PDF CELEBR ATING PROGRE SS

United Spirits Limited

Annual Report 2018-19

CELEBRATING PROGRESS

Inside this report

Corporate Overview

Key performance indicators

2

Corporate profile

4

Portfolio

8

Management messages

10

Board of Directors

14

Executive Committee

15

Market drivers

16

Brand experiences

18

Culture and human capital

22

Corporate citizenship

24

Compliance and ethics

28

Awards and accolades

30

Corporate Information

32

Statutory Reports

Directors' Report

33

Corporate Governance Report

41

Management Discussion and Analysis

59

Business Responsibility Report

96

Financial Statements

Standalone Financial Statements

108

Consolidated Financial Statements

184

AT A GLANCE

#1

SPIRITS COMPANY IN INDIA^

#2

PLAYER IN THE GLOBAL SPIRITS MARKET^

AA+

LONG-TERM CREDIT RATING (CRISIL AND ICRA)

CGR2

CORPORATE GOVERNANCE RATING FROM ICRA

ONE OF THE HIGHEST

CONTRIBUTORS TO THE STATE GOVERNMENT'S REVENUES

^ (IWSR 2019)

Winning performance

Revenue from operations

Profit after tax

I28,512 Cr I659 Cr

I26,069cr

I562cr

EBITDA margin

14.3%

12.6%

Volume (cases sold)

81.6 Mn

78.5m

Earnings per share

I9.1

I7.7*

Gender diversity

People reached via sustainability & public awareness programmes

15%

33.69 Mn

11%

3.35 Mn

*(adjusted for the 1:5 stock split which became effective from FY19) Basis Standalone Financials.

FY19

FY18

Water usage

3.5 L/L

3.5 L/L

Energy consumption

0.97 kWh/L

1.09 kWh/L

More information online at

1

Celebrating Progress

In the past five years, we have come a long way in transforming our business to win in the world's fastest growing economy and largest whisky market, India. The progress made over the years brings alive our purpose of `Celebrating Life, Every Day, Everywhere'. At the core of this approach is a commitment to support responsible consumption ? as doing so is good for consumers and business. Today, Diageo India is a unique blend of heritage, brands and people that are sensitive to consumer and community needs.

We measure our performance through a larger prism of partnerships, how we engage and empower our stakeholders and society. As India's consumption-led economy drives demand, the evolved consumer today, aspires to drink better. Also, with attitudes towards alcohol changing, any celebration is incomplete without our brands.

Through innovative marketing, we bring our brands into relevant consumer occasions and brand purpose to popular culture. The relation we share with our customers and partners is based on value that helps in making special moments memorable through high quality and unique experiences.

Our employees are our partners in progress. We have mirrored Diageo processes and policies, creating opportunities for progression within and outside India. Today, the organisation is agile and aligned with evolving industry requirements and business aspirations.

We have set new standards of governance and compliance for the industry to follow so that business is done the right way.

Today, many governments' value the perspective and solutions we offer to create a compelling, win-win proposition for all. This also aids economic growth within the agricultural, tourism and hospitality sectors, allied with our business. Our sustainability efforts focus on issues most material to our stakeholders, and to us, as a business. As an inclusive business, we have created a national movement on road safety, contributed to building thriving communities and minimised environmental impact of our manufacturing units.

Over the years, our focused efforts to reduce interest costs and deleverage debt have resulted in improved credit ratings and value creation for our shareholders. We continue this journey by remaining steadfast in our determination to collaborate and craft pathways of progress for all.

Celebrating Life, Every Day, Everywhere!

2 Key performance indicators

Delivering consistent growth and value creation

Revenue from operations (I in Crore)

20,502

23,444

25,399

26,069

28,512

Profit after tax (I in Crore)

659 562

170 122 (195)

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

EBITDA (I in Crore)

971 886

1,028

1,287

486

EBITDA margin (%)

10.70

11.40

12.60

14.30

6.00

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Profit after tax margin (in %)

7.30 6.90

1.50

2.00

(2.40)

Earnings per share ( I per share )

9.10 7.70

1.70

2.30

(26.90)

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Upto 2015, Accounting Standard was IGAAP. FY 2017 onwards we follow Ind AS. No CAGR for financials due to change in financial reporting. Basis Standalone Financials.

3

Corporate Overview

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

Return on Equity (%)

25 23

9 7 (10)

Gender diversity (%)

15.00

11.00

11.00

7.50

8.00

Total energy consumption (in kWh/litre)

1.50

1.10

1.09

0.99

0.97

Debt/Equity

2.50

2.45

2.10

1.30 0.80

Water consumption (in litre/litre)

6.50 6.00

4.50

3.50

3.50

Total Recordable Accident Rate (Per 1000 FTE)

7.40

3.80

1.80

1.30

1.30

Diageo India Annual Report 2018-19

FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19

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