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Anheuser-busch Inbev Sa/nv — Q2 2012 Earnings Presentation

31 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Jul 31, 2012

  1. Slide 1: Second Quarter 2012 Results

    Second Quarter 2012 Results 31 July 2012 © AB InBev 2012 – All rights reserved

  2. Slide 2: Forward looking statements

    Forward looking statements There are statements in this document, such as statements that include the words or phrases “outlook”, “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “project”, “may” or similar expressions that are “forward looking statements”. The

  3. Slide 3: Summary

    Summary • Revenue +4.7% in 2Q12, revenue per hl +6.4% in 2Q12 on a constant geographic basis • Focus Brands +1.0% and Global Brands +2.0% in 2Q12 • EBITDA growth +2.5% in 2Q12 and + 4.9% in HY12  Decrease in US shipments linked to shipping pattern adjustments  Increase in distribution expenses in

  4. Slide 4: Global Brands performance +2.0% in 2Q12

    Global Brands performance +2.0% in 2Q12 © AB InBev 2012 – All rights reserved 3

  5. Slide 5: US results – 2Q12

    US results – 2Q12 • Industry +0.4% in 2Q12, + 0.8% in HY12  Strongest performance since 2008  July off to a good start • AB InBev  STRs (Selling Day Adjusted) -0.2%  Marginal share decline of 30 bps in 2Q12 and 25 bps in HY12  Drivers of volume and share: • Bud Light family • Michelob Ultra, St

  6. Slide 6: Innovations positive for Bud Light family

    Innovations positive for Bud Light family +3.5% STR growth in 2Q12 +60 bps share growth © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 5

  7. Slide 7: Bud Light Platinum

    Bud Light Platinum • 1.1% share (1) • More than 1 million barrels sold • 2 new packs coming (22 oz. bottle and 18 pack of 12 oz. bottles) • Less than 50% of volume sourcing from AB brands  Significant proportion coming from hard liquor  5% coming from outside the alcohol category © AB InBev 2012 –

  8. Slide 8: Bud Light Lime – Lime-A-Rita

    Bud Light Lime – Lime-A-Rita • #2 new beer brand behind Bud Light Platinum based on case & dollar sales (1) • Over 2 million cases sold • ~20% price premium (1) © AB InBev 2012 – All rights reserved (1) Source: IRI Syndicated data, FDMxC, Year to Date ended June 30, 2012 7

  9. Slide 9: Budweiser – Red, White and Blue Campaign

    Budweiser – Red, White and Blue Campaign © AB InBev 2012 – All rights reserved 8

  10. Slide 10: Michelob Ultra +7.3%

    Michelob Ultra +7.3% +13 bps of share © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 9

  11. Slide 11: High end growth of 19% led by Stella Artois

    High end growth of 19% led by Stella Artois Stella Artois +18% volume +9bps share © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 10

  12. Slide 12: Shock Top – Scalable Craft

    Shock Top – Scalable Craft +70% growth © AB InBev 2012 – All rights reserved Note: US Volume growth figures are based on estimated STRs 11

  13. Slide 13: Beer Brazil results – 2Q12

    Beer Brazil results – 2Q12 • Industry  Growing at +3.1% • AB InBev  Beer volumes +2.8%  Share -20 bps  Revenue / hl growth of +7.2% (1)  Focus brands +2.0%  Growth in north/northeast © AB InBev 2012 – All rights reserved (1) Revenue / hl figure applies to Beer Brazil 12

  14. Slide 14: Significant regional growth opportunities remain

    Significant regional growth opportunities remain Beer per capita consumption by region (liters/year) • GDP growth in the north and 30.5 51.7 northeast continues to exceed North Northeast the rest of the country 82.4 66.3 • Per capita and market share growth Middle West Southeast opportunities 76.6 c

  15. Slide 15: CSD Brazil results – 2Q12

    CSD Brazil results – 2Q12 • AB InBev  CSD volumes +6.9%  Share flat at 17.8%  Guaraná Antarctica volume and market share growth  Innovation: H2OH! Frutas launch (grape flavor) © AB InBev 2012 – All rights reserved 14

  16. Slide 16: Brazil – route to market innovation

    Brazil – route to market innovation Pit Stop • Reinforcing Returnable Glass Bottle (RGB) presentations in the supermarkets • Improving the shopping experience • ~500 stores in 2011 © AB InBev 2012 – All rights reserved 15

  17. Slide 17: Brazil – Premium performance

    Brazil – Premium performance • 2 domestic & 2 global premium brands • Budweiser expanding distribution Successful Daily premium international Sophistication Self-discovery Key image brand attributes Knowledge/ Coolness Status Authenticity Creativity Price Index 130 – 140 135 – 145 170 – 180 190 – 20

  18. Slide 18: China results – 2Q12

    China results – 2Q12 • Beer Volume +7.6% • Focus Brands +14.7% • Market share growth of 40 bps YTD May (1) • Revenue/hl +11.2% driven by brand mix, as we continue to grow premium volumes (2) • Successful Budweiser and Harbin initiatives (1) Internal estimate © AB InBev 2012 – All rights reserved (2)

  19. Slide 19: Budweiser Porsche Carrera Cup

    Budweiser Porsche Carrera Cup • Partnership with Porsche • Builds on Budweiser’s premium brand positioning • Growing popularity of motor racing in China • TV, radio, print, social media and events © AB InBev 2012 – All rights reserved 18

  20. Slide 20: Harbin NBA sponsorship reinforces our positioning among young adult men

    Harbin NBA sponsorship reinforces our positioning among young adult men © AB InBev 2012 – All rights reserved 19

  21. Slide 21: Geographic expansion through Greenfields and M&A is a key enabler for growth

    Geographic expansion through Greenfields and M&A is a key enabler for growth 2012     Xinxiang (Province Henan)   • 2.5 Mio hl capacity   • Opened in June 2012        Existing Wholly-Owned Plant    Core Market   Expansion Market  Greenfield Projects M&A Zhangzhou (Province Fuji

  22. Slide 22: Canada highlights

    Canada highlights • HY12 Beer volumes +1.6% • Strong performance by Bud Light • Market share remains around 41% (1) © AB InBev 2012 – All rights reserved (1) Internal estimates 21

  23. Slide 23: Latin America South – 2Q12 highlights

    Latin America South – 2Q12 highlights • Total volumes -0.9%  Beer -1.7%  Non-beer +0.3% • Argentina beer volumes -2.4% with market share gains • Continued growth of % organic growth 2Q12 HY12 Stella Artois Beer volumes -0.9% 1.5% • Launch of Quilmes 1890 Revenue 15.0% 20.0% Revenue/hl 16.1% 18.3%

  24. Slide 24: Western Europe – 2Q12 highlights

    Western Europe – 2Q12 highlights • Own beer volumes -6.7%, impacted by bad weather • Belgium  Tough weather comparable  Share recovery in June • Germany  Share gains for Beck’s % organic growth 2Q12 HY12 and Hasseröder in HY12 Own beer volumes -6.7% -4.9% Revenue -4.7% -5.5% • UK Revenue/hl 2.6%

  25. Slide 25: Central & Eastern Europe – 2Q12 highlights

    Central & Eastern Europe – 2Q12 highlights • Total volumes -11.2% • Russia -10.2%  Industry weakness and share loss due to price increases • Ukraine -12.6%  Soft industry % organic growth 2Q12 HY12  Launch of Bud in April Beer volumes -11.2% -10.6% Revenue 2.9% 2.9% • Continued focus on brand por

  26. Slide 26: Below EBIT results – 2Q12

    Below EBIT results – 2Q12 Net finance costs decrease of 252 million USD • Lower net debt levels and lower coupon • Non-cash accretion expense representing the IFRS accounting treatment for the put option associated with investment in CND  30 million USD per quarter, with approximately 20 million US

  27. Slide 27: Normalized EPS grew by 22% to $1.22 in 2Q12

    Normalized EPS grew by 22% to $1.22 in 2Q12 1.20 1.00 0.14 0.18 0.80 (0.12) 0.02 USD per share 0.60 1.22 1.00 0.40 0.20 0.00 EPS 2Q11 Scope and EBIT Net finance cost Taxes and EPS 2Q12 currency others © AB InBev 2012 – All rights reserved 26

  28. Slide 28: Grupo Modelo update

    Grupo Modelo update • Compelling combination • Mexican market • Expansion of Corona, outside of the US • Best practice sharing • Subject to regulatory approval • Expected to close 1Q13 • Financing on favorable terms © AB InBev 2012 – All rights reserved 27

  29. Slide 29: US Bond issue update

    US Bond issue update • On 10 July 2012, AB InBev issued $7.5 billion in USD bonds  3-yr: $1.5bn at 0.80% coupon  5-yr: $2.0bn at 1.375% coupon  10-yr: $3.0bn at 2.50% coupon  30-yr: $1.0bn at 3.75% coupon • Weighted average pre-tax cost is 2.08%, comparable to Modelo bank facilities, but with a

  30. Slide 30: In summary

    In summary • Challenging quarter for EBITDA growth • Confident about the momentum in the US, Brazil and China • We expect a stronger second half of the year, when compared with HY12 © AB InBev 2012 – All rights reserved 29

  31. Slide 31: © AB InBev 2012 – All rights reserved

    © AB InBev 2012 – All rights reserved

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