Slide 1: SABMiller plc Annual results presentation
SABMiller plc Annual results presentation Year ended March 31, 2013 Jamie Wilson, Chief Financial Officer Gary Leibowitz, Senior Vice President May 23, 2013
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: Superior revenue growth and cost control
Superior revenue growth and cost control Organic constant currency Successful revenue management group revenue growth 18% across geographies Tight cost management amidst input 7% 5% 3% 7% 2% cost inflation and capacity expansion Latin Europe North Africa Asia South Operating margins up 40bps o
Slide 4: Emerging market beer growth remains strong
Emerging market beer growth remains strong Segmental share of organic constant currency EBITA* growth Africa and Latin America leading in top line growth delivery 25% 39% Capacity and distribution expansion 4% keeping pace with growth 1% 27% 4% Onitsha, Nigeria August 2012 Mbarara, Uganda, March
Slide 5: Innovation up and down the price ladder
Innovation up and down the price ladder Wider assortment of taste Floral Citrus Bitter profiles and flavours across our businesses Malty Resinous Broader premium portfolios with Spicy widespread local crafts New consumers trading up into Body Green beer due to affordability Warming Sweet strat
Slide 6: Good progress on BCP, ahead of target
Good progress on BCP, ahead of target Cumulative net operating benefits Exceeding expectations in global procurement from BCP Global business systems template fully $321m developed Continuing to develop an integrated group with common category approach, systems, culture $159m F'12 Actual F'13
Slide 7: Latin America
Latin America F13 SABM beer share On-going alcohol share gains of alcohol vs prior (bps) Colombia Successful affordability initiatives Peru Ecuador* Innovation delivering a growing contribution Panama* Honduras El Salvador Premium portfolio volume and share gains 0 200 400 600 Continued co
Slide 8: Latin America
Latin America On-going alcohol share gains Successful affordability initiatives Innovation delivering a growing contribution Premium portfolio volume and share gains Continued cost leverage and productivity * Innovation rate calculated as revenue from innovations introduced in the past 36
Slide 9: MillerCoors
MillerCoors Continued softness in domestic mainstream and economy segments Coors Light continues to gain share in premium light Top line growth achieved through revenue management and favourable pricing and mix Strong innovation in above premium – early success for Redd‟s and Third Shift T
Slide 10: MillerCoors
MillerCoors Continued softness in domestic mainstream and economy segments Coors Light continues to gain share in premium light Top line growth achieved through revenue management and favourable pricing and mix Strong innovation in above premium – early success for Redd‟s and Third Shift T
Slide 11: Europe
Europe Good overall market share performance Effective flagship mainstream brand renovations Improving relationships and discipline in key accounts e.g. in Czech Strong innovation performance and pipelines Robust performance in western Europe despite economic headwinds Mixed Efes perform
Slide 12: Europe
Europe Good overall market share performance Effective flagship mainstream brand renovations Improving relationships and discipline in key accounts e.g. in Czech Strong innovation performance and pipelines Robust performance in western Europe despite economic headwinds Mixed Efes perform
Slide 13: South Africa
South Africa Castle Lite driving premium share gains Strong revenue growth driven by firm pricing and positive mix Enlarged sales force in both beer and soft drinks improving service and penetration Supply chain and overhead savings protecting margins and offsetting rand depreciation © SABMi
Slide 14: South Africa
South Africa Castle Lite driving premium share gains Sales force head count 863 Strong revenue growth driven by firm pricing 737 and positive mix 705 614 Enlarged sales force in both beer and soft drinks improving service and penetration Supply chain and overhead savings protecting margins a
Slide 15: Africa
Africa Serviced Customers (000’s) Robust volume and revenue growth Castle Lager and Castle Lite driving 58 35 regional premium growth and revenue mix 28 31 Significant strides in S&D penetration and F10 F11 F12 F13 in-trade execution Percentage of outlets serviced Expansions and new brewerie
Slide 16: Africa
Africa Robust volume and revenue growth Castle Lager and Castle Lite driving regional premium growth and revenue mix Significant strides in S&D penetration and in-trade execution Expansions and new breweries driving reduced distribution costs Operating leverage and Angola synergies deliver
Slide 17: Australia
Australia Victoria Bitter returns to growth Beer industry trend improving in H2 and Q4 8% SABMiller management actions 4% 0% becoming visible -4% – Brand portfolio repositioning -8% -12% – Retailer engagement -16% 2002 2004 2006 2008 2010 2012 – Realignment of beer focused sales force Integrat
Slide 18: Australia
Australia Beer industry trend improving in H2 and Q4 SABMiller management actions becoming visible – Brand portfolio repositioning – Retailer engagement – Realignment of beer focused sales force Integration and synergies ahead of plan © SABMiller plc 2013 18
Slide 19: Asia Pacific
Asia Pacific China: continuing organic share increase led by Snow 750 Crystal SUPER PREMIUM Poor industry performance in 2012, growth Chinese resuming in 2013 350 Chop PREMIUM Competitive intensity constraining price growth; good progress with premium variants 150 Paint MEDIUM Brush India: accel
Slide 20: Asia Pacific
Asia Pacific China: continuing organic share increase led by Snow Poor industry performance in 2012, growth resuming in 2013 Competitive intensity constraining price growth; good progress with premium variants India: accelerated growth, enhanced portfolios Continued regulatory headwinds Stat
Slide 21: Financial Review
Financial Review Jamie Wilson Chief Financial Officer
Slide 22: Continued strong growth in EPS and dividends
Continued strong growth in EPS and dividends Adjusted EPS Annual Dividend 26% 101 US cents per share – up 11% 12% 11% US$ Sterling Rand © SABMiller plc 2013 22
Slide 23: Strong revenue and earnings growth
Strong revenue and earnings growth March 13 Reported Organic Total volumes 7.2% 3.5% Lager volumes 5.5% 3.3% Organic, constant Reported currency Group revenue 9.9% 6.9% EBITA 14.0% 9.3% EBITA margin 70 bps 40 bps All figures include our share of associates and joint ventures © SABMiller plc 2013 23
Slide 24: Organic, constant currency group revenue per hl performance
Organic, constant currency group revenue per hl performance Group revenue per hl performance, YoY % Year ended 31 March 2013 SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (2%) 0% 2% 4% 6% 8% 10% Figures include our share of associates and joint ventures © SABMi
Slide 25: Input costs in line with expectations
Input costs in line with expectations Full year constant currency increase per hl – Total raw materials up mid-single digits – Total COGS Barley and malt prices continue to rise Higher fuel prices drive up distribution costs Global procurement programme benefits ahead of plan, partly offsett
Slide 26: Organic, constant currency EBITA margin
Organic, constant currency EBITA margin Organic, constant currency EBITA margin performance, YoY basis points change Year ended 31 March 2013 SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (70) (60) (50) (40) (30) (20) (10) 0 10 20 30 40 50 60 70 80 Year-on-year
Slide 27: Business capability programme progress
Business capability programme progress Net operating benefits delivery is strong on the back of procurement initiatives Further progress in indirect categories Packaging materials benefits growth ERP implementations Global Template now deployed in Poland Global IS operating model current
Slide 28: Cash flow, finance costs and taxation
Cash flow, finance costs and taxation March March US$m 13 12 Adjusted EBITDA* 6,835 6,183 Working Capital (outflow) / inflow (incl provisions) (204) 258 Capex** 1,479 1,639 Free Cash Flow*** 3,230 3,048 Adjusted net finance costs 747 542 Adjusted EBITDA* margin 24.1% 23.0% Effective tax rate 27.0% 2
Slide 29: Net debt
Net debt US$m March 13 March 12 Non-current borrowings (16,079) (18,164) Current borrowings (2,469) (1,062) Cash and cash equivalents 2,171 745 Borrowings-related derivative financial instruments 676 620 Net debt (15,701) (17,862) Gearing (%) 57.2 68.6 Net debt/Adjusted EBITDA* 2.3 2.9 Weighted aver
Slide 30: Financial outlook – current financial year
Financial outlook – current financial year Trading conditions are expected to be broadly unchanged – Further revenue growth in our developing markets Continued development of beer and soft drink brand portfolios Maintained focus on cost effectiveness – Including our synergy progress in Austral
Slide 31: Conclusion
Conclusion Strong revenue growth with margin improvement Emerging market beer growth remains strong Innovation up and down the price ladder Good progress on BCP, ahead of target © SABMiller plc 2013 31
Slide 32: Q&A
Q&A
Slide 33: Supplementary information
Supplementary information
Slide 34: EBITA growth
EBITA growth EBITA (including associates and joint ventures) components of performance, US$m 11.4% 9.3% 4.7% (4.6)% 6,421 5,789 5,528 March '12* Underlying Currency March '13 Acquisitions March '13 Performance Organic Reported * Adjusted for disposals © SABMiller plc 2013 34
Slide 35: Group revenue growth
Group revenue growth Group Revenue (including associates and joint ventures) components of performance, US$m 12.4% 3.3% 3.5% 2.2% 34,487 (4.7.%) 30,755 30,087 March '12* Volume Price/mix Currency March '13 Acquisitions March '13 Organic Reported * Adjusted for disposals © SABMiller plc 2013 35
Slide 36: Net debt: currency and maturity profile
Net debt: currency and maturity profile Currency profile * Maturity profile ** 16% 2% 25% 40% 42% 17% 7% 4% 16% 31% US dollar Euro Rand < 1 year 1-2 years 2-5 years > 5 years Colombian peso Aus dollar Other * Including the impact of cross currency swaps ** Cash and cash equivalents netted against cu
Slide 37: Reported EBITA contribution
Reported EBITA contribution* March 2013 March 2012 2% 2% 17% 20% 32% 32% 13% 6% 13% 12% 12% 14% 12% 13% Latin America Europe North America Africa Asia Pacific South Africa: Beverages South Africa: Hotels & Gaming * Before corporate costs © SABMiller plc 2013 37
Slide 38: Financial results
Financial results March March Change US$m 13 12 % Reported Group revenue 34,487 31,388 10 EBITA 6,421 5,634 14 EBITA margin (%) 18.6 17.9 70 bps Sales volumes (hl m) Total 306 286 7 Lager 242 229 6 Soft drinks 57 50 15 Other alcoholic beverages 7 7 7 © SABMiller plc 2013 38
Slide 39: Group Revenue by division
Group Revenue by division March March Change US$m 13* 12** % Organic, constant currency Latin America 7,685 7,158 7 Europe 4,773 4,555 5 North America 5,346 5,250 2 Africa 4,001 3,403 18 Asia Pacific 3,530 3,419 3 South Africa: Beverages 6,302 5,815 8 South Africa: Hotels and Gaming 521 487 7 * Resu
Slide 40: EBITA by division
EBITA by division March March Change US$m 13* 12** % Organic, constant currency Latin America 2,070 1,865 11 Europe 755 750 1 North America 774 755 3 Africa 869 726 20 Asia Pacific 340 319 7 South Africa: Beverages 1,283 1,168 10 South Africa: Hotels and Gaming 150 135 11 * Results for the full year
Slide 41: EBITA margin performance
EBITA margin performance Organic, constant currency basis 26.9% 26.1% March 13 March 12* 21.7% 21.3% 20.4% 20.1% 18.8% 18.4% 15.8% 16.5% 14.5% 14.4% 9.6% 9.3% Latin America Europe North America Africa Asia Pacific SA: Beverages Group * Adjusted for disposals © SABMiller plc 2013 41
Slide 42: Reported EBITA margin performance
Reported EBITA margin performance 27.0% March 13 March 12 26.1% 21.7% 20.2% 20.4% 20.1% 18.6% 17.9% 15.3% 14.4% 14.4% 15.0% 13.6% 9.1% Latin America Europe North America Africa Asia Pacific SA: Beverages Group © SABMiller plc 2013 42
Slide 43: Reported volumes
Reported volumes* Reported Lager volumes by country, hl ’000 March Change March Change 13 % 13 % South Africa 27,280 2 Romania 5,061 24 Colombia 19,867 3 India 5,524 20 Poland 14,520 8 Australia 7,775 n/a Peru 12,989 5 Italy 3,458 4 Czech Republic 6,743 (3) Tanzania 2,899 (8) Ecuador 5,672 2 China *
Slide 44: Exchange rates
Exchange rates Closing rates currency vs US$ 31 Mar 30 Sept 31 Mar 31 Mar 30 Sept 31 Mar 13 12 12 13 12 12 Australia 0.96 0.96 0.97 Mozambique 29.69 27.98 27.42 China 6.21 6.29 6.29 Peru 2.59 2.60 2.67 Colombia 1,832 1,801 1,792 Poland 3.26 3.20 3.13 Czech 20.07 19.32 18.52 Romania 3.44 3.53 3.30 Re
Slide 45: Balance sheet
Balance sheet March March US$m 13 12* Goodwill and intangible assets 29,497 30,129 Property, plant and equipment 9,059 9,162 Investment in joint ventures and associates 10,963 10,592 Other non-current assets 1,069 1,115 Current assets excluding cash 3,512 4,106 Cash and cash equivalents 2,171 745 Ne
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