EAST AFRICAN BREWERIES LIMITED F11 Full Year Results

Investor Briefing
Seni Adetu Group Managing Director & CEO Peter Ndegwa Group Finance Director 26th August 2011

EABL FY--F11 Investor Presentation

Our vision

EABL is the most celebrated business in every market in Eastern Africa

Our Intent
9 Employer of choice 9 Delivering superior total shareholder returns 9 Force for good in every market in East Africa
EABL FY--F11 Investor Presentation

Business Update
Group MD and CEO

Mr. Seni Adetu

EABL FY--F11 Investor Presentation

Macroeconomic and political environment showed mixed fortunes in F11

Positive GDP Growth

Upside
> Positive economic growth across East Africa but, sluggish in H2 > Increased infrastructural development > Increased FDI in the region > Emerging middle class population > Increased investor confidence >Successful elections in Tanzania, Uganda and cessation of S. Sudan

Source: IMF, World economic outlook, IMF & Africa development database
Consumer Price Infation Region / Country Percentage World US Eurozone UK Ja pa n Emerging markets and developing countries Developing Asia China India East Africa Sub-Saharan Africa South Africa
1. GDP pr oj ect i on s:

Downside
2011 3.1 1.7 2.8 3.3 1.3 6.0 4.2 6.3 6.9 9.2 7.9 4.9

I M F W or l d E con omi c Out l ook

> Poor rainfall and drought across East Africa > High Inflation, currency depreciation, energy crisis and rising interest rates > Slow EAC regional integration process > Increased legislation & regulation in Kenya & Uganda > Intense political environment across East Africa due new or forthcoming elections > Competitor play on all fronts

EABL FY--F11 Investor Presentation

F11 Operating environment we faced other challenges across the region

ADCA* last November in Kenya and loss of sachets in Uganda Pricing in Kenya to recover excise tax impact, in spite of depressed consumer disposable income Intense competition in Uganda, Tanzania and S. Sudan Forex scarcity in S. Sudan Operating cost increases on fuel, electricity and high cost of raw materials
ADCA*- Alcohol Drinks Control Act

EABL FY--F11 Investor Presentation

Notwithstanding, our business is stronger today as shown by our organic business results
M KES F11 7,698 kEus % vs PY Headlines
> Expanded volume in the Beer and
spirits categories > NSV growth largely driven by price and brand mix

Sales Volume Net Sale Value Marketing Spend COGs Operating Profit

+8% +6% +15% +2%

40,918 2,952 19,997 12,946

>

Reinforced our focus on generating

growth through investment behind our brands (including renovation and customer partnering)

>

We strengthened the business for the future through Capex investment in manufacturing assets and governance

+17%

PBIT
Net Cash generated from Operating activities*

12,946
KES 14.9 bn

+6%
13%

>

We upgraded our talent capability and employee engagement

>

Sustained our strong cash position

EABL FY--F11 Investor Presentation *before tax, interest and Capex

On an inorganic basis (results consolidating SBL)

M KES F11 8,263 kEus % vs PY Headlines
> Includes SBL performance for
last 8 months

Sales Volume Net Sale Value Marketing Spend COGs Operating Profit

+15% 16% +36% +17% 10%

44,895 3,491 22,831 12,412

> Significant spend in SBL on

Integration Governance and Compliance Capex : New Moshi Brewery A&P to protect share SBL will be a key driver of our

PBIT
Net Cash generated from Operating activities*

12,245
KES 14.9 bn

0%
13%

future growth

EABL FY--F11 Investor Presentation *before tax, interest and Capex

With SBL EABL well poised to consolidate its position

EABL acquired 51% equity stake in SBL in November 2010 SBL is clearly a future driver of growth
2nd largest beverage alcohol company in Tanzania Expanded, popular and adored portfolio brands (PSL, Tusker, Guinness etc.) 3 Functioning breweries in Dar es Salaam, Mwanza and Moshi

SBL contribution to EABL performance in F11

Volume contribution of 7% to the Group NSV contribution of 9% to the Group

EABL has invested significantly in integrating the business to EABL/ Diageo standards
Systems & Processes (including financial reporting) IT infrastructure Talent and Culture Health & Safety Supply (including the new Moshi Plant) Brands to protect share

The one-off integration and Capex costs in F11 affected SBLs profitabilty
SBL remains an accretive acquisition and is expected to deliver incremental sales and profit growth for EABL in the future
EABL FY--F11 Investor Presentation

All our core brands grew over LY on impactful commercial interventions

>Tusker Project fame 4 & Tusker All Stars >Tusker CECAFA East Africa football challenge

>Brand Mentorships & consumer experience for Johnnie Walker

>Smirnoff cocktails experience & outdoor campaigns

+5%

+3%

>Senator Keg footprint expansion >Brand renovations Tusker & Bell new look

+18%

+9%

+158%

+18%

Pegged on great sales & marketing initiatives platform

EABL FY--F11 Investor Presentation

+18%

+35%

The commercial interventions

EABL FY--F11 Investor Presentation

Supported by strategic CAPEX investment & cost-value management

Supply Chain Excellence

Sorghum Agenda

New Moshi Brewery

New Line 4 - Uganda

Cost-value Management
> > > Supply chain optimisation Logistics and warehousing outsourced Sorghum agenda rolled out large-scale production after successful pilot runs Rigorous price hedging for sugar and cereals Great focus on operational efficiencies > > > >

CAPEX investments
Commissioning of Moshi brewery in Tanzania Installation of new packaging line in Uganda Increased water storage facilities & new 66 KV power sub-station in Kenya New mash filter in progress for Uganda

>

EABL FY--F11 Investor Presentation

Bolstered by an engaged and capable workforce and improved organisational effectiveness

All Staff Conference forum

Team building Sessions Restructured organization simpler, faster, better service delivery All Staff conference Tanzania team joining for the first time Increasing employee engagement as shown in value survey results Step changed safety levels in all our subsidiary companies Dialed up Compliance agenda across the patch Additional early & mid career joiners, effective retention and reward policies

Key People Initiatives

EABL FY--F11 Investor Presentation

and we reinforced our force for good positioning in the community

Environment Skills for Life

>

Water of life program - Provided for over 690,000 people this year alone

Responsible Drinking

>

Environment E green team eg. save the Mau, Karura forest campaigns

>
>

Skills for life initiative Scholarships

Responsible drinking campaign in the region

EABL FY--F11 Investor Presentation

Summary for F11 achievements

Delivered positive growths in volume (+8%), NSV (+6%) and OP (+17%) on our organic business. Spirits portfolio grew at +56% Group wide, with all businesses showing different levels of growth in this category. We have seen a turnaround in Uganda with strong volume, share and profit performances. We implemented a number of operational tools to enable us sustain performances into the future : In-touch, P2C etc. We have materially improved the culture and employee engagement within the organization, as manifested in our annual value surveys We completed the SBL acquisition last November, advanced the integration processes, involving employees, assets, systems & operations. Became the number 1 company by market capitalization on the NSE*
*NSE-Nairobi Stock Exchange

EABL FY--F11 Investor Presentation

Forging ahead

EABL FY--F11 Investor Presentation

The future remains strongly positive given economic outlook in Sub-Saharan Africa and our strong company fundamentals

GDP Closer Home--Sub Saharan

Market Kenya Uganda Tanzania Sudan Ethiopia Rwanda Burundi
Source:EIU GDP Growth figures011-13

Inflation, Population forecast

2011 Inflation Population 15% 40m 16% 33m 14% 43m 11% 44m 15% 76m 9% 10m 13% 8m 2012 Inflation Population 10% 41m 12% 35m 11% 44m 12% 45m 10% 77m 8% 10m 11% 8m

Increased EAC population base of 6m

Source:EIU GDP Growth figures011-12

The Economy reasons to believe

GDP growth Investor confidence in Sub-Saharan Africa remains high Heightened EAC Integration process FDI s increase & improving infrastructure Growing middle class and increasing consumer affluence Better rains forecast

Our Fundamentals
> Strong brands and established RTM footprint > Strong balance sheet and cash position > Capable and engaged talent > Leveraging on Diageo expertise > Belief in governance Compliance > Dedication to our community

EABL FY--F11 Investor Presentation

We are positioned to continue delivering superior shareholder value

By Leveraging on Overcoming

&

Growing economies Increasing population, growing middle class

Regulatory concerns ( Excise Tax/ Alcohol Act/

Anti-Trust laws)

& affluence
Increased integration (EAC) Strong brands & good reputation Significant Spirits opportunity

Fiscal pressures in our markets Growing competition Political uncertainties across the region

Complexities of new Market entry

Cost inflationary pressures Growth of illicits/ Parallels/ Counterfeits

Technological advancement
Headroom growth in new markets

In order to win in every market, and become the Most Celebrated Business in Eastern Africa
EABL FY--F11 Investor Presentation

Our vision and consistently dynamic strategic imperatives will provide the impetus for future growth
Purpose Vision Strategic Focus Areas

Celebrating life everyday, everywhere

The Most Celebrated Business in Every Market in Eastern Africa
Amazing Relationships Bringing Out the Best [Talent/People/Safety] Great Times, Great Experiences
[Geographic Expansion]

Enriched Communities [Responsible enjoyment of alcohol]

[Amazing Customer partnerships]

[World Class RTM]

[Supporting Local Talent]

Outcomes

[Supply/Cost Leadership]

[Total Adult Beverage]

[Environment (Water/E-green)]

EABL FY--F11 Investor Presentation

Financial Update Group FD Peter Ndegwa

EABL FY--F11 Investor Presentation

Sustained Performance in a tough environment

> Solid Spirits performance in Kenya > Rebound of Uganda business in H2 > Enhanced Cost management > Acquisition of SBL > Good management of working capital
>Tough Regulatory Landscape >Higher excise taxes on beer in Kenya > Depressed Economic landscape in Q4 emerging risks (Fx, inflation, cereal shortage) > Impact of one off integration cost in SBL

+ -

EABL FY--F11 Investor Presentation

Solid organic operating profit delivery

Key KPI performance vs. LY

17%

8%

6%

Volume

NSV

OP

> > > >

Volume growth driven by spirits and turnaround in UBL NSV increase on the backdrop of selective pricing & mix Improved gross margins with aggressive COGS focus SOA in TBL not recognised in F11

EABL FY--F11 Investor Presentation

Inorganic results...Including SOA & SBL

Key KPI performance including SBL vs. LY

10%

Volume

NSV

OP

> Increased volume contribution > Positive contribution by SBL to NSV (9% contribution) > SBL Integration costs - impact on operating profit
EABL FY--F11 Investor Presentation

Great COGS delivery, resulting in +2points growth in operating margins

Total COGS

2%

2% COGS growth versus 8% volume growth

Key COGS Drivers

> > > >

Local cereals availability in market Improved operating line efficiencies Hedging key input materials (sugar, fuel oil) Reduced waste through better operational controls

EABL FY--F11 Investor Presentation

Kenya: Solid spirits performance, flat beer out-turn

Kenya- Beer
2%

-1%

2%

Vol Eus 'k NSV Kes 'm OP Kes 'm

F10

F11

> Large tax increase in beer rate for malt and non malt harmonised > Impact of ADCA > Tactical pricing to deliver NSV growth

Kenya- Spirits
58%
64% 78%

Vol Eus 'k NSV Kes 'm OP Kes 'm

> Stable tax regime in spirits category > Focus on distribution > Growth of premium and mainstream brands > Improved operating margin

F10

F11

EABL FY--F11 Investor Presentation

Uganda: A tale of two halves, significant turnaround in H2

F11- H2vs H1
-2%
69%

Vol Eus 'k NSV Kes 'm OP Kes 'm

H1

H2

H1-F11 vs F10
4%
14% -21%

> Investment in new packaging line resulted in improved product availability > Enhanced line efficiencies > Re-launched Bell in new pack > Better cost management (lower waste and increased controls)

Vol Eus 'k NSV Kes 'm OP Kes 'm

F10

F11

EABL FY--F11 Investor Presentation

EABLi: A challenging year but promising future

Great Lakes Region (GLR)
3%

-10%

-1%

Vol Eus 'k NSV Kes 'm OP Kes 'm

> Impact of uncertainty over referendum > Scarcity of forex constraining trading > Improved performance in H2 > New Nation in SoSS future more optimistic

F10

F11

EABL FY--F11 Investor Presentation

Tanzania: SOA excluded, SBL consolidated

We have not recognised share of associates in F11 reclassified as available for sale [2010: Kshs 1.1bn) Shareholding in TBL in the process of disposal through a public offer for sale expected to complete by October Acquired 51% stake in SBL for Kshs 4.9bn on 1 November 2010 mostly funded from internally generated funds Consolidated eight months of SBL into EABL - contributing Kshs 4bn in NSV During the year SBL reported net loss mostly driven by one-off integration costs of Kshs 300m and interest cost of Kshs 200m We have spent KShs 2bn in capital expenditure on completing Moshi plant and on additional crates and bottles required for SBL

EABL FY--F11 Investor Presentation

Detailed results
East African Breweries Limited Financial Report for the year ended 30 June 2011 (Audited)

Consolidated Profit and Loss Account

Year ended 30-Jun-11 Kshs M Year ended 30-Jun-10 Kshs M Change %

Net Revenue Cost of Sales Gross profit Other operating income / (expense) Selling and distribution costs Administrative expenses Profit from operations Net finance (cost) / income

44,895 (22,831) 22,064 321 (3,491) (6,481) 12,412 (163)

38,679 (19,537) 19,142 (474) (2,570) (4,842) 11,256 169

16% 17% 15% 168% 36% 34% 10% -196%

Income from associate

Profit before taxation

12,249

1,144
12,569

-100%
-3%

Income tax expense

Profit after taxation

(3,235)
9,014

(3,731)
8,838

-13%
2%

Minority interest
Net profit

(1,661)
7,353

(1,659)
7,179

0%
2%

Basic earnings per share Diluted earnings per share

9.30 9.30

9.08 9.08

2% 2%

EABL FY--F11 Investor Presentation

Our Proposed Dividends

F11 Kshs per share F10 Kshs per share

Interim Dividend

2.50

2.50

Final Dividend
Total Dividend

6.25
8.75

6.25
8.75

EABL FY--F11 Investor Presentation

In summary
Strong financial performance in F11 with NSV, PBIT and cash growth vs LY: On an organic basis: Volume = 8% NSV = 6% PBIT = 6% (Operating Profit of +17%, and PBIT of 6%) This performance was driven by: Fantastic growth in our Brands Increased investment in A&P and Capex Continued focus on customer relationships and market development initiatives Our quality talent in all Functions Investment in SBL to position for future growth led to an increased cost input Our public policy and CSR initiatives continue to inspire life in our communities Despite increasing macro-economic challenges, our future looks ever more promising Well laid out Strategy Strong business fundamentals SBL acquisition Opportunity in Spirits and new geographies The regional integration potential
EABL FY--F11 Investor Presentation

EABL F11 Full Year Results

Investor Briefing

Welcome

Q&A Session
EABL FY--F11 Investor Presentation

EABL L F11 Full ul l Year ea a Results s

Investor nvestor esto or o r Briefing Brie e efing HANK HA AN YOU A YO OU THANK
26th August 2011 2

EABL FY--F11 Investor Presentation