Slide 1: F'12 first half results – US call
SABMiller plc F’12 first half results – US call Six months ended September 30, 2011 November 17, 2011 Jamie Wilson, Chief Financial Officer Gary Leibowitz, Senior Vice President, IR
Slide 2: Forward looking statements
Forward looking statements 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
Slide 3: Overview
Overview Consumer demand environment varying widely – Strong fundamentals driving growth in LatAm and Africa – Slowing growth in Asia – Weak demand in the US and Europe Organic volume growth of 3% reflects this mixed picture Pricing and mix improvements in all regions other than Europe – Organic, co
Slide 4: Divisional highlights: Latin America
Divisional highlights: Latin America Strong volume growth in beer and soft drinks – Widespread brand and pack enhancements – Affordability in Colombia, Honduras, El Salvador – Malt* growth: Pony Malta and Maltizz in Colombia Double digit EBITA growth, margin expansion – Selective price increases – P
Slide 5: Divisional highlights: North America
Divisional highlights: North America Polarisation amongst consumers and segments Softness in premium light segment – Unemployment in key demographics – Segment share gains for Coors Light – Price gap reduction vs. below premium and imports/crafts – Consumer uptrading into craft segment – New work on
Slide 6: Divisional highlights: Europe
Divisional highlights: Europe Poor summer weather affected volumes Competitor actions reducing industry profitability – Permanent price reductions – Deeper modern trade discounts – Significant marketing and investment in economy brands, encouraging consumer downtrading Slow, tenuous economic recover
Slide 7: Divisional highlights: Africa
Divisional highlights: Africa Market facing investments drive volume and share gains – Steady improvement in market execution – Tanzania and Ghana: strong share gains in competitive environments Expanding portfolios – Premium segment: Castle portfolio up 34% – “Affordable” segment: Eagle, opaque bee
Slide 8: Divisional highlights: South Africa
Divisional highlights: South Africa Strong revenue growth despite level lager volumes – Mainstream growth constrained by inflation - food, transport, utilities – Castle Lite outperforms the premium segment, lifting sales mix SAB has stabilised market share – Within the beer category and beverage alc
Slide 9: Divisional highlights: Asia
Divisional highlights: Asia China Strong revenue growth despite severe regional flooding Continuing rise in market share; revenue/hl up 14%* CRSnow continues to lead Chinese industry consolidation India Regional focus delivering improved profitability Numerous brand and package expansions Good growt
Slide 10: Continued progress against our strategic priorities
Continued progress against our strategic priorities Creating a balanced and attractive Developing strong, relevant brand portfolios that win in the global spread of businesses local market Foster’s: leading position in Cusquena +25% attractive Australian beer market Opportunity to deploy the group’s
Slide 11: F'12 first half results Financial review
F’12 first half results Six months ended 30 September 2011 Financial review Jamie Wilson, Chief Financial Officer © SABMiller plc 2011 F12 H1 results 11
Slide 12: Good growth in EPS and dividends
Good growth in EPS and dividends Adjusted EPS 11% 6% 4% US$ Sterling Rand Interim Dividend 21.5 US cents per share – Up 10% © SABMiller plc 2011 F12 H1 results 12
Slide 13: Revenue benefits from firm pricing and volume growth
Revenue benefits from firm pricing and volume growth Group Revenue (including associates and joint ventures) components of performance, US$m 10.2% 0.5% 15,688 3.9% 3.2% 3.1% 14,176 Sept '10* Volume Price/mix Currency Sept '11 Acquisitions Sept '11 Organic * Adjusted for disposals © SABMiller plc 201
Slide 14: Organic, constant currency group revenue per hl performance
Organic, constant currency group revenue per hl performance 6 months to 30 Sept ‘11 SABMiller Total group revenue per hl % ∆ Latin America Europe North America Africa Asia SA Beverages 0% 2% 4% 6% 8% 10% 12% 14% Year on year (%) Figures include our share of associates and joint ventures © SABMiller
Slide 15: Underlying EBITA growth assisted by currency benefits
Underlying EBITA growth assisted by currency benefits EBITA (including associates and joint ventures) components of performance, US$m 4.5% 10.1% 2,701 5.6% (0.6%) 2,466 Sept '10* Underlying Currency Sept '11 Acquisitions Sept '11 Organic * Adjusted for disposals © SABMiller plc 2011 F12 H1 results 1
Slide 16: Organic, constant currency EBITA margin performance
Organic, constant currency EBITA margin performance 6 months to 30 Sept ‘11 EBITA margin % ∆ SABMiller Total Latin America Europe North America Africa Asia SA Beverages (140) (120) (100) (80) (60) (40) (20) 0 20 40 60 80 100 120 140 Basis Points Figures include our share of associates and joint vent
Slide 17: Input costs rise over the first half
Input costs rise over the first half Half year constant currency increase per hl – Total raw materials Up low single digits – Total COGS Higher barley and malt prices Strength of key local currencies partially mitigate rising commodity costs Distribution costs rise as a result of higher fuel costs ©
Slide 18: Business capability programme
Business capability programme Net operating benefits in first half exceed $60m, ahead of expectations – Trinity procurement is delivering increasing benefits – European manufacturing initiative continues to deepen impact on costs and efficiency Process and systems changes advancing – Global template
Slide 19: Cash flow, finance costs and taxation
Cash flow, finance costs and taxation US$m Sept 11 Sept 10 Adjusted EBITDA* 2,913 2,726 Working Capital (incl provisions) 71 90 Capex** 760 614 Free Cash Flow*** 1,479 1,244 Adjusted net finance costs 229 282 Adjusted EBITDA* margin 21.9% 22.2% Effective tax rate 28.5% 29.0% * EBITDA before cash flo
Slide 20: Net debt
Net debt US$m Sept 11 March 11 Non-current borrowings (6,788) (7,115) Current borrowings (1,142) (1,345) Cash and cash equivalents 953 1,071 Borrowings-related derivative financial instruments 494 298 Net debt (6,483) (7,091) Gearing (%) 28.9 31.2 Net debt/Adjusted EBITDA* 1.1 1.3 Weighted average i
Slide 21: Financial outlook – current financial year (pre Foster's & Efes)
Financial outlook – current financial year (pre Foster’s & Efes) Mixed trading conditions expected to continue – Growth in consumer demand across most developing markets – Difficult economic and trading conditions in USA & Europe H2 reported results expected to be impacted by weaker operating curren
Slide 22: Proposed acquisitions
Proposed acquisitions Foster’s Timetable: – 1 Dec ‘11: Shareholder meeting – 16 Dec ‘11: Implementation Date for the transaction Acquisition enterprise value of A$11.5bn Financing: – Committed financing in place, US$12.5bn facility – Blended cost for incremental debt of c.5.0% p.a. (pre-tax) reflect
Slide 23: Conclusion
Conclusion Consumer demand variation between emerging and mature markets SABMiller revenue and profit growth are resilient Our organic growth strategies remain consistent Foster’s opportunity to deploy our leading commercial capabilities Our medium term outlook for growth in volume, revenue and prof
Slide 24: Q&A
Q&A
Slide 25: Supplementary information
Supplementary information © SABMiller plc 2011 F12 H1 results 25
Slide 26: Net debt profile and maturity
Net debt profile and maturity Debt profile Debt Maturity* 0 – 1 Year US$ 242m 21% 27% Dollars 1 – 2 Years US$ 563m Euros Rand Peso Other 2 – 5 Years US$ 4,904m 21% 17% 14% Over 5 Years US$ 774m *excludes cash © SABMiller plc 2011 F12 H1 results 26
Slide 27: Reported EBITA contribution
Reported EBITA contribution EBITA contribution* September 2011 September 2010 Latin America 2% 2% 16% 16% Europe 27% 29% North America 4% 5% Africa 10% Asia 12% South Africa: Beverages 22% South Africa: 20% 19% Hotels & Gaming 16% * Before corporate costs © SABMiller plc 2011 F12 H1 results 27
Slide 28: Financial results
Financial results US$m Sept 11 Sept 10 Change % Reported currency Group revenue 15,688 14,236 10 EBITA 2,701 2,466 10 EBITA margin (%) 17.2 17.3 (10) bps Sales volumes (hl’000) Total 149,775 143,404 4 Lager 123,917 118,988 4 Soft drinks 22,609 21,128 7 Other alcoholic beverages 3,249 3,288 (1) © SAB
Slide 29: EBITA margin performance
EBITA margin performance Organic, constant currency basis Sept 11 Sept 10 23.9% 22.7% 18.4% 17.3% 17.7% 17.2% 17.3% 17.4% 16.8% 16.7% 16.2% 16.0% 10.2% 9.2% Latin America Europe North Africa Asia SA Group America Beverages © SABMiller plc 2011 F12 H1 results 29
Slide 30: Reported EBITA margin performance
Reported EBITA margin performance Sept 11 Sept 10 23.5% 22.7% 17.4% 18.0% 16.8% 17.8% 17.2% 16.7% 16.2% 17.2% 17.3% 16.0% 9.6% 9.2% Latin America Europe North Africa Asia SA Group America Beverages © SABMiller plc 2011 F12 H1 results 30
Slide 31: Reported volumes
Reported volumes* Reported Domestic Lager volumes Sept 11 Change % by country hl ‘000 South Africa 12,290 0 Colombia 9,243 7 Poland 7,947 (2) Peru 5,788 10 Czech 3,828 (1) Russia 3,235 3 Romania 2,859 (8) Ecuador 2,626 5 India 2,317 (7) Italy 2,086 (3) Tanzania 1,565 20 China ** 32,920 10 * excludin
Slide 32: Net debt
Net debt Sept 11 March 11 Average interest rate (gross debt) – % 6.1% 5.9% Net debt currency profile* US dollars 21% 37% Euro 21% 21% SA rand 14% 9% Colombian peso 17% 16% Other 27% 17% 100% 100% * Including the effect of derivatives © SABMiller plc 2011 F12 H1 results 32
Slide 33: Exchange rates
Exchange rates Closing rates currency vs US$ 30 Sep 11 31 Mar 11 30 Sep 10 Colombia 1,915 1,879 1,800 Peru 2.77 2.80 2.79 Honduras 18.97 18.90 18.90 Euro 0.75 0.71 0.73 Poland 3.30 2.84 2.91 Czech Republic 18.33 17.27 18.03 Russia 31.88 28.43 30.40 Romania 3.26 2.91 3.13 Hungary 219.14 187.69 202.57
Slide 34: Balance sheet
Balance sheet US$m Sept 11 March 11* Goodwill and Intangible assets 15,694 16,313 Property, plant and equipment 8,821 9,331 Investment in joint ventures and associates 8,404 8,532 Other non-current assets 944 689 Current assets excluding cash 3,100 3,111 Cash and cash equivalents 953 1,067 Assets of