Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Day (2015)
23 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2015
Slide 1: Felipe Dutra, Chief Finance & Technology Officer
Felipe Dutra Chief Finance & Technology Officer
Slide 2: Agenda
Agenda Financial Performance • Role of Financial Discipline in our business model • Risk management: Balancing deleveraging with returning cash to shareholders Technology driving topline growth © AB InBev 2015 – All rights reserved 2
Slide 3: Financial Performance
Financial Performance © AB InBev 2015 – All rights reserved 3
Slide 4: Financial Discipline and a focus on cash generation has driven value creation
Financial Discipline and a focus on cash generation, has driven value creation for our shareholders Leadership Markets Brands Financial Discipline •Focus on a few •Focus markets •Focus Brands •Focus on Cash Generation big things •Largest profit pools •Brand health today = top •Cost efficiency, with
Slide 5: Cash Flow from Operations as % of Sales
ABI has driven topline growth and increased efficiency over the years, resulting in healthy EBITDA margin expansion and Cash Flow Generation…. 40% = Cash Flow from Operations (billions USD) Cash Flow from Operations as % of Sales AB-InBev 35% 30% $ 14.1 Reckitt Benckiser Heineken 25% $ 3.3 $ 10.6 Co
Slide 6: Big Transformational Ideas: zero organic growth in overhead
…. and we continue to see opportunities to drive efficiencies, leading towards zero organic growth in overhead ZBB Quick Wins Fixed Costs Growth as a % of Inflation “Back to Basics” (excluding Synergies & Scopes) Global Chart Of 100% Accounts 94% Benchmark 90% Big Transformational Ideas Review of Po
Slide 7: Core Working Capital as % of Net Revenues
There is still room to improve our CWC performance to further drive cash flow for reinvestment into top-line growth Core Working Capital (CWC) as a % of Net Revenues (1) 4% 2.1% 2% CWC/ Net Revenues (12 months) 0% -0.6% -2% -4% -6% -5.4% -8% -7.4% -8.5% -10% -10.0% -12% -11.0% 2008 2009 2010 2011 20
Slide 8: Holistic debt management approach considers cash flow generation in different currencies
Holistic debt management approach considers cash flow generation in different currencies, as well as real life constraints Absolute size of our debt portfolio requires us to concentrate our funding in the largest markets, namely USD and EUR FY14 Cash Flow Breakdown by Currency Debt Market Depth and
Slide 9: EUR liabilities have been a good hedge for offsetting BRL translation impact
As a result our EUR liabilities have been a good hedge for offsetting BRL translation impact over the long run EUR market is not only significantly cheaper than BRL but also a much deeper market for loans and bonds Relative cost EUR loan BRL loan PERIOD (pos = BRL m ore e xpe ns ive ) interest FX al
Slide 10: Holistic Risk Management and Core Working Capital Management offset FX Volatility
The Holistic Risk Management combined with strong Core Working Capital Management have been able to offset the majority of recent FX Volatility versus USD 8,731 (277) (967) 636 8,123 (USD million) EBITDA Organic +7.6% Nominal -7.0% HY2014 Scope Currency Organic HY2015 4,721 (262) 4,714 156 99 Operat
Slide 11: Healthy debt maturity profile balancing currency, cash flow and liquidity
The outcome is a healthy debt maturity profile balancing currency, cash flow generation and capital market liquidity…. We have further optimized our debt maturity profile, having used the bond market to extend duration and manage refinancing risk Debt Maturity Profile $16,000 $15,000 $14,000 FY 2014
Slide 12: Balancing deleveraging with cash returns to shareholders
….which, combined with our risk management policies, has allowed ABI to balance deleveraging with cash returns to shareholders After the AB combination our shareholder structure allowed for the flexibility to reduce our dividend payout in order to meet our 2012 deleveraging commitments Leverage & Di
Slide 13: Clear and consistent Capital Allocation priorities
Our focus on cash generation is accompanied by clear and consistent Capital Allocation priorities • 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 appro
Slide 14: Technology driving topline growth
Technology driving topline growth © AB InBev 2015 – All rights reserved 14
Slide 15: The Technology team: Building platforms to sell and interact with consumers
The Technology team: Building platforms to sell and interact with our consumers, digitalize the relationship with our POCs & retailers and optimize product distribution to the market Management Consumers Global ERP Supplier Relationship Mgmt POCs | Retailers TOPLINE Gateway Supplier Gateway Global E
Slide 16: ABI Ecosystem
ABI Ecosystem Management Consumers Global ERP Supplier Relationship Mgmt POCs | Retailers TOPLINE Gateway Supplier Gateway Global Export Connected ZBB Next Generation POC Supplier Analytics & Insights Distributors Risk Management People Transformation All Mobile Consumer 1to1 Employee Operational Ex
Slide 17: B2C: Building solutions to secure our position as e-retailers and couriers
B2C: Building out solutions to secure our position as e-retailers and couriers as we develop proprietary B2C platforms What? Reasons to Believe Scale Up 1 Experience at Home 2 330 ml bottle Stella Artois 4.8% 3 CHOOSE A PACK SIZE > • 3 main E-commerce • Mexico: own platform • E-retailers: optimize d
Slide 18: B2B: Building a global platform to digitalize our relationship with POCs
B2B: Building a global platform which will ‘digitalize’ our relationship with POCs, enhancing sales force productivity and transferring certain activities to the POC What? Reasons to Believe Scale Up Product Delivery Ordering tracking POC Material Continuous Replenishment POS Integration • B2B solut
Slide 19: Mobile: Sales force productivity and the sales rep of the future
Mobile: Sales forces are becoming more segmented and specialized. Mobile technology will drive sales productivity improvements and support the “sales rep of the future” focus on high value-added activities What? Reasons to Believe Scale Up Find POCs on the go Self Assessed POC Mapping Digital image
Slide 20: Connected POC: Connecting touch points to improve the beer experience
Connected POC: Connect touch points in a POC with our products, our consumers and other stakeholders to improve the beer experience and collect all valuable insights Bud KTV is an example of the connected POC potential in our Chinese market KTV APP Select Music Order beer Experience ©AB InBev 2015 –
Slide 21: ABI Ecosystem
ABI Ecosystem Management Consumers Global ERP Supplier Relationship Mgmt POCs | Retailers TOPLINE Gateway Supplier Gateway Global Export Connected ZBB Next Generation POC Supplier Analytics & Insights Distributors Risk Management People Transformation All Mobile Consumer 1to1 Employee Operational Ex
Slide 22: Stepping up Analytics & Insights
Stepping up Analytics & Insights: focusing on understanding our consumers, brand, SKU and customer profitability and mix management and building diagnostic, predictive and prescriptive insights What? Reasons to Believe Scale Up Bangalore Analytics • Create one single source of • Consumer Insights pl
Slide 23: Summary
Summary • We are building platforms to sell and interact with our consumers, digitalize the relationship with our POCs & retailers and optimize product distribution to the market • We are using B2C, B2B, Mobile and Connected POC concepts to drive top line growth • Our analytics capabilities are evol