United Spirits Limited · NSE:UNITDSPR
United Spirits — FY2024 Earnings Presentation
47 slides from United Spirits's earnings presentation, May 27, 2024
Slide 1: Regulation 30 cover letter to stock exchanges
27th May 2024 BSE Limited National Stock Exchange of India Limited Listing Department Exchange Plaza, C-1 Block G, Dalal Street, Bandra Kurla Complex, Mumbai 400 001 Bandra East, Mumbai- 400051 Scrip Code: 532432 Scrip Code: MCDOWELL-N Dear Sirs, Sub: Investor Presentation Ref: Regulation 30 of Secu
Slide 2: Diageo India: Delivering sustainable long-term growth FY 2023-24
DIAGEO INDIA Delivering sustainable long-term growth FY 2023-24 Ms. Hina Nagarajan, Managing Director & Chief Executive Officer Mr. Pradeep Jain, Executive Director & Chief Financial Officer 27 May 2024
Slide 3: Cautionary statements concerning forward-looking statements
CAUTIONARY STATEMENTS CONCERNING FORWARD-LOOKING STATEMENTS This document contains ‘forward-looking’ statements. These statements can be identified by the fact that they do not relate only to historical or current facts. In particular, forward-looking statements include all statements that express f
Slide 4: Delivering sustainable long-term growth
DELIVERING SUSTAINABLE LONG-TERM GROWTH 1. FY24 Business Update Agenda 2. FY24 Financial Highlights 3. Looking Ahead DIAGEO = 3-_|_ Investor Presentation FY2024
Slide 5: FY24 Business Update
FY24 BUSINESS UPDATE
Slide 6: Our strategy & key building blocks
OUR STRATEGY & KEY BUILDING BLOCKS Top performing CPG company in India delivering sustained double-digit, profitable topline growth & long-term value to all our Stakeholders DIAGEO s5_|_ Investor Presentation FY2024 Great Place to Work Leveraged Growth Portfolio Re-shape Organization of the Future D
Slide 7: Update
BUSINESS UPDATE Top performing CPG company in India delivering sustained double-digit, profitable topline growth & long-term value to all our Stakeholders DIAGEO) © _|_ Investor Presentation FY2024 Leveraged Growth Organization Portfolio of the Future Re-shape Diageo in Society
Slide 8: Portfolio re-shape
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Our Portfolio provides multiple Premiumisation levers to make the consumer drink better Within Trademarks Popular DIAGEO 7 | Investor Presentation FY2024
Slide 9: Premiumisation lever 1: Popular upgrades to P&A
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Premiumisation lever 1: Within the broader segments: Popular upgrades to P&A Popular DIAGEO 8 | Investor Presentation FY2024 FY21 NSV Salience 14% 12% FY22 FY23 ™@ Popular m P&A 89% 1% FY24
Slide 10: Premiumisation lever 2: Within Prestige sub-segments and above
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Premiumisation lever 2: Within the Prestige sub-segments and Above NSV Salience FY21 FY22 FY23 FY24 i Lower Prestige Mid Prestige @ Upper Prestige @ Luxury + Premium DIAGEO 9 | Investor Presentation FY2024
Slide 11: Portfolio re-shape: Johnnie Walker, Royal Challenge, Black Dog
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Johnnie Walker Royal Challenge (RC) Black Dog | = lw | & == ri~2. — ea a1 2G @e 2 ie 8: fe 7 _— f >) FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 FY22 FY23 FY24 a i | =i i JW Black Label and Above le | RC Whisky mIRC American Pride Black Dog ll Black Dog Gold Reserve J
Slide 12: Premiumisation lever 4: New categories
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Premiumisation lever 4: Within Categories by Introducing and Creating New Between q Price/bottle* (= Categories (2) = 28,500 =1,500 DIAGEO — 11 |_ Investor Presentation FY2024 Prices vary from state to state because of taxes hence MRPs are only indicative in natur
Slide 13: Delightfully
DELIGHTFULLY
Slide 14: Indian single malt whisky and McDowell's X Series
BUSINESS UPDATE: PORTFOLIO RE-SHAPE DELIGHTFULLY INDIAN SINGLE MALT WHISKY is McDowell's X Series; unique range of Rum, Gin & Vodka DIAGEO = 23 |_ Investor Presentation FY2024 McDowells Indian Single Malt Whisky
Slide 15: Kartik Aaryan, the new face for House of McDowell's
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Kartik Aaryan; the new face for House of McDowells Brand Extensions THE YAARS OF INDIA 1.2 Bn 41 120M Reach Impressions | Press Ads The biggest jump in equity scores in RA ee “1 SAAT last 5 years <0 a (more salient, more meaningful) DIAGEO — 14 |_ Investor Present
Slide 16: Portfolio re-shape
BUSINESS UPDATE: PORTFOLIO RE-SHAPE DIAGEO 15 |_ Investor Presentation FY2024 Source: Diageo Brand Tracking, F24 vs. F23 comparison, Post Launch Consumer Research in markets
Slide 17: RCB
BUSINESS UPDATE: RCB Congratulations RCB! nova cHALLENGE WITNESS DIAGEO — 16 |_ Investor Presentation FY2024 TOP S SEPTEMBER 2023 WORLD 4 aS FC BARCELONA 02. @ REAL MADRID ; . oe GALATASARAY SK 04. © MANCHESTER UTD ts & RC BANGALORE I beso poo. Pie SRRALDL @DEPORFINANZAS Source : Deportes & Finanzas
Slide 18: Upper Prestige resurgence with dual trademark play
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Our Upper Prestige Resurgence continued with the Dual Trademark play psx | From Green Vibes 2.0 in Hyderabad #HONEWITHNATURE Campaign ft. ‘Ayushmann Khurrana sour nanos i euvrononGo@ LISP wT THE #ONEWITHNATURE Signature Presents Ziro Festival Market leader on bran
Slide 19: Mangrove regeneration project
BUSINESS UPDATE: PORTFOLIO RE-SHAPE THE MANGROVE ~ REGENERATION PROJECT HAVE ue on tee YEARS PANCHAYAT, re REVIVAL OF OF MANGROVE COVER ee IN DIAGEO — 18 |_ Investor Presentation FY2024
Slide 20: Savour: Godawan
Savour : GODAWAN the us ar a WY — y\ ¥% Ss RRAWAN => ELrf
Slide 21: Immersive experiences with Blue Label, JW Blonde, Singleton
BUSINESS UPDATE: PORTFOLIO RE-SHAPE BlueZabel Immersive Experiences with Blue Aravani Art Project 2 Label comowcion ad Recruiting Young Adults with JW Blonde DIAGEO = 20 |_ Investor Presentation FY2024 SINGLETON SOCIAL Nic OBAR The Singleton Social takeover at Jaipur Literature Festival with our The
Slide 22: Accelerate Luxury & Premium; B&W and Black Dog
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Accelerate Luxury & Premium; Bll remains strong with B&W and Black Dog growing well DIAGEO 24 Black & White ‘We Sng PRESENTS XKABLE & ‘ONE oe ke Activating Third Spaces with a Reach Focus Investor Presentation FY2024 The largest B&W market in world Black Dog PAUSE
Slide 23: Alwar distillery awarded Sustainable Distillery of the Year
Alwar distillery awarded the 'Sustainable Distillery of the Year' and 'Craft Producer of the Year'
Slide 24: Creating the Agave & Tequila category
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Creating the Agave & Tequila category; Strategic Minority stake in Pistola & Don Julio launch Price/bottle* (2) I Tequila Don Julio I Anejo 1942 = 28,500 ! Reposado I — I I I no i Agave Spirits ; (Pistola) ! I I = 8000 } I I I ! TEQUILA RESERVA DE REPOSADO ! ] e s
Slide 25: Our advantaged portfolio blends volume and value scale
BUSINESS UPDATE: PORTFOLIO RE-SHAPE Our advantaged portfolio blends volume and value scale FY24 Net Revenue = 1000 Cr. + = 500 Cr. + Signature BEAR nee oe, Sighature ze t y 10 Mn + 5 Mn+ 1Mn+ DIAGEO = 24 |_ Investor Presentation FY2024
Slide 26: The virtuous cycle of profitable growth
BUSINESS UPDATE: PORTFOLIO RE-SHAPE The Virtuous cycle of Profitable Growth Long Term Profitable Growth DIAGEO — 25 | Investor Presentation FY2024 O01 O2 03 04 Driving Top Line NSV Growth: +10.5% Healthy Price/Mix +8.6% Sustained A&P ~ 1,000 Cr; RIR* of 9.7% Value Chain Productivity ~ = 500 Cr; offs
Slide 27: Update
BUSINESS UPDATE [i - | Top performing CPG company in India delivering | sustained double-digit, profitable topline growth & long-term value to all our Stakeholders DIAGEO — 26 |_ Investor Presentation FY2024 Great Place to Work Organization Wesagias of the Future Meare Diageo in Society
Slide 28: Update: Org of the Future
BUSINESS UPDATE : ORG OF THE FUTURE (esa) 56% People Went through skill Total skill upgradation upgradation training —_training hours clocked Veo eee eee eee Key Focus on Women Representation suas tthe ff) Functional ture Masten” al India Executive Leadership Overall Executive eS e@ Women Representa
Slide 29: Empowering our team: enhanced engagement and satisfaction
BUSINESS UPDATE : ORG OF THE FUTURE Empowering our Team: Enhanced engagement and satisfaction in recent surveys DIAGEO 8 9% 01 Engagement Index Employee NPS +42 | @ : 1 VS 2023 | would recommend Diageo as a place to work 28 | Investor Presentation FY2024 lam proud to work for Diageo lam extremely sa
Slide 30: always-on social content programmatic
always-on programmatic sharper media social content via trade-desk targeting through interest and affinity 10X increase in visitation 10X increase in organic traffic Best-in-class website metrics, 3X increase in time spent. engagement At 50% reduction in costs. Completed mar-tech set up Communicate
Slide 31: Update
BUSINESS UPDATE . ttn, Organization Portfolio ds of the Future | Top performing CPG company in India delivering Re-sh wulure Re-shape | sustained double-digit, profitable topline growth | & | | long-term value to all our Stakeholders | | | a“ a | Diageo in Society ESG for Stakeholder Value DIAGEO 30
Slide 32: Diageo in Society
BUSINESS UPDATE: DIAGEO IN SOCIETY DRINKIQ.com ROYAL CHALLENGE #CHOOSEBOLD We are able to provide a lot of information VISIT DRINKIQ.COM TO KNOW MORE 32 RTO partnerships in 7 states; Curbing underage consumption; Consumer reach of~ 40 million; Educated ~0.7 million consumers Educated ~0.3 million pe
Slide 33: Diageo in Society
BUSINESS UPDATE: DIAGEO IN SOCIETY Trained 1784 people* with business & hospitality skills; Many placed at reputed organizations such as Taj, Leela, Café coffee day, La Pino’z Pizza etc. Diageo India signs MOU with Skill Council for Persons with Disability (SCPwD) to train 300 students under its ‘Le
Slide 34: Diageo in Society
BUSINESS UPDATE: DIAGEO IN SOCIETY Pioneer Grain 2 Glass Sustainability Replenished more Water than we Use* Achieved in 2023; 3 years ahead of Target Replenished more than1Mn. || Created rain-water harvest [ ) Transition to Solar renewable Shift from LPG to Cu.M. of water across water capacity of 31
Slide 35: Consistent improvement in ESG ratings
BUSINESS UPDATE: DIAGEO IN SOCIETY Consistent Improvement in ESG Ratings thru Sustained actions & engagement DIAGEO ESG ratings improved United Spirits Ltd. 27” April 2024 United Spirits Ltd. Medium Risk rm +20 Medium Risk ~~~ 34 | Investor Presentation FY2024 Low Risk Medium Risk Medium Risk Mainta
Slide 36: Awards
BUSINESS UPDATE: AWARDS Workplace Practices India Workplace Equality Index 2023 United Spirits Ltd Top 20 for gender equality in 2024 A EQUILEAP 6 s re, S SSN MARS GOLD Employer for LGBT+ inclusion Linked if COMPANIES India Reto ond Consumer Goods Manufacturing & ESG Practices Making a Positive Impa
Slide 37: FY24 Financial Highlights
FY24 FINANCIAL HIGHLIGHTS
Slide 38: FY24 Financial Highlights
FY24:FINANCIAL HIGHLIGHTS Sustained Growth Momentum; Back to mid teen EBITDA margin Core NSV Growth P&A Growth Pre-exceptional EPS 10.5% 11.9% INR 18.3 Healthy performance across all Gross Margin EBITDA Margin Return on Capital key financial metrics Employed 43.4% 16.0% 24.7% DIAGEO 37 | Investor Pr
Slide 39: We have the momentum and are on track
FY24:FINANCIAL HIGHLIGHTS We have the Momentum and are on Track NSV* Growth 19% 17% 5% 3% | ua = ular Prestige & Above Total NSV 1% MFYI6-21CAGR MIFY21-24 CAGR DIAGEO 38 |_ Investor Presentation FY2024 Popular 6% “5% NSV* Growth (Adjusted for Covid) 14% 1% 8% 5% Prestige & Above Total NSV MFYI6-21CA
Slide 40: Premiumisation intact; added ~1000 Cr in net sales
FY24:FINANCIAL HIGHLIGHTS Premiumisation intact; we added ~1000 Cr in Net Sales giowth aan > 10,692Cr [roru.ar| LOWER PRESTIGE MID PRESTIGE UPPER PRESTIGE LUXURY + ene ooh |. -- |_- PREMIUM. ____GROWTH_ _ Reported 3% 9% 23% 22% 34% ' Covid adjusted -5% 4% 7% 7% 28% fa) FY 21-24 CAGR* DIAGEO 9 | Inve
Slide 41: Productivity across the value chain
FY24:FINANCIAL HIGHLIGHTS 337 Our Productivity muscle continues to build and deliver across the Value Chain 198 514 os Pricing & RGM FY23 FY24 268 242 202 i ° FY20 FyY2I FY22 FY23 FY24 16% 16% 14% All numbers in INR Cr FY22 FY23 DIAGEO = 40 |_ Investor Presentation FY2024 ‘Net working capital exclud
Slide 42: 1,200 15.0% 1,000 13.0% 11.0% 9.0% 7.0% - 5.0%
1,200 15.0% 1,000 13.0% 800 11.0% 600 9.0% 400 7.0% 200 - 5.0%
Slide 43: Multiyear supply agility programme is on track
FY24:FINANCIAL HIGHLIGHTS Our multiyear supply agility programme is on track ENA Co-location Footprint optimisation cw Commenced co-located plant with ENA beta distillation ty Optimised manufacturing footprint through 6 Es integration of capacities Cash spends Non-cash costs , > Cost optimisation (a
Slide 44: Thereby creating value for our shareholders
FY24:FINANCIAL HIGHLIGHTS Thereby creating value for our shareholders Pre-exceptional EPS INR/share Return on capital employed (ROCE) 18.3 25% 23% 23% UKE 20% 16% 97 FY20 FY2I FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Note: EPS & ROCE nos. from FY22 onwards are reinstated to include the impact of PDL
Slide 45: Looking Ahead
LOOKING AHEAD
Slide 46: We are confident in our growth strategy & it is working
LOOKING AHEAD We are confident in our growth strategy & it is working! 7 = Continued Inflation headwinds = Lower SEC Consumers = COGS commodity = Headline Pricing; two good years; likely to moderate = Volatile Regulatory environment DIAGEO = 45 | Investor Presentation FY2023
Slide 47: Slide 47