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SABMILLER PLC - Preliminary results for the 12 months ended 31 March 2016

Release Date: 18/05/2016 08:00
Code(s): SAB     PDF:  
Wrap Text
Preliminary results for the 12 months ended 31 March 2016

SABMiller plc
Incorporated in England and Wales (Registration No. 3528416)
JSE SAB ISUER CODE SOSAB
ISIN GB0004835483

Preliminary Announcement

Release date: 18 May 2016

SABMiller delivers strong underlying growth

SABMiller plc reports its preliminary (unaudited) results for the twelve months to 31 March 2016.

Except where indicated, all growth rates in the highlights and group overview are over the prior year and are
expressed on an organic basis for volumes and on an organic, constant currency basis for group NPR, group
NPR per hectolitre (hl), EBITA and EBITA margin movements(1).

Highlights(2)
- Group net producer revenue (NPR) grew by 5%, with group NPR per hl growth of 3%.
- Group beverage volumes increased by 2%, with lager volumes up 1% and soft drinks volumes up 6%.
- EBITA grew by 8% and EBITA margin(3) increased by 60 basis points (bps).
- The depreciation of key operating currencies against the US dollar impacted results such that reported
  group NPR, EBITA and adjusted EPS declined by 8%, 9% and 6%, respectively.
- Exceptional charges of US$721 million(4) principally relating to the impairment of our investments in Angola
  and South Sudan, together with costs associated with the Anheuser-Busch InBev SA/NV (AB InBev)
  transaction.
- Adjusted constant currency EPS grew by 12%(5).
- Free cash flow of US$2,969 million.
- Full year dividend per share of 122.0 US cents, up 8% on prior year, with final dividend of 93.75 US cents
  per share payable on 12 August 2016(6). AB InBev and SABMiller do not anticipate completion of the
  recommended acquisition prior to this date.
                                                                                                          Organic,   
                                                                                                          constant   
                                                                      2016        2015      Reported      currency   
                                                                      US$m        US$m      % change      % change   
Revenue(7)                                                          19,833      22,130          (10)             7   
Group net producer revenue(8)                                       24,149      26,288           (8)             5   
EBITA(9)                                                             5,810       6,367           (9)             8   
Adjusted EPS (US cents)                                              224.1       239.1           (6)            12   
Profit before tax(4)                                                 4,074       4,830          (16)                 
Basic EPS (US cents)                                                 167.8       205.7          (18)                 
Dividends per share (US cents)                                       122.0       113.0             8                 
Free cash flow                                                       2,969       3,233           (8)                 

(1) These terms, together with adjusted EPS are defined in the financial definitions section.
(2) All growth rates over the prior year comparative period are quoted on an organic basis for volumes and an organic, constant currency basis for group
    NPR, group NPR per hl, EBITA and EBITA margin movements (unless noted otherwise). This is the underlying basis referred to in this document.
(3) Expressed as a percentage of group NPR.
(4) Exceptional items of US$721 million (2015: US$153 million) are explained in Note 3 and are included in profit before tax.
(5) EPS growth is the same if the prior year net earnings impact of the disposal of the group's investment in Tsogo Sun Holdings Limited is excluded.
(6) The full year dividend and the final dividend are permitted dividends within the terms of SABMiller and AB InBev's joint Rule 2.7 announcement on 
    11 November 2015.
(7) Revenue excludes the group's share of associates' and joint ventures' revenue.
(8) Group net producer revenue (NPR) comprises group revenue, including the group's share of associates' and joint ventures' revenue, less excise and
    similar taxes, including the group's share of associates' and joint ventures' excise and similar taxes.
(9) Note 2 provides a reconciliation of operating profit to EBITA which is defined as operating profit before exceptional items and amortisation of intangible
    assets (excluding computer software) and includes the group's share of associates' and joint ventures' operating profit, on a similar basis. EBITA is
    used throughout this announcement.

CHIEF EXECUTIVE'S REVIEW

Alan Clark, Chief Executive of SABMiller, said:

"These are good results. We grew EBITA across all regions and our group EBITA margin improved through
the year, on an underlying basis. This performance reflects our focus on driving superior growth by
strengthening our core brands, expanding the beer category to reach more consumers on more occasions and
placing an emphasis on premiumisation in all regions. As noted through the year, the strengthening dollar
against our operating currencies had a material negative impact on reported results.

"Our affordability and premiumisation initiatives have allowed us to capture growth in developing markets and
key trends in developed markets. Our subsidiaries achieved volume and NPR growth of 5% and 8%
respectively, with a particularly good performance in a number of key markets. Premium lager brands' NPR
grew by 11%(10), while global lager brands' NPR grew by 13%(10), with growth across all regions. Our growth
accelerated in the year, driven by improving momentum in Latin America, continued strong and well-balanced
momentum in Africa and improvements in Australia and Europe in the second half.

"In creating a more integrated global business we have been able to cut costs and free up in-market resources
to deliver on our strategic objectives. We continue to focus on improving our in-country performance in a cost
efficient manner, supported by our global cost and efficiency programme which is ahead of schedule and
delivered cumulative net annualised savings of US$547 million by the year end. The programme is on track to
achieve our 2020 target of US$1,050 million(11). These initiatives mitigated adverse transactional currency headwinds.

"We are expanding our exposure to growing markets and building the optimum portfolio of lager, soft drinks
and other alcoholic beverages to capture growth. Soft drinks volumes grew by 6%. On 10 May 2016, the South
African Competition Tribunal approved, with agreed conditions, the formation of Africa's largest soft drinks
beverage operation, Coca-Cola Beverages Africa (CCBA). We expect the transaction to complete as soon as practicable.

"Achieving these results this year, notwithstanding economic and currency volatility and the distraction of the
AB InBev offer, is a testament to the dedication and hard work of our people."

Group overview(12)
                                                      Net                                      Organic,              
                                             acquisitions                                      constant              
                                  Reported            and      Currency   Organic   Reported   currency   Reported   
                                      2015      disposals   translation    growth       2016     growth     growth   
Group net producer revenue            US$m           US$m          US$m      US$m       US$m          %          %   
Latin America                        5,768              -       (1,020)       463      5,211          8       (10)   
Africa                               7,462             43       (1,519)       795      6,781         11        (9)   
Asia Pacific                         3,867              -         (328)       111      3,650          3        (6)   
Europe                               4,398             17         (656)        73      3,832          2       (13)   
North America                        4,682              1           (1)       (7)      4,675          -          -   
Retained operations                 26,177             61       (3,524)     1,435     24,149          5        (8)   
South Africa: Hotels and Gaming        111          (111)             -         -          -                         
Total                               26,288           (50)       (3,524)     1,435     24,149          5        (8)  
 
                                                      Net                                                            
                                             acquisitions                                                            
                                  Reported            and                 Organic   Reported    Organic   Reported   
                                      2015      disposals                  growth       2016     growth     growth   
Group volumes                       hl'000         hl'000                  hl'000     hl'000          %          %   
Lager                              245,853            125                   2,814    248,792          1          1   
Soft drinks                         70,299              1                   3,913     74,213          6          6   
Other alcoholic beverages            7,711            (2)                     153      7,862          2          2   
Total                              323,863            124                   6,880    330,867          2          2   

(10) On a subsidiary basis, excluding home markets for global brands. Global brands include Miller Lite in both years.
(11) Refer to the Cost and efficiency programme section.
(12) Except where indicated, all growth rates in the Group overview are over the prior year comparative period and are expressed on an organic basis for
     volumes and on an organic, constant currency basis for group NPR, group NPR per hl, EBITA and EBITA margin movements.

                                                      Net                                      Organic,              
                                             acquisitions                                      constant              
                                  Reported            and      Currency   Organic   Reported   currency   Reported   
                                      2015      disposals   translation    growth       2016     growth     growth   
EBITA                                 US$m           US$m          US$m      US$m       US$m          %          %   
Latin America                        2,224              -         (431)       166      1,959          7       (12)   
Africa                               1,907              8         (423)       216      1,708         11       (10)   
Asia Pacific                           768              -         (116)       101        753         13        (2)   
Europe                                 700              4         (105)        37        636          5        (9)   
North America                          858              -             1         6        865          1          1   
Corporate                            (122)              -            20       (9)      (111)                         
Retained operations                  6,335             12       (1,054)       517      5,810          8        (8)   
South Africa: Hotels and Gaming         32           (32)             -         -          -                         
Total                                6,367           (20)       (1,054)       517      5,810          8        (9)   
EBITA margin(1)(%)                    24.2                                              24.1     60 bps   (10) bps   

(1) Expressed as a percentage of group NPR.

-     Volume: Beverage volumes grew by 2% and lager volumes by 1%, with strong growth in Africa and Latin
      America moderated by volume weakness in China and the USA. Europe showed good momentum in the
      second half of the year and, in Australia, volumes were marginally up on the prior year.

-     Group NPR: grew by 5% with subsidiary NPR up by 8% offset by a more muted performance in our
      associates and joint ventures, held back by headwinds in their major markets and continued weak industry
      trends in the USA.

-     EBITA: grew by 8% and EBITA margin increased by 60 bps. The material adverse foreign exchange
      transactional impact on EBITA was mitigated by our continued cost reduction focus, complemented by our
      global cost and efficiency programme.

-     Interest and tax: The weighted average interest rate for the gross debt portfolio was 3.2%, down from
      3.5%. The effective tax rate for the year was 26.3%, up from 26.0% in the prior year.

-     Exceptional items: The net exceptional charge of US$721 million before tax included US$572 million of
      impairment and related charges arising from Angola and South Sudan and US$160 million of costs
      associated with the AB InBev transaction.

-     Basic EPS: The adverse translational foreign exchange impact on EBITA in the year was US$1,054
      million which, together with the exceptional items noted above, has resulted in a decline in basic EPS of 18%.

-     Free cash flow and balance sheet: The group's gearing ratio declined by 300 bps to 40.0% and net debt
      decreased by US$827 million to US$9,638 million as at 31 March 2016. The net debt to adjusted EBITDA
      ratio was 1.6x (1.6x for the year ended 31 March 2015).

-     Capital expenditure: Capex of US$1,313 million, focused on investment in production capacity and
      capability, most notably in our higher growth markets of Africa and Latin America.

-     Dividend: The board has recommended the final dividend of 93.75 US cents per share, which, if approved
      by shareholders at the annual general meeting on 21 July 2016, will be payable on 12 August 2016. The
      full year dividend of 122.0 US cents per share is an increase of 8 per cent over the prior year and
      represents dividend cover of 1.8x adjusted EPS. The full year dividend and the final dividend are permitted
      dividends within the terms of SABMiller and AB InBev's joint Rule 2.7 announcement on 11 November
      2015. The final dividend will not be payable if the acquisition of SABMiller by AB InBev becomes effective
      prior to 12 August 2016; but the parties do not anticipate completion occurring before that date.

-     Recommended acquisition by AB InBev: We are continuing to support AB InBev in obtaining the
      necessary regulatory clearances for the recommended acquisition of SABMiller by AB InBev, and in
      convergence planning for post change of control. Significant progress has been made to date, and
      AB InBev continues to work with the relevant authorities around the world in seeking to bring all regulatory
      reviews to a timely and appropriate conclusion. Subject to the satisfaction or waiver of the pre-conditions
      set out in the Rule 2.7 announcement on 11 November 2015 and to the other terms and conditions to the
      transaction, the parties continue to expect to convene the necessary shareholder meetings to approve the
      transaction and to seek UK court approval of the transaction and to take the other necessary steps to
      complete the transaction during the second half of 2016, but do not anticipate completion occurring before
      the payment of the final dividend in respect of the financial year ended 31 March 2016 to SABMiller
      shareholders on 12 August 2016.

Outlook

We expect to deliver good underlying performance in the year ahead. Our cost and efficiency programme is on
track to reach targeted annualised savings of US$1,050 million per annum by the financial year ending 
31 March 2020. We anticipate that we will continue to face foreign exchange volatility and the results of certain of
our key operations would be impacted by currency depreciation against the US dollar.

Enquiries:
SABMiller plc                                                                                Tel: +44 20 7659 0100
John Davidson               General Counsel and Corporate Affairs Director                   Tel: +44 20 7659 0127
Gary Leibowitz              Director, Investor Engagement                                    Tel: +44 20 7659 0119
Christina Mills             Director, Group Communications and Reputation                    Tel: +44 20 7659 0105
Richard Farnsworth          Group Media Relations Manager                                    Tel: +44 77 3477 6317

A live audio webcast of a presentation by Chief Executive, Alan Clark, and Chief Financial Officer, Domenic De Lorenzo, to the
investment community will begin at 9.30am (GMT) on 18 May 2016. For more information please visit our online Results Centre at
www.sabmiller.com/resultscentre.

To monitor Twitter bulletins throughout the day follow www.twitter.com/sabmiller.

Copies of the press release and detailed Preliminary Announcement are available from the Company Secretary at the Registered
Office or from our website at www.sabmiller.com.

Regional operational review

Latin America
                                                                                               Organic,              
                                                      Net                                      constant              
                                             acquisitions                                      currency   Reported   
                                  Reported            and      Currency   Organic   Reported     growth     growth   
Financial summary                     2015      disposals   translation    growth       2016          %          %   
Group NPR (US$m)                     5,768              -       (1,020)       463      5,211          8       (10)   
EBITA (US$m)                         2,224              -         (431)       166      1,959          7       (12)   
EBITA margin (%)                      38.6                                              37.6                         
Sales volumes (hl 000)                                                                                               
Lager                               44,156              -                   2,471     46,627          6          6   
Soft drinks                         19,865              -                     747     20,612          4          4   
Total beverages                     64,021              -                   3,218     67,239          5          5   

Latin America reported NPR growth of 8% on a constant currency basis (down 10% on a reported basis), with
beverage volume growth of 5%. Lager volume growth of 6% was underpinned by our affordability strategy
together with the successful targeting of new consumption occasions with innovations and effective marketing.
Our NPR growth was further supported by momentum in our above mainstream and premium brands, with
premium lager segment volume growth of 7%, together with lager pricing and soft drinks volume growth of 4%.
EBITA growth of 7% on a constant currency basis (down 12% on a reported basis) was driven by the topline
performance while EBITA margin declined by 20 bps on a constant currency basis as cost productivity and
improved efficiencies in manufacturing and distribution only partly compensated for the currency pressure on
imported raw materials. The reported EBITA margin decline of 100 bps reflected the depreciation of our
operating currencies against the US dollar, which disproportionately impacted our key Colombian operation.

In Colombia, group NPR grew by 11% on a constant currency basis, with beverage volume growth of 8%.
Lager volume growth of 11% reflected our bulk pack affordability strategy and the success of our enhanced
sales service model. Our lager volume growth, which was further supported by shifts in consumer spending
away from durable goods and favourable weather, lifted our volume share of the alcohol market by 220 bps.
NPR growth was boosted by selective price increases, trading up by consumers and our continued focus on
revenue management. Our above mainstream brands Aguila Light and the alcohol free Aguila Cero delivered
double digit growth, with robust growth from our mainstream brands. Premium brands performed well,
particularly the Club Colombia brand family which achieved double digit volume growth and exceeded one
million hectolitres for the year. Volumes of our non-alcoholic malt beverage brand, Pony Malta, declined 13%
following an unfounded social media rumour. Raw material costs came under pressure due to the adverse
impact of the exchange rate on our imported commodities as well as higher prices for local raw materials.
These impacts were partially mitigated by the December price increases and fixed cost productivity.

In Peru, group NPR growth of 7% on a constant currency basis reflected beverage volume growth of 4% with
lager volumes up 2%. NPR was further enhanced by selective price increases and positive brand mix
reflecting the continued trade up by our consumers from Cristal to our above mainstream brand Pilsen Callao.
Our local premium brand Cusqueña saw a return to growth through increased distribution and rate of sale, and
the success of its brand variants. The expansion of our direct sales and distribution model helped to offset the
impact of heavy rains that affected parts of the country. Our volume share of the alcohol market continued to
grow, up 180 bps, as we expanded the category with gains captured mostly from informal alcohol. Soft drinks
volumes grew by double digits driven by our water brand San Mateo and sparkling soft drink Guarana.
Financial results also benefited from manufacturing and distribution efficiencies.

In Ecuador, group NPR grew by 1% with beverage volumes down 2% as a result of weaker economic
conditions, increased enforcement of trading restrictions and the effect of heavy rains on both consumption
patterns and distribution. Group NPR growth was aided by selective price increases together with positive
brand and pack mix, as consumers continued to trade up from Pilsener to the more profitable Pilsener Light
packs. Our volume share of the alcohol market, down 270 bps, was driven by the consumer shift to our lower
alcohol content beers, but we outperformed the beer category with volume share growth of 70 bps. Higher
duties on imported materials were mitigated by further cost productivity which enhanced our margin.

In Panama, group NPR declined by 12% owing to a rise in beer excise duties in April, a strike in July and
intensified competition, which particularly impacted our premium segment. Lager volumes decreased by 16%
with a decline across all segments, which resulted in a 330(13) bps decline in our volume share of the alcohol
market. However our innovations targeted at the growing light segment yielded encouraging growth. Soft
drinks volumes were down 3% in a highly competitive market. Cost discipline only partially offset the impact of
the softer topline performance.

In Honduras, group NPR grew by 12% on a constant currency basis and beverage volumes increased by
11%. Strong lager volume growth of 21%, with a 600(13) bps gain in our volume share of the alcohol market,
was underpinned by the execution of our affordability strategy, which reinvigorated the category, and by
unusually hot weather. Soft drinks volume growth of 9% also benefited from the good weather.

El Salvador delivered group NPR growth of 8% and beverage volume growth of 6%. Lager volume growth of
9% was driven by the expansion of our direct sales and distribution model and supported a 110 bps increase
in our volume share of the alcohol market. Growth in our mainstream brands, Pilsener and Golden Light,
reflected the consumer adoption of the bulk packs, and our local premium brand Suprema saw double digit
growth, which enhanced our brand mix. Soft drinks volumes grew by 5%, with particularly strong growth in still
drinks.

(13) On an adjusted like for like basis.

Africa                                                                                                               
                                                                                               Organic,              
                                                      Net                                      constant              
                                             acquisitions                                      currency   Reported   
                                  Reported            and      Currency   Organic   Reported     growth     growth   
Financial summary                     2015      disposals   translation    growth       2016          %          %   
Group NPR (including share of                                                                                        
associates) (US$m)                   7,462             43       (1,519)       795      6,781         11        (9)   
EBITA(1)(US$m)                       1,907              8         (423)       216      1,708         11       (10)   
EBITA margin (%)                      25.6                                              25.2                         
Sales volumes (hl 000)                                                                                               
Lager                               48,413             41                   2,349     50,803          5          5   
Soft drinks                         34,901              1                   2,884     37,786          8          8   
Other alcoholic beverages            7,618            (2)                     158      7,774          2          2   
Total beverages                     90,932             40                   5,391     96,363          6          6   

(1) In 2016 before a net exceptional charge of US$422 million, being impairments and related charges of US$508 million arising from
    Angola and South Sudan, net of the group's US$86 million share of a gain recognised as a result of Castel's operations in Tunisia
    being reclassified from an associate to a subsidiary following the acquisition of additional shares (2015: net exceptional credit of US$45
    million, being additional profit on disposal of a business in 2012).

In Africa, group NPR grew by 11% on an organic, constant currency basis (down 9% on a reported basis),
reflecting beverage volume growth of 6% supported by our affordability strategy, selective price increases and
continued premiumisation in South Africa. On an organic, constant currency basis, our subsidiaries achieved
volume and NPR growth of 8% and 12%, respectively, with increased topline momentum in the year,
notwithstanding increased currency and economic volatility in the second half. Our associate, Castel, delivered
more modest growth, predominantly due to very challenging macro-economic conditions in its key market of Angola.

The Castle Lite brand continued to grow strongly, which helped to drive premium segment growth of 11% for
our subsidiaries in the region and increased premium mix. Our strategy of price moderation assisted the
growth in the mainstream segment while in the affordable category, Impala, our cassava-based beer, and
Eagle were the main drivers of growth. Our innovation pipeline delivered double digit growth for our premium
flavoured beer Flying Fish, along with the successful pan-African launch in the second half of the year of our
premium, single malt beer Carling Blue Label. Soft drinks volumes increased by 8%, against a strong
comparative. Traditional beer volumes returned to growth in the second half which resulted in growth of 1% for
the full year. Chibuku Super grew by double digits driving its share of our traditional beer volumes to 27%.

EBITA grew by 11% on an organic, constant currency basis (down 10% on a reported basis), with EBITA
margin expansion of 10 bps constrained by the performance of our associates. The depreciation of key
currencies against the US dollar created significant pressure on raw material input costs which was only
partially offset by efficiencies achieved in manufacturing and distribution. Our regional performance reflected
our focus on cost management, premiumisation and the introduction of more affordable pack sizes. On a
reported basis, EBITA margin declined by 40 bps primarily due to the depreciation of the South African rand,
Tanzanian shilling and euro against the US dollar (the euro being Castel's functional currency).

In South Africa, group NPR grew by 10% on an organic, constant currency basis, supported by selective
pricing and premiumisation against a tough economic backdrop in which consumers' disposable income
continued to be under pressure. Beverage volumes increased by 6% and lager volumes grew by 2%, with
share gains across the beer and total alcohol markets. This was driven by our premium brand volume growth
of 13%, led by Castle Lite and Castle Milk Stout. Volumes of our mainstream lager brands declined by 1%
driven by Hansa Pilsener, partially offset by the growth of Castle Lager. In the flavoured beer segment there
were strong performances from Redd's and Brutal Fruit. Soft drinks volume growth of 10% in an increasingly
promotion-driven trading environment was supported by robust growth of 17% in the second half, which
benefited from hot weather over the peak trading period. Our focus on manufacturing and distribution
efficiencies, together with fixed cost productivity in the SAB beer business, partially offset the impact of
adverse currency on raw materials and resulted in double digit EBITA growth on an organic, constant currency basis.

In Tanzania, group NPR grew 5% on a constant currency basis with beverage volume growth of 7%. Lager
volumes grew by 7% with strong growth in the affordable segment led by Eagle, as well as the expansion into
draught and smaller pack sizes of Balimi. Other alcoholic beverages grew by 3%, spurred by the growth of
Chibuku Super, partially offset by a subdued performance from wines and spirits. Profitability was adversely
impacted by the growth of the affordable segment and traditional beer, the decline in wines and spirits,
transactional foreign exchange pressure on raw materials, and increased employee costs.

In Mozambique, a 20% increase in group NPR on a constant currency basis reflected beverage volume
growth of 12%, together with positive pack and category mix. Lager volume growth of 15% was led by the
Impala brand, together with strong growth of our mainstream brand 2M, primarily in the can format. Other
alcoholic beverages declined by 29% due to competition from informal wines and spirits. EBITA growth on an
organic, constant currency basis was driven by the topline performance, while margins declined driven by the
adverse transactional foreign exchange impact on the cost base.

In Zambia, group NPR grew by 23% on a constant currency basis with beverage volume growth of 10% driven
by lager volumes up 30%, against a soft comparative. Lager volume growth benefited from price reductions at
the beginning of the financial year in anticipation of the excise duty decrease which became effective in
January 2016, together with the strong performance of Castle Lite in the premium segment and Eagle in the
affordable segment. Following pricing taken earlier in the year, soft drinks volumes returned to growth in the
second half to end the year with volume growth of 1%. Traditional beer volumes grew by 5% driven by double
digit growth in Chibuku Super.

Group NPR in Nigeria grew by 31% on a constant currency basis with volume growth of 27%. Continued
strong growth in our mainstream lager brands, Hero and Trophy, was underpinned by our expanded
distribution footprint, supported by increased capacity and enhanced market execution. Our non-alcoholic malt
beverage category also remained strong with double digit volume growth driven by Beta Malt. On an organic,
constant currency basis, EBITA growth and robust EBITA margin expansion were driven by the strong topline
performance, supported by marketing and fixed cost productivity.

In Botswana, group NPR grew by 5% on a constant currency basis supported by moderate pricing and
favourable category mix. Beverage volumes were in line with the prior year as volume growth in lager and soft
drinks of 11% and 6%, respectively, was offset by a 16% decline in traditional beer volumes due to the impact
of water shortages on production.

Group NPR in Ghana grew by 48% on a constant currency basis, as moderate pricing drove volume growth of
24%, and the growth of non-alcoholic malt beverage volumes, as opposed to water, led to an improved soft
drinks segment mix. Non-alcoholic malt beverages delivered robust growth as the capacity increase in the
prior year led to improved availability.

In Uganda, group NPR grew by 20% on a constant currency basis, owing to volume growth of 14%, supported
by pricing. Lager volume growth of 12% was driven by the Eagle brand family in the affordable segment.

The continuing turmoil in South Sudan and the acute shortage of access to foreign exchange in the country
has significantly impacted our performance in the second half of the year. As a result, we have closed the
brewery and are now operating as an import business.

Our associate, Castel, delivered group NPR growth of 6%. Beverage volumes were down 1%, constrained by
weak economic fundamentals in Angola where the local currency has devalued substantially and there is
limited access to foreign currency. Beverage volumes in Angola were down 19%, driven by the 18% decline in
lager volumes, and contributed to a double digit decline in EBITA. Castel has undertaken an impairment
review in Angola and has scaled back activity significantly. The resultant impairment of our investment in BIH
(Angola), together with our share of Castel's impairment of its operations in Angola, has been treated as
exceptional. Excluding Angola, Castel's volumes were up mid single digits driven by double digit growth in the
Republic of Congo, Madagascar, and Burkina Faso. During the year, Castel increased its interest in its
Tunisian operation, gaining control of the business and resulting in a reclassification of the operation from an
associate to a subsidiary. We have treated our share of the gain recognised on the change of control as
exceptional.

Asia Pacific                                                                                                         
                                                                                               Organic,              
                                                      Net                                      constant              
                                             acquisitions                                      currency   Reported   
                                  Reported            and      Currency   Organic   Reported     growth     growth   
Financial summary                     2015      disposals   translation    growth       2016          %          %   
Group NPR (including share of                                                                                        
associates) (US$m)                   3,867              -         (328)       111      3,650          3        (6)   
EBITA(1)(US$m)                         768              -         (116)       101        753         13        (2)   
EBITA margin (%)                      19.9                                              20.6                         
Sales volumes (hl 000)                                                                                               
Lager                               71,181              -                   (926)     70,255        (1)        (1)   
Other beverages                         93              -                     (5)         88        (6)        (6)   
Total beverages                     71,274              -                   (931)     70,343        (1)        (1)   

(1) In 2016 before net exceptional credits of US$29 million being integration and restructuring credits (2015: net exceptional charges of
    US$452 million being US$139 million of integration and restructuring costs and impairments of US$313 million).

In Asia Pacific, group NPR grew by 3% on a constant currency basis (down 6% on a reported basis). The
beverage volume decline of 1% was offset by group NPR per hl growth of 4% reflecting a combination of price
increases supported by positive mix.

EBITA grew by 13% on a constant currency basis (down 2% on a reported basis). EBITA margin expanded by
200 bps on a constant currency basis, reflecting topline growth and continued cost optimisation across the
region. On a reported basis, the EBITA margin expansion was reduced to 70 bps owing to the relative
weighting of the Australian operation to the regional results and reflecting the depreciation of the Australian
dollar against the US dollar during the year.

In Australia, group NPR growth of 4% on a constant currency basis was driven by NPR per hl growth of 3%
with price increases complemented by premiumisation as a result of the shift into premium and contemporary
brands. Volumes were marginally up on the prior year, with improved momentum in the second half, up 3%.
This performance was underpinned by improved customer relationships, excellent execution as well as
product innovation. As a result, we outperformed our key competitors in a market where the rate of decline has
been more muted.

During the year we focused on rebalancing the portfolio, leveraging the consumer switch from classic to
contemporary and premium segments. Premium lager segment volume growth of 16% was led by strong
momentum in Great Northern in our contemporary portfolio, together with the sustained double digit growth of
the Peroni and Yak brand families. The successful relaunch of our premium brand Pure Blonde in June 2015
supported our expansion of the category. Our classic mainstream brands Victoria Bitter and Carlton Draught
continued to decline, in line with segment trends, although this was partially mitigated by the strong
performance of Carlton Dry.

EBITA growth and EBITA margin expansion, on a constant currency basis, reflected the topline performance
coupled with our continued cost control discipline. The focus on cost optimisation throughout the year included
improving production and logistic efficiencies as well as the streamlining of back office processes.

In China, on a constant currency and underlying, like-for-like basis(14) compared with the prior year, group NPR
grew by 4% and group NPR per hl grew by 6%, which reflected the continued roll out of one-way packaging
and the continuing focus on premiumisation. Growth in group NPR and group NPR per hl was 1% and 3%,
respectively, on a constant currency basis. Volumes were down 2% primarily due to tough industry and macro-
economic headwinds, in a market that declined by mid single digits for the second consecutive year.

In the full year, we recognised our share of a nine month reclassification undertaken by our associate, CR
Snow, of certain discounts from selling expenses to group NPR in its results for the twelve months ended 
31 December 2015, without a prior period adjustment. The reclassification was within the income statement and
had no impact on profits.

CR Snow maintained national leadership as a result of being well represented in the growth segments of the
on-premise channel, with good penetration of night outlets in targeted cities through a full portfolio of premium
brands, particularly Snow Brave the World and Snow Draft. CR Snow also grew strongly in the off-premise
channel with notable growth in cans. Snow Brave the World, which was launched in 2008, continued to grow
by double digits and now represents over 20% of CR Snow's total volume, and over 27% of NPR. EBITA
growth and margin expansion were achieved through focused management of sales costs together with
reduced overheads in the face of the industry downturn.

In India, group NPR grew by 7% on a constant currency basis driven by group NPR per hl growth of 6% due
to price increases across several states along with strong growth in the premium segment. Commercial
initiatives, including the repositioning of core mainstream brands and Foster's, supported volume growth of
1%. Profitability improved with growth in the topline supported by tight cost control and improved efficiencies.

(14) Excluding the reclassification undertaken by our associate, CR Snow, referred to below.

Europe                                                                                                               
                                                                                               Organic,              
                                                      Net                                      constant              
                                             acquisitions                                      currency   Reported   
                                  Reported            and      Currency   Organic   Reported     growth     growth   
Financial summary                     2015      disposals   translation    growth       2016          %          %   
Group NPR (including share of                                                                                        
associates) (US$m)                   4,398             17         (656)        73      3,832          2       (13)   
EBITA(1)(US$m)                         700              4         (105)        37        636          5        (9)   
EBITA margin (%)                      15.9                                              16.6                         
Sales volumes (hl 000)                                                                                               
Lager                               43,595             78                   (526)     43,147        (1)        (1)   
Soft drinks                         15,493              -                     283     15,776          2          2   
Total beverages                     59,088             78                   (243)     58,923          -          -   

(1) In 2015 before an exceptional charge of US$63 million being the group's share of Anadolu Efes' impairment charge relating to its beer
    businesses in Russia and Ukraine.

In Europe, group NPR grew by 2% on an organic, constant currency basis (down by 13% on a reported
basis). On both a reported and an organic basis, beverage volumes were in line with the prior year with a 1%
decline in lager volumes offset by growth of 2% in soft drinks volumes.

Subsidiary NPR and volumes were both up by 1% on an organic, constant currency basis. Following a
challenging first half reflecting significant competitor activity in Poland, subsidiary topline momentum improved
during the year with NPR and volume up 6% in the second half, with volume growth across all of our
operations.

At a regional level, the improved volume performance of our subsidiaries was held back by the relatively
weaker performance in our associate, Anadolu Efes.

Reported EBITA declined by 9%, with EBITA margin up 70 bps. On a constant currency basis, EBITA was up
by 5% and EBITA margin increased by 60 bps. Our subsidiaries increased EBITA by 6% on an organic,
constant currency basis, with the topline performance supported by cost reductions and efficiencies.
Associates' EBITA was down by 3% on an organic, constant currency basis driven by Anadolu Efes.

In the Czech Republic and Slovakia, group NPR grew by 3% on a constant currency basis with beverage
volumes up by 1%. The business grew through a continued focus on sales execution and supported by
favourable weather throughout the year. Growth in Pilsner Urquell offset the decline of our mainstream brand
Gambrinus 10. We continued to focus on expanding the beer category, with innovations in brand variants
driving growth in Birell, our non-alcoholic lager which penetrates soft drinks occasions. In the Czech Republic,
our volume share of the beer market increased by 10 bps. In Slovakia, we lost 120 bps of share on the same basis.

In Poland, group NPR declined by 9% on a constant currency basis. The beverage volume decline of 5%
reflected significant competitor activity in the first half of the year. Initiatives launched in the second quarter to
restore our competitive position, particularly that of our lower mainstream brand Zubr, and a strengthened
sales model, supported lager volume growth of 6% in the second half of the year. Our volume share of the
beer market declined by 150 bps, although we achieved sequential improvements in market share during the
second half. EBITA and EBITA margin decreased significantly on a constant currency basis, driven by the
decline in the topline which was only partially mitigated by overhead cost reductions and the optimisation of
our distribution network.

In the United Kingdom, group NPR grew by 5% on an organic, constant currency basis. Beverage volumes
were up by 3% on an organic basis with favourable brand mix resulting from the continued growth of Peroni
Nastro Azzurro which offset the planned volume decline in both Miller Genuine Draft and the Polish brand
portfolio. In June, we acquired the modern craft brewer Meantime Brewing Company Ltd which delivered
double digit volume growth.

In Italy, group NPR was up by 7% on a constant currency basis with lager volume growth of 5%, driven by the
Peroni and Nastro Azzurro brands, and supported by good weather relative to the prior year. Group NPR per
hl expansion benefited from price increases in both the off and on-premise channels in what remains a
relatively low inflationary environment, coupled with focussed management of discounts.

In Romania, group NPR grew by 10% on a constant currency basis driven by lager volume growth of 7%,
which outperformed the beer market. We achieved growth across all price segments as a result of our
enhanced revenue management capabilities and supported by an exceptionally hot summer and good weather
in the second half of the year. Volume growth was boosted by growth in our economy brand Ciucas due to
increased promotional activity and the success of a new convenience pack size driving favourable pack mix.

In the Netherlands, group NPR increased by 3% on a constant currency basis with lager volume growth of
5%. Our performance reflected improved execution in the off-premise channel and was further boosted by the
success of Grolsch brand innovations and extensions.

In Hungary, group NPR increased by 11% on a constant currency basis with lager volume growth of 6% and
selective pricing on premium and economy brands.

Our associate, Anadolu Efes, continued to be affected by economic and political instability in its key lager
markets. Total beverage volumes decreased by 3%, with the volume decline in lager partly offset by growth in
soft drinks volumes. The lager volume weakness was mainly driven by continuing challenges in Ukraine,
Russia, and Turkey. Group NPR per hl improved as a result of price increases and favourable mix. EBITA was
down by 9% owing to currency headwinds driving up raw material input costs and despite a continuous focus
on cost optimisation and improved efficiencies.

North America                                                                                                        
                                                                                               Organic,              
                                                      Net                                      constant              
                                             acquisitions                                      currency   Reported   
                                  Reported            and      Currency   Organic   Reported     growth     growth   
Financial summary                     2015      disposals   translation    growth       2016          %          %   
Group NPR (including share of                                                                                        
joint ventures) (US$m)               4,682              1           (1)       (7)      4,675          -          -   
EBITA(1)(US$m)                         858              -             1         6        865          1          1   
EBITA margin (%)                      18.3                                              18.5                         
Sales volumes (hl 000)                                                                                               
Lager – excluding contract                                                                                           
brewing                             38,508              6                   (554)     37,960        (1)        (1)   
Soft drinks                             40              -                     (1)         39        (3)        (3)   
Total beverages                     38,548              6                   (555)     37,999        (1)        (1)   
MillerCoors' volumes                                                                                                 
Lager – excluding contract                                                                                           
brewing                             37,154              6                   (781)     36,379        (2)        (2)   
Sales to retailers (STRs)           36,967            n/a                     n/a     36,217        n/a        (2)   

(1) In 2016 before exceptional charges of US$68 million, being the group's share of MillerCoors' restructuring costs.

The North America segment includes our 58% share of MillerCoors and 100% of Miller Brewing International
and our North American holding companies. On a reported basis, total North America EBITA was up by 1%
and EBITA margin increased 20 bps. EBITA growth and EBITA margin expansion of 80 bps in MillerCoors was
offset by increased marketing and fixed cost investment to support the expansion of our international
operations in Brazil and Canada, following changes to our route to market in both countries.

MillerCoors
MillerCoors' group NPR declined by 1% on an organic basis as growth in group NPR per hl of 1%, driven by
net pricing and supported by favourable sales mix, was offset by lower volumes, with domestic sales to
wholesalers (STWs) down by 2%. Domestic sales to retailers (STRs) were also down by 2%. EBITA increased
by 3% on an organic basis as improved group NPR per hl and lower input costs more than offset higher
marketing investment and cost inflation.

Premium light STRs declined by low single digits, although MillerCoors has gained share of the segment for
the last four consecutive quarters. Miller Lite growth momentum improved in the second half, to end the full
year in line with the prior year. This performance reflected the continuing emphasis on the brand's authenticity
and originality, further evidenced through the success of the limited edition release of the Steinie bottle. Coors
Light declined by low single digits for the year, with improved performance in the fourth quarter supported by a
new marketing campaign.

STRs in the above premium segment were only marginally up, as the successful launch of Henry's Hard Soda
in the fourth quarter largely offset the double digit decline of Miller Fortune, which has been deprioritised. The
Redd's brand family increased by high single digits although volumes declined by low single digits in the fourth
quarter as the brand family is now cycling strong comparatives. Both the Blue Moon brand family and the
Leinenkugel's portfolio were up low single digits for the year.

The below premium portfolio declined by mid single digits with both Keystone Light and Milwaukee's Best
down high single digits and Miller High Life down by mid single digits. This was partially offset by Steel
Reserve which grew by low single digits owing to the continuing success of the Alloy Series, the brand's line of
flavoured malt beverages.

The lower cost of commodities and production process efficiencies resulted in a low single digit decrease in
input costs per hl. The business invested in additional marketing activities, particularly media, to support the
growth of key brands and the launch of Henry's Hard Soda.

In September 2015, MillerCoors announced plans to close the brewery in Eden, North Carolina with an
effective closure date of September 2016. Restructuring costs, including accelerated depreciation and
severance costs, will continue to be recognised as exceptional.

Financial review

New accounting standards and restatements
The accounting policies followed are the same as those published within the Annual Report and Accounts for
the year ended 31 March 2015 except for the new standards, interpretations and amendments adopted by the
group since 1 April 2015, as detailed in note 1 to the financial statements.

The Annual Report and Accounts for the year ended 31 March 2015 are available on the company's website:
www.sabmiller.com.

Segmental analysis
The group's operating results on a segmental basis are set out in the segmental analysis of operations.

SABMiller uses group NPR and EBITA (as defined in the financial definitions section) to evaluate performance
and believes these measures provide stakeholders with additional information on trends and allow for greater
comparability between segments. Segmental performance is reported after the specific apportionment of
attributable head office costs.

Disclosure of volumes
In the determination and disclosure of sales volumes, the group aggregates 100% of the volumes of all
consolidated subsidiaries and its equity accounted percentage of all associates' and joint ventures' volumes.
Contract brewing volumes are excluded from volumes although revenue from contract brewing is included
within group revenue and group NPR. Volumes exclude intra-group sales volumes. This measure of volumes
is used in the segmental analyses as it closely aligns with the consolidated group NPR and EBITA disclosures.

Organic, constant currency comparisons
The group discloses certain results on an organic, constant currency basis, to show the effects on the group's
results of acquisitions net of disposals and changes in exchange rates on the translation of results into US
dollars. See the financial definitions section for the definition.

Acquisitions
In June 2015, the group acquired 100% of Meantime Brewing Company Ltd, a UK modern craft brewer.

Exceptional items
Items that are material either by size or nature are classified as exceptional items. Further details on the
treatment of these items can be found in note 3 to the financial statements.

A net exceptional charge of US$721 million before tax was reported for the year (2015: US$153 million)
comprising US$556 million (2015: US$75 million) in operating profit, US$64 million (2015: US$15 million) in
finance costs and US$101 million (2015: US$63 million) related to the group's share of associates' and joint
ventures' exceptional charges. The net exceptional charge included:
- US$572 million of charges related to impairments and related charges in Angola and South Sudan in
  Africa. These costs, including US$64 million in finance costs, relate to the decisions to scale back
  operations in both countries following the significant devaluations of the local currencies in Angola and
  South Sudan in the year and the lack of availability of hard currency;
- US$160 million of costs associated with the AB InBev transaction;
- US$36 million (2015: US$69 million) charge related to cost and efficiency programme costs in Corporate;
- US$29 million credit (2015: US$139 million charge) related to integration and restructuring in Asia Pacific
  following the Foster's and Pacific Beverages acquisitions;
- US$68 million charge being the group's share of MillerCoors' restructuring costs, including accelerated
  depreciation and severance costs, relating to the closure of the Eden brewery; and
- US$86 million credit being the group's share of the gain recognised on the reclassification of Castel's
  Tunisian operations from associate to subsidiary status following the acquisition by Castel of additional shares.

In addition to the items noted above, the net exceptional charges in 2015 included a US$313 million charge in
respect of the impairment of the group's business in India, a US$401 million gain on the disposal of the
group's investment in Tsogo Sun, and a US$45 million additional gain on the 2012 disposal of the group's
Angolan operations to Castel.

In 2015 US$15 million of net exceptional charges in net finance costs were incurred being US$48 million of net
make whole costs on the early redemption of the US$850 million 6.5% Notes that were due July 2016, partially
offset by a US$33 million gain on the recycling of foreign currency translation reserves following the repayment
of an intercompany loan.

The group's share of associates' and joint ventures' exceptional items in the prior year comprised a US$63 million 
charge in relation to Anadolu Efes' impairment of its beer businesses in Russia and Ukraine.

Finance costs
Net finance costs were US$506 million, a 21% decrease on the prior year's US$637 million, primarily as a
result of the reduction in net debt at the end of the prior financial year and during the year partially offset by
foreign exchange losses. Net finance costs in the year included net exceptional charges of US$64 million
(2015: US$15 million) in Angola and South Sudan which have been excluded from the determination of
adjusted net finance costs and adjusted earnings per share. Adjusted net finance costs were US$442 million,
down 29%.

Interest cover, as defined in the financial definitions section, increased to 13.8 times from 10.7 times in the
prior year.

Profit before tax
Adjusted profit before tax, comprising EBITA less adjusted net finance costs and our share of associates' and
joint ventures' adjusted net finance costs, of US$5,295 million decreased by 6% from the prior year, primarily
as a result of the adverse impact of foreign currency movements on the translation of our results which more
than offset the underlying profit growth.

Profit before tax was US$4,074 million, a decrease of 16% compared with the prior year, including the impact
of the exceptional items noted above. The principal differences between reported and adjusted profit before
tax relate to exceptional items, amortisation of intangible assets (excluding computer software), and the
group's share of associates' and joint ventures' tax and non-controlling interests. Net exceptional charges
were US$721 million compared with US$153 million in the prior year, as detailed above. Amortisation
(excluding computer software), including the group's share of associates' and joint ventures' amortisation,
amounted to US$350 million in the year compared with US$423 million in the prior year, with the decrease
mainly resulting from the effects of foreign currency translation. The group's share of associates' and joint
ventures' tax and non-controlling interests was US$150 million (2015: US$236 million) with the decrease
primarily resulting from the impact of the disposal of our associate investment in Tsogo Sun during the prior year.

Taxation
The effective rate of tax for the year before amortisation of intangible assets (excluding computer software)
and exceptional items was 26.3%, 30 basis points higher than the prior year.

Earnings per share
The group presents adjusted basic earnings per share, which excludes the impact of amortisation of intangible
assets (excluding computer software), certain non-recurring items and post-tax exceptional items, in order to
present an additional measure of performance for the years shown in the consolidated financial statements.
Adjusted basic earnings per share of 224.1 US cents were down 6% on the prior year, reflecting the impact of
the translational impact of currency depreciation against the US dollar, as on a constant currency basis
adjusted earnings per share grew by 12%. The growth on a constant currency basis resulted from increased
group NPR, efficiency savings and lower finance costs. An analysis of earnings per share is shown in note 6.
On a statutory basis, basic earnings per share were lower by 18% at 167.8 US cents (2015: 205.7 US cents),
as a result of the translational impacts of the depreciation of our key currencies against the US dollar, together
with higher exceptional charges in the year.

Cash flow and capital expenditure
The group uses an adjusted EBITDA measure which provides a useful indication of the cash generated to fund
capital expenditure and to service the group's debt. Adjusted EBITDA comprises operating profit before
exceptional items, depreciation and amortisation (i.e. subsidiary EBITDA) together with the group's share of
operating profit from the MillerCoors joint venture on a similar basis. Given the significance of the MillerCoors
business and the access to its cash generation, the inclusion of MillerCoors' EBITDA provides a useful
measure of the group's overall cash generation. Adjusted EBITDA of US$6,114 million was down 8%
compared with the prior year (2015: US$6,677 million) primarily due to the translational impacts of the
depreciation of our key currencies against the US dollar which more than offset the improved operating
performance.

Net cash generated from operations before working capital movements of US$5,055 million was 11% down on
the prior year (2015: US$5,680 million), reflecting the decrease in operating profit principally due to adverse
currency translational impacts together with higher exceptional charges than the prior year.

Net cash generated from operating activities of US$3,415 million was down by US$307 million, primarily for
the reasons noted above partially offset by a cash inflow from working capital, lower net interest paid, as a
result of the reduction in net debt, and lower tax paid.

Capital expenditure on property, plant and equipment for the year of US$1,210 million decreased compared
with the prior year (2015: US$1,394 million), affected by the translational impact of currency depreciation
against the US dollar, with expansion spend primarily in Africa and Latin America. Capital expenditure
including the purchase of intangible assets was US$1,313 million (2015: US$1,572 million).

Free cash flow decreased by 8% to US$2,969 million, reflecting the lower cash generated from operations and
lower dividend receipts from associates partly offset by lower interest and tax payments, and lower capital
expenditure. Free cash flow is detailed in note 11b, and defined in the financial definitions section.

Borrowings and net debt
Gross debt at 31 March 2016, comprising borrowings together with the fair value of financing derivative assets
and liabilities, decreased to US$11,068 million from US$11,430 million at 31 March 2015, primarily as a result
of the repayment of outstanding commercial paper. Net debt, comprising gross debt net of cash and cash
equivalents, decreased to US$9,638 million from US$10,465 million at 31 March 2015. An analysis of net debt
is provided in note 11c.

The group's gearing (presented as a ratio of net debt/equity) decreased to 40.0% from 43.0% at 31 March
2015. The weighted average interest rate for the gross debt portfolio at 31 March 2015 was 3.2% (2015: 3.5%).

At 31 March 2016, the group had undrawn committed borrowing facilities of US$3,613 million (2015: US$3,644 million).

Total equity
Total equity decreased from US$24,355 million at 31 March 2015 to US$24,088 million at 31 March 2016,
mainly because of the impact of the translation of local currency denominated net assets into US dollars and
the payment of dividends, offset by the profit for the year.

Goodwill and intangible assets
Goodwill decreased to US$14,268 million (2015: US$14,746 million) primarily due to the impact of currency
depreciation against the US dollar. Intangible assets decreased in the year to US$6,526 million (2015:
US$6,878 million) primarily as a result of currency depreciation against the US dollar and amortisation.

Currencies
The exchange rates to the US dollar used in preparing the consolidated financial statements are detailed in the
table below. The weighted average rates, used to translate the income statement and cash flow statement, of
all of the major currencies in which we operate depreciated against the US dollar over the year. Whereas the
closing rates for certain of the major currencies in which we operate, including the Czech koruna, the Polish
zloty, the euro and the Australian dollar, appreciated against the US dollar, the closing rates of the other major
currencies in which we operate depreciated against the US dollar.

                                                             Appreciation/                           Appreciation/   
                                             Average rate   (depreciation)           Closing rate   (depreciation)   
Years ended 31 March                  2016           2015                %    2016           2015                %   
Australian dollar (AUD)               1.36           1.15             (16)    1.31           1.31                1   
Colombian peso (COP)                 2,922          2,097             (28)   3,022          2,576             (14)   
Czech koruna (CZK)                   24.66          21.56             (13)   23.76          25.59                8   
Euro (EUR)                            0.90           0.78             (13)    0.88           0.93                6   
Peruvian nuevo sol (PEN)              3.29           2.90             (12)    3.31           3.10              (7)   
Polish zloty (PLN)                    3.81           3.26             (15)    3.73           3.80                2   
South African rand (ZAR)             13.78          11.08             (20)   14.77          12.13             (18)   
Turkish lira (TRY)                    2.81           2.22             (21)    2.82           2.60              (8)   

Risks and uncertainties
The principal risks and uncertainties which the group faces have been updated and will ultimately be reported
in the full annual report which will be issued in June. The risks are summarised below:

-   The risk that topline growth progression does not meet internal and external expectations, the group's
    market positions come under pressure, market opportunities may be missed and profitability may be
    reduced. This may be a result of failing to develop and ensure the strength and relevance of the group's
    brands with consumers, shoppers and customers. The potential actions of our competitors and
    stakeholders during the AB InBev offer period could further negatively impact our competitive environment
    and commercial performance.

-   The risk that regulation places increasing restrictions on the availability and marketing of beer and pricing,
    or increases in taxation, which drive changes in consumption behaviour. In affected countries the group's
    ability to grow profitably and contribute to local communities could be adversely affected. This risk has
    broadened due to the potential increased regulatory scrutiny arising from the AB InBev offer.

-   The risk that the group's long-term profitable growth potential may be jeopardised due to a failure to
    identify, develop and retain an appropriate pipeline of talented management with enhanced risk of potential
    disruption to management and staff arising during the AB InBev offer period.

-   The risk that the group suffers from an information loss or information security attack or the failure to
    comply with data control legislation, which may lead to business disruption, financial penalties or
    restrictions with enhanced risk of potential disruption arising during the AB InBev offer period.

-   In addition to these risks, management has identified further risks arising from the recommended offer for
    SABMiller by AB InBev. These include:
     - failure to comply with anti- trust legislation and the necessary information security protocols in place
       during the offer period; and
     - in the event that the transaction does not complete, the impact this may have on the relationships that
       the group has with its shareholders, customers, suppliers, and joint venture and associate partners, as
       well as governments in the territories in which the group operates, resulting in significant lost value.

As a result of the most recent review completed by the board, three of the previous year's principal risks
(relating to industry consolidation, delivering business transformation and acquisition of CUB) are no longer
considered as being principal risks of the group or are not currently relevant.

These risks may adversely affect the financial and operational performance of the group and may reduce its
overall strategic progress.

Dividend
The board has proposed a final dividend of 93.75 US cents per share for the year, an increase of 8%. This
brings the total dividend for the year to 122.0 US cents per share, an increase of 9.0 US cents over the prior
year. Shareholders will be asked to approve this recommendation at the annual general meeting, which will be
held on Thursday 21 July 2016. If approved, the dividend will be payable on Friday 12 August 2016 to
shareholders registered on the London and Johannesburg registers on Friday 5 August 2016. The last date to
trade cum dividend will be Wednesday 3 August 2016 on the London Stock Exchange (LSE) and Tuesday 
2 August 2016 on the JSE Limited (JSE). The ex-dividend trading dates will be Thursday 4 August 2016 on the
LSE and Wednesday 3 August 2016 on the JSE. The payment date is set, in part, with reference to JSE
Listings Requirements. The final dividend is a permitted dividend within the terms of SABMiller and AB InBev's
joint Rule 2.7 announcement on 11 November 2015.

As the group reports in US dollars, dividends are declared in US dollars. They are payable in South African
rand to shareholders on the Johannesburg register, in US dollars to shareholders on the London register with
a registered address in the United States (unless mandated otherwise), and in sterling to all remaining
shareholders on the London register. Further details relating to dividends are provided in note 7.

The rates of exchange applicable on Wednesday 20 July 2016 will be used for US dollar conversion into South
African rand and sterling. A currency conversion announcement will be made on the JSE's Securities
Exchange News Service and on the LSE's Regulatory News Service, indicating the rates of exchange to be
applied, on Thursday 21 July 2016.

Shareholders registered on the Johannesburg register are advised that dividend withholding tax will be
withheld from the gross final dividend amount of 93.75 US cents per share (as converted into South African
rand in accordance with the paragraphs above) at a rate of 15%, unless a shareholder qualifies for an
exemption; shareholders registered on the Johannesburg register who do not qualify for an exemption will
therefore receive a net dividend of 79.6875 US cents per share (as converted into South African rand in
accordance with the paragraphs above).

The company, as a non-resident of South Africa, was not subject to the secondary tax on companies (STC)
applicable before the introduction of dividend withholding tax on 1 April 2012, and accordingly, no STC credits
are available for set-off against the dividend withholding tax liability on the final net dividend amount. The
dividend is payable in cash as a 'Dividend' (as defined in the South African Income Tax Act, 58 of 1962, as
amended) by way of a reduction of income reserves. The dividend withholding tax and the information
contained in this paragraph is only of direct application to shareholders registered on the Johannesburg
register, who should direct any questions about the application of the dividend withholding tax to
Computershare Investor Services (Pty) Limited, Tel: +27 11 373-0004.

From the commencement of trading on Thursday 21 July 2016 until the close of business on Friday 5 August
2016, no transfers between the London and Johannesburg registers will be permitted, and from Wednesday 
3 August 2016 until Friday 5 August 2016, no shares may be dematerialised or rematerialised, both days inclusive.

Annual report and accounts
The group's unaudited condensed consolidated financial statements follow. The annual report will be mailed to
shareholders in late June 2016 and the annual general meeting of the company will be held at the
InterContinental London Park Lane Hotel in London at 11:00 am on Thursday 21 July 2016.

CONSOLIDATED INCOME STATEMENT
for the year ended 31 March
                                                                                                   2016       2015   
                                                                                              Unaudited    Audited   
                                                                                      Notes        US$m       US$m   
Revenue                                                                                   2      19,833     22,130   
Net operating expenses                                                                         (16,379)   (17,746)   
Operating profit                                                                          2       3,454      4,384   
Operating profit before exceptional items                                                         4,010      4,459   
Exceptional items                                                                         3       (556)       (75)   
Net finance costs                                                                         4       (506)      (637)   
Finance costs                                                                                     (763)    (1,047)   
Finance income                                                                                      257        410   
Share of post-tax results of associates and joint ventures                                2       1,126      1,083   
Profit before taxation                                                                            4,074      4,830   
Taxation                                                                                  5     (1,152)    (1,273)   
Profit for the year                                                                     11a       2,922      3,557   
Profit attributable to non-controlling interests                                                    223        258   
Profit attributable to owners of the parent                                               6       2,699      3,299   
                                                                                                  2,922      3,557   
Basic earnings per share (US cents)                                                       6       167.8      205.7   
Diluted earnings per share (US cents)                                                     6       166.0      203.5   

The notes form an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 March
                                                                                                    2016      2015   
                                                                                               Unaudited   Audited   
                                                                                       Notes        US$m      US$m   
Profit for the year                                                                                2,922     3,557   
Other comprehensive loss:                                                                                            
Items that will not be reclassified to profit or loss                                                                
Net remeasurements of defined benefit plans                                                            5       (7)   
Tax on items that will not be reclassified                                                 5        (29)        70   
Share of associates' and joint ventures' other comprehensive income/(loss)                            72     (178)   
Total items that will not be reclassified to profit or loss                                           48     (115)   
Items that may be reclassified subsequently to profit or loss                                                        
Currency translation differences on foreign currency net investments                             (1,230)   (5,387)   
- Decrease in foreign currency translation reserve during the year                               (1,230)   (5,550)   
- Recycling of foreign currency translation reserve on disposals                                       -       163   
Net investment hedges:                                                                                               
- Fair value gains arising during the year                                                            88       608   
Cash flow hedges:                                                                                   (64)        30   
- Fair value (losses)/gains arising during the year                                                 (56)        45   
- Fair value gains transferred to inventory                                                         (24)       (8)   
- Fair value (gains)/losses transferred to property, plant and equipment                             (1)         1   
- Fair value losses/(gains) transferred to profit or loss                                             17       (8)   
Tax on items that may be reclassified subsequently to profit or loss                       5          18       (3)   
Share of associates' and joint ventures' other comprehensive loss                                   (89)     (120)   
Total items that may be reclassified subsequently to profit or loss                              (1,277)   (4,872)   
Other comprehensive loss for the year, net of tax                                                (1,229)   (4,987)   
Total comprehensive income/(loss) for the year                                                     1,693   (1,430)   
Attributable to:                                                                                                     
Non-controlling interests                                                                            169       179   
Owners of the parent                                                                               1,524   (1,609)   
Total comprehensive income/(loss) for the year                                                     1,693   (1,430)   

The notes form an integral part of these condensed consolidated financial statements.

CONSOLIDATED BALANCE SHEET
at 31 March
                                                                                                   2016       2015   
                                                                                              Unaudited    Audited   
                                                                                      Notes        US$m       US$m   
Assets                                                                                                               
Non-current assets                                                                                                   
Goodwill                                                                                  8      14,268     14,746   
Intangible assets                                                                         8       6,526      6,878   
Property, plant and equipment                                                                     7,750      7,961   
Investments in joint ventures                                                             9       5,512      5,428   
Investments in associates                                                                10       4,114      4,459   
Available for sale investments                                                                       19         21   
Derivative financial instruments                                                                    565        770   
Trade and other receivables                                                                         121        126   
Deferred tax assets                                                                                 209        163   
                                                                                                 39,084     40,552   
Current assets                                                                                                       
Inventories                                                                                         993      1,030   
Trade and other receivables                                                                       1,742      1,711   
Current tax assets                                                                                   59        190   
Derivative financial instruments                                                                    281        463   
Cash and cash equivalents                                                               11c       1,430        965   
                                                                                                  4,505      4,359   
Total assets                                                                                     43,589     44,911   
Liabilities                                                                                                          
Current liabilities                                                                                                  
Derivative financial instruments                                                                  (213)      (101)   
Borrowings                                                                              11c     (2,926)    (1,961)   
Trade and other payables                                                                        (3,870)    (3,728)   
Current tax liabilities                                                                           (830)    (1,184)   
Provisions                                                                                        (270)      (358)   
                                                                                                (8,109)    (7,332)   
Non-current liabilities                                                                                              
Derivative financial instruments                                                                   (26)       (10)   
Borrowings                                                                              11c     (8,814)   (10,583)   
Trade and other payables                                                                           (28)       (18)   
Deferred tax liabilities                                                                        (2,250)    (2,275)   
Provisions                                                                                        (274)      (338)   
                                                                                               (11,392)   (13,224)   
Total liabilities                                                                              (19,501)   (20,556)   
Net assets                                                                                       24,088     24,355   
Equity                                                                                                               
Share capital                                                                                       168        168   
Share premium                                                                                     6,849      6,752   
Merger relief reserve                                                                             3,628      3,963   
Other reserves                                                                                  (6,758)    (5,457)   
Retained earnings                                                                                19,005     17,746   
Total shareholders' equity                                                                       22,892     23,172   
Non-controlling interests                                                                         1,196      1,183   
Total equity                                                                                     24,088     24,355   

The notes form an integral part of these condensed consolidated financial statements.

CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 March
                                                                                                    2016      2015   
                                                                                               Unaudited   Audited   
                                                                                       Notes        US$m      US$m   
Cash flows from operating activities                                                                                 
Cash generated from operations                                                           11a       5,116     5,812   
Interest received                                                                                    273       352   
Interest paid                                                                                      (659)   (1,003)   
Tax paid                                                                                         (1,315)   (1,439)   
Net cash generated from operating activities                                             11b       3,415     3,722   
Cash flows from investing activities                                                                                 
Purchase of property, plant and equipment                                                        (1,210)   (1,394)   
Proceeds from sale of property, plant and equipment                                                   74        68   
Purchase of intangible assets                                                                      (103)     (178)   
Proceeds from disposal of available for sale investments                                               -         1   
Proceeds from disposal of associates                                                                   -       979   
Acquisition of businesses (net of cash acquired)                                                   (191)       (5)   
Investments in joint ventures                                                              9       (301)     (216)   
Investments in associates                                                                            (4)       (3)   
Dividends received from joint ventures                                                     9         998       976   
Dividends received from associates                                                                   253       430   
Dividends received from other investments                                                              -         1   
Net cash (used in)/generated from investing activities                                             (484)       659   
Cash flows from financing activities                                                                                 
Proceeds from the issue of shares                                                                    113       202   
Proceeds from the issue of shares in subsidiaries to non-controlling interests                         -        29   
Purchase of own shares for share trusts                                                            (149)     (146)   
Purchase of shares from non-controlling interests                                                      -       (3)   
Proceeds from borrowings                                                                           1,064       594   
Repayment of borrowings                                                                          (1,847)   (4,413)   
Capital element of finance lease payments                                                           (10)      (10)   
Net cash receipts on derivative financial instruments                                                547       243   
Dividends paid to shareholders of the parent                                                     (1,860)   (1,705)   
Dividends paid to non-controlling interests                                                        (153)     (173)   
Net cash used in financing activities                                                            (2,295)   (5,382)   
Net cash inflow/(outflow) from operating, investing and financing activities                         636   (1,001)   
Effects of exchange rate changes                                                                   (115)     (117)   
Net increase/(decrease) in cash and cash equivalents                                                 521   (1,118)   
Cash and cash equivalents at 1 April                                                     11c         750     1,868   
Cash and cash equivalents at 31 March                                                    11c       1,271       750   

The notes form an integral part of these condensed consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March
                                            Called up     Share    Merger                                 Total          Non-             
                                                share   premium    relief      Other   Retained   shareholders'   controlling     Total   
                                              capital   account   reserve   reserves   earnings          equity     interests    equity   
                                                 US$m      US$m      US$m       US$m       US$m            US$m          US$m      US$m   
At 1 April 2014 (audited)                         167     6,648     4,321      (702)     15,885          26,319         1,163    27,482   
Total comprehensive loss                            -         -         -    (4,755)      3,146         (1,609)           179   (1,430)   
Profit for the year                                 -         -         -          -      3,299           3,299           258     3,557   
Other comprehensive loss                            -         -         -    (4,755)      (153)         (4,908)          (79)   (4,987)   
Dividends paid                                      -         -         -          -    (1,705)         (1,705)         (185)   (1,890)   
Issue of SABMiller plc ordinary shares              1       104         -          -         97             202             -       202   
Proceeds from the issue of shares in                                                                                                      
subsidiaries to non-controlling interests           -         -         -          -          -               -            29        29   
Share of movements in associates'                                                                                                         
other reserves                                      -         -         -          -        (6)             (6)             -       (6)   
Payment for purchase of own shares for                                                                                                    
share trusts                                        -         -         -          -      (146)           (146)             -     (146)   
Buyout of non-controlling interests                 -         -         -          -          -               -           (3)       (3)   
Utilisation of merger relief reserve                -         -     (358)          -        358               -             -         -   
Credit entry relating to share-based                                                                                                      
payments                                            -         -         -          -        117             117             -       117   
At 31 March 2015 (audited)                        168     6,752     3,963    (5,457)     17,746          23,172         1,183    24,355   
Total comprehensive income                          -         -         -    (1,223)      2,747           1,524           169     1,693   
Profit for the year                                 -         -         -          -      2,699           2,699           223     2,922   
Other comprehensive loss                            -         -         -    (1,223)         48         (1,175)          (54)   (1,229)   
Dividends paid                                      -         -         -          -    (1,860)         (1,860)         (156)   (2,016)   
Issue of SABMiller plc ordinary shares              -        97         -          -         16             113             -       113   
Share of movements in associates'                                                                                                         
other reserves                                      -         -         -          -          2               2             -         2   
Payment for purchase of own shares for                                                                                                    
share trusts                                        -         -         -          -      (149)           (149)             -     (149)   
Utilisation of merger relief reserve                -         -     (335)          -        335               -             -         -   
Transfer between reserves                           -         -         -       (78)         78               -             -         -   
Credit entry relating to share-based                                                                                                      
payments                                            -         -         -          -         90              90             -        90   
At 31 March 2016 (unaudited)                      168     6,849     3,628    (6,758)     19,005          22,892         1,196    24,088   

Merger relief reserve
At 1 April 2015 the merger relief reserve comprised US$3,395 million in respect of the excess of value attributed to the shares issued as consideration
for Miller Brewing Company over the nominal value of those shares and US$568 million (2014: US$926 million) relating to the merger relief arising on
the issue of SABMiller plc ordinary shares for the buyout of non-controlling interests in the group's Polish business. In the year ended 31 March 2016
the group transferred US$335 million (2015: US$358 million) of the reserve relating to the Polish business to retained earnings upon realisation of
qualifying consideration.

The notes form an integral part of these condensed consolidated financial statements.

NOTES TO THE FINANCIAL STATEMENTS

1. Basis of preparation

The preliminary announcement for the year ended 31 March 2016 has been prepared in accordance with the International Financial Reporting
Standards (collectively IFRS) as adopted by the EU.

The financial information in this preliminary announcement is not audited and does not constitute statutory accounts within the meaning of s434 of the
Companies Act 2006. Group financial statements for 2016 will be delivered to the Registrar of Companies in due course. The board of directors
approved this financial information on 17 May 2016. The annual financial statements for the year ended 31 March 2015, approved by the board of
directors on 2 June 2015, which represent the statutory accounts for that year, have been filed with the Registrar of Companies. The auditors' report on
those accounts was unqualified and did not contain a statement made under s498(2) or (3) of the Companies Act 2006.

Items included in the financial information of each of the group's entities are measured using the currency of the primary economic environment in which
the entity operates (the functional currency). The consolidated financial information is presented in US dollars which is the group's presentational
currency.

Accounting policies
The financial information is prepared under the historical cost convention, except for the revaluation to fair value of certain financial assets and liabilities,
and post-retirement assets and liabilities. The financial statements have been prepared on a going concern basis.

The accounting policies adopted are consistent with those of the previous financial year except for the following interpretations and amendments
adopted by the group as of 1 April 2015, which have had no material impact on the consolidated results of operations or financial position of the group:

-    Amendment to IAS 19, 'Employee benefits', on defined benefit plans;
-    IFRIC 21, 'Levies';
-    Annual improvements to IFRS 2012; and
-    Annual improvements to IFRS 2013.

2. Segmental information

Operating segments reflect the management structure of the group and the way performance is evaluated and resources allocated based on group NPR
and EBITA by the group's chief operating decision maker, defined as the executive directors. The group is focused geographically and, while not
meeting the definition of a reportable segment, the group reports Corporate (2015: Corporate and South Africa: Hotels and Gaming) as a separate
segment as this provides useful additional information.

The segmental information presented below includes the reconciliation of GAAP measures presented on the face of the income statement to non-GAAP
measures which are used by management to analyse the group's performance.

Income statement

                                                                                        Group NPR       EBITA   Group NPR     EBITA   
                                                                                             2016        2016        2015      2015   
                                                                                        Unaudited   Unaudited     Audited   Audited   
                                                                                             US$m        US$m        US$m      US$m   
Latin America                                                                               5,211       1,959       5,768     2,224   
Africa                                                                                      6,781       1,708       7,462     1,907   
Asia Pacific                                                                                3,650         753       3,867       768   
Europe                                                                                      3,832         636       4,398       700   
North America                                                                               4,675         865       4,682       858   
Corporate                                                                                       -       (111)           -     (122)   
Retained operations                                                                        24,149       5,810      26,177     6,335   
South Africa: Hotels and Gaming                                                                 -           -         111        32   
                                                                                           24,149       5,810      26,288     6,367   
Amortisation of intangible assets (excluding computer software) – group and share of                                                  
associates' and joint ventures'                                                                         (350)                 (423)   
Exceptional items in operating profit – group and share of associates' and joint                                                      
ventures'                                                                                               (657)                 (138)   
Net finance costs – group and share of associates' and joint ventures'                                  (579)                 (740)   
Share of associates' and joint ventures' taxation                                                       (114)                 (157)   
Share of associates' and joint ventures' non-controlling interests                                       (36)                  (79)   
Profit before taxation                                                                                  4,074                 4,830   

Group revenue and group NPR (including the group's share of associates and joint ventures)
With the exception of South Africa: Hotels and Gaming (2015 only), all reportable segments derive their revenues from the sale of beverages. Revenues
are derived from a large number of customers which are internationally dispersed, with no customers being individually material.

                                                                                                               Share of               
                                                                                                        associates' and               
                                                                 Share of                               joint ventures'               
                                                          associates' and               Excise duties     excise duties               
                                                          joint ventures'       Group       and other         and other               
                                                Revenue           revenue     revenue   similar taxes     similar taxes   Group NPR   
                                                   2016              2016        2016            2016              2016        2016   
                                              Unaudited         Unaudited   Unaudited       Unaudited         Unaudited   Unaudited   
                                                   US$m              US$m        US$m            US$m              US$m        US$m   
Latin America                                     7,018                 -       7,018         (1,807)                 -       5,211   
Africa                                            6,126             2,124       8,250         (1,160)             (309)       6,781   
Asia Pacific                                      2,793             2,180       4,973         (1,061)             (262)       3,650   
Europe                                            3,721             1,371       5,092           (906)             (354)       3,832   
North America                                       175             5,142       5,317             (4)             (638)       4,675   
                                                 19,833            10,817      30,650         (4,938)           (1,563)      24,149  
 
                                                   2015              2015        2015            2015              2015        2015   
                                                Audited           Audited     Audited         Audited           Audited     Audited   
                                                   US$m              US$m        US$m            US$m              US$m        US$m   
Latin America                                     7,812                 -       7,812         (2,044)                 -       5,768   
Africa                                            6,853             2,221       9,074         (1,334)             (278)       7,462   
Asia Pacific                                      3,136             2,203       5,339         (1,203)             (269)       3,867   
Europe                                            4,186             1,675       5,861         (1,011)             (452)       4,398   
North America                                       143             5,201       5,344             (4)             (658)       4,682   
Retained operations                              22,130            11,300      33,430         (5,596)           (1,657)      26,177   
South Africa: Hotels and Gaming                       -               128         128               -              (17)         111   
                                                 22,130            11,428      33,558         (5,596)           (1,674)      26,288   

Operating profit and EBITA (segment result)
The following table provides a reconciliation of operating profit to operating profit before exceptional items, and to EBITA. EBITA comprises operating
profit before exceptional items, amortisation of intangible assets (excluding computer software) and includes the group's share of associates' and joint
ventures' operating profit on a similar basis.

                                                                                                               Share of               
                                                                                                            associates'               
                                                                               Share of                       and joint               
                                                                            associates'                       ventures'               
                                                                              and joint    Amortisation    amortisation               
                                                                              ventures'   of intangible   of intangible               
                                                              Operating       operating          assets          assets               
                                                          profit before   profit before      (excluding      (excluding               
                                Operating   Exceptional     exceptional     exceptional        computer        computer               
                                   profit         items           items           items       software)       software)       EBITA   
                                     2016          2016            2016            2016            2016            2016        2016   
                                Unaudited     Unaudited       Unaudited       Unaudited       Unaudited       Unaudited   Unaudited   
                                     US$m          US$m            US$m            US$m            US$m            US$m        US$m   
Latin America                       1,873             -           1,873               -              86               -       1,959   
Africa                                923           389           1,312             381              15               -       1,708   
Asia Pacific                          463          (29)             434             165             153               1         753   
Europe                                511             -             511              78              21              26         636   
North America                         (9)             -             (9)             826               4              44         865   
Corporate                           (307)           196           (111)               -               -               -       (111)   
                                    3,454           556           4,010           1,450             279              71       5,810   

                                     2015          2015            2015            2015            2015            2015        2015   
                                  Audited       Audited         Audited         Audited         Audited         Audited     Audited   
                                     US$m          US$m            US$m            US$m            US$m            US$m        US$m   
Latin America                       2,110             -           2,110               -             114               -       2,224   
Africa                              1,516          (45)           1,471             427               9               -       1,907   
Asia Pacific                         (14)           452             438             142             188               -         768   
Europe                                548             -             548              85              22              45         700   
North America                          14             -              14             800               2              42         858   
Corporate                           (191)            69           (122)               -               -               -       (122)   
Retained operations                 3,983           476           4,459           1,454             335              87       6,335   
South Africa: Hotels and Gaming       401         (401)               -              31               -               1          32   
                                    4,384            75           4,459           1,485             335              88       6,367   

The group's share of associates' and joint ventures' operating profit is reconciled to the share of post-tax results of associates and joint ventures in the
income statement as follows.

                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Share of associates' and joint ventures' operating profit (before exceptional items)                                1,450     1,485   
Share of associates' and joint ventures' exceptional items in operating profit                                      (101)      (63)   
Share of associates' and joint ventures' net finance costs                                                           (73)     (103)   
Share of associates' and joint ventures' taxation                                                                   (114)     (157)   
Share of associates' and joint ventures' non-controlling interests                                                   (36)      (79)   
Share of post-tax results of associates and joint ventures                                                          1,126     1,083   

EBITDA
EBITA is reconciled to EBITDA as follows.

                                                             Share of                                            Share of             
                                                          associates'                                         associates'             
                                                            and joint                                           and joint             
                                                            ventures'                                           ventures'             
                                  EBITA   Depreciation   depreciation      EBITDA     EBITA   Depreciation   depreciation    EBITDA   
                                   2016           2016           2016        2016      2015           2015           2015      2015   
                              Unaudited      Unaudited      Unaudited   Unaudited   Audited        Audited        Audited   Audited   
                                   US$m           US$m           US$m        US$m      US$m           US$m           US$m      US$m   
Latin America                     1,959            274              -       2,233     2,224            302              -     2,526   
Africa                            1,708            249            120       2,077     1,907            275            121     2,303   
Asia Pacific                        753             62            148         963       768             66            148       982   
Europe                              636            195             64         895       700            214             77       991   
North America                       865              -            139       1,004       858              -            145     1,003   
Corporate                         (111)             36              -        (75)     (122)             39              -      (83)   
Retained operations               5,810            816            471       7,097     6,335            896            491     7,722   
South Africa: Hotels and                                                                                                              
Gaming                                -              -              -           -        32              -              8        40   
                                  5,810            816            471       7,097     6,367            896            499     7,762   

Adjusted EBITDA
Adjusted EBITDA is comprised of the following.

                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Subsidiaries' EBITDA                                                                                                5,105     5,690   
-   Operating profit before exceptional items                                                                       4,010     4,459   
-   Depreciation (including amortisation of computer software)                                                        816       896   
-   Amortisation (excluding computer software)                                                                        279       335   
Group's share of MillerCoors' EBITDA                                                                                1,009       987   
-   Operating profit before exceptional items                                                                         826       800   
-   Depreciation (including amortisation of computer software)                                                        139       145   
-   Amortisation (excluding computer software)                                                                         44        42   
Adjusted EBITDA                                                                                                     6,114     6,677   

Other segmental information

                                                Capital                                          Capital
                                            expenditure                                      expenditure
                                              excluding                                        excluding
                                             investment        Investment                     investment      Investment
                                            activity(1)       activity(2)        Total       activity(1)     activity(2)      Total
                                                   2016             2016          2016              2015            2015       2015   
                                              Unaudited        Unaudited     Unaudited           Audited         Audited    Audited   
                                                   US$m             US$m          US$m              US$m            US$m       US$m   
Latin America                                       439                -           439               429             (5)        424   
Africa                                              547                4           551               720               8        728   
Asia Pacific                                         85                -            85                80               -         80   
Europe                                              201              191           392               253               -        253   
North America                                         -              301           301                15             216        231   
Corporate                                            41                -            41                75           (972)      (897)   
                                                  1,313              496         1,809             1,572           (753)        819   

(1) Capital expenditure includes additions of intangible assets (excluding goodwill) and property, plant and equipment.
(2) Investment activity includes acquisitions and disposals of businesses, net investments in associates and joint ventures, purchases of shares in non-
    controlling interests, and purchases and disposals of available for sale investments.

3. Exceptional items                                                                                                                  
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Exceptional items included in operating profit:                                                                                       
Impairments(1,2)                                                                                                    (379)     (313)   
Transaction costs                                                                                                   (160)         -   
Cost and efficiency programme costs                                                                                  (36)      (69)   
Integration and restructuring costs                                                                                    29     (139)   
Net foreign exchange losses(2)                                                                                       (10)         -   
Profit on disposal of investment in associate                                                                           -       401   
Profit on disposal of business                                                                                          -        45   
Net exceptional losses included within operating profit                                                             (556)      (75)   
Exceptional items included in net finance costs:                                                                                      
Net foreign exchange losses(2)                                                                                       (44)         -   
Loan guarantee provision(1)                                                                                          (20)         -   
Early redemption costs                                                                                                  -      (48)   
Recycling of foreign currency translation reserves                                                                      -        33   
Net exceptional losses included within net finance costs                                                             (64)      (15)   
Share of associates' and joint ventures' exceptional items:                                                                           
Profit on transaction in associate                                                                                     86         -   
Impairments and related charges(1)                                                                                  (119)      (63)   
Restructuring costs                                                                                                  (68)         -   
Group's share of associates' and joint ventures' exceptional losses                                                 (101)      (63)   
Net taxation credits/(charges) relating to subsidiaries' and the group's share of associates'                                         
and joint ventures' exceptional items                                                                                  28      (83)   

(1) Angola
During 2016 the group incurred US$491 million of exceptional charges before finance costs relating to Angola including the US$372 million impairment
of the group's associate investment in Angola and the group's US$119 million share of Castel's impairment and related charges. Additionally the group
has made a provision of US$20 million within finance costs in relation to loan guarantees in Angola. All the charges relate to the operations being
significantly scaled down following the significant devaluation of the local currency against the US dollar and the lack of availability of hard currency in Angola.

(2) South Sudan
During 2016 the group incurred US$17 million of exceptional charges before finance costs relating to South Sudan including the US$7 million
impairment of property, plant and equipment and US$10 million of operating foreign exchange losses arising on the retranslation of net monetary
liabilities. Additionally the group has incurred US$44 million of foreign exchange losses on net monetary liabilities within finance costs. All the charges
relate to the operation being significantly scaled down following the significant devaluation of the local currency against the US dollar and the lack of
availability of hard currency in South Sudan.

Impairments
During 2015 an impairment charge of US$313 million was incurred in respect of the group's business in India in Asia Pacific. The impairment charge
comprised US$286 million against goodwill, US$23 million against property, plant and equipment, and US$4 million against intangible assets.

Transaction costs
During 2016 the group incurred costs of US$160 million relating to the potential transaction with Anheuser-Busch InBev SA/NV, including advisers' fees
and staff-related costs.

Cost and efficiency programme costs
In 2016 costs of US$36 million (2015: US$69 million) were incurred in relation to the cost and efficiency programme.

Integration and restructuring costs
During 2016 a credit of US$29 million was realised relating to integration and restructuring in Australia, following the successful resolution of certain
claims leading to the release of provisions.

During 2015 US$139 million of integration and restructuring costs were incurred in Asia Pacific following the Foster's and Pacific Beverages
acquisitions, including impairments relating to brewery closures.

Profit on disposal of investment in associate
During 2015 a pre-tax profit of US$401 million, after associated costs, was realised on the disposal of the group's investment in the Tsogo Sun hotels
and gaming business in South Africa.

Profit on disposal of business
During 2015 an additional profit of US$45 million was realised in Africa in relation to the disposal in 2012 of the group's Angolan operations in exchange
for a 27.5% interest in BIH Angola, following the resolution of certain matters leading to the release of provisions.

Exceptional items included in net finance costs

Early redemption costs
During 2015 a US$48 million exceptional charge was incurred in relation to costs for the early redemption of the US$850 million 6.5% Notes that were
due July 2016.

Recycling of foreign currency translation reserves
During 2015 a credit of US$33 million was recognised in relation to the recycling of foreign currency translation reserves following the repayment of an
intercompany loan.

Share of associates' and joint ventures' exceptional items

Profit on transaction in associate
In 2016 the group's associate Castel recognised a gain arising on the change in control following the acquisition of further interests in its Tunisian
operation. The group's share of the gain amounted to US$86 million.

Impairments
During 2015 the group's share of the impairment charges taken by Anadolu Efes in relation to its beer businesses in Russia and Ukraine amounted to
US$63 million.

Restructuring costs
During 2016 MillerCoors announced the closure of the Eden brewery with full effect from September 2016. Restructuring costs, including accelerated
depreciation and severance costs, have been incurred of which the group's share amounted to US$68 million.

Net taxation credits/(charges) relating to subsidiaries' and the group's share of associates' and joint ventures' exceptional items
Net taxation credits of US$28 million (2015: charges of US$83 million) arose in relation to exceptional items during the year, and include US$25 million
(2015: US$nil) in relation to MillerCoors although the tax credit is recognised in Miller Brewing Company (see note 5).

4. Net finance costs                                                                                                                  
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
a. Finance costs                                                                                                                      
Interest payable on bank loans and overdrafts                                                                          88       100   
Interest payable on derivatives                                                                                       132       177   
Interest payable on corporate bonds                                                                                   397       545   
Interest element of finance lease payments                                                                              4         3   
Net fair value losses on financial instruments                                                                         27         -   
Net exchange losses                                                                                                    15       120   
Exceptional foreign exchange losses(1)(see note 3)                                                                     44         -   
Loan guarantee provision(1)(see note 3)                                                                                20         -   
Early redemption costs(1)(see note 3)                                                                                   -        48   
Other finance charges                                                                                                  36        54   
Total finance costs                                                                                                   763     1,047   
b. Finance income                                                                                                                     
Interest receivable                                                                                                    16        19   
Interest receivable on derivatives                                                                                    234       282   
Net fair value gains on financial instruments                                                                           -        66   
Recycling of foreign currency translation reserves(1)(see note 3)                                                       -        33   
Other finance income                                                                                                    7        10   
Total finance income                                                                                                  257       410   
Net finance costs                                                                                                     506       637   

(1) Net losses of US$64 million (2015: US$15 million) are excluded from the determination of adjusted net finance costs and adjusted earnings per share.

Adjusted net finance costs were US$442 million (2015: US$622 million).

5. Taxation                                                                                                  
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Current taxation                                                                                                    1,039     1,415   
- Charge for the year                                                                                               1,050     1,390   
- Adjustments in respect of prior years                                                                              (11)        25   
Withholding taxes and other remittance taxes                                                                          148       176   
Total current taxation                                                                                              1,187     1,591   
Deferred taxation                                                                                                    (35)     (318)   
- Credit for the year                                                                                                (24)     (330)   
- Adjustments in respect of prior years                                                                              (12)         7   
- Rate change                                                                                                           1         5   
Taxation expense                                                                                                    1,152     1,273   
Tax charge/(credit) relating to components of other comprehensive loss is as follows:                                              
Deferred tax charge/(credit) on remeasurements of defined benefit plans                                                29      (70)   
Deferred tax (credit)/ charge on financial instruments                                                               (18)         3   
                                                                                                                       11      (67)   
Effective tax rate (%)                                                                                               26.3      26.0   
UK taxation included in the above                                                                                                     
Current taxation                                                                                                        -         -   
Withholding taxes and other remittance taxes                                                                           91        82   
Total current taxation                                                                                                 91        82   
Deferred taxation                                                                                                    (53)         -   
UK taxation expense                                                                                                    38        82   

See the financial definitions section for the definition of the effective tax rate. The calculation is on a basis consistent with that used in prior years and is
also consistent with other group operating metrics. Tax on amortisation of intangible assets (excluding computer software) was US$96 million (2015:
US$117 million).

MillerCoors is not a taxable entity. The tax balances and obligations therefore remain with Miller Brewing Company as a 100% subsidiary of the group.
This subsidiary's tax charge includes tax (including deferred tax) on the group's share of the taxable profits of MillerCoors and includes tax in other
comprehensive income on the group's share of MillerCoors' taxable items included within other comprehensive income.

6. Earnings per share                                                                                                                 
                                                                                                          2016                 2015   
                                                                                                     Unaudited              Audited   
                                                                                                      US cents             US cents   
Basic earnings per share                                                                                 167.8                205.7   
Diluted earnings per share                                                                               166.0                203.5   
Headline earnings per share                                                                              188.4                213.4   
Adjusted basic earnings per share                                                                        224.1                239.1   
Adjusted diluted earnings per share                                                                      221.6                236.6   
The weighted average number of shares was:                                                                                            
                                                                                                          2016                 2015   
                                                                                                     Unaudited              Audited   
                                                                                            Millions of shares   Millions of shares   
Ordinary shares                                                                                          1,677                1,674   
Treasury shares                                                                                           (59)                 (63)   
EBT ordinary shares                                                                                       (10)                  (7)   
Basic shares                                                                                             1,608                1,604   
Dilutive ordinary shares                                                                                    18                   17   
Diluted shares                                                                                           1,626                1,621   

The calculation of diluted earnings per share excludes 4,582,485 (2015: 8,613,524) share options that were non-dilutive for the year because the
exercise price of the option exceeded the fair value of the shares during the year, and 25,933,403 (2015: 16,316,980) share awards that were non-
dilutive for the year because the performance conditions attached to the share awards had not been met. These share incentives could potentially dilute
earnings per share in the future.

Adjusted and headline earnings
The group presents an adjusted earnings per share figure which excludes the impact of amortisation of intangible assets (excluding computer software),
certain non-recurring items and post-tax exceptional items in order to present an additional measure of performance for the years shown in the
consolidated financial statements. Adjusted earnings per share are based on adjusted earnings for each financial year and on the same number of
weighted average shares in issue as the basic earnings per share calculation. Headline earnings per share are calculated in accordance with the South
African Circular 2/2015 entitled 'Headline Earnings' which forms part of the listing requirements for the JSE Ltd (JSE). The adjustments made to arrive at
headline earnings and adjusted earnings are as follows.

                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Profit for the year attributable to owners of the parent                                                            2,699     3,299   
Headline adjustments                                                                                                                  
Impairment of associate                                                                                               372         -   
Impairment of property, plant and equipment                                                                             7        73   
Impairment of intangible assets                                                                                         -         6   
Impairment of goodwill                                                                                                  -       286   
Profit on disposal of investment in associate                                                                           -     (401)   
Profit on disposal of business                                                                                          -      (45)   
Tax effects of these items                                                                                              -       146   
Non-controlling interests' share of the above items                                                                   (1)       (1)   
Share of associates' and joint ventures' headline adjustments, net of tax and non-controlling interests              (48)        60   
Headline earnings                                                                                                   3,029     3,423   
Amortisation of intangible assets (excluding computer software)                                                       279       335   
Transaction costs                                                                                                     160         -   
Integration and restructuring costs (excluding impairment)                                                           (29)        87   
Cost and efficiency programme costs                                                                                    36        69   
Loan guarantee provision                                                                                               20         -   
Net foreign exchange losses                                                                                            54         -   
Early redemption costs                                                                                                  -        48   
Recycling of foreign currency translation reserves                                                                      -      (33)   
Tax effects of the above items                                                                                      (117)     (167)   
Non-controlling interests' share of the above items                                                                  (23)       (6)   
Share of associates' and joint ventures' other adjustments, net of tax and non-controlling interests                  195        79   
Adjusted earnings                                                                                                   3,604     3,835  
 
7. Dividends                                                                                                                          
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Equity                                                                                                                                
2015 Final dividend paid: 87.0 US cents (2014: 80.0 US cents) per ordinary share                                    1,404     1,289   
2016 Interim dividend paid: 28.25 US cents (2015: 26.0 US cents) per ordinary share                                   456       416   
                                                                                                                    1,860     1,705   

The directors are proposing a final dividend of 93.75 US cents per share in respect of the financial year ended 31 March 2016, which will absorb an
estimated US$1,509 million of shareholders' funds. If approved by shareholders, the dividend will be paid on 12 August 2016 to shareholders registered
on the London and Johannesburg registers as at 5 August 2016.

8. Goodwill and intangible assets                                                                                                     
                                                                                                       Goodwill   Intangible assets   
                                                                                                           US$m                US$m   
Net book amount                                                                                                                       
At 1 April 2014 (audited)                                                                                18,497               8,532   
Exchange adjustments                                                                                    (3,173)             (1,424)   
Reclassification(1)                                                                                       (293)                   -   
Additions - separately acquired                                                                               -                 186   
Acquisitions - through business combinations                                                                  1                   -   
Amortisation                                                                                                  -               (410)   
Impairment                                                                                                (286)                 (6)   
At 31 March 2015 (audited)                                                                               14,746               6,878   
Exchange adjustments                                                                                      (557)               (215)   
Additions - separately acquired                                                                               -                  91   
Acquisitions - through business combinations (provisional)                                                   79                 126   
Amortisation                                                                                                  -               (352)   
Disposals                                                                                                     -                 (2)   
At 31 March 2016 (unaudited)                                                                             14,268               6,526   

(1) Following clarification from the IFRS Interpretations Committee during 2014 regarding the recognition of deferred tax assets, US$293 million was
    reclassified from goodwill to net deferred tax liabilities, with no impact on results or net assets.

Goodwill
2016
Provisional goodwill of US$79 million arose on the acquisition of Meantime Brewing Company Ltd, a modern craft brewer in the United Kingdom. The
fair value exercise in respect of this business combination has yet to be completed.

2015
A US$313 million impairment charge was recognised in respect of the group's business in India in Asia Pacific, which principally reflected the group's
assessment of the impact of challenges in the regulatory and operating environment. The impairment loss has been allocated to goodwill (US$286
million), property, plant and equipment (US$23 million) and intangible assets (US$4 million).

Provisional goodwill of US$1 million arose on the acquisition in the year of a business in Africa. The fair value exercise in respect of this business
combination is now complete.

9. Investments in joint ventures            
                                                                                                                               US$m   
At 1 April 2014 (audited)                                                                                                     5,581   
Investments in joint ventures                                                                                                   216   
Share of results retained                                                                                                       786   
Share of other comprehensive loss                                                                                             (179)   
Dividends received                                                                                                            (976)   
At 31 March 2015 (audited)                                                                                                    5,428   
Investments in joint ventures                                                                                                   301   
Share of results retained                                                                                                       746   
Share of other comprehensive income                                                                                              35   
Dividends received                                                                                                            (998)   
At 31 March 2016 (unaudited)                                                                                                  5,512 
  
10. Investments in associates                                                                                                         
                                                                                                                               US$m   
At 1 April 2014 (audited)                                                                                                     5,787   
Exchange adjustments                                                                                                          (755)   
Investments in associates                                                                                                        46   
Disposal of investments in associates                                                                                         (368)   
Share of results retained                                                                                                       297   
Share of other comprehensive loss                                                                                             (119)   
Share of movements in other reserves                                                                                            (6)   
Dividends receivable                                                                                                          (423)   
At 31 March 2015 (audited)                                                                                                    4,459   
Exchange adjustments                                                                                                           (50)   
Impairment                                                                                                                    (372)   
Share of results retained                                                                                                       380   
Share of other comprehensive loss                                                                                              (52)   
Share of movements in other reserves                                                                                              2   
Dividends receivable                                                                                                          (253)   
At 31 March 2016 (unaudited)                                                                                                  4,114 
  
11a. Reconciliation of profit for the year to net cash generated from operations                                                      
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Profit for the year                                                                                                 2,922     3,557   
Taxation                                                                                                            1,152     1,273   
Share of post-tax results of associates and joint ventures                                                        (1,126)    (1,083   
Net finance costs                                                                                                     506       637   
Operating profit                                                                                                    3,454     4,384   
Depreciation:                                                                                                                         
- Property, plant and equipment                                                                                       538       602   
- Containers                                                                                                          205       219   
Container breakages, shrinkages and write-offs                                                                         41        57   
Profit on disposal of businesses                                                                                        -      (45)   
Profit on disposal of available for sale investments                                                                    -       (1)   
Profit on disposal of investments in associates                                                                         -     (403)   
Gain on dilution of investment in associate                                                                             -       (2)   
Profit on disposal of property, plant and equipment                                                                  (34)      (18)   
Loss on disposal of intangibles                                                                                         2         -   
Amortisation of intangible assets                                                                                     352       410   
Impairment of goodwill                                                                                                  -       286   
Impairment of intangible assets                                                                                         -         6   
Impairment of property, plant and equipment                                                                             7        73   
Impairment of associate                                                                                               372         -   
Impairment of working capital balances                                                                                 44        68   
Amortisation of advances to customers                                                                                  34        35   
Unrealised net fair value losses/(gains) on derivatives included in operating profit                                   20      (15)   
Dividends received from other investments                                                                               -       (1)   
Charge with respect to share options                                                                                   83       112   
Charge with respect to Broad-Based Black Economic Empowerment scheme                                                    7         5   
Other non-cash movements                                                                                             (70)      (92)   
Net cash generated from operations before working capital movements                                                 5,055     5,680   
Increase in inventories                                                                                             (112)      (30)   
Increase in trade and other receivables                                                                             (204)     (218)   
Increase in trade and other payables                                                                                  422       396   
Decrease in provisions                                                                                               (41)      (13)   
Decrease in post-retirement benefit provisions                                                                        (4)       (3)   
Net cash generated from operations                                                                                  5,116     5,812   

11b. Reconciliation of net cash generated from operating activities to free cash flow
                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Net cash generated from operating activities                                                                        3,415     3,722   
Purchase of property, plant and equipment                                                                         (1,210)   (1,394)   
Proceeds from sale of property, plant and equipment                                                                    74        68   
Purchase of intangible assets                                                                                       (103)     (178)   
Investments in joint ventures                                                                                       (301)     (216)   
Investments in associates                                                                                             (4)       (3)   
Dividends received from joint ventures                                                                                998       976   
Dividends received from associates                                                                                    253       430   
Dividends received from other investments                                                                               -         1   
Dividends paid to non-controlling interests                                                                         (153)     (173)   
Free cash flow                                                                                                      2,969     3,233   

11c. Analysis of net debt

Cash and cash equivalents on the balance sheet are reconciled to cash and cash equivalents on the cash flow statement as follows.

                                                                                                                    2016       2015   
                                                                                                               Unaudited    Audited   
                                                                                                                    US$m       US$m   
Cash and cash equivalents (balance sheet)                                                                          1,430        965   
Overdrafts                                                                                                         (159)      (215)   
Cash and cash equivalents (cash flow statement)                                                                    1,271        750 
  
Net debt is analysed as follows.                                                                                                      
                                                                                                                    2016       2015   
                                                                                                               Unaudited    Audited   
                                                                                                                    US$m       US$m   
Borrowings                                                                                                      (11,520)   (12,276)   
Financing derivative financial instruments                                                                           672      1,114   
Overdrafts                                                                                                         (159)      (215)   
Finance leases                                                                                                      (61)       (53)   
Gross debt                                                                                                      (11,068)   (11,430)   
Cash and cash equivalents (excluding overdrafts)                                                                   1,430        965   
Net debt                                                                                                         (9,638)   (10,465)   

The movement in net debt is analysed as follows.

                                            Cash and cash                                                                             
                                              equivalents                              Derivative                                     
                                               (excluding                               financial   Finance                           
                                              overdrafts)   Overdrafts   Borrowings   instruments    leases   Gross debt   Net debt   
                                                     US$m         US$m         US$m          US$m      US$m         US$m       US$m   
At 1 April 2015 (audited)                             965        (215)     (12,276)         1,114      (53)     (11,430)   (10,465)   
Exchange adjustments                                (134)           19           27             4         4           54       (80)   
Principal-related cash flows                          598           37          783         (547)        10          283        881   
Acquisitions – through business                                                                                                       
combinations                                            1            -          (7)             -       (3)         (10)        (9)   
Other movements                                         -            -         (47)           101      (19)           35         35   
At 31 March 2016 (unaudited)                        1,430        (159)     (11,520)           672      (61)     (11,068)    (9,638)   

The group has sufficient headroom to enable it to comply with all covenants on its existing borrowings. The group has sufficient undrawn financing
facilities to service its operating activities and continuing capital investment for the foreseeable future and thus the directors have continued to adopt the
going concern basis of accounting. The group had the following undrawn committed borrowing facilities available at 31 March in respect of which all
conditions precedent had been met at that date.

                                                                                                                     2016      2015   
                                                                                                                Unaudited   Audited   
                                                                                                                     US$m      US$m   
Amounts expiring:                                                                                                                     
Within one year                                                                                                       108        65   
Between one and two years                                                                                               5        76   
Between two and five years                                                                                          3,500     3,503   
                                                                                                                    3,613     3,644   

In April 2016 the group extended its existing US$2,500 million and US$1,000 million committed syndicated facilities, both shown as undrawn in the table
above, by one year to May 2021, with the exception of US$117 million for which the maturity date remains May 2020.

12. Share capital

During the year ended 31 March 2016 3,971,608 ordinary shares (2015: 3,022,082 ordinary shares) were allotted and issued in accordance with the
group's share purchase, option and award schemes.

13. Post balance sheet events

In May 2016, the South African Competition Tribunal approved, with agreed conditions, the formation of CCBA, Africa's largest soft drinks operation.
The transaction is expected to complete as soon as practicable.

FINANCIAL DEFINITIONS

Adjusted earnings
Adjusted earnings are calculated by adjusting headline earnings (as defined below) for the amortisation of intangible assets (excluding computer
software), exceptional integration and restructuring costs and other items which have been treated as exceptional but not included above or as headline
earnings adjustments together with the group's share of associates' and joint ventures' adjustments for similar items. The tax and non-controlling
interests in respect of these items are also adjusted.

Adjusted EBITDA
This comprises operating profit before exceptional items, depreciation and amortisation, and includes the group's share of MillerCoors' operating profit
on a similar basis.

Adjusted net finance costs
This comprises net finance costs excluding any exceptional finance charges or income.

Adjusted profit before tax
This comprises EBITA less adjusted net finance costs and less the group's share of associates' and joint ventures' net finance costs on a similar basis.

Constant currency
Constant currency results have been determined by translating the local currency denominated results for the year ended 31 March at the exchange
rates for the prior year.

EBITA
This comprises operating profit before exceptional items, amortisation of intangible assets (excluding computer software) and includes the group's share
of associates' and joint ventures' operating profit on a similar basis.

EBITA margin (%)
This is calculated by expressing EBITA as a percentage of group net producer revenue.

EBITDA
This comprises EBITA (as defined above) plus depreciation and amortisation of computer software, including the group's share of associates' and joint
ventures' depreciation and amortisation of computer software.

EBITDA margin (%)
This is calculated by expressing EBITDA as a percentage of group net producer revenue.

Effective tax rate (%)
The effective tax rate is calculated by expressing tax before tax on exceptional items and on amortisation of intangible assets (excluding computer
software), including the group's share of associates' and joint ventures' tax on a similar basis, as a percentage of adjusted profit before tax.

Free cash flow
This comprises net cash generated from operating activities less cash paid for the purchase of property, plant and equipment, and intangible assets, net
investments in existing associates and joint ventures (in both cases only where there is no change in the group's effective ownership percentage) and
dividends paid to non-controlling interests plus cash received from the sale of property, plant and equipment and intangible assets and dividends received.

Group revenue
This comprises revenue together with the group's share of revenue from associates and joint ventures.

Group net producer revenue (NPR)
This comprises group revenue less excise duties and other similar taxes, together with the group's share of excise duties and other similar taxes from
associates and joint ventures.

Headline earnings
Headline earnings are calculated by adjusting profit for the financial period attributable to owners of the parent for items in accordance with the South
African Circular 2/2015 entitled 'Headline Earnings'. Such items include impairments of non-current assets and profits or losses on disposals of non-
current assets and their related tax and non-controlling interests. This also includes the group's share of associates' and joint ventures' adjustments on
a similar basis.

Interest cover
This is the ratio of adjusted EBITDA to adjusted net finance costs.

Net debt
This comprises gross debt (including borrowings, financing derivative financial instruments, overdrafts and finance leases) net of cash and cash
equivalents (excluding overdrafts).

Organic information
Organic results and volumes exclude the first 12 months' results and volumes relating to acquisitions and the last 12 months' results and volumes
relating to disposals.

Sales volumes
In the determination and disclosure of sales volumes, the group aggregates 100% of the volumes of all consolidated subsidiaries and its equity
accounted percentage of all associates' and joint ventures' volumes. Contract brewing volumes are excluded from volumes although revenue from
contract brewing is included within group revenue. Volumes exclude intra-group sales volumes. This measure of volumes is used for lager volumes, soft
drinks volumes, other alcoholic beverage volumes and beverage volumes and is used in the segmental analyses as it more closely aligns with the
consolidated group net producer revenue and EBITA disclosures.

COST AND EFFICIENCY PROGRAMME

The following was announced on 9 October 2015:

"SABMiller announces that it has increased its target annual run rate cost savings from its cost and efficiency programme, announced in May 2014,
from US$500 million by 31 March 2018 to at least US$1,050 million by 31 March 2020.

"The cost and efficiency programme, which covers SABMiller's integrated supply chain comprising procurement, manufacturing and distribution,
delivered US$221 million of annualised savings in its first year to 31 March 2015, and is expected to deliver in excess of US$430 million of
annualised savings in its second year to 31 March 2016. The original target issued in 2014 was US$500 million annualised savings by 2018.

"The increase in annual run rate cost savings announced today, of at least US$550 million, will further build on the initial success of the 2014
programme and bring the aggregate annual run rate cost savings for this programme to at least US$1,050 million by 2020. This is across a total
addressable cost base of approximately US$10 billion.

"The additional savings will come from SABMiller's integrated supply chain, with approximately 70% of the additional savings announced today
coming from procurement and 30% from manufacturing and distribution. The savings will mainly be realised by:

-   increasing the spend centrally managed by SABMiller's specialist procurement team to at least 90%, from 46% in the year ended 31 March
    2014 and 69% for the year ended 31 March 2015;

-   completing the roll out of procurement operating models to increase efficiency through greater transparency, cost management, compliance and
    delivery of savings; and

-   driving further efficiencies in manufacturing and distribution based on best in class benchmarks and standardised processes.

"SABMiller expects to incur incremental non-recurring costs of US$26 million in total by 2020 and no dis-benefits are expected to arise from the programme."

Bases of belief and sources of information from the 9 October 2015 announcement:

The cost and efficiency programme announced and launched in 2014 delivered cost savings of US$221 million by 31 March 2015 as disclosed in
SABMiller's Annual Report and Accounts by reference to a total addressable cost base for the year ended 31 March 2014 of approximately US$10 billion.

Total addressable cost base refers to all third party spend and labour force and infrastructure costs in manufacturing and distribution. The labour
force costs in manufacturing include the group's share of relevant MillerCoors costs. The total addressable cost base excludes capital expenditure
and depreciation.

The incremental cost savings estimates shown above are based on savings compared to the group's cost base for the year to 31 March 2015 which
was not materially different from that for the year to 31 March 2014.

The estimated cost savings have been prepared based on internal information on costs by function, type and country and detailed analysis of the
future operating model. The delivery of historical cost reduction programmes has also been taken into account in preparing these estimates. The
estimates have been prepared by functional and country teams, including senior executives in the organisation. These programmes have been
developed over the past 6-12 months and have included input from external consultants. In circumstances where data has been limited for
commercial or other reasons, estimates and assumptions have been developed to support the analysis.

In arriving at the Quantified Financial Benefits Statement, the directors of SABMiller have assumed that:

-   there will be no change in the ownership or control of SABMiller;

-   there will be no material change to macro-economic, political or legal conditions in the markets or regions in which in the SABMiller group
    operates which will materially impact on the implementation of or costs to achieve the proposed cost savings; and

-   there will be no material change in exchange rates or commodity prices.

FORWARD-LOOKING STATEMENTS

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire ordinary shares in the capital of SABMiller
plc (the "company") or any other securities of the company or of any of its subsidiaries or associates in any jurisdiction or an inducement to enter into
investment activity.

This announcement is intended to provide information to shareholders. It should not be relied upon by any other party or for any other purpose. This
announcement 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 document, 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. 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 announcement. Factors which may cause differences between actual
results and those expected or implied by the forward-looking statements include, but are not limited to: the outcome of the proposed transaction with
Anheuser-Busch InBev SA/NV; material adverse changes in the economic and business conditions in the markets in which SABMiller operates;
increased competition in the global brewing and beverages industry; changes in consumer preferences; changes to the regulatory environment; and
fluctuations in foreign currency exchange rates and interest rates. 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 circumstances 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.

ADMINISTRATION

SABMiller plc                                                     
Incorporated in England and Wales (Registration No. 3528416)   
   
Group Company Secretary                                           
Stephen Shapiro      
                                             
Registered office                                                 
SABMiller House                                                   
Church Street West                                                
Woking                                                            
Surrey, England                                                   
GU21 6HS                                                          
Telephone +44 1483 264000  
                                       
Head office                                                       
One Stanhope Gate                                                 
London, England                                                   
W1K 1AF                                                           
Telephone +44 20 7659 0100 
                                       
Internet address                                                  
www.sabmiller.com  
                                               
Investor relations                                                
Telephone +44 20 7659 0100                                        
investor.relations@sabmiller.com  
                                
Sustainable development                                           
Telephone +44 1483 264134                                         
sustainable.development@sabmiller.com   
                          
Independent auditors                                              
PricewaterhouseCoopers LLP                                        
Chartered Accountants and Statutory Auditors                      
1 Embankment Place                                                
London, England                                                   
WC2N 6RH                                                          
Telephone +44 20 7583 5000  
                                      
Registrar (United Kingdom)                                        
Equiniti                                                          
Aspect House                                                      
Spencer Road                                                      
Lancing                                                           
West Sussex, England                                              
BN99 6DA                                                          
Telephone 0371 384 2395                                           
Overseas telephone +44 121 415 7047 (outside UK)                  
www.equiniti.com                                                  
www.shareview.co.uk  
                                             
Registrar (South Africa)                                          
Computershare Investor Services (Proprietary) Limited             
70 Marshall Street, Johannesburg                                  
PO Box 61051                                                      
Marshalltown 2107                                                 
South Africa                                                      
Telephone +27 11 370 5000 
                                        
United States ADR Depositary                                      
4 New York Plaza, floor 12                                        
New York, NY 10004                                                
Telephone +1 866 576 2377                                         
Email: adr@jpmorgan.com 
                                          
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd              




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