Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Investor Day (2023)
48 slides from Anheuser-Busch InBev SA/NV's investor day presentation, 2023
Slide 1: Michel Doukeris, Chief Executive Officer
MICHEL DOUKERIS C H I E F E X E C U T I V E O F F I C E R
Slide 2: Legal disclaimer
Legal disclaimer Certain statements contained in these materials are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Forward-looking statements are not guarantees of future performance. Rather, they are ba
Slide 3: To a Future With More Cheers
<eABInBev To a Future With More Cheers
Slide 4: Vibrant Category, Large & Growing, Strategy in Action
VIBRANT LARGE & STRATEGY CATEGORY GROWING IN ACTION
Slide 5: Category growth and ABI organic topline growth
VIBRANT LARGE & STRATEGY CATEGORY GROWING IN ACTION Category Largest ABI Organic Topline Growth Market Source: Euromonitor, Internal Reporting Note: Category Growth and ABI topline growth from 2017 – 2022 CAGR, Market Rank based on EBITDA
Slide 6: Key unique advantages, strategy, replicable toolkits
1 • UNIQUE ADVANTAGES Key 2 • STRATEGY 3 • REPLICABLE TOOLKITS
Slide 7: Executive Team
EXECUTIVE TEAM Michel Doukeris CEO 27 Years John Blood Chief LCA Officer 14 Years Nelson Jamel Chief People Officer 21 Years Katie Barrett General Counsel 23 Years Ricardo Tadeu Nick Caton Marcel Ezgi Barcenas Fernando Pete Kraemer David Almeida Chief Growth Chief B2B Officer Marcondes Chief Sustain
Slide 8: Last time we were together…
Last time we were together… INORGANIC → RENEWED LONG-TERM SIMPLIFIED ORGANIC PURPOSE AMBITION STRATEGY
Slide 9: We continue to operate in a dynamic environment
We continue to operate in a dynamic environment COVID-19 GEO-POLITICAL INFLATION SOCIAL CONTEXT
Slide 10: Actively engaging with thousands of consumers
Actively engaging with thousands of consumers, most consumers agree they want 1. 1 Bud Light to concentrate on platforms that all our consumers love – e.g., NFL, Folds of Honor, Music 2. 2 Bud Light to focus on beer 3. 3 Their beer without a debate
Slide 11: Slide 11
Slide 12: Market share has been stable since late April
Market share has been stable since late April ABI Share (%) 36 WE May-23 Jun-23 Jul-23 Aug-23 Sept-23 30-Apr-2023 MTD YoY Share Change (%) (5.20) (5.63) (5.42) (5.36) (5.07) (5.03) Source: Circana data as through week ending 9/3
Slide 13: Execution of our strategy
EXECUTION 3 OPTIMIZE 1 LEAD & GROW OUR BUSINESS THE CATEGORY OF OUR 2 DIGITIZE & MONETIZE OUR ECOSYSTEM
Slide 14: The beer category continues to grow
The beer category continues to grow 2022 Total Beer & Beyond Beer Share of Volume L5Y D SHR Beer + Beyond Beer +2.3pp 53% Beer Only +1.5pp 50% Hard Liquor -1.7pp 34% Wine -0.6pp 13% 2006 2011 2016 2021 Source: Euromonitor - May 2023 Note: Share of throat based on Liters of Beer Equivalent (LBE) conv
Slide 15: Growing volume and delivering incremental revenue since 2019
Growing volume and delivering Since 2019… $5.5bn in incremental Revenue Annual Volumes (MHL) Incremental 594 billion Net Revenue 561 19 20 21 22 LTM - 23 Source: Internal Volume Reporting, KANTAR Note: Volume Growth LTM through June 2023, Net Revenue nominal annualized growth 2019 - 2022
Slide 16: Capturing >$35BN in BEES GMV and $1.3BN in Marketplace GMV
Capturing >$35BN in BEES GMV and As of today… $1.3BN in Marketplace GMV BEES Rolling 12 Month GMV ($Bn) Marketplace billion GMV >$35 $0 19 20 21 22 LTM - 23 Source: Internal Reporting Note: Last Twelve Month as of June 2023
Slide 17: Generating $34BN in FCF and reducing gross debt by $32BN
Generating $34BN in FCF and gross Since 2019… debt reduced by $32BN Net Leverage Ratio and Gross Debt ($Bn) Cumulative 4.6x 4.8x billion Free Cash Flow 4.0x 4.0x 3.5x 112 $80 18 19 20 21 22 Source: Internal Reporting Note: FCF based on nominal cumulative between 2019 – 2022 and defined as Cash flow
Slide 18: What we've delivered
WHAT WE’VE RESILIENT CONSISTENCY ENVIRONMENT AUTHENTICITY
Slide 19: Move Forward
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Slide 20: Category, leadership advantages, replicable growth, superior profitability
LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES GROWTH PROFITABILITY CATEGORY DRIVERS
Slide 21: Large & Growing Category
LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES GROWTH PROFITABILITY CATEGORY DRIVERS
Slide 22: Beer is big and profitable
Beer is big and profitable Profit Pool by CPG Category ($bn) LEADING CATEGORY $102 MARGINS $84 $84 $78 EBITDA Margin $74 $70 29% 23% CPG AVG BEER AVG Beer Snacks Hard Soft Drinks Beauty Dairy Liquor Source: Euromonitor; Visible Alpha Notes: Euromonitor MSP basis; Top Players based on top 40 largest
Slide 23: Projected to continue to grow volume and share of throat
It is projected to continue to grow volume and share of throat Total Beer & Beyond Beer SHARE of THROAT VOLUME PROJECTED ACROSS GROWTH ALL SOURCES (’23-27) +1.0pp 19 20 21 22 23 24 25 26 27 Source: Euromonitor - May 2023, GlobalData, ISWR, Plato Logic Note: Share of throat based on Liters of Beer Eq
Slide 24: Premiumization represents a significant upside for growth
Premiumization represents a significant upside for growth Of Total PREMIUM MIX Category ~3x 2x Hard Liquor Across the Category 32% 23% 16% 11% 8% Emerging Developing Developed Total Total Markets Markets Markets Beer Hard Liquor Source: Euromonitor, Internal Estimates Note: 1. Gross/hl based on ABI
Slide 25: Large & Growing Category
• Big and Profitable LARGE & • Growing and gaining share of throat GROWING CATEGORY • Premiumization Upside
Slide 26: Leadership Advantages
LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES GROWTH PROFITABILITY CATEGORY DRIVERS
Slide 27: Unparalleled ABI Ecosystem
Unparalleled ABI Ecosystem +2B CONSUMERS +20K +500 FARMERS BRANDS BIOTECH DIGITAL TAM INITIATIVES +100K BEER +6M COMMERCE TAM SUPPLIERS CUSTOMERS +200 +5K BREWERIES WHOLESALERS
Slide 28: Geographic footprint giving us unique scale
With a geographic footprint giving us unique scale #1 Market Share Positions Globally Source: Internal Data, Euromonitor Note: China based on ABI’s share of profit
Slide 29: Leading positions in the largest profit and growth pools
...With leading positions in the largest profit and growth pools #1 SHARE LEADING In 7 out of top 10 largest In 7 out of top 10 largest volume beer profit pools growth markets #2 Sources: Plato Logic for profit pool data and Euromonitor for beer volume growth. Note: Beer volume growth figures reflec
Slide 30: Leadership Advantages
• Unparalleled ecosystem and unique scale LEADERSHIP • #1 market share in top profit pools ADVANTAGES • Leading positions in top growth markets
Slide 31: Replicable Growth Drivers
LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES PROFITABILITY GROWTH CATEGORY DRIVERS
Slide 32: Replicable Growth Drivers
REPLICABLE GROWTH DRIVERS THESE ARE… Solve real Can be scaled Drive Codified as a Proprietary Consumer, across our efficient, Product or Toolkits Customer organization organic Process Problems growth
Slide 33: 21 Megabrands over $1 billion in net revenue
21 MEGABRANDS over $1 BILLION in net revenue Sources: ABI company data, Kantar
Slide 34: 12 Megabrands $0.5 billion in net revenue
12 MEGABRANDS $0.5 BILLION in net revenue Sources: ABI company data, Kantar
Slide 35: Industry leading portfolio of megabrands
Industry leading portfolio of megabrands Portfolio in Global Brand Power Out of top 10 most valuable beer brands Cannes Creative Company of the Year Sources: ABI company data, Kantar
Slide 36: Loved by our consumers
Loved by our consumers Number of Brand Lovers (MM) +12MM 342 330 19 20 21 22 Source & Scope: Lover is a metric calculated using Brand Guidance Affinity Top Box (love). Global Affinity is calculated on P4W Beer Incidence on legal drinking age country population
Slide 37: BEES empowers millions of underserved customers
BEES empowers millions of underserved customers Monthly Total LTM Rate BEES as Marketplace Active Users BEES GMV preferred App GMV with +200 Partners Source: Internal Reporting Note: Monthly Active Users as of August 2023, Total LTM BEES GMV as of August 2023, Marketplace GMV annualized as of August
Slide 38: DTC is creating the best beer experience
DTC is creating the best beer experience for our consumers Scaling DTC Megabrands 12 Markets Annual Total DTC NPS Across all 300k Active LTM major Digital Households Consumers Net Revenue DTC brands Source: Internal Reporting Note: Data is based on LTM as of June 2023
Slide 39: Category Expansion Model
Category Expansion Model ACCEPT FORMALIZE SOCIALIZE ROUTINIZE SOPHISTICATE EMERGING DEVELOPING DEVELOPED Beer + Beyond Beer Consumption Beyond Beer Premiumization Occasions Development Core Superiority Category Participation Market Maturity Gray dots indicate positioning of individual markets within
Slide 40: Replicable Growth Drivers
• Megabrands that drive efficient growth REPLICABLE • Digital products that unlock greater value GROWTH DRIVERS • Category Expansion Model
Slide 41: Superior Profitability
LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES GROWTH PROFITABILITY CATEGORY DRIVERS
Slide 42: Best-in-class profitability and cash generation
We deliver best-in-class profitability and cash generation 125% = Free cash flow ($Bn) (1) 120% 115% 110% Free Cash Flow as % of Adj. Net Income 105% 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 16% 18% 20% 22% 24% 26% 28% 30% 32% 34% 36% 38% EBITDA Margin Source: Company financials, Capital
Slide 43: Dynamic capital allocation to drive value creation
Dynamic capital allocation to drive value creation DELEVERAGING INVEST IN ORGANIC GROWTH SELECTIVE RETURN OF M&A CAPITAL Sources: ABI company data
Slide 44: We continue to invest behind organic growth
We continue to invest behind organic growth… Investing over $47BN over the L4Ys Delivering consistent organic growth Cumulative Investment in S&M and CAPEX ($Bn) Annualized Organic Revenue Growth (%) 12.8 8.1% 12.2 11.6 7.3% 10.6 7.3 7.3 6.8 4.7% 6.9 5.4% 7.5% 4.2% 4.9 5.5 4.8 3.7 1.9% 0.5% 0.6% 201
Slide 45: Dynamic capital allocation to drive value creation
Dynamic capital allocation to drive value creation DELEVERAGING $32BN Gross debt reduction INVEST IN ORGANIC GROWTH $47BN Investments SELECTIVE M&A RETURN OF CAPITAL Strategic partnership and Growth in dividend optionality across white spaces 50% ’22 vs. ‘21 Sources: ABI company data Note: Deleverag
Slide 46: Superior Profitability
• Best-in-class profitability SUPERIOR • Unwavering commitment to invest in organic growth PROFITABILITY • Dynamic capital allocation optionality
Slide 47: Individually, these elements are compelling
Individually, these elements are COMPELLING LARGE & LEADERSHIP REPLICABLE SUPERIOR GROWING ADVANTAGES GROWTH PROFITABILITY CATEGORY DRIVERS
Slide 48: Shareholder Value Creation
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