United Breweries Ltd. — Interim / Quarterly Report 2022

Oct 28, 2021

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October 28, 2021

1. Department of Corporate Services, 2. Department of Corporate Services, BSE Limited, National Stock Exchange of India Ltd., Floor 25, P J Towers, Exchange Plaza, Bandra Kurla Complex, Dalal Street, Bandra (East), Mumbai - 400 001 Mumbai – 400 051 Scrip Code: 532478 Scrip Code: UBL

Dear Sir,

Sub: Intimation of Financial Results Earning call

This has reference to Regulation 30(6) read with Para-A of Part-A of Schedule-III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘the Regulations’).

In accordance with the said Regulation(s), as Quarter2FY22 Financial Results Earnings call is scheduled today Thursday, October 28, 2021 @ 10:30 a.m. IST, by way of conference call with Investors and analysts, hosted by Investec India.

Investor presentation is attached. Unaudited Financial Results for the quarter and year to date period ended September 30, 2021 are already uploaded on the website of Bombay Stock Exchange and National Stock Exchange of India Limited.

Kindly take the same into record.

Thanking you, we remain,

Yours faithfully,

For UNITED BREWERIES LIMITED

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GOVIND IYENGAR

Senior Vice President – Legal & Company Secretary

Encl: As above

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Investec India invites you to United Breweries Ltd Q2 FY22 Earnings call

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Post Earnings Business Update Diamond Pass Registration Thursday, October 28, 2021 10:30 am IST Management Team Mr. Berend Odink – Chief Financial Officer - United Breweries Limited

• Mr. PA Poonacha Finance and Investor Relations

Dial-In Numbers Universal Dial-In International Toll +91 22 6280 1245 Hong Kong +852 30186877 +91 22 7115 8146 Japan +81 345899421 Singapore +65 31575746 South Africa +27 110623033 UK +44 2034785524 USA +1 3233868721 For further information please contact: Harit Kapoor (+912268497493) Swapna Bhandarkar (+9122 6849 7472) harit.kapoor@investec.com swapna.bhandarkar@investec.com

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Investec Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England and Wales (No. 489604). Registered office at 30 Gresham St, London EC2V 7QP.

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Investor Presentation Quarter ended Sep 2021

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Disclaimer

This presentation contains forward-looking statements with regard to the financial position and results of UBL’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements.

Many of these risks and uncertainties relate to factors that are beyond UBL’s ability to control or estimate precisely, such as future market and economic conditions, the behavior of other market participants, changes in consumer preferences, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in UBL’s publicly filed annual reports.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. UBL does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.

Market share estimates contained in this presentation are based on outside sources such as specialized research institutes in combination with management estimates.

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Key Results Highlights

• Volume growth of 49% in the quarter vs prior year driven by strong recovery of demand, prevalent across nearly all markets. Volumes were up 23% vs the first quarter.

o Versus pre Covid period of 2019, the quarter volumes were at 78%, with continued month-on-month recovery. September volumes were at 88% vs 2019. o Strong EBITDA results at INR 170 Cr. contributed by volume growth/ lower impact of COVID in current year and cost efficiencies.

o EBITDA margin increased to 11.9%, up from 8.1% last year

o Robust free operating cash flows at INR 227 Cr year to date, up from INR 95 Cr prior year. ·The Company has a strong liquidity positions with circa INR 600 Cr bank balances

o The Company has received a CCI Order with the imposition of INR 752 Cr as penalty. The Company is in the process of preparing the grounds of appeal and the appeal will be filed within the time frame of 2 months from the date of the order. Basis legal advice, the Company believes that it has a strong case on merits for successful appeal on this matter. Accordingly, no provision is considered necessary.

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Q2’ 22 Results

Q2 Results (standalone) Data in Rs. Cr.	Sep-21 Sep-20	Change (%) 58% 60% 57% 22% 37% -86% 133% -9% n.m. -21% n.m. n.m. n.m. Change (bps) (52) 382 672 705 521
Net Sales COGS	1,426 901 (688) (430)
Gross Profit	738 471
Employee expenses Other expenses Other income	(134) (110) (438) (320) 5 33
EBITDA	170 73
Depreciation	(56) (61)
EBIT	115 12
Finance costs	(5) (6)
Profit before tax	110 6
Tax	(29) (2)
Profit after tax	81 4
As % of Net Sales	Sep-21 Sep-20
Gross Profit EBITDA EBIT Profit before tax Profit after tax	51.7% 52.3% 11.9% 8.1% 8.0% 1.3% 7.7% 0.6% 5.7% 0.4%

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*n.m. stands for “Not Meaningful” for changes more than +/- 200%

YTD’ 22 Results

YTD Results (standalone) Data in Rs. Cr.	Sep-21 Sep-20	Change (%)
Net Sales COGS	2,544 1,408 (1,266) (700)	81% 81%
Gross Profit	1,278 707	81%
Employee expenses Other expenses Other income	(248) (225) (770) (537) 11 34	10% 43% -69%
EBITDA	272 (21)	n.m.
Depreciation	(111) (112)	-1%
EBIT	161 (133)	n.m.
Finance costs	(9) (13)	-34%
Profit before tax	152 (146)	n.m.
Tax	(41) 36	n.m.
Profit after tax	111 (110)	n.m.
As % of Net Sales	Sep-21 Sep-20	Change (bps)
Gross Profit EBITDA EBIT Profit before tax Profit after tax	50.2% 50.2% 10.7% -1.5% 6.3% -9.4% 6.0% -10.4% 4.4% -7.8%	1 1,219 1,577 1,636 1,222

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*n.m. stands for “Not Meaningful” for changes more than +/- 200%

Regional volume performance vs PY

Volume Growth

Q2, YTD Sep (+49%, +73%)

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North (+44%, +72%)

• Driven by higher volume in Uttar Pradesh, Rajasthan

• New policy to be introduced in Delhi in coming months

West (+33%, +51%)

• Driven by higher volume in Maharashtra state, Goa, Madhya Pradesh

East (+89%, +208%)

• Driven by higher volume in Orissa, West Bengal, Jharkhand, Assam

• Higher growth on account of a relatively lower base due to later opening of market

South (+49%, +53%)

• Driven by higher volume in Telangana, Tamil Nadu, Karnataka

• Growth in Telangana has been impacted by higher taxation levels vs pre Covid

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Net Sales rowth driven b hi her volume g y g

Revenue Q2 (in Rs. Cr)

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443 (+49%) 82 (+9%) 1,426
901
Net Rev PY Volume Variance Mix / Price var Net Rev CY
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YTD 1,408 1025 (+73%) 112 (+8%) 2,544
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• Higher volume in most markets driven by different nature of Covid-induced lockdown versus last year

• Favourable price/mix variance

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Volume growth and cost management led to improvement in EBITDA Margin

EBITDA Q2 (in Rs. Cr)

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267 (24)
(146)
170
73
EBITDA PY Gross Profit Employee expenses Other EBITDA CY
expenses/income
Margin 8.1% -52 bps 280 bps 154 bps 11.9%
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o Gross profit increase driven by volume growth

o Improvement in EBITDA margin due to fixed cost optimisation and leverage on account of revenue growth

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Robust FOCF driven b ↑ O eratin Profits y p g

Operating CF before change in WC Change in Working Capital Cash Flow from Operations Operational Investments Managerial Cash Flow Interest Income Tax Free Operating Cash Flow Movement in Borrowing Divident Paid Net Cash Generated	(16) 229 213 (96) 117 (17) (5) 95 85 (66) 114	273 104 377 (74) 303 (7) (69) 227 (34) (13) 180

o Positive FOCF driven by improvement in profitability and lower working capital.

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Outlook and summary

• UBL has observed progressive recovery of underlying consumer demand post the first and second Covid-19 wave.

• Although the trajectory and future impact of the pandemic remains uncertain, the Company has adapted its operations accordingly and will continue to manage the business with agility.

o The Company is optimistic about the long-term growth drivers of the industry on the basis of GDP growth, urbanization and evolving consumer trends. UBL is well positioned to leverage and drive these opportunities with its leading market position, portfolio of brands and healthy balance sheet.

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