Som Distilleries & Breweries Limited has informed the Exchange about Investor Presentation

SOM DISTILLERIES AND BREWERIES LIMITED Registered Office: I-A, Zee Plaza, Arjun Nagar, Safdarjung Enclave, Kamal Cinema Road, New Delhi - 110029 Phone: +91-11-26169909, 26169712 Fax: +91-11-26195897 Corporate Office: SOM House, 23, Zone II, M.P. Nagar, Bhopal, Madhya Pradesh – 462011 Phone: +91-755-4278827, 4271271 Fax: +91-755-2557470 Email : compliance@somindia.com Website: www.somindia.com CIN : L74899DL1993PLC052787 (BSE : 507514, NSE : SDBL)

SDBL/BSE/NSE/2022 To

21.07.2022

The Manager, Listing Department, NATIONAL STOCK EXCHANGE OF INDIA LIMITED ‘Exchange Plaza’ C-1, Block G, Bandra-Kurla Complex, Bandra (E), Mumbai-400 051. cmlist@nse.co.in Security ID: SDBL

Dy. General Manager, Department of Corporate Services, BSE LIMITED,

First Floor, P.J. Towers, Dalal Street, Fort, Mumbai – 400001. corp.compliance@bseindia.com Security ID: 507514

INVESTORS PRESENTATION

SUB: (STANDALONE AND CONSOLIDATED) FOR THE QUARTER ENDED 30TH JUNE, 2022

– UNAUDITED FINANCIAL RESULTS

Dear Sir/Madam,

In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed Investors Presentation on unaudited financial results (standalone and consolidated) for the quarter ended 30th June, 2022.

The same has also been uploaded on the Company’s website www.somindia.com.

This is for your information and records please.

SOM Distilleries & Breweries Limited (BSE: 507514, NSE: SDBL)

Earnings Presentation Q1 FY2023

Safe 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 SOM Distilleries & Breweries’ 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.

SOM Distilleries & Breweries undertakes no obligation to publicly revise any forward looking statements to reflect future / likely events or circumstances.

Conference Call Details: Friday, 22nd July 2021 at 3:00 PM IST Diamond Pass Primary Number The number listed above is universally accessible from all networks and all countries.

Link +91 22 6280 1106 / +91 22 7115 8007

Toll Free Number

USA: 1 866 746 2133 UK: 0 808 101 1573 Singapore: 800 101 2045 Hong Kong: 800 964 448

2

Highlights

Performance Highlights

Key Highlights: Q1 FY2023 vs Q1 FY2022

Beer Sales Volume

47.3 Lakh Cases +374%

Total Income

Rs. 2,561 mn +406%

IMFL Volume

1.9 Lakhs Cases 164%

EBITDA

Rs. 359 mn Margin: +14.0%

Net Debt / EBITDA

2.9x (Mar-2022: 10.2x)

PAT

Rs. 257 mn Margin: +10.0%

4

Performance Discussion

Key Discussion Themes: Q1 FY23

Volume and Sales

• Highest ever quarterly Beer Volumes; around 70% of 12M FY22 and ~60% of 12M FY2020 (pre-

pandemic year)

• Beer Revenue of Rs. 2,395 million; over 75% of 12M FY22 and over 60% of 12M FY2020 • Our mainline brands; Hunter, Black Fort and Power Cool, accounted for 56%, 50% and 62%,

respectively as compared to 12M FY2022

Realization

• Beer Realization for the quarter was Rs. 506 compared to Rs. 444 in Q1 FY22 and Rs. 462 in FY22;

primarily driven by higher mix of Hunter brand in total volumes

•

IMFL Realization for the quarter was Rs. 791 compared to Rs. 775 in FY22

Cost

• Cost efficiencies driven by better utilization resulted in improvement in margins • Anticipate some normalization on full year basis due to lower utilization in non-peak season • Lower expenses due to season led demand also supported the margin enhancements

5

Management Commentary

Since completion of our capex plan, Q1 FY23 was first ever season that we were able to fully capitalize, which is reflected in our stellar performance across all financial and operational metrics. This performance is also a testament to the quality of our product and aligned customer preferences as well as execution capabilities of our team.

During the quarter, despite the prevailing geo-political situation, we were able to report strong margin enhancement driven by various initiatives undertaken by the Company coupled with price hikes taken across our key markets. However, on full year basis, we expect some moderation due to lower utilization of our plants during lean months. On an annualized basis our Karnataka plant operated at peak levels during the quarter. Bhopal and Odisha plants operated at around 70% utilization levels.

We believe the long-term equity story of SOM remains intact. We also remain committed towards enhancing our utilization level across our plants to support robust cash generation and enhancing shareholders wealth.

Mr. JK Arora, Chairman (SOM Group of Companies)

6

Financial Highlights

Performance Highlights

(Rs. Million)

FY2023

FY2022

Growth (%)

FY2022

FY2021

Growth (%)

Q1

Y-o-Y

12 Months

Y-o-Y

Total Income

Gross Profit

Margin (%)

EBITDA

Margin (%)

Interest

Depreciation

Net Profit

Margin (%)

2,561

1,116

43.6%

359

14.0%

35

42

257

10.0%

506

236

46.6%

(57)

nm

40

42

(138)

nm

405.6%

373.2%

nm

(11.9)%

1.1%

nm

3,655

1,581

43.3%

196

5.4%

154

168

(98)

nm

2,901

1,247

43.0%

(70)

nm

187

134

(381)

nm

26.0%

26.8%

nm

(17.7)%

25.5%

nm

8

Leverage Profile

(Rs. Million)

Jun 30 2022

Mar 31 2022

Dec 31 2021

Secured Borrowings

1,226

1,393

1,369

Unsecured Borrowings

576

580

582

Gross Debt-Consolidated

1,803

1,973

1,951

Less: Cash & Cash Equivalents

84

95

135

Net Debt

1,718

1,878

1,816

Gross Debt / Equity (x)

0.6x

0.7x

0.7x

Net Debt / LTM EBITDA (x)

2.9x

10.2x

11.5x

• Gross Debt reduced by Rs. 171 million

and Net Debt reduced by Rs. 160 million

• Significant improvement in leverage

ratios

• Net Debt to LTM EBITDA of 2.9x

compared to 10.2x as on 31st Mar 2022

• No major capex planned in the short

term

• Strong cash flow generation and

deleveraging balance sheet remain key strategic priority

9

Operational Highlights

Volume Summary

Q1

Y-o-Y

12 Months

Y-o-Y

Lakh cases

FY2023 FY2022

Growth (%)

FY2022 FY2021

Growth (%)

Hunter

20.0

5.0

301%

24.8

22.4

10%

Black Fort

7.2

2.0

254%

12.0

10.6

13%

Power Cool

19.4

2.8

598%

27.9

15.9

75%

• Recorded best ever Q1 Beer Volumes; driven by

strong growth across mainline brands

• Power Cool recorded 7x volume compared to same period last year driven by enhanced penetration in additional market in Karnataka and Kerala

• Woodpecker beer continued to consolidate its market presence and sold around 60,000 cases in Q1 FY22, around 45% of FY22 volumes

• Beer accounted for 96% of total volumes and 94%

Others

0.7

0.2

276%

3.7

1.9

98%

of the revenue during Q1 FY23

Total Beer

47.3

10.0

374%

68.3

50.8

35%

Total IMFL

1.9

0.7

164%

5.7

7.7

(26)%

• Price realization for Beer during Q1 FY23 was Rs. 506 and IMFL was Rs. 791; blended realization at Rs. 517

11

Millionaire Beer Brands – Volume Recovery

) s e s a c h k a l n i ( d l o S y t i t n a u Q

5.0

6.0

4.8

8.9

Q1 FY2022

Q2 FY2022

Q3 FY2022

Q4 FY2022

Q1 FY2023

20.0

2.0

2.7

3.2

7.2

4.1

Q1 FY2022

Q2 FY2022

Q3 FY2022

Q4 FY2022

Q1 FY2023

2.8

4.4

7.2

Q1 FY2022

Q2 FY2022

Q3 FY2022

Q4 FY2022

Q1 FY2023

19.4

13.4

12

Sustainability

Environment: Committed to minimizing environmental impact across the full range of our operations

Clean Technology •

Seeks to improve its environmental performance by adopting cleaner production methods, promotion of energy efficient and environmental friendly technologies

•

Suitable processes and systems are developed with contingency plans and processes that help in preventing, mitigating and controlling environmental damages caused due to the Company’s operations

Waste Reduction • Recycle part of the factory waste and reuse it in the production

•

Initiated waste management by re-cycling waste into compost used for agriculture

• Deployed sewage treatment plants at its projects and factory sites which treat and re-cycle wastewater for reusing in

watering plants, toilets etc

GHG Reduction •

Strive to reduce the carbon footprint by recycling the beer and IMFL bottles used for production

• Majority of suppliers of raw material are in proximity of the factory sites of the Company which helps minimize

transportation and reduces carbon footprint

SOM Distilleries & Breweries ESG Profile Link: https://bit.ly/364ur49

14

Social: Actively contributing to the social, economic and environmental development of the community in which we operates

Product Quality • Providing the best quality products and services to its consumers. SOM provides high-quality product assurance by -

o Maintaining international standards and specifications for its products

o Continuous research to enhance product quality, building facilities for quality monitoring and assurance

o Developing new products to meet the ongoing and changing requirements of the market

Customer Centric Approach • Periodical consumer surveys and mapping of customer satisfaction trends are considered and utilised by the Company

on a regular basis as effective tools of business strategy to understand the customers and their needs better

•

In addition, through the Company’s website tab, customer’s views are invited to understand the satisfaction level and trend

Community Support •

Contributions to the Asha Mohan Foundation for construction of a full-fledged diagnostic centre for the lesser privileged patients at substantial lower charges for tests as compared to conventional centres

•

Contributions to the school being run for underprivileged children and hospitals

SOM Distilleries & Breweries ESG Profile Link: https://bit.ly/364ur49

15

Governance: With strong sense of values and commitment, we believe that profitability must go hand in hand with a responsibility

Experienced and Skilled Board of Directors • Optimal blend of Executive and Non-Executive Directors with an appropriate balance of skills, experience, diversity

and independence. The Board of Company comprised of six (6) Directors:

o 2 Executive Directors ( including Managing Director)

o 4 Non- Executive Non-Independent Directors

Regular Self-Assessment of Board Performance • The Board have process in place for the annual performance evaluation of its own performance, the Directors

individually as well as the evaluation of the working of its various committees

• A structured questionnaire was prepared after taking into consideration inputs received from the Directors, covering various aspects of the Board’s functioning such as adequacy of the composition of the Board and its Committee, Board Culture, execution and performance of specific duties, obligations and governance

SOM Distilleries & Breweries ESG Profile Link: https://bit.ly/364ur49

16

Company Profile

SOM Distilleries: The only listed Beer and IMFL company in India

•

•

SOM Distilleries & Breweries Limited (SDBL) is based in Bhopal and is one of the leading alcoholic beverages manufacturers in India

SDBL is primarily engaged in production of beer and blending and bottling of IMFL

• Offers a broad line of products at every price point to cater to varied preferences of the consumers. The product portfolio consists of various options across beer, rum, brandy, vodka and whisky

• The Company has three key millionaire brands (sales more than 1 mn

cases per annum) – Hunter, Black Fort and Power Cool

•

Launched Woodpecker Wheat Beer, India’s first filtered wheat beer in FY2020

• New products introduced with seasonal themes to increase consumer traction and engagement – Hunter Pint Beer and different flavors of RTD drinks

s d n a r B r e e B

s d n a r B L F M

I

18

Compelling Investment Rationale

• Only listed company in India having both Beer and IMFL, which complement each other and reduces the risk of

seasonality while providing marketing efficiencies

•

•

•

Strong portfolio of brands including millionaire brands, Hunter, Black Fort and Power Cool

Continuous product innovations to capitalize on seasonal themes and enhance consumer traction and engagement

Launched Woodpecker Wheat Beer, India’s first filtered wheat beer in FY2020; the brand has created significant traction in very short period and is expected to gain further momentum

• The Company commands ~2% market share in the Indian beer market and has immense potential to grow the

market share by enhancing its penetration across India

•

Focus on enhancing brand presence through CSD and market expansion in states such as Uttar Pradesh and Delhi in addition to existing stronghold markets

• Expanded capacity provides headroom for volume growth in medium term

•

Lower penetration of beer and favorable demographic profile to provide huge scope for industry growth

19

SOM Distilleries & Breweries Limited (BSE: 507514, NSE: SDBL)

(CIN: L74899DL1993PLC052787)

Registered Office: Zee Plaza, 1 - A Kamal Cinema Road Arjun Nagar Safdarjung Enclave New Delhi 110029

Corporate Office: SOM HOUSE 23, Zone II Maharana Pratap Nagar, Bhopal 462011 Ph.: +91 755 427 8827

Nakul Sethi SOM Distilleries and Breweries

nksethi@somindia.in +91 755 4271271

Anvita Raghuram / Bijay Sharma Churchgate Partners

som@churchgatepartners.com +91 22 6169 5988