MillerCoors Delivers 9.5% Underlying Net Income Growth for 2012

  MillerCoors Delivers 9.5% Underlying Net Income Growth for 2012

Favorable Mix and Strong Pricing Drove Positive Full Year Results, Despite Q4
                                Profit Decline

Business Wire

LONDON & DENVER -- February 14, 2013

SABMiller plc (LN:SAB; OTC:SABMRY) and Molson Coors Brewing Company (NYSE:
TAP; TSX: TPX) reported that MillerCoors underlying net income grew 9.5
percent for the full year 2012 to $1.223 billion, while fourth quarter
underlying net income decreased 4.2 percent to $185.8 million versus the same
quarter in the prior year. Positive pricing and favorable sales mix drove
strong profitability for the year, while increased marketing investment
reduced fourth quarter earnings.

“We delivered strong profit growth in 2012 while making significant marketing
investments in the fourth quarter behind our brands,” said MillerCoors Chief
Executive Officer Tom Long. “Our portfolio transformation strategy is
delivering solid results. Coors Light, which is undoubtedly the healthiest
major beer brand in the market, continued to show momentum and we led Craft
share growth as Tenth and Blake delivered very strong results with Blue Moon
and Leinenkugel’s.”

Fourth Quarter and Full Year 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. Quarterly sales-to-retailers (STRs) results are presented on a
trading-day-adjusted basis, as the fourth quarter of 2012 had one more trading
day compared with the same quarter in the prior year.

  *Underlying net income (a non-GAAP measure) increased 9.5 percent to $1.223
    billion for the year and decreased 4.2 percent to $185.8 million for the
    fourth quarter.
  *Total net sales increased 2.8 percent to $7.761 billion for the year and
    1.7 percent to $1.784 billion for the quarter.
  *Domestic net revenue per barrel, excluding contract brewing and
    company-owned distributor sales, increased 3.5 percent for the year and
    2.9 percent for the quarter.
  *Total cost of goods sold (COGS) per barrel increased 1.4 percent for the
    year and 1.6 percent for the quarter.
  *Domestic STRs decreased 1.3 percent for the year and 1.1 percent for the
    quarter.
  *Domestic sales-to-wholesalers (STWs) decreased 1.1 percent for the year
    and 1.3 percent for the quarter.

Brand Highlights for the Fourth Quarter and Full Year

Coors Light continued its momentum growing low-single digits for the quarter,
outpacing the total category and the Premium Light segment which lost share in
a flat industry. The brand enjoyed its eighth consecutive year of volume
growth and MillerCoors will enter 2013 with a continued focus on multicultural
outreach for Coors Light, including sponsorship of The Mexican Soccer League,
Liga MX and the return of “Search for the Coldest” in partnership with Ice
Cube. Building on the success of its packaging innovations, MillerCoors will
launch the new Coors Light “World’s Most Refreshing Can” in the second quarter
of 2013. Miller Lite declined mid-single digits for the quarter and low-single
digits for the full year. We will continue to invest in the “It’s Miller Time”
campaign and will launch a new iconic bottle for the on-premise in mid-2013,
following the positive volume impact of the Miller Lite punch top can in 2012.
Miller64 STRs were down low-single digits in the quarter and high-single
digits for the full year. Volume trends on the brand have improved
significantly since it’s re-positioning in the first quarter of 2012.
MillerCoors Premium Light STRs declined low-single digits in the fourth
quarter and for the full year.

Tenth and Blake Beer Company grew the MillerCoors Craft and Import portfolio
by double digits in the quarter and the full year, driven by Blue Moon Brewing
Company and Jacob Leinenkugel Brewing Company. Due primarily to the superior
performance of Summer Shandy, Leinenkugel’s grew double digits for the year
and other offerings, such as Snowdrift Vanilla Porter were drivers of
Leinenkugel’s double-digit growth for the quarter. Blue Moon grew double
digits for the year and high-single digits for the quarter. Peroni Nastro
Azzurro once again delivered strong results, growing mid-single digits in the
quarter and high-single digits for the year.

The MillerCoors Economy portfolio showed improvement for the fourth quarter
over the prior two quarters in 2012, declining mid-single digits for the year
and low-single digits for the quarter. Miller High Life continued its veterans
program and will kick off a partnership with Harley Davidson in mid-2013.
Keystone Light continued to drive its “Always Smooth” positioning primarily
through digital engagement and localized marketing efforts. The brand will
launch new packaging in early 2013.

The Premium Regular portfolio showed its best performance since 2008, down
low-single digits for the quarter and down mid-single digits for the year.
Miller Genuine Draft’s double digit decline was partly offset by continued
growth of Coors Banquet, the only national Premium Regular brand in the
industry to gain market share in the quarter, versus prior year. Coors Banquet
grew high-single digits for the quarter and mid-single digits for the year,
delivering its sixth straight year of volume growth.

Financial Highlights for the Fourth Quarter and Full Year

Domestic net revenue per barrel grew 3.5 percent for the year and 2.9 percent
for the quarter as a result of strong net pricing and favorable mix.

Total company net revenue per barrel, including contract brewing and
company-owned distributor sales, increased 3.3 percent for the full year and
2.9 percent for the quarter. Third-party contract brewing volumes were up 5.2
percent for the year and down 0.4 percent for the quarter.

Total COGS per barrel increased 1.6 percent for the quarter, driven by
commodity inflation and packaging innovation, partially offset by strong cost
savings.

Marketing, general and administrative costs increased 3.4 percent for the year
and 6.4 percent for the quarter, driven primarily by increased marketing media
investments in support of our premium light portfolio.

In the fourth quarter, $25 million of cost savings were achieved, primarily
related to procurement savings and brewery efficiencies.

Depreciation and amortization expenses for MillerCoors in the fourth quarter
were $70.3 million, and additions to tangible and intangible assets totaled
$178.5 million.

A $15.4 million write-off of Information Systems assets related to the
Business Transformation project 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 MillerCoors.com,
at facebook.com/MillerCoors 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: www.sabmiller.com.

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:
www.molsoncoors.com.

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 www.sabmiller.com. 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           Twelve Months Ended
(In millions of $US)    Dec 31,        Dec 31,      Dec 31,      Dec 31,
                        2012            2011         2012          2011
                                                                   
U.S. GAAP: Net
Income Attributable     $  170.4        $  194.0     $ 1,190.9     $ 1,003.8
to MillerCoors
Plus:
Special/Exceptional        15.4            -           31.8          113.4
Items^1
                                                                             
Tax effect of the
adjustments to          -                -         -             (0.4    )
arrive at underlying
net income^2
                                                                   
Non-GAAP Underlying     $  185.8        $  194.0     $ 1,222.7     $ 1,116.8
Net Income
Plus: Adjustments to
IFRS Underlying           11.9          39.6       107.3       140.2   
EBITA^3
                                                                   
IFRS: MillerCoors
underlying earnings
before interest,
taxes and               $  197.7        $  233.6     $ 1,330.0     $ 1,257.0
amortization before
exceptional items
(EBITA^4)
                                                                   
Percent change
versus prior year          -15.4  %                    5.8     %
MillerCoors
underlying EBITA^4
                                                               
^1Current year Special/Exceptional items include a pension curtailment gain
and the write-off of assets related to the Home Draft package as well as
information systems assets. 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 and integration charges related to the MillerCoors
Joint Venture.
                                                               
^2The 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.
                                                               
^3U.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 disposals,
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.
                                                               
^4EBITA - Earnings Before Interest, Taxes, and Amortization, excluding
exceptional items.
                                                               

MILLERCOORS LLC
RESULTS OF OPERATIONS
(VOLUMES IN THOUSANDS, DOLLARS IN MILLIONS $US)
(UNAUDITED)
U.S. GAAP                                                    
                     Three Months Ended            Twelve Months Ended
                     Dec 31,        Dec 31,        Dec 31,        Dec 31,
                     2012           2011           2012           2011
                                                                  
Volume in Barrels     14,823       15,000       65,020       65,321   
                                                                  
Sales                $ 2,058.0      $ 2,029.7      $ 8,966.6      $ 8,763.3
Excise Taxes          (274.2   )    (275.8   )    (1,205.5 )    (1,213.1 )
Net Sales              1,783.8        1,753.9        7,761.1        7,550.2
Cost of Goods Sold    (1,106.8 )    (1,102.8 )    (4,689.7 )    (4,647.9 )
Gross Profit           677.0          651.1          3,071.4        2,902.3
Marketing, General
and Administrative     (484.4   )     (455.1   )     (1,828.5 )     (1,768.6 )
Expenses
Special Items, net    (15.4    )    -            (31.8    )    (113.4   )
Operating Income       177.2          196.0          1,211.1        1,020.3
Other Income          (3.2     )    0.7          0.3          1.2      
(Expense), net
Income Before
Income Taxes and       174.0          196.7          1,211.4        1,021.5
Non-controlling
Interests
Income Taxes          (1.7     )    (1.5     )    (5.5     )    (7.5     )
Net Income             172.3          195.2          1,205.9        1,014.0
Net Income
Attributable to       (1.9     )    (1.2     )    (15.0    )    (10.2    )
Non-controlling
Interests
Net Income
Attributable to      $ 170.4       $ 194.0       $ 1,190.9     $ 1,003.8  
MillerCoors LLC
                                                                             

Contact:

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