United Breweries Limited · NSE:UBL
United Breweries — Investor Presentation (November 2007)
22 slides from United Breweries's investor presentation, November 2007
Slide 1: United Breweries Limited
United Breweries Limited Presentation November 2007
Slide 2: India and the Beer Industry
India and the Beer Industry
Slide 3: Indian Economy
Indian Economy • The current year growth rate is 9% • The growth is largely propelled by local consumption hence lesser prone to global changes. • Inflation currently at (5.7- 7.9)% (CPI) giving impetus to growth – Source RBI Oct 13, 2007 • Substantial increase in the disposable income in the age gr
Slide 4: Increase in disposal Income
Increase in disposal Income 1989-90 Low (< Rs.45 K) Middle (Rs. 45K -Rs. 2001-02 90K) High (> Rs. 90K) 2009-10 0% 50% 100% Source: Motilal Oswal Securities
Slide 5: Indian Demographics – favorable to growth in beer consumption
Indian Demographics – favorable to growth in beer consumption • Current population 1.1 billion • Over 50% of the population is below the age of 20 years • The demographics to remain almost unchanged till the year 2020 •Core target market is 18-30 year olds • As initiation to alcohol consumption is t
Slide 6: Population demographics
Population demographics 2001 70.8 485 455 > 60 years 20-59 0-19 2011 94.2 636 447 0% 20% 40% 60% 80% 100% Source: Motilal Oswal Securities Figures million
Slide 7: Beer Industry in India
Beer Industry in India • Policies & Regulations are driven by State Government • Highly regulated with restriction in movement between states • 65% of the Indian market is state controlled – Distribution by Govt. Corporations, implications upon pricing • Advertising strictly prohibited, advantage fo
Slide 8: Beer Industry in India contd.
Beer Industry in India contd. • Government corporations are now approachable and not averse to make changes • There have been recent recommendations by some governing bodies to de link beer from spirit and have a common national duty structure much lower than the current duty levels
Slide 9: Beer Industry in India contd
Beer Industry in India contd AFFORDABILITY AVAILABILITY • Duty not set • 55,000 licensed according to alcohol outlets across the content country • Highest duty in the • 1 per 20,000 people world • In UK 1 per 350 • Expensive alcoholic people beverage Beer is not the alcoholic beverage of the common
Slide 10: Alcohol Consumption
Alcohol Consumption <0.5% Wine 5% Spirits/ 78% 8% Liquor 21.5% Beer 87% India Emerging Markets
Slide 11: Per Capita Beer Consumption
Per Capita Beer Consumption 140 125 120 100 100 82 80 Liters 59 60 40 22 24 20 12 0.9 0 na a y sia a g A UK an di i Av US ss i ne In Ch m Ru ld do er or G In W Country
Slide 12: Key performance highlights H1 2007-08
Key performance highlights H1 2007-08 • 13.8% volume growth in UBL while the combined business grew at 14.3% as against an industry growth of 12.6% • Kingfisher growth - premium 5.4%, strong 23.9% • EBITDA at the half year end 112 Cr. as against 87 Cr., a growth of 29% • Combined EBITDA at the half
Slide 13: Operational performance
Operational performance
Slide 14: Volume Growth – H1
Volume Growth – H1 + 16.6% + 14.3% + 13.8% + 12.6% Industry Combined UBL MABL Business Only Only
Slide 15: Change in Consumption pattern
Change in Consumption pattern 70 60 50 40 Mild Beer % 30 Strong Beer % 20 10 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 • Currently all international brands known in India are mild beers & most of the new launches have been in this category, which has been declining
Slide 16: Kingfisher Performance
Kingfisher Performance Kingfisher premium - % growth 25.0% 20.0% 15.0% Industry-Mild 10.0% KF premium 5.0% 0.0% 2005-06 2006-07 2007-08 Est. Kingfisher Strong - % growth 50.0% 45.0% 40.0% 35.0% 30.0% Industry-Strong 25.0% 20.0% KF Strong 15.0% 10.0% 5.0% 0.0% 2005-06 2006-07 2007-08 Est.
Slide 17: UBL V's SABM Market Share
UBL V’s SABM Market Share 47% 33% UBL SABM March 07
Slide 18: Financial Performance
Financial Performance
Slide 19: Results September 07 United Breweries Limited
Results September 07 Year ended United Breweries Limited 30.9.2007 30.9.2006 In rupees crore Audited Incl. of KBD Net Sales/Income from operations 579.66 415.12 464.59 Other Income 13.79 5.37 Total Income 593.45 420.49 41% Expenditure Cost of production 301.88 193.70 Advertisement & Sales Promotion
Slide 20: Performance analysis
Performance analysis • An increase in the operating margins despite cost push • Despite a 29% growth in operating margins PBT growth of only 4% on account of interest & depreciation – Rights issue approved by the Board expected in the first half of the next financial year • Healthy growth in operati
Slide 21: Summary Balance Sheet
Summary Balance Sheet UNITED BREWERIES LIMITED BALANCE SHEET As at As at COMBINED BUSINESS Amounts in rupees million 30.9.07 31.3.07 30.9.07 31.3.07 Sources Share Holders Funds 5,998 5,583 4,012 3,498 Loan Funds 4,075 4,762 7,185 7,766 Total Sources 10,073 10,344 11,197 11,263 Application Fixed Asse
Slide 22: Ratios
Ratios UNITED BREWERIES LIMITED As at As at COMBINED BUSINESS Rupees Million 30.9.07 31.3.07 30.9.07 31.3.07 Debt 4,075 4,762 7,185 7,766 Net Worth 5,998 5,583 4,012 3,498 GEARING 0.68 0.85 1.79 2.22 PBIDT 112 162 143 186 Interest 19 28 31 54 INTEREST COVER 5.90 5.77 4.55 3.47
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