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AGM-update-June-2015

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A REVIEW OFTHE LAST YEARHEY EQUITY PUNK,Here is your handy guide to the last 12 months at BrewDog. The last yearhas been great for BrewDog as we continued our mission to make otherpeople as passionate about great craft beer as we are. We had three mainfocuses for the last year:1 To make the best beers we possibly can.2 To be the best company to work for that we can be.3 To provide mind-blowingly epic service to all our amazing customers.And these will remain our three key focuses for the next 12 months too.We have loads of exciting plans going forward and it’s great that our EquityPunk community is the heart and soul of BrewDog as we continue togrow.Highlights from the last year include:1 Growing our turnover by 76% over 2014We shipped 89,000 HL from our Ellonbrewery as we continued on ourturbocharged growth trajectory. Wewere the fastest growing food & drinkscompany in the UK for the 3rd yearrunning.2 Becoming a Living Wage EmployerAs the first company in our industry toadopt the Living Wage, we’re leading theway in not just beer, but our approach tobusiness.3 Winning 3 Gold Medals at the WorldBeer AwardsOur goal is to make the best beers wepossible can and we aspire to make thebest beers in the world.4 Launching our new packagingWe launched our new packaging andbranding in 2014 and the response hasbeen ace.5 Expanding our brewery, building ournew warehouses, our new offices andopening 14 new bars.We spent a lot of the last year building6 Installing a Jacuzzi in our new offices,which is permanently filled withPunk IPA.This is obviously a lie. But next year wemight just make it a reality.Love hops and live the dream2 | AGM UPDATE THE GOOD SHIP BREWDOG A REVIEW OF LAST YEAR AGM UPDATE | 3


THINGS THAT ROCKEDIN THE LAST 12 MONTHS2014 OVERALL PERFORMANCE EXPANDING BREWDOG HQBECOMING A LIVING WAGE EMPLOYERRELEASING BORN TO DIEOUR NEW CANNING LINE14 NEW BARS OPENED GLOBALLYBREWING COLLABORATIONS WITHSEASONS 2 & 3 OF BREW DOGSLAUNCHING EFP IVour dog tap pilot plantour new packagingthe beer truck4 | AGM UPDATE THINGS THAT ROCKED IN THE LAST 12 MONTHS THINGS THAT ROCKED IN THE LAST 12 MONTHS AGM UPDATE | 5


2014 ACCOUNTS AND STATS2014 CONSOLIDATEDTURNOVER £29,614,985GROSS PROFIT £11,457,204GROSS MARGIN 38.7%OVERHEADS £7,778,734FINANCE COSTS £209,144NET PROFIT PRE TAX £3,650,6642014 TRADINGPROFITBREWDOG AROUNDTHE WORLDBREWDOGBARSBREWDOGEXPORTMARKETS£28M£24M£20M£16M£12M£8M£4M£0M2014 ANNUAL TURNOVERKey:2007BrewDog Bars RevenueOverall RevenueBREWDOG IS THEUK’S FASTESTGROWING FOOD &DRINKS BRAND** Sunday Times 2012 &2013, The Grocer 20142008£5,000,0002009£670,000£572,000£162,000 £288,000£4,000 £68,0002010£2,912,00020092008 2010 2011 2012 20132007 2014201120122013201412,00011,00010,0009,0008,0007,0006,0005,0004,0003,0002,000HL SHIPPED JAN ‘13 TO PRESENTTOP TEN CUSTOMERS SALESBY VALUE JAN ‘14 - DEC ‘14£2.5M£2M£1.5M£1M£0.5M£0MCASK SWEDENSAINSBURYSALES & COJD WETHERSPOONDIAMOND BEERTESCOCASK NORWAYWHISK-E LIMITEDJAN ‘13FEB ‘13MAR ‘13APR ‘13MAY ‘13JUN ‘13JUL ‘13AUG ‘13SEP ‘13OCT ‘13NOV ‘13DEC ‘13JAN ‘14FEB ‘14MAR ‘14APR ‘14MAY ‘14JUN ‘14JUL ‘14AUG ‘14SEP ‘14OCT ‘14NOV ‘14UK OFF-TRADE TOP TEN CRAFT BEERS£4.2M£3.0M£2.4M£1.6MJBBFOUR CORNERS£1.6M£1.6MDEC ‘14JAN ‘15FEB ‘15MAR ‘15APR ‘15INDIVIDUAL BEER SALESBY VOLUME (HL)JAN ‘14 TO PRESENT£1.4M£0.9MPUNK IPA (53,819)DEAD PONY CLUB (53,819)FIVE AM RED ALE (5,878)FAKE LAGER & THIS. IS. LAGER. (8,775)SPECIAL/ONE-OFF (4,817)VALUE % CHG YAAVERAGE £/L£0.8M£0.8M+73.7%£4.80INNIS & GUNNORIGINAL+4.6%£4.10SAMUEL ADAMSBOSTON LAGER+37.6%£4.10GEM BLUE MOON BROOKLYNLAGER6 | AGM UPDATE 2014 ACCOUNTS AND STATS 2014 ACCOUNTS AND STATS AGM UPDATE | 7BREWDOGIPA+43.0%£3.30+27.2%£4.10+49.5%£4.80SIERRANEVADA+17.2%£5.00INNIS & GUNNRUM CASK-10.8%£4.50DEAD PONYPALE ALE+179.9%£5.30BITTER &TWISTED+16.7%£4.30


EQUITY PUNKS IV IS CURRENTLYOPEN TO INVESTORS.YEAR FOUNDED2014 TURNOVER2014 PRE-TAX PROFITCOMBINED PROFIT OVER LAST TWO YEARSAVERAGE ANNUAL GROWTH OVER LAST 3 YEARSP/E RATIOVALUATIONBREWDOG2007£30M£3.6M£6.0M71%42.28£306MFEVER-TREE2005£34M£2.5M-£0.6M46%108.36£350MFevertree is another fast growing drinks company. Their valuation is an interestingcomparison to BrewDog’s EFP IV valuation as their shares are traded on the AIM stockexchange at the valuation shown above.THE BREWDOG CHARTERWE BLEED CRAFT BEERTHIS IS OUR TRUE NORTH.WE ARE UNCOMPROMISINGIF WE DON’T LOVE IT, WE DON’T DO IT. EVER.WE BLOW SHIT UPWE ARE AMBITIOUS. WE ARE RELENTLESS.WE TAKE RISKS.WE ARE GEEKSLEARN OBSESSIVELY. SHARE EVANGELICALLY.WITHOUT US, WE ARE NOTHINGWE ARE BREWDOGOn 6th November 2014 we hadour first ever trading day with theplatform provided by Asset Match.Shares were openly trading at £125per share and over £268,375 ofshares were sold. This gave all EquityPunks who wished to sell shares agreat return on their investment.CLOSING DATE INCREASEEFP I FEB 2010 443%EFP II DEC 2011 426%EFP III DEC 2013 31%SHARES HAVE NOW BEEN SUB-DIVIDEDTo be amazing, we need to not onlymaintain our culture but look to enhance itas we grow and add loads of new people toour awesome team. We have been workingon a project to help define just what makesBrewDog so BrewDog, and articulatingwhat exactly is it that all of our incrediblepeople have in common.Understanding how these things makeour company’s culture so strong helps usto deliver on our mission of making otherpeople as passionate about great craft beeras we are. We asked our team what theythought Being BrewDog meant, and theBrewDog charter was developed as a resultof the common themes.8 | AGM UPDATE EQUITY FOR PUNKS IV THE BREWDOG CHARTER AGM UPDATE | 9


THE BREWDOGBREWERYLOCATED ON OUR 5.5 ACRE GREEN FIELDSITE IN ELLON, JUST NORTH OF ABERDEEN,OUR STATE OF THE ART ECO BREWERYIS ONE OF THE MOST TECHNOLOGICALLYADVANCED AND ENVIRONMENTALLYFRIENDLY BREWERIES IN THE WORLD.WE HAVE JUST COMMISSIONEDOUR STATE OF THE ARTCANNING LINE. CAPABLEOF FILLING OVER 30,000+CANS PER HOUR THIS IS THEMOST ADVANCED CRAFT BEERCANNING SET UP IN EUROPE.OUR NEW 10HL PILOT PLANTIS NOW CONCOCTING SMALLBATCH EXPERIMENTALBEERS ON AN ALMOST DAILYBASIS. THIS INCLUDES OURFIRST FORAY INTO SOURBEERS TOO.WE HAVE AN EVERINCREASING FOCUS ON BEERQUALITY THROUGH OURAMAZING LABORATORY ANDTASTER TRAINING SCHEMES.WE ARE RELENTLESSLYFOCUSED ON CONTINUALLYSTRIVING TO BREW WORLD-CLASS CRAFT BEERS.WATCH OUT FORBORN TO DIE,JACK HAMMERIN CANS,HINTERLAND,NEW PARADOXRELEASESAND DEATH ORGLORY SOON!10 | AGM UPDATE THE BREWDOG BREWERY THE BREWDOG BREWERY AGM UPDATE | 11


THE FUTURE OF THETHE BREWDOG BREWERYthe sour beerfacilityWE HAVE HAD THE PLANS DRAWN UP TO EXPAND OUR BREWERY FOR AWHILE, AND WITH YOUR INVESTMENT WE ARE MAKING THEM HAPPEN.We have commenced work constructingan adjoining 5000m 2 building that willhouse a brand new 300HL brewhouse tooperate in tandem with our existing 100HLbrewhouse. The new brewhouse, alongwith additional fermentation tanks, willenable us to increase our capacity fivefold.This will give us the beer we need tokeep up with the growing global demand,enabling us to continue to grow andcontinue to add value to your investment inBrewDog.This project will also enable us to furtherinvest in green technologies at our brewery.We are currently doing feasibility studieson an advanced water treatment plant aswell as a biomass generator and fuel celltechnologies. We employ over 90 peopleat BrewDog HQ and we are proud to be aLiving Wage employer. This investment willnot only fund our brewery expansion butalso power the creation of over 130 newjobs in Ellon as we fly the flag for greatquality produce made right here in the UK.NOWBUILDING!INVESTMENT FROM EQUITY FOR PUNKSWILL HELP US BUILD A BREWDOG SOURBEER FACILITY, COMPLETE WITH A VISITORCENTRE. THIS PURPOSE BUILT FACILITYWILL GIVE US THE ABILITY TO EXPERIMENTAND CREATE WILD AND SOUR BEERS WITHALL THE EDGE, ATTITUDE AND ANARCHY YOUEXPECT FROM A BREWDOG CREATION.12 | AGM UPDATE THE FUTURE OF THE BREWDOG BREWERY THE SOUR BEER FACILITY AGM UPDATE | 13


THE COLUMBUSPROJECTWe are very close to finalizing a deal to acquire a 42acre site in Columbus, Ohio. The site has excellentwater, gas and electric connections as well as thepotential to be serviced by rail. On this site weintend to build a state of the art 100,000 sq ft craftbrewery complete with our American offices, taproom, visitor centre and craft beer restaurant.THE DOG OF WALL STREETWE WOULD HELP FUND OUR COLUMBUS PROJECT THROUGH EQUITYFOR PUNKS USA. WE HAVE SET UP BREWDOG USA INC WHICH ISCURRENTLY A 100% SUB OF BREWDOG PLC. OUR AMERICAN EFPPROJECT WOULD FURTHER BUILD OUR USA COMMUNITY AS WELOOK TO ESTABLISH A NEW BREWDOG BREWERY STATESIDE.BREWDOGPLCEFP IVINVESTMENTThe new facility will be designed to brew some of thebest craft beers in the world as well as to operate in themost environmentally friendly way possible as we lookto minimise the carbon footprint of the operation fromthe get go. The new Columbus brewery would see usrecreate our established brewing facility we have built inScotland, and enable us to get our beers into more pawsin America without having to ship it across the Atlantic.BREWDOGUSA INCEFP USAINVESTMENT14 | AGM UPDATE THE COLUMBUS PROJECT BEWDOG USA AGM UPDATE | 15


NEW BREWDOG BARSNEW BREWDOG SITESBEER MECCAS. HOP TEMPLES. CATHEDRALS OF MALT. BEACONS OFHOPE, LAUGHTER AND OCCASIONAL HELL-RAISING IN THE CITADEL.BREWDOGBARBOTTLEDOGDOGHOUSEBREWDOG ANGELBREWDOG BRIGHTONBREWDOG LEEDS IIGLASGOW MERCHANT CITYBREWDOG DALSTONBREWDOG SOHOSHUFFLEDOGBOTTLEDOGBEER STOREDOG EATDOGBREWDOG OSLOBREWDOG ROMEBOTTLEDOG EDINBURGHDOGTAPBREWDOGCONCEPTSTHESOMEWHEREFIXBREWDOG BERLINBREWDOG STOCKHOLM IIBREWDOG BRUSSELSBREWDOG ABERDEEN IIBREWDOG EDINBURGH II16 | AGM UPDATE NEW BREWDOG BARS NEW BREWDOG BARS AGM UPDATE | 17


BREWDOG HOTEL& DISTILLERYTHE BRAND NEWEQUITY PUNKS WEBSITETHE KENNELIn addition to our bars, BottleDog sitesand taproom, we are looking to opena craft beer-led hotel in the north eastof Scotland. This venue would offerour vision of the ideal accommodationfor passionate craft beer comradesmaking the pilgrimage to visit ourEllon brewery. And, of course, ourshareholders would receive a discounton bookings. It may well have PunkIPA on tap in every room…GRANITE CITY CRAFT DISTILLERYFollowing in the footsteps of AnchorBrewing Company, Dogfish Head andBallast Point, we want to complement ourbrewing with craft distilling. The GraniteCity Craft Distillery would be located atour Ellon brewery and Equity for Punksinvestment will help establish this newventure. We want to take the sameapproach we have to brewing beer andapply it to the world of distillation. Weintend to make small batch spirits anduse our BrewDog beers as the base. Wealso intend to mature some of our spiritsin oak, then use those oak barrels to ageour beers.THE NEW IMPROVED EQUITYPUNK WEBSITE IS NOW LIVE!YOUR HOME FOR CHATTINGALL THINGS BREWDOG, BEER,BREWING AND WHATEVERELSE YOU FANCY HASRELAUNCHED WITH SOME ACENEW FEATURES.All shareholders have now been sent an email containing a unique link to signin to their individual account on the brand new Equity Punk forum. Click the linkin the email to log in and get exploring! On your account, you will now find thenumber of shares you own and all your historic activity on the forum. If you’venot got the email or are yet to create an Equity Punk forum account, just usethe email address you used to invest and your account will be there ready andwaiting for you!IF YOU HAVE ANY PROBLEMS ACCESSING YOURACCOUNT, JUST DROP US A LINE ONEQUITYPUNKS@BREWDOG.COM AND SOMEONEWILL HELP YOU OUT!18 | AGM UPDATE BREWDOG HOTEL & DISTILLERY A NOTE FROM ME AGM UPDATE | 19


UPCOMING BEERS &THE EFP BOTTLEBOXA FORWARD LOOKINGCONCLUSION BY JAMESUPCOMING BEERSWe’ve got loads of awesome beers in theworks, including some of our most excitingcollaborations to date. Look out for BrewDogvs Beavertown and BrewDog vs Ballast Pointvery soon! Jack Hammer has already startedcanning, and will be available imminently inhandy little cans. Abstrakt’s had a facelift andis looking better than ever – expect to seethe brand new look on our next instalmentof bottled artistry! And Hop Fiction will bemaking a much anticipated comeback as oursummer seasonal, after coming second in thePrototype Challenge 2014.EQUITY PUNKS’BOTTLEBOX BEER CLUBAs an investor, you will soon be gettingexclusive access to our Equity for Punks beerclub. If you invest £1,900 or over in Equityfor Punks IV, you will receive a year’s freesubscription to the Equity Punks BottleBoxbeer club as well as a year’s Abstrakt Addictsmembership! Our BottleBox beer club will seeus collate the most exciting BrewDog beers aswell as some of the best beers from all overthe world and ship them direct to your door sixtimes per year. This club is only open to EquityPunk investors.As you can see we have some prettyexciting plans in the pipeline here atBrewDog. We are relentlessly focused onbrewing the best beers we can, buildinga great team and taking the best care wecan of our customers and of our awesomeEquity Punk investors.Between brewing new beers, our epicEllon brewery expansion, a sour beerfacility, a craft distillery, loads of new bars,a craft beer hotel and an amazing new craftbrewery in Columbus Ohio we are goingto be pretty busy over the next 12 months.But that is just how we like it.With the Equity Punk investments we havegrown a hell of a lot over the last few yearsand with our current line up of projectswe are confident we can continue to growBrewDog and add further value to yourinvestment in our company.Thanks for being part of this crazy journeywith us. None of what we have achievedand none of what we are working towardswould be possible without our EquityPunks.James and the BrewDog Teamx20 | AGM UPDATE UPCOMING BEERS AND THE EFP BOTTLEBOX A FORWARD LOOKING CONCLUSION BY JAMES AGM UPDATE | 21


“HERE’S TO THE CRAZY ONES. THE MISFITS. THE REBELS. THE ONES WHO SEE THINGS DIFFERENTLY.BECAUSE THE PEOPLE WHO ARE CRAZY ENOUGH TO THINK THEY CAN CHANGE THE WORLD, ARE THE ONES WHO DO.”Steve Jobs22 | AGM UPDATE AGM UPDATE AGM UPDATE AGM UPDATE | 23


IF WE DISBELIEVE EVERYTHING, BECAUSE WE CANNOT CERTAINLY KNOW ALLTHINGS, WE SHALL DO MUCH WHAT AS WISELY AS HE, WHO WOULD NOT USEHIS LEGS, BUT SIT STILL AND PERISH, BECAUSE HE HAD NO WINGS TO FLY.John Locke.FOR MORE INFORMATION, VISIT WWW.BREWDOG.COM/EQUITYFORPUNKS

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