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June 2010

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June 2010

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  1. June 2010

  2. Disclaimer • Statements made in this presentation that relate to CCU’s future performance or financial results are forward-looking statements, which involve uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any of these statements. Listeners are cautioned not to place undue reliance on these forward-looking statements. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU’s annual report filled with the Chilean Superintendencia de Valores y Seguros(SVS) and in CCU’s 20-F filled with the US Securities and Exchange Commission (SEC). 1

  3. Agenda II. Snap Shot Q1'10 Results 7 I. Introduction 3 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 2

  4. Agenda II. Snap Shot Q1'10 Results 7 I. Introduction 3 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 3

  5. Introduction • Ownership structure(1) and business model Quiñenco S.A. Heineken 50.0% 50.0% IRSA(2) ADRs Other 66.1% 11.5% 22.4% (1) As of May 31st, 2010 (2) IRSA owns directly 61.7% of CCU’s equity and 4.4% through a 99.9% owned vehicle. 100% 99.9% 50,01% 80% 95.9% 50% Beer Chile(3) CCU Chile Non Alcoholic beverages(4) ECCUSA Wine VSPT Spirits CPCH Beer Argentina CCU Argentina Snacks(5) Foods (3) Additionally includes +50% stake of CCK and 50% stake of Austral (4) CCU has a 50.1% stake in Aguas CCU-Nestlé to develop the waters business in Chile and a 50% JV in Promarca (Nectar and Juices) (5) Not consolidated 4

  6. Introduction • Ownership structure and business model SBUs SSUs CSUs • Production • Marketing • Sales* • *High density zones • Logistic & Distribution • Multicategory sales ** • **Low density zones • Shared Services • Corporate Services FOCUS + SYNERGYES FOCUS 5

  7. Introduction • Indicators by business unit 2009 % EBITDA % Volumes % Revenues 31% 36% 51% 24% 18% 12% 37% 26% 19% 16% 11% 7% 1% 5% 5% - 3% - 100% 100% 100% 6 1. Figures may not add 100% due to rounding effects Source: CCU, under IFRS

  8. Agenda II. Snap Shot Q1'10 Results 7 I. Introduction 3 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 7

  9. II. Snap Shot Q1'10 Results 1Q’10 Volume Supply constraints due to 27 F earthquake (1) Compares quarter’s volumes with same quarter’s in prior year. • Inventory Reposition • New jobs after 27 F • Most of the supply constraints solved (2) Includes all volumes sold in Chile plus wine exports from Chile (3) Includes beer and wine from Argentina 8

  10. II. Snap Shot Q1'10 Results CCU S.A. First Quarter Results (*) As of March 31, 2010, the Company recorded in its financial statements, Ch$13,5 billion in the “Accounts receivables-trade and other” account, corresponding to damages related to the earthquake. Please see the May 26, 2010 press release and the note n°34 of the 1Q’10 Finance Statements 9

  11. Agenda I. Introduction 3 II. Snap Shot Q1'10 Results 7 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 10

  12. III. Historical sources of growth 12 • CCU has been growing consistently over the last 20 years EBITDA’s growth breakdown as per CCU’s internal analysis: (3) • 50% Organic growth • 50% Non-organic Under CHGAAP, figures in CLP Billions of December 1990. Under IFRS, figures in nominal CLP Billions. (3) Figures have been rounded and may not sum exactly the totals shown. • CCU has become a multicategory company 11

  13. III. Historical sources of growth Main indicators 2002 – 2009 • Since the prior crisis, figures in the dimensions Profitability, Growth and Sustainability show a constant improvement. Source: CCU and Adimark (1) Under Chilean GAAP. Figures in CLP Billions of December of each year. (2) IFRS, figures in nominal CLP Billions. (3) ROCE: Return on capital employed. (4) Weighted market share of all businesses in which CCU participates. 2008 figure may differ from past presentations, due to adjustment when final year 2008 data was obtained. (5) Direct profit in CLP Billions contributed by products considered in the high margin segment (Segmento de Alto Margen or SAM). (6) Quarterly consumer poll, which measures brand value through asking for consumer's preferred brand in each product segment. (7) Internal poll done to all CCU employees, that measures the level of employee’s satisfaction at the job. 13

  14. Agenda II. Historical sources of growth 7 I. Introduction 3 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 15

  15. 17 18 19 IV. Targeted sources of growth 2. Organic and non-organic* sources of growth ORGANIC Per capita consumption increase Higher market share Higher SAM (1) Chilean beverage industry Beer industry in Argentina Improve the ROCE in the wine business NON-ORGANIC * NON-ORGANIC * Ready to eat market in Chile Multicategory business in Argentina Surrounding markets Dairy products in Chile Ready to eat market in Chile Multicategory business in Argentina Surrounding markets Dairy products in Chile • * To be evaluated on a case by case basis. • (1) SAM = Segmento de alto margen. Is the direct profit contributed by products considered in the high margin segment. 16

  16. Organic growtha. Chilean beverage industry • Per capita consumption increase(1) PCC Evolution in Chile CAGR: 3.8% 207 159 2002 2009(1) • Source: CCU 2009 estimates for Chile beverage and beer Argentina; Canadean estimated 2008 for other countries’ PCC. Excludes bottled milk. • Income per capita (PPP): 0.9 times Argentina/Chile, 2.2 times Spain/Chile and 3.4 times USA/Chile. Income per capita (PPP) source: World Bank, April 2008. • (2) Figures have been rounded and may not sum exactly the totals shown. 17

  17. Organic growtha. Chilean beverage industry • Higher consolidated market share - CCU is stronger in categories with higher potential, which have been growing at a faster pace (1) Market share in Chile + 4.2 pts Source: CCU internal estimates (1) Includes all nectar and juices market. CCU has 57% market share in the bottled nectar category. Categories with high growth potential 18 MS Sources: CCU estimates for beer and ACNielsen for all others.

  18. Organic growtha. Chilean beverage industry • Higher SAM SAM (Direct profit*) CLP Billions CAGR 29.8% * Figures in CLP Billion of each year. • SAM Chile = Segmento de alto margen. Is the direct profit contributed by products considered in the high margin segment. 19

  19. IV. Targeted sources of growth 2. Organic and non-organic* sources of growth ORGANIC Chilean beverage industry Beer industry in Argentina Improve the ROCE in the wine business Per capita consumption increase Profitability increase 21 22 NON-ORGANIC * Ready to eat market in Chile Multicategory business in Argentina Surrounding markets Dairy products in Chile 20 * To be evaluated on a case by case basis.

  20. Organic growthb. Beer industry in Argentina • Per capita consumption increase * Canadean estimated 2008 figures, except for 2009 Chile and Argentina (CCU estimated). Beer: Liters per capita in Argentina (1) CAGR 02-09: 4.0% Figures have been rounded. Source: CCU. 21

  21. 22% 21% 16% 16% 16% 15% 14% 13% Organic growthb. Beer industry in Argentina • Profitability increase Beer price in Argentina (US$/HL) (1) SAM Argentina (Direct profit) * USD Millions CAGR 41.2% Source: CCU. (1) Figures in nominal USD. 2001-2007 under CHGAAP; 2008-2009 under IFRS. * Figures in nominal million USD of each year. Under CHGAAP. Higher % of direct distribution Market share 3% 22 Source: Argentine Beer Industry Chamber. * As of December of each year.

  22. IV. Targeted sources of growth 2. Organic and non-organic* sources of growth ORGANIC Chilean beverage industry Beer industry in Argentina Improve the ROCE in the wine business 24 NON-ORGANIC * Ready to eat market in Chile Multicategory business in Argentina Surrounding markets Dairy products in Chile 23 * To be evaluated on a case by case basis.

  23. Organic growthc. Improve the ROCE in the wine business ROCE (1) 689 692 610 560 530 521 530 554 NAER Source: CCU. NAER: month end nominal exchange rate average. (1) 2002-2007 under CHGAAP. 2008-2009 under IFRS. • Initiatives to increase the ROCE from 7.6% to 11% minimum: • Export market: (+2 points) • Domestic market (+2 points) • Argentina (+1 points) 24

  24. IV. Targeted sources of growth 2. Organic and non-organic* sources of growth ORGANIC Chilean beverage industry Beer industry in Argentina Improve the ROCE in the wine business NON-ORGANIC * Ready to eat market in Chile Multicategory business in Argentina Surrounding markets Dairy products in Chile 26 27 28 29 25 * To be evaluated on a case by case basis.

  25. Non-organic growth* d. Ready to eat market in Chile • Ready to eat market in Chile (US$ 1.2bn) • 2020 ready to eat market estimated in US$ 1.7bn • CCU currently has a 50-50 JV with Indalsa(1) • Market share 2009: 5%(3) (2) Sale volumes (tons) Revenues CLP Billions CAGR: 8.6% CAGR*: 20.3% CAGR: 24.0% * To be evaluated on a case by case basis. (1) Currently does not consolidate in CCU. (2) Currently does not consolidate in Foods; option to increase Food`s ownership and consolidate in the future. (3) Source: CCU internal estimates. 26

  26. Non-organic growth*e. Multicategory business in Argentina • Replicate CCU's business model in Argentina • Source: CCU 2009 estimates for Chile beverage and beer Argentina; Canadean estimated 2008 for other countries’ PCC. • Income per capita (PPP): 0.9 times Argentina/Chile, 2.2 times Spain/Chile and 3.4 times USA/Chile. Income per capita (PPP) source: World Bank, April 2008. • Figures have been rounded and may not sum exactly the totals shown. • Higher direct sales as a tool to build the multicategory business • 2002 = 12% • 2008 = 28% • 2009 = 34% • Dec 2010 target = 45% • Dec 2020 target = 65% 27 * To be evaluated on a case by case basis.

  27. Non-Organic growth*f. Surrounding markets • Beverage industry of Peru +Paraguay +Uruguay + Bolivia + Ecuador + Colombia: Source: Canadean estimated 2008. 28 * To be evaluated on a case by case basis.

  28. Non-Organic growth*g. Dairy products in Chile • Dairy products market size (1): • US$ 300 million • 3.6 million hectoliters (2) Source: CCU 2009 estimates for Chile; Canadean estimated 2008 for other countries. • * To be evaluated on a case by case basis. • (1) Includes only milk and milk based beverages. 29

  29. II. Historical sources of growth 7 Agenda I. Introduction 3 III. Historical sources of growth 10 IV. Targeted sources of growth 15 V. Summary 30 30

  30. V. Summary 50% Organic 50% Non-organic • Over the last 20 years, approximately 50% of CCU's growth has come from organic sources and the other 50% from non-organic sources Under CHGAAP, figures in CLP Billion of December 1990. Under IFRS, figures in nominal CLP Billions. • The company sees many opportunities to keep on growing in the next 10 years • Organic growth • Chilean beverage industry • Beer industry in Argentina • Improve the ROCE in the wine business • Non-organic growth • Ready to eat market in Chile • Multicategory business in Argentina • Surrounding markets • Dairy products in Chile 31 31

  31. June 2010 Contacts:

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