Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Interbrew — FY2002 Earnings Presentation
33 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Mar 19, 2003
Slide 1: Results 2002: Continued Strong Organic Growth
Interbrew Results 2002 Continued Strong Organic Growth Presentation to analysts & investors 19 March 2003
Slide 2: Continued Strong Organic Growth
Continued Strong Organic Growth John F. Brock Chief Executive Officer
Slide 3: Key Actions
Key Actions Greater operational focus • Delivery of organic volume growth • Drive integration of acquisitions & capture synergies • Reinvest in the brands Acquisition policy •Further opportunities do exist •Strategic & value creative People
Slide 4: 2002 Financial Highlights
2002 Financial Highlights Year of significant activity EPS in line with targets Continued strong organic growth Volume +2.1% Net turnover +3.3% EBITDA +9.0% Proposed dividend: 0.33 euro per share
Slide 5: Operational Highlights & Issues
Operational Highlights & Issues Highlights • Beck’s in Germany • Stella Artois in UK Issues • Russia • US
Slide 6: Continued Strong Organic Growth
Continued Strong Organic Growth Luc Missorten Chief Financial Officer
Slide 7: Financial Highlights
Financial Highlights Organic 2001 2002 s% Growth EBITDA €1,533m €1,394m (9.1%) +9.0% EBIT €884m €728m (17.6%) +11.5% EPS €1.44 €1.33 (7.6%) N./A. before goodwill EPS €1.44 €1.51 +4.9% N./A. before goodwill (pre-restructuring)
Slide 8: Acquisitions & Divestitures
Acquisitions & Divestitures Financial Impact (€m) Invested Capital EBITDA Comment ACQUISITIONS Beck & Co 1,736 128 Acquired in Feb 02 Diebels 117 12 Full 12 mths in 02 vs 4 mths in 01 Gilde 475 n/a Only balance sheet impact end 02 Heineken UK contract n/a (10) Year-on-year decline DIVESTITURES Carli
Slide 9: Restructuring
Restructuring Recurring restructuring • < 0.5% of net turnover • Normally absorbed through P&L • No separate charge Non-recurring restructuring in 2002 1) Outsourcing of UK distribution Total EBIT charge €108m 2) Western Europe industrial footprint
Slide 10: Breakdown of 2002 Results
Breakdown of 2002 Results Organic Foreign 2001 Scope 2002 Growth Exchange 90.2 +1.9 -5.2 86.9 Volume(1) Hl million +2.1% -5.8% -3.7% Net Turnover 7,303 +244 -454 -101 6,992 € million +3.3% -6.2% -1.4% -4.3% Net Turnover/ Hl Hl € per Hl 81.0 80.5 (1)Fully controlled volumes
Slide 11: Continued Delivery of Underlying Organic Growth
Continued Delivery of Underlying Organic Growth Organic Foreign Restructur- 2001 Scope 2002 2002 Growth Exchange ing 1,533 +138 -159 -26 1,486 -92 1,394 EBITDA € million +9.0% -10.4% -1.7% -3.1% -9.1% 884 +102 -129 -21 836 -108 728 EBIT € million +11.5% -14.6% -2.4% -5.4% -17.6%
Slide 12: Diversified Geographic Reach
Diversified Geographic Reach Total EBITDA Emerging Markets EBITDA € 1,394m € 338m Americas Holding Companies 33% & Global Export 4% Asia Pacific Emerging 44% Eastern Markets Europe 24% 22% Central Europe 34% Western Europe 39%
Slide 13: Breakdown of Growth in Western Europe
Breakdown of Growth in Western Europe(1) Organic Organic 2001 Scope FX 2002 2001 Growth Scope FX 2002 Restr 2002 Growth Hl Million Volume EBITDA € million +51 -167 42.1 +0.8 -6.7 752 -1 36.2 635 -92 543 +1.9% -15.9% -14.0% +6.8% -22.2% -0.1%-15.6% -27.8% Net Turnover +48 -130 € million 4,046 +60 -67
Slide 14: Western Europe - Stella Artois in the UK
Western Europe - Stella Artois in the UK • Structural growth of the premium lager segment and the off-trade • Quality programme: strengthened on-trade presence • Successful launch in Scotland and Northern Ireland Stella Artois volume growth vs UK lager market 2002 Y-o-Y Growth Stella Artois OFF-TRAD
Slide 15: Western Europe - Beck's
Western Europe - Beck’s Germany Beck’s Sales Volume & Gross Margin Index (Total Brand, • Strongest growing brand +7.8% Germany) Volume 8.5% Second • Further margin expansion (Rolling Price Increase 12 mth) 6.7% Price 1-Jul-02 2,000 Increase Strong showing in UK and Italy executed 1,900 1-Jun-00 •UK
Slide 16: Building Critical Mass in Germany
Building Critical Mass in Germany Net Cash (1) Paid 135 1,712 (62) 475 2,260 € million 55 215 2002 164 EBITDA 24 € million 29 (24) 111 20 Beer Diebels Beck's Disposals Gilde Germany EBITDA 6.7x 11.8x 8.6x 10.5x Multiple Soft drink Nienburger Glas (1) Net cash and non-operational real estate (€100m)
Slide 17: Western Europe - Cost Base Initiatives
Western Europe - Cost Base Initiatives UK distribution and Western Europe industrial footprint • One time charge: €108m EBIT • Impact for Interbrew EBIT 2005 onward +€27m Other initiatives •Leaner distribution in Belgium
Slide 18: Breakdown of Growth in Americas
Breakdown of Growth in Americas Organic Organic 2001 Scope FX 2002 2001 Scope FX 2002 Growth Growth +54 +3 -27 Volume(1) 459 Hl Million 429 EBITDA € million 14.6 +0.3 +1.9 16.8 +2.1% +13.0% +15.1% +12.6% +0.7% -6.3% +7.0% Net Turnover € million € million 313 +49 -22 340 EBIT 1,830 +93 +192 -101 2,01
Slide 19: Americas
Americas Canada • Continued strong profit delivery • Strengthened presence in Premium & Speciality segment • OSBC organic volume growth +20% USA USA Import Brand Growth • Import brands + 6.6% Canadian +3.6% Mexican +8.1% • Rolling Rock® + 5.3% European +48.6% • Beck’s® did well in second half of 200
Slide 20: Breakdown of Emerging Markets Growth
Breakdown of Emerging Markets Growth Organic Organic 2001 Growth Scope FX 2002 2001 Growth Scope FX 2002 Hl Million Volume EBITDA -1 -1 +2 € million 338 338 31.3 +0.7 -0.4 31.6 +2.2% -1.3% +1.0% -0.3% -0.3% +0.6% - Net Turnover € million € million 162 -24 EBIT 1,311 +70 -7 +7 1,381 +2 140 +5.3% -0.5
Slide 21: Eastern Europe
Eastern Europe Ukraine • Total market share 32.2% (+0.5%) • 35.4% market share in PET (+7%) • Key brand Chernigivske +54% to 1.8m Hl Russia - initiatives in 2H02 • Management change • PET/cans installed (9.0% share in PET, 7.9% in cans) • Price increase adjusted • Average market share 2H02: 12.5% (1
Slide 22: South Korea
South Korea 9.8% organic EBIT growth based on sound cost control Cass outstanding performance • Volume 3.6m HL • Market share 20.4% OB • Volume 3.3m • Market share 18.6% • Rejuvenation programme to be launched 6% price increase in 2003
Slide 23: Other Regions
Other Regions Central Europe • On balance slightly lower operating performance • Staropramen: multi-country potential China • Focus on coastal region - higher per capita income • Zhujiang acquisition: further expand platform
Slide 24: Balance Sheet and Cashflow
Balance Sheet and Cashflow 2001 2002 Cashflow from Operating Activities €1,053m €1,045m Net Capex €(488)m €(510)m Free Operating Cash Flow €565m €535m Net Financial Debt €2,662m €2,583m Net Financial Debt / EBITDA 1.7x 1.8x Cash Interest Cover 5.4 6.8
Slide 25: Below EBIT
Below EBIT 2001 2002 € million EBIT 884 728 Net financing costs (176) (134) Income from associates 67 71 Income tax expense (179) (162) Minority interests (59) (36) Net profit from ordinary activities 537 467 Dividend 125 142(1) (1) Proposed
Slide 26: Return on Invested Capital
Return on Invested Capital Invested ROIC Basis Points Change (2002 vs 2001) Capital 2002 €m Percent Reported Organic Western Europe 3,208 6.8 (1,370) 640 Americas 1,350 25.2 (60) 240 Emerging Markets 1,671 8.4 (60) (60) Holding Companies 71 n/a n/a n/a & Global Export Total 6,300 11.6 (110) 300 Inve
Slide 27: Conclusion
Conclusion 2002 • Strong organic growth • Growing brands and share, especially H2 • Proposed dividend increase of 13.8% 2003 • Organic volume growth from brand investment funded through cost synergies • More discipline, consistency and transparency • On track to generate organic volume & profit grow
Slide 28: Questions?
SX Interbrew Questions ?
Slide 29: Annexes
SX Interbrew Annexes
Slide 30: Employee Benefits - Full IAS Compliance
Employee Benefits - Full IAS Compliance 2002 2003 est. PROFIT & LOSS Impact (€m) 80 100 Asset mix 59% equities BALANCE SHEET (€m)(1) PV of funded obligations (1,261) Fair value of plan assets 904 PV of net obligations for funded plans (357) PV of unfunded obligations (231) PV of net obligations (588
Slide 31: Foreign Exchange
Foreign Exchange Main currencies • CAD, USD, GBP, RUB, KRW Translation risks • Local currency income & costs - no hedge • Minimise equity and add leverage in local currency Transaction risks • Export exposure: 100% hedged 12 months Impact on 2003 if rates remain stable(1) • Net profit €(25)m (1) Cur
Slide 32: Breakdown of Growth in Western Europe (excluding Bass UK)
EXCLUDING Breakdown of Growth BASS UK in Western Europe Organic Organic 2001 Scope FX 2002 2001 Growth Scope FX 2002 Restr 2002 Growth Hl Million Volume EBITDA € million +179 631 -92 +9.4 +35.1 -1 539 25.0 +0.7 412 +41 +2.8% +37.6% +40.4% +10.0% +43.4% -0.2% +53.2% +30.8% Net Turnover +806 -11 3,345
Slide 33: LEUVEN Iie
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