Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Q4 2022 Earnings Presentation
41 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Mar 2, 2023
Slide 1: FY & 4Q22 Results
FY & 4Q22 Results March 2, 2023
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 FY22 & 4Q22 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 2023 – All rights reserved | 3
Slide 4: Operating performance highlights
Operating performance highlights © AB InBev 2023– All rights reserved | 4
Slide 5: FY22 operating performance
FY22 operating performance Total volumes +2.3% All-time high FY volume Own beer +1.8% and non-beer +5.2% up 5.8% 1 versus 2019 FY volume, millions of hl Total revenue +11.2% +5.8% Revenue per hl +8.6% 595 582 EBITDA +7.2% 559 561 556 557 EBITDA margin of 34.3% Normalized EPS of $3.21 Underlying EPS
Slide 6: 4Q22 operating performance
4Q22 operating performance Total volumes -0.6% Accelerating Revenue per hl growth Own beer -0.9% and non-beer +1.9% with revenue management initiatives implemented across key markets Total revenue +10.2% 11.2% Revenue per hl +11.2% 8.6% EBITDA +7.6% EBITDA margin of 33.7% 5.5% Normalized EPS of $0.9
Slide 7: ABI's diversified footprint provides a unique platform to lead & grow the category
ABI’s diversified footprint provides a unique platform to lead & grow the category, delivering volume growth in over 60% of our markets EMEA 13% EBITDA contribution1 +13.1% North America Organic revenue 29% EBITDA contribution1 FY22 +11.5% Organic EBITDA +2.4% Organic revenue FY22 -0.5% Organic EBIT
Slide 8: North America
North America United States Continued portfolio rebalancing delivered another year of FY2022 top-line growth and stable EBITDA despite the elevated cost environment Total Volume - 4.0% • Above core beer and Beyond Beer brands generated over 40% of our revenue Net Revenue / hl + 6.7% Net Revenue + 2.
Slide 9: Middle Americas
Middle Americas Mexico Double-digit top- and bottom-line growth with record FY2022 high volumes • Volume growth across all segments, with above core portfolio growing over 20% Total Volume + 4.3% Net Revenue / hl + 10.4% Net Revenue + 15.1% Colombia Double-digit top- and bottom-line growth with reco
Slide 10: South America
South America Brazil Double-digit top- and bottom-line growth with record FY2022 high volumes • Record high beer volumes driven by continued market share expansion Total Volume + 4.6% Net Revenue / hl + 22.2% Net Revenue + 27.9% Argentina • Volume growth led by outperformance of our above core beer
Slide 11: EMEA
EMEA Europe Double-digit top-line and high single digit FY2022 bottom-line growth • Premium and above brands now make up over 55% of revenue Total Volume + 4.6% Net Revenue / hl + 8.1% Net Revenue + 13.1% South Africa Double-digit top- and bottom-line growth with record high full year volumes despit
Slide 12: Asia Pacific
Asia Pacific China Continued premiumization though industry impacted by FY2022 COVID-19 restrictions throughout the year • Premium and super premium portfolio delivered volume and revenue growth ahead of FY19 pre-pandemic levels Total Volume + 0.6% Net Revenue / hl + 1.8% Net Revenue + 2.4% South Ko
Slide 13: Sustainability highlights
Sustainability highlights © AB InBev 2023 – All rights reserved | 13
Slide 14: 8 strategic priorities
A strong sustainability agenda is vital to long-term value creation that capture the shared prosperity our company 8 strategic priorities brings to the world that capture the shared prosperity our company brings to the world that enable our commercial vision strategic priorities that enable our comm
Slide 15: Advancing our sustainability priorities
Advancing our sustainability priorities Smart Drinking & Moderation Climate & Water Stewardship Sustainable Agriculture Invested over 700 million USD since 2016 in social • Decreased Scopes 1 and 2 absolute GHG Worked with nearly 24,000 farmers in our direct norms marketing campaigns emissions by 39
Slide 16: Advancing our sustainability priorities
Advancing our sustainability priorities Entrepreneurship & Circular Packaging Sustainable Innovation Diversity, Equity & Inclusion 77% of our products are in packaging that is Kicked off Cohort 4 of the 100+ Accelerator with our Increased representation of women in top five returnable or made from m
Slide 17: Update on our strategic pillars
Update on our strategic pillars © AB InBev 2023 – All rights reserved | 17
Slide 18: Lead and grow the category
3 1 Optimize our Lead and grow Lead and grow business the category the category 2 Digitize and monetize our ecosystem © AB InBev 2023 – All rights reserved | 18
Slide 19: All-time high FY volume driven by above core portfolio with Corona leading the growth
All-time high FY volume driven by above core portfolio with Corona leading the growth Volume Growth since 2019 FY volume, millions of hl +5.8% 595 1. 582 42.2% 16.8% 561 Above Core 531 2019 2020 2021 2022 Notes 1. Outside of Mexico © AB InBev 2023 – All rights reserved | 19
Slide 20: Consistent investment with best-in-class creativity
Consistent investment with best-in-class creativity Sales & Marketing Awards As reported 50 40 2019 2020 2021 2022 $7.3Bn $6.9Bn $7.3Bn $6.8Bn 23 20 6 8 Creative marketer of the year 2016 2017 2018 2019 2020/21 2022 ($Bn) 6.8 #4 #1 #7 #7 #24 0.4 Most effective 6.3 2017 2018 2019 2020 2022 marketer w
Slide 21: Lead and grow the category: category expansion levers
Lead and grow the category: 5 category expansion levers 1 2 3 4 5 Inclusive Core Superiority Occasions Premiumization Beyond Beer Category Development Consumer participation Mainstream portfolio Double-digit revenue Above core portfolio Contributed ~$1.6bn of increased in over 70% in delivered high-
Slide 22: Led by Corona with 18.6% growth, our global brands delivered 8.9% revenue growth in FY22
Led by Corona with 18.6% growth, our global brands delivered 8.9% revenue growth in FY22 Outside of their home markets, where they command a premium price vs. FY21 vs. FY21 vs. FY21 +18.6% +11.7% +2.5% FY22 revenue outside Mexico FY22 revenue outside Belgium FY22 revenue outside the US © AB InBev 20
Slide 23: Innovation contributed ~$5 billion USD in revenue
Innovation contributed ~$5 billion USD in revenue Inclusive Category Core Superiority Occasions Premiumization Beyond Beer Note: Innovation defined as products developed or scaled in L36M © AB InBev 2023 – All rights reserved | 23
Slide 24: Digitize and monetize our ecosystem
3 1 Digitize and Optimize our business Lead and grow the category monetize our ecosystem 2 Digitize and monetize our ecosystem © AB InBev 2023 – All rights reserved | 24
Slide 25: BEES continues to expand and empower our customers
BEES continues to expand and empower our customers December 2021 December 2022 Monthly Active Users 2.5m 3.1m (“MAU”) Gross Merchandise Value ~$20bn ~$32bn (“GMV”) FY2021 FY2022 Net Promoter Score +46 +56 (“NPS”) 1 Marketplace Markets 11 15 Marketplace buyers 30% 56% % of current BEES buyers FY Mark
Slide 26: Brazil Case Study: BEES is fuelling customer growth and satisfaction
Brazil Case Study: BEES is fuelling customer growth and satisfaction As our customers grow, we grow Driving customer growth Expanding portfolio availability Improving Market Share Total customers (thousands) SKUs per retailer per quarter (#) Market share1 +26% +11% 1 1,248 9.6 994 8.6 2019 2022 2019
Slide 27: Scaling our digital direct-to-consumer products
Scaling our digital direct-to-consumer products Surpassing Reaching $450m FY22 revenue 69m FY22 online orders PerfectDraft On-Demand Zé Delivery TaDa Delivery +7% active households ~8m Active 4x On-Demand order growth vs. LY Consumers (FY22) growth vs. LY © AB InBev 2023 – All rights reserved | 27
Slide 28: FIFA World Cup was a key milestone with significant results for DTC
FIFA World Cup was a key milestone with significant results for DTC Daily Average Orders # Consumers 1 During FWC vs. Pre-FWC New drinkers2 +11% +344k +23% +110k +45% +13k Households Notes: 1. Represents daily average orders growth during FIFA World CupTM (November 20, 2022, through December 18, 202
Slide 29: Optimize our business
3 1 Optimize our Lead and grow Optimize our business the category business 2 Digitize and monetize our ecosystem © AB InBev 2023 – All rights reserved | 29
Slide 30: Maximizing value
Maximizing value Optimized resource allocation Robust risk management Efficient capital structure © AB InBev 2023 – All rights reserved | 30
Slide 31: Dynamically balancing capital allocation priorities to maximize value creation
Dynamically balancing capital allocation priorities to maximize value creation Deleveraging Invest behind organic growth Selective Return of M&A Capital © AB InBev 2023 – All rights reserved | 31
Slide 32: Consistent investment in organic growth: over $45 billion spent since 2019
Consistent investment in organic growth: over $45 billion spent since 2019 Sales & Marketing Net Capital Expenditures ($Bn) ($Bn) 7.3 7.3 5.5 6.9 6.8 4.8 4.6 3.7 2019 2020 2021 2022 2019 2020 2021 2022 © AB InBev 2023 – All rights reserved | 32
Slide 33: Creating value through deleveraging, with ~90% of value to be captured as we progress 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 3.51X FY22 n 3.96X tio a FY21 re C e alu V 4.78x FY20 Net Debt / EBITDA Lower Leverage © AB InBev 2023 – All rights reserved | 33
Slide 34: Net Debt / EBITDA ratio decreased to 3.51x, with $8.9Bn gross debt reduction in 2022
Net Debt / EBITDA ratio decreased to 3.51x, with $8.9Bn gross debt reduction in 2022 and $23.1Bn decrease since 2019 1. Net Leverage (x)1. Gross Debt ($B) 2. 5.50x 4.80x 3. 4.78x 4.61x 4.01x 4. 3.96x 122.6 116.4 3.51x 111.6 -23.1 103.0 98.6 88.8 79.9 2016 2017 2018 2019 2020 2021 2022 Notes 1. Net L
Slide 35: Well-distributed bond maturity profile with very manageable coupon and limited medium-term refinancing needs
Well-distributed bond maturity profile with very manageable coupon and limited medium-term refinancing needs ~$3Bn ~4% ~15 yrs weighted average maturing through 2025 Pre-tax coupon maturity 12 10 Principal ($B) 8 6 4 2 0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Slide 36: Bond portfolio is diversified across currencies and 95% fixed rate
Bond portfolio is diversified across currencies and 95% fixed rate Diverse currency mix reduces risk 95% of our bond portfolio is fixed rate 6% CAD Floating rate 3% GBP 5% 5% Other 28% EUR 58% USD 95% Fixed rate Note : Represents full bond portfolio as of December 31st 2022, after hedging © AB InBev
Slide 37: FY22 underlying EPS grew by 5.2% to $3.03, driven by operating profit growth
FY22 underlying EPS grew by 5.2% to $3.03, driven by operating profit growth 0.39 0.68 0.14 0.17 0.06 3.03 0.26 0.03 0.19 2.88 FY21 Normalized Normalized 1 Depreciation Net interest Other financial Income tax Associates Hyperinflation FY22 EBITDA EBITDA FX & amortization expense results expense & No
Slide 38: Dynamically balancing capital allocation priorities to maximize value creation
Dynamically balancing capital allocation priorities to maximize value creation Deleveraging Gross Debt reduced by $8.9Bn Net Leverage reached 3.51x $11.7Bn total investment in S&M and Net Capex Invest behind organic Proposed FY dividend growth Increase to €0.75 per share Selective Return of M&A Capi
Slide 39: Meeting the moment in 2023
Meeting the moment in 2023 © AB InBev 2023 – All rights reserved | 39
Slide 40: Consistent execution of our strategy driving performance
Consistent execution of our strategy driving performance Strong free cash flow and Global leader in big, profitable profitability and growing beer category • Free Cash Flow $8.5 billion 3 1 • All time high volumes, growing in over 60% of our markets • $8.9 billion Gross Debt reduction; Net Debt/ Opt
Slide 41: Q&A
Q&A © AB InBev 2023 – All rights reserved | 41