Presentation - UB Group

1 The Power of Leadership

Presentation on

UB Group


Running Order of the Presentation

• Overview of UB Group

• Review of United Spirits

• Review of United Breweries

• Review of Kingfisher Airlines

• Review of UB (Holdings) ____________________________________________


India’s Youth -Country’s Demographic Dividend

Upto 18 yrs 19 – 25 yrs 26 – 44 yrs Above 44 yrs

565 mio

115 mio

314 mio

205 mio

57% below 25 years

IND 1

Source : Registrar General, GOI


India The new face of youth consumerism

Rapid urbanization - middle class already exceed 300 million

Change in life style, higher disposable income, shift in expenditure pattern in favor of personal consumption items such as food, drinks and entertainment and exposure to global trends are all favoring growth

1.5 million new graduates every year

Buoyed by the growth in IT and ITES sectors, service sector accounts for over 50% of the GDP

IND 2


UB GROUPA Group in the process of

Transformation

Spirits 29%

Beer8%

Pharma25%

Engineering18%

Others 7%

Petrochemicals6%

Paints 7%

FY 1990

FY 2006

Beer , 17%

Spirits, 59%

Airlines , 6%

Engineering , 3%

Fertilizers, 15%

UBG 1


UB Group- One of India’s leading wealth creators

Market Cap : August 2006•Five Core listed companies have a market cap of USD 1.7 billion •Market cap has grown 10 times in last 5 years•Some of the large funds who have invested in McDowell and United Breweries include-

UB Group (India)

McDowell & Company Ltd

Sloane Robinson LLPGoldman Sachs (Mauritius)Merril Lynch Capital MktsDB Funds (Mauritius)FID Funds (Mauritius) Platinum Asset Mgnt

United Breweries Ltd

Oppenheimer Fund IncCitigroup Global MktsGoldman Sachs (Mauritius)FID Funds (Mauritius)Arisaig Partner (Asia) PteHSBC Financial Services (ME

UBG 2


Group Holding Structure

UB Group (India)

(UB City Project)Investments Real Estate

Spirits Business

United Spirits

Shaw Wallace Ltd

BeerBusiness

United Breweries

Millenium Alcobev

Aviation Others

Kingfisher

Airlines Ltd.

Aventis Pharma

Mangalore Chemicals &

Fertilizers

UB Engineering

UB (Holdings) Ltd.

(36.54%)(37.50%)

(50%)

(100%)

(10.28%)

(30.44%)

(34.74%)

(55%)

UBG 3

( Erstwhile McDowell & Co Ltd)

(75%)

8 The Power of LeadershipUB Group (India)

Group Management Structure

Divisional Presidents

GROUP EXECUTIVE COMMITTEE GROUP EXECUTIVE COMMITTEE Dr. Vijay Mallya - Group ChairmanDr. Vijay Mallya - Group Chairman

S R Gupte - Vice Chairman V K Rekhi - President - Spirits Division Kalyan Ganguly - President - Beer Division Ravi Nedungadi - President & Group CFO S D Lalla - Jt. President - Spirits Division Deepak Anand - MD - MCF

P.A Murali – Secretary to the EC

Management Committees

UB Group (India)UBG 4


UB Group Unique Leadership in both Beer and Spirits

Spirits : Controls about half the domestic market - 60% in first line brands 3rd largest player in the world Has 5 brands which are in the Top 50 Spirits Brands World wide list of Impact International *

Beer : 50% market share nationally Sold in over 52 countries India’s 1st global consumer brand – Kingfisher

* Impact International Edition – Feb’06UBG 5

Both Beer and Spirits

share a common

distribution channel


• Strongest brands• Significant

upgradation

• Least vulnerable to policy volatility due to large spread Branding

Local Sourcing

Value Chain

ownership

Segment-Market

Presence

Manufacturing Technology

Beverage Business

Beverage Business

• Optimal, as almost completely locally sourced

• Largest manufacturing base• Maximum capacity utilisation

• Initiatives planned for integration into retailing

The UB Group’s competitive advantage

Management Team

• Professionally managed• Seasoned professionals with

significant industry experience

UBG 6


Regulatory environment :• In India, alcohol industry is regulated by the States and not by the Federal Govt.

• Regulatory hurdles constitute an entry barrier to the industry

• The alcohol distribution structure is 65% State government controlled

• UB Group with its premium brands, large volume base and product range has better bargaining power with the distribution network

Market Category and Consumption :• Whisky constitutes 54%, followed by Rum at 27%

• Youngsters seeking western life styles typically begin by drinking beer and move upto spirits. The brand positioning of UB Spirit Brands are designed to attract these upwardly mobile and aspirational consumers.

The Indian Alcohol Beverage Market

ALBV 1

12 The Power of LeadershipALBV 2

Historically low profitability, but now changing as a consequence of de-regulation and industry consolidation.

Previously : - Monopoly suppliers of key inputs (glass etc.) - Multiple suppliers fighting for market share. - Monopoly customers (State Govts. / State sponsored

monopolies) - Value chain skewed to retail due to oligopolic structure. - Strict licensing meant few new outlets.

Now : - Industry consolidation leading to redefining of relative strength vis-à-vis Supplier & Customers. - Mindless trade spends being curtailed as a consequence

of consolidation. - USL leading the dialogue with Govt to increase the retail

universe. - New packaging initiatives to reduce costs and curtail

counterfeiting. - Demographics, Higher disposable income & change in

spending patterns favour growth of more profitable products.

Evolution of the Alcohol Beverage Market

13 The Power of LeadershipALBV 3

Historically, pricing flexibility was available only in 32% of the market-

• 57% was Government monopolies• 11% was Government sponsored private cartels and;• 32% was free market

•From the industry point of view due to both pricing & credit risks, private cartels are the least desirable.•Deregulation is now starting to happen which will benefit the industry in general & USL in particular- Policy Change Benefits De-cartelization in 2001 Industry has doubled State Govt has taken over Net Realization has doubled the wholesale trade

Changes in the Annual Price increase tender policy

Deregulation beginning to happen


United SpiritsRRestructured RRe-engineered RRe-energized

USL 1


United Spirits Currently ranked the 3rd largest distiller in the World by

sales volume* (FY 2005) Has 13 millionaire brands in its portfolio USL focus on profitable sales results in –

60% national market share in first line brands (P Y – 57% ) Dominant across regions, flavours and price segments. Owns 145 brands ( including 13 Millionaire brands) –

focus on 40 national brands Manufactured across 69 manufacturing units (down from 85

LE with plans to rationalise further to ~ 60). CAGR 99-00 over 05-06 :

Industry CAGR – 9.9%

USL CAGR – 14%

* Source – Impact International, USA

USL 2


2005 – Year of Accolades

For the calendar year 2005, United Spirits had sales of ~ 60 million cases (including sales realized following the acquisition of Shaw Wallace) *

Bagpiper Whisky – The world’s largest selling whisky *

McDowell’s No 1 Brandy – The world’s largest selling brandy *

McDowell’s No 1 Celebration Rum – The second largest selling rum in India and the fourth largest selling rum in the world *

In 2004, McDowell No.1 Whisky was the fourth largest selling non-scotch whisky in the world and the 7th largest selling whisky in the world.*

* Source – Impact International, USA

USL 3


Acquisition of Shaw Wallace

Shaw Wallace was the 2nd largest player in spirits in India (MS - 15%).

UB Group acquired 75% stake for a consideration of USD 300 mio in July 2005

Valuation underpinned by growth prospects and synergies arising from combined MS.

Consolidation Plan Action initiated to merge all the spirits entities into

McDowell to create United Spirits Limited. The scheme has been sanctioned by the respective

High Courts. Scheme will be effective upon filing the Order copies

with the respective Registrar of Companies.

USL 4


2005-06 – The year of integration

• SWC , HL & TDV businesses operationally integrated with minimal disruption

– Transparent “Best of 4” approach followed

• Significant synergy accrual in all identified areas– Price increase– Input costs– Market spends– Manpower & overheads (in progress)

• Revenue growth of focus brands at 16% - significantly in excess of industry

• Exponential increase in EBITDA – 97% increase over PY

• PBT growth of 266%

USL 5


United SpiritsProforma Financial Results - FY 06

USL 8

Note- These are aggregation of the performance of all the merging entities in the spirits

Group, namely McDowell, Herbertsons, SWDL, Baramati, TDV, Phipson and USL.

Growth 2006 2005Net Sales/Income from Operations 18% 2,087.48 1,769.08Other income 43.42 50.27

Total Expenditurea) (Inc)/Dec in stock in trade (15.25) (1.76)b) Consumption of Raw Materials 461.33 419.10c) Purchase of Finished Goods 226.24 70.63d) Consumption of Other Materials 455.82 440.22e) Staff Cost 155.03 158.91f) Other expenditure i) Advertisement & Sales Promotion 241.02 239.88 ii) Others 340.47 357.25

1864.65 1684.22Earnings Before Interest, Depreciation and Tax 97% 266.25 135.14

Interest / Finance Charges (Net of receipts) 163.87 58.25

Depreciation 25.24 25.57

Profit Before Non-recurring Items & Tax 50% 77.14 51.31

Non-recurring items (Net) - (30.25)

Profit Before Tax 266% 77.14 21.06

Year Ended March, 31

Rs. Crores


United SpiritsProforma Financial Results - Q1 07

USL 7

Note- The sharp increase in net sale and purchase of finished goods is on a/c of substantial

proportion of products manufactured in contract units being traded from the current year.

Growth June 2006 June 2005

Net Sales/Income from Operations 50% 721.69 480.26Other income 3.56 4.70

Total Expenditure

a) (Inc)/Dec in stock in trade 13.08 2.29b) Consumption of Raw Materials 119.92 119.20c) Purchase of Finished Goods 167.19 19.76d) Consumption of Other Materials 127.18 113.46e) Staff Cost 42.53 39.91f) Other expenditure i) Advertisement & Sales Promotion 51.43 49.23 ii) Acquisition Cost 7.84 - iii) Others 91.59 78.53

620.76 422.38Earnings Before Interest, Depreciation and Tax 67% 104.49 62.58

Interest / Finance Charges (Net of receipts) 25.46 29.36

Depreciation 5.96 5.95

Profit Before Tax 168% 73.07 27.27

Quarter Ended

Rs. Crores


Flavor/Segment Margin and Composition of Sales - USL

USL 8

Margin Distribution and Composition of Sales (%)

Flavor Segment

FY06-Margin Distribution FY06 FY05 FY04

Whisky Super / Scotch 4.7 0.4 0.3 0.2 Premium 22.5 4.3 4.3 4.1 Prestige 29.0 19.5 19.9 19.1 Regular 38.0 64.3 56.2 47.6 Medium 5.8 11.6 19.3 28.9

Whisky -------Total 100.0 100.0 100.0

Whisky 73.0 58.6 57.2 59.9 Rum 11.0 18.1 19.9 18.9 Brandy 8.0 18.3 18.1 16.6 Gin 3.0 2.2 2.5 2.9 Vodka 5.0 2.8 2.2 1.7

100.0 100.0 100.0 100.0

Composition of Sales (%)


USL Debt Profile – Q1 07

USL 9

Rs. Crs

Term Loans 58

Acquisition Loans-HL 157 SWC 437

Working Capital Loans 339

Fixed Deposits 72

Unsecured Loans (incl FCCB's) 446 1,509

Less: Cash & Cash Equivalent 380

Net Debt 1,129

Blended Cost of Debt 8.5%


New Product Initiatives

USL 15

To achieve the national roll out of McDowells’ Diet Mate whisky (using a proprietary and US patented technology from the Group Research Foundation – VMSRF)

Launching of unique Launching of unique

Diet Vodka (usingDiet Vodka (using

another US patented another US patented

technology from VMSRF)technology from VMSRF)


New Marketing Initiatives

USL 17

- To pursue the launch of existing products

in innovative packaging variants (tetra

packs, pre-formed sachets, etc) and there

by reduce the packaging cost as well as

the price point to consumers in addition to

the convenience of the pack itself .

Pre-formed

Sachets

180ml Tetra Pack

Saving

of Rs.30/-

per Cs.Saving of Rs.12/-

per Cs.


Medium TermBusiness Strategy

STG 1

SPIRITSSPIRITSSPIRITSSPIRITS

SPIRITSSPIRITS


USL – A Company in transition

From

• Multiple legal entities

• Primarily volume focus

• Growth driven by market share across segments

• “Spirits” player

• Focus on India

• Focus on annual performance

To

• One legal entity

• Primarily top-line and profitability focus

• Growth driven by increased “premium-ness” of the portfolio

• Spirits and wine player

• Global ambitions – pragmatically calibrated

• In addition to annual performance, accountability for 3 year strategic plan

STG 2


Strategic direction - focus on significantly increasing profitability

Strategic Themes

• Increase profitability to bring USL in line with other FMCG companies in India

• Focus on increasing market share in premium segments and on managing market share for profitability in other segments

• Enhance focus on brand building by increasing outlay on ATL, formalising innovation processes and controlling BTL

Metrics & Objectives

• Value growth to lead volume growth• Increase EBIDTA % by a min of

100 bp Y-o-Y

• Enhance MS in scotch and premium whisky segments – 25% in scotch by 2008-09

• Maintain MS in regular categories• Franchise/mothball tail brands

• Move A&P spends increasingly towards ATL

• Develop and implement product innovation agenda

• Leverage scale with trade

STG 3


Strategic Themes

• To Increase exports

• Enter wines segment

• Align performance metrics with the strategic plan

Metrics & Objectives

• Indian whisky to be exported in bulk to African countries for packaging in sachets

• To build 3 large multi sub-strate plants, enabling manufacture and export of grain based whisky to USA and Europe

• Development of Existing Brands• Acquisition of International

brands and Viticulture technology – Bouvet Ladubay

• Enhance existing winery facility at Baramati

• Bottling bulk imported wine as well as domestic wine

• Introduce balanced scorecard to assess performance

• Revise incentive system to include a long term component, in addition to short term incentive

STG 4

Strategic direction - focus on significantly increasing profitability


United Spirits will evaluate opportunities globally and such overseas forays will-

• Strengthen its presence in its core Indian business;

• Create credible alternatives in the premium and high end segment;

• Facilitate entry into new segments, such as wines, etc

• Provide access to non traditional global markets, particularly Russia and China

STG 5

Overseas Foray


-

ACQ 1

• Founded in 1851, one of the oldest Saumur wine houses with an excellent brand image, having won 234 medals of excellence in the last 30 years.

• Largest producer of sparkling wine in Saumur region.

• Sells over 3 mio bottles p.a in USA, France, Germany, UK and other EU markets

• Bouvet Ladubay – a land mark brand among the Brut Sparkling Wine brands of the Loire valley.

• Brands acquired include 14 Sparkling Wine & 7 Still Wines, which include – Sparkling Wine- Still Wines-

Cuvee Saumur Rouge Trésor Blanc Médallion Anjou Rouge Trésor Rose Médallion Chinon Trésor Rouge Médallion

Acquisition of Bouvet Ladubay


-

Bouvet Ladubay

ACQ 2

Financials (YE 12/05) Ratio’s (to sales) Sales €12.12 mioGross margin € 6.40 mio 53.5%EBITDA € 1.05 mio 8.7%PAT € 0.50 mio 4.0%

The EV and EBIDTA multiples are within the range of similar transactions.

What the acquisition means to USL ?

• BL provides access to distribution in US and European market which will be developed over time to export other company products.

• Enabler to import both BIO and bulk wine of excellent provenance into India

• Facilitates introduction of advanced viticulture technology in India


-

McDowell & Co. (Scotland) Ltd

ACQ 3

• Cost of Acquisition - £ 1.575 mio, purchased at par

• The company has properties worth £ 2.5 mio.

• Business plan is to put up a scotch maturation facility utilising part of the 67 acres of land & building owned by the company.

• Significant savings envisaged on transfer of mature scotch whisky to India

• The intent behind this acquisition is to purchase young scotch at attractive prices, mature in-house upto various age profiles


United Breweries & Indian Beer Market

•Globally, characterized by one dominant player in

each country – In India UB Group

•UB Group is the leader in the Indian market with a

50% market share.

•UB and SAB Miller collectively have more than 90%

share of the Indian beer market

•Owns 15 manufacturing units and 9 contracted

(controls over 50% of the brewing capacity in the

country)

•Strategic partnership with Scottish & Newcastle

UBL 1


Top Brewer 50%: top 2 circa 79%

Top 5 Brands 65% of total market

c.90% of volume in 650 ml bottle

Market Share Mar 06

Brand Market Share Mar 06

Indian Beer Market

UBL 2


• Close to 1 million outlets in India sell soft drinks• The number of outlets that sell beer is under 54,000• 1 outlet per 20,000 people (c. 1 per 350 people in UK)

600Clubs (Members)

20,500On-Premise Outlets

32,800Off Premise Outlets

•Reform of beer retail licensing and beer duty would create a step change in growth

•States where reforms have been recently implemented reflect significant growth

Liberalisation is an additional opportunity

UBL 3


• Dominates the Indian Beer market with a 50% market share

• Is over 1.5 times the nearest competitor

• Against a market CAGR of 9%* over 5 years, UB has grown at 15%

• Market share + 12 %pts* since 2001

• Recognized a “Business Super brand” in 2005, a tribute to strong brands built by UB

Long Term market Leading Performance

Growth 06 v 05

5 year CAGR

Strong 28% 29%Mild 12% 6%Total 20% 15%

* - UBL + MAL 2005/06 vs 2000/01

United Breweries Ltd

UBL 4


• Every third bottle of beer consumed in India is a Kingfisher

• Built on the platform of “The King of Good Times”,

Kingfisher is almost generic to the category

• Brand Kingfisher synonymous with a fun, stylish, aspirational lifestyle and has managed to be relevant to consumers through changing time.

• One of the few brands in the country to be successful in multiple categories

– The largest beer brand in India– In the top 5 packaged water brands in India– The “Best New Airline” in the Asia Pacific region in 2005

Kingfisher India’s first global consumer brand


Mild beer Market growth* 5%

UBL growth* 6%

Kingfisher brand market share 55% UBL Market leader in 9 of 10 largest states

Strong beer Market growth* 11%

UBL growth* 29%

Kingfisher brand market share 26%UBL Market leader in 6 of 10 largest states

* - 5 Yr CAGR to March 2006

United BreweriesLeadership in Share & Growth

UBL 6


United BreweriesProforma Financial Results for the Q1 07

UBL 7

Growth % Q1 07 Q1 06 FY 06

Income

Net Sales/Income from operations 19 193.34 162.66 580.48

Other Income 2.40 7.86 15.09

Total Income 195.74 170.52 595.57

Expenditure

(Inc)/Dec in stock in trade 2.69 4.15 3.21

Consumption of Raw Materials 18.83 14.58 53.42

Power & Fuel 8.54 5.54 21.60

Staff Cost 11.97 11.11 42.28

Other expenditure

i) Consumption of other materials 47.26 38.35 150.15

ii) Advertisement & Sales Promotion 44.90 32.92 156.19

iii) Others relating to operations 10.23 15.00 53.95

EBIDTA (Q1'07 includes new subsidiary - KBDL) 54 75.47 48.88 114.77

Interest and Finance charges (net) 8.11 4.59 21.87

Depreciation 3.31 2.83 13.55

Profit Before Non recurring items &Taxation 64.05 41.46 79.36

Non Recurring items (13.18) (1.61)

Provision for Taxation

- Current (14.58) (11.88) (25.18)

- Fringe benefit tax (0.60) (0.18) (1.98)

- Deferred Tax Assets/(Liability) 0.75 (2.39) (2.20)

Net Profit 259 49.62 13.83 48.38

Rs Crores


UB - Strategy

• Focus on Brand Imagery– Since Beer is a category with little product differentiation,

consumer’s brand choice is largely on imagery– With multiple brands in each segment of beer, UB has

successfully positioned different brands on different platforms relevant to different consumers, different need states

– Kingfisher has appropriated some of the category values including `refreshment’

• Brand Association– With Fashion, through Kingfisher Fashion Awards and the

Kingfisher Swimsuit Calendar– With high visibility events like the Mumbai Marathon, the

Delhi Half Marathon, the International Film Festival of India

– With events important to the ethos and culture of people in key regions like the Goa Carnival, the Bangalore Habba

UBL 8


• Focus on Value to Consumer• Bottle Return model

– Small packs to drive consumption

• Dominance at point of purchase / consumption through– Visibility– Cold Stock Management

• To develop new consumption occasions for beer– “Food tastes better with Kingfisher”– Promote Home Consumption of Beer– Sporting Occasions– Movies

• Innovation– In product– In packaging

UB – Strategy (Contd..)

UBL 9

Welcome aboard Kingfisher Airlines

KFA 1

UB Group (India)

UB Group, having achieved dominance in its core beverage business, was looking to leverage its unique strengths ina) Understanding the needs of the evolving Indian consumerb) Creating premium products at true value c) Operating in a highly regulated environmentd) Leveraging brand equity

• Aviation offers extra ordinary growth potential

• Success based on three core strengths a) Ability to tightly manage costsb) Ability to manage scale up c) Ability to deliver a unique experience while remaining competitive

• UB Group is committed to the success of KFA through financial, management, brand and marketing support

The UB Group and Aviation

KFA 2

Air Travel Market Potential

Domestic Traffic – grew by 23% to 21.82 mio passengers in 2005, over 17.70 mio passengers in 2004.

For the first 5 months of 2006 actual passenger traffic was 12.68 mio which equates to a projected annualised growth of 39% in 2006 over 2005.

India has currently only about 200 aircraft operating domestically and internationally as compared to China which has 750 aircraft.

With 8% + GDP growth expected over the next few years and the buoyancy in the corporate sector, business and leisure travel is expected to far exceed first time travel.

UB Group (India) KFA 3

•Superior Experience –

Highest seat pitch

Personalized in-flight audio & video

Hot meals

Home delivery of tickets

Valet service at the airport

• Standard Aircraft type resulting in high aircraft utilization

• All Brand new aircraft operated by International class Cabin crew

KFA 4

Mission, Vision and Values

VISION: The Kingfisher Airline family will consistently deliver a safe, value based and enjoyable travel experience to all our guests

VALUES: Safety, Service, Happiness, Teamwork and Accountability

MISSION: Be the most successful Full Service, True Value airline operating in India Create a following of ‘fans’ and not just loyalists. Drive ‘Addiction’ to Kingfisher Class and Kingfisher First. To be the Market Leader by 2010.

UB Group (India) KFA 5

Why Full Service & not Low Cost ?

Over 60% of variable costs are common for any airline. This

includes

Fuel – 37%

Maintenance – 10%

Landing and Parking Charges- 7%

Lease Rentals - 6%

Cost such as salaries of Pilots, Engineers etc, are standard and

do not differ between LCC and a full service carrier.

In India, there is no cost differential to justify low pricing as in an

LCC

60%

KFA 6

Management - Advisory Board

Kingfisher’s Advisory Board has the who’s who of the international aviation industry –

Sir Ralph Robins - Former Chairman of Rolls-Royce

Sir Colin Terry - Former Chief Engineer and Head of Logistics – Royal Air Force

Mr. Stewart John, OBE - Former Head of Engineering - Cathay Pacific Airways

Mr. H Lr Karel H Ledeboer – Former CEO of KLM Royal Dutch Airlines and COO – Swiss Airlines

Mr. David Turnbull - Former Chairman of Swire Pacific Ltd and Cathay Pacific Airways

Kingfisher will be greatly benefited from the immense knowledge of this team of Advisory Board members

KFA 7

Milestones

Achieved a market share of 8.7% in the first year of operation.

2200 flights/month within 12 months of operation

Flown 2 million guests in 15 months.

Connecting 16 cities within the first year.

Inducted an average of more than 1 aircraft per month which is amongst the highest induction rates in the world.

KFA 8

Kingfisher first - Redefining Business

KFA 9

International Strategy

International traffic expected to grow between 18-20% per annum.Current Government policy requiring 5 years of domestic operations prior to flying overseas likely to be reduced.

As a contingency plan KFA has worked out “damp” lease arrangements with foreign carriers to operate KFA aircraft on international sectors.India – US – India nonstop flights present the most unique opportunity and reduced competition. KFA will concentrate mainly on this opportunity and has ordered specific aircraft types to undertake this mission.

KFA will commence nonstop flights with the Airbus A340 -500 between Bangalore and San Francisco and Bombay and New York in Q1 2008.KFA will commence nonstop flights with the Airbus A330 - 200 between Bombay and London and Bombay and Hong Kong in Q1 2008.All KFA aircraft will be configured in a 3 class layout, offering Super First Class, Ultra Business class and Kingfisher class.

KFA 10

Significant Awards & Recognitions

• Kingfisher voted the Best and Most preferred

Airline in India in the ‘TOI/IMB’s Its my biz “Skywar”

contest’.

• Winner of the “Best New Airline of Year” Award for

2005 in the Asia-Pacific & Middle East region from

Centre for Asia Pacific Aviation (CAPA)

• Winner of the world-renowned SKYTRAX Award for

Service Excellence 2005-06

• Winner of the PATWA award for Service and CuisineKFA 11

Financials- Unaudited – FY 06

Revenue Statement – Major Items

Rs. Mio Rs. Mio

Income 5,845.00

Fuel Cost 2,356.00

Total Operating Cost 6,806.00

Other Cost 760.00

EBIDTA

(1,721.00)

PBT

(1,908.00)

KFA 12

Financing arrangements

The leading edge service model conceived and conceptualized for Kingfisher would incur substantial start up cost before break even. UB Group has already invested

~ $ 100 Mio and would fund fully the start up costs including the operating losses

Pr-delivery payments - The Indian banks are quite keen to participate in the booming airline industry and we have successfully syndicated this requirement thru UB Group’s consortium of banks to the tune of $ 202 Mio.

Upon delivery of aircrafts, the options available are -

- Sale and lease back (presently -11 aircrafts), - Commercial credit from international bank or (presently- 1 aircraft), - Banking finance backed by guarantee from the

European export credit agencies (presently - 4 aircrafts)

KFA 13

Funding Plan

• KFA intends to access the primary market in 2

years time.

• Meanwhile for the interim, in-principle

approval for back-stop funds has been received

from a large Indian bank, which will take care of

all incidental requirements for the next 2 years.

KFA 14


United Breweries (Holdings) Ltd

UBHL 1

INVESTMENTSAgainst a holding cost of Rs.184 crs, the current market value is Rs.2020 crs

REAL ESTATE•Owns ~ 473,000 sqft of prime property at Bangalorecalled UB City (Completionexpected by Q3’07)• Current market value ofproperty is ~ Rs.354 crs, as against a holding cost of Rs.170 crs.• Rental income estimated at ~ Rs.22.5 crs p.a

Trade Mark LicensingFixed royalty receivableon a/c of Trade Marklicensing to Group companies – Rs. 18 crs p.a


Thank You

Presentation - UB Group

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