1. The UB Group PRESENTATION ON McDOWELL & COMPANY UNITED BREWERIES LTD 27 th October 2005

2. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction  Beer :  48% market share nationally  Sold in over 52 countries  India’s 1 st global consumer brand - Kingfisher  Spirits :  54% market share in the domestic market  2 nd largest player in the world  Both businesses poised for spectacular growth  Compelling demographics  Rapid rise in disposable income  Changing lifestyle & spending pattern  Slow but sure dismantling of regulatory controls India’s leading drinks group UB Group (India)

3. The Market for Beverage Alcohol These regulatory hurdles constitute an entry barrier to the industry Regulatory environment : The Indian market is highly regulated, highly restricted and highly taxed. Licensing requirement exists for Raw material procurement, Stocking of raw material, Production, Inter-state movement, Retailing and Distribution. Controls also exist on Brand entry, Advertising, Distribution & Pricing. UB Group (India)

4. The Indian Market The UB Group enjoys a unique advantage as the Leader in both Spirits and Beer Segments Re-distribution structure – Government market (65%) –State government is the sole distributor Auction market (16%) – State government auctions geographical territories which has led to monopolies / cartels Free market (19%) – Through trade licenses Bargaining power in the distribution network is commanded by players with premium brands, large volume base and product range UB Group (India)

5. The Indian Market Spirits Market - India is a 112 million cases market, growing at around 9-10% p.a Armed Forces – another 12.5 million cases Whisky dominates – 62% Low Spirits consumption – Per capita < 2.1 liters p.a Changing lifestyle, exposure to global trends fueling growth MNC’s entered 10 years ago, but yet to emerge strongly Industry has seen some shakeout consequent to marginalization of smaller players UB has aggressively consolidated its leadership position by - Acquiring brands (Gilbeys Whisky) & Companies (SWC) - Investing heavily in brand building UB Group (India)

6. Acquisition of Shaw Wallace Shaw Wallace was the 2 nd largest player in spirits in India (MS - 15%). UB Group acquired ~ 55% stake for a consideration of Rs.13,000 mio in July 2005 Stakes increased to 75% through open offer. Valuation underpinned by growth prospects and synergies arising from combined MS. Vision to bring all Spirits business together and create “United Spirits” Combined business would be amongst top 50 private sector companies in India. UB Group (India) Combined brand portfolio gives leadership in ALL flavors, geographies and price points

7. Phase I Investment division of McD to be demerged into NewCo – All non-spirits investments to be demerged – Demerged entity to have mirror shareholding as McD Merge all operating spirits companies into McD –Swap ratios decided basis KPMG & Haribhakti valuations SWC itself may be merged few months later upon resolution of tax / other litigations - However McD will directly hold 75% of SWC even in the interim stage Phase II Merger of SWC & its upstream overseas holding companies into McD – McD’s holding in SWC to be transferred to a Trust – SWC’s holding in McD to be cancelled Restructuring Mechanics UB Group (India)

8. Merger schemes of Phase I filed with Stock Exchanges Time frame for completion of mergers April – May 2006 Appointed date April 1, 2005 Following entities being merged McDowell & Company Limited (Listed) Herbertsons Limited (Listed) Triumph Distillers & Vintners Private Limited United Distillers India Limited Baramati Grape Industries Limited Phipson Distillery Limited United Spirits Limited Asian Opportunities & Investments Limited McDowell International Brands Limited Zelinka Limited Shaw Wallace Distilleries Limited together with its subsidiaries Non-spirits Investments being divested into McDowell India Spirits Limited, a wholly-owned subsidiary Restructuring Process – Status Report UB Group (India)

9. Mergers…update Filing of schemes with Stock exchanges completed Schemes to be filed with courts –1 st week of December’05 Court convened meetings- Mid January Final hearing by Courts –End March ’06 Filing of orders with RoC and listing by end April ‘06

10. Sales Performance HY–I -- FY’06 UB Group (India) CompanyLine Million cases % Grwth HY-I FY’04HY-I FY’05 McDowell Main line 9.3911.1619% TOTAL 12.3913.519% CompanyLine Million cases % Grwth HY-I FY’04HY-I FY’05 ‘UNITED SPIRITS’ Main line 18.8323.3324% TOTAL 27.1330.1711%

11. Resultant Structure MCD (Spirits) UBHL & Associates Public X% z% Trust y% MCD (Investments)* UBHL & Associates Public 42.47% 57.53% * Includes non-spirits investments Aventis, Mangalore Chemicals, UBHL, UBL etc UB Group (India) McD Results Sep’05

12. UB Group (India) United Spirits Sep ‘05

13. Brand Performance HY–I -- FY’06 UB Group (India) BrandFY’05FY’06% Grwth Bagpiper Whisky3.495.4556% McDowell’s No.1 Whisky2.563.0218% McDowell’s No.1 Brandy2.322.8021% McDowell’s Celebration Rum2.032.187% McDowell’s Signature Whisky1.482.0438% Old Cask Rum0.82 1% Gilbey’s Green Label Whisky1.151.11(4%) Blue Riband Gin Series0.56 1% Gold Riband Whisky0.461.04127% Antiquity Rare Whisky0.040.0653% Royal Challenge Whisky0.440.466% Director’s Special Black Whisky2.273.4954% Director’s Special Whisky1.932.3818% White Mischief Vodka2.784.2051%

14. Spirit prices have been rising since early 2004 Failed sugarcane crop Increased dosage of alcohol in motor spirit Spirit prices softening – but quantum step-up from earlier levels Furnace Oil prices spiralling Raw Material Price Trends UB Group (India)

15. Cost push offset by Increase in NSR Decrease in market spends Strategic buying of raw material including stock build-up Increase in NSR / Decrease in Spends UB has been in the forefront of the industry initiatives to drive prices up and spends down Have spearheaded industry meetings with State Govts to obtain price increases e.g. TN, Kerala, Delhi, Rajasthan McDowell’s NSR increase Rs 29 / case Decrease in COG Stocks built up pre-April 2004 cushioning impact of the rise in prices Imported molasses Strategic timing of purchases to effect price reductions Result: HY-I costs of FY’04 are still lower than HY-I of FY’05 by Rs.19/case Fuel cost impact accounts for Rs.5/case Trends - Realization & Costs UB Group (India)

16. Brand building exercise continues Packaging Innovations introduced; Others on the anvil Reduces costs; beats counterfeiting Tetra packs Pouch Packs to replace mono-cartons Other Tamper-proof and tamper-evident packaging Synergies Detailed exercise undertaken with help of Accenture to identify potential areas Procurement Market spends Terms of Trade Removal of clashing interests e.g. Competing Brands, Duplicate Mfg Sources Duplicate Services / Infrastructure Costs of Business e.g. levies Trends - Realizations & Costs (contd.) UB Group (India)

17. Synergies – Costs & Revenues UB Group (India) Total synergies estimated in excess of Rs 100 cr on a sustainable basis (Rs 0.50/bottle) Major synergies from areas other than consumer price increases Majority of revenue synergies not quantified

18. Sales Volumes > 61 million cases Bagpiper – India’s Largest Alcobev brand > 11 million cases McDowell’s No.1 family - ~ 17 million cases EBITDA Rs. 275 crores Realization of synergies would have commenced in full swing Outlook FY’06 United Spirits UB Group (India)

19. The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) United Breweries Limited

20. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Key Highlights PBDIT (UBL) for the half year Rs. 64.3 crores, and increase of Rs.40.5 crores versus last year PBDIT (Combined business) Rs. 78.1crores, and increase of Rs.68 crores versus last year Volume growth of 22% in UBL & in the combined business and continues to outperform the industry Price increases achieved in a number of key states Interim dividend of 15% paid by UBL UBL - Winner of Super brands award

21. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Summary P & L

22. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Key Drivers of Performance Volume growth Implementation of price increase in key states Reduction in cost of sales driven by bottle cost Synergized operation between UBL & MAL

23. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Market Share Movements

24. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Volume Performance

25. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Analysis by Pack Type

26. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Average Realization and Cost of sales Realization drivers: Andhra – Price revision after 7 years Kerala – Price revision after 4 years Delhi – Matched Kerala prices Rajasthan – Auction market to Govt. distribution, policy changes Price increases in 2004-05 to offset bottle cost maintained Cost Drivers: Rationalization in bottle prices Optimization of Power & inputs costs Synergy of operation – economies of Scale

27. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Cost of Sales Analysis

28. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Integration of UBL and MABL Rationalisation of brand portfolio by state Changes to sourcing of beer to achieve least cost supply Closure of Mumbai based MABL head office Synergies taken in the areas of: –Raw material procurement –Marketing and promotional costs –Headcount

29. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) Trading Outlook Strong volume performance expected to continue –Strong beer segment to continue lead Hardening of raw material costs –Barley Other Costs in line with the growth in volume Substantial capital expenditure – over Rs.400 crore approved by the board to be incurred over a period of seven years to meet the growing demand Proposal to discuss merger of various subsidiaries, in place – Substantial improvement in cash profits.

30. UB Group (India) The UB Group, is the market leader in both Spirits & Beer business in the country The Group has a turnover of Rs 3700 crores The core Beverage Alcohol business account for 80% of the group turnover Other interests include Fertilizer, Engineering, Life Science, Infrastructure development & Media The Group is professionally managed and is headed by Dr Vijay Mallya, the Group Chairman The UB Group- An introduction UB Group (India) THANK YOU