investor presentation, august 2007.ppt kingfisher

8/9/2019 Investor Presentation, August 2007.Ppt Kingfisher

http://slidepdf.com/reader/full/investor-presentation-august-2007ppt-kingfisher 1/23

1

United Breweries Limited

Investors Meeting August 2007



3

Alcohol Consumption

India EmergingMarkets

21.5% 87%Beer

Spirits/Liquor

Wine 5%

8%

<0.5%

78%Beer is under represented in

India



4

Consumption Per Capita

India China USA

1 litre

23 litres

83 litres

24 litres

World Average

12 litres

Indonesia

1 litre per capita is a major milestoneachieved in India in the last 12 months,

BUT «««



5

Industry Growth

5%

10%

15%

20%

25%

30%

5 Year CAGR2005

2006 2007

Future:

strong doubledigit growth

2008 +



6

Opportunity for Growth

Current population 1.1 billion Over 50% of the population is below the age of 25 years, demographics remain until 2020

Increasing personal GDPThe emerging young population hold moreliberal views on alcohol, than earlier generations

Higher penetration

Sustainable profit growth



7

UBL¶s Capability

Iconic brand ± KINGFISHER

Balanced portfolio of supporting brands

Manufacturing network across all major states

Leadership in cold chain management,

and point of sale visibility Established trade relationships



8

UBL¶s Competitive Advantage-

Through our PromotersUBL

S & N UB Group

Brewing processes Procurement synergies International best practice Experience in capacityinvestment

People resource

Strength in distribution

Enhanced recognition throughKFA

Relationship with USL Buying influence

Route to market influence One stop portfolio of leadingbrands for modern trade

Equal to competition Competitive Advantage



9

Competitor Positions

SABM

± Established in India as the No 2 player

± Investment in capacity

± Brand launches eg Peroni, Castle

International brands have not worked ± Castle launched over 2 years ago > No market share

± Peroni launched over 6 months ago > No market share

± Fosters launched over 5 years ago, pre advertising ban >2% market share



1010

Competitor Positions

Carlsberg ± Acquired Himneel brewery early 2007, new greenfield breweries

in Rajasthan & Maharashtra. Plans to launch a Polish beer.

A ± B

± JV brewery with Crown in AP, plans to build more greenfieldunits. Recent launch of Budweiser & Armstrong beer brands

APB ± 2007 acquisition of Aurangabad brewery, greenfield construction

in progress in AP.

Coors ± Announced plan to build a greenfield unit in Maharashtra

Inbev ± Recently announced JV entry into India.



11

Impact of Competitors

Invest in the market

Invest in capacity

Provide consumers with more choice Drive improvement through the upstream

supply chain

BENEFIT ALL PLAYERS IN THE INDUSTRY



12

Environment for New Competitors

Excessive State regulation and intervention

± Route to market

± Economics, need to have a brewery in each state

± Pricing ± Licensing

Driver of growth is Strong beer,

± all new International entrants brands are leaders in

Mild beer not Strong

Ban on advertising alcohol



13

UBL Reaction to Competition

Maintain profitable Industry leadership Aggressively invest in new capacity, and

upgrade process technology ± Lower cost of investment:

Europe $100 per HL

Russia $55 per HL

India $35 per HL

Develop and launch exciting new products ± Kingfisher Ultra, Kingfisher wine



14

FULL YEAR FY¶07



15

Performance Highlights ± FY¶07

KF Strong overtakes KF premium to becomeIndia¶s biggest selling beer, sales of over 26m cases

Invested around Rs200Cr in new capacity, to

increase own brewery capacity by 20%, and 2new greenfield breweries with over 8.5mcases of capacity pa

Completed acquisition of KBDL, and now

fully merged into UBL Market capitalisation exceeds $1bn Total annual dividend of 25%



16

16

Market Share

33%

48%

UBL SABM MM Mt Shiv Others

6%4%

9%



17

Profit Performance ± FY¶07

EBITDA Net Profit

UBL Consolidated

Net ProfitEBITDA

Rs162 Cr +18%

Rs55 Cr

+550%

Rs172 Cr +24%

Rs65 Cr

+350%



18

Q1¶08



19

Performance Highlights Q1¶08

KF Strong and KF premium outgrowthe industry

New greenfield breweriescommissioned and in operation

Capacity investment for 2008-09 ontrack

Market capitalisation exceeds $1.7bn



20

Kingfisher Performance ± Q1¶ 08

7.15m

7.7m

7.2m

9.3m

June 06 June 07 June 06

Industry Growth +7.2%

Premium

Industry Growth +19.5%

Strong

June 07

+7.6%+28.5%



21

Profit Performance Q1¶ 08

Price increases achieved on around 55% of volume

Results impacted by:

± Capped capacity of Hyderabad brewery impacts UBLstandalone results by Rs6Cr, profit of Rs6Cr recordedin UMBL

± Continuing impacts of prices increases on barley and

hops affects margins UBL stand alone now includes KBDL, MBDL &

ABDL, not included in last years numbers



22

Profit Performance ± Q1¶08

EBITDA PBT

UBL Combined

PBTEBITDA

Rs79 Cr +54%

Rs71 Cr +5%

Rs105 Cr +18%

Rs65 Cr

+57%



23

THANK YO

U

investor presentation, august 2007.ppt kingfisher

Documents