Compania Cervecerias Unidas S.a. · BCS:CCU

Compania Cervecerias Unidas — United Breweries — XI Santander Latin American Conference (January 2007)

24 slides from Compania Cervecerias Unidas's conference presentation, Jan 16, 2007

  1. Slide 1: XI Santander Latin American Conference

    XI Santander Latin American Conference Acapulco, January 2007

  2. Slide 2: Agenda

    AGENDA Page Industry and Company Overview 1 1. Organic Growth 2 2. Commercial Excellence 4 3. Operational Excellence 7 4. Performance Indicators 10 Business Units 12 1

  3. Slide 3: 1. Organic Growth: Per capita consumption 2005

    1. Organic Growth Per capita consumption 2005 Chile1 Spain USA Spain – Usa /Chile RTD (Liters) 181 408 415 2.3X Beer 29 89 77 CSD 108 99 180 Juices 10 35 53 Nectar 8 12 3 Other Juices 2 24 50 Water 14 140 77 Mineral Water 10 - - Purified Water 3 - - Functionals 0.1 4 13 Wine 16 35 9 Liquors 4 7 5 Pi

  4. Slide 4: 1. Organic Growth

    1. Organic Growth First Preference Industry CCU Market Share CCU1 RTD Chile (MMLt.) 2005 2006E 06/05 2005 2006E 06/05 2005 2006E 2005 20062 Beer 479 551 15% 417 471 13% 88%3 86% 92% 90% 4 CSD 1,750 1,829 5% 321 345 7% 18% 19% 19% 19% Juice 169 187 11% 44 55 23% 26%5 29% 55% 56% 6 Mineral Water 170 1

  5. Slide 5: 2. Commercial Excellence: Plan Punto Maximo (PPM)

    2. Commercial Excellence Plan Punto Maximo (PPM) Which What segments of portfolio of clients and products and consumers? services will increase satisfaction? How much How must margin can we we execute capture in each in each segment? segment? 4

  6. Slide 6: Plan Punto Maximo Priorities

    2. Commercial Excellence Plan Punto Maximo (PPM) 2005 2006 2007 Consolidation & Launching Extensions Improve. Improvement Measurement of new Priorities CCU Chile CPCH MIS ECCUSA CCUA Portal units included in 2006 VSP Calaf Ppto x OCC Segments Strategy (with focus on Service Level) CCCU Execution 84%

  7. Slide 7: Comercial CCU

    2. Commercial Excellence Comercial CCU Sales Force Optimum Sales Force Single Sales per Category Structure Force 1. 2. 3. 4. Exceptions: – Rural – Calaf 6

  8. Slide 8: 3. Operational Excellence: Context 1999 - 2006

    3. Operational Excellence Context 1999 - 2006 Year Average Values 99 00-01 02-06E (CAGR) (CAGR) ∆ GDP Chile - 0.8% 4.0% 4.7% ∆ GDP Argentina - 3.4% - 2.6% 4.8% ∆ CCU VOl(1) - 1.3% 3.3% 6.0% Expenses(2) / Income 59.1% 51.8% 51.7% ►Economic expansion ►Focus on growth (1) Argentina’s and Chile’s all ca

  9. Slide 9: MaxEO: Context 2007 and forward

    3. Operational Excellence Context 2007 and forward… Environment CCU Growth Keep... Future growth slowdown Commercial excellence Consumers Better information Innovation and quality requirements TOP1 revenues Client Add... In consolidation process Better service level and margin Operational excellence

  10. Slide 10: MaxEO

    3. Operational Excellence Context 2007 and forward… MaxEO OCA PBC O2 (Supply Chain Optimization) (Zero Based Budget) (Optimal Organization) Procurement 2007 Review of World Class - Pilot on specific -Structure Manufacturing: expenses accounts -Levels - Phase 1 Cerv. Stgo., - Goal adjustment: 100% in

  11. Slide 11: 4. Performance Indicators

    4. Performance Indicators US$ Millions 1 2002 2003 2004 2005 CAGR Profitability Operating income 77.3 93.0 116.1 126.9 18.0% Nominal operating income 52.3 77.2 105.3 129.7 35.3% EBITDA 166.3 175.2 197.8 205.5 7.3% Nominal EBITDA 111.7 145.5 176.8 210.0 23.4% ROCE 8.6% 11.4% 15.0% 15.8% Grow th Volum

  12. Slide 12: 4. Performance Indicators

    4. Performance Indicators US$ Millions 1 Q3'05 Q3'06 CAGR YTD'05 YTD'06 CAGR Profitability Operating income 18.9 27.9 47.6% 77.6 89.9 15.9% EBITDA 38.3 47.1 23.0% 136.7 148.7 8.8% ROCE2 15.3% 17.2% Grow th Volumes (MM liters) 263 295 12.1% 846 924 9.3% Market share3 28.7% 29.2% Revenues 214.6 233.2

  13. Slide 13: Agenda: Business Units

    AGENDA Page Industry and Company Overview 1 Business Units 12 1. Beer Chile 13 2. Soft Drinks, Nectars and Mineral Water 14 3. Functional Products 18 4. Wines 19 5. Pisco 20 6. Beer Argentina 21 7. Confectionery 22 12

  14. Slide 14: 1. Beer Chile

    1. Beer Chile EBITDA (US$MM) and EBITDA Margin (%) 38% 38% 37% 35% 34% 34% 121.4 130.4 113.8 95.8 85.1 94.6 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Note: Figures in US$ million as of September, 2006 Market share (%) Per capita consumption (liters) Others Premium 88% 89% 89% 86% 88% 86% 2% 5% 8

  15. Slide 15: 2. Soft Drinks, Nectars and Mineral Water

    2. Soft Drinks, Nectars and Mineral Water EBITDA (US$MM) and EBITDA Margin (%) 18% 18% 16% 14% 16% 16% 39.7 37.7 41.4 41.4 28.1 27.6 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Includes soft drinks, nectars and mineral waters Note: Figures in US$ millions as of September, 2006 Market share (SD, N

  16. Slide 16: 2. Soft Drinks

    2. Soft Drinks Direct margin (%) and volumes (MM liters) 66% 66% 67% 66% 64% 65% 311 319 323 323 226 241 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Soft drinks market share (%) Per capita consumption (liters) Coca-Cola CCU Others 65% 65% 66% 67% 67% 67% 108 111 98 101 104 23% 23% 22% 22% 22% 22%

  17. Slide 17: 2. Nectars

    2. Nectars Direct margin (%) and volumes (MM liters) 47% 49% 49% 48% 42% 43% 44 34 38 39 28 32 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Bottled nectar market share (%) Per capita consumption (liters) Coca-Cola CCU Others 58% 58% 59% 57% 55% 44% 41% 35% 33% 33% 9 34% 32% 8 8 7 7 8% 14% 10% 9% 9%

  18. Slide 18: 2. Mineral Water

    2. Mineral Water Direct margin (%) and volumes (MM liters) 71% 71% 71% 68% 69% 65% 107 74 76 81 72 81 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Mineral water market share (%) Per capita consumption (liters) Coca-Cola CCU Others 72% 64% 67% 66% 62% 10 10 8 9 9 32% 29% 28% 27% 22% 6% 7% 6% 6% 6% 2

  19. Slide 19: 3. Functional Products

    3. Functional Products Direct margin (%) and volumes (MM liters) 57% 58% 59% 57% 53% 55% 2.7 2.4 1.8 1.9 1.9 0.6 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Functional products market share (%) Per capita consumption (liters) 0.20 74% 72% 64% 59% 47% 0.10 0.05 0.06 0.04 2003 2004 2005 YTD'05 YTD'0

  20. Slide 20: 4. Wines

    4. Wines EBITDA (US$MM) and EBITDA Margin (%) 15% 12% 11% 9% 8% 8% 22.7 18.6 12.6 11.9 13.7 10.0 2002 2003 2004 2005 YTD'05 YTD'06 AER 689 692 610 560 571 531 Source: CCU AER: Average exchange rate Note: Figures in US$ million as of September, 2006 Vol., mkt. share and exp. prices (MM Lt, %, US$) Sa

  21. Slide 21: 5. Pisco

    5. Pisco EBITDA (US$MM) and EBITDA Margin (%) 2004 2005 YTD'05 YTD'06 4% 1.8 -1.3 -2% -2.8 -8% -3.8 -23% Source: CCU Note: Figures in US$ million as of September, 2006 Pisco market share (%) Per capita consumption (liters) CCU Capel Control 64% 2.9 54% 2.8 54% 53% 53% 50% 46% 46% 44% 2.6 40% 35% 34%

  22. Slide 22: 6. Beer Argentina

    6. Beer Argentina EBITDA (US$MM) and EBITDA Margin (%) 16% 15% 14% 13% 11% 14.1 10.7 10.3 -3% 6.9 7.9 -1.5 2002 2003 2004 2005 YTD'05 YTD'06 Source: CCU Note: Figures in US$ million as of September, 2006 Market share Argentina’s beer price (US$/HL) Local Brands Budweiser Heineken 42 43 44 16% 16% 16

  23. Slide 23: 7. Confectionery

    7. Confectionery Calaf – Ready-to-eat snacks Access to over 90,000 clients Sale volumes (tons) 6,047 4,554 4,431 5,009 2004 2005 YTD'05 YTD'06 22

  24. Slide 24: XI Santander Latin American Conference

    XI Santander Latin American Conference Acapulco, January 2007

United Breweries — XI Santander Latin American Conference (January 2007) on 6ix