United Breweries Ltd. — Interim / Quarterly Report 2021

Apr 28, 2021

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April 28, 2021

1. The Secretary-Listing Department 2. The Manager-Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot. C/1, G Bl. Dalal Street, Fort Bandra-Kurla Complex, Bandra (East) Mumbai - 400 023 Mumbai – 400 051 Scrip Code: 532478 Symbol: 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 Quarter4FY21 Financial Results Earnings call is scheduled today Wednesday, April 28, 2021 @ 02:00 p.m. IST, by way of conference call with investors and analysts, hosted by Investec India.

Investor presentation is attached. Audited Financial Results for the quarter and year ended March 31, 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

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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United Breweries Ltd.

Q4FY21 Financial Results Earnings Call Wednesday, April 28, 2021, at 2:00 PM IST

Register

Investec India is pleased to host the management of United Breweries Ltd. for a conference call with investors and analysts to discuss their

Q4FY21 Financial Results Earnings Call Wednesday, April 28, 2021, at 2:00 PM IST with

Mr. Berend Odink, CFO

Mr. PA Poonacha, Finance and Investor Relations

Access Numbers

International Toll Free Universal DialIn Hong Kong 800964448 +91 22 6280 1245 / +91 22 7115 8146 Singapore 8001012045 UK 08081011573 USA 18667462133 Harit Kapoor (Tel. 022 6849 7493) Bhakti Thacker (Tel. 022 6849 7489)

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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. This email and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this email in error please notify the sender. This e-mail is subject to terms available at the following link: www.investec.co.uk/emaildisclaimer. By communicating electronically with us, you consent to these terms. To see our Privacy Policy, please click here. To unsubscribe click here.

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Investor Presentation Year ended March 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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Exceptional year with resilient response

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Consumers
Thematic campaigns
Employees Communities
Risen to the challenge Continued support & relief
Costumers
Trade support
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• Exceptional year with lock downs, prolonged on trade closures and Covid related duty increases.

• Focus has been on health & safety incl. introducing socially distanced operations, keeping consumers engaged & reviving demand, while reducing costs & preserving cash.

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Key Results Highlights

o Strong sequential volume recovery post lock down, with Q4 net sales growth of 9%.

o During Q4 many states saw strong recovery incl. Karnataka and Maharashtra. Telangana demand remains subdued due to Covid cess negatively impacting consumer prices.

o With an agile approach on costs & investments, full year EBITDA margin at 10% despite 39% volume decline.

o Healthy underlying profitability with Q4 EBITDA margin at 17.7%.

o Full year free operating cash flow at INR 440 Cr., INR 362 Cr above prior year.

o In a challenging year, achieved net cash position for the first time, with year end net cash at INR 155 Cr. o Proposed dividend for approval at the next AGM is Rs 0.50 per share, maintaining historic dividend pay out ratio.

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Q4 20/21 Results

Q4 Results (standalone) Data in Rs. Cr.	Mar-21 Mar-20	Change (%)
Net Sales COGS	1,543 1,424 (741) (699)	8% 6%
Gross Profit	802 725	11%
Employee expenses Other expenses Other income	(133) (128) (408) (465) 12 1	4% -12% 1797%
EBITDA	273 133	105%
Depreciation	(62) (73)	-15%
EBIT	211 59	254%
Finance costs	(4) (5)	-11%
PBT before Exceptional Item	206 55	277%
Exceptional Item	(62) -	0%
Profit before Tax	144 55	163%
Tax	(47) (14)	250%
Profit after tax	97 41	135%
As % of Net Sales	Mar-21 Mar-20	Change (bps)
Gross Profit EBITDA with Exceptions EBIT Profit before exceptional item Profit before tax Profit after tax	52.0% 50.9% 17.7% 9.3% 13.6% 4.2% 13.4% 3.8% 9.3% 3.8% 6.3% 2.9%	109 835 947 953 550 338

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YTD 20/21 Results

YTD Results (standalone) Data in Rs. Cr.	Mar-21 Mar-20	Change (%)
Net Sales COGS	4,241 6,505 (2,036) (3,160)	-35% -36%
Gross Profit	2,204 3,344	-34%
Employee expenses Other expenses Other income	(482) (500) (1,343) (1,970) 50 9	-3% -32% 451%
EBITDA	430 884	-51%
Depreciation	(232) (285)	-19%
EBIT	198 599	-67%
Finance costs	(23) (31)	-27%
PBT before Exceptional Item	175 567	-69%
Exceptional Item	(7) -	0%
Profit before Tax	168 567	-70%
Tax	(55) (140)	-61%
Profit after tax	113 427	-74%
As % of Net Sales	Mar-21 Mar-20	Change (bps)
Gross Profit EBITDA EBIT Profit before exceptional item Profit before tax Profit after tax	52.0% 51.4% 10.1% 13.6% 4.7% 9.2% 4.1% 8.7% 4.0% 8.7% 2.7% 6.6%	57 (345) (454) (459) (476) (391)

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Regional volume performance vs PY

Volume Growth Total Company

(Q4, YTD) (+9%, -39%) – Recovery in Q4

North (+13%, -35%)

• Growth in Q4 driven by Haryana, Rajasthan, Punjab, Chandigarh and Himachal Pradesh.

• UP stable volumes. UP & Rajasthan excise policy 21/22 sees reduction in consumer beer price.

West (+23%, -30%)

• Growth in all markets except Chhattisgarh.

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East (+26%, -39%)

o Growth across most markets.

• Substantial growth in West Bengal (>100%) on the back up of revised excise policy leading to lower consumer prices.

South (+3%, -42%)

o Substantial growth in Karnataka & Kerala.

• Growth in region pulled back by decline in Telangana on the back of continued Covid related cess.

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Continued expansion of premium brand portfolio

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Ultra family continues to grow with expansion of Ultra Witbier

• Witbier launched in Delhi in Q3 and in Maharashtra, Punjab & Chandigarh in Q4 with good consumer reactions.

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Amstel continues to grow significantly ahead of the market.

• Present in 10 markets as of March ’21.

• New markets of Telangana, Maharashtra and Haryana added in FY’21.

Premium portfolio grew ahead of total portfolio in Q4.

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Net Sales growth driven by volume impact

Revenue Q4 (in Rs. Cr)

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127 (9%) -8 (-1%) 1,543
1,424
Net Rev PY Volume Variance Mix / Price var Net Rev CY
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YTD
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6,505 -2499 (-38%) 236 (4%) 4,241
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o Higher volume in most markets driven by good demand recovery versus Covid-induced lockdown in March last year.

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Recovery of margins & profitability

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EBITDA Margin (Q4)
691 bps 17.7%
35 bps
109 bps
9.3%
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EBITDA Margin PY Gross Margin Employee expenses Other expenses EBITDA Margin CY
YTD 13.6% 57 bps -369 bps -33 bps 10.1%
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o Gross profit improvement driven by pricing and benign input costs.

• Margin improvement in other expenses over prior year due to cost measures, volume leverage and prior year provision for obsolete stocks (INR 16 Cr.)

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Q3 & Q4 shar recover ost difficult Q1 p y p

20/21 Q-o-Q Sequential Performance

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EBITDA (Rs. Cr.) 273
178
73
Q1
Q1a Q2 Q3 Q4
(94)
EBITDA Margin -19% 8% 14% 18%
Vol. Vs FY 19-20 -77% -48% -15% 9%
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Cash management resulted in strong FOCF, driven by lower workin ca ital and ca ex, des ite lower rofits g p p p p

Cashflow in Rs Cr	YTD Mar	YTD Mar	∆
. .	2019-20	2020-21	(+/-)
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	916 (220) 697 (402) 295 (27) (190) 78 12 (80) 10	403 298 701 (151) 550 (28) (82) 440 6 (66) 380	(513) 517 4 251 256 (1) 108 362 (5) 14 370

Change in FOCF (in Cr)

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Rs. Cr.
107 440
251
78 (513) 517
FY 19-20 FOCF Operating CF Change in WC Operational Income Tax FY 20-21 FOCF
before WC Investments
Changes
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Consistent cash generation resulting in deleveraging and stron balance sheet. Net cash osition for first time g p

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Net debt/ (net cash) (Rs Cr)
580
305
217
187
20/21
16/17 17/18 18/19 19/20 20/21a
(155)
Net Debt/EBITDA 0.8x 0.3x 0.2x 0.2x -0.4x
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13

Outlook and summary

• Due to second wave of Covid-19, the industry outlook is volatile. Impact will depend on magnitude and duration of lockdowns, including any partial or full trade restrictions. Challenges faced during first wave include finite beer shelf life & costs for liquidation/expired product, as well as operational challenges like lower returns of used bottles.

• Health and safety of employees and stakeholders remains paramount, while operations are fully in compliance with regulations as they are introduced from time to time.

• UBL has and will continue to manage all elements of costs and capital investments with agility in light of the uncertain demand given the situation of second Covid-19 wave across the country.

• The Company has observed recovery of underlying consumer demand post the first Covid-19 wave and continues to be optimistic about the long term growth drivers of the industry.

• UBL is well positioned to navigate the current circumstances with a leading market position, strong brand portfolio and robust balance sheet.

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