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SABMILLER PLC - SABMiller plc Trading Update

Release Date: 22/01/2013 09:00
Code(s): SAB     PDF:  
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SABMiller plc Trading Update

SABMiller plc
JSEALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483


SABMiller plc Trading Update

SABMiller plc today issues its interim management statement for the group's third quarter
ended 31 December 2012 which also represents a trading update for the same period. The
calculation of the organic growth rates excludes the effects of acquisitions and disposals.

Lager volumes for the third quarter were 2% ahead of the prior year and soft drinks volumes
were 3% higher, both on an organic basis. Group revenue grew by 8% in the third quarter
and group revenue per hectolitre was up by 5%, both on an organic constant currency basis,
reflecting selective price increases and helped by improved brand mix in most regions. On a
reported basis, including the effect of acquisitions and disposals, total volumes were up 6%
and group revenue was up 17% compared with the third quarter of the prior year. Overall,
financial performance for the quarter was in line with our expectations.

In Latin America the third quarter saw improved growth, with lager volumes up 6%. Colombia
lager volumes grew by 7%, with a price increase taken at the start of December 2012. The
growth was supported by the bulk pack introduced in the prior year as well as strong market
execution during the peak period, with Aguila Light performing particularly well. In Peru,
where we also took a price increase in December 2012, lager volumes were up 6% aided by
expanded trade and fridge coverage. In Ecuador lager volumes declined by 1%, impacted by
softer economic conditions and increased trade restrictions over the peak period. In Central
America lager volumes were up 8%, with a notable performance in our premium brands in
Panama. Lager volumes in Honduras were also boosted by growth in our premium brands,
while in El Salvador the focus on affordable bulk packs and widened trade coverage resulted
in double digit lager volume growth. Soft drinks volumes were up 5%, with increased
availability and pack range extensions of our non-alcoholic malt brands.

In the third quarter Europe lager volumes were up 1% on an organic basis, with some beer
markets impacted by depressed consumer confidence. Following an exceptionally strong
first half, volumes in Poland were down 2% as the quarter was impacted by significantly
weakened consumer sentiment although the overall beer market performed better than
some other alcohol categories. Czech domestic volumes were down 11%, impacted by the
continuing decline in the high value on-premise channel, in which we are more strongly
represented, along with the impact of reduced promotional activity and the selective price
increases in October 2012. Volumes grew by 23% in Romania driven by the continued
strong performance of the new PET pack of economy brand Ciucas. Despite the challenging
economic backdrop, volumes were up mid single digits in other European markets. Our
associate, Anadolu Efes, delivered total volume growth of 5% on a pro forma basis in the
third quarter, with a 7% pro forma decline in beer more than offset by growth in soft drinks of
24%.
MillerCoors domestic sales to retailers (STRs) declined 1.1% in the quarter on a trading day
adjusted basis. Premium light brand volumes were down low single digits, as low single digit
growth in Coors Light was offset by a mid single digit decline in Miller Lite. The Tenth and
Blake division saw double digit growth driven by Leinenkugel’s and Blue Moon. Economy
volumes were down low single digits. Domestic sales to wholesalers (STWs) were down
1.4% in the quarter compared with the prior year.

In Africa lager volumes grew by 4% on an organic basis, cycling double digit volume growth
in the prior year. Most markets continued to grow strongly. Lager growth of 10% in Zambia
continued to benefit from improved availability and distribution networks, further supported
by the operation of the new brewhouse at Ndola from November 2012. Uganda returned to
growth this quarter with lager volumes up 4% despite a slower economy. In Mozambique the
affordable and mainstream segments continued to perform well helping deliver lager volume
growth of 9%. Tanzania volumes continue to decline, down 13% for the quarter, following the
excise related pricing. In Ghana, volumes grew by 9% driven by a strong performance by the
Club brand while South Sudan continued to grow strongly. Lager volume growth moderated
to 5% in Zimbabwe following a price increase taken in the quarter as a result of an
unanticipated excise increase. Our associate Castel delivered lager volume growth of 5% on
a pro forma basis including the combined Angola business. Soft drinks grew by 12% on an
organic basis assisted by strong performances in Nigeria, Zambia and Ghana.

Lager volumes in Asia Pacific declined by 1% on an organic basis (which excludes Australia
volumes altogether), largely as a result of subdued volumes in China, which declined 3%,
due mainly to an exceptionally cold and wet winter across the country. In India, volumes
grew by 18% with continued strong growth across the portfolio. There was an improving
trend in lager volumes in our Australian business, with sales for the quarter 4% below the
prior year on a pro forma basis, excluding the impact of the termination of some licensed
brands, compared with an 8% decline in the previous six months. Total lager volumes,
including discontinued brands, were 15% down. Flagship brand Victoria Bitter grew by 2%,
the first quarter of growth in over 10 years, benefiting from the brand restoration programme
and improved retail engagement. The integration programme in Australia remains ahead of
schedule in respect of both synergy delivery and capability build.

In South Africa, lager volumes grew by 3% despite a challenging economic and trading
environment. In the face of strong competition, the mainstream brand portfolio grew in
aggregate with Castle Lager performing particularly well. Castle Lite, our principal premium
offering, continued its strong performance with more than 20% growth. Targeted brand
investments as well as improved retail execution and customer service continued to have a
positive impact. Soft drinks volumes declined by 3% following a price increase on some
packs in November 2012, partially offset by growth in still drinks.

On 6 December 2012, the group successfully completed an issue of €1,000 million 1.875%
Notes due January 2020 under its US$3,000 million Guaranteed Euro Medium Term Note
Programme. The net proceeds were used to repay in part the bank borrowings incurred to
finance the acquisition of Foster’s in December 2011.
In January 2013, the group agreed to sell its non-core milk and juice business in Panama to
La Cooperativa de Productores de Leche Dos Pinos R.L. (“Dos Pinos”) for a total cash
consideration of US$86 million. Completion of the transaction is subject to approval from the
Panamanian competition authority.

22 January 2013

ENDS


Notes to editors

SABMiller plc is one of the world’s leading brewers with more than 200 beer brands and some 70,000 employees in over 75
countries. The group’s portfolio includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft
and Grolsch; as well as leading local brands such as Aguila (Colombia), Castle (South Africa), Miller Lite (USA), Snow (China),
Victoria Bitter (Australia) and Tyskie (Poland). SABMiller also has growing soft drinks businesses and is one of the world’s
largest bottlers of Coca-Cola products.

In the year ended 31 March 2012 the group reported EBITA of US$5,634 million and group revenue of US$31,388 million.
SABMiller plc is listed on the London and Johannesburg stock exchanges.

www.sabmiller.com
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Enquiries

SABMiller plc
t: +44 20 7659 0100

Catherine May
Director of Corporate Affairs
SABMiller plc
t: +44 20 7927 4709

Gary Leibowitz
Senior VP, Investor Relations
SABMiller plc
t: +44 20 7659 0174

Richard Farnsworth
Business Media Relations Manager
SABMiller plc
t: +44 20 7659 0188

Sponsor: J.P. Morgan Equities South Africa Proprietary Limited

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the “Company”) or any of its affiliates in any
jurisdiction or an inducement to enter into investment activity.

This announcement includes “forward-looking statements”. These statements may contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning.
All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company’s financial position, business strategy,
plans and objectives of management for future operations (including development plans and objectives relating to the Company’s products and services) are forward-looking
statements. These 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. These 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 announcement. The Company expressly disclaims any obligation or undertaking to disseminate any
updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company’s expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is based. Any information contained in this announcement on the price at which the Company’s securities have been
bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance.

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