Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Q3 2015 Earnings Presentation
25 slides from Anheuser-Busch InBev SA/NV's earnings presentation, Oct 30, 2015
Slide 1: Third Quarter 2015 Results
Third Quarter 2015 Results 30 October 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: Highlights of the quarter
Highlights of the quarter • Solid EBITDA growth driven by robust top line performance • Great performance of our Global Brands • In the US, while market share remains under pressure, our increased investments are driving results • Great result in Mexico driven by our Focus Brands • Solid revenue gro
Slide 4: 3Q15 Summary
3Q15 Summary • Total Revenue +7.9% – Revenue per hl +6.3% and +7.8% on a constant geographic basis • Total Volumes +1.5% – Own beer +2.3% – Focus Brands +2.9% and Global Brands +11.5% • EBITDA +9.6% – EBITDA margin +58 bps to 38.7% • Normalized EPS of $1.02 versus $1.42 in 3Q14 – Good organic growth
Slide 5: Global Brand volumes +11.5% in 3Q15
Global Brand volumes +11.5% in 3Q15 Budweiser p +11.5% • Good performances in China, Russia and the UK and the US p Stella Artois p Corona +12.9% +11.1% • Driven by great • Driven by growth in performances in the Mexico and most of UK, US, Canada and our export markets Argentina © AB InBev 2015 – Al
Slide 6: Global Brand revenues +15.9% in 3Q15
Global Brand revenues +15.9% in 3Q15 • Growth in Global Brand revenues has accelerated in 3Q15 18.0% 15.9% 16.0% 14.0% 12.5% 12.0% 11.5% 10.7% 10.0% 8.0% 7.6% 6.0% 5.6% 4.0% 2.0% 0.0% HY15 3Q15 9M15 Global Brand Volumes Global Brand Revenues © AB InBev 2015 – All rights reserved 6
Slide 7: US – 3Q15 summary
US – 3Q15 summary Industry • STRs essentially flat • Expect industry to improve in FY15 AB InBev • STRs -2.1%, due mainly to share loss • Market share decline of 90 bps driven by a difficult comparable • Shipments (STWs) +1.2% • Revenue +2.8% • Beer revenue per hectoliter +1.5% • EBITDA +3.1% with m
Slide 8: US Scorecard
US Scorecard What is working Further work needed Industry flat in 3Q15 Bud Light Budweiser Rita’s Family Bud Light Lime Mexican imports Michelob Ultra Stella Artois Craft strategy and Goose Island On Premise share Value brands share of segment © AB InBev 2015 – All rights reserved 8
Slide 9: Bud Light
Bud Light • STRs down low single digits for 3Q15 and 9M15 • Result driven by difficult comp – In 3Q14, Bud Light lost only 30 bps of share, and gained 1 full share point of the premium light segment • Market share down 45 bps in 3Q15, and 35 bps in 9M15 • Brand health metrics for Bud Light are being
Slide 10: Budweiser – great momentum continues
Budweiser – great momentum continues • Performance driven by successful campaigns emphasizing the brand’s quality and heritage credentials • Share down only 15 bps in 3Q15 & 9M15 © AB InBev 2015 – All rights reserved Note: Share based on internal estimates (STRs) 10
Slide 11: Healthy Growth in Above Premium
Healthy Growth in Above Premium • Above Premium brands grew 30 bps of market share in 3Q15 and 9M15 • Michelob Ultra growth particularly robust – fastest growing brand in the market by absolute volume • Double digit growth from Stella Artois and Goose Island • Goose Island IPA up 150% YTD • Craft st
Slide 12: Mexico – 3Q15 summary
Mexico – 3Q15 summary Industry • Beer category healthy • Good volume growth in all regions of the country • Beer continues to gain share of alcohol AB InBev • Revenue +14.2% • Volume +11.5% with strong contribution from Focus Brands • Revenue per hectoliter growth of +2.3% • Cost synergy delivery of
Slide 13: Mexico Focus Brands volume +12.2%
Mexico Focus Brands volume +12.2% • Focus Brands • Over 90% of our total volumes • Continue to grow ahead of the total portfolio • Corona, Bud Light and Victoria were all particularly strong © AB InBev 2015 – All rights reserved 13
Slide 14: Brazil – 3Q15 summary
Brazil – 3Q15 summary Industry • Beer volumes benefitted from favorable weather and an easy comparable versus 3Q14 AB InBev • Revenue +10.5% • Total volumes +1.0%, with beer volumes +3.5% • Beer market share at 67.8%, up compared to last quarter • Beer revenue per hectoliter growth +10.0% • EBITDA g
Slide 15: Brazil – Clear strategic focus
Brazil – Clear strategic focus Elevate Accelerate Seed the Core Premium Near Beer Antarctica Corona Bottle Can Skol Ultra Stella Artois Skol Beats Senses © AB InBev 2015 – All rights reserved 15
Slide 16: China – 3Q15 summary
China – 3Q15 summary Industry • Beer industry volumes down approximately 7% in 3Q15, driven by poor weather and economic headwinds AB InBev • Revenue +6.6% • Beer volume -1.3% • Focus Brands marginally ahead, with Budweiser growing double digits • Market share growth of 104 bps to 18.7% • Revenue pe
Slide 17: Looking beyond averages in China
Looking beyond averages in China Clear winning strategy based on: Channels • Geographies: Focus on fastest growing provinces • Channels: Win in the fastest growing channels • Segments: Lead the way in Core+, Premium, Super Premium Segments Geographies % of volume by segment Super-Premium 0.2% 0.2% 1
Slide 18: Budweiser and Harbin leading the way in China
Budweiser and Harbin leading the way in China • Budweiser grew double digits • Collaboration with leading artists and strong execution of Electronic Dance Music festivals • New campaign has been very popular • The new Music Video released by Harbin Ice became a hit song on Chinese music charts © AB
Slide 19: Organic EBITDA +$445M (+9.6%) in 3Q15
Organic EBITDA +$445M (+9.6%) in 3Q15 USD millions 6,000 AB InBev margin expansion of 58 bps 5,000 4,772 to 38.7% in 3Q15 4,000 3,217 3,000 2,000 1,734 1,499 1,047 1,172 1,032 1,000 843 513 410 351 344 0 NA LAN Mex APAC LAS EUR 3Q15 9M15 3Q15 EBITDA Margin 40.9% 49.3% 51.7% 25.4% 45.5% 30.6% 3Q15 Ma
Slide 20: Normalized EPS of $1.02 in 3Q15 vs $1.42 in 3Q14
Normalized EPS of $1.02 in 3Q15 vs $1.42 in 3Q14 +0.21 1.42 USD per share (0.27) (0.06) (0.22) 1.02 (0.06) 3Q14 EBIT organic Net Finance Taxes & FX Scope 3Q15 as reported growth Results others as reported © AB InBev 2015 – All rights reserved 20
Slide 21: Net Finance Results of -810m USD in 3Q15
Net Finance Results of -810m USD in 3Q15 Net interest on Hedge of share Currency and Bank fees, Interest net defined Accretion based payment other hedging transaction taxes, 3Q14 expense benefit liabilities expenses programs result other 3Q15 +39 +8 USD millions -15 -366 3Q15 -585 +268 3Q14 144 -15
Slide 22: Normalized Effective Tax Rate (ETR)
Normalized Effective Tax Rate (ETR) 2015 26.8% guidance range from 20 - 22% 20.5% 22% 19.7% 20% 3Q14 3Q15 9M15 2015 • Normalized ETR in 3Q15 negatively impacted by the non-deductible nature of the $585 million loss linked to the hedging of our share-based payment programs • Guidance for FY15 reflect
Slide 23: Interim dividend of €1.60 per share
Interim dividend of €1.60 per share 3.00 DIVIDEND PER SHARE (EUR) 2.05 1.70 1.20 0.80 1.60 0.38 0.28 1.00 0.60 Fiscal Years 2008 2009 2010 2011 2012 2013 2014 2015 © AB InBev 2015 – All rights reserved 23
Slide 24: 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 25: Q &A
Q &A