#1it GLOBUS SPIRITS LIMITED 03 FY 16 G GLOBUS SPIRITS Globus Spirits Investor Presentation FEBRUARY 2016#2SAFE HARBOR This presentation contains statements that contain "forward looking statements" including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Globus Spirits' future business developments and economic performance. While these forward looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Globus Spirits Limited undertakes no obligation to publicly revise any forward looking statements to reflect future/likely events or circumstances. Globus Spirits#3AGENDA Q3 & 9M FY16 Performance Key Highlights 4 Financial Performance 5 Annexure Company Overview. 12 Shareholding Pattern 18 Financials 19 Globus Spirits 3#4Q3 FY16 - KEY PERFORMANCE HIGHLIGHTS - HEALTHY GROWTH & PROFITABILITY Globus Spirits Robust traction in IMIL & Bulk Alcohol as well as better realisation in DDGS led to strong performance; Supported by higher production and capacity utilization of 94% (Vs. 77% in Q3 FY15) Standalone revenue from operations up 26% YoY to Rs. 1,967 mn in Q3 FY16 EBITDA higher by 91% YoY to Rs. 187 mn in Q3 FY16; EBITDA margin expanded by 320 bps to 9.5% - • Higher efficiency and better cost management led to improved EBITDA performance PBT improved to Rs. 44 mn in Q3 FY16 against Rs. 1 million in Q3 FY15 Net Profit stood at Rs. 35 mn in Q3 FY16 against Rs. 1 million in Q3 FY15 Growth in Consumer business stood higher at 28% to Rs. 925 mn - - Revenues from IMIL stood at Rs. 922 mn, an increase of 30% YoY • This was supported by healthy traction in Rajasthan & Delhi Overall volumes improved to 3.1 mn cases By-products reported strong growth of 116% YoY driven by DDGS - higher alcohol production resulted in increased DDGS volumes combined with improved realisations Franchisee IMFL revenues were down by 10% due to lower volume offtake in Rajasthan partly offset by volume increase in Haryana#5Q3 FY16 - UPDATE ON EXPANSION Globus Spirits East India expansion advancing well - on schedule to commission facilities in Bihar and West Bengal in Q1 FY17 - Key driver for significant top-line and bottom-line growth in FY17 IMIL ban in Bihar not expected to impact greenfield operations of the Company as bulk alcohol demand to remain robust as IMIL to be replaced by economy IMFL brands - Bihar remains a deficit state – to cater the growing need of Bulk Alcohol in Bihar, which is witnessing a huge deficit of 55 million liters Number of locational advantages to drive profitability – close to raw material sourcing point, higher realizations and savings in logistic costs among other benefits 12#6Q3 FY16 YoY - STRONG GROWTH & PROFITABILITY Globus Spirits Revenue from operations (Net) up 26% YOY to Rs. 1,967 mn in Q3 FY16 driven by robust growth in IMIL, Bulk Alcohol and By-products segment - IMIL volumes improved by 11% YoY led by strong growth in all IMIL markets; Bulk Alcohol registered 22% growth, while Others segment led by value added product DDGS reported 116% growth EBITDA for the quarter up 91% at Rs. 187 mn with margin of 9.5% (vs 6.3% in Q3 FY15) - Capacity utilization improves to 94% in Q3 FY16 from 77% in Q3 FY15 - leading to significant operational benefits Better cost management further assists margin growth Q3 FY16 Q3 FY15 Rs. 1,967 mn 26% Rs. 1,556 mn Revenue Rs. 187 mn 91% EBITDA Rs. 98 mn Rs. 35 mn 30 x Rs. 1 mn PAT stood at Rs. 35 mn compared with Rs. 1 mn in Q3 FY15 led by superior operational performance PAT#79M FY16 YoY - ROBUST PERFORMANCE Revenue from operations (Net) up 19% YoY to Rs. 5,162 mn in 9M FY16 driven by growth in IMIL and By- products segment - IMIL volumes improved by 28% due to growth in all IMIL markets; Others segment driven by value added product DDGS also aided growth EBITDA for 9M FY16 up 43% at Rs. 479 mn with EBITDA margin of 9.3% (vs 7.8% in 9M FY15) Globus Spirits 9M FY16 9M FY15 Rs. 5,162 mn 19% Rs. 4,330 mn Revenue - Improved operational performance and better cost management led to margin expansion Rs. 479 mn 43 % Rs. 336 mn EBITDA PAT at Rs. 82 mn, up 135% YoY compared with Rs. 35 mn in 9M FY15 Rs. 82 mn 135% Rs. 35 mn PAT#8ROBUST IMIL PERFORMANCE DRIVING CONSUMER BUSINESS Globus Spirits Breakup of Revenue from Operations IMFL, 0% Bulk Alcohol, 28% • Share of consumer business increased from 45% in Q3 FY15 to 47% in Q3 FY16 driven by strong performance of the IMIL business IMIL revenues increased by 30% YoY to Rs. 922 mn due to strong revenue growth of 25% & 47% in Rajasthan & Delhi respectively Revenues from manufacturing business increased by 25% YoY to Rs. 1,042 mn in Q3 FY16 driven by 17% revenue growth in Bulk Alcohol and over 228% growth in DDGS; DDGS volumes and realisations improved by 124% and 46% respectively Q3 Franchisee IMFL FY16 12% IMIL, 47% Others, 14% IMFL, 1% Bulk Alcohol, 29% IMIL, 45% Q3 FY15 Consumer Franchisee IMFL Others, 9% 16% Manufacturing 8#9IMIL DRIVEN BY STRONG TRACTION IN RAJASTHAN & DELHI Globus Spirits . Aggregate IMIL revenues up 30% YoY, driven by improved offtake in Rajasthan & Delhi, and supported entry into Bihar Launched in Jan 2015, Bihar sold 0.5 mn cases in Q3 FY16 accounting for 11% of total 3.1 mn IMIL cases in Q3 FY16 Haryana market witnessed 17% growth in revenues QoQ as a result of 20% increase in volumes Rajasthan IMIL 8,000 2.50 1.77 1.50 6,000 2.00 1.50 4,000 1.00 2,000 4,657 5,799 0.50 0 0.00 Q3 FY15 Q3 FY16 Revenue (Rs. Mn] Volumes (Mn Cases) Haryana IMIL 2,100 0.74 1.00 0.69 Q3 FY16 IMIL Split by Volume (Total 3.1mn cases) 2,000 0.75 0.50 1,900 2,081 0.25 1,921 Bihar 11% 1,800 0.00 Q3 FY15 Q3 FY16 Revenue (Rs. Mn)] Volumes (Mn Cases] Delhi, 5% Delhi IMIL 0.18 0.20 03 FY16 600 0.13 Rajasthan, 450 Haryana, 21% 63% 300 0.10 150 334 488 0 0.00 Q3 FY15 Q3 FY16 Figures in Rs Million, Standalone Financials Revenue (Rs. Mn] Volumes (Mn Cases) 6#10MANUFACTURING: BACKBONE TO CONSUMER; DRIVEN BY VALUE ADDED DDGS Globus Spirits Capacity utilization improved substantially to 94% in Q3 FY16 from 77% in Q3 FY15 resulting in production of 13 mn BL in Q3 FY16 Bulk revenues increased by 22% YoY due to higher off take of bulk alcohol in domestic & export volumes Witnessed 24% YoY growth in export volumes Others segment grew 116% during the quarter on account of healthy contribution from value added DDGS Efforts to establish DDGS as a nutritious animal feed ingredient has yielded results, as reflected in higher realisations Bottling volumes marginally increased by 3% YoY; this was led by sustained traction in Haryana, which witnessed 14% higher volumes YoY, volumes in Rajasthan declined by 11% YoY due to lower take-off *Excluding bulk sales to franchisee customers in Rajasthan Figures in Rs Million, Standalone Financials 22.0 11.0 0.0 Production & Capacity Utilization 77% 17 94% 21 Q3 FY15 Q3 FY16 Production (Mn BL] Capacity Utilization (%) 100% 50% 0% Bulk Alcohol* 547 600.0 400.0 448 13 200.0 10 0.0 5250 15 10 Q3 FY15 Q3 FY16 Revenue (Rs. Mn) Volumes (Mn BL) Franchise Bottling 1.2 0.98 1.01 0.8 0.43 0.38 0.4 0.55 0.63 0.0 Q3 FY15 Q3 FY16 Haryana Bottling (Mn Cases) Rajasthan Bottling (Mn Cases) 110 10#11Q3 FY16 QoQ – STRONG PERFORMANCE - Revenue from operations (Net) up 22% QoQ to Rs. 1,967 mn in Q3 FY16 driven by balanced growth across all the segments - - Higher IMIL offtake combined with strong growth in Bulk Alcohol, Franchise IMFL and DDGS resulted in healthy QoQ performance Contribution of Bulk Alcohol and Other Segment increased to 28% & 14% respectively EBITDA for the quarter up 41% at Rs. 187 mn with EBITDA margin at 9.5% (vs 8.2% in Q2 FY16) Production efficiency as well as better cost management supported the EBITDA performance PAT stood at Rs. 35 mn, higher by 178% QoQ compared to Rs. 13 mn in Q2 FY16 Globus Spirits Q3 FY16 02 FY16 Rs. 1,967 mn 22% Rs. 1,618 mn Revenue Rs. 187 mn 41% Rs. 133 mn EBITDA Rs. 35 mn 178 % Rs. 13 mn PAT#12AGENDA Q3 & 9M FY16 Performance Key Highlights 4 Financial Performance 5 Annexure Company Overview. 12 Shareholding Pattern 18 Financials 19 Globus Spirits 12#13GLOBUS 360° ALCOBEV PLAYER - FORAY INTO EAST Globus Spirits • No. 1 private player in Rajasthan IMIL with 25% market share 5.6 mn cases in sold in FY15, up 20% YoY No. 2 private player in Haryana with 10% market share 2.3 mn cases in sold in FY15 Enters Bihar in Jan-15; Distillery to be set up in Bihar and West Bengal market in FY17 ― - Bihar, launched in Jan 2015 through a tie-up, sold 0.5 mn cases of IMIL in Q3 FY16, accounting for 11% of Q3 FY16 IMIL volumes IMIL ban in Bihar not expected to impact greenfield operations of the Company as bulk alcohol demand to remain robust as IMIL to be replaced by economy IMFL brands To cater the growing need of Bulk Alcohol in Bihar, which is witnessing a huge deficit of 55 million liters Own Distillery States with upcoming distillery States where Globus Spirits sells IMIL: Rajasthan Haryana ◉ Delhi Bihar 13#14LEVERAGING A STRONG 360° BUSINESS MODEL ■ ~ 90 mn BL (expected to go upto ~150 mn BL with East India commissioning in FY17) of ENA capacity ■ Focus on value added products such as DDGS ■ Focused on building a profitable and niche portfolio of IMFLbrands BULK ALCOHOL IMFL 360° Model BOTTLING IMIL Globus Spirits Bottling tie-ups with prominent IMFL players Long term relationships with clients ■ Pan India leadership in IMIL with Rajasthan, Haryana, Delhi and entry in Bihar ■ Pioneered branded IMIL and has a portfolio of 4 main brands 14#15GLOBUS PLANS PRESENT • Established 360° model in North • . • India (Haryana & Rajasthan) Amongst the largest grain based distilleries in India Strong IMIL brands that have acceptance and loyalty Bottling operations for India's largest brands of top IMFL players • Backed by reputed investor, Templeton NEAR TERM STRATEGY • Enter fast growing liquor markets of West Bengal & Bihar with complete 360° offering • Launch premium brands of value • Focus on DDGS, a value-added byproduct, in the Indian market Globus Spirits FUTURE • Large market share in IMIL by offering quality products to the consumer • Establish sustainable premium brands in IMFL • • High capacity utilisation with focus on technology and efficiency at old and new facilities Portfolio of high value by-products 15#16EXPANSION INTO EAST Globus Spirits Existing facilities at Haryana & Rajasthan Greenfield facilities in West Bengal/Bihar Severe Alcohol Deficit in East India (mn ltrs) 98 (Under Construction] 86 78 55 • Strong fit with 360° Model 31 20 20 • Large alcohol deficit, growing alcohol Bihar consumption West Bengal ■Consumption Production Deficit 16#17IMIL BRANDS SHOWCASE Nimboo frid NIMBO 1st IMIL brand in India positioned as awesome mix of natural lemon flavor with strong yet smooth blend profile Heer Ranjha Ghoomar Tribute to Rajasthani folk dance; blend popular in the घूमर harsh winter months of the desert region Narangi Tribute to the most popular romantic tales of the region. NARANGI चारगा Popular dark spirits' brand Smooth blend to enjoy straight Positioned as refreshing and juicy as Orange up. Globus Spirits 17#18UNIQUE COMPETITIVE STRENGTHS Globus Spirits 360° • 360° Business Model Only company present across full alcobev value chain Helps capture IMFL growth via franchisee bottling for top IMFL companies High utilization with assured captive off-take De-risked growth High quality maintained with control on entire value chain • Efficient Operations State-of-the-art plants across three locations using latest distillation technology, zero discharge and highest grain- recovery in industry Supplying to premium brands Leadership - mix of experience and young talent Strong Consumer Portfolio • Leadership in key states of Rajasthan, Delhi and Haryana Launch in Bihar through tie-up Achieved sterling success in IMIL branding with Nimboo 4 IMIL brands Healthy Balance Sheet Funding for greenfield expansion at Bihar secured via equity D/E of 0.4x Cash efficient operations 18#19SHAREHOLDING PATTERN Individuals & Corporatee Bodies Others 22% 4% Name FII 17% As on December 31, 2015 Outstanding shares - 28.8 mn Promoter Group 57% Major Non-Promoter Shareholders % shareholding % Share Templeton Strategic Emerging Markets Fund IV, LDC 17.49% GI Globus Spirits 19#20Q3 FY16: PROFIT & LOSS STATEMENT Globus Spirits Standalone Particulars (In Rs MN) Q3 FY16 Q3 FY15 YoY (%) Q2 FY16 QoQ (%) 9MFY16 9MFY15 YoY (%) Gross Sales 2668.13 2304.56 16% 2159.82 24% 7167.00 6538.23 10% Less-Excise duty & Discounts 713.87 752.23 -5% 548.18 30% 2023.94 2213.51 -9% Net Sales 1,954.26 1,552.33 26% 1,611.64 21% 5,143.06 4,324.72 19% Other Operating Income 12.34 3.28 277% 6.61 87% 19.32 5.45 254% Revenue from Operations 1,966.60 1,555.61 26% 1,618.26 22% 5,162.38 4,330.17 19% Total Expenditure 1779.31 1,457.32 22% 1,485.02 20% 4,683.46 3,994.29 17% Consumption of Raw Material 1141.52 955.55 19% 930.92 23% 2996.08 2682.67 12% Employee Cost 38.84 33.70 15% 40.79 -5% 119.00 98.00 21% Other Expenditure 598.95 468.06 28% 513.32 17% 1568.38 1213.62 29% EBITDA 187.29 98.29 91% 133.24 41% 478.92 335.88 43% Depreciation & Amortisation 100.91 70.49 43% 84.19 20% 270.84 210.09 29% EBIT 86.38 27.80 211% 49.05 76% 208.08 125.79 65% Finance Charges 46.29 38.90 19% 46.61 -1% 127.97 114.63 12% Other Income 4.11 12.24 -66% 11.15 -63% 23.69 23.81 0% PBT before exceptional items 44.20 1.13 3808% 13.59 225% 103.80 34.97 197% Exceptional items* NA NA NA PBT 44.20 1.13 3808% 13.59 225% 103.80 34.97 197% Tax Expense (Current, Deferred Tax] 9.30 0.23 4008% 1.02 812% 21.64 7.00 209% MAT Credit -0.23 NA NA -7.00 NA PAT (From ordinary activities) 34.90 1.13 2986% 12.57 178% 82.16 34.97 135% Extraordinary Items NA NA ΝΑ PAT 34.90 1.13 2986% 12.57 178% 82.16 34.97 135% 20 20#21Q3 FY16: KEY RATIOS Standalone Key Ratios as a % of Total Revenue Q3 FY16 Q3 FY15 Q2 FY16 9MFY16 9MFY15 EBITDA 10% 6% 8% 9% 8% PAT Total Expenditure Raw material 2% 90 0% 1% 2% 1% 91% 94% 92% 91% 92% 58% 62% 58% 58% 92% Employee Cost 2% 26 2% 3% 2% 2% Other Expenditure 31% 30% 32% 30% 28% Intt Depn Other Income 26 2% 3% 3% 246 2% 3% 5% 5% 5% 5% 5% 5% 90 0% 1% 1% 0% 90 1% Globus Spirits 21#22Q3 FY16: BALANCE SHEET Particulars (In Rs MN) 31st December 2015 31st March 2015 Liabilities Shareholders' Fund 3,599.0 3,550.7 Non-Current Liabilities 1,604.7 979.9 Long term borrowings 1,137.6 499.6 Deferred tax liabilites (Net) 453.0 468.0 Other long term liabilities/ provisions 14.0 12.2 Current Liabilities 1,928.3 1,915.9 Short Term borrowings 723.1 729.6 Trade payables 728.2 781.1 Other current liabilities 461.3 383.2 Short-term provisions Total Liabilities 15.7 22.1 7132.0 6446.5 Globus Spirits Assets Net fixed assets Non-current investment 5123.0 4917.2 0.8 1.0 Other non-current assets Long-term loans and advances Current Assets Current Investments 1.9 1.9 634.0 443.5 1372.3 1082.9 0.8 0.7 Inventories 450.4 500.5 Trade Receivables 480.3 381.5 Cash and Equivalents 247.2 64.3 Short-terms loans and advance/other current assets 193.6 135.8 Total Assets 7,132.0 6,446.5 22#23ABOUT US IGI Globus Spirits Established in 1992, Globus Sprits Limited (BSE code: 533104, NSE Id: GLOBUSSPR, ISIN ID:INE615101010) is engaged in manufacturing, marketing and sale of Indian Made Indian Liquor (IMIL), Indian Made Foreign Liquor (IMFL), Bulk Alcohol and contract bottling for established IMFL brands. The Company has a well established presence in the IMIL segment and set to become a Pan-India IMIL leader with launch of distilleries in Bihar and West Bengal. GSL currently operates three modern and fully integrated distilleries at Behror, Rajasthan and Samalkha and Hisar, Haryana. It is one of the largest and most efficient grain based distilleries in India with highest alcohol recovery per unit of grain. For more information about us, please visit www.globusspirits.com or contact: DR. BHASKAR ROY Globus Spirits Limited Phone: +91 11 6642 4600 Fax: +91 11 6642 4629 Email: [email protected] ANOOP POOJARI/NISHID SOLANKI CDR India Phone: +91 22 6645 1211 / 1221 Fax: +91 22 6645 1213 Email: [email protected] [email protected] 22