VBLNSE6 November 2023

Varun Beverages Limited has informed the Exchange about Investor Presentation

Varun Beverages Limited

November 6, 2023

To,

National Stock Exchange of India Ltd. Exchange Plaza, Block G, C/1, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Email: cmlist@nse.co.in Symbol: VBL

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street, Mumbai – 400 001 Email: corp.relations@bseindia.com Security Code: 540180

Sub: Regulation 30: Presentation on Unaudited Financial Results of the Company for

the Quarter and Nine Months ended September 30, 2023

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements)

Regulations, 2015, please find attached herewith a copy of the Presentation on Unaudited

Financial Results of the Company for the Quarter and Nine Months ended September 30, 2023.

The same is also being uploaded on website of the Company at www.varunbeverages.com.

You are requested to take the above on record.

Yours faithfully, For Varun Beverages Limited

Ravi Batra Chief Risk Officer & Group Company Secretary

Encl.: As above

November 6, 2023

(a PepsiCo franchisee)

Varun Beverages Limited

Q3 & 9M CY2023 Results Presentation

Disclaimer

(a PepsiCo franchisee)

This communication contains certain forward-looking statements relating to the business, financial performance,

strategy and results of Varun Beverages Limited (“VBL” or the “Company”) and/ or the industry in which it operates.

Such forward-looking statements involve a number of risks, uncertainties and assumptions which could cause actual

results or events to differ materially from those expressed or implied by the forward-looking statements. These

include, among other factors, changes in economic, political, regulatory, business or other market conditions.

Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary

undertakings or any such person’s officers or employees guarantees that the assumptions underlying such forward-

looking statements are free from errors nor does either accept any responsibility for the future accuracy of the

forward-looking statements contained in this presentation or

the actual occurrence of

the forecasted

developments. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking

statements, on the basis of any subsequent developments,

information or events, or otherwise. Given these

uncertainties and other factors, viewers of this communication are cautioned not to place undue reliance on these

forward-looking statements.

Table of Contents

(a PepsiCo franchisee)

Company Overview

Chairman’s Message

Q3 & 9M CY2023 Results Overview

Performance Highlights

Sustainability Initiatives

Company Snapshot

 Key player in the beverage industry

(a PepsiCo franchisee)

 Operations spanning across 6 countries – 3 in the Indian Subcontinent (India, Sri Lanka, Nepal) contribute ~85% to revenues; 3 in Zimbabwe) Africa contribute ~15% for fiscal year 2022

(Morocco,

Zambia,

 Over 31 years

strategic association with PepsiCo – accounting for ~90%+ of PepsiCo’s beverage sales volume in 27 States and 7 UTs in India territory

Total Sales Volumes (mn Cases*)

2018-2022: Sales Volume CAGR: ~24%

493

404

425 88

337

340 66 274

569

115

454

802

149

758

134

653

624

2018

2019

2020

2021

2022 9M 2023

India

International

* Mfg. plant at DRC is under construction.

Note: *A unit case is equal to 5.678 liters of beverage divided in 24 bottles of ~ 237 ml each

Brands Licensed to VBL

Brands licensed by PepsiCo:

Carbonated Soft Drinks

Energy Drink

Club Soda

Carbonated Juice Based Drinks

Fruit Pulp / Juice Based Drinks

Ice Tea

Sports Drink

Packaged Water

(a PepsiCo franchisee)

Dairy Based Beverages*

Mango Shake

Belgian Choco

Elaichi

Cold Coffee

Kesar Badam

* Note: “CreamBell” trademark, an established brand, has been licensed to be used by VBL for ambient temperature value added dairy based beverages.

Symbiotic Relationship with PepsiCo

(a PepsiCo franchisee)

VBL – Demand Delivery

 Production Facilities

31 yrs + Association

PepsiCo – Demand Creation

 Trademarks

 Sales & Distribution – GTM & Logistics

 Formulation through Concentrate

 In-outlet Management – Visi-Coolers

 Consumer Push Management

(BTL)

- Market Share Gains

~90%+ of PepsiCo India Sales Volume

 Product & Packaging innovation

through investment in R&D

 Consumer Pull Management (ATL) -

Brand Development

Key Player in the Beverage Industry – Business Model

(a PepsiCo franchisee)

N A H C E U L A V S S O R C A N O I T U C E X E D N E - O T - D N E

- L B V

MANUFACTURING

Concentrate (PepsiCo)

Other Raw Materials

Bottling

 39 state-of-the-art production facilities (33 in India &

6 in International territories)

SOLID INRASTRUCTURE

DISTRUBUTION & WAREHOUSING

 110+ depots  2,400+ primary distributors  2,500+ owned vehicles

ROBUST SUPPLY CHAIN

CUSTOMER MANAGEMENT

 Installed 925,000+ visi-coolers  VBL - local level promotion and in-store activation  PepsiCo - brand development & consumer marketing

DEMAND DELIVERY

IN-MARKET EXECUTION

 Experienced region-specific sales team  Responsible for category value/volume growth  Responsible for reaching out to every 6th person in the world

MARKET SHARE GAINS

COST EFFICIENCIES

CASH MANAGEMENT

 Production optimization  Backward integration (3 plants)  Innovation (packaging etc.)

 Working capital efficiencies  Disciplined capex investment  Territory acquisition

MARGIN EXPANSION

ROE EXPANSION / FUTURE GROWTH

Chairman’s Message

(a PepsiCo franchisee)

Commenting on the performance for Q3 and 9M CY2023, Mr. Ravi Jaipuria, Chairman – Varun Beverages Limited said:

“We are pleased to report a robust quarter, achieving a top-line growth of 22% and a PAT growth of 30% YoY. Demonstrating remarkable resilience, our consolidated sales volumes registered a solid growth of 15% making a strong comeback following the unseasonal rains in Q2 CY2023 in India. Both our Indian and international markets contributed to this achievement with a healthy double-digit growth.

We have achieved notable progress on the operational front by making significant investments to develop both greenfield and brownfield manufacturing facilities throughout India. In addition, our greenfield facility in DRC is progressing well and is slated to be commissioned in the upcoming months. These strategic efforts are tailored to meet the rising consumption and to capture untapped market opportunities. As part of our commitment to diversifying and enhancing our portfolio, we are also enhancing our capacity for juices and value-added dairy beverages to align with evolving consumer demands.

As part of our long-term vision and in line with PepsiCo’s global PEP+ objectives, we remain committed to sustainability and environmental stewardship. We are making investments that emphasize using impact. green energy as well as reuse of PET which will be instrumental These endeavors are aligned with our pledge to the environment and reflect our ambition to nurture a greener future.

in mitigating environmental

Given India's dynamic demographic landscape, marked by a burgeoning young population and evolving consumption patterns, we believe the Indian beverage market offers a monumental growth opportunity for the decades ahead. As we intensify our foothold in India and expand our reach in Africa, our strategic initiatives are aimed towards strengthening our position in the global beverage industry.”

Key Developments

Credit Rating Upgrade

(a PepsiCo franchisee)

• CRISIL (an S&P Global Company) has reaffirmed the companies long-term rating for bank loan

facilities as CRISIL AA+/Stable.

Acquisition of stake in Lunarmech Technologies Private Limited

• The Company on 16 October 2023, has acquired 5.03% shareholding in Lunarmech Technologies Private Limited for a purchase consideration of Rs. 100 million. Post acquisition, the Company is holding 60.07% of the effective equity share capital of Lunarmech Technologies Private Limited.

Results Overview

Net Sales

22.0%

1,33,749

1,09,589

n m

. s R

21.8%

31,766

38,705

EBITDA

28.6%

n m

. s R

26.2%

6,990

22.0%

8,821

22.8%

31,912

23.9%

n m

. s R

24,806

22.6%

30.0%

3,955

5,141

(a PepsiCo franchisee)

PAT

33.3%

19,581

14,686

Q3 2022 Q3 2023

9M 2022

9M 2023

Q3 2022 Q3 2023

9M 2022

9M 2023

Q3 2022 Q3 2023

9M 2022

9M 2023

Quarterly Sales Volumes (Category-wise mn unit cases)

112 mn

17.8%

132 mn

24.7%

224 mn

180 mn

300 mn

4.6%

314 mn

15.4%

220 mn

190 mn

400

300

200

100

Q4 2021

Q4 2022

Q1 2022

Q1 2023

Q2 2022

Q2 2023

Q3 2022

Q3 2023

Period

Q4 2021

Q4 2022

Q1 2022

Q1 2023

Q2 2022

Q2 2023

Q3 2022

Q3 2023

CSD

Juice

Water

61%

34%

65%

126

70%

160

71%

219

73%

232

74%

133

70%

159

72%

30%

23%

22%

18%

19%

25%

23%

Consolidated Profit & Loss Statement

Particulars (Rs. million)

1.Income

(a) Revenue from operations

(b) Excise Duty

Net Revenues

2. Expenses

(a) Cost of materials consumed

(b) Purchase of stock-in-trade

(d) Employee benefits expense

(e) Finance costs

Q3 2023

Q3 2022

YoY(%)

9M 2023

9M 2022

YoY (%)

(a PepsiCo franchisee)

39,377.56 32,483.05

21.2%

135,900.81 111,333.57

22.1%

672.41

716.85

-6.2%

2,151.89

1,744.50 23.4%

38,705.15 31,766.20

21.8%

133,748.92 109,589.07

22.0%

185.06

106.19

74.3%

702.43

296.04 137.3%

16,347.36 14,620.43

11.8%

58,177.72

52,291.97

11.3%

1,098.10

373.42 194.1%

3,605.06

1,462.10 146.6%

(148.42)

(280.87)

3,715.52

3,112.08

47.2%

19.4%

697.15

(820.88)

-184.9%

10,752.78

8,967.08 19.9%

625.00

452.85

38.0%

1,944.40

1,386.38 40.3%

(f) Depreciation, amortisation and impairment expense

1,708.08

1,531.39

11.5%

5,149.34

4,375.31 17.7%

(g) Other expenses

Total expenses

EBITDA

8,871.19

6,951.28

27.6%

28,604.23

22,882.80

25.0%

32,216.83 26,760.58

20.4%

108,930.68

90,544.76

20.3%

8,821.40

6,989.86

26.2%

31,911.98

24,806.00

28.6%

3. Profit before share of loss of associate and joint venture (1-2)

6,673.38

5,111.81

30.5%

25,520.67

19,340.35

32.0%

4. Share of loss of associate and joint venture

(4.21)

(6.87)

5. Profit before tax (3+4)

6. Tax expense

7. Net profit after tax (5-6)

6,669.17

5,111.81

30.5%

25,513.80

19,340.35

31.9%

1,528.60

1,156.96

32.1%

5,933.29

4,654.45 27.5%

5,140.57

3,954.85

30.0%

19,580.51

14,685.90

33.3%

Discussion on Financial & Operational Performance

(a PepsiCo franchisee)

Sales Volumes / Net Revenues

• Consolidated sales volume grew by 15.4% to 220 million cases in Q3 CY2023 from 190 million cases in Q3 CY2022 led by double digit growth in both Indian (14.8% growth) & International (17.5% growth) markets. Volume growth in India bounced back strongly after the unseasonal rains in Q2 CY2023

• Net Revenue from operations grew by 21.8% YoY in Q3 CY2023 to Rs. 38,705 million driven by an increase in realization per case primarily

in International markets.

• Net realization per case increased by 5.6% to Rs. 176.3 driven by an increase in realization per case primarily in International markets.

• CSD constituted 72%, JBD 5% and Packaged Drinking Water 23% in Q3 CY2023.

Gross Margins / EBITDA

• Gross margins during the quarter improved by 163 bps to 55.3% from 53.7% primarily because of softening of PET chips prices.

• EBITDA increased by 26.2% to Rs. 8,821.4 mn and EBITDA margins improved by 79 bps to 22.8% in Q3 CY2023 driven by higher gross

margins and operational efficiencies.

PAT

• PAT increased by 30.0% to Rs. 5,140.6 million in Q3 CY2023 from Rs. 3,954.8 million in Q3 CY2022 driven by growth in revenue from

operations and improvement in margins.

• Depreciation increased by 11.5% and Finance cost increased by 38.0% in Q3 CY2023 on account of capitalization of assets and setting-

up of new production facilities.

Performance Highlights (CY2018 – CY2022 & 9M CY2023)

(a PepsiCo franchisee)

PAT

PAT Margins

19,581

15%

15,501

11.8%

14.6%

10%

REVENUE

PAT

CAGR (2018-22) – 26.7%

Revenue

CAGR (2018-22) – 50.8%

n m

. s R

71,296

64,501

51,053

88,232

1,31,731 1,33,749

n m

. s R

20,500

17,000

13,500

10,000

6,500

3,000

-500

2,999 5.9%

4,722

6.6%

3,573

5.5%

7,461

8.5%

2018

2019

2020

2021

2022

9M 2023

2018

2019

2020

2021

2022

9M 2023

EBITDA

NET WORTH

CAGR (2018-22) – 35.1%

EBITDA

EBITDA Margins (%)

CAGR (2018-22) – 26.9%

Net Worth

Net D/E

n m 30,000 . s R 25,000 20,000 15,000 10,000 5,000 0

14,477

12,019

20.3%

18.6%

10,066

19.7%

31,912

27,881

16,546

21.2%

23.9%

18.8%

n m

. s R

70,000 60,000 50,000 40,000 30,000 20,000 10,000 0

30%

25%

20%

15%

10%

2018

2019

2020

2021

2022

9M 2023

66,226

52,155

41,967

0.7

0.5

33,591

35,888

20,063

1.3

1.0

0.8

5.0

4.0

3.0

2.0

1.0

0.0

2018

2019

2020

2021

2022

H1 2023

Sustainability Initiatives - Water Stewardship

Parameter (mn KL)

CY2020

CY2021

CY2022

Water Recharge Ratio#

Fresh Water Usage Details:

Certified

2.72

Total water consumption (A)

Beverage production (B)

3.74

1.95

4.86

2.57

6.32

3.73

Water Usage Ratio (A/B)

1.92 times

1.89 times

1.70 times

Water recharge (C)

10.19

11.10

12.79

Water recharge ratio (C/A)

2.72 times

2.28 times

2.02 times

2.28

Target min. 2.00

2.02

(a PepsiCo franchisee)

Water Usage* Ratio(WUR)*

1.92

1.89

1.70

Target

1.60

# ponds/check-dams adopted

108

110

116

2020

2021

2022

2025

2020

2021

2022

2025

CY22 data certified by Deutsch Quality Systems (India) Private Limited. Previous years are certified by TUV India Private Ltd.

# Total water recharged per litre of water consumed

* Litres of water consumed per litre of beverage produced

• Key water conservation initiatives

included rain water harvesting, ponds adoption, development & maintenance, waste water management on the principles of Reduce, Reuse and Recycle, for optimal water consumption.

• Our efforts towards water recharge continued however, sales in CY20 & CY21 declined due to COVID-19

volumes pandemic resulting in better water recharge ratio.

• Scope covered all manufacturing plants in India. • 100% of the water discharged from our manufacturing operations goes to effluent treatment plants that ensure sufficient quality of discharged water.

• 21 plants of VBL contributing to ~68% of

the total production in CY22 fall in the “Safe” category of Central Ground Water Authority of India or use surface water.

Sustainability Initiatives – Plastic Waste Management

Weight Reduction of Pre-forms (grams)

7 . 4 3

7 . 0 3

1 . 7 2

5 . 5 2

2 . 2 2

5 . 2 5

7 . 0 5

0 . 7 4

0 . 6 3

7 . 4 3

5 . 2 3

0 . 1 2

0 . 9 1

600 ml

750 ml

1.0 L

1.25 L

2.25 L

2010-14

2015-19

2020-22

Weight Reduction of Closures (grams)

5 1 . 3

5 7 . 2

5 3 . 2

0 7 . 1

0 5 . 1

5 3 . 1

CSD / Juice

Water

2010-14

2015-19

2020-22

Plastic usage reduction through light weighting of Preforms and Closures for PET bottles. Phase- wise implementation of certain SKUs is under process

(a PepsiCo franchisee)

Plastic Waste Recycling %

Target 100%

80%

66%

70%

Plastic Waste Recycling % = % of plastic waste recycled per kg of PET sold in finished products. Plastic waste includes PET, shrink film, plastic closures, labels & laminates post consumption

36%

2019

2020

2021

2022

2025

Certified by GEM Enviro Management Pvt. Ltd., a Delhi based Central Pollution Control Board (“CPCB”) recognized PRO (Producer Responsible Organization).

VBL has engaged with GEM Enviro Management Pvt. Ltd. implementation of 100% recycling of used PET bottles.

for phased

details,

For more refer https://varunbeverages.com/wp-content/uploads/2023/03/VBL-AR-2022- annualReport.pdf and the website - https://varunbeverages.com/sustainability/

annual

please

latest

our

report

Sustainability Initiatives - Climate Action

(a PepsiCo franchisee)

mn Kg CO2e

Grams / litre*

Reduction of Carbon emissions / litre

GHG Emissions

Scope 1

Scope 2

Scope 3

Total

CY 2020

CY 2022

CY 2020

CY 2022

26.84

129.11

534.76

690.70

51.94

224.45

580.42

856.81

14.01

67.39

279.14

360.54

13.93

60.20

155.67

229.80

* Grams / litre = Grams of CO2e emission per litre of beverage produced during the year

GHG emissions are certified by Deutsch Quality Systems (India) Private Limited (DQS India), an Internationally reputed independent field expert. Scope 1 and Scope 2 emissions are verified according to the requirements of ISO 14064-1.

(base year – 2020)

Achievement: ↓ 36% reduction in 2022 over base year Target: ↓ 50% reduction in 2030 over base year

For more details, please refer https://varunbeverages.com/wp- content/uploads/2023/03/VBL-AR-2022-annualReport.pdf and the website - https://varunbeverages.com/sustainability/

latest annual

to our

report

Conference Call Details

(a PepsiCo franchisee)

Varun Beverages Limited Q3 and 9M CY2023 Earnings Conference Call

Time

• Monday, November 6, 2023 at 2:30 PM IST

Conference dial-in Primary number

• +91 22 6280 1141 / +91 22 7115 8042

International Toll Free Number

• Hong Kong: 800 964 448

• Singapore: 800 101 2045

• UK: 0 808 101 1573

• USA: 1 866 746 2133

About Us

(a PepsiCo franchisee)

Varun Beverages Limited (“VBL” or the “Company”) is a key player in beverage industry and one of the largest franchisee of PepsiCo in the world (outside USA). The Company produces and distributes a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo. PepsiCo CSD brands produced and sold by VBL include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda, Seven-Up Nimbooz Masala Soda and Evervess. PepsiCo NCB brands produced and sold by the Company include Slice, Tropicana Juices (100% and Delight), Seven-Up Nimbooz, Gatorade as well as packaged drinking water under the brand Aquafina.

VBL has been associated with PepsiCo since the 1990s and have over two and half decades consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the Company, producing and distributing a wider range of PepsiCo beverages, introducing various SKUs in the portfolio, and expanding the distribution network. As on date, VBL has been granted franchises for various PepsiCo products across 27 States and 7 Union Territories in India. India is the largest market and contributed ~80% of revenues from operations (net) in Fiscal 2022. VBL has also been granted the franchise for various PepsiCo products for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.

For more information about us, please visit www.varunbeverages.com or contact:

Raj Gandhi / Deepak Dabas / Manjit Singh Chadha Varun Beverages Ltd Tel: +91 124 4643100 / +91 9871100000 / +91 9810779979 E-mail: raj.gandhi@rjcorp.in

Anoop Poojari CDR India Tel: +91 9833090434 E-mail: anoop@cdr-india.com

deepak.dabas@rjcorp.in manjit.chadha@rjcorp.in

Thank You!

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