Corporate Presentation

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1 Investor Relations Corporate Presentation May, 04 0

2 Disclaimer Statements made in this presentation relate to CCU s future performance or financial results are forward-looking statements within the meaning of Section 7A of the U.S. Securities Act of 933, as amended, which are not statements of fact and involve uncertainties that could cause actual performance or results to materially differ. Forward looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like believe, anticipate, expect, envisages, will likely result, or any other words or phrases of similar meaning. Our forward-looking statements are not guarantees of future performance, and our actual results or other developments may differ materially from the expectations expressed in the forward-looking statements. As for forward-looking statements that relate to future financial results and other projections, actual results will be different due to the inherent uncertainty of estimates, forecasts and projections. Because of these risks and uncertainties, potential investors should not rely on these forward-looking statements. Our independent public accountants have not examined or compiled the forward-looking statements and, accordingly, do not provide any assurance with respect to such statements. No representation or warranty, express or implied, is or will be made or given by us or any of our affiliates or directors or any other person as to the accuracy or completeness of the information or opinions contained in this presentation and no responsibility or liability is or will be accepted for any such information or opinions Although we believe that these forward-looking statements and the information in this presentation are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. The forward-looking statements represent CCU s views as of the date of this presentation and should not be relied upon as representing our views as of any date subsequent to the date of this presentation as we undertake no obligation to update any of these statements. Listeners are cautioned not to place undue reliance on these forward-looking statements as such statements and information involve known and unknown risks. These statements should be considered in conjunction with the additional information about risk and uncertainties set forth in CCU s SEC filings: Prospectus supplements dated September, 03 and September 3, 03 and the accompanying Prospectus dated August, 03; CCU s annual report filed with the Chilean Superintendencia de Valores y Seguros (SVS) and in CCU s 0-F for the year ended December 3, 03, filed with the U.S. Securities and Exchange Commission (SEC). This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without our prior written consent. Recipients of this presentation are not to construe the contents of this summary as legal, tax or investment advice and recipients should consult their own advisors in this regard.

3 Agenda CCU overview Investment highlights Recent performance Key takeaways 7 3

4 . CCU overview Ownership structure () Quiñenco S.A. Heineken 0.0% 0.0% IRSA () ADRs Others 0.0%.9% 7.% () Figures as of December 3, 03. Number of shares: 39,0,87 ; () IRSA owns directly 3.% of CCU s equity and.8% through a 99.9% owned vehicle; 3

5 . CCU overview Multi-category branded beverages company operating in Chile, Argentina, Uruguay and, since December 03, in Paraguay with an extensive wine export business to more than 8 countries Broad product portfolio of highlyrecognized brands Listed on the Santiago Stock Exchange (since 90) (3) and on the NYSE (since 999) (4) Brewing tradition since 80 As of Dec 3, 03 key indicators () + + Volume.9 million HL Net sales USD,48 million + EBITDA() USD million + EBITDA() margin.3 % () Average exchange rate for 03: CLP 49. /USD; () EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form. CCU. Before Exceptional Item; (3) Listed also in the Bolsa de Valparaíso stock exchange and the Bolsa Electronica de Chile stock exchange; (4) CCU was listed on NASDAQ from 99 to 999 4

6 . CCU overview Contribution by Operating segment (As of December 3 th, 03) (*) Total () (million) Chile Río de la Plata Wine Corporate Support () - Beer - Non Alcoholic Beverages - Spirits - Beer - Non Alcoholic Beverages - Cider - Spirits - Wine - Shared services - Corporate services - Logistic & Distribution - Packaging unit Chile Argentina Uruguay Paraguay 80 countries Across all operating segments Volume.9 HL 7% 3% % 0% Net Sales USD,48 4% 3% 3% 0% EBITDA (3) USD 73% % 8% 4% EBITDA (3) margin (%).3% 4.3% 3.% 3.4% - (*) Figures have been rounded to add 00%. () Average exchange rate for 03: CLP 49. /USD; () Considered as Others/Eliminations in CCU s financial releases; (3) EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form.

7 Agenda CCU overview Investment highlights Recent performance Key takeaways 7 3

8 . Investment highlights run by experienced controlling shareholders and management. Leading multicategory branded beverages player with substantial opportunities to continue growing driven by a unique Business Model Outstanding track record and proven financial strength with strong presence in highly attractive markets. 7

9 Total Wine Rio de la Plata Chile Leading multi-category branded beverages player Leader with strong brands & long term partners Beer Under the Non Alcoholic brand endorsement Multicategory 03 Weighted Volume Market Share () CSD Pisco () Waters Functional & Juices Rum Other liquors 39.% (4) (3) CSD () Waters Functional & Juices Ciders 7.% () Domestic & Export () 7.% 9.9% () Source of Market Share: Nielsen for Chile, Domestic Wine and Argentina, ID Retail for Uruguay and Viñas de Chile for Export Wine. Annually updated and weighted by Internal Market Size estimates; () License until December 0 in Chile and December 0 in Argentina and Uruguay; (3) License until December 08 in Argentina; (4) Excludes HOD; () Includes Cider in Argentina since 0. Excludes Paraguay and Beer in Uruguay; () Domestic and export wines from Chile. Excludes bulk wine 8

10 Geographic Chile Rio de la Plata Wine driven by a unique Business Model Based on Corporate Design and Management Processes with focus on Economic, Social and Environmental dimensions Business Model CORPORATE DESIGN MANAGEMENT PROCESSES Non Geographic Corporate Support () Strategic Plan Consumer Preference Model Human Resources Productivity, Quality & Environment Operating Budget Investment Budget Economic Social Environmental BSC (Balanced Scorecards) () Considered as Others/Eliminations in CCU s financial releases 9

11 SYNERGIES Chile Rio de la Plata Wine driven by a unique Business Model Which combines focus and synergies in its multi-category operation Corporate Design Commercial effort and distribution logistics FOCUS Production Marketing Sales* Production & Marketing Urban Rural Urban Rural Focus * Urban / High density zones in Chile; in Argentina, Uruguay & Paraguay just production and marketing Sales Distribution Focus Focus + Synergies Focus + Synergies Corporate Support () Service Level Agreement Shared services Corporate services Logistic & Distribution Packaging unit () Considered as Others/Eliminations in CCU s financial releases 0

12 with strong presence in highly attractive markets. High growth in per capita consumption, population and GDP in our current markets Chile Río de la Plata Chile Argentina Uruguay Paraguay USA Liters per Capita () 3 4 Liters per Capita Growth (CAGR 003-3) Population Growth () (CAGR 003-3) GDP Growth (3) (CAGR 003-3) 3.8%.8% 4.%.0% (0.)%.0%.% 0.3%.8% 0.9% 4.8%.%.4% 4.%.7% High potential for organic growth () Source: CCU 03 internal estimates for Chile, Argentina and Uruguay. Canadean 04 estimates for Paraguay and USA. Includes HOD, white and flavored milk. Annually updated; () Source: International Monetary Fund (IMF), October 03; (3) GDP growth in national currency and

13 with strong presence in highly attractive markets. High growth in per capita consumption, population and GDP in our current markets Chile Río de la Plata Wine Chile Argentina Uruguay Paraguay USA Beer CSD Nectar and Juices Water () Functional Drinks Spirits Cider Milk () Total (ex Wine) Wine High potential for organic growth TOTAL 3 4 Source: CCU 03 internal estimates for Chile, Argentina and Uruguay. Canadean 04 estimates for Paraguay and USA. Annually updated; () Includes HOD; () Includes white and flavored milk

14 Outstanding track record and proven financial strength Proven track record for organic and inorganic growth Diversification from a Beer based company into a multi-category branded beverage company Over the last 0 years successfully executing strategic M&A transactions Historical strategic M&A transactions () (*) Currently does not consolidate () Some transactions occurred during more than one year, but they are presented as if they where executed in the first year 3

15 Outstanding track record and proven financial strength Key performance indicators show a constant improvement in each pillar CLP billions CHGAAP () IFRS () CAGR (3) Total Volume (millons of HL) % Net Sales ,07.7,97..0% EBITDA (4) % EBITDA Margin ().% 3.4%.9%.3% 3.4% 3.% 3.4% 4.% 3.%.9%.3% Net Income () % RONA (7) 9.3%.%.% 3.% 4.8% 4.%.%.9% 7.% 7.0% 3.3% Total Market Share (8) 4.9%.0%.%.%.8% 7.% 7.4% 7.% 7.9% 8.% 9.9% () Under Chilean GAAP. Figures in CLP Billions as of December of each year () Net Income attributable to Equity holders of the parent () IFRS, figures in nominal CLP billions (7) RONA (Return on Net Assets) = EBIT / [Total Assets (Total Current Liabilities - Other Current Financial (3) Inflation for the period: 3.4% Liabilities)] (4) EBITDA after Exceptional Items (EI) is 09., 40. and. for 00, 0 and 03 respectively. EBITDA (8) Weighted market share of all categories in which CCU participates based on most recent internal estimates on is equivalent to ORBDA (Operating Result Before Depreciation & Amortization) used in the 0-F, figs. before EI each year s market size. Source of Market Share: Nielsen for Chile, Domestic Wine and Argentina, ID Retail for () EBITDA margin after EI is 4.9%, 4.8% and.% for 00, 0 and 03, respectively Uruguay and Viñas de Chile for Export Wine. Annually updated. Includes Cider in Argentina since 0. Excludes Paraguay, Beer in Uruguay, and wines in Argentina. In the case of Chile, excludes HOD 4

16 Outstanding track record and proven financial strength Key performance indicators show a constant improvement in each pillar CLP billions CHGAAP () IFRS () CAGR (3) Total Volume (millons of HL) % Chile % Rio de la Plata % Wine % Total Market Share (4) 4.9%.0%.%.%.8% 7.% 7.4% 7.% 7.9% 8.% 9.9% Chile () 3.% 3.8% 3.% 3.7% 37.0% 37.% 37.8% 37.% 37.8% 37.8% 39.% Rio de la Plata () 0.9%.%.7%.%.7%.%.%.3%.8%.9% 7.% Wine (7) 7.% 7.%.% 4.3% 3.9% 3.3%.9%.%.0% 7.3% 7.% () Under Chilean GAAP. Figures in CLP Billions as of December of each year; () IFRS, figures in nominal CLP billions (3) Inflation for the period: 3.4% () Source Nielsen. Excludes HOD () Includes Cider in Argentina since 0. Excludes Paraguay and Beer in Uruguay. Source ID Retail for Uruguay and Nielsen for Argentina. (4) Weighted market share of all categories in which CCU participates based on most recent internal estimates on (7) Includes Chile domestic wines and Export. Source Nielsen for Domestic Wine and Asociación de Viñas de each year s market size. Source of Market Share: Nielsen for Chile, Domestic Wine and Argentina, ID Retail for Chile for Export Wine. Uruguay and Viñas de Chile for Export Wine. Annually updated. Includes Cider in Argentina since 0. Excludes Paraguay, Beer in Uruguay, and wines in Argentina. In the case of Chile, excludes HOD

17 Outstanding track record and proven financial strength Strong financial position (CLP million) Assets As of Mar 3st, 04 As of Dec 3st, 03 Liabilities and Equity As of Mar 3st, 04 As of Dec 3st, 03 Cash and cash equivalents 348, ,83 Financial debt 9,8, Other current assets 374, ,44 Other liabilities 34, , Total current assets 7,09 88,497 Total liabilities 37,74 43,47 Property, plant and equipment 8,98 80,994 Net equity (shareholders) 99, ,7 Other non current assets, 8,9 Minority interest 9,773 9,8 Total non current assets 907,9 909,3 Total equity,09,70,084,44 Total assets,30,0,77,70 Total liabilities and equity,30,0,77,70 Financial Ratios As of Mar 3st, 04 As of Dec 3st, 03 Interest coverage (>3.0) () Debt to equity ratio (<.) () Net financial debt / EBITDA (3) (0.) (0.8) Financial debt / capitalization (4) () Financial covenant as EBITDA / Financial Cost; () Financial covenant as Total liabilities/ Total Equity; (3) EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form; (4) Capitalization refers to financial debt plus total equity including minority interest

18 with substantial opportunities to continue growing Targeted sources of organic and inorganic growth Organic growth Inorganic growth 7

19 with substantial opportunities to continue growing Targeted sources of organic and inorganic growth Organic growth 8

20 with substantial opportunities to continue growing Organic growth opportunities driven by Strong market share in the beverages sector, particularly in categories with higher potential Strong portfolio of preferred brands Still low per capita consumption Steady population growth Average prices growing faster than inflation Fast GDP growth Attractive opportunities to continue strong organic growth in the future 03 0 CLP 8.8 ~ 00 billion USD,88 million CAPEX ()() CLP 0 billion CLP 3. ~ 00 billion USD,4 million Working Capital Increase () USD 89 million () Includes New Productive Plants, Bottling lines, Productive Capacity Increase in existing plants, New Distribution Centers and Warehouses, Packaging, Marketing and IT capex requirements; () Observed exchange rate as of Extraordinary Shareholders Meeting follow on approval: CLP 49,90 / USD (June 8, 03) 9

21 Others Wines Rio de la Plata Chile with substantial opportunities to continue growing Organic growth Capex plan for 03 to 00 Categories Beer Temuco Santiago Valdivia TBD TBD Valdivia Non Alcoholic Temuco Santiago Santiago TBD Santiago Antofagasta Spirits Ovalle IV Region Beer Luján Uruguay Argentina Cider Ciudadela Pilar Lujan Wine Molina TBD Logistics Temuco Chillán Supermercado Valdivia Calama Rancagua Modula Puente Alto Talcahuano Melipilla Pto. Montt Packaging Unit Mold Blower Mold Blower Blower Capex () CLP 8,797 ~ 00,000 million USD,88 million CLP 3,0 ~ 00,000 million USD,4 million Categories: New Productive Plants Bottling lines Productive Capacity Increase in existing plants New Distributions Centers and Warehouses () Also includes Packaging, Marketing and IT capex requirements. Observed exchange rate as of Extraordinary Shareholders Meeting follow on approval: CLP 49,90 / USD (June 8, 03) 0

22 with substantial opportunities to continue growing Targeted sources of organic and inorganic growth Inorganic growth

23 with substantial opportunities to continue growing More than 0 years successfully executing strategic M&A transactions There are several opportunities for future inorganic growth a) Expand into neighboring markets with a focus on core businesses b) Develop multi-category businesses in Argentina, Uruguay and Paraguay c) Expand into the dairy products market in Chile d) Participate in the instant powders market (ready to mix) such as coffee, tea, soups, powder milk, among others e) Increase market share in the food market (ready to eat) in Chile

24 Synergic Businesses Core Business with substantial opportunities to continue growing Opportunities for future inorganic growth to strengthen our current operations and expand into adjacent categories and markets CHILE ARGENTINA URUGUAY PARAGUAY BOLIVIA PERU COLOMBIA OTHERS Beer Non-alcoholic AREAS OF INTEREST Multi-category (spirits, wine, cider, dairy products) Other: (RTE/RTM) 3

25 Synergic Businesses Core Business with substantial opportunities to continue growing Opportunities for future inorganic growth to strengthen our current operations and expand into adjacent categories and markets CHILE ARGENTINA URUGUAY PARAGUAY BOLIVIA PERU COLOMBIA OTHERS Beer Non-alcoholic Multi-category (spirits, wine, cider, dairy products) Other: (RTE/RTM) Production Distribution 4

26 Synergic Businesses Core Business with substantial opportunities to continue growing Opportunities for future inorganic growth to strengthen our current operations and expand into adjacent categories and markets CHILE ARGENTINA URUGUAY PARAGUAY BOLIVIA PERU COLOMBIA OTHERS Beer Non-alcoholic Multi-category (spirits, wine, cider, dairy products) Other: (RTE/RTM) Five Investment Criteria for inorganic growth. projects with high potential profitability in the medium run, with a possible limited dilutive short term effect;. projects that will enable us to buy or potentially build relevant and large scale operations; 3. projects that will enable us to keep developing multicategory; 4. projects with proprietary brands and/or long term license agreements with strategic partners;. projects that will provide us competitive balance.

27 run by experienced controlling shareholders and management. Two partners with complementary strengths & proven capabilities Board of Directors (3) Quiñenco S.A. () Heineken () 0.0% 0.0% 0.0% IRSA 4 Board members belong to Quiñenco S.A. 4 Board members belong to Heineken Independent Board member 3 years old average age and years at the company Quiñenco S.A. Local market knowledge One of the largest conglomerates in Chile controlled by the Luksic Family Listed in Santiago Stock Exchange Heineken Global footprint with operations in over 70 countries, with additional presence in many others markets Strong / leading brands and product innovation Listed in NYSE, London and Amsterdam Senior Management Team (4) 9 members integrate the Senior Management Team 47 years old average age and years at the company () Since 98 0% ownership in IRSA; () Since 003 0% ownership in IRSA; (3) Andrónico Luksic: years in the company (Director since 98 and Chairman since April 03); (4) Includes changes in Senior Management effective on February 04

28 Agenda CCU overview Investment highlights Recent performance Key takeaways 7 3 7

29 3. Recent performance Consolidated latest results CONSOLIDATED (CLP Millons) Q'4 Q'3 D% Total D% Organic Volumes (Th HL),39, Net Sales 334,8 304, Gross Profit 8,784 74, Gross margin (%).% 7.3% Normalized EBIT (),07 8,03 (3.) (3.9) Normalized EBIT () margin (%).7% 9.% Normalized Net Income 40,8 40, Normalized EBITDA () 7,330 73,04 (.) (.0) Normalized EBITDA () margin (%).% 4.% () EBIT is equivalent to Operating Result used in the 0-F form; () EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form. 8

30 3. Recent performance Chile Operating Segment CHILE (CLP Millons) Q'4 Q'3 D% Total D% Organic Volumes (Th HL) 4,3 4,73.. Net Sales 4,77 0, Gross Profit 3,030,0.9.9 Gross margin (%) 4.7% 7.3% Normalized EBIT () 40,78 4,93 (.) (.) Normalized EBIT () margin (%) 8.%.7% Normalized Net Income 30, 34,4 (.) (.) Normalized EBITDA () 0,99 4,97 (8.4) (8.4) Normalized EBITDA () margin (%).4% 7.% () EBIT is equivalent to Operating Result used in the 0-F form; () EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form. 9

31 3. Recent performance Rio de la Plata Operating Segment RIO DE LA PLATA (CLP Millons) Q'4 Q'3 D% Total D% Organic Volumes (Th HL),49,4.0 (3.) Net Sales 7,84 7,748.3 (4.) Gross Profit 44,33 44,99 (.) (.9) Gross margin (%) 7.8%.7% Normalized EBIT (), 8,974 (7.3) (9.7) Normalized EBIT () margin (%) 8.%.3% Normalized Net Income,077 4,409 (7.) (80.7) Normalized EBITDA () 9,0,4 (.) (.3) Normalized EBITDA () margin (%).8%.7% () EBIT is equivalent to Operating Result used in the 0-F form; () EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form. 30

32 3. Recent performance Wine Operating Segment WINE (CLP Millons) Q'4 Q'3 D% Total D% Organic Volumes (Th HL) Net Sales 3,37 9, Gross Profit,834 9, Gross margin (%) 43.% 33.% Normalized EBIT (),38 40,.,. Normalized EBIT () margin (%) 4.7%.4% Normalized Net Income 4,377 8,3.7,3.7 Normalized EBITDA () 7,0, Normalized EBITDA () margin (%) 9.3%.7% () EBIT is equivalent to Operating Result used in the 0-F form; () EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization) used in the 0-F form. 3

33 Agenda CCU overview Investment highlights Recent performance Key takeaways 7 3 3

34 Key takeaways. run by experienced controlling shareholders and management.. Leading multi-category branded beverages player. with substantial opportunities to continue growing. driven by a unique business model 4. Outstanding track record and proven financial strength 3. with strong presence in highly attractive markets. 33

35 34