Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — SABMiller — Sanford C. Bernstein Strategic Decisions Conference 2010
31 slides from Anheuser-Busch InBev SA/NV's conference presentation, Sep 22, 2010
Slide 1: SABMiller plc – Sanford C. Bernstein Strategic Decisions Conference
SABMiller plc Sanford C. Bernstein Strategic Decisions Conference 22 September, 2010 Graham Mackay CEO SABMiller plc
Slide 2: Forward looking statements
Forward looking statements This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, includi
Slide 3: SABMiller is a leading global beverage company
SABMiller is a leading global beverage company World’s 2nd largest brewer # 1 or 2 position in > 90% of markets1 5 year revenue and EBIT CAGR of 13% The leading Coke bottler in Africa Revenue $b, F05-F10 EBIT $b, F05-F10 30 5 25 4 20 3 15 2 10 5 1 0 0 F'05 F'06 F'07 F'08 F'09 F'10 F'05 F'06 F'07 F'0
Slide 4: Leading positions in our top 10 markets
Leading positions in our top 10 markets MillerCoors Czech #2 #1 44mHl 8mHl Russia #5 Colombia Poland 6mHl #1 #1 19mHl 15mHl China #1 Ecuador Romania 37mHl #1 #1 5mHl 6mHl Peru South Africa #1 #1 10mHl 26mHl Country Volume share Market position Share* Volume* ©SABMiller plc 2010 Sanford C. Bernstein
Slide 5: Delivering profit growth across markets
Delivering profit growth across markets North South Europe Latin America Africa Asia America Africa Volume 43.5 25.8 45.5 38.0 13.5 46.3 (m hls) F07-F10 volume -2% -1% 4% 3% 8% 14% CAGR F07-F10 EBITA 18% -7% 6% 15% 12% 4% CAGR Market Poland: 41% Colombia: 98% Tanzania: 75% China: 21% share USA: 30%
Slide 6: SABMiller has leading growth exposure
SABMiller has leading growth exposure Projected lager volume growth rate CAGR 2009-15 % share of volume 2008 14 High growth markets: >5% 20 28 21 31 Medium growth markets: 2-5% 28 65 Low growth markets: <2% 49 44 SABMiller Peer #1 Peer #2 Source: “Strategic planning tool”; team, McKinsey analysis, p
Slide 7: Category development opportunity in emerging markets
Category development opportunity in emerging markets 100% 14% 90% 21% 80% 41% 4% 47% 70% 36% 68% 60% 30% 9% 50% 11% 40% 30% 2% 50% 50% 45% 43% 20% 30% 10% 0% North America Africa Asia Latin America East Europe Clear Beer Sorghum Beer Wine Spirits Growing preference for beer due to societal developme
Slide 8: Regional overview
Regional overview ©SABMiller plc 2010 Sanford C. Bernstein Limited 8 Strategic Decisions Conference 2010
Slide 9: Regional overview: Latin America
Regional overview: Latin America Improved profitability, despite challenging economies Good progress towards total transformation of beer category by SABMiller – Consumer insights and brand portfolios – Sales and operations Continuous gains in our share of alcohol and share of beer Strong profit gro
Slide 10: Regional overview: Europe
Regional overview: Europe Weak current market fundamentals following a decade of strong growth Further beer growth expected post-recession Unique SABMiller focus on building and maintaining leading local power brands – Major market share gains – SABMiller captures a disproportionate share of key nat
Slide 11: Regional overview: North America
Regional overview: North America Tough trading conditions driven by unemployment; pricing remains firm JV integration progressing well – Synergies and cost reductions on track for a total of $750m Good market share performance from focus brands – Coors Light gaining segment share, enhanced by packag
Slide 12: Regional overview: Africa
Regional overview: Africa Strong beer brand portfolios with a longer price ladder Fuller beverage portfolios to leverage scale in operations Diverse geographic footprint supporting growth Expanded capacity is driving profit growth, despite local challenges ©SABMiller plc 2010 Sanford C. Bernstein Li
Slide 13: Regional overview: South Africa
Regional overview: South Africa Reducing operational costs Investing in rejuvenated mainstream brand portfolio Building premium portfolio following recent setbacks Intensifying our sales and distribution competitiveness in the marketplace Leveraging our market position BBBEE transaction welcomed by
Slide 14: Regional overview: Asia
Regional overview: Asia Unrivalled national footprint in China, differentiated by #1 Snow brand – Over double the size of #2 brand – Double the market’s growth rate – Market share growth, scale and acquisition synergies Regulatory environment constraining growth in India Successful Australia beer JV
Slide 15: Four strategic priorities
Four strategic priorities Creating a Developing balanced and strong, relevant attractive brand portfolios global spread of that win businesses in the local market Constantly raising Leveraging our the profitability skills and global of local scale businesses, sustainably ©SABMiller plc 2010 Sanford
Slide 16: Strong, relevant brand portfolios that win in local markets
Strong, relevant brand portfolios that win in local markets Capturing new consumer segments and occasions by building and expanding the beer category Building a differentiated premium portfolio with global and local brands Strengthening mainstream brands through distinctive positioning and integrate
Slide 17: Building the category: Affordability
Building the category: Affordability In Africa, there is significant opportunity to move consumers up to the commercial beer category ‘natural’ potential 4-5 x commercial market actual Homemade brews & local spirits Opaque Affordable Mainstream Premium Source: Internal strategic analysis based on in
Slide 18: Building the category: Affordability
Building the category: Affordability Millet/Maize/Sorghum based Cane spirits ©SABMiller plc 2010 Sanford C. Bernstein Limited Strategic Decisions Conference 2010
Slide 19: Building the category: Affordability
Building the category: Affordability Develop local farms and local ingredients – Excise breaks up to 50% – Government and NGO partnerships Passing the financial benefit to consumers whilst maintaining margins – Affordable brand (e.g. Eagle franchise) indexed at 70% to mainstream Continue investing b
Slide 20: Building the category: Accessing female occasions
Building the category: Accessing female occasions Redds in Colombia Addresses non-beer consumers within bars, discos, and entertainment venues Flavored beer oriented primarily to females when partying with friends – Consumption by females is 51% (27% beer) 35% of volume from non beer Accounts for 23
Slide 21: Building the category: beyond beer
Building the category: beyond beer Pony Malta in Colombia Birrell in the Czech Republic ©SABMiller plc 2010 Sanford C. Bernstein Limited Strategic Decisions Conference 2010
Slide 22: Development and leadership of local premium segment
Development and leadership of local premium segment North America Europe Latin America Asia South Africa Africa ©SABMiller plc 2010 Sanford C. Bernstein Limited Strategic Decisions Conference 2010
Slide 23: Development and leadership of local premium segment
Development and leadership of local premium segment Pilsner Urquell in Czech and Lech in Local premium % of portfolio Poland growing in tough conditions F07-F10 CAGR LatAm focus on local premium 1% 14% 13% 9% 37% 30% packaging innovation has driven 17% 3- year CAGR 25% 20% Castle Lite in South Afric
Slide 24: Strengthening mainstream brands: Castle Lager in South Africa
Strengthening mainstream brands Castle Lager in South Africa Returned to core DNA, expressed with contemporary relevance Capitalised on natural links to the World Cup Focused on compelling through the line activations Turnaround from decline Year to date over 15% growth ©SABMiller plc 2010 Sanford C
Slide 25: Revenue management: Occasion based packaging
Revenue management: Occasion based packaging Smaller packs increase channel and pack occasions in LatAm Success of Aguilita in Colombia Increases affordability Increases consumption in hot climates 29% of incremental volume from outside beer category Venezuela: small pack (250ml) is the dominant pac
Slide 26: Revenue management: Portfolio brand-pack-channel mix
Revenue management: Portfolio brand-pack-channel mix Single brand portfolio development in China Price index On/off premise Night outlets Supermarkets Super 750 Premium Superior Crystal Draft Premium 325 Premium Draft variants of the Snow brand Brushes/Brave the 150 Medium World Upper 125 Mainstream
Slide 27: Channel Execution in building the category
Channel Execution in building the category Primary focus has been on: – Continuing to improve beer availability – reduce stock outs – Increasing penetration in retail outlets – Enhancing consumer drinking experience o Cold culture o Freshness Major opportunities: – Implementing retail and shopper se
Slide 28: Business capability programme highlights: Objectives
Business capability programme highlights Objectives Reduce local complexity by standardising back office Lower costs with global procurement and back-office systems Undivided in-country commercial focus ©SABMiller plc 2010 Sanford C. Bernstein Limited Strategic Decisions Conference 2010
Slide 29: Business capability programme highlights: Progress to date
Business capability programme highlights Progress to date Global procurement office established Back office system live in South Africa and UK Lead developments: – Customer facing systems live in Latin America – SSC outsourced in South Africa – Supply chain process and systems enhancements in SA and
Slide 30: SABMiller Group – conclusions
SABMiller Group- conclusions Our medium term outlook for growth in volume, value and profitability remains strong Consumer recoveries are occurring only slowly, with significant short-term volatility Our commercial strategies are unwavering, developing the beer category and our leading positions SAB
Slide 31: SABMiller plc Q&A
MILLER SABMiller plc O&A
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