#1UB UNITED BREWERIES LIMITED Investor Presentation Quarter ended Sep 2021 UB#2Disclaimer 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. UB#3Key Results Highlights Volume growth of 49% in the quarter vs prior year driven by strong recovery of demand, prevalent across nearly all markets. Volumes were up 23% vs the first quarter. Versus pre Covid period of 2019, the quarter volumes were at 78%, with continued month-on-month recovery. September volumes were at 88% vs 2019. o Strong EBITDA results at INR 170 Cr. contributed by volume growth/ lower impact of COVID in current year and cost efficiencies. EBITDA margin increased to 11.9%, up from 8.1% last year Robust free operating cash flows at INR 227 Cr year to date, up from INR 95 Cr prior year. The Company has a strong liquidity positions with circa INR 600 Cr bank balances. The Company has received a CCI Order with the imposition of INR 752 Cr as penalty. The Company is in the process of preparing the grounds of appeal and the appeal will be filed within the time frame of 2 months from the date of the order. Basis legal advice, the Company believes that it has a strong case on merits for successful appeal on this matter. Accordingly, no provision is considered necessary. UB#4Q2' 22 Results Q2 Results (standalone) Data in Rs. Cr. Sep-21 Sep-20 Change (%) Net Sales 1,426 901 58% COGS (688) (430) 60% Gross Profit 738 471 57% Employee expenses (134) (110) 22% Other expenses (438) (320) 37% Other income 5 33 -86% EBITDA 170 73 133% Depreciation (56) (61) -9% EBIT 115 12 n.m. Finance costs (5) (6) -21% Profit before tax 110 6 n.m. Tax (29) (2) n.m. Profit after tax 81 4 n.m. As % of Net Sales Sep-21 Sep-20 Change (bps] Gross Profit 51.7% 52.3% (52) EBITDA 11.9% 8.1% 382 EBIT 8.0% 1.3% 672 Profit before tax 7.7% 0.6% 705 Profit after tax 5.7% 0.4% 521 UB *n.m. stands for "Not Meaningful" for changes more than +/- 200%#5YTD' 22 Results YTD Results (standalone) Data in Rs. Cr. Sep-21 Sep-20 Change (%) Net Sales 2,544 1,408 81% COGS (1,266) (700) 81% Gross Profit 1,278 707 81% Employee expenses (248) (225) 10% Other expenses (770) (537) 43% Other income 11 34 -69% EBITDA 272 (21) n.m. Depreciation (111) (112) -1% EBIT 161 (133) n.m. Finance costs (9) (13) -34% Profit before tax 152 (146) n.m. Tax (41) 36 n.m. Profit after tax 111 (110) n.m. As % of Net Sales Sep-21 Sep-20 Change (bps) Gross Profit 50.2% 50.2% 1 EBITDA 10.7% -1.5% 1,219 EBIT 6.3% -9.4% 1,577 Profit before tax 6.0% -10.4% 1,636 Profit after tax 4.4% -7.8% 1,222 UB *n.m. stands for "Not Meaningful" for changes more than +/- 200%#6Regional volume performance vs PY North (+44%, +72%) o Driven by higher volume in Uttar Pradesh, Rajasthan o New policy to be introduced in Delhi in coming months Volume Growth Q2, YTD Sep (+49%, +73%) East (+89%, +208%) o Driven by higher volume in Orissa, West Bengal, Jharkhand, Assam o Higher growth on account of a relatively lower base due to later opening of market West (+33%, +51%) o Driven by higher volume in Maharashtra state, Goa, Madhya Pradesh South (+49%, +53%) o Driven by higher volume in Telangana, Tamil Nadu, Karnataka o Growth in Telangana has been impacted by higher taxation levels vs pre Covid UB#7Net Sales growth driven by higher volume Revenue Q2 (in Rs. Cr) 901 443 (+49%) 82 (+9%) 1,426 Net Rev PY Volume Variance Mix / Price var Net Rev CY YTD 1,408 1025 (+73%) 112 (+8%) 2,544 o Higher volume in most markets driven by different nature of Covid-induced lockdown versus last year Favourable price/mix variance UB#8Volume growth and cost management led to improvement in EBITDA Margin 73 267 EBITDA Q2 (in Rs. Cr) (24) (146) 170 EBITDA PY Gross Profit Employee expenses Other expenses/income EBITDA CY Margin 8.1% -52 bps 280 bps 154 bps 11.9% o Gross profit increase driven by volume growth o Improvement in EBITDA margin due to fixed cost optimisation and leverage on account of revenue growth UB#9Robust FOCF driven by ↑ Operating Profits YTD Sep A Cashflow in Rs. Cr. 2020-21 2021-22 (+/-) Operating CF before change in WC (16) 273 289 Change in Working Capital 229 104 (125) Cash Flow from Operations 213 377 165 Operational Investments (96) (74) 22 Managerial Cash Flow 117 303 187 Interest (17) (7) 10 Income Tax (5) (69) (64) Free Operating Cash Flow 95 227 133 Movement in Borrowing 85 (34) (119) Divident Paid (66) (13) 53 Net Cash Generated 114 180 66 o Positive FOCF driven by improvement in profitability and lower working capital. UB#10Outlook and summary o UBL has observed progressive recovery of underlying consumer demand post the first and second Covid-19 wave. o Although the trajectory and future impact of the pandemic remains uncertain, the Company has adapted its operations accordingly and will continue to manage the business with agility. o The Company is optimistic about the long-term growth drivers of the industry on the basis of GDP growth, urbanization and evolving consumer trends. UBL is well positioned to leverage and drive these opportunities with its leading market position, portfolio of brands and healthy balance sheet. 10 UB#111980 1990 2000 2005 2015 Times Change, The Good Times Don't! 11 UB