Slide 1: Trends in Beer Consumption and InBev's Approach
Trends in Beer Consumption and InBev’s Approach Steve Cahillane, Chief Commercial Officer 1 Copyright © 2005 InBev – All rights reserved
Slide 2: 140 Markets: Leader in 20 major markets, geared to growth
140 Markets Leader in 20 major markets Geared to growth 2 Copyright © 2005 InBev – All rights reserved
Slide 3: Beer – Absolute per Capita Consumption
Beer – Absolute per Capita Consumption CONSISTENT Netherlands China Russia Germany Ukraine UK Belgium Romania Paraguay USA Canada DECLINE GROWTH Serbia Venezuela Czech Hungary Bolivia South Korea Argentina Brazil INCONSISTENT 3 Copyright © 2005 InBev – All rights reserved
Slide 4: World – Share of Throat
World – Share of Throat CONSISTENT Pk. Water Coffee Tea Sports Drinks Beer Iced/Rtd Tea Wine Milk_ Spirits Fruit Powders Juices_ Squash/Syrups DECLINE GROWTH Carbonates Still Drinks INCONSISTENT 4 Copyright © 2005 InBev – All rights reserved
Slide 5: China – Share of Throat
China – Share of Throat CONSISTENT Tea Iced/Rtd Tea Milk_ Juices_ Pk. Water Coffee Spirits Carbonates Beer Still Drinks DECLINE GROWTH INCONSISTENT 5 Copyright © 2005 InBev – All rights reserved
Slide 6: Russia – Share of Throat
Russia – Share of Throat CONSISTENT Tea Beer Pk. Water Milk_ FAB Coffee Juices_ Carbonates DECLINE GROWTH Wine Spirits INCONSISTENT 6 Copyright © 2005 InBev – All rights reserved
Slide 7: Diversified Geographic Reach
Diversified Geographic Reach InBev is in 7 of the 10 highest contributing 2005 markets… 2020 50% 100% 45% 44% 90% 40% 80% 35% 70% 30% 60% 25% 50% 20% 40% 16% 15% 30% 10% 9% 20% 5% 4% 4% 5% 3% 3% 3% 3% 10% 0% 0% China Russia Mexico Thailand Poland USA Brazil Spain Vietnam Ukraine % of the Growth Cumu
Slide 8: Geared to Growth: 3Q05 % of EBITDA
Geared to Growth 3Q05: % of EBITDA Latin America Western Europe 39% 25% North America 17% Holding Cies & Central & Eastern Global Export Europe 0% 12% Asia Pacific 7% 8 Copyright © 2005 InBev – All rights reserved
Slide 9: InBev Strategy: Strategic Pillars and Enablers
InBev Strategy Strategic Pillars and Enablers Winning at the Targeted Winning Brand World Class Point of Mergers & Portfolio Efficiency Connection Acquisitions Innovation People / Culture Financial Discipline 9 Copyright © 2005 InBev – All rights reserved
Slide 10: InBev Strategy: Strategic Pillars and Enablers
Strategic Pillars and Enablers Winning Winning at the Targeted World Class Brand Point of Mergers & Efficiency InBev Strategy Portfolio Connection Acquisitions Innovation People / Culture Financial Discipline Optimal brand portfolio by country Develop sustainable core domestic brands Drive global pr
Slide 11: InBev Strategy: Strategic Pillars and Enablers
Strategic Pillars and Enablers Winning Winning at the Targeted World Class Brand Point of Mergers & Efficiency InBev Strategy Portfolio Connection Acquisitions Innovation People / Culture Financial Discipline Cost-discipline rollout • Ownership culture • Zero-Based Budgeting (ZBB) • Plant Optimizati
Slide 12: Commitment to value creation built on margin expansion and EBITDA growth
Commitment to value creation built on margin expansion and EBITDA growth New operating model Reduce Grow cost base volumes 4 1 Increase 2 marketing Effective 3 and sales portfolio investments management 12 Copyright © 2005 InBev – All rights reserved
Slide 13: Progress Report – YTD Performance
Progress Report – YTD Performance Operating Targets YTD 05 • Organic volume + 4 to 5% +5.6% • Price/mix + 1% +1.7% • EBITDA margin expansion +2.6% EBITDA margin of 27.7% vs 25.1% YTD 04 • EBITDA organic growth +17.0% 13 Copyright © 2005 InBev – All rights reserved
Slide 14: Premium Growth
Premium Growth Volume Progress in 3Q05: Beck’s +10.2% Brahma +14.6% Stella Artois + 8.4% Total InBev + 6.0% 14 Copyright © 2005 InBev – All rights reserved
Slide 15: Copyright © 2005 InBev – All rights reserved
15 Copyright © 2005 InBev – All rights reserved