-fixation and performed search of the premises and conducted inquiries with certain officials of the Company at its registered office. Pursuant to this, the Company made requisite filings and also certain officials of the Company appeared before the aforesaid authorities. The Director General, CCI has submitted the investigation report to the CCI for consideration which was also communicated to the Company on December 13, 2019, followed with an updated report on March 19, 2020 for filing its suggestion / objections, if any. The Company has not received any demand order in respect of this matter, hence management is of the view that it is not practicable to state an estimate of its financial effect, if any. Management, alongwith its legal advisors, are reviewing the aforesaid report and evaluating this matter; and believe that there are mitigating circumstances to counter presumptions made against the Company by the CCI as contained in the Competition Act, 2002.

2. The consolidated financial results have been prepared in accordance with the recognition and measurement principles laid down in the applicable accounting standards prescribed under Section 133 of the Companies Act, 2013, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended.

1. As per Ind AS 108, operating segment is a component of the Group that engages in business activities, whose operating results are regularly reviewed by the Group's Chief Operating Decision Maker ('CODM') to make decisions about resources to be allocated to the segment and assess its performance; and for which discrete financial information is available. Accordingly, the Group has identified its operating segments, as below:

1. The Bihar State Government (“the Government”) vide its notification dated April 5, 2016 had imposed ban on trade and consumption of foreign liquor in the State of Bihar. The Company had filed a writ petition with the High Court at Patna, requesting remedies and compensation for losses incurred on account of such abrupt notification, against which the Government preferred a special leave petition before the Supreme Court of India. Further, the Government did not renew brewery licenses for the financial year 2017-18 onwards and consequently the Company discontinued production of beer at Bihar and all its inventories lying with Bihar State Beverages Corporation Limited (BSBCL) were drained / destroyed. The matter is currently pending before the Supreme Court for final conclusion.

2. a) Beer - This segment includes manufacture, purchase and sale of beer including licensing of brands

b) Non-alcoholic beverages - This segment includes manufacture, purchase and sale of non-alcoholic beverages

Considering the seasonality of the business, the revenue and profits do not accrue evenly over the year in respect of aforesaid operating segments. The Group's CODM does not review assets and liabilities for each operating segment separately, hence segment disclosures relating to total assets and liabilities have not been furnished.

1. On October 10, 2018, certain officials from the Competition Commission of India (“CCI”) had visited the Holding Company for their investigation in relation to allegations of pricefixation and performed search of the premises and conducted inquiries with certain officials of the Holding Company at its registered office. Pursuant to this, the Holding Company made requisite filings and also certain officials of the Holding Company appeared before the aforesaid authorities. The Director General, CCI has submitted the investigation report to the CCI for consideration which was also communicated to the Holding Company on December 13, 2019, followed with an updated report on March 19, 2020 for filing its suggestion / objections, if any. The Holding Company has not received any demand order in respect of this matter, hence management is of the view that it is not practicable to state an estimate of its financial effect, if any. Management, along-with its legal advisors, are reviewing the aforesaid report and evaluating this matter; and believe that there are mitigating circumstances to counter presumptions made against the Holding Company by the CCI as contained in the Competition Act, 2002.

The financial impact on current assets arising from aforesaid matter was fully provided for. Also, during the financial year 2018-19, in order to maintain the assets in running condition, the Company commenced manufacture of non-alcoholic beverages at its existing manufacturing facility at Bihar using its existing property, plant and equipment at Bihar which has carrying value of Rs. 17,034 Lakhs as at June 30, 2020. Management believes that the carrying amount of these property, plant and equipment do not exceed their recoverable amount and accordingly no provision has been considered necessary by the management in this regard.

1. Revenue from operations for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019 is adjusted for reversals in variable considerations of Rs. 559 Lakhs, Rs. 992 Lakhs and Rs. 789 Lakhs, respectively, and that for the year ended March 31, 2020 is adjusted for such reversals of Rs. 1,702 Lakhs (excluding the amounts accrued and reversed within the said year).

2. The Bihar State Government (“the Government”) vide its notification dated April 5, 2016 had imposed ban on trade and consumption of foreign liquor in the State of Bihar. The Holding

Company had filed a writ petition with the High Court at Patna, requesting remedies and compensation for losses incurred on account of such abrupt notification, against which the Government preferred a special leave petition before the Supreme Court of India. Further, the Government did not renew brewery licenses for the financial year 2017-18 onwards and consequently the Holding Company discontinued production of beer at Bihar and all its inventories lying with Bihar State Beverages Corporation Limited (BSBCL) were drained / destroyed. The matter is currently pending before the Supreme Court for final conclusion.

Sales promotion expense and selling and distribution expense (included under other expenses) for the quarter ended March 31, 2020 is net of reversal of Rs. 1,005 Lakhs and that for the year ended March 31, 2020 is net of such reversal of Rs. 489 Lakhs (excluding the amounts accrued and reversed within the said year).

1. The Company had received an order dated September 30, 2015 from the Debt Recovery Tribunal, Karnataka, Bangalore (DRT), whereby the Company has been directed not to pay/release amounts that may be payable with respect to shares in the Company held by an erstwhile director (including his joint holdings) and United Breweries (Holdings) Limited, without its prior permission. Accordingly, the Company has withheld payment of Rs. 1,534 Lakhs (net of payment of Rs. 784 Lakhs to the official liquidator of United Breweries (Holdings) Limited) relating to dividend on aforesaid shares. The Company would also withhold payment of proposed dividend for the year ended March 31, 2020 on aforesaid shares, which is subject to approval by the shareholders at the ensuing annual general meeting.

The financial impact on current assets arising from aforesaid matter was fully provided for. Also, during the financial year 2018-19, in order to maintain the assets in running condition, the Holding Company commenced manufacture of non-alcoholic beverages at its existing manufacturing facility at Bihar using its existing property, plant and equipment at Bihar which has carrying value of Rs. 17,034 Lakhs as at June 30, 2020. Management believes that the carrying amount of these property, plant and equipment do not exceed their recoverable amount and accordingly no provision has been considered necessary by the management in this regard. 7. Revenue from operations for the quarters ended June 30, 2020, March 31, 2020 and June 30, 2019 is adjusted for reversals in variable considerations of Rs. 559 Lakhs, Rs. 992 Lakhs and Rs. 789 Lakhs, respectively, and that for the year ended March 31, 2020 is adjusted for such reversals of Rs. 1,702 Lakhs (excluding the amounts accrued and reversed within the said year).

Further, the Company had received various orders from tax and provident fund authorities prohibiting the Company from making any payment to an erstwhile director. The Company has accordingly withheld payment of Rs. 45 Lakhs (net of TDS), relating to director commission and sitting fees payable to the aforesaid erstwhile director.

1. The figures of the last quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the full financial year up to March 31, 2020 and the unaudited published year-to-date figures up to December 31, 2019 being the date of the end of the third quarter of the financial year, which were subjected to limited review. 10.[The standalone financial results and notes are also available on the websites of the Stock Exchanges viz,.][ www.bseindia.com ][and][ www.nseindia.com ][and also on the website of the ] Company viz. www.unitedbreweries.com

Sales promotion expense and selling and distribution expense (included under other expenses) for the quarter ended March 31, 2020 is net of reversal of Rs. 1,005 Lakhs and that for the year ended March 31, 2020 is net of such reversal of Rs. 489 Lakhs (excluding the amounts accrued and reversed within the said year). 8. The Holding Company had received an order dated September 30, 2015 from the Debt Recovery Tribunal, Karnataka, Bangalore (DRT), whereby the Holding Company has been directed not to pay/release amounts that may be payable with respect to shares in the Holding Company held by an erstwhile director (including his joint holdings) and United Breweries (Holdings) Limited, without its prior permission. Accordingly, the Holding Company has withheld payment of Rs. 1,534 Lakhs (net of payment of Rs. 784 Lakhs to the official liquidator of United Breweries (Holdings) Limited) relating to dividend on aforesaid shares. The Holding Company would also withhold payment of proposed dividend for the year ended March 31, 2020 on aforesaid shares, which is subject to approval by the shareholders at the ensuing annual general meeting.

By the authority of the Board, Sd/Place: Bengaluru Rishi Pardal Date: August 14, 2020 Managing Director

Further, the Holding Company had received various orders from tax and provident fund authorities prohibiting the Holding Company from making any payment to an erstwhile director. The Holding Company has accordingly withheld payment of Rs. 45 Lakhs (net of TDS), relating to director commission and sitting fees payable to the aforesaid erstwhile director. 9. The figures of the last quarter ended March 31, 2020 are the balancing figures between audited figures in respect of the full financial year up to March 31, 2020 and the unaudited published year-to-date figures up to December 31, 2019 being the date of the end of the third quarter of the financial year, which were subjected to limited review. 10.[The consolidated financial results and notes are also available on the websites of the Stock Exchanges viz,.][ www.bseindia.com ][and][ www.nseindia.com ][and also on the website of the ] Holding Company viz. www.unitedbreweries.com By the authority of the Board, Sd/Place: Bengaluru Rishi Pardal Date: August 14, 2020 Managing Director

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KANNADA PRABHA

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