VRRUn BEVERAGES LffTlfCEe W ifco rp Corporate Off : Plot No.31, - - PDF document

ifco rp

VRRUn BEVERAGES LffTlfCEe W

Corporate Off : Plot No.31, Institutional Area, Sec.-44, Gurgaon, Haryana-122002 (India) Ph.: +91-124-4643100-500 • Fax: +91-124-4643303/ 04 E-mail : info@ rjcorp.in • Visit us a t : www.rjcorp.in CIN No. : L74899DL1995PLC069839

Augu st 9, 2018 To, BSE Lim ited National Stock Exchange of India Ltd. Corporate Relationship Departm ent, Exchange Plaza, 5th floor, Plot No. C/ l, G 1st Floor, New Trading Ring, Block, Bandra Kurla Com plex, Bandra [E], Rotunda Building, P J Tow ers, Dalai Street, Mum bai - 400 051 Fort, Mum bai - 400 001 # 022-2659 8237, 8238, 8347, 8348 022-2272 3 1 2 1 ,2 0 3 7 ,2 0 6 1 cm]ist(a>nse.co.in coro.relations(S>bseindia.com

Symbol: VBL Security C

• de No. 540180

Series: EQ Sub: Conference C all with Investors/ Analysts

In continuation to our earlier letter dated August 7, 2018 regarding the Conference Call w ith Investors/ Analysts on Thursday, Augu st 9, 2018 at 4.00 P.M. [1ST], please find attached a copy of the earning presentation on Unaudited Financial Results for the quarter and six m onths ended June 30, 2018. Kindly upload the sam e on your w ebsites. The sam e is also being uploaded on the w ebsite of the Com pany. Yours faithfully,

Chief Risk Officer G roup Company Secretary

• Enel. As Above
• Regd. Office : F-2/ 7, Okhla Industrial Area Phase-1, New Delhi - 110 020
• Tel. :

011-41706720-25 Fax. 26813665

A u g u s t 0 9 , 2 0 1 8

V a ru n Be v e ra g e s Lim ite d

Q 2 & H1 2 0 1 8 Re s u lts Pre s e n ta tio n

Disc la im e r

C e rta in sta te m e nts in this c o m m unic a tio n m a y b e ‘fo rw a rd lo o king sta te m e nts' w ithin the m e a ning o f a p p lic a b le la w s a nd re g ula tio ns. T he se fo rw a rd -lo o king sta te m e nts invo lve a num b e r o f risks, unc e rta intie s a nd

• the r fa c to rs tha t c o uld c a use a c tua l re sults to d iffe r m a te ria lly fro m tho se sug g e ste d b y the fo rw a rd -lo o king

sta te m e nts. Im p o rta nt d e ve lo p m e nts tha t c o uld a ffe c t the C o m p a ny's o p e ra tio ns inc lud e c ha ng e s in the ind ustry struc ture , sig nific a nt c ha ng e s in p o litic a l a nd e c o no m ic e nviro nm e nt in Ind ia a nd o ve rse a s, ta x la w s, im p o rt d utie s, litig a tio n a nd la b o ur re la tio ns.

V a ru n Be v e ra g e s Lim ite d (V BL) w ill no t b e in a ny w a y re sp o nsib le fo r a ny a c tio n ta ke n b a se d o n suc h sta te m e nts

a nd und e rta ke s no o b lig a tio n to p ub lic ly up d a te the se fo rw a rd -lo o king sta te m e nts to re fle c t sub se q ue nt e ve nts

• r c irc um sta nc e s.

Ta b le o f C o n te n t

C o m p a n y O v e rv ie w C h a irm a n ’s M e ssa g e Q 2 & HI 2 0 1 8 Re su lts O v e rv ie w Pe rfo rm a n c e Hig h lig h ts A n n e x u re

i

Chandigarh' Haryana-

• ----- Uttarakhand

^ Nepal Rajasthan Bhiwadi ainpur Bihar

Jharkham M adhya

Pradesh

< 1 , Odisha

Sri Lanka

Parts of M aharashtra

Goa

C o m p a n y Sn a p s h o t

Ke y p la y e r in the b e ve ra g e ind ustry

O p e ra tio ns sp a nning a c ro ss 6 c o u n trie s - 3 in the Ind ia n Sub c o ntine nt (Ind ia , Sri La nka , Ne p a l) c o ntrib ute ~ 9 0 % to re ve nue s; 3 in A fric a (M o ro c c o , Za m b ia , Zim b a b w e ) c o ntrib ute ~10% O ve r

2 5

ye a rs stra te g ic a sso c ia tio n w ith Pe p siC o

• a c c o unting

fo r ~

5 1 % +

• f

Pe p siC o ’s b e ve ra g e sa le s vo lum e in Ind ia a nd p re se nt in 21 Sta te s a nd 2 UT s

No te : *A unit c a se is e q ua l to 5.678 lite rs o f b e ve ra g e divid e d in 24 b o ttle s o f ~ 237 ml e a c h

Bra n d s lic e n se d b y Pe p siC o

M a n u fa c tu rin g & D istrib u tio n : C a rb o n a te d So ft Drin ks

Q ) p e p si.

Fruit Pulp / Ju ic e Ba se d Drin ks

IropT cana

C a rb o n a te d Ju ic e Ba se d Drin ks

_ I ropTcana

f r u j ^

En e rg y D rin k D istrib u tio n : Fruit Pulp / Ju ic e Ba se d Drin ks

'froplcana

IropTcana

ESSENTIALS

IropTcana

DE LIG HT

Sp o rts D rin k

Da iry

" N

V BL- EN D - TO - EN D EX EC U TIO N A C RO SS V A LU E C H A IN

Ke y Pla y e r in th e Be v e ra g e In d u s try - Bu s in e s s M o d e l

• --- 1

26 sta te -o f-th e -a rt p ro d u c tio n fa c ilitie s

72 o w n e d d e p o ts 2,1 00 + o w n e d v e h ic le s 1,000+ p rim a ry d istrib u to rs

V BL - lo c a l le ve l p ro m o tio n a n d in -sto re a c tiv a tio n In sta lle d 4 7 4,5 00 v isi-c o o le rs — Pe p siC o - b ra nd d e v e lo p m e n t & c o n su m e r m a rke tin g

Exp e rie n c e d re g io n -sp e c ific sa le s te a m Re sp o n sib le fo r c a te g o ry v a lu e / v o lu m e g ro w th — Re sp o n sib le fo r re a c h in g o u t to ~ 1 / 8 th o f th e w o rld 's p o p u la tio n

Pro d u c tio n o p tim iza tio n Ba c kw a rd in te g ra tio n In n o v a tio n (p a c ka g in g e tc )

• W o rkin g c a p ita l e ffic ie n c ie s

D isc ip lin e d c a p e x in v e stm e n t Te rrito ry a c q u isitio n

Sy m b io tic Re la tio n s h ip w ith Pe p s iC o

V BL - D e m a n d D e liv e ry In v e s tm e n t in Pro d u c tio n Fa c ilitie s - M a n u fa c tu rin g p la n ts ■ Sa le s & D is trib u tio n - V e h ic le s ■ In - o u tle t M a n a g e m e n t - V is i- C o o le rs ■ M a rk e t Sh a re G a in s

• C o n s u m e r

Pu s h M a n a g e m e n t Pe p s iC o - D e m a n d C re a tio n ■ O w n e r o f Tra d e m a rk s ■ In v e s tm e n t in R& D

• Pro d u c t

& Pa c k a g in g in n o v a tio n ■ Fo rm u la tio n th ro u g h C o n c e n tra te ■ Bra n d D e v e lo p m e n t - C o n s u m e r Pu ll M a n a g e m e n t

C h a irm a n 's M e s s a g e

C o m m e n tin g o n th e p e rfo rm a n c e fo r Q 2 & H1 2 0 1 8 , M r. Ra v i Ja ip u ria , C h a irm a n - V a ru n Be v e ra g e s Lim ite d sa id ,

“We are p le a se d to a nno unc e tha t we ha ve de live re d a stro ng p e rfo rm a nc e in the se c o nd q ua rte r, the p e a k se a so n fo r o ur p ro duc ts, de live ring a ro b ust to p line g ro wth o f 26.1% a nd ne t p ro fit g ro wth o f 24.9%. Wha t is e nc o ura g ing is tha t vo lume g ro wth ha s re ve rte d to do ub le dig its in line with histo ric a l tre nds o f the la st 25 ye ars. O rg a nic vo lume g ro wth in I ndia wa s ro b ust a t 12.6% in Q2 2018. T he intro duc tio n o f ne w p ro d uc t c a te g o rie s, like T ro p ic a na a nd Sting , ha s re sulte d in b e tte r p o rtfo lio m ix a nd im p ro ve d o ur re a liza tio ns during the q ua rte r. O ve r the la st 12 mo nths we ha ve unde rta ke n se ve ra l b usine ss stre ng the ning initia tive s inc lud ing the a c q uisitio n

• f 5 ne w sub -te rrito rie s in I

ndia , se tup a g re e nfie ld p la nt in Ne p a l a s we ll as ma de a ve ry suc c e ssful fo ra y into the Zim b a b we a n ma rke t, re c o rd ing stro ng vo lume s. Eve n a fte r the se inve stme nts, we ha ve b e e n a b le to drive a re duc tio n in o ur o ve ra ll de b t le ve ls o n the b a c k o f he a lthy c a sh flo ws. De sp ite the ro b ust vo lume g ro wth, o ur c a p a c ity utiliza tio n during the p e a k mo nth ha s re m a ine d und e r 70%, p ro vid ing sig nific a nt sc o p e fo r g ro wth o n e xisting inve stme nts. Furthe r, the te rrito rie s a c q uire d are hig hly unde r­ p e ne tra te d a nd p ro vid e hug e o p p o rtunity fo r inc re a sing vo lume s a nd g a ining ma rke t share . We ha ve e nha nc e d o ur p o rtfo lio mix o ve r the la st fe w mo nths with ne w p ro d uc t a dditio ns with e thnic fla vo urs in the fa st g ro wing juic e se g me nt. We will le ve ra g e o ur e xisting distrib utio n ne two rk a nd c hilling infra struc ture to he lp e xp a nd vo lume s in the T ro p ic a na juic e b usine ss in the No rth a nd Ea st re g io ns b y g ro wing its a va ila b ility in the se re g io ns. T he se initia tive s a ug ur we ll fo r o ur lo ng te rm g ro wth p ro sp e c ts a nd a lso will re duc e se a so na lity, e nha nc e p ro fita b ility a nd a ug m e nt re turn ra tio s. We a re fo c use d o n stre ng the ning o ur re a c h a nd inc re a sing a va ila b ility in line with c usto m e r p re fe re nc e s a nd are c o nfid e nt tha t the e ffic ie nt e xe c utio n o f o ur stra te g y will tra nsla te into p ro fita b le , susta ina b le a nd re sp o nsib le g ro wth. ”

8

• Rs. m illio n

Pe rfo rm a n c e Hig h lig h ts

yy 2 6 .i %

^

' 111

• 0£

^ y 24 .9 %

p at

• 29 .3 %

No te : * Un d e rly in g m a rg in s h a v e im p ro v e d in e xistin g a s w e ll a s re c e n tly a c q u ire d te rrito rie s. Ble n d e d EBITD A m a rg in s d e c lin e d 150 b p s Yo Y to 2 7 .9 % d u e to

66

D is c u s s io n o n Fin a n c ia l & O p e ra tio n a l Pe rfo rm a n c e

• Re ve n u e fro m o p e ra tio n s (ne t o f e xc ise / G ST) g re w 2 6 .1 % Yo Y in Q 2 20 18 to Rs. 20,591 m illio n le d b y ro b u st v o lu m e g ro w th o f 2 1 .3 % a nd

v a lu e g ro w th o f ~ 4.8%. In tro d u c tio n o f h ig h e r re a liza tio n p ro d u c ts (Sting , Tro p ic a n a , e tc .), M RP in c re a se in se le c t SKUs a nd re c la ssific a tio n o f fre ig h t c o st (inste a d o f n e ttin g o ff fro m re ve n ue ) ha ve re su lte d in v a lu e g ro w th

• To ta l sa le s v o lu m e s w e re up 2 1 .3 % Yo Y a t 136.4 m illio n c a se s in Q 2 20 18 a s c o m p a re d to 112.5 m illio n unit c a se s in Q 2 20 17
• Stro n g o rg a n ic v o lu m e g ro w th tre n d ha s c o n tin u e d in Ind ia a t 12.6% in Q 2 20 18 a n d o rg a n ic v o lu m e g ro w th o f 9 .8 % o n a c o n so lid a te d

b a sis. C SD c o n stitu te d 78%, Ju ic e - 8 % a nd Pa c ka g e d D rinkin g w a te r - 14% o f to ta l sa le s v o lu m e s in Q 2 20 18

• G ro ss m a rg in s e xp a n d e d 137 b p s Yo Y to 53 .4 % o n a c c o u n t o f b e n e fits re a lize d fro m re d u c tio n in su g a r p ric e s w h ic h is p a rtia lly o ffse t b y

in c re a se in re sin p ric e s. Th e re is no c h a n g e in c o n c e n tra te c o st d u rin g the c u rre n t p e rio d

• EBITD A in c re a se d b y 19.6% to Rs. 5,749 m illio n in Q 2 20 18 fro m Rs. 4,805 m illio n in Q 2 20 17; u n d e rlyin g m a rg in s ha ve im p ro v e d in e xistin g

a n d re c e n tly a c q u ire d te rrito rie s

• Ble nd e d EBITD A m a rg in s d e c lin e d 150 b p s Yo Y to 2 7 .9 % d u e to su b -o p tim a l v o lu m e s/ m a rg in s in a c q u ire d su b -te rrito rie s a n d c o n trib u tio n

fro m the Tro p ic a n a ju ic e p o rtfo lio , w h e re a t p re se n t V BL ha s o n ly a su p p ly a n d d istrib u tio n a rra n g e m e n t, a n d no t m a n u fa c tu rin g it

• PA T in c re a se d b y 2 4 .9 % to Rs. 3,0 6 8 m illio n in Q 2 20 18 fro m Rs. 2,45 6 m illio n in Q 2 2 0 1 7 o n the b a c k o f ro b u st v o lu m e g ro w th in Ind ia a nd

stro n g v o lu m e s in Zim b a b w e o p e ra tio n s sin c e b e g in n in g in M a rc h 20 18

• D e p re c ia tio n ha s in c re a se d d u rin g th e q u a rte r o n a c c o u n t o f in -o rg a n ic e xp a n sio n a n d fin a n c e c o st ha s re m a in e d sta g n a n t w ith

m a rg in a l re d u c tio n in ne t d e b t

• In c re a se in o rg a n ic v o lu m e s a nd c o n so lid a tio n o f c o n tig u o u s te rrito rie s a re g ra d u a lly b rin g in g in o p e ra tio n a l e ffic ie n c ie s

D is c u s s io n o n Fin a n c ia l & O p e ra tio n a l Pe rfo rm a n c e

• Ne t d e b t sto o d a t Rs. 2 0 ,9 4 7 m illio n a s o n June 30, 20 18 a s a g a in st Rs. 22 ,22 5 m illio n a s o n Ju n e 30, 2 0 1 7 re su ltin g in ne t re d u c tio n o f Rs.

1,278 m n. D e b t: Eq u ity ra tio sto o d a t 1.0x a n d D e b t: EBITD A ra tio sto o d a t 2 .1 x a s o n Ju n e 30, 20 18

• C RISIL (an S&P G lo b a l C o mp any) ha s re ta in e d the c re d it ra tin g fo r lo ng te rm d e b t a s C RISIL A A - a n d fo r sh o rt te rm d e b t a s C RISIL A1 +

• Du ring the p e rio d Ju l'1 7 - Ju n ' 18, a c q u isitio n o f 5 n e w su b -te rrito rie s in Ind ia (~ Rs. 2,90 0 m n), ne w p la n t se t-u p in Ne p a l (~ Rs. 1,300 m n),

e n try in to ne w g e o g ra p h y - Zim b a b w e (~ Rs. 1,400 m n) a n d o rg a n ic c a p e x (~ Rs. 2,000 m n) h a ve a ll b e e n m a d e th ro ug h in te rn a l a c c ru a ls

• D e sp ite ro b u st v o lu m e g ro w th , c a p a c ity u tiliza tio n d u rin g the p e a k m o n th re m a in e d u n d e r 70%, p ro v id in g sig n ific a n t sc o p e fo r g ro w th
• n e xistin g in v e stm e n ts

• W o rkin g c a p ita l d a ys h a ve c o m e d o w n to ~ 13 d a ys a s o n June 30, 20 18 o n a c c o u n t o f e ffic ie n t w o rkin g c a p ita l m a n a g e m e n t e ve n

a fte r c o n so lid a tio n o f 5 ne w su b -te rrito rie s in In d ia d u ring the p e rio d

• In v e n to ry a n d d e b to r d a ys ha ve re m a in e d sta b le e v e n w ith in c re a se in ne t re v e n u e s a n d n u m b e r o f p ro d u c tio n fa c ilitie s.

I n line w ith th e g u id e lin e s o f d iv id e n d p o lic y, the Bo a rd o f D ire c to r's ha ve re c o m m e n d e d a n inte rim d iv id e n d o f Rs. 2.5 p e r sh a re . To ta l c a sh o u tflo w w o u ld b e ~ Rs. 550.5 m n (in c lu siv e o f sta tu to ry ta xe s p a ya b le ).

Ba la n c e Sh e e t

(a ) Eq u ity sh a re c a p ita l 1,826.15 1,825.87 1,825.10 (b ) O th e r e q u ity 19,199.80 15,868.41 16,717.39 (c ) No n -c o n tro llin g in te re st 30.20 (14.32) (12.95)

(a ) Fin a n c ia l lia b ilitie s (i) Bo rro w in g s 15,515.34 16,869.95 13,951.64 (ii) O th e r fin a n c ia l lia b ilitie s 45 .27 45.98 55 5.53 (b ) Pro visio ns 96 6.6 5 732.64 732.70 (c ) D e fe rre d ta x lia b ilitie s (Ne t) 1,749.79 1,501.51 241.35 (d) O th e r n o n -c u rre n t lia b ilitie s 73.83 73.83 1,316.30

(a ) Fin a n c ia l lia b ilitie s (i) Bo rro w in g s 3,48 7.44 3,533 .65 3,712 .56 (ii)Tra d e Pa ya b le s 4,149 .79 1,909.46 3,040 .58 (iii)O th e r fin a n c ia l lia b ilitie s 6,593 .35 8,781 .33 8,922 .15 (b ) O th e r c u rre n t lia b ilitie s 3,04 5.05 1,471.92 1,822.24 (c ) Pro v isio ns 278.01 167.50 147.45 (d) C u rre n t ta x lia b ility 92 0.5 4 68.35 705.09

(a ) Pro p e rty, p la n t a n d e q u ip m e n t (b ) C a p ita l w o rk in p ro g re ss (c ) G o o d w ill (d) O th e r in ta n g ib le a sse ts 38 ,63 4.4 2 482.35 30.60 4,910 .88 35 ,41 1.6 6 1,454.38 19.40 4,374 .15 35 ,77 7.2 4 1,080.61 3,5 8 4 .8 7 (e ) In v e stm e n t in a sso c ia te s 99.82 82.23 76.65 (f) Fin a n c ia l a sse ts 21 4.13 20 1.19 121.96 (g ) D e fe rre d Ta x A sse ts (Ne t) 165.39 80.04 72.11 (h) O th e r n o n -c u rre n t a sse ts 1,157.50 1,525.85 1,054.86

(a ) In ve n to rie s 5,651 .25 4,388 .94 4,966 .96 (b ) Fin a n c ia l a sse ts (i)Tra d e re c e iv a b le s 2,180 .1 7 1,502.45 2,379 .6 2 (ii)C a sh a n d c a sh e q u iv a le n ts 1,116.50 649.46 84 5.3 2 (iii)O th e r b a n k b a la n c e s 14.21 295.14 33 1.3 5 (iv) O the rs 1,642.71 933.63 44 7.0 6 (c ) C u rre n t ta x a sse ts (Ne t)

• 0.13

0.77 (d) O th e r c u rre n t a sse ts 1,221.96 1,532.48 2,578 .43

A sse ts he ld fo r sa le 359.32 384.95 35 9.3 2

Pro fit & Lo ss Sta te m e n t

Yo Y (%)

1. In c o m e (a ) Re ve nu e fro m o p e ra tio n s (re fe r slid e -14) 20 ,97 1.4 6 19,340.07 8.4% 32 ,19 5.1 9 29 ,84 8.9 4 7.9% (b ) O th e r in c o m e _ 3.47 46.71

• 9 2 .6 % _

85.11 182.03

• 5 3 .2 %

• 2. Exp e n se s

(a ) C o st o f m a te ria ls c o n su m e d 8,16 3.95 7,302.34 11.8% 13,952.19 12,066.23 15.6% (b ) Exc ise d u ty 38 0.15 3,00 6.12

• 8 7 .4 %

65 6.18 4,723 .02

• 8 6 .1 %

(c ) Pu rc h a se o f sto c k-in -tra d e 563.22 110.68 4 0 8 .9 % 96 3.0 7 180.87 4 3 2 .5 % (d) C h a n g e s in in v e n to rie s o f FG , W IP a n d sto c k-in -tra d e 86 1.28 416.51 106.8% (410.85) (416.51)

• 1 .4 %

(e ) Em p lo ye e b e n e fits e xp e n se 1,510.65 1,171.18 2 9 .0 % 2,896 .86 2,271 .16 2 7 .5 % (f) Fin a n c e c o sts 517.64 51 3.3 7 0.8% 1,116.81 1,079.48 3 .5 % (g ) D e p re c ia tio n a n d a m o rtisa tio n e xp e n se 1,000.43 907.04 10.3% 1,911.03 1,707.85 11.9% (h) O th e r e xp e n se s _ 3,74 3.63 2,52 8.24 4 8 .1 %_ 6,662.22 4,846.81 37 .5 %

• 3. Pro fit/ (lo ss) b e fo re ta x a n d sh a re o f p ro fit in a sso c ia te (1-2)

4,23 3.98 3,431 .3 0 23 .4 % 4,532 .79 3,572 .06 26 .8 %

• 4. Sh a re o f p ro fit in a sso c ia te

6.65 5.78 15.0% 17.59 7.93 121.8%

• 5. Pro fit/ (lo ss) b e fo re ta x (3+4)

4,24 0.63 3,437 .0 8 2 3 .4 % 4,550 .3 8 3,579 .99 2 7 .1 %

• 6. Ta x e xp e n se

_ 1,172.74 981.24 19 .5%_ 1,285.11 1,055.21 21 .8 %

• 7. N e t p ro fit/ ( lo s s ) fo r th e p e rio d ( 5 - 6 )

No te : Give n the se a so na lity in the b usine ss, it is b e st to mo nito r the b usine ss o n an annual b asis as a sig nific ant po rtio n o f the re ve nue s are re alize d in the Apr-June q ua rte r

G ST Im p a c t o n Sa le s fro m O p e ra tio n s

C o nse q ue nt to the intro d uc tio n o f G o o d s a nd Se rvic e Ta x (G ST ) w ith e ffe c t fro m July 01, 2017, C e ntra l Exc ise , Va lue A d d e d Ta x (VAT ), e tc . ha ve b e e n sub sum e d into G ST . I n a c c o rd a nc e w ith Ind ia n A c c o unting Sta nd a rd - 18 o n Re ve nue a nd Sc he d ule I I I

• f the C o m p a nie s Ac t, 2013, unlike Exc ise Dutie s, le vie s like G ST

, VAT , e tc . d o no t fo rm p a rt o f Re ve nue . A c c o rd ing ly, the fig ure s fo r the p e rio d up to June 30, 2017 a re no t stric tly c o m p a ra b le to tho se the re a fte r w hic h w e re g ro ss o f e xc ise d uty. T he fo llo w ing a d d itio na l info rm a tio n is b e ing p ro vid e d to fa c ilita te suc h und e rsta nd ing :

(Rs. m illio n ) Q 2 2 0 1 8 * Q 2 2 0 1 7 C h a n g e H1 2 0 1 8 * H1 2 0 1 7 C h a n g e

G ro ss sa le s/ inc o m e fro m o p e ra tio ns (A) 20,971.5 19,340.1 8.4% 32,195.2 29,848.9 7.9% Exc ise d uty o n sa le (B ) 380.2 3,006.1

• 87.4%

656.2 4,723.0

• 86.1%

N e t sa le s fro m o p e ra tio n s (A - B) 2 0 ,5 9 1 .3 1 6 ,3 3 4 .0 2 6 .1 % 3 1 ,5 3 9 .0 2 5 ,1 2 5 .9 2 5 .5 %

EBIT DA 5,748.6 4,805.0 19.6% 7,475.5 6,177.4 21.0% Ne t p ro fit fo r the p e rio d 3,067.9 2,455.8 24.9% 3,265.3 2,524.8 29.3%

No te : *Exc ise duty ha s b e e n me rg e d with G ST fro m Q3 2017 o nwa rds in I

• ndia. C urre nt num b e r is p e rta ining to e xc ise duty a nd o the r sim ila r

ta xe s in jurisd ic tio n o the r tha n I ndia

• Rs. m illio n
• Rs. m illio n

Fin a n c ia l Hig h lig h ts ( 2 0 1 3 - H1 2 0 1 8 )

m i l

I

. m i

c

• V )

C

• V )

• 3 95

No te : 1 . Histo ric ally, till 2015, in de b t e q uity ratio c alc ulatio n, C C D’s issue d to Private Eq uity I nve sto rs we re c o nside re d as Eq uity and de fe rre d ac quisitio n c o nside ratio n to Pe psiCo was e xc lude d fro m the de bt. F ro m the ye ar 2016, CCDs o f private e q uity inve sto rs are c o nve rte d into e q uity and inte re st fre e de fe rre d ac quisitio n c o nside ratio n to Pe psiCo has b e e n c o nside re d in to tal de bt. 2. 2017 o nwards financ ials are as p e r I nd AS and pre vio us ye ar numb e rs are as p e r I GAAP

O u tlo o k

• to

• p e ra tio n s in In d ia

• p p o rtu n itie s in So u th

• n

• ffe r

• p e ra tio n s p ro c e sse s

C o n fe re n c e C a ll D e ta ils

V a ru n Be v e ra g e s Lim ite d ( V BL) Q 2 & H1 C Y 2 0 1 8 Ea rn in g s C o n fe re n c e C a ll

• 4 :0 0 p m IS T o n Th u rs d a y ,A u g u st 0 9 , 2 0 1 8

• + 9 1 2 2 6 2 8 0 1141 / + 9 1 2 2 7 1 1 5 8 0 4 2

• + 9 1 7 0 4 5 6 7 1 2 2 1

• Sing a p o re : 8 0 0 101 2 0 4 5
• U K : 0 8 0 8 101

• U SA : 1

A b o u t Us

V a ru n Be v e ra g e s Lim ite d (VBL) is a ke y p la y e r in b e v e ra g e in d u stry a n d o n e o f th e la rg e st fra n c h ise e o f Pe p siC o in th e w o rld ( o u tsid e USA ). Th e C o m p a n y p ro d u c e s a n d d istrib u te s a w id e ra n g e o f c a rb o n a te d so ft d rin ks (C SD s), a s w e ll a s a la rg e se le c tio n o f n o n -c a rb o n a te d b e v e ra g e s (NC Bs), in c lu d in g p a c ka g e d d rin kin g w a te r so ld u n d e r tra d e m a rks o w n e d b y Pe p siC o . Pe p siC o C SD b ra n d s p ro d u c e d a n d so ld b y V BL in c lu d e Pe p si, D ie t Pe p si, Se v e n -Up , M irin d a O ra n g e , M irin d a Le m o n , M o u n ta in D e w , Se v e n -Up N im b o o z M a sa la So d a , Ev e rv e ss, Stin g , G a to ra d e a n d Slic e Fizzy D rin ks. Pe p siC o NC B b ra n d s p ro d u c e d a n d so ld b y th e C o m p a n y in c lu d e Tro p ic a n a Slic e , Tro p ic a n a Fru tz, Tro p ic a n a Ju ic e s (1 0 0 % , D e lig h t, Esse n tia ls) , N im b o o z, Q u a ke r V a lu e - A d d e d D a iry a s w e ll a s p a c ka g e d d rin kin g w a te r u n d e r th e b ra n d A q u a fin a . V BL h a s b e e n a sso c ia te d w ith Pe p siC o sin c e th e 1 9 9 0 s a n d h a v e o v e r tw o a n d h a lf d e c a d e s c o n so lid a te d its b u sin e ss a sso c ia tio n w ith Pe p siC o , in c re a sin g th e n u m b e r o f lic e n se d te rrito rie s a n d su b -te rrito rie s c o v e re d b y th e C o m p a n y , p ro d u c in g a n d d istrib u tin g a w id e r ra n g e o f Pe p siC o b e v e ra g e s, in tro d u c in g v a rio u s SKUs in th e p o rtfo lio , a n d e xp a n d in g th e d istrib u tio n n e tw o rk. A s o n d a te , V BL h a s b e e n g ra n te d fra n c h ise s fo r v a rio u s Pe p siC o p ro d u c ts a c ro ss 21 Sta te s a n d tw o Un io n Te rrito rie s in In d ia . In d ia is th e la rg e st m a rke t a n d c o n trib u te d ~ 7 5 % o f re v e n u e s fro m o p e ra tio n s (ne t) in Fisc a l 2 0 1 7 . V BL h a s a lso b e e n g ra n te d th e fra n c h ise fo r v a rio u s Pe p siC o p ro d u c ts fo r th e te rrito rie s o f N e p a l, Sri La n ka , M o ro c c o , Za m b ia a n d Zim b a b w e .

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