Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — H1 F2013 Earnings Presentation
43 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Nov 27, 2012
Slide 1: F'13 First half results
SABMiller plc F’13 First half results Six months ended 30 September 2012 Jamie Wilson, Chief Financial Officer Gary Leibowitz, Sr. VP Investor Relations 27 November 2012
Slide 2: Forward looking statements
Forward looking statements This presentation includes ‘forward-looking statements’ with respect to certain of SABMiller plc’s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend
Slide 3: Strong revenue growth continues
OVERVIEW Indicative Strong revenue growth continues WAMP US Mozambique 160 Proven approach to brand and beer market 150 139 development continues to deliver 121 120 Group revenue (US$ bn) and Group revenue per hl growth (%)* 112 17.5 100 100 +3% 15.7 100 100 14.2 +3% 85 85 13.4 +3% +3% 80 76 2009 20
Slide 4: Emerging market fundamentals remain strong
OVERVIEW Emerging market fundamentals remain strong Despite cyclical growth moderation Contribution to world GDP 56% 54% 52% 50% 48% 46% 44% 2010 2011 2012 2013 2014 2015 2016 2017 Source: IMF Developed Economies Emerging Economies © SABMiller plc 2012 4
Slide 5: SABMiller's model of leading local flagship brands, innovation and premium assortment is working
OVERVIEW SABMiller’s model of leading local flagship brands, innovation and expanding premium assortment is working Innovation accounts for Innovation up and Strengthening core 17% of Africa growth* down the price ladder mainstream brands 17% WAMP 15% 450 300 13% 135 120 80 RB 750 75 MAT Mar 2010 MA
Slide 6: Latin America
Latin America Further alcohol share gains SABMiller LAE share gain (bps) - MAT 540 Packaging innovation driving affordability 110 70 Brand mix and productivity driving Colombia Peru Ecuador* margins *based on June data Aguila pack range Economic headwinds: reduced exports in certain sectors
Slide 7: Latin America
Latin America Further alcohol share gains Latam EBITA margin progression (H1) 140bps Packaging innovation driving 80bps affordability 210bps Brand mix and productivity driving F10 H1 F11 ∆ F12 ∆ F13 ∆ F13 H1 margins Colombia: GDP growth Economic headwinds: 6% 5% reduced exports in certain se
Slide 8: Europe
Europe Heightened support behind flagship brands Structural changes in beer industry Re-based businesses competing effectively in “new norm” Innovation contributing to growth Efes positive to financials © SABMiller plc 2012 8
Slide 9: Europe
Europe Heightened support behind flagship brands Structural changes in beer industry Re-based businesses competing effectively in “new norm” Innovation contributing to growth Efes positive to financials © SABMiller plc 2012 9
Slide 10: North America
North America Group revenue/hl (H1) Revenue management, mix and cost 125 130 122 efficiencies driving margins and funding 115 119 marketing 106 Consistent strength of Coors Light, focus F08 F09 H1 F10 H1 F11 H1 F12 H1 F13 H1 on Miller Lite MillerCoors group revenue/hl vs. LY Tenth & Blake outp
Slide 11: North America
North America Revenue management, mix and cost Leinenkugel’s volume efficiencies driving margins and funding + 32% YTD* marketing Consistent strength of Coors Light, focus on Miller Lite * Trading day adjusted Tenth & Blake outpacing growth in crafts Launch in Strong pipeline in above premiu
Slide 12: Africa
Africa Robust volumes despite East Africa Africa cold availability headwinds 50% 40% 30% Significant strides in S&D 20% penetration and in-trade execution 10% 0% F10 F11 F12 Premium and affordable segment growth Operating leverage and Angola synergies boosting margins © SABMiller plc 2012 12
Slide 13: Africa
Africa Robust volumes despite East Africa Castle Lite MAT volume, 000s hls, 2012 450 headwinds 300 Significant strides in S&D penetration and in-trade execution 150 Oct Dec Feb Apr Jun Aug Premium and affordable segment growth Impala monthly volume, 000 hls, 2012 Operating leverage and Angol
Slide 14: Asia Pacific
Asia Pacific China share increase led by Snow – Industry slowing, competitive intensity rising – Inputs and wages constraining margins India: accelerated growth, broadened portfolios – Growth strategies differentiated by state, driving EBITA and margins – Continued regulatory headwinds © SABMill
Slide 15: Australia
Australia Continuation of long term beer and alcohol industry trends Consumer confidence levels remain weak Volume decline mitigated by improved revenue management SABMiller actions becoming visible – Brand portfolio repositioning – Retailer relationships – Beer focused sales force Integra
Slide 16: South Africa
South Africa Premium led revenue growth Strength of Castle and Castle Lite SAB share of premium beer 65% Marketing and sales leadership 60% 55% Affordability and retail service 50% 45% extension drive in soft drinks 40% 35% Supply side savings driving margins F09 F10 F11 F12 F13 YTD SAB Br
Slide 17: South Africa
South Africa Premium led revenue growth SA subsidiaries EBITA margin progression (H1) 70bps Strength of Castle and Castle Lite 0bps 50bps Marketing and sales leadership Affordability and retail service F10 H1 F11 ∆ F12 ∆ F13 ∆ F13 H1 extension drive in soft drinks Soft drinks growth potentia
Slide 18: Leveraging our skills and global scale
Leveraging our skills and global scale Global Talent Model tracking top 200 critical roles and high potential ‘future leaders’ 32 moves of executive talent across regions made since 1st April 2012 Contribution of Talent for T200 by nationality* Latam 21% 21% Europe (excl. UK) UK 3% 2% North Amer
Slide 19: Financial Review
Financial Review Jamie Wilson, Chief Financial Officer
Slide 20: Continued strong growth in EPS and dividends
Continued strong growth in EPS and dividends Adjusted EPS 32% Interim Dividend 24.0 US cents per share - up 12% 17% 14% US$ Sterling Rand © SABMiller plc 2012 20
Slide 21: Strong revenue and earnings growth
Strong revenue and earnings growth Sept 12 Reported Organic Total Volumes 8.7% 4.4% Lager Volumes 6.9% 3.9% Organic, constant Reported currency Group revenue 11.4% 7.6% EBITA 17.5% 9.4% EBITA margin 100 bps 30 bps All figures include our share of associates and joint ventures © SABMiller plc 2012 21
Slide 22: Organic, constant currency group revenue per hl performance
Organic, constant currency group revenue per hl performance Group revenue per hl performance by division, YoY % 6 months to 30 September 2012 SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (2%) 0% 2% 4% 6% Figures include our share of associates and joint ventur
Slide 23: Input costs in line with expectations
Input costs in line with expectations Half year constant currency increase per hl – Total raw materials Up mid-single digits – Total COGS Continued rise in barley and malt prices Higher fuel prices drive up distribution costs Global procurement programme benefits ahead of plan, mitigating co
Slide 24: Organic, constant currency EBITA margin
Organic, constant currency EBITA margin 6 months to 30 September 2012, YoY basis points change SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (200) (50) 0 50 100 150 Year-on-year reported EBITA margin grew by 100bps © SABMiller plc 2012 24
Slide 25: Business capability programme progress
Business capability programme progress Net operating benefits developing as expected, driven by procurement – Significant progress in indirect categories – Raw and packaging materials continue to deliver benefits ERP implementations – Global Template design and build complete and being tested in
Slide 26: Cash flow, finance costs and taxation
Cash flow, finance costs and taxation US$m Sept 12 Sept 11 Adjusted EBITDA* 3,255 2,913 Working Capital (outflow) / inflow (incl provisions) (219) 71 Capex ** 655 760 Free Cash Flow *** 1,684 1,479 Adjusted net finance costs 391 229 Adjusted EBITDA* margin 22.9% 21.9% Effective tax rate 27.5% 28.5%
Slide 27: Net debt
Net debt US$m Sept 12 March 12 Non-current borrowings (16,499) (18,164) Current borrowings (2,122) (1,063) Cash and cash equivalents 780 745 Borrowings-related derivative financial instruments 729 620 Net debt (17,112) (17,862) Gearing (%) 65.0 68.6 Net debt/Adjusted EBITDA* 2.6 2.9 Weighted average
Slide 28: Financial outlook – current financial year
Financial outlook – current financial year Fundamental potential of our emerging markets remains strong – Moderation of economic growth in some markets Positive impact from acquisitions and business combinations will reduce Selective pricing where market conditions permit with input cost press
Slide 29: Conclusion
Conclusion Strong revenue and EBITA growth continues – Our proven approach to brand and beer market development continues to deliver – Pricing, mix and cost efficiencies contributing Emerging market fundamentals remain strong Our model of leading local flagship brands, innovation and expanding
Slide 30: Q&A
Slide 31: Supplementary information
Supplementary information
Slide 32: EBITA growth
EBITA growth EBITA (including associates and joint ventures) components of performance, US$m 17.0% 9.4% (6.0)% 3.4% 3,173 2,636 2,726 Sept '11* Underlying Currency Sept '12 Organic Acquisitions Sept '12 Performance Reported Reported * Adjusted for disposals © SABMiller plc 2012 32
Slide 33: Group revenue growth
Group revenue growth Group Revenue (including associates and joint ventures) components of performance, US$m 16.2% 4.4% 3.2% (6.2%) 1.4% 17,476 14,856 15,065 Sept '11* Volume Price/mix Currency Sept '12 Acquisitions Sept '12 Organic Reported Reported * Adjusted for disposals © SABMiller plc 2012 33
Slide 34: Net debt: currency and maturity profile
Net debt: currency and maturity profile Currency profile * Maturity profile ** 4% 8% 6% 19% 31% 5% 3% 60% 9% 55% US dollar Euro < 1 year 1-2 years Rand Colombian peso Aus dollar Other 2-5 years > 5 years * Including the impact of cross currency swaps ** Cash and cash equivalents netted against curre
Slide 35: Reported EBITA contribution
Reported EBITA contribution* September 2012 September 2011 2% 2% 13% 16% 28% 29% 5% 15% 12% 11% 16% 20% 16% 15% Latin America Europe North America Africa Asia Pacific South Africa: Beverages South Africa: Hotels & Gaming * Before corporate costs © SABMiller plc 2012 35
Slide 36: Financial results
Financial results Sept Sept US$m 12 11 Change % Reported Group revenue 17,476 15,688 11 EBITA 3,173 2,701 17 EBITA margin (%) 18.2 17.2 100 bps Sales volumes (hl’000) Total 162,799 149,775 9 Lager 132,446 123,917 7 Soft drinks 26,614 22,609 18 Other alcoholic beverages 3,739 3,249 15 © SABMiller plc
Slide 37: Group Revenue by division
Group Revenue by division Sept Sept US$m 12* 11** Change % Organic, constant currency Latin America 3,655 3,396 8 Europe 2,812 2,650 6 North America 2,896 2,830 2 Africa 1,866 1,655 13 Asia Pacific 1,565 1,409 11 South Africa: Beverages 2,929 2,669 10 South Africa: Hotels and Gaming 266 247 8 * Resu
Slide 38: EBITA by division
EBITA by division Sept Sept US$m 12* 11** Change % Organic, constant currency Latin America 910 797 14 Europe 494 520 (5) North America 481 451 6 Africa 372 313 19 Asia Pacific 153 138 10 South Africa: Beverages 492 446 11 South Africa: Hotels and Gaming 75 67 12 * Results for the half year ended 30
Slide 39: EBITA margin performance
EBITA margin performance Organic, constant currency basis Sept 12 Sept 11* 24.9% 23.5% 19.6% 19.9% 18.9% 17.6% 18.0% 17.7% 16.6% 16.0% 16.8% 16.7% 9.8% 9.8% Latin America Europe North America Africa Asia Pacific SA: Beverages Group * Adjusted for disposals © SABMiller plc 2012 39
Slide 40: Reported EBITA margin performance
Reported EBITA margin performance Sept 12 Sept 11 24.9% 23.5% 19.8% 17.4% 16.5% 17.8% 16.8% 16.7% 18.2% 17.2% 15.7% 16.0% 16.7% 9.6% Latin America Europe North America Africa Asia Pacific SA: Beverages Group © SABMiller plc 2012 40
Slide 41: Reported volumes
Reported volumes* Reported Domestic Lager volumes by country, hl ‘000 Sept Sept 12 Change % 12 Change % South Africa 12,444 1 Romania 3,562 25 Colombia 9,524 3 India 2,846 23 Poland 8,719 10 Australia 3,550 n/a Peru 6,098 5 Italy 2,117 1 Czech Republic 3,918 2 Tanzania 1,438 (8) Ecuador 2,733 4 Chin
Slide 42: Exchange rates
Exchange rates Closing rates currency vs US$ 30 Sept 31 Mar 30 Sept 30 Sept 31 Mar 30 Sept 12 12 11 12 12 11 Australia 0.96 0.97 1.03 Mozambique 27.98 27.42 26.82 China 6.29 6.29 6.38 Peru 2.60 2.67 2.77 Colombia 1,801 1,792 1,915 Poland 3.20 3.13 3.30 Czech Republic 19.32 18.52 18.33 Romania 3.53 3
Slide 43: Balance sheet
Balance sheet Sept March US$m 12 12* Goodwill and intangible assets 29,978 30,255 Property, plant and equipment 9,087 9,162 Investment in joint ventures and associates 10,805 10,592 Other non-current assets 1,224 1,115 Current assets excluding cash 3,694 4,087 Cash and cash equivalents 780 745 Net a