Annual Report - SABMiller India

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Notes to the consolidated financial statementscontinued30. Pensions and post-retirement benefits continuedThe group operates various defined contribution and defined benefit schemes. Details of the main defined benefit schemesis provided below:Miller pension schemesThe Miller Pension Plan is a single qualified defined benefit scheme covering both salaried non-union and union employees whilemaintaining separate benefit structures across the various employee groups. Substantially all salaried non-union employees hired priorto 1 January 2005 are covered by the plan which provides benefits for this employee group based on final average pay and years ofservice. Benefit accruals for salaried non-union employees ceased as of 31 December 2007. Benefit accruals for union employees arethe subject of collective bargaining and are based on a flat rate per year of service. In addition, through negotiations, benefit accrualshave been frozen for some of the union employee groups covered by the plan. As of 31 March 2008, the plan had a deficit ofUS$112 million given plan assets with a fair market value of US$887 million. This represents a funding level of 89%.Miller has two qualified defined contribution schemes that cover salaried non-union and union employees separately. The plan coveringsalaried non-union employees provides a basic company contribution equal to 5% of an employee’s pay along with a one-for-onecompany matching contribution up to 4% of an employee’s own contributions. For the plan covering union employees, the companymakes contributions for some of the union groups either through company matching contributions based on the employee’s owncontributions or a flat hourly contribution rate. In addition, substantially all salaried employees are covered by a survivor income benefitplan and a long-term disability plan.The company provides non-qualified unfunded defined benefit and defined contribution plans for certain employees whose benefitsunder the qualified plans are limited by regulation. As of 31 March 2008 the liabilities for these plans are US$13 million and US$1 millionrespectively.The most recent actuarial valuation of Miller’s post-retirement plan was carried out by independent professionally qualified actuaries at1 January 2007 using the projected unit credit method.Certain of Miller’s hourly employees participate in the Milwaukee Brewery Workers’ Pension Plan. As part of a withdrawal settlement,Pabst, which had participated in the plan prior to 1997, agreed to make annual contributions of approximately US$4 million to this planuntil 2013. The plan’s funded status net of the present value of Pabst’s withdrawal payments at 31 March 2008 is set out below.Market value of assets 42Present value of accrued obligations, net of Pabst withdrawal liabilities (79)Deficit (37)South Africa pension schemesThe group operates a number of pension schemes throughout South Africa. Details of the major scheme are provided below:The ABI pension fund Suncrush Pension Fund and Suncrush Retirement Fund are funded schemes of the defined benefit type basedon average salary with assets held in separately administered funds. The latest valuation of these funds was carried out at 31 March2008 by an independent actuary using the projected unit credit method. The liabilities were based on the transfer values of the activemembers and surplus allocated to the members, former members and pensioners as at 31 March 2008.From 1 July 2005 the funds were closed, all active members were transferred to either the ABI Provident Fund or the SAB StaffProvident Fund. The funds will be deregistered and liquidated once all assets and liabilities have been settled.The surplus apportionment scheme for the ABI Pension Fund has been approved by the Financial Services Board. Approval forthe surplus apportionment scheme for the Suncrush Pension Fund and Suncrush Retirement Fund is still outstanding. With regards tothe apportionment of the ABI Pension Fund surplus, in the current year the employer received their share of the surplus. The surplusdue to the members, former members and pensioners is yet to be distributed.Bavaria pension schemesThe group operates a number of pension schemes throughout Latin America. Details of the major scheme are provided below:The Colombian Labour Code Pension Plan is an unfunded scheme of the defined benefit type and covers all salaried and hourlyemployees in Colombia who are not covered by social security or who have at least 10 years of service prior to 1 January 1967. The planis financed entirely through company reserves and there are no external assets. The most recent actuarial valuation of the ColombianLabour Code Pension Plan was carried out by independent professionally qualified actuaries at 31 December 2006 using the projectedunit credit method. All salaried employees are now covered by the Social Security provisions. The principal economic assumptions usedin the preparation of the pension valuations are set out below and take into consideration changes in the Colombian economy.Grolsch pension schemeThe Grolsch pension plan, named Stichting Pensioenfonds van de Grolsche Bierbrouwerij, is a funded scheme of the defined benefittype, based on average salary with assets held in separately administered funds. The latest valuation of the Royal Grolsch pension fundwas carried out at 31 March 2008 by an independent actuary using the projected unit credit method. The principal assumptions used inthe valuation are listed below. The breakdown of the plan assets, based on the data as at 31 January 2008, is approximately 57% inbonds, 37% in equity and 6% in real estate.US$m124 Notes to the consolidated financial statementsSABMiller plc Annual Report 2008
30. Pensions and post-retirement benefits continuedPrincipal actuarial assumptions at 31 March (expressed as weighted averages)Defined benefit pension plansMedical and otherpost-retirement benefitsSouth Latin SouthMiller Africa America Grolsch Other Miller Africa Other% % % % % % % %At 31 March 2008Discount rate 6.5 n/a 10.3 4.8 4.8 6.5 9.0 10.3Salary inflation 3.5 n/a 5.7 2.5 3.0 – – –Pension inflation 4.0 n/a 5.7 2.5 3.0 – – –Healthcare cost inflation – – – – – 9.1 7.3 6.7Mortality rate assumptions:– Retirement age: Males 61 n/a 55 65 n/a 62 63 55Females 61 n/a 50 65 n/a 62 63 50– Life expectations onretirement age:Retiring today: Males 21 n/a 20 16 n/a 20 16 20Females 24 n/a 25 20 n/a 23 20 25Retiring in 20 years: Males 21 n/a n/a 18 n/a 20 16 n/aFemales 24 n/a n/a 20 n/a 23 20 n/aDefined benefit pension plansMedical and otherpost-retirement benefitsSouth Latin SouthMiller Africa America Other Miller Africa Other% % % % % % %At 31 March 2007:Discount rate 5.9 7.8 8.7 4.8 5.9 7.5 8.7Salary inflation 3.5 5.8 4.3 3.0 – – –Pension inflation 4.0 4.5 4.3 3.0 – – –Healthcare cost inflation – – – – 9.6 5.8 5.3Mortality rate assumptions:– Retirement age: Males 61 63 55 n/a 62 63 55Females 61 63 50 n/a 62 63 50– Life expectations onretirement age:Retiring today: Males 21 16 20 n/a 20 16 20Females 24 20 25 n/a 23 20 25Retiring in 20 years: Males 21 n/a n/a n/a 20 16 n/aFemales 24 n/a n/a n/a 23 20 n/aOverview Operating and financial review Governance Financial statements Shareholder informationNotes to the consolidated financial statements 125SABMiller plc Annual Report 2008
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Annual ReportSABMiller plc Annual R
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Our performance■ Group lager volu
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North AmericaMiller Brewing Company
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Share price 1 April 2003 to 31 Marc
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Chief Executive’s reviewSuccess r
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In South Africa, where SAB Ltd bega
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Grolsch: a strong additionto the pr
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A full portfolio in BotswanaSt Loui
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Developing relationships with large
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Leveraging our local value chainWhe
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Double digit organic constant curre
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+16%increase in dividendsfor the ye
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Our strong financial structure give
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In Panama lager volumes were up by1
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of 2.4% for the year complemented b
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Volumes grew in both the mainstream
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For our full Sustainable Developmen
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Priority Why it is Targets we set P
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For ease of reference, directors’
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considered by the board. The perfor
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5.6 The corporate accountability an
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The directors are responsible for t
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^ Corporate accountability and risk
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Directors’ reportThe directors ha
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As noted above the board has determ
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Remuneration reportIntroductionThis
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Annual incentive plansEach of the e
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During the year Mercer undertook th
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Directors’ beneficial interests i
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SABMiller plc Approved Share Option
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SABMiller plc Executive Share Purch
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Independent auditors’ reportto th
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Consolidated balance sheetat 31 Mar
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Consolidated statement of recognise
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1. Accounting policies continuedc)
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1. Accounting policies continuedInt
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1. Accounting policies continuedDer
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Page 77 and 78: 2. Segmental analysisPrimary report
Page 79 and 80: 2. Segmental analysis continuedBala
Page 81 and 82: 3. Net operating expenses continued
Page 83 and 84: 6. Employee and key management comp
Page 85 and 86: 8. Earnings per share2008 2007US ce
Page 87 and 88: 10. Goodwill continuedGoodwill allo
Page 89 and 90: 12. Property, plant and equipmentAs
Page 91 and 92: 13. Investments in associates conti
Page 93 and 94: 16. Trade and other receivables con
Page 95 and 96: 20. Deferred taxationThe movement o
Page 97 and 98: 21. Borrowings continuedNon-current
Page 99 and 100: 22. Financial risk factorsFinancial
Page 101 and 102: 22. Financial risk factors continue
Page 107 and 108: 23. Derivative financial instrument
Page 109 and 110: 24. Provisions continuedInsuranceIn
Page 111 and 112: 25. Share capital continuedDeferred
Page 113 and 114: 25. Share capital continuedc) Perfo
Page 115 and 116: 25. Share capital continuedOutstand
Page 117 and 118: 26a. Statement of changes in shareh
Page 119 and 120: 27a. Reconciliation of profit for t
Page 121 and 122: 28. Acquisitions and disposalsThe f
Page 123 and 124: 28. Acquisitions and disposals cont
Page 125: 29. Commitments, contingencies and
Page 129 and 130: 30. Pensions and post-retirement be
Page 131 and 132: 30. Pensions and post-retirement be
Page 133 and 134: 33. Principal subsidiary and associ
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Page 137 and 138: Independent auditors’ reportto th
Page 139 and 140: Notes to the company financial stat
Page 141 and 142: 1. Accounting policies continuedi)
Page 143 and 144: 3. Investment in subsidiary underta
Page 145 and 146: 8. Financial instruments continuedD
Page 147 and 148: 10. Profit and loss informationEmpl
Page 149 and 150: IFRS IFRS IFRS IFRS UK GAAP UK GAAP
Page 151 and 152: Ordinary shareholding analysesListe
Page 153 and 154: AdministrationSABMiller plc(Registr
Page 155 and 156: SGS-COC-003115Printed on a 75% recy
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Annual Report - SABMiller India

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