Annual Report - SABMiller India

Share price 1 April 2003 to 31 March 2008(£ sterling)15.0012.009.006.003.0003Source: Thomson DatastreamWhile the full benefits are yet to berealised, progress has been in line withour expectations with lager volumes up5% against an exceptional prior-yearperformance, and EBITA rising 17%.Europe delivered another excellent resultwith organic lager volume growth of 8%and reported EBITA up by 30%. Volumeswere particularly strong in Poland, Romaniaand Russia while stronger pricing andimproved productivity more than offsethigher input costs.In North America, Miller BrewingCompany made good progress inreshaping its portfolio to address highermargin,higher-growth segments of themarket while also achieving price gainsand a segment-leading 1.1% growth insales for its flagship brand, Miller Lite.Reported EBITA grew by 27%, mainlyas a result of strong pricing, highervolumes and productivity and aone-off reduction in canning costs.The strong growth in Africa and Asiacontinued with lager volumes growingorganically by 15%. Our African operationsbenefited from robust economic conditionsand a major investment programme isunder way to meet growing demand.In China, the Snow brand enjoyedexceptional growth of 63%, cementingits position among the top three beerbrands in the world. EBITA for the regionincreased by 22% to US$568 million.Finally, in South Africa, SAB Ltd posteda satisfactory result, maintaining salesvolumes despite losing a major premiumbeer brand before the start of the year.SABMillerInternational brewers index04 05 06 07 08However, reported EBITA declined by7%, reflecting lower premium volumesand significant cost increases in brewingmaterials and distribution, and a weakeningof the local currency.Board and executiveIt is now nine years since the companylisted on the London Stock Exchange.We have been fortunate to retain theservices of several distinguished nonexecutivedirectors for the whole of thatperiod, benefiting considerably from theirinsight and experience. The board doesnot consider it to be in the interests of thecompany to require all four of the directorswho have served for nine years to retireat the same time, favouring continuityand stability through orderly succession.Accordingly, we have announced, athis own request, the retirement of RobinRenwick and the appointment of twonew independent directors.Robin Renwick has made a unique andimportant contribution to your company’ssuccess, both pre- and post-listing. Hehas been a diligent and committed director,chairing almost all the board committeesat various times during his tenure. I thankhim most warmly for his efforts.Our two new directors joined the boardon 15 May. Rob Pieterse is Chairman of thesupervisory boards of Mercurius Groep B.V.and Royal Grolsch N.V. and was formerlyChairman of Wolters Kluwer N.V. MariaRamos is Group Chief Executive of SouthAfrica’s largest transport, infrastructureand logistics firm, Transnet Limited, havingpreviously been Director-General of theSouth African National Treasury.During the year both André Parker,Managing Director of SABMiller Africaand Asia, and Norman Adami, Presidentand CEO of SABMiller Americas, retired.As long serving executives they haveboth made significant and enduringcontributions to the business and willbe greatly missed. The group has beenfortunate in having a number of longservingexecutives who have showntheir dedication and commitment tothe company over many decades. In thisregard I congratulate the Chief Executive,Graham Mackay, on completing 30 yearsservice, 11 years leading the company,and wish him continued success.I am grateful to all my board colleagues fortheir guidance and advice – not to mentiontheir invaluable contribution in upholdingthe highest standards of corporategovernance. The recent board changeswill enhance the balance of independenceon the board, while continuing the processof progressive renewal.Finally, I would like to welcome to theSABMiller family our new colleagues fromGrolsch and to thank all our executives,managers and staff who have workedextremely hard to produce the currentset of results. I am also indebted to ourmany business partners and to you,our shareholders, for your support.OutlookThis has been another year of stronggrowth for the group. In the current year,volume growth in the first half will beaffected by high comparative growthrates, and pressure on input costs willcontinue to increase although pricingand mix benefits are again expected tocompensate for these cost increases.The economic outlook across our globalfootprint, which is biased towards growthmarkets in developing countries, remainspositive, and we will continue to benefitfrom the strength of our brands,operational capability and investmentfor growth.Meyer KahnChairmanOverview Operating and financial review Governance Financial statements Shareholder informationChairman’s statement 5SABMiller plc Annual Report 2008