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MillerCoors Delivers 9.5% Underlying Net Income Growth For 2012

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 release includes “forward-looking statements” within the meaning of the U.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 their respective 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 Twelve Months Ended
(In millions of $US)

Dec 31, 2012

Dec 31, 2011

Dec 31, 2012

Dec 31, 2011

U.S. GAAP : Net Income Attributable to MillerCoors
$ 170.4 $ 194.0 $ 1,190.9 $ 1,003.8

Plus: Special/Exceptional Items 1
15.4 - 31.8 113.4

Tax effect of the adjustments to arrive at underlying net income 2



    (0.4 )

Non-GAAP Underlying Net Income
$ 185.8 $ 194.0 $ 1,222.7 $ 1,116.8

Plus: Adjustments to IFRS Underlying EBITA 3
  11.9     39.6   107.3     140.2  

IFRS : MillerCoors underlying earnings before interest, taxes and amortization before exceptional items (EBITA 4)
$ 197.7 $ 233.6 $ 1,330.0 $ 1,257.0

Percent change versus prior year MillerCoors underlying EBITA 4
-15.4 % 5.8 %

1 Current 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.

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 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.

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

U.S. GAAP        
Three Months Ended Twelve Months Ended

Dec 31, 2012

Dec 31, 2011

Dec 31, 2012

Dec 31, 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 Expenses
(484.4 ) (455.1 ) (1,828.5 ) (1,768.6 )
Special Items, net   (15.4 )   -     (31.8 )   (113.4 )
Operating Income 177.2 196.0 1,211.1 1,020.3

Other Income (Expense), net
  (3.2 )   0.7     0.3     1.2  

Income Before Income Taxes and Non-controlling Interests
174.0 196.7 1,211.4 1,021.5
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 Non-controlling Interests
  (1.9 )   (1.2 )   (15.0 )   (10.2 )

Net Income Attributable to MillerCoors LLC
$ 170.4   $ 194.0   $ 1,190.9   $ 1,003.8  

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