OUR VISION

To be the most admired company in South Africa; a partner of choice, an investment of choice and an
employer of choice.

OUR MISSION

To own and nurture local and international brands which are the consumer’s first choice.

OUR VALUES

Our people are our enduring advantage

 The calibre, passion and commitment of our people set us apart

 We value and encourage diversity
 We select and develop people for the long-term
 Performance is what counts.

Accountability is clear and personal

 We favour decentralised management and a practical maximum of local autonomy

 Goals and objectives are aligned and clearly articulated
 We prize both intellectual rigour and emotional engagement
 We are honest about performance
 We require and enable self-management

We work and win in teams

 We actively develop and share knowledge within the group

 We consciously balance local and group interests
 We foster trust and integrity in internal relationships
 We encourage camaraderie and a sense of fun

We understand and respect our customers and consumers

 We are endlessly concerned with our customers' needs and perceptions

 We build lasting relationships, based on trust
 We aspire to offer the preferred choices of product and service
 We innovate and lead in a changing world

Our reputation is indivisible

 Our reputation relies on the actions and statements of every employee

 We build our reputation for the long term
 We are fair and ethical in all our dealings
 We benefit the local communities in which we operate

Our strategy for growth

 The chairman has described how we have built SABMiller into a strong, international operator capable
of further growth in earnings both now and into the future.
 We see this growth occurring over three time horizons.
 In the near term, we look mainly to our strong, established operations in South Africa, the rest of Africa,
Europe and, slightly further ahead, Central America. These are markets with many years of organic
growth still ahead of them.
  In the medium term, additional growth will come from turning round the recent big acquisitions, Miller
and Peroni, which we know have the potential to produce strong, sustainable profits.
 For the longer term, we are building on our positions in the large, emerging markets of China and India,
both of which are capable of generating much greater value. Depending on economic growth, there may
also be opportunities in Africa.
 In the longer term we also expect to see a natural consumer drift towards higher value, international
brands. Our global platform will give us the ability to distribute and develop our own portfolio of
international premium beers, so securing a further source of earnings.
 We believe this pattern of growth differentiates SABMiller from all its competitors. It also provides a
framework for reporting our progress in the past year.

Chief executive's review

 Now that we’re established in the top tier of international brewers, we aim to achieve sustainable growth
in earnings by building on our existing operations, restoring Miller in the US, strengthening our positions
in China and India and widening the reach of our premium brands.
 Well positioned to keep growing
 In a year of excellent results, our strong growth in reported earnings is due to three main factors. Firstly,
we’ve seen sound operational performances from each of our businesses around the world. Secondly,
while there’s still much to be done, our turnaround programme at Miller is starting to deliver results, with
particular momentum behind the Miller Lite brand. Thirdly, we’ve benefited from currency movements,
mainly the strengthening of the rand which has enhanced the strong organic growth and operational
improvements of our South African businesses.
 All these factors have contributed to the year’s excellent figures. Total beverage volumes were up 15%
at 173.9 million hectolitres with lager sales rising 19% to 137.8 million hectolitres. Further details of our
performance are in the review of operations.

A story of growth

 From its South African origins, SABMiller has become one of the world’s largest brewing companies.
With operations in over 40 countries, it has more beer brands in the world’s top 50 than any other
brewer and it ranks among the top three brewers in more than 30 countries. Every minute of every day,
consumers the world over drink an average of over 46,000 pints of SABMiller beer.
 SABMiller is passionate about brewing. From local beers steeped in tradition to brands that are
recognised around the world, the company’s ambition is always to offer an outstanding product. Its
quality is backed by some of the most efficient brewing and distribution operations in the industry – not
to mention its long and successful record of market research, brand development and superb marketing
in all corners of the world. Its success also lies in the way it conducts its business – with respect for
partners and employees and a desire to do the best for the local community.
 SABMiller’s history is one of exceptional growth and returns to shareholders. With its global footprint,
strong portfolio of brands and spread of operations in both mature and developing markets, SABMiller is
well placed to continue its growth.

///////////////////////////////////////////////////////////////////////////////////////////
//

http://mg.co.za/article/2009-07-10-sabmiller-to-invest-125m-in-new-angola-brewery

World number two brewer SABMiller will invest $125-million in a

new brewery and sparkling soft-drinks plant in Angola this year to
satisfy growing demand for beverages, it said in a statement on
Friday.
The London-based brewer of Grolsch, Pilsner and Peroni said the new brewery and soft-drinks
plant in Luanda would bolster its investment in the Southern African nation to $250-million in
the last 18 months.
"SABMiller remains positive about the potential of the Angolan market, and in conjunction with
our partners we are continuing to invest in what will be a bright future for the business," Mark
Bowman, managing director of SABMiller Africa, said in a statement.

"Angola's economy has held up well during the global economic crisis and our team on the
ground has risen to the challenges posed by supply-chain and infrastructural constraints," he
added.

The new facility, expected to be complete in October, will boost the number of SABMiller and its
joint venture partner, Empresa Cervejas de N'gola, breweries and bottling plants in Angola to
five.

SABMiller has brewing and beverage interests in 32 African countries, including Nigeria, a nation
of more than 140-million people. It is also one of the largest bottlers of Coca-Cola products in the
world. – Reuters

///////////////////////////////////////////////////////////////////////////////////////////
//

http://www.bloomberg.com/news/2011-01-18/sabmiller-quarterly-volume-beat-
estimates-on-emerging-markets.html

SABMiller Beer Volume Beats Estimates on Asia,

Africa Growth; Shares Gain
By Clementine Fletcher - Jan 18, 2011 12:22 PM GMT+0200

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SABMiller Plc, the world’s second- biggest brewer by volume, reported third-quarter lager sales that beat

analysts’ estimates as revenue stopped declining in Europe and growth continued in Asia and Africa.
So-called organic lager volume, which excludes the effect of acquisitions and disposals, rose 3 percent. That

beat the 1 percent median estimate of 11 analysts surveyed by Bloomberg News. Sales were unchanged in

Europe, beating estimates for a 3 percent drop and compared with the first-half’s 5 percent slide.

“Europe’s performance was blow-out,” Simon Hales, an analyst at Evolution Securities in London, wrote in

a note. “Momentum looks set to remain positive into the final quarter.” Hales has a “buy” recommendation

on the shares.

SABMiller gained the most in two months in London trading as the stronger European performance

accompanied volume growth of 12 percent in Asia and in Africa. Sales in the Ukraine were “significantly

higher,” helped by better economic conditions and the recent introduction of premium beers, while the U.K.

saw “continuing strong growth,” the brewer said.

SABMiller gained as much as 3.6 percent to 2,249.5 pence in London, the steepest intraday advance since

Nov. 18. The shares traded at 2,214.5 pence at 9:57 a.m. local time.

The improvement in European volume was achieved in spite of a 7 percent slump in Russia. Sales of beer in

Russia, the world’s fourth-largest beer market, rose 34 percent during the same period a year earlier as

retailers and drinkers stocked up on alcohol before a 200 percent tax increase on Jan. 1.

Carlsberg Gains

“Encouragingly for both SABMiller and Carlsberg A/S, management believe the impact of 2010’s Russia

duty increase is waning,” wrote Evolution’s Hales.

Carlsberg, the country’s biggest brewer, rose as much as 4.3 percent in Copenhagen trading today.

SABMiller’s volume growth in Asia was led by a 16 percent gain in China. The country represents about 20

percent of SABMiller’s volume, though only 2 percent of operating profit, according to analysts at UBS AG.

Growth in the Africa region was 8 percent excluding Zimbabwe, where SABMiller reinstated results of its

operations in October following the stabilization of the country.

“Continued improvement in economic conditions in many of our emerging markets assisted our volume

performance,” the company said. Revenue grew 6 percent at constant exchange rates.

Latin America
Volume fell 1 percent in Latin America as Colombia’s worst floods in 30 years caused beer sales in the

country to drop 5 percent, the London-based maker of Grolsch beer said.

Performance in Colombia was also affected by an increase in the value-added tax on beer to 14 percent from

3 percent on Feb. 1 last year, which prompted SABMiller to increase prices. Volume fell 3 percent in

Ecuador as government restrictions on alcohol sales stinted growth. Peru showed 8 percent growth.

“The weather conditions in South America are obviously difficult, but we believe SABMiller has lapped the

worst of the volume weakness caused by both the economic crisis and excise tax in key markets,” Anthony

Bucalo, an analyst at Credit Suisse in London, wrote in a Jan. 14 note.

SABMiller got 40 percent of its profit from Latin America in fiscal 2010 and said in November it bought the

owner of Argentina’s Isenbeck and Warsteiner beer brands.

South Africa

The volume of beer sold in SABMiller’s home market of South Africa rose 3 percent as drinkers bought

more Castle Lite and Castle lager. The brewer is aiming to increase its share in Africa’s primary beer market

to 90 percent from about 88 percent, it said in August 2010. It competes with Brandhouse Ltd., which is

owned by Heineken NV and Diageo Plc.

Volume at MillerCoors LLC, the U.S. joint venture between SABMiller and Molson Coors Brewing Co., fell

2.5 percent. Soft- drink volume for SABMiller grew 5 percent in the quarter.

The company “benefited from lower costs of certain raw materials” in the quarter, it said, without giving

details. Carlsberg said in November it would be impacted by rising prices for commodities including malt

and barley in the fourth quarter of 2010 and into 2011 as the cost of ingredients to make beer increased in

its eastern Europe region.

The reduction in costs is “due to SAB’s hedging arrangements” and is “something we expect to reverse as

more recent input cost headwinds” hit the company, analysts including Andy Smith at MF Global in

London wrote today.

/////////////////////////////////////////////////////////////////////////////////////////////////////

http://www.fin24.com/Companies/Crisis-affects-SABMiller-20090115

Crisis affects SABMiller

Jan 15 2009 12:35 James Monteiro Print this article  |  Email article
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SABMiller: SA lager sales down

 

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Johannesburg - Cash-strapped South Africans have spurned pricier premium lager brands and
stuck by traditional brands like Castle and Black Label.
According to a sales update from global brewing giant SABMiller, lager volumes for the
three months to end-December 2008 rose by 1% when compared with the same time in 2007.
SABMiller said its mainstream portfolio put in a "strong performance... as consumers traded
down in the light of tougher economic conditions".
"Given tough times, there has been a clear swing to mainstream brands and lower growth in
the premium segment," said Dirk Kotzé, a portfolio manager at Coronation Fund Managers.
SABMiller's local operation, SA Breweries (SAB), produces premium brands like Hansa
Marzen Gold, Pilsner Urquell, Peroni, Grolsch and Dreher for the South African market.
In 2007, SAB lost the right to brew and distribute Amstel in SA to Amstel's parent in SA
Brandhouse Beverages, the local joint venture company owned by Heineken, Diageo and
Namibia Breweries. Brandhouse is gearing up to compete with SAB and is building a
brewery south of Johannesburg.
Economic crisis hurts volumes
"SAB's strategy is to roll out an increasing number of premium brands ahead of the launch of
Heineken's new brewery. This appears to be working as Amstel's volumes seem to be
disappointing. It will be tough for Heineken to take SAB on in the mainstream area, which is
SAB's strength."
SAB, which owns local Coca-Cola, Fanta and Valpré producer Amalgamated Beverage
Industries, said soft drink volumes grew 11% over the prior year. It noted that 2007 had been
affected by stock shortages.
The brewer said it recorded a 1% decrease in lager volumes on an organic basis for the third
quarter. This excludes volumes for acquired businesses for the first 12 months after an
acquisition.
It said consumer demand had been affected by the global economic slowdown, and continued
to weaken in many of the group's markets. It also said its financial performance had been
supported by firm pricing and cost efficiencies, and that it was in line with the group's
expectations.
The marginal decrease in lager sales has been "exacerbated by country-specific issues",
Kotzé. In Colombia and Russia, volumes were down 6% and 22% respectively from the
previous year.
Analysts expect positive forward growth for 2009, barring issues that held back demand in
specific countries like Russia and Colombia, said Kotzé. Brokers' consensus forecast for
earnings, as polled by data service McGregor BFA, is for full-year earnings to rise to
1 054c/share.
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SABMiller to sell Tsogo Sun stake

By Jenny Wiggins

Published: February 18 2010 16:55 | Last updated: February 18 2010 16:55

SABMiller is likely to dispose of its stake in Tsogo Sun, the South African hotels and gaming business, after
agreeing to merge it with Gold Reef Resorts.

The brewer on Thursday said Tsogo Sun, in which it holds a 49 per cent stake, would join with Gold Reef to
create a new hotels and gaming company listed on the Johannesburg Stock Exchange. Tsogo Sun owns 24.9
per cent of Gold Reef.

EDITOR’S CHOICE
SABMiller cheered by African sales - Jan-18

SABMiller sets out hybrid growth model - Dec-01

SABMiller buys Argentine group - Nov-25

SABMiller gains from emerging markets’ thirst - Nov-18

http://www.ft.com/cms/s/0/597bf9a2-1c96-11df-8456-
00144feab49a.html#axzz1KqBWpr2j

Lex: SABMiller - Nov-18

SABMiller volume rises despite Latin America - Oct-18

SABMiller will own a 39.7 per cent stake in the new company, which will have a market capitalisation of $2.7bn.

The merger comes as the South African gaming industry struggles through a tough period due to the financial
crisis. As incomes fall, people spend less time in casinos.

The companies claimed the enlarged business would be better positioned for organic growth as well as
acquisitions. It will be the 36th largest company on the Johannesburg Stock Exchange.

The companies also said that the combined group would benefit from improving economic conditions and
increasing consumer spending in South Africa, as well as better access to capital.

SABMiller pooled all its hotel and gaming investments in Tsogo Sun in 2003 and the brewer is expected to
eventually sell its stake in the company to focus on its core beverages operations.

The gaming group, which owns South Africa’s Southern Sun hotels group, has annual sales of $348m and
earnings before interest, depreciation, tax and amortisation of $122m.

The brewer has been performing well in tough economic conditions, with overall lager volumes down just 1 per
cent in the first half of its 2010 fiscal year. SABMiller’s strong exposure to emerging markets has helped it
weather the financial crisis.

SABMiller’s shares were rose 17p to £17.39 in London.

Monitoring an d Evaluation:

Monitoring our progressour progress

Robust and relevant governance

The 10 sustainable development priorities were agreed by the group CARAC and the
SABMiller Executive Committee in 2006. Since then we have continued to review and refine
our approach in consultation with internal and external stakeholders.
The group Corporate Accountability and Risk Assurance Committee (CARAC) is a sub-
committee of the SABMiller plc board and is responsible for overseeing progress against our
10 sustainable development priorities. During the year CARAC was chaired by Lord Robert
Fellowes, the Senior Non-Executive Director of SABMiller plc.
Expert capability is provided by the corporate affairs team which co-ordinates activity across
SABMiller and promotes the sustainable development priorities to employees and external
stakeholders. We also have a pool of dedicated technical experts, each of whom has specific
knowledge relating to one of the priorities or a specific market.
Each region has its own CARAC, led by the regional managing director who oversees
activity at a local level and agrees the most relevant local strategy. The group CARAC is
regularly updated on each region’s progress and performance.

Measuring performance: The Sustainability Assessment Matrix (SAM)

To monitor and measure our progress, we have developed the Sustainability Assessment
Matrix (SAM). This is a bespoke management system that enables us to monitor the
performance of our operating businesses against the 10 sustainable development priorities.
Each priority has a ‘stairway’ that plots a course through four levels of performance from
minimum standard to best practice. To achieve each performance step (or level), a business
must meet a series of assessment criteria which includes both quantitative and qualitative
measurements. All SABMiller subsidiaries must achieve level one of each priority or have an
action plan in place to ensure they do so within an agreed timescale.
Each operation is required to complete an online assessment every six months. The results are
collated to create a ‘scorecard’ for each business and region and, ultimately, for the group.
The scorecards are assessed internally by regional and group CARACs and form part of our
wider business performance reviews and planning processes.