Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Q1 2015 Earnings Presentation
22 slides from Anheuser-Busch InBev SA/NV's earnings presentation, May 6, 2015
Slide 1: First Quarter 2015 Results
First Quarter 2015 Results 6 May 2015 © AB InBev 2015 – All rights reserved 1
Slide 2: Forward looking statements
Forward looking statements 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
Slide 3: 1Q15 Summary
1Q15 Summary • Total Revenue +6.2% • Revenue per hl +7.5% on a constant geographic basis • Total volumes -1.2% • Own beer -1.0% and non-beer -3.0% • Focus Brands -0.3% and Global Brands +4.6% • EBITDA +11.1% • EBITDA margin +170 bps to 38.0% • Normalized EPS of $1.40 versus $0.87 in 1Q14 © AB InBev
Slide 4: Global Brand Volumes +4.6%
Global Brand Volumes +4.6% Corona 2.7% • Driven by growth in Australia, Canada, Italy and Mexico Budweiser Stella Artois 6.2% 1.2% • Great performances in • Good growth in US China and Brazil • “Buy a Lady a Drink” • US share position improving © AB InBev 2015 – All rights reserved 4
Slide 5: US – 1Q15 summary
US – 1Q15 summary Industry • STRs -0.5% AB InBev • STRs -1.5% • Market share decline of approximately 45 bps • Shipments (STWs) -6.0% due to a difficult comparable following build- up of wholesaler inventories ahead of union negotiations in 1Q14 • Revenue -4.8% • Beer revenue per hectoliter +1.3% in
Slide 6: Bud Light Building on 2014 Momentum
Bud Light Building on 2014 Momentum • Strong 2015 Super Bowl • Continued Aluminum Bottle roll- out • Gained share of Premium Lights. Total share down ~20 bps © AB InBev 2015 – All rights reserved 6
Slide 7: Budweiser Quality & Heritage Message Resonating with Consumers
Budweiser Quality & Heritage Message Resonating with Consumers • Budweiser share decline slowed to ~20 bps • ‘Brewed the Hard Way’ • ‘Bud & Burgers’ • Made in America • Music • National Parks Foundation © AB InBev 2015 – All rights reserved Note: Share based on internal estimates (STRs) 7
Slide 8: Healthy Growth in Above Premium
Healthy Growth in Above Premium • Above Premium brands grew ~20 bps of market share • Michelob ULTRA growth particularly strong • Good growth from Stella Artois and Goose Island • Positive trends in the on-premise © AB InBev 2015 – All rights reserved Note: Share based on internal estimates (STRs) 8
Slide 9: Building Our Portfolio of Near Beer
Building Our Portfolio of Near Beer • Near beer innovations to capture ‘Share of Throat’ • Bud Light MixxTail, Oculto and Bud Light Lime Lemon-Ade-Rita launched during 1Q15 © AB InBev 2015 – All rights reserved 9
Slide 10: Mexico – 1Q15 summary
Mexico – 1Q15 summary Industry • We estimate that industry volumes grew low single digits AB InBev • Revenue +8.1% • Volume +2.1% with strong contribution from Focus Brands • Revenue per hectoliter growth of +5.9% • EBITDA growth of +15.8% • EBITDA margin grew more than 300 basis points to 46.8% © A
Slide 11: Focus Brands volume +4.4%
Focus Brands volume +4.4% • Bud Light, Victoria solid growth • Strong Corona performance despite difficult comparable due to FIFA World Cup promotion in 1Q14
Slide 12: Brazil – 1Q15 summary
Brazil – 1Q15 summary Industry • Beer industry volumes marginally ahead of 1Q14 AB InBev • Revenue +10.7% • Beer volumes +0.4%, non-beer volumes -2.2% • Beer market share flat at 67.5% • Beer revenue per hectoliter growth +11.0% • CSD market share +50 bps to 18.8%, led by Guaraná Antarctica Black •
Slide 13: Brazil Commercial Focus
BRAZIL Commercial Focus • Core brands take leading role in Carnival celebrations • Premiumization trend continues • Very strong Budweiser volume growth • CSD, non-alcohol beer and near beer innovations © AB InBev 2015 – All rights reserved 13
Slide 14: China – 1Q15 summary
China – 1Q15 summary FY14 1Q15 4.7% Industry • Beer industry volumes down ~2% 1.6% AB InBev • Revenue +15.3% Approx. -2% Approx. -4% • Beer volume +4.7% ABI Volumes Industry Volumes Source: Internal estimates • Focus Brands +10.3%, led by Budweiser and Harbin • Organic market share growth of approxi
Slide 15: China Focus Brands +10.3% in 1Q15
China Focus Brands +10.3% in 1Q15 • Budweiser grew double digits • Partnership with Chinese New Year Gala • Chinese New Year celebrations reached • Harbin continues to amplify the NBA over 500 million consumers property © AB InBev 2015 – All rights reserved 15
Slide 16: Organic EBITDA increase of $429M (+11.1%) in 1Q15
Organic EBITDA increase of $429M (+11.1%) in 1Q15 USD millions 1,600 1,381 AB InBev margin 1,400 1,267 expansion of 170 bps to 38.0% in 1Q15 1,200 1,000 800 600 417 417 400 340 200 154 0 North America Latin America North Mexico Latin America South Asia Pacific Europe EBITDA Margin 38.3% 50.9% 46.8%
Slide 17: Highlights from our other markets – 1Q15
Highlights from our other markets – 1Q15 • In Argentina, volumes declined by low single digits. MixxTail continues to exceed expectations • Share gains in Belgium driven by Jupiler • In Canada, our beer volumes increased low single digits. Market share maintained. Corona performing well • In Germany
Slide 18: Normalized EPS increased to $1.40 in 1Q15
Normalized EPS increased to $1.40 in 1Q15, driven by organic EBIT growth and favorable Net Finance Results +0.53 1.40 (0.09) (0.07) USD per share +0.16 0.87 1Q14 EBIT organic Net Finance Taxes & FX/Scope 1Q15 as reported growth Results others as reported © AB InBev 2015 – All rights reserved 18
Slide 19: Net Finance Results of 91m USD in 1Q15
Net Finance Results of 91m USD in 1Q15 Hedge of share Currency results Interest Accretion based payment and Bank fees, taxes, 1Q14 expense expenses programs other hedging costs other 1Q15 +153 +91 -866 +809 -37 USD millions 1Q15 +757 1Q14 -52 Swing +809 +33 -1 1Q15 Net Finance Result driven by: • Po
Slide 20: Normalized Effective Tax Rate (ETR)
Normalized Effective Tax Rate (ETR) 2015 guidance range of 22-24% 18.8% 18.8% 18.0% 2014 1Q14 1Q15 2015 Decrease in normalized ETR in 1Q15 mainly due to: • Gain linked to the hedging of our share-based payment programs Guidance for FY15 reflects an increase versus FY14 mainly due to: • Lower deducti
Slide 21: Capital Allocation objectives
Capital Allocation objectives • Investment in organic growth of the business • Selective M&A, strict financial discipline • Dividend yield comparable with other consumer goods companies (3% - 4%) • Optimal capital structure of approximately 2x Net Debt/EBITDA • At a level of around 2x, the return of
Slide 22: Q&A
Q &A