Download the interactive SABMiller plc 2011 Annual report PDF

More documents

Recommendations

Info

SABMiller plc Annual Report 2011 9 Águila Light A lighter version of Águila, the classic Colombian beer, Águila Light has become a new option for the consumer looking to experience a lighter taste. Origin: Colombia First brewed: 2002 www.aguilalight.com Corporate governance Being the most admired company in the sector naturally requires the highest standards of transparency, ethics and corporate governance. The directors are committed to maintaining these standards while also providing the leadership, controls and strategic oversight to ensure we deliver value to all the company’s shareholders. Each director brings independence of character and judgement to the role. Board and committee meetings are characterised by robust, constructive debate based on high-quality reporting from management, and the board keeps its performance and core governance principles under regular review. I am most grateful to my board colleagues, not only for maintaining these principles but for their wise oversight of the business and the guidance and support they have given me during the year. After extensive consultation, the Financial Reporting Council (FRC) issued a new UK Corporate Governance Code in May 2010. We welcome the new Code and endorse the emphasis it places on the roles and responsibilities of the board. We believe that good corporate governance depends principally on high-calibre individuals with deep experience of our company and industry, a clear understanding of their role and responsibilities and the tools necessary to discharge their responsibilities, rather than on prescriptive, boxticking requirements about committee composition or length of service. The board has continued to evaluate the balance of skills, knowledge and experience among its members and is committed to progressive renewal through orderly succession. Through the nomination committee, we have appropriate succession plans for our non-executive directors, executive directors and senior management with due regard to the need for diversity. At SABMiller we have one of the most internationally diverse boards in the FTSE 100 index and five of the last seven independent non-executive directors appointed by the board have been women. Given that two of these directors, Maria Ramos and Liz Doherty, were subsequently appointed to senior roles in other companies and had to resign from the board of SABMiller plc, we were delighted to announce the appointment of two new nonexecutive directors, Lesley Knox and Helen Weir, in May 2011. Both bring a wealth of strategic, financial and international experience and we are extremely fortunate to have secured their services. One third of the company’s independent nonexecutive directors are women and the company is well placed as to the future balance of the board. Both of our new directors will be members of the audit committee and Lesley Knox will also be a member of the remuneration committee. Also in May 2011, we announced the planned retirement of Malcolm Wyman as chief financial officer and the appointment of Jamie Wilson as his successor. Malcolm is a very special individual and has played a pivotal role in SABMiller’s transformation from a small regional business into a leading global brewer and shareholders will have an opportunity to express their gratitude at this year’s annual general meeting. We wish Malcolm and his wife a long and happy retirement. Previously the Finance Director of our business in Europe, Jamie brings outstanding talent and considerable industry experience in both financial and general management to the role of chief financial officer. His appointment will further enhance the commercial focus of the finance function. The board unanimously recommends his election as a director following his appointment in succession to Malcolm. In line with our plans made at the time of the merger, we have announced the appointment of Tom Long as the new chief executive officer of our North America joint venture, MillerCoors, with effect from 1 June 2011. Tom brings extensive industry experience, having served previously as chief executive officer and marketing officer of Miller Brewing Company. Tom takes over from Leo Kiely, who has successfully guided the integration and start-up of MillerCoors. We extend our thanks to Leo for his enormous contribution and wish him well in his retirement. Barry Smith, President SABMiller Latin America, retired in December 2010. Barry made an exceptional contribution to the group and left with our very best wishes. Further details of the directors’ approach to corporate governance can be found in the corporate governance report which appears on pages 57 to 64. Outlook While consumer demand is likely to continue growing in most developing markets, there are uncertainties in the outlook for inflation and the pace of recovery in Europe and North America. Pricing will be considered selectively, country by country, taking account of an expected moderate increase in our raw material input costs, the competitive context and our intention to achieve growth through affordability in some markets. In line with our established strategic priorities, we plan to drive growth by further strengthening and extending our brand portfolios and channel management capabilities while maintaining our focus on cost control and productivity. Overview Business review Governance Financial statements Shareholder information Meyer Kahn Chairman
SABMiller plc Annual Report 2011 10 Global beer market trends Growth driven by emerging markets The global beer market 1 In the past decade, the global beer market has gone through a process of rapid change. In many emerging and developing markets, economic and societal developments and transformative improvements in the quality and appeal of beer brands have resulted in strong organic growth in the beer category. Developed markets have also undergone change as brewers have responded to constrained or declining beer consumption trends. Industry consolidation has continued apace, and today the four largest brewers – Anheuser-Busch InBev, SABMiller, Heineken and Carlsberg – produce almost half of all industry volume and generate up to 70% of industry profits 2 . Beer industry consolidation has continued during the last 12 months, with smaller transactions in Asia, Africa and Latin America. Global beer sales by volume in 2010 1 1 AB-InBev 18% 2 SABMiller 14% 3 Heineken 9% 4 Carlsberg 5% 5 Other 54% 2 Source: Canadean 5 4 Alcohol trends Beer consumption continues to rise in Africa, Latin America and Asia, driven by growth in population and incomes and improvements in beer quality and appearance. In this context, many consumers are shifting from informal and unregulated forms of alcohol to aspirational, attractivelybranded and safer commercial beers. The beer category is therefore growing at the expense of subsistence alcohol. Commercially produced beer has also been claiming a greater share of the regulated commercial alcohol market in emerging countries. On a pure alcohol basis, its share rose from 34% in 2000 to 40% in 2010. Beer category trends Despite economic pressures, total global beer consumption recovered slightly in 2010, growing at over 2% after a downturn in 2009, caused by the global economic recession. Over the past five years, the global beer category has maintained an average compound annual growth rate (CAGR) of 3.3%. In 2010, emerging markets grew at an average CAGR of 5.7% – the main growth coming from China, Africa and South America – while developed markets declined by 1.7%. 3 Within the emerging markets, China recorded volume growth of 6% and, despite inflationary pressures, an increase in volumes of premium lager. Africa saw healthy growth of 8% with increased volume in both the premium and more affordable price segments, driven by Angola, Nigeria, Tanzania, Ghana, Uganda and the DR Congo. Latin American beer volumes grew by 3% in 2010, with reductions due to a material tax increase in Colombia, more than offset by rapid growth in countries such as Peru. In Eastern Europe, beer volumes declined by almost 5% in the face of continuing unemployment and depressed consumer confidence affecting beer sales in bars and restaurants. Beer consumption in developed markets continues to suffer from high unemployment, high fuel prices and constrained consumer spending. In the USA, where unemployment is particularly severe among key beer drinkers, beer volumes have fallen slightly although accompanied by consumer uptrading between industry price segments. Beer volumes continue to decrease in Western Europe as consumers switch to other beverages and reduce on-premise consumption. Outlook In the 2011 calendar year, global beer market volume growth is forecast to be 2.5%, led by continuing strong performances in Asia, Africa and Latin America. China and Africa are expected to grow by almost 5% and Latin America by almost 3%. Looking ahead to 2015, it is likely that growth will continue to be led by emerging markets. The 25 fastest-growing markets are forecast to deliver over 5% CAGR in beer volumes. China is expected to account for almost 40% of this growth with Vietnam, Brazil, Ukraine, Nigeria, India and Peru contributing significantly. Beer growth trends by volume % Forecast five-year compound annual growth rate (CAGR) by region – 2011-15 5 4 3 2 1 0 Global Africa Source: Canadean Asia Eastern Europe Latin America North America Western Europe Alcohol category growth % Beer share of alcohol trends in major emerging markets 100 Wines 80 60 40 20 00 02 04 06 08 10 Source: Canadean 1 All data sourced from Canadean unless otherwise stated Spirits Beer Overview Business review Governance Financial statements Shareholder information 2 JPMorgan Cazenove report European Beverages, 21 July 2010
Page 1 and 2: SABMiller plc Annual Report 2011 We
Page 3 and 4: SABMiller plc Annual Report 2011 Co
Page 5 and 6: Performance highlights Delivering e
Page 7 and 8: SABMiller plc Annual Report 2011 3
Page 13: SABMiller plc Annual Report 2011 8
Page 23 and 24: Strategic priorities SABMiller has
Page 55 and 56: Governance An introduction to the b
Page 65 and 66:
SABMiller plc Annual Report 2011 59
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Shareholder information Information
Page 179 and 180:
Page 181:
Cautionary statement This document
show all

Download the interactive SABMiller plc 2011 Annual report PDF

Create successful ePaper yourself

Delete template?

Save as template?