The Power of Leadership Presentation to Analysts and Investors 10 th August 2007, Mumbai

The Power of Leadership Highlights Main line 16.8 Mio. Cases grew 16% > Previous Year Mio. Cases Overall 18.1 million cases - growth 13% Mio. Cases

USLMcD Growth in EBIDTA continues …… The Power of Leadership

Q1’08 - Financials The Power of Leadership

Debt Position * Without considering mio shares of USL (Treasury Stock ) currently valued at Rs Crs *

Comparative Performance with the nearest domestic competitor

Policy Change Impact 1. Karnataka - ‘Arrack’ ban implemented effective 1 st July 2. UP – Creation of ‘Private’ wholesale corporation 1.Huge growth potential for low end brands. USL using franchise route to participate in this price band and is also exploring the possibility of profitably exploiting this new opportunity 2.May have an adverse impact on realization and trade terms. New system yet to stabilize. The Power of Leadership Regulatory Changes

Wine Project India’s largest winery is being built at Baramati - to be operational by October’08. Cost of the project – Rs.23 crs, over a three year period. Brand ZINZI to be launched next month - sourcing from a tie up winery. Bouvet Ladubay brands launched in Mumbai between the price points Rs1400/- and Rs 2800/-. Product launch in Delhi and Bangalore in Sept’07. Four Seasons range of premium brands to be launched from October’08 The Power of Leadership

Withdrawal of Additional Customs Duty (ACD) ACD was hitherto being levied over and above the basic Customs Duty (BCD) charged on the assessable value of spirit/beer/wine imported into India and was shared with the State Governments. Post the withdrawal, the state governments have been allowed to levy a duty on imported Foreign Liquor (Bottled in Origin). The state governments are in the process of instituting such levies. The new proposed levy structure would result in the following position – The Power of Leadership

Trade Marketing The Power of Leadership Increase focus on On-premise as compared to traditional retail Create a large network of Destination Outlets across the country Focus on interaction-led activities than awareness-led activities. Key account management for Premium outlets

USL – Destination outlets The Power of Leadership

USL POISED TO EXPLOIT INDIA OPPORTUNITY Rapid induction of new consumers along with increasing urbanization will accelerate growth Early entry - 70 % prestige & 50% premium customers b/w yrs USL (along-with W&M brands) has a full line portfolio that straddles all key price/value points with a pan India foot print USL continuing to make investments in building rare and prestige portfolio and on premium premise / trade marketing capability Working population to rise by 30% by 2013 Disposable income to increase at an average of 8.5% p.a upto 2015 Spending on non basic discretionary items and personal consumption to grow at 9-10 % p.a Source – Accenture Consulting

The Bulging Consuming Class The Power of Leadership Alco-beverage Industry Impact  Fastest growing segments- Premium Vodka 50%, Premium Whisky 30%, Super premium Whisky 50%, Premium Scotch 75%. 3 yrs back these segments were sluggish  Prestige segment growth at >20% compared to <10% in Regular segment  Direct entry in prestige & above categories – new phenomena

Outlook Third party Grain distilleries with exclusive buy back arrangement – reduces capex outlay; Option for equity participation available for better control Raw material price softening - However margin expansion will be around 200 bps over March’07 due to cost pressures in other materials, increased brand building activities and certain policy changes The Power of Leadership

Status update - W & M acquisition The Power of Leadership Post take over, Scotch prices have further hardened by 10-15%. Grangemouth bottling plant – Initiatives to bring in substantial savings. Brand contribution trajectory improving month on month. New markets, namely China, Taiwan, Korea & Spain being considered for tie up distribution. Agreement for contract bottling of JIM BEAM brands entered into post take over (> than a million cases p.a) Launch of W & M brands in India by the festive season. Branded scotch business in Europe and UK is cyclical – 2/3 rd of the business accounted in the festive season – October / December.