Anheuser-busch Inbev Sa/nv · EURONEXT:ABI

Anheuser-busch Inbev Sa/nv — AB InBev — Q4 2023 Earnings Presentation

45 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Feb 29, 2024

Slide 1: FY & 4Q23 Results
FY & 4Q23 Results February 29, 2024
Slide 2: Legal disclaimer
Legal disclaimer 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 Company w
Slide 3: Agenda
Agenda 01 FY23 & 4Q23 operating performance highlights 02 Update on our strategic pillars • Lead and grow the category • Digitize and monetize our ecosystem • Optimize our business 03 Q&A © AB InBev 2024 – All rights reserved | 3
Slide 5: FY23 operating performance: all-time high revenue
FY23 operating performance All-time high revenue FY Net Revenue ($Bn) 1 Total volumes -1.7% Own beer -2.3% and non-beer +2.1% +14% Nominal growth Total revenue +7.8% 59.4 57.7 Revenue per hl +9.9% 53.9 EBITDA +7.0% 52.2 EBITDA margin of 33.6% Underlying EPS of $3.05 46.7 YE Net debt to EBITDA ratio
Slide 6: 4Q23 operating performance
4Q23 operating performance Total volumes -2.6% Own beer -3.6% and non-beer +3.0% Total revenue +6.2% Revenue per hl +9.3% EBITDA +6.2% EBITDA margin of 33.7% Underlying EPS of $0.82 © AB InBev 2024 – All rights reserved |6
Slide 7: Diversified footprint provides unique scale to lead & grow the category
Diversified footprint provides unique scale to lead & grow the category, delivering revenue growth in ~85% of our markets EMEA 12% EBITDA contribution 1 +10.8% North America Organic revenue 22% EBITDA contribution 1 FY23 +5.6% -8.3% Organic EBITDA Organic revenue FY23 -21.1% Organic EBITDA APAC 10%
Slide 8: North America
North America United States Revenue declined by 9.5% impacted by volume FY23 performance • Performance impacted by volume decline of Bud Light Total Volume - 12.1% • Market share has seen continued gradual improvement since May Net Revenue / hl + 4.3% Net Revenue - 8.3% Canada • Revenue was flat wit
Slide 9: Market share has continued to improve gradually since May
Market share has continued to improve gradually since May Source: Circana data through week ending 18-Feb-2024 © AB InBev 2024 – All rights reserved |9
Slide 11: Moving forward, focusing on what we do best
Moving forward, focusing on what we do best ‒1 Brewing great beer for everyone ‒2 Listening to our consumers ‒3 Supporting our partners ‒4 Impacting the communities we serve © AB InBev 2024 – All rights reserved |11
Slide 12: Middle Americas
Middle Americas Mexico High-single digit top- and bottom-line growth with FY23 margin expansion • Above core portfolio continued to outperform, delivering Total Volume + 0.7% low-single digit volume growth Net Revenue / hl + 8.4% Net Revenue + 9.2% Colombia Record high volumes delivered double-digit
Slide 13: South America
South America Brazil High-single digit top-line and double-digit bottom- FY23 line growth with 462bps of margin expansion • Premium and super premium brands grew volumes in Total Volume - 1.1% the mid-twenties and gained share of the premium beer segment 1 Net Revenue / hl + 28.8% Net Revenue + 27.3
Slide 14: EMEA
EMEA Europe High-single digit top- and low-single digit bottom- FY23 line growth • Premium and super premium portfolio delivered high- Total Volume - 0.8% single digit revenue growth Net Revenue / hl + 11.7% Net Revenue + 10.8% South Africa Record high volumes delivered double digit top- and EBITDA
Slide 15: Asia Pacific
Asia Pacific China Double digit top- and bottom-line growth with FY23 continued premiumization • Premium and super premium portfolio delivered Total Volume + 4.3% double-digit revenue growth Net Revenue / hl + 5.5% Net Revenue + 10.0% South Korea • Revenue decreased by low-single digits EBITDA + 9.8
Slide 18: Beer and beyond beer continued to gain share of alcohol in 2023
Beer and beyond beer continued to gain share of alcohol in 2023 Note: Share of throat based on Liters of Beer Equivalent (LBE) conversion factor, where 1 spirit serving is 6.6 beer servings, 1 wine serving is 1.89 beer servings and 1 RTD/Cider serving is 1.1 beer servings Source: Euromonitor Interna
Slide 19: All-time high revenue in 2023 led by global megabrands
All-time high revenue in 2023 Led by Global Megabrands +18.2% FY23 Revenue growth Outside of their home markets, where they command a premium price Notes 1. Historical net revenue adjusted for scopes © AB InBev 2024 – All rights reserved |19
Slide 20: Investing in our brands for the long-term
Investing in our brands for the Megabrand portfolio increasing long-term in Brand Power Total Megabrand Brand Power 1 + ~20 bps 2022 2023 Notes 1. According to Kantar and internal estimates © AB InBev 2024 – All rights reserved |20
Slide 21: Volumes remained resilient with continued NR/hl growth
Volumes remained resilient with continued NR/hl growth Notes 1. Historical volumes adjusted for scopes © AB InBev 2024 – All rights reserved |21
Slide 22: Lead and grow the category: category expansion levers
Lead and grow the category: 5 category expansion levers Category Occasions Participation Core Superiority Development Premiumization Beyond Beer Participation increased Mainstream portfolio High-teens revenue Above core portfolio Beyond Beer or remained stable in delivered high-single growth of our
Slide 23: Global megabrands leading growth
Global megabrands leading growth +18.2% FY23 Revenue growth +22.1% FY23 revenue growth Outside of their home markets, outside of Mexico 1 where they command a premium price +17.1% FY23 revenue growth outside of the US +18.8% FY23 revenue growth outside of Belgium +7.5% FY23 revenue growth outside of
Slide 24: Scalable innovations delivering ~10% revenue contribution
Scalable innovations delivering ~10% revenue contribution Innovation Contribution % of Global Net Revenue Above Core Notes 1. Innovations are new products, either liquid or packaging launched in market in the last 5 years © AB InBev 2024 – All rights reserved |24
Slide 26: BEES continues to expand and empower our customers
BEES continues to expand and empower our customers FY2022 FY2023 YoY Monthly Active Users 3.1m 3.7m +20% (“MAU”) Dec Dec Gross Merchandise Value ~$32bn ~$40bn +27% 2 (“GMV”) FY FY Net Promoter Score +50 +60 +10 (“NPS”) 1 FY FY Marketplace buyers 56% 67% +11pts % of current BEES buyers Dec Dec Market
Slide 27: Scaling our digital direct-to-consumer megabrands
Scaling our digital direct- to-consumer megabrands FY22 FY23 YoY Revenue >$450m >$550m +15% organic growth Online orders ~68m ~69m +1% Active Consumers (R12M) 9.4m 10.7m +14% © AB InBev 2024 – All rights reserved |27
Slide 30: Advancing our sustainability priorities to support our commercial vision
Advancing our sustainability priorities to support our commercial vision Climate Action Water Stewardship 44% 18% Reduction in Scopes Improvement in water 1 & 2 emissions since 2017 efficiency since 2017 Smart Agriculture Circular Packaging 95% 77.5% Direct farmers skilled Products in packaging that
Slide 32: Managing margin pressures: EBITDA margin expansion in two key regions
Managing margin pressures EBITDA margin expansion in two key regions Middle Americas +80 bps margin expansion 1 South America +542 bps margin expansion 1 Note: 1. Organic EBITDA margin expansion © AB InBev 2024 – All rights reserved |32
Slide 33: Free cash flow increased by ~$300 million to reach $8.8Bn
Free cash flow increased by ~$300 million to reach $8.8Bn Note: 1. Free cash flow defined as Cash flow from Operating Activities less Net Capex © AB InBev 2024 – All rights reserved |33
Slide 34: Dynamically balancing capital allocation priorities
Dynamically balancing capital allocation priorities to maximize value creation DELEVERAGING INVEST IN ORGANIC GROWTH SELECTIVE M&A RETURN OF CAPITAL © AB InBev 2024 – All rights reserved |34
Slide 35: Creating value through deleveraging towards 3.0x
Creating value through deleveraging, with ~90% of value to be captured as we progress towards 3.0x Value Creation 2.0X <2.0X 3.0X 3.38X FY23 3.51X FY22 3.96X FY21 Net Debt / EBITDA Lower Leverage © AB InBev 2024 – All rights reserved |35
Slide 36: Continued focus on deleveraging as net leverage decreased to 3.38x
Continued focus on deleveraging as net leverage decreased to 3.38x Notes 1. Net Leverage (x) represents Net Debt to Normalized LTM EBITDA multiple. The Net and Gross Debt include lease liabilities per IFRS 16 as from 2018 2. 2019 Net Leverage calculated considering the proceeds of the divestment of
Slide 37: Actively managed debt portfolio with no relevant medium-term refinancing needs
Actively managed debt portfolio with manageable coupon and no relevant medium-term refinancing needs Notes: 1. Represents full bond portfolio as of December 31st, 2023 2. Represents full bond portfolio as of December 31st, 2023, after hedging © AB InBev 2024 – All rights reserved |37
Slide 38: Dynamically balancing capital allocation priorities to maximize value creation
Dynamically balancing capital allocation priorities to maximize value creation Debt repurchased, $3.0B 3.38x net leverage DELEVERAGING Share Buyback Progress 1: ~90% of $1Bn buyback complete INVEST IN ORGANIC GROWTH SELECTIVE M&A $11.6B Investments in S&M and Net Capex RETURN OF CAPITAL Strategic pa
Slide 40: 2024 outlook
2024 outlook Overall Performance Net Capex 1 4-8% $4.0-4.5Bn Organic EBITDA growth (USD, Billions) Normalized Effective Tax Rate (ETR) Net Finance Costs 27-29% $220-250m ~4% Net pension interest expenses and accretion expenses Average gross debt coupon (per quarter – USD, Millions) Note: 1. For FY24
Slide 42: Consistent execution of our strategy
Consistent execution of our strategy Another year of Global leader in large and profitable growth growing category • 7.0% organic EBITDA growth • Beer and beyond beer category gaining • $3.05 Underlying EPS share of total alcohol • $8.8 Bn free cash flow • All-time high revenue with growth in ~85% o
Slide 43: Our brands are uniquely positioned to activate the category in 2024
Our brands are uniquely positioned to activate the category in 2024 1H 2024 2H 2024 Full Year UFC Calendar: © AB InBev 2024 – All rights reserved |43

AB InBev — Q4 2023 Earnings Presentation on 6ix

Anheuser-busch Inbev Sa/nv — AB InBev — Q4 2023 Earnings Presentation

Slide 1: FY & 4Q23 Results

Slide 2: Legal disclaimer

Slide 3: Agenda

Slide 4: Operating performance highlights

Slide 5: FY23 operating performance: all-time high revenue

Slide 6: 4Q23 operating performance

Slide 7: Diversified footprint provides unique scale to lead & grow the category

Slide 8: North America

Slide 9: Market share has continued to improve gradually since May

Slide 10: Investing in our megabrands and mega platforms

Slide 11: Moving forward, focusing on what we do best

Slide 12: Middle Americas

Slide 13: South America

Slide 14: EMEA

Slide 15: Asia Pacific

Slide 16: Update on our strategic pillars

Slide 17: Lead and grow the category

Slide 18: Beer and beyond beer continued to gain share of alcohol in 2023

Slide 19: All-time high revenue in 2023 led by global megabrands

Slide 20: Investing in our brands for the long-term

Slide 21: Volumes remained resilient with continued NR/hl growth

Slide 22: Lead and grow the category: category expansion levers

Slide 23: Global megabrands leading growth

Slide 24: Scalable innovations delivering ~10% revenue contribution

Slide 25: Digitize and monetize our ecosystem

Slide 26: BEES continues to expand and empower our customers

Slide 27: Scaling our digital direct-to-consumer megabrands

Slide 28: Optimize our business

Slide 29: Maximizing value

Slide 30: Advancing our sustainability priorities to support our commercial vision

Slide 31: Unwavering commitment to invest for the long-term

Slide 32: Managing margin pressures: EBITDA margin expansion in two key regions

Slide 33: Free cash flow increased by ~$300 million to reach $8.8Bn

Slide 34: Dynamically balancing capital allocation priorities

Slide 35: Creating value through deleveraging towards 3.0x

Slide 36: Continued focus on deleveraging as net leverage decreased to 3.38x

Slide 37: Actively managed debt portfolio with no relevant medium-term refinancing needs

Slide 38: Dynamically balancing capital allocation priorities to maximize value creation

Slide 39: FY23 Underlying EPS increased to $3.05

Slide 40: 2024 outlook

Slide 41: Meeting the moment in 2024

Slide 42: Consistent execution of our strategy

Slide 43: Our brands are uniquely positioned to activate the category in 2024

Slide 44: Shareholder value creation

Slide 45: Q&A