SABMILLER PLC - SABMiller sees more affordable beer and middle class aspirations as the biggest growth opportunities in Africa

SABMiller sees more affordable beer and middle class aspirations as the biggest growth opportunities in Africa

SABMiller plc
JSE ALPHA CODE: SAB
ISIN CODE: SOSAB
ISIN CODE: GB0004835483


SABMiller sees more affordable beer and middle class aspirations as the biggest growth
opportunities in Africa


At an investor seminar in London today, Mark Bowman, Managing Director SABMiller Africa, will
underline his confidence in the strong long-term growth potential for beer on the continent, and set
out why he believes SABMiller is best-placed to capture this opportunity.

Mark Bowman said: “Africans drink nine litres of beer per head per year, compared with a global
average of 45. So as Africa develops and levels of disposable income increase we expect the rate
of beer consumption to grow significantly. Additionally we anticipate strong GDP growth in Africa
which supports our optimism.

“Consumer access to affordable, formal alcohol and developing brands that tap into local pride and
unlock the aspirations of the growing middle class who are seeking more premium brands will be
the key drivers of top-line growth for our business across Africa.

“The informal market continues to dwarf formal alcohol in Africa. While homemade or illicit alcohol
poses a potential health risk to consumers, it is considerably cheaper so our challenge is to ensure
that we provide price-sensitive consumers with affordable, high quality alternatives.”

African alcohol consumption, including formal and informal alcohol, is in line with the global
average at 6.2 LPA (litres of pure alcohol) per person per year. The potential for growth by bringing
consumers into the formal alcohol market is substantial.

By developing new affordable brands, such as Chibuku Super and Impala (the world’s first
commercial cassava beer in Mozambique), and maintaining moderate pricing regimes on our beer
brands, SABMiller expects to win share from the informal alcohol market and achieve significant
long-term volume and NPR growth in Africa.


Seminar

Jon Kirby, CFO SABMiller Africa will also present alongside Mr Bowman at the seminar. The event
is being webcast live at 09:00 GMT today (9 March 2015) and can be accessed on
www.sabmiller.com along with the slides from the presentation. A replay of the webcast will be
available shortly after the seminar has ended later this afternoon.

Mr Bowman and Mr Kirby will deliver the seminar again tomorrow, 10 March, in New York at 10am
local time.


Highlights from the presentation

The Africa growth fundamentals are compelling. Expectations for 2015 are:
- +2.6% population growth
- +5.4% GDP / capita growth
- +4.3% increase in urbanisation

Drive top-line growth based on understanding local consumer needs
1. Increasing access to formal alcoholic beverages
- African alcohol consumption per capita is in-line with the global average at 6.2 LPA
- 90% of alcohol consumed in Africa is non-beer and >80% of this is informal
- Bringing consumers into formal alcohol is a significant opportunity, which we will meet through
    the development of affordable brands and price discipline across our core brand portfolios
2. Tapping into local pride
- Consumers are looking for local brands that meet their needs
- Our local brand portfolios resonate with consumers who have a sense of ownership and loyalty
    through pride in national identity
3. Unlocking aspirations of the middle class
- Meet consumers’ desires to be seen with premium products and socialise in the right places
- Developing Castle Lite as Africa’s leading regional premium brand
- Innovation to target new consumer occasions; bring women into the beer category; develop
    flavoured long alcoholic drinks

Shape our footprint to contribute to growth
- Strategic alliance between SABMiller and Castel provides collective presence in 38 markets
   across Africa
- Coca-Cola Beverages Africa proposed transaction to create the 10th largest bottler globally with
   40% of Coca-Cola beverage volumes in Africa and pro-forma revenues of $2.9bn
- Expansion into fast growing mainstream local spirits in five markets
- Integration of SABMiller Africa and SAB Pty Ltd to leverage scale

Reduce costs
- Total costs as a percentage of net producer revenue have decreased from 78% in F10 to 72%
   in F14.
- Efficiencies achieved through a regional procurement centre
- Synergies achieved through the integration of SABMiller Africa and SAB Pty Ltd

SABMiller Africa medium-term guidance (i)

- NPR growth: targeting 10%+ (organic, constant currency basis)
- Volume growth: mid-single digits
- NPR per HL: mid-single digits (organic, constant currency basis)
- EBITA margin growth: 10-40bps

Notes to editors

SABMiller plc

SABMiller plc is in the beer and soft drinks business. We are the world’s second largest brewing
company and are one of the world’s largest bottlers of Coca-Cola drinks. We also produce a
portfolio of wholly-owned soft drinks brands.

We are a FTSE-20 company, with shares trading on the London Stock Exchange, and we have a
secondary listing on the Johannesburg stock exchange. We operate in more than 80 countries with
around 70,000 employees.

Our brand portfolio includes leading local brands such as Aguila (Colombia), Castle (South Africa),
Miller Lite (USA), Snow (China), Victoria Bitter (Australia) and Tyskie (Poland) as well as global
brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft and Grolsch. Every
minute of every day, more than 140,000 bottles of SABMiller beer are sold.

In the year ended 31 March 2014, we sold 318 million hectolitres of lager, soft drinks and other
alcoholic beverages, generating group net producer revenue of US$26,719 million and EBITA of
US$6,460 million (as restated).

This announcement is available on the company website: www.sabmiller.com

Further information is also available on:
www.sabmiller.com
www.facebook.com/sabmiller
www.twitter.com/sabmiller
www.youtube.com/sabmiller


Enquiries

SABMiller plc                              Gary Leibowitz                              Christina Mills                             Richard Farnsworth
t: +44 20 7659 0100                        Director, Investor                          Director, Communications                    Business Media Relations
                                           Engagement                                  and Reputation                              Manager
                                           SABMiller plc                               SABMiller plc                               SABMiller plc
                                           t: +44 7717 428 540                         t: +44 7825 275 605                         t: +44 7734 776 317




i
  Notes on medium-term guidance:
-     The seminar presentation provides guidance for the 3 to 5 year period from the date of the presentation.
-     The presentation does not provide guidance or constitute a forecast (or similar) for any one specific year, nor can it be used to interpolate backwards to imply a
      forecast for any specific year.
-     The guidance provided on volumes and revenue is guidance for the CAGR between the date of the presentation to the future period referred to.
-     The guidance on margin improvement is guidance for the average annual rate of improvement between the date of the presentation and the future period
      referred to.
-     The guidance assumes constant currency at the date of the presentation


9 March 2015

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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