Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — SABMiller — FY2015 Earnings Presentation
37 slides from Anheuser-Busch InBev SA/NV's earnings presentation, 2015
Slide 1: Results presentation for the year ended March 31, 2015
SABMiller plc Results presentation for the year ended March 31, 2015 Presented by Domenic De Lorenzo, Acting Chief Financial Officer Gary Leibowitz, SVP Internal and Investor Engagement
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: Clear results from our key strategic choices
Clear results from our key strategic choices Drive superior topline growth through 5% NPR growth¹ 1 strengthening our brand portfolios and 8% NPR growth in premium brands¹˒² expanding the beer category Innovation success across all regions 30 bps EBITA margin growth¹ 2 Liberate and improve resource,
Slide 4: Latin America
Latin America Affordability and premiumisation driving performance • Strong NPR growth through selective pricing, improved mix and soft drinks volume growth • Increased focus on affordability • Category expansion driven by light variants, innovation and non-alcoholic beverages • Variable and fixed c
Slide 5: Africa
Africa Strong topline performance from multi-beverage portfolio • NPR growth from volume and mix gains • Strong soft drinks performance • Excellent South African volume and NPR growth • Strong Mozambique and Nigeria volumes • Further capacity delivered and projects continuing • Integration has ident
Slide 6: Asia Pacific - Australia
Asia Pacific - Australia Driving premiumisation and market position • Consumer sentiment weighing on overall economy • Market share increase, progress with key accounts • Growth from focused brand positioning • Return to price & revenue growth in the second half • Annualised cost saving target deliv
Slide 7: Asia Pacific – China & India
Asia Pacific – China & India Driving premiumisation and market position China • Volume recovery after poor peak season • Continuing premiumisation of Snow brand family • Piloting of global brands India • Constrained by regulatory activity; bifurcation of a key state, Andhra Pradesh © SABMiller 2015
Slide 8: Europe
Europe Business stabilised in the year • Increased focus on effective sales execution • Marked improvement in Czech Republic & Slovakia • Effective romancing of core brands • Stepped up innovation and premiumisation • Better cost productivity funding topline investment • Improved results from Anadol
Slide 9: North America
North America Shifting the mix through above premium innovation • Stemming the trend for Miller Lite • Successful, sustained, large scale innovation in above premium • Flavour innovation and improved marketing in economy portfolio © SABMiller 2015 9
Slide 10: Soft drinks
Soft drinks Strong volume growth • African growth through price moderation and strong retail execution • Pack innovations drive growth in Latin America • Continued momentum in Coca Cola Icecek in Europe © SABMiller 2015 10
Slide 11: Financial Review
Financial Review Domenic De Lorenzo Acting Chief Financial Officer
Slide 12: Positive momentum in underlying performance
Positive momentum in underlying performance 5.8% 6.0% 4.9% 4.6% 1.5% Volumes Group NPR EBITA Adjusted EPS Organic, constant currency* Constant currency © SABMiller 2015 12 *for Adjusted EPS, constant currency excluding the impact of the Tsogo Sun disposal only
Slide 13: Reported currency impacted by FX across a number of markets
Reported currency impacted by FX across a number of markets 7.6% 5.8% 6.0% 4.6% 4.9% 1.9% 1.5% Volumes Group NPR EBITA Adjusted EPS Dividends (1.4)% (1.2)% (1.6)% Reported Organic, constant currency* Constant currency © SABMiller 2015 13 *for Adjusted EPS, constant currency excluding the impact of t
Slide 14: Group NPR growth of 5% driven by Africa and Latin America
Group NPR growth of 5%* driven by Africa and Latin America Organic, constant currency growth +5% Year ended 31 March 2015 (US$ millions) volume +1%, price/ mix +3% 18 (6) 30 105 3% 27,653 (4%) 1% (2%) 690 3% 1% Group NPR (2%) 5% 4% 380 Volume growth Price / mix 3% 3% 26,436 March 2014 Latin Africa A
Slide 15: Driving growth and absolute profits: EBITA growth and margin expansion
Driving growth and absolute profits: group EBITA growth of 6%* and margin expansion of 30 bps* Year ended 31 March 2015 (US$ millions) 2,224 1,907 Reported EBITA 858 768 700 Latin America Africa Asia Pacific Europe North America Reported EBITA 38.6% 25.6% 19.9% 15.9% 18.3% margin EBITA growth* 8% 6%
Slide 16: Input costs benefiting from savings through global procurement
Input costs benefiting from savings delivered through our global procurement organisation • Full year constant currency increase per hl: – Total raw materials1 in line with prior2 – Total COGS1 up low single digits2 • Transactional FX headwinds especially in the second half of the year • Global proc
Slide 17: Continued focus on driving cost efficiencies in order to invest behind growth
Continued focus on driving cost efficiencies in order to invest behind growth • Investing in global initiatives to enhance scale and skills – Cost and efficiency programme delivered US$221 million of cost savings in the first year – Exceptional costs of US$691 million in the year, down from US$133 m
Slide 18: Strong free cash flow generation, up US$670 million to US$3,233 million
Strong free cash flow generation, up US$670 million to US$3,233 million US$m (reported) March 15 March 14 Group EBITDA 7,762 7,884* Adjusted EBITDA1 6,677 6,656* Working capital inflow, incl. provisions 132 93 Capex2 (1,572) (1,485) Free cash flow1,3 3,233 2,563 • Tsogo Sun proceeds US$971 million e
Slide 19: Healthy balance sheet
Healthy balance sheet US$m March 15 March 14 Net debt (10,465) (14,303) Gearing (%) 43.0 52.0 Net debt / Adjusted EBITDA1 1.6 2.1* Weighted average interest rate for gross debt portfolio (%) 3.5 3.9 • Net debt down US$3,838 million; US$1,278 million reduction from maintaining a proportion of debt in
Slide 20: Strong cash flow enabling investment in growth and higher dividends
Strong cash flow enabling investment in growth and higher dividends • Focus on driving superior organic growth – Incremental investment to support strategic priorities and ambition • Value adding M&A will be considered – financial disciplined approach – Active participation in industry consolidation
Slide 21: Financial outlook – current financial year
Financial outlook –current financial year • Confidence in our strategy to deliver sustainable underlying growth for shareholders • Trading environment is expected to remain challenging – we anticipate ongoing key currency depreciation against the US dollar • Input costs per hl expected to rise: – To
Slide 22: Well-placed to drive superior sustainable long-term growth
Well-placed to drive superior sustainable long-term growth • Broad exposure to growth markets, strong portfolio with beers and beverages, capabilities to drive growth • Focused strategy of developing the beer category and premiumisation • Increasing exposure to growing soft drinks • Leveraging our s
Slide 23: Q&A
Q&A
Slide 24: Supplementary information
Supplementary information © SABMiller 2014
Slide 25: Financial performance summary: Reported and organic
Financial performance summary: Reported and organic March 2015 Reported Organic Total volumes 1.9% 1.5% Lager volumes 0.4% (0.2)% Soft drink volumes 7.6% 7.7% Organic, Reported constant currency* Group net producer revenue (NPR) (1.6)% 4.6% Group NPR per hl (3.4)% 3.1% EBITA (1.4)% 5.8% EBITA margin
Slide 26: Reported results reflect the impact of the strengthening US dollar and the disposal of TsogoSun
Reported results reflect the impact of the strengthening US dollar and the disposal of TsogoSun Group Adjusted March 2015, year on year growth NPR EBITA EPS % % % Reported growth rate (1.6) (1.4) (1.2) Impact of currency translation 5.3 5.7 6.1 Reported, constant currency growth rate 3.7 4.3 4.9 Imp
Slide 27: Reported financial performance summary
Reported financial performance summary1 March 2015 2013 20142 2015 Lager volumes (hl’m) 242 245 246 Total volumes (hl’m) 306 318 324 Group net producer revenue (NPR) 26,932 26,719 26,288 Group EBITA 6,379 6,460 6,367 Group EBITA margin 23.7% 24.2% 24.2% Group EBITDA 7,741 7,884 7,762 Group EBITDA ma
Slide 28: Organic, constant currency growth by region
Organic, constant currency growth by region Organic, constant currency Latin Asia North Africa Europe Group growth % America Pacific America Group NPR 7 9 1 2 - 5 Group NPR / hl 3 4 3 1 3 3 Total beverage volume 3 5 (2) 1 (2) 1 Lager volume 1 4 (2) - (2) - EBITA 8 6 (4) 6 7 6 EBITA margin (bps chang
Slide 29: Regional tabular disclosure on a group basis
Regional tabular disclosure on a group basis Latin North Retained Hotels & 2015 (US$'m) Africa Asia Pacific Europe Corporate Group America America Operations Gaming Group revenue 7,812 9,074 5,339 5,861 5,344 - 33,430 128 33,558 Excise and similar taxes (2,044) (1,612) (1,472) (1,463) (662) - (7,253
Slide 30: Regional tabular disclosure on a subsidiary basis
Regional tabular disclosure on a subsidiary basis Subs + Other Total Latin Asia North Hotels & Share of Total 2015 (US$'m) Africa Europe Corporate Subs. Share of Assocs./ Assocs./ America Pacific America Gaming MC JV Group MC JV JVs JVs Group revenue 7,812 6,853 3,136 4,186 143 - - 22.130 5,201 27,3
Slide 31: Group NPR (including associates and joint ventures)
Group NPR (including associates and joint ventures) Components of performance Year ended 31 March 2015 Organic, constant currency growth (US$ million) +5% +3% 27,653 52 832 1,417 +1% 26,719 385 283 26,436 26,288 March 2014 Disposals March 2014 Volume Price & March 2015 Acquisitions Currency March 20
Slide 32: EBITA (including associates and joint ventures)
EBITA (including associates and joint ventures) Components of performance months to 30 September 2014 Year ended 31 March 2015 Organic, constant currency growth (US$ million) +6% 6,738 1 368 372 6,460 90 6,370 6,367 March 2014 Disposals March 2014 Underlying March 2015 Acquisitions Currency March 20
Slide 33: Reported volumes
Reported volumes* Reported domestic lager volumes by country, hl ’000 March March % Change % Change 15 15 China ** 58,595 (1) Czech Republic 6,767 5 South Africa 27,901 2 Ecuador 5,924 2 Colombia 20,183 - Romania 5,576 (2) Poland 13,506 2 India 5,190 1 Peru 13,271 2 Italy 3,343 (1) Australia 7,070 (
Slide 34: Exchange rates
Exchange rates Year ended 31 March 2015 Appreciation/ Appreciation/ Average rate Closing rate (depreciation) (depreciation) 2015 2014 % 2015 2014 % Australian dollar (AUD) 1.15 1.07 (6) 1.31 1.08 (18) South African rand (ZAR) 11.08 10.13 (9) 12.13 10.53 (13) Colombian peso (COP) 2,097 1,920 (8) 2,57
Slide 35: Adjusted EPS and dividends: reported growth vs. prior year
Adjusted EPS and dividends: reported growth vs. prior year 8% 8% EPS EPS EPS Dividend per (US dollar) (Sterling) (South African share rand) (US dollar) (1%) (3%) © SABMiller 2015 35
Slide 36: Reported EBITA contribution
Reported EBITA contribution* March 2015 March 2014 13% 12% 35% 11% 34% 11% 12% 13% 29% 30% Latin America Africa Asia Pacific Europe North America * Retained operations before corporate costs and South Africa: Hotels and Gaming © SABMiller 2015 36
Slide 37: Net debt as at March 2015: currency and maturity profile
Net debt as at 31 March 2015: currency and maturity profile Currency profile Maturity profile * 15% 6% 21% 14% 43% 51% 4% 7% 9% 30% US dollar Euro < 1 year 1-2 years South African rand Colombian peso 2-5 years > 5 years Australian dollar Other * Cash and cash equivalents netted against current borro