Quarterly divisional seminar series Latin America June 2015 This - PowerPoint PPT Presentation

Investor relations Quarterly divisional seminar series Latin America June 2015

This presentation includes „forward - looking statements‟ with respect to certain of SABMiller plc‟s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, including, without limitation, those regarding the Company‟s financial position, business strategy, plans and objectives of m anagement for future operations (including development plans and objectives relating to the Company‟s products and services) are forwar d- looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company‟s present and future business strategies and the environment in which the Company will operate in the future. These forward-looking statements speak only as at the date of this document. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company‟s expectations with regard thereto or any change in events, conditions or circums tances on which any such statement is based. The past business and financial performance of SABMiller plc is not to be relied on as an indication of its future performance. All references to “EBITA” in this presentation refer to earnings before interest, tax, amortisation of intangible assets (excluding software) and exceptional items. EBITA also includes the group‟s share of associates‟ and joint ventures‟ EBITA on the same basis. All references to “organic” mean as adjusted to exclude the impact of acquisitions and disposals, while all references to “co nstant currency” mean as adjusted to exclude the impact of movements in foreign currency exchange rates in the translation of our re sults. References to “underlying” mean in organic , constant currency. Quarterly divisional seminar series | Latin America SABMiller plc June 2015 2

• One of the world‟s largest brewers, with total beverage volumes of 324mHL • Group net producer revenue* of $26 billion • EBITA* of $6.4 billion • 72% of EBITA from developing economies** • 94% of lager volumes from No. 1 or 2 market share positions • Strategic partnerships with Castel, CRE, Efes and The Coca-Cola Company; joint venture with Molson Coors in the US • One of the world‟s largest bottlers of Coca -Cola drinks * F15 Preliminary Results ** Including attributable share of associates and joint ventures for the twelve months to March 31, 2015 Quarterly divisional seminar series | Latin America SABMiller plc June 2015 3

Key metrics Group NPR Total volumes Group EBITA 13% 12% 18% 11% 18% Latin America (324 mHL)* 1 ($26.3 bn) 1 ($6.4 bn ) 1 ** 17% Africa 22% 12% 20% 35% Asia Pacific 22% 15% Europe 30% 28% 29% North America* Latin America growth % (organic constant currency basis) Volume NPR EBITA 14 11 11 10 8 8 8 7 5 3 3 3 ¹ As reported for SABMiller plc F15 Preliminary Results; F15 F12 F13 F14 * Excludes contract brewing, incl. soft drinks and other alcohol beverages; ** Excludes exceptional items. Quarterly divisional seminar series | Latin America SABMiller plc June 2015 4

Top 10 SABMiller breweries 1 Top 15 SABMiller brands by volume 1 Arequipa Peru Snow Coors Light 2 Boyacá Colombia Miller Lite 3 San Salvador El Salvador Carling Black Label Poker 4 Ate Peru Castle Lager Cristal 5 Quito Ecuador Castle Lite 6 Brasov Romania Hansa Pilsener Zubr 7 San Juan Peru Aguila Light Tyskie 8 Motupe Peru Pilsener Latin American brands 9 Cusco Peru Pilsen Callao Chibuku 10 Tocancipá Colombia Aguila 1. Ranking on16 KPIs (sustainability, productivity, quality and costs ) Quarterly divisional seminar series | Latin America SABMiller plc June 2015 5

Alcohol market share F15 F15 - F13 gain 1. Establishing beer as the leading alcohol choice Colombia 65% +2.1% of consumers Peru 57% -1.4% Ecuador 55% +0.2% 2. Making beer more affordable and accessible Panama 49% +0.9% Honduras 62% +3.3% 3. Tackling the scourge of illegal alcohol Salvador 41% +2.7% New offerings 4. Meeting the aspirations of our premium consumers Bulk-packs 5. Bringing new offerings to market 6. Improving communication with evolving consumers Premiumisation Quarterly divisional seminar series | Latin America SABMiller plc June 2015 6

Medium Term F13 - F15 Guidance CAGR March 2013 Beer volume 4 - 6% 1% NPR/HL (@cc) 3 - 5% 3% Margin expansion per annum 60 - 80 bps +110 bps Quarterly divisional seminar series | Latin America SABMiller plc June 2015 7

Randy Ransom Grant Harries Fernando Zavala Lombardi Karl Lippert 2011 President 2008 Senior Vice President 2013 President 2013 President SABMiller Latin America Marketing & Innovation SABMiller Colombia SABMiller Peru SABMiller Latin America 2006 President 2012 President 2009 President SABMiller Colombia 2006 Chief Marketing Officer SABMiller Peru SABMiller Panamá Miller Brewing Company 2003 Managing Director 2009 Managing Director 2006 Vice President SABMiller Poland 2004 Senior Vice President SABMiller Russia Corporate Affairs Coca-Cola Trademark, North America SABMiller Peru 2003 Managing Director 2006 President SABMiller Hungary 2000 Chief Marketing Officer SABMiller Honduras FEMSA Cerveza 2000 Sales & Distribution Director SABMiller Europe Joined 1992 Joined 2006 Joined 2006 Joined 1984 Quarterly divisional seminar series | Latin America SABMiller plc June 2015 8

President SABMiller Latin America

Executing SABMiller strategy Karl Lippert 10 Total beverage growth orientation 16 Randy Ransom Latin America occasion-based growth strategy 22 Innovation and consumer engagement 42 Grant Harries Winning with retailers 46 Fernando Zavala Growing sustainability 55 Karl Lippert Liberating resources 62 Growth profile 69 Quarterly divisional seminar series | Latin America SABMiller plc June 2015 10

• 6% NPR growth CAGR ¹ Drive superior topline growth through • 12% NPR from innovation 3 strengthening our brand portfolios and expanding the beer category • 32% international brands growth 4 • 11% EBITA growth CAGR ¹ Build a globally integrated organisation to • 700 bps margin growth since F10 2 optimize resources, win in market and reduce • 64% RONA 3 costs • $8.3bn operating cash flow 1 • 95% NPR from markets with PCC <45 litres 3 Actively shape our global mix to drive a • 5% soft drinks growth 1 superior a growth profile • MGD footprint across continent, including Brazil • Canada operations and Miller Lite expansion ¹ F10-15, constant currency 2 Reported currency 3 F15 Preliminary Results 4 F10-F15 constant currency; excluding Canada Quarterly divisional seminar series | Latin America SABMiller plc June 2015 11

Net producer revenue 5.8 ( $‟ bn, at F15 constant currency) 5.4 5.2 4.8 CAGR 4.4 4.3 F10 F11 F12 F13 F14 F15 4.4 4.7 5.3 5.8 5.7 5.8 Reported NPR 5.2 2.2 11.0 7.5 4.0 6.3 NPR growth (@ F15 cc) (%) 3.4 0.2 9.1 2.9 2.0 3.1 Volume (%) 1.6 4.8 1.8 5.0 1.8 3.1 Pricing (%) 0.2 -2.8 0.1 -0.4 0.2 0.1 Mix (%) Quarterly divisional seminar series | Latin America SABMiller plc June 2015 12

EBITA 2.22 ($‟ bn, at F15 constant currency) 2.07 CAGR 1.89 1.70 1.50 1.35 F10 F11 F12 F13 F14 F15 1.39 1.62 1.87 2.11 2.19 2.22 EBITA reported 31.6 34.4 35.2 36.4 38.2 38.5 EBITA margin Quarterly divisional seminar series | Latin America SABMiller plc June 2015 13

Operating cash flow (post-exceptional) Return on net assets ($‟ bn) (%) 64 1.5 8.3 59 58 1.6 52 1.3 48 1.4 42 1.2 1.3 F10 F11 F12 F13 F14 F15 Total F10 F11 F12 F13 F14 F15 Quarterly divisional seminar series | Latin America SABMiller plc June 2015 14

Beer PCC Global average GDP/capita 90 ABInBev strongholds Panama 80 Brazil “Peak beer” 70 PCC threshold Mexico 60 Peru 50 Dom Rep Paraguay Colombia Argentina 40 Ecuador Bolivia Chile 30 Uruguay Important Heineken El Salvador markets 20 Honduras 96% of SABMiller Latin 10 America volumes 0 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 GDP per capita $ Quarterly divisional seminar series | Latin America SABMiller plc June 2015 15

DRIVE SUPERIOR TOPLINE GROWTH High price High beer share Medium beer share Special occasions Special Low beer share occasions ( ) Total beverage volume (18mHL) Socializing out of home Meal @home (27mHL) Meal Socializing out of home Less beer OOH More beer (30mHL) relevance (7mHL) relevance Socializing Breakfast @home and other Chilling (30mHL) (20mHL) @home Socializing at home (20mHL) Low price Quarterly divisional seminar series | Latin America SABMiller plc June 2015 16