MillerCoors Delivers Profit Growth in Third Quarter

  MillerCoors Delivers Profit Growth in Third Quarter

Strong Pricing, Favorable Brand Mix and Cost Management Drive Positive Results

Business Wire

LONDON & DENVER -- November 07, 2012

SABMiller plc (LN:SAB; OTC:SABMRY) and Molson Coors Brewing Company (NYSE:
TAP; TSX: TPX) reported that MillerCoors third quarter underlying net income
increased 13.5 percent to $325.6 million versus prior year driven by positive
pricing, favorable brand mix and continued strong cost management. Coors Light
continued to grow volume and market share, and Tenth and Blake Beer Company
continued to grow ahead of the overall craft segment.

“This quarter we delivered significant profit growth and improved our
year-to-date share trend,” said MillerCoors Chief Executive Officer Tom Long.
“Strong investment, clear positioning and packaging innovation for Coors Light
have helped drive nearly eight consecutive years of growth for our largest
brand. Tenth and Blake demonstrated the power of its portfolio, marked by the
continued growth of Blue Moon Belgian White and Leinenkugel’s Summer Shandy.
We have a pipeline of innovation to drive our largest brands, and we’re
launching exciting above premium products nationally in early 2013. Strong
cost management remains a priority, and we are committed to our net revenue
strategy and focus on positive brand mix to drive value.”

Third Quarter Highlights

Unless otherwise indicated, all amounts are in U.S. dollars and calculated in
accordance with U.S. GAAP. All percentages are versus the prior-year
comparable period and include MillerCoors operations in the U.S. and Puerto
Rico. All sales-to-retail (STRs) results are presented on a
trading-day-adjusted basis, as the third quarter of 2012 had one fewer trading
day compared with the same quarter in the prior year.

  *Underlying net income (a non-GAAP measure) increased 13.5 percent to
    $325.6 million.
  *Total net sales increased 1.5 percent to $1.994 billion.
  *Domestic net revenue per barrel, excluding contract brewing and
    company-owned distributor sales, increased 3.6 percent.
  *Total cost of goods sold (COGS) per barrel increased 0.5 percent.

MillerCoors domestic STRs declined 2.4 percent. Domestic sales-to-wholesalers
(STWs) decreased 2.6 percent.

Brand Highlights for the Third Quarter

MillerCoors Premium Light STRs declined low-single digits in the third quarter
versus prior year. Coors Light continued its momentum growing low-single
digits for the quarter and outpacing the total premium light segment. The
brand will benefit from increased fourth quarter marketing investment and
visibility in national advertising. Miller Lite declined mid-single digits,
representing a slight decline in performance versus the first half of the
year. Sales of 12- and 16- ounce Miller Lite punch-top cans increased
low-single digits, marking the first time that the Miller Lite can business
has been positive since the formation of MillerCoors. Miller Lite will also
invest heavily to seed the “It’s Miller Time” campaign for the remainder of
the year, specifically around fall football programming. Miller64 STRs were
down mid-single digits in the quarter and volume trends have improved
significantly and sequentially since its re-positioning in the first quarter
of 2012.

Tenth and Blake grew the MillerCoors Craft and Import portfolio by double
digits in the quarter and outperformed the overall craft segment. This growth
was driven primarily by Leinenkugel’s Summer Shandy and Blue Moon Belgian
White. In the quarter, Leinenkugel’s Summer Shandy nearly doubled in volume
versus the prior year. Blue Moon grew low double digits, attributable to
marketing support around the Blue Moon lunar event in August 2012. Peroni
Nastro Azzurro once again delivered strong results in the quarter, growing
high-single digits.

The Economy portfolio declined mid-single digits as the company narrowed the
price gaps between economy and premium beer. Miller High Life continued to
build brand awareness with its “Welcome Veterans Back to the High Life”
program. Keystone Light continued to drive its “Always Smooth” positioning
primarily through digital engagement and localized marketing efforts.

The Premium Regular portfolio was down high-single digits with a double-digit
decline by Miller Genuine Draft partly offset by continued growth of Coors
Banquet, which was up low-single digits.

Financial Highlights for the Third Quarter

Domestic net revenue per barrel grew 3.6 percent as a result of strong net
pricing and an acceleration of favorable brand mix, driven by Tenth and Blake
growth and the Economy portfolio decline.

Total company net revenue per barrel, including contract brewing and
company-owned distributor sales, increased 3.0 percent. Third-party contract
brewing volumes were up 8.7 percent.

Total COGS per barrel increased 0.5 percent driven by packaging innovation and
commodity inflation, largely offset by strong cost savings.

Marketing, general and administrative costs increased 0.4 percent driven by
increased marketing investments, partially offset by timing of general and
administrative expenses.

In the third quarter, $29 million of cost savings were achieved, primarily
related to procurement savings and brewery efficiencies.

Depreciation and amortization expenses for MillerCoors in the third quarter
were $71.0 million, and additions to tangible and intangible assets totaled
$58.2 million.

An $18.7 million write-off of assets related to the Home Draft package was
recorded as a special item in the quarter.

Overview of MillerCoors

Built on a foundation of great beer brands and nearly 300 years of brewing
heritage, MillerCoors continues the commitment of its founders to brew the
highest quality beers. MillerCoors is the second-largest beer company in the
United States, capturing nearly 30 percent of beer sales in the U.S. and
Puerto Rico. Led by two of the best-selling beers in the industry, MillerCoors
has a broad portfolio of brands across every major industry segment. The
portfolio is led by the company’s premium light brands: Coors Light, Miller
Lite and Miller64. Coors Light, the World’s Most Refreshing Beer, offers
consumers refreshment as cold as the Rockies. Miller Lite established the
American light beer category in 1975, offering beer drinkers a light beer that
tastes like beer should. Miller64 is 64 calories of crisp, light taste that
complements a balanced lifestyle. MillerCoors brews premium beers Coors
Banquet and Miller Genuine Draft, and economy brands Miller High Life and
Keystone Light. Tenth and Blake Beer Company, MillerCoors craft and import
division, imports Peroni Nastro Azzurro, Pilsner Urquell and Grolsch and
features craft brews from the Jacob Leinenkugel Brewing Company, Blue Moon
Brewing Company and the Blitz-Weinhard Brewing Company. MillerCoors operates
eight major breweries in the U.S., as well as the Leinenkugel’s craft brewery
in Chippewa Falls, Wisc., and two microbreweries, the Tenth Street Brewery in
Milwaukee and the Blue Moon Brewing Company at Coors Field in Denver.
MillerCoors vision is to create the best beer company in America through great
people changing the way America enjoys beer. MillerCoors builds its brands the
right way through brewing quality, responsible marketing and sustainable
environmental and community impact. MillerCoors is a joint venture of
SABMiller plc and Molson Coors Brewing Company. Learn more at,
at or on Twitter through @MillerCoors.

Overview of SABMiller

SABMiller plc is one of the world’s leading brewers with more than 200 beer
brands and some 70,000 employees in over 75 countries. The group’s portfolio
includes global brands such as Pilsner Urquell, Peroni Nastro Azzurro, Miller
Genuine Draft and Grolsch; as well as leading local brands such as Aguila
(Colombia), Castle (South Africa), Miller Lite (USA), Snow (China), Victoria
Bitter (Australia) and Tyskie (Poland). SABMiller also has growing soft drinks
businesses and is one of the world’s largest bottlers of Coca-Cola products.

In the year ended 31 March 2012, the group reported EBITA of US$5,634 million
and group revenue of US$31,388 million. SABMiller plc is listed on the London
and Johannesburg stock exchanges. For more information on SABMiller plc, visit
the company's website:

Overview of Molson Coors

Molson Coors Brewing Company is one of the world’s largest brewers. It brews,
markets and sells a portfolio of leading premium quality brands such as Coors
Light, Molson Canadian, Molson Dry, Staropramen, Carling, Coors Banquet and
Keystone Light in North America, Europe and Asia. For more information on
Molson Coors Brewing Company, visit the company’s web site:

Forward-Looking Statements

This press releaseincludes “forward-looking statements” within the meaning of
theU.S. federal securities laws, and language indicating trends, such
as“anticipated”and “expected.” It also includes financial information, of
which, as of the date of this press release, the Companies’ independent
auditors have not completed their audit. Although the Companies believe that
the assumptions upon which their respective financial information and
theirrespective forward-looking statements are based are reasonable, they can
give no assurance that these assumptions will prove to be correct. Important
factors that could cause actual results to differ materially from the
Companies’ projections and expectations are disclosed in Molson Coors’ filings
with the Securities and Exchange Commission or in SABMiller’s annual report
and accounts for the year ended March 31, 2012, and in other documents which
are available on SABMiller’s website at These factors
include, among others, changes in consumer preferences and product trends;
price discounting by major competitors;failure to realize anticipated results
from synergy initiatives;and increases in costs generally. All
forward-looking statements in this press release are expressly qualified by
such cautionary statements and by reference to the underlying assumptions.
Neither SABMiller nor Molson Coors undertakes to update forward-looking
statements relating to their respective businesses, whether as a result of new
information, future events or otherwise. You should not place undue reliance
on any forward-looking statement. Neither SABMiller nor Molson Coors accepts
any responsibility for any financial information contained in this press
release relating to the business or operations or results or financial
condition of the other or their respective groups.

MillerCoors Results and Related Reconciliations

The table below reconciles net income attributable to MillerCoors, reported in
accordance with U.S. GAAP as used for inclusion within Molson Coors reported
results, to MillerCoors EBITA as used for inclusion within SABMiller’s
reported results in accordance with IFRS. Underlying net income and EBITA are
non-GAAP measures. Management of both companies believes that underlying net
income and EBITA provide shareholders with a useful basis for assessing the
profit performance of MillerCoors. There are limitations to using non-GAAP
financial measures, including the difficulty associated with comparing
companies that use similarly named non-GAAP measures whose calculations may
differ from the company’s calculations.

                            Three Months Ended     Nine Months Ended
(In millions of $US)         Sept 30,   Sept 30,    Sept 30,     Sept 30,
                             2012        2011        2012          2011
U.S. GAAP: Net Income
Attributable to              $ 306.9     $ 176.4     $ 1,020.5     $ 809.8
Plus: Special/Exceptional      18.7        110.9       16.4          113.4
Tax effect of the
adjustments to arrive at      -         (0.4  )    -           (0.4    )
underlying net income^2
Non-GAAP Underlying Net      $ 325.6     $ 286.9     $ 1,036.9     $ 922.8
Plus: Adjustments to IFRS     15.8      29.1      95.4        100.6   
Underlying EBITA^3
IFRS: MillerCoors
underlying earnings before
interest, taxes and          $ 341.4     $ 316.0     $ 1,132.3     $ 1,023.4
amortization before
exceptional items
Percent change versus
prior year MillerCoors         8.0   %                 10.6    %
underlying EBITA^4

^1 Current year Special/Exceptional items include a pension curtailment gain
and the write-off of assets related to the Home Draft package. Prior year
includes a write-down in the value of the Sparks brand, a charge related to
the planned assumption of a multi-employer pension plan for our workers and
integration charges related to the MillerCoors Joint Venture.

^2 The tax effect of the adjustments to arrive at underlying net income
attributable to MillerCoors, a non-GAAP measure, is calculated based on the
estimated tax rate applicable to the item(s) being adjusted in the period in
which they arose.

^3 U.S. GAAP Underlying net income to IFRS EBITA adjustments relate to
differing treatment of step-up depreciation, pension, post-retirement
benefits, consolidation of container joint ventures, asset disposal,
share-based compensation, severance expenses and certain Special Items between
U.S. GAAP and IFRS. Amortization of intangible assets, interest, taxes and
non-controlling interest have been removed to arrive at underlying EBITA.

^4 EBITA - Earnings Before Interest, Taxes, and Amortization, excluding
exceptional items.

U.S. GAAP                                                    
                     Three Months Ended            Nine Months Ended
                     Sept 30,       Sept 30,       Sept 30,       Sept 30,
                     2012           2011           2012           2011
Volume in Barrels     16,915       17,167       50,197       50,321   
Sales                $ 2,306.8      $ 2,285.2      $ 6,908.6      $ 6,733.6
Excise Taxes          (313.3   )    (320.3   )    (931.3   )    (937.3   )
Net Sales              1,993.5        1,964.9        5,977.3        5,796.3
Cost of Goods Sold    (1,201.1 )    (1,213.3 )    (3,582.9 )    (3,545.1 )
Gross Profit           792.4          751.6          2,394.4        2,251.2
Marketing, General
and Administrative     (463.2   )     (461.5   )     (1,344.1 )     (1,313.5 )
Special Items, net    (18.7    )    (110.9   )    (16.4    )    (113.4   )
Operating Income       310.5          179.2          1,033.9        824.3
Other Income          1.1          2.4          3.5          0.5      
(Expense), net
Income Before
Income Taxes and       311.6          181.6          1,037.4        824.8
Income Taxes          (1.3     )    (1.6     )    (3.8     )    (6.0     )
Net Income             310.3          180.0          1,033.6        818.8
Net Income
Attributable to       (3.4     )    (3.6     )    (13.1    )    (9.0     )
Net Income
Attributable to      $ 306.9       $ 176.4       $ 1,020.5     $ 809.8    
MillerCoors LLC


Media Relations:
Richard Farnsworth, Mob: +44 207 659 0188
Investor Relations:
Gary Leibowitz, Mob: +44 771 742 8540
Tel: +44 20 7659 0100 / 414 931 2000
Molson Coors
Media Relations:
Colin Wheeler, 303-927-2443
Investor Relations:
Dave Dunnewald, 303-927-2334
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