Sanford C. Bernstein
Strategic Decisions Conference 2014
Alan Clark
Chief Executive
SABMiller plc
17 September 2014
Forward looking statements
This presentation includes „forward-looking statements‟ with respect to certain of SABMiller plc‟s plans, current goals and expectations
relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend”,
“estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation,
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 forwardlooking 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 document. 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.
All references to “EBITA” in this presentation refer to earnings before interest, tax, amortisation of intangible assets (excluding
software) and exceptional items. EBITA also includes the group‟s share of associates‟ and joint ventures‟ EBITA on the same basis.
All references to “organic” mean as adjusted to exclude the impact of acquisitions and disposals, while all references to “constant
currency” mean as adjusted to exclude the impact of movements in foreign currency exchange rates in the translation of our results.
References to “underlying” mean in organic, constant currency.
© SABMiller 2014
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Who we are
•
The world’s second largest brewer, with total
beverage volumes of 318mhl
•
Group net producer revenue* of $27 billion
•
EBITA* of $6.5 billion
•
72% of EBITA* from developing economies
•
Strategic partnerships with Castel, CRE, Efes
and The Coca-Cola Company
•
Compound annual topline growth of 7% and
eps growth of 12% over the past decade
* Including attributable share of associates and joint ventures
No. 1 or 2 beer market positions across the world
No. 1 or 2 national market
share positions deliver
95% of our lager volumes
© SABMiller 2014
A global brewer built on local insights
© SABMiller 2014
5
Nurturing large, powerful brands: national leaders
© SABMiller 2014
6
Nurturing large, powerful brands: national leaders
Colombia
8.5 mhl
41% market share
Mozambique
Redd`s
Club Colombia
Pilsen
Aguila Light
Aguila
Poker
Other
SABM
9.1 mhl
42% market share
0.0 2.0 4.0 6.0 8.0 10.0
Thousands
Poland
5.1 mhl
12% market share
© SABMiller 2014
Heineken
Impala
Castle Lite
Laurentina
Manica
2M
Other
SABM
0.0
0.3
0.5 0.8 1.0
Thousands
China
Lech Premium
Harnas
Tatra Pils
Zywiec
Zubr
Tyskie
Other
SABM
0.0
2.0
96 mhl
21% market share
4.0
6.0
Thousands
7
Xuejin
Jinxing
Harbin
Yanjing standard
Tsingtao Main
Snow
Other
SABM
0.0
25.0 50.0 75.0 100.0
Thousands
Nurturing large, powerful brands: regional and global
Global
Regional
Kozel:
•
3.7 mhl across 10
European countries
Castle:
•
7.9 mhl across 12 African
countries
© SABMiller 2014
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Full local portfolios in the context of market pricing
Well positioned on alcohol price ladders
North America
North America
International premium spirits
Price index: 300+
North America
Mainstream Lager
Affordable Lager and
Stout and Commercial sorghum
Homemade brews & local spirits
© SABMiller 2014
Asia
Asia
Price index: 150-300
Latin
America
South
Africa
Local Premium Lager
Europe
Latin America
Latin America
Imported and superpremium beer
Europe
Europe
Price index: 110-140
South Africa
Price index: 100
Price index: 50-80
Size: 3 to 4 times larger than the
commercial alcohol market (Africa)
Price index: 20-50
9
South Africa Asia
Africa
Africa
Africa
Sustainable development
Prosper
A thriving
world
© SABMiller 2014
A sociable
world
A resilient
world
10
A clean
world
A productive
world
A decade of sustained growth
F04 index = 100
F04-F14 CAGR
340
Organic Lager Volume
300
Group Revenue
260
EBITA
12.0%
9.4%
EPS adjusted
220
7.0%
180
3.5%
140
100
F'04
F'05
F'06
F'07
F'08
F' 09
Source: SABMiller results F04 = 100, growth – organic constant currency
© SABMiller 2014
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F'10
F' 11
F' 12
F'13
F'14
Our evolving strategy
• Drive superior topline growth
o
A growth strategy for the beer category
• Liberate resource to win in market
and reduce costs
• Shape global footprint to contribute
to superior growth
Strategic choice #1
Drive superior
topline growth
A growth strategy for
the beer category
Extending
refreshment
occasions
Romancing
core lager
Capturing
wine and
spirits
occasions
Improving
premium mix
Ensuring
affordability
© SABMiller 2014
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Strategic choice #2
Liberate
resource to win
in market and
reduce costs
• Building upon capabilities developed to deliver continuous
cost savings and efficiencies
• Next generation cost savings programme: to deliver
incremental direct savings rising to approximately US$500m
by 31 March 2018
• Key programme initiatives:
– Global business services, centres in Bogota, Krakow and Bangalore
– Further performance enhancements across our global supply chain
operations
– Expand the scope of global SABMiller Procurement to reach in
excess of 80% spend under management
© SABMiller 2014
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Strategic choice #2
Win with leading execution across channels
Liberate
resource to win
in market and
reduce costs
© SABMiller 2014
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Strategic choice #3
Shape global
footprint to
contribute to
superior growth
© SABMiller 2014
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Conclusion
Clear category vision, superior topline growth, reducing costs
© SABMiller 2014
Presentation information in footer
17
Thank you