Anheuser-Busch InBev SA/NV · EURONEXT:ABI

Anheuser-Busch InBev SA/NV — Q3 2013 Earnings Presentation

26 slides from Anheuser-Busch InBev SA/NV's earnings presentation, Oct 31, 2013

  1. Slide 1: Third Quarter 2013 Results

    Third Quarter 2013 Results 31 October 2013 © AB InBev 2013 – All rights reserved

  2. Slide 2: Forward looking statements

    Forward looking statements Certain statements contained in this report that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of the

  3. Slide 3: Highlights

    Highlights • Solid revenue per hl growth of 4.2% • Good performance by Global Brands, particularly Budweiser • Synergy delivery at Modelo ahead of schedule • Strong EBITDA margin expansion in all top markets • Normalized profit growth of 20% • Interim dividend of 0.60 EUR per share © AB InBev 2013 –

  4. Slide 4: 3Q13 financial summary

    3Q13 financial summary • Revenue +3.0% • Revenue per hl +4.2% (+4.9% - constant geographic basis)  US +3.2%  Mexico +6.1%  Brazil +6.0%  China +7.8% • Total volumes -1.3% and own beer volumes -1.4%  Global Brands +5.0% and Focus Brands +0.3% • EBITDA +10.5%  Cost synergies of $210M captured in

  5. Slide 5: Strong Global Brands volume growth of 5.0%

    Strong Global Brands volume growth of 5.0% © AB InBev 2013 – All rights reserved 4

  6. Slide 6: US – 3Q13 highlights

    US – 3Q13 highlights Industry  STRs (Selling Day Adjusted) -1.0% AB InBev  STRs (Selling Day Adjusted) -2.7%  Shipments -1.9%  Market share decline of approximately 80 bps  Impacted by timing of price increase  Share loss October YTD ~45 bps  Sub-premium brands share loss ~35 bps  Revenue pe

  7. Slide 7: Positive industry volume trends continue

    Positive industry volume trends continue US Industry STRs – 2013 vs. 2012 FY12 Jan Feb Mar Apr May Jun/July Aug Sep/Oct 2.0% 1.0% 0.80% 0.0% -0.3% -1.0% -0.5% -0.7% -1.0% -2.0% -2.1% -3.0% -2.8% -3.2% -4.0% -4.1% 3Q13: -1.0% -5.0% 9M13: -2.2% Note: June and July monthly figures have been combined to

  8. Slide 8: Bud Light Family

    Bud Light Family • Family market share down 25 bps in 3Q13 • Strong growth of Straw-Ber-Rita and Lime-A-Rita, which achieved a combined share of 0.8% in 3Q13, offset by pressure on Bud Light volumes • Cran-Brrr-Rita to be launched in November Note: Share based on internal estimates (STRs) © AB InBev

  9. Slide 9: Budweiser performance continues to improve

    Budweiser performance continues to improve • Budweiser Black Crown partly offsetting a share decline in the Budweiser brand • Made in America festival and MLB activations are building consumer connections Note: Share based on internal estimates (STRs) © AB InBev 2013 – All rights reserved 8

  10. Slide 10: Michelob Ultra & High End brands continue to gain share

    Michelob Ultra & High End brands continue to gain share • Michelob Ultra now a Top 10 brand in the US • Stella Artois is growing high single digits, while maintaining a sophisticated image • Shock Top continuing to grow, with untapped distribution opportunities • Goose Island strong volume growth No

  11. Slide 11: Two major packaging innovations in the quarter

    Two major packaging innovations in the quarter 25 Ounce Can Re-sealable National Rollout aluminum bottle (16 ounce) “More volume, same price” “Convenience“ © AB InBev 2013 – All rights reserved 10

  12. Slide 12: Brazil Beer – 3Q13 highlights

    Brazil Beer – 3Q13 highlights Industry • Beer volumes -4.3% AB InBev • Beer volumes -5.0%  Commercial strategies working  Pack price initiatives (1L and 300mL RGB) • Share down only 10 bps sequentially, to 68.0% • Beer revenue per hl +6.0% Note: Share based on internal estimates © AB InBev 2013 –

  13. Slide 13: Beer industry is challenging, but we remain confident about future growth potential

    Beer industry is challenging, but we remain confident about the future growth potential Food Inflation Easing Growth opportunities Month on Month Inflation • Government stimulation 2.0% 2.0% • Favorable demographics 1.5% 1.5% 1.4% 1.3% 0.8% 1.0% 1.1% 1.0% • Per capita consumption 0.9% 1.0% 0.9% • Pr

  14. Slide 14: Mexico – 3Q13 highlights

    Mexico – 3Q13 highlights Industry • Remains under pressure due to weak economic growth & severe September weather AB InBev • Volume: -2.3% • Good revenue per hl growth of 6.1% • EBITDA growth of 70% driven by:  Revenue per hl growth  Cost synergies ahead of schedule • EBITDA margin expansion of mo

  15. Slide 15: Cost synergies being delivered ahead of schedule

    Cost synergies being delivered ahead of schedule $1 billion to be captured by 2016 $1 billion 1,000 800 Cumulative 600 $250 million USD Millions since closing 400 325 210 200 75 40 0 Prior to closing 2Q13 3Q13 YTD13 Commitment Figures include synergies reported in both the Mexico Zone and Global Exp

  16. Slide 16: China – 3Q13 highlights

    China – 3Q13 highlights • Industry +3.4% • Beer volume +8.3% • Focus Brands +13.4%, driven by Harbin, Harbin Ice and Budweiser “Voice of China” campaign • Estimated market share gain of 75bps (1) • Revenue per hl +7.8% driven by brand mix, especially Budweiser and Harbin Ice “Voice of China” – Harbi

  17. Slide 17: Canada – 3Q13 highlights

    Canada – 3Q13 highlights • Own beer volumes -2.2% • Our Focus Brands +1.5%  Bud Light family growth of 6.6% driven by our innovations, including Bud Light Lime Mojito, Lime-A-Rita and Platinum • Stable market share on a sequential basis • Balancing of volume and profitability Note: Share based on i

  18. Slide 18: Latin America South – 3Q13 highlights

    Latin America South – 3Q13 highlights • Total volumes -0.3%  Beer volumes -2.0%  Non-beer +2.2% • Argentina beer volumes +0.5%  Macro conditions still challenging • Market share gains • EBITDA +20.5% with margin expansion of +198 bps Note: Share based on internal estimates. © AB InBev 2013 – All

  19. Slide 19: Western Europe – 3Q13 highlights

    Western Europe – 3Q13 highlights • Own beer volumes +0.1%, helped by good weather • Belgium +0.4% with good summer performance of Focus Brands • Germany -3.5% due to weak industry and share loss driven by Belgian national football team promotion price increase • UK own volumes +4.2%, excellent summe

  20. Slide 20: Central & Eastern Europe – 3Q13 highlights

    Central & Eastern Europe – 3Q13 highlights • Total volumes -18.9% • Russia -13.4%  Weak industry  Continued focus on premiumization of the portfolio  Bud is now the 5th largest premium brand • Ukraine -26.2%  Destocking in September • EBITDA -38.2% due to weak volume performance Bud football cam

  21. Slide 21: 3Q13 below EBIT Result

    3Q13 below EBIT Result  Net finance costs (excluding non-recurring net finance costs) were 562 million USD in 3Q13 compared with 680 million USD in 3Q12  Non-recurring net finance results were 170 million USD in 3Q13 from mark-to-market adjustments on derivative instruments related to the combinat

  22. Slide 22: Normalized Effective Tax Rate (ETR)

    Normalized Effective Tax Rate (ETR) 25% Range of 21.3% 19-21% 20% 18.1% 15% 13.3% 10% 6.3% 5% 0% 1Q13 2Q13 3Q13 9M13 FY13 Guidance  Normalized ETR in 3Q13 was 21.3%, compared with 17.2% in 3Q12 • Increase mainly results from a change in country mix, including the mix impact resulting from the combi

  23. Slide 23: EPS growth of 17.2% in 3Q13

    EPS growth of 17.2% in 3Q13 0.08 0.33 0.09 (0.14) (0.10) 1.36 USD per share 1.16 (0.06) EPS 3Q12 Scope and Modelo Modelo 2012 EBIT Net finance Taxes and EPS 3Q13 currency 2013 results from costs others EBIT associates 1) Related to our share-based payment program. © AB InBev 2013 – All rights reserv

  24. Slide 24: 2013 Interim Dividend of 0.60 EUR

    2013 Interim Dividend of 0.60 EUR, payable from 18 November 2013 Capital Allocation Objectives Fiscal Year Dividend • Investment in €1.80 €1.70 organic growth of €1.60 the business €1.40 • Selective M&A, strict €1.20 €1.20 financial discipline €1.00 • Dividend yield €0.80 comparable with other €0.80

  25. Slide 25: Global Be(er) Responsible Day

    Global Be(er) Responsible Day • Fourth Year – 21 September 2013  More than 35,000 employees Helping train bar staff in responsible  Promoting the use of designated drivers, service in Western Europe checking IDs, parents talking with children • AB InBev’s first ever online Well-Being & Responsibil

  26. Slide 26: Q&A

    Q&A © AB InBev 2013 – All rights reserved

Anheuser-Busch InBev — Q3 2013 Earnings Presentation on 6ix