Slide 1: Full Year 2011 Results
Full Year 2011 Results 8 March 2012 © AB InBev 2012 – All rights reserved
Slide 2: Forward looking statements
Forward looking statements There are statements in this document, such as statements that include the words or phrases “outlook”, “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “project”, “may” or similar expressions that are “forward looking statements”. The
Slide 3: Another year of solid performance
Another year of solid performance Focus Brands +0.8% and Global Brands +3.3% Revenue +4.6%, revenue per hl +5.8% on a constant geographic basis EBITDA growth +10.7% nominal and +7.7% organic EBITDA margin expansion +113 bp organic to 39.3% EPS +27.4% to $4.04 Cash Flow from Operating Act
Slide 4: Consecutive quarters of EBITDA margin expansion
13 consecutive quarters of EBITDA margin expansion Almost 1000 bps of EBITDA Margin Expansion since 4Q08 1000 50.0% 900 45.0% 800 40.0% Margin Growth (pp) EBITDA Margin 700 35.0% 600 30.0% EBITDA margin 500 39.3% in FY11 25.0% 400 20.0% 300 15.0% 200 10.0% 100 5.0% 0 0.0% 4Q08 1Q09 2Q09 3Q09 4Q09 1Q
Slide 5: Balanced exposure to Developed & Developing markets
Balanced exposure to Developed & Developing markets FY11 Volumes FY11 EBITDA APAC 2% WE CEE WE 8% 2% 8% NA APAC 32% LAS 8% 14% NA 43% CEE 6% LAS LAN 9% 38% LAN 31% Developed Developing Volume 40% 60% EBITDA 51% 49% Note: Does not depict Global Export & Holding Companies, which represent 2% of volume
Slide 6: Strong Global Brands performance +3.3%
Strong Global Brands performance +3.3% Budweiser Stella Beck’s +3.1% Artois +0.8% +5.9% © AB InBev 2012 – All rights reserved 5
Slide 7: Global Budweiser growth
Global Budweiser growth Global Budweiser Volume +3.1% (mm hls) +1.7% 37.6 36.5 35.8 2009 2010 2011 © AB InBev 2012 – All rights reserved 6
Slide 8: Solid Budweiser growth in all of our key markets
Solid Budweiser growth in all of our key markets Rate of decline cut by half during 2011 Double digit growth, highest on record Highest share ever, over 13% 2nd highest volume on record Almost 1% share of the market Exceeding expectations Rest of world doing well © AB InBev 2012 – All
Slide 9: Stella Artois continues its global expansion
Stella Artois continues its global expansion UK Successful Launch of Cidre Brazil +200% Argentina +13% USA +24% © AB InBev 2012 – All rights reserved 8
Slide 10: Renovations and Innovations driving growth
Renovations and Innovations driving growth 6% of 2011 volumes © AB InBev 2012 – All rights reserved 9
Slide 11: Beer: the original social network
Beer: the original social network © AB InBev 2012 – All rights reserved 10
Slide 12: The Power of our Dream
The Power of our Dream Responsible Environment Community Drinking © AB InBev 2012 – All rights reserved 11
Slide 13: Priorities for the United States
Priorities for the United States Focus Brands Renovation and innovation pipeline Revenue management Excellence in sales and route to market execution © AB InBev 2012 – All rights reserved 12
Slide 14: Bud Light: record Favorite Brand scores
Bud Light: record “Favorite Brand” scores 150 140 130 Index = 100 120 110 100 90 2009 2010 2011 80 D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J Bud Light Mega Brand Bud Light © AB InBev 2012 – All rights reserved 13
Slide 15: NFL: Fan-focused strategy
NFL: Fan-focused strategy Great display activity Increased media investment NFL team associations © AB InBev 2012 – All rights reserved 14
Slide 16: Successful Super Bowl execution
Successful Super Bowl execution Bud Light +3.9% YoY in Jan 2012 Bud Light Hotel Half-time show music downloads Great social media response © AB InBev 2012 – All rights reserved US Volume growth figures are based on STRs 15
Slide 17: Bud Light Platinum ahead of expectations
Bud Light Platinum ahead of expectations More than 1% market share Almost 90% distribution © © AB AB InBev InBev 2012 2012 – – All All rights rights reserved reserved Source: IRI Syndicated data, 4 weeks ended 2/19/12 16
Slide 18: Best Budweiser performance in years
Best Budweiser performance in years Share decline cut by half in 2011 Wholesalers excited by 2012 programs © AB © AB InBev InBev 2012 2011 – All – All rights rights reserved reserved 17
Slide 19: Budweiser gaining reappraisal
Budweiser gaining reappraisal “Favorite Brand” scores (21-34 Age Group) 120 115 110 Index =100 105 100 95 2010 2011 90 J F M A M J J A S O N D J F M A M J J A S O N D J © AB InBev 2012 – All rights reserved 18
Slide 20: Michelob Ultra +5.9%
Michelob Ultra +5.9% Market share +14 bp Active lifestyle positioning © AB InBev 2012 © AB – All InBev rights 2011 reserved – All rights reserved US Volume growth figures are based on STRs 19
Slide 21: Stella Artois +24%
Stella Artois +24% Market share +11 bp Consistent positioning and execution © © AB AB InBev InBev 2012 2012 – – All All rights rights reserved reserved US Volume growth figures are based on STRs 20
Slide 22: Strong growth in our high end brands
Strong growth in our high end brands High end share +136 bp Shock Top +96% Leffe +50% Goose Island >+20% © © AB AB InBev InBev 2012 © AB 2012 – – All InBevAll rights 2011 rights reserved – All reserved rights reserved US Volume growth figures are based on STRs 21
Slide 23: More to come: pipeline is healthy
More to come: pipeline is healthy © AB InBev 2012 – All rights reserved 22
Slide 24: Priorities for Brazil
Priorities for Brazil Focus Brands Renovation and innovation pipeline Grow premium volumes Regional expansion © AB InBev 2012 – All rights reserved 23
Slide 25: Skol – Young and Innovative
Skol – Young and Innovative 4th largest beer brand in the world 2011 highlights: • Continued growth in brand preference • Skol 360 roll-out • Skol Sensation • Digital platform © AB InBev 2012 – All rights reserved 24
Slide 26: Brahma – Brahmeiro spirit
Brahma – “Brahmeiro” spirit 7th largest beer brand in the world Soccer platform • Local teams • FIFA 2014 World Cup Carnival • 2012 Salvador • Brahma box in Rio © AB InBev 2012 – All rights reserved 25
Slide 27: Antarctica – Gente Boa
Antarctica – “Gente Boa” Integration with local culture • Rio street carnival • Support of Samba events • São João Circuit Roll-out of Sub Zero innovation © AB InBev 2012 – All rights reserved 26
Slide 28: Budweiser – International appeal
Budweiser – International appeal “Great times are coming” Successful launch, exceeding expectations Events platform: • International concerts © AB InBev 2012 – All rights reserved 27
Slide 29: Priorities for China
Priorities for China Focus Brands Renovation and innovation pipeline Growing premium volumes Expanding geographically People and processes © AB InBev 2012 – All rights reserved 28
Slide 30: China Focus Brands Growth of 13.9% in FY11
China Focus Brands Growth of 13.9% in FY11 Driving share gains and profitability 0.8 Focus Brands Volume CAGR 69% 0.7 +11.2% 58% 0.6 0.5 42% 0.4 31% 0.3 0.2 0.1 0 2008 2011 Focus Brands as a % of Total Volumes Other Brands as a % of Total Volumes © AB InBev 2012 – All rights reserved 29
Slide 31: Strong Renovations and Innovation Pipeline
Strong Renovations and Innovation Pipeline Seed National Pilot South East Stella Bud Alum Harbin Bud GD Bud Bud Mini-Bud Harbin Sedrin Sleeve / Artois 473ml Ice GD Foil Can Lime 460ml 236ml 1900 500ml CAN Treasure © AB InBev 2012 – All rights reserved 30
Slide 32: 6 Greenfields announced
6 Greenfields announced Yinkou Xinxiang Suqian Ziyang Zhangzhou Greenfields Nanning © AB InBev 2012 – All rights reserved 31
Slide 33: Zone overview
Zone overview Western Europe beer volumes +0.4% • Jupiler in Belgium • Beck’s in Germany Central & Eastern Europe beer volumes -4.0% • Volume share gain in Ukraine • Value share gain in Russia Latin America South beer volumes +3.0% • Share gain in Argentina • Beer +4.7%, led by Quilmes • Stell
Slide 34: Strong performance in Western Europe
Strong performance in Western Europe Strong volumes: • Belgium +1.6% • Germany +5.2% • United Kingdom -6.0% Focus Brand growth of 1.8% • Belgium: Jupiler & Leffe • Germany: Beck’s, Hasseröder & Franziskaner • United Kingdom: Budweiser, Stella Artois Cidre Market share gains in all markets except the
Slide 35: Normalized EPS grew by 27.4% to $4.04
Normalized EPS grew by 27.4% to $4.04 0.11 0.05 0.17 USD per share $ 4.04 0.43 0.02 0.13 $ 3.17 EPS 2010 Scope Currency EBIT Net Income from Taxes EPS contribution finance cost associates 2011 © AB InBev 2012 – All rights reserved 34
Slide 36: Best in class cash flow generation
Best in class cash flow generation 14,000 +26% 32.0% in 2011 30.0% 12,000 27.3% 12,486 24.8% 23.5% 25.0% USD millions 10,000 9,905 9,124 20.0% 8,000 15.0% 6,000 5,533 4,000 10.0% 2008 2009 2010 2011 CF NR/CF% Cash Flow from Operating Activities Cash Flow from Operating Activities as a % of Net Reven
Slide 37: $3+ billion from Core Working Capital in 3 years
$3+ billion from Core Working Capital in 3 years 4.0% Average Core Working Capital (CWC) % of Net Revenue (1) 2.0% 2.1% 0.0% -0.6% -2.0% -4.0% -5.4% -6.0% -7.4% 2008 2009 2010 2011 -8.0% (1) Yearly average (on a rolling 12 month basis). CWC includes elements considered "core” to the operations, i.e.
Slide 38: Over $20 billion of deleveraging since 2008
Over $20 billion of deleveraging since 2008 Net Debt Net Debt/EBITDA (USD billions) 100 5.0x 4.70 80 3.73 4.0x 60 56.7 2.86 3.0x 45.2 39.7 2.26 40 2.0x 34.7 20 1.0x 0 0.0x 2008 2009 2010 2011 © AB InBev 2012 – All rights reserved Note: EBITDA is presented on a “normalized” basis before non-recurring
Slide 39: Growing dividends over time
Growing dividends over time Dividend per share (EUR) 1.20 0.80 0.28 0.38 2008 2009 2010 2011 Payout ratio (%) 33.8% 38.5% 26.3% 21.3% 2008 2009 2010 2011 © AB InBev 2012 – All rights reserved 38
Slide 40: In Summary
In Summary 2011 2012 Solid performance Focus on what we can control and influence Balanced exposure Strategic strengths Focus Brands strategy • Reach and resources Global brands • Right brands Clear priorities • Right markets • Financial discipline • People • Best Beer Company in a Better Wor
Slide 41: © AB InBev 2012 – All rights reserved
© AB InBev 2012 – All rights reserved