Zambrew and Natbrew Investor presentation 10 July 2014

Zambian Breweries Plc. Investor conference call

10 July 2014

Full year results

Twelve months ended 31 March 2014

© SABMiller 2014 Zambian Breweries Plc

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 forward-looking 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.

2

© SABMiller 2014 3Zambian Breweries Plc.

Agenda

1. Welcome

2. Trading and business environment

3. Historical brand performance

4. Market share

5. Strategic review

6. Managing sustainable development

7. Financial highlights

8. Total tax payments

9. Excise

10. CAPEX

11. Prospects

12. Dividend declaration

© SABMiller 2014 4

Trading and business environment Economic conditions and regulatory environment - generally good

Removal of Maize and Fuel subsidies in May – drop in disposable income

Easing of government regulations SI 55 and SI 33

Commissioned our new packaging line in Ndola (Half 1)

Exchange rate depreciation in last quarter against the US$ and ZAR

Increase in excise rate by 50% from 40% to 60%

Zambian Breweries Plc

© SABMiller 2014 Zambian Breweries Plc. 5

Strategic review Investment in systems and processes to enhance our operational efficiency

Increase in excise tax and subsequent reduction in volume leaves us with excess capacity

Our brands have continued to grow confirming our commitment to quality

Soft drinks performance was impressive in the year

We continued to secure our value chain through local sourcing

The imminent construction of a US$ 37.4m Maltings plant confirms our commitment to this program


Historical brand performance

F'10 F'11 F'12 F'13 F'140

100

200

300

400

500

600

700

800

Brand performance in Hl'000

CastleMosiCastle LiteCarling Black Label


Historical market share F’14

ZBL; 91%

Other; 9%

Clear Beer Market share

ZBL; 59%

Other; 42%

Soft Drinks Market share

© SABMiller 2014

Proposed investments - Maltings

Zambian Breweries Plc. 8

Total investment – US$ 37.4m

© SABMiller 2014 9Zambian Breweries Plc.

Managing sustainable development

Our main Corporate Governance activities for F’14 include:

Combating alcohol abuse – Education and Drink Driving campaign

Itawa Springs project in Ndola – total investment US$ 300k in partnership with GIZ

Reduction in Water Usage

Recycling research and project establishment

Fighting Malaria

Financial Highlights


Historical operating profit performance

F'09 F'10 F'11 F'12 F'13 F'140

10

20

30

40

50

60

23.2

11.0

28.6

34.6

44.7

54.0

Operating profit performance (US$'m)


Exchange rate

ZMK/ZAR

Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT)

Line, ZARZMW=R, Bid(Last)26/06/2014, 0.5740, +0.0013, (+0.23%)

PriceZMW

Auto0.490.5

0.51

0.52

0.53

0.54

0.55

0.56

0.57

0.58

0.59

0.6

0.61

0.62

0.63

0.64

0.65

0.66

Dec J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar Apr May J un J ulQ4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014

ZMK/USD

Daily ZMW= 07/11/2012 - 29/07/2014 (GMT)

Line, ZMW=, Bid(Last)26/06/2014, 6.1050, +0.0350, (+0.58%)

Price/ USD

Auto

5

5.2

5.4

5.6

5.8

6

6.2

6.4

6.6

6.8


Good positive pricevariance on imports during the financial Year to Q3

Significant depreciation in the last quarter (13%)


Financial highlights (1) Strong performance for 2014

Lager volume growth +6.2% (impact of excise on Q4 year on year -19%)

Soft drinks volume growth +17.2%

Net producers revenue growth +7.0%

Operating profit +20.8%

Above contributing to operating profit margin growth +260bp


Financial highlights (2)

Finance costs dropped by 42% and effective tax rate down to 30%

Profit after tax growth of +57.0%


Financial performance – 31 March 2014 (1)

US$’ 000 Mar-14 Mar-13 Change %

Reported

Net producers revenue (NPR) 236,291 220,811 7.0%

Operating profit 53,997 44,704 20.8%

Operating profit % NPR 22.9% 20.2% 260bp

Sales volumes (Hl'000)

Total 2,122 1,922 10.4%

Lager 1,262 1,188 6.2%

Soft drinks 860 734 17.2%


Financial performance – 31 March 2014 (2)US$’ 000 Mar-14 Mar-13 Change %

NPR 236,291 220,811 7.0% Gross profit 112,256 102,706 9.3% Gross margin (%NR) 47.5% 46.5% 100bp Net operating expenses (58,294) (58,268) 0.0% Exchange gains 34 267 Operating profit 53,997 44,704 20.8% Finance costs (8,303) (14,367) -42.2% Profit before tax 45,694 30,337 50.6% Income tax expense (13,751) (9,987) 37.7% Profit for the year 31,944 20,351 57.0%

© SABMiller 2014 Zambian Breweries Plc.. 17


US$’ 000 Mar-14 Mar-13 Cash generated from operating activities 53,413 52,061 Cash generated from investing activities (40,619) (50,008) Cash generated from financing activities (20,393) (20,599) Net decrease in cash and cash equivalents (7,599) (18,546) Cash at start of the year 707 22,681 Exchange differences (168) (3,384) Cash and cash equivalents at end of the year (7,060) 751


Total tax payments

US$TAXES PAID F14Road Tax/Carbon Tax Levies 20,704 Land Tax 69,535 Employee social security paid by the co. (NAPSA) 1,206,928 Corporate Tax 2,537,119 Withholding Tax - Rent, Royalties, Consultancy 2,262,220 Employee Income Tax/Personal Levy 5,183,456 Customs Duty 12,422,897 Net VAT/Sales Tax paid to Revenue 36,957,273 Excise Duty - Beer 60,755,615 TOTAL 121,415,747


Total tax payments

F14 TAXES PAID Road Tax/Carbon Tax Levies

Land Tax

Employee social security paid by the co. (NAPSA)

Corporate Tax

Withholding Tax - Rent, Royalties, Consultancy

Employee Income Tax/Personal Levy

Customs Duty

Net VAT/Sales Tax paid to Revenue

Excise Duty - Beer


Excise increase impact on 375ml RGB volume sales (hl’000)

Volume decline Q4 2014 over Q4 2013 amounts to -19%

This volume decline is projected to negatively impact on government tax revenues in the F15 financial year.

Jan '13 Feb '13 Mar '13 Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '1440

50

60

70

80

90

100

110

120

79

68

91

84

99

85

96

106

111

97 98

112

72

56

71


CAPEX Total CAPEX spend at 31 March 2014 amounted to US$ 43m.

The largest spend items include:

Ndola upgrade US$ 15.7m

Lusaka and Ndola manufacturing upgrades US$ 6.7m

Distribution US$ 2.8m

Containers (Bottles and Crates) US$ 13.8m

The main CAPEX for the financial year ended 31 March 2015 incudes the Maltings plant - US$ 16.9m

© SABMiller 2014

Key financial ratios (US$ where applicable)

Zambian Breweries Plc. 22

Per Hl Analysis F'09 F'10 F'11 F'12 F'13 F'14

NPR/Hl 106.18 101.71 110.40 113.47 114.88 111.37 Gross profit/Hl 50.51 41.82 51.72 50.71 53.44 52.91 Fixed costs/Hl * 35.06 33.51 30.41 29.36 28.30 29.66 Operating profit/Hl 20.36 8.76 19.43 21.35 23.26 25.45

Ratios

Operating profit margin 19.2% 8.6% 17.6% 18.8% 20.2% 22.9%Gross profit Margin 47.6% 41.1% 46.8% 44.7% 46.5% 47.5%Interest cover ratio (times) 4.8 1.1 2.0 3.3 3.1 6.5 Effective tax rate 40.0% 118.8% 32.9% 40.8% 32.9% 30.1%Return on assets 8.7% -0.1% 4.5% 5.3% 6.9% 10.9%Return on equity 29.3% -0.4% 18.7% 11.5% 14.3% 20.7%Return on Capital employed 18.5% 5.2% 13.6% 12.9% 15.2% 18.5%Fixed Assets turnover ratio 1.3 0.8 1.0 1.0 1.0 1.1 Earning per share 0.03 (0.00) 0.02 0.03 0.04 0.06

Balancesheet ratios

Current ratio 0.46 0.50 0.93 0.68 1.20 1.19 Debt ratio 70% 80% 76% 54% 52% 47%Debt - Equity ratio 2.4 4.1 3.2 1.2 1.1 0.9 Capitalisation ratio 26% 63% 67% 17% 38% 31%

*Fixed costs as per internal reporting


Prospects We have confidence in the resilience of our business

Strategic infrastructure investments will go ahead on the premise of future growth

Strong performance of the agricultural and construction sector will be key to increasing wealth redistribution and the opening up of the rural sectors

We will continue to increase our geographic reach to capture this growth

The exchange rate depreciation and interest rate hikes will have a significant impact on our business

Faced with the excise tax increase, declining beer volumes and excess capacity, we need to implement measures to safeguard profitability and business sustainability.


Dividend declaration

ZAMBIAN BREWERIES PLC Final Dividend

FOR THE YEAR ENDED 31 MARCH 2014

At a Board Meeting held on Wednesday, 14th May 2014, the Board resolved to

recommend a final dividend payment of 40% for the year ended 31 March 2014.

The payment of the dividend of K0.128 per share was approved at the AGM on 1

July 2014.


Thank you

Questions?

National Breweries Plc. Investor conference call

10 July 2014

Full year results

Twelve months ended 31 March 2014

© SABMiller 2014 National Breweries Plc

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 forward-looking 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.

27

© SABMiller 2014

Agenda

1. Welcome

2. Trading and business environment

3. Strategic review

4. Managing sustainable development

5. Financial highlights

6. Total tax payments

7. CAPEX

8. Prospects

9. Dividend declaration

28National Breweries Plc.

© SABMiller 2014

Trading and business environment

Economic conditions and regulatory environment - generally good

Easing of government regulations SI 55 and SI 33

Kitwe Chibuku Super production in Kitwe fully up and running

Removal of Maize and Fuel subsidies in May – drop in disposable income

Production challenges in the Kitwe brewery impacted Carton volumes

Competition from the bulk sector remained significant despite legislation

National Breweries Plc. 29

© SABMiller 2014

Strategic review

Investment in systems and processes to enhance our operational

efficiency

Chibuku Super PET and Returnable Bottle category expansion,

Investment of US$ 29.1m in the new Lusaka Brewery off the

strong growth of Chibuku Super

Doubling of production to 2.1 million hectolitres from 1 million in

Lusaka


© SABMiller 2014

Proposed investments – New Lusaka Brewery


Total investment – ZMW 29.0m

© SABMiller 2014

Managing sustainable development

Our main Corporate Governance activities for F’14 include:

Combating alcohol abuse – Education and Drink Driving campaign

Reduction in Water Usage.

Recycling research and project establishment

Fighting Malaria

32National Breweries Plc.

Financial Highlights

© SABMiller 2014

Historical operating profit performance


2009 2010 2011 2012 2013 20140.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

9.510.5

12.0 11.0

10.2

13.3Operating profit performance (US$'m)

© SABMiller 2014 National Breweries Plc. 35

Exchange rate

ZMK/ZAR

Daily ZARZMW=R 07/11/2012 - 29/07/2014 (GMT)

Line, ZARZMW=R, Bid(Last)26/06/2014, 0.5740, +0.0013, (+0.23%)

PriceZMW

Auto0.490.5

0.51

0.52

0.53

0.54

0.55

0.56

0.57

0.58

0.59

0.6

0.61

0.62

0.63

0.64

0.65

0.66


ZMK/USD

Daily ZMW= 07/11/2012 - 29/07/2014 (GMT)

Line, ZMW=, Bid(Last)26/06/2014, 6.1050, +0.0350, (+0.58%)

Price/ USD

Auto

5

5.2

5.4

5.6

5.8

6

6.2

6.4

6.6

6.8


Good positive pricevariance on imports during the financial Year to Q3

Significant depreciation in the last quarter (13%)

© SABMiller 2014

Financial highlights (1)

Chibuku Carton volume decline -17.8%

Chibuku Super volume growth +272.3%

Net producers revenue growth +9.7% driven by positive mix towards Super

Operating profit +30.7% driven by positive margin mix towards Super

Above contributing to operating profit margin growth +300bp

Profit after tax growth of +34.6%


© SABMiller 2014



US$’ 000 Mar-14 Mar-13 Change %

Reported

Net revenue (NPR) 71,653 65,300 9.7%

Operating profit 13,298 10,178 30.7%

Operating profit % NPR 18.6% 15.6% 300bp

Sales volumes (Hl'000)

Total 2,179 2,321 -6.1%

Chibuku Carton 1,831 2,227 -17.8%

Chibuku Super 348 93 272.3%

© SABMiller 2014



US$’ 000 Mar-14 Mar-13 Change % NPR 71,653 65,300 9.7% Gross profit 24,862 20,675 20.2% Gross margin (%NPR) 34.7% 31.7% 300bp Net operating expenses (11,500) (10,348) 11.1% Exchange losses (64) (149) Operating profit 13,298 10,178 30.7% Finance income/(costs) 98 (42) Profit before tax 13,396 10,136 32.2% Income tax expense (4,945) (3,855) 28.3% Profit for the year 8,451 6,280 34.6%

© SABMiller 2014



US$’ 000 Mar-14 Mar-13 Cash generated from operating activities 13,397 8,297 Cash generated from investing activities (11,217) (7,434) Cash generated from financing activities - (174) Net increase in cash and cash equivalents 2,180 689 Cash at start of the year 2,359 1,768 Exchange differences 134 51 Cash and cash equivalents at end of the year 4,672 2,508

© SABMiller 2014

Total tax payments


US$TAXES PAID F'14Other Employee Tax - Personal Levy 930 Road Tax/Carbon Tax Levis 19,337 Council Rates & Levis 19,571 Employee Income Tax (PAYE) 209,788 Withholding Tax - Rent, Royalties, Consultancy 373,537 Employee social security (NAPSA) 398,380 Corporate Tax 1,828,464 Excise Duty 5,510,552 VAT 9,792,542 TOTAL 18,153,101

© SABMiller 2014

Total tax payments


Other Employee Tax - Personal Levy

Road Tax/Carbon Tax Levis

Council Rates & Levis

Employee Income Tax (PAYE)

Withholding Tax - Rent, Royalties, Consul-tancy

Employee social security (NAPSA)

Corporate Tax

Excise Duty

VAT

F14 TAXES PAID

© SABMiller 2014

CAPEX Total CAPEX spend at 31 March 2014 amounted to

US$ 11m.

The largest spend items include:

Lusaka Brewery upgrade US$ 9.1m Distribution US$ 1.0m

The main CAPEX for the financial year ended 31 March 2015 includes the Lusaka Brewery upgrade of US$ 15.9m


© SABMiller 2014

Key financial ratios (US$ where applicable)


Per Hl Analysis F'09 F'10 F'11 F'12 F'13 F'14

NPR/Hl 27.38 27.59 28.56 28.72 28.14 32.88 Gross profit/Hl 12.97 13.13 11.27 11.17 8.91 11.41 Fixed costs/Hl* 6.21 6.42 6.51 7.93 6.03 7.03 Operating profit/Hl 5.56 6.12 6.32 6.36 4.39 6.10

Ratios

Operating profit margin 20.3% 22.2% 22.1% 22.1% 15.6% 18.6%Gross profit Margin 47.4% 47.6% 39.5% 38.9% 31.7% 34.7%Interest cover ratio (times) 49.3 53.6 65.8 113.6 109.8 372.7 Effective tax rate 36.5% 37.9% 35.6% 35.6% 38.0% 36.9%Return on assets 56.4% 40.7% 44.8% 46.6% 25.1% 22.9%Return on equity 169.9% 111.4% 120.1% 126.2% 56.4% 48.7%Return on Capital employed 90.7% 66.8% 69.4% 72.9% 40.6% 36.0%Fixed Assets turnover ratio 8.4 6.9 7.2 5.9 4.7 3.5 Earning per share 0.09 0.10 0.12 0.11 0.10 0.13

Balancesheet ratios

Current ratio 0.79 1.02 1.03 0.80 0.95 0.99 Debt ratio 67% 63% 63% 63% 56% 53%Debt - Equity ratio 2.0 1.7 1.7 1.7 1.2 1.1 Capitalisation ratio 19% 17% 17% 18% 16% 14%

*Fixed costs as per internal reporting

© SABMiller 2014

Prospects Cartons remain the backbone of our business

The environment remains highly competitive

Pressures on disposable incomes early in F15 are expected to impact sales

Recent interest rate hikes will have a significant impact on our business

Step change in the business with the introduction of the new Lusaka Brewery and growth in Super

Continued improvement in product mix towards Super and regional growth driving margin growth.


© SABMiller 2014

Dividend declaration

NATIONAL BREWERIES PLC Final Dividend

At a Board Meeting held on Wednesday, 14th May 2014, the Board resolved not to recommend a dividend. Given the significant capital expenditure programs underway and proposed for the next financial year, the Board agreed not to recommend a dividend. This was approved at the AGM on 1 July, 2014.


© SABMiller 2014

Thank you

Questions?


Investor Relations

Zambrew and Natbrew Investor presentation 10 July 2014