Anheuser-Busch InBev SA/NV · EURONEXT:ABI

Anheuser-Busch InBev SA/NV — SABMiller — Investor Presentation (March 2015)

51 slides from Anheuser-Busch InBev SA/NV's investor presentation, March 2015

  1. Slide 1: Investor Luncheon

    Investor Luncheon Gary Leibowitz SVP, Internal & Investor Engagement SABMiller plc

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements 1

  3. Slide 3: MillerCoors is important to SABMiller, financially and commercially

    MillerCoors is important to SABMiller, financially and commercially Total volumes (318 mHL)*1 Group NPR ($26.7 bn)1 Group EBITA ($6.4 bn)1 27% 28% 30% 22% 19% 15% 13% 22% 12% 34% 13% 18% 18% 17% 11% Africa Latin America Europe North America* Asia Pacific 1. As at 31 March 2014; *Excludes contract br

  4. Slide 4: Tom Long

    © MillerCoors Tom Long CEO, MillerCoors

  5. Slide 5: Becoming a Stronger, More Competitive Brewer

    Becoming a Stronger, More Competitive Brewer Portfolio strategy • Renovate, recruit, premiumize • No hard left or right turns in strategies SABMiller IFRS 2008* 2009 2010 2011 2012A 2013B 2014 Underlying EBITA $842.4 $1,033.9 $1,228.3 $1,257.0 $1,291.2 $1,336.9 $1,421.8 Net Producer Revenue $7,437.0

  6. Slide 6: Advancing Our Portfolio Strategy

    Advancing Our Portfolio Strategy 2012 STR 2014 STR Volume Net Rev. Net Rev. Volume 7% 10% 15% 10% 57% 61% 59% 56% 5% 5% 4% 5% 31% 24% 22% 29% Economy American Light Lagers Above Premium Premium Regular 5

  7. Slide 7: American Light Lagers volume trend

    YoY Trend 0% 2% 4% 6% 8% 10% 12% -4% -2% -6% 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 BBLs 1998 1999 2000 2001 YoY Trend 2002 American Light Lagers 2003 2004 American Light Lagers Context 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0 10 20 30 40 50 60 70 80 BB

  8. Slide 8: American Light Lagers Context

    American Light Lagers Context American Light Lagers (YoY Trends) Total American Light Lagers Miller Lite Coors Light 30% 25% 20% 15% 10% 5% 0% -5% -10% 1997 2004 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1998 1999 2000 2001 2002 2003 2005 2006 2007 2008 2009 2010 2011 201

  9. Slide 9: Winning in American Light Lagers: Coors Light

    Winning in American Light Lagers Coors Light • Rocky Mountain Cold Refreshment • Contemporary visual identity 8

  10. Slide 10: Winning in American Light Lagers: Miller Lite

    Winning in American Light Lagers Miller Lite • Improved performance • Authenticity • Quality and taste 9

  11. Slide 11: Winning with Above Premium

    Winning with Above Premium • Since 2008, Blue Moon Brewing Company has grown by 74% and Jacob Leinenkugel Brewing Company by 96% 2,500,000 Volume Growth 2,000,000 1,500,000 Bbl 1,000,000 500,000 - 2009 2010 2011 2012 2013 2014 BMBC JLBC Source: Internal Business Objects Data 10

  12. Slide 12: Blue Moon Brewing Company % Growth vs. YA

    Blue Moon Brewing Company • Total BMBC up 4.1% latest 12 weeks BMBC Portfolio 2010 - 2014 2,100,000 1,900,000 1,700,000 BMBW and BM Seasonals 2010 - YTD 2015 1,500,000 20.0% Bbls 1,300,000 15.0% % Growth vs. YA 1,100,000 10.0% 900,000 5.0% 700,000 0.0% -5.0% 500,000 2010 2011 2012 2013 2014 -10.0% B

  13. Slide 13: Blue Moon Brewing Company

    Blue Moon Brewing Company • Grow with Hispanics through targeted influence programs and beers like Cinnamon Horchata Ale 12

  14. Slide 14: Jacob Leinenkugel Brewing Company

    Jacob Leinenkugel Brewing Company • Total Shandy up 9.7% latest 12 weeks YOY Shandy Portfolio Trends 2010 - 2014 600,000 500,000 400,000 Bbls 300,000 200,000 100,000 - 2010 2011 2012 2013 2014 Summer Shandy Orange Shandy Cran Ginger Shandy Harvest Patch Shandy Grapefruit Shandy Lemon Berry Shandy So

  15. Slide 15: Jacob Leinenkugel Brewing Company

    Jacob Leinenkugel Brewing Company • Flavor Innovation • Drive consumer awareness and trial • Invest in retails tools and programming 14

  16. Slide 16: Economy Beer Trends

    Economy Beer Trends Economy Share (YoY Trends) High Life % Share Chg Economy % Share Chg 6% 4% 2% 0% -2% -4% -6% -8% -10% 1997 1998 1999 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2012 2013 2000 2007 2014 Source: Nielsen 15

  17. Slide 17: Winning with Economy

    Winning with Economy • Innovation that trades consumers up • Simplify • Improve Economy contribution 16

  18. Slide 18: SAB Miller Business Transformation

    SAB Business MILLER Transformation Accelerating our Winning in Beer strategy by improving how we brew, market and sell our brands today and tomorrow. ‘= Find cost savings through existing partnerships te help furd growth * Meke the biggest imoact with our brands and marketing dellars, driving ROL ‘©

  19. Slide 19: David Kroll

    David Kroll Vice President, Marketing MillerCoors

  20. Slide 20: Beer Losing Millennials to Wine and Spirits

    Beer Losing Millennials to Wine and Spirits 60% Beer’s Share of Total Alcohol Servings 58% 56% -9 Points 54% 52% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TBA Servings Distribution Among Consumers Aged 21-34 15 13 30 Beer 48 Wine 72 23 Spirits Generation X - 2000

  21. Slide 21: The LDAC Millennial Boom

    The LDAC Millennial Boom Income Disparity has caused all Generational Values have changed the consumers to feel the squeeze. way that consumers think about brands. Millennials value Passion over Practicality and Quality over Cost. As a result they demand and are willing Bottom 20% to Pay More for qu

  22. Slide 22: Acceleration of Latino and Technology

    Acceleration of Latino and Technology Multicultural Population Growth is Technology is changing the way that evolving our mainstream culture. consumers engage with their brands. 21

  23. Slide 23: "New" is the New Normal in Total Alcohol

    “New” is the New Normal in Total Alcohol 22.0% 18.5% ~3,700 ~2,300 items ~5,300 15.0% ~4,600 items items 10.4% items ~2,200 ~2,100 items items 4.3% 4.6% Beer Wine Spirits Percent of Category Sales $ Percent of Category Items Source: Nielsen Total U.S. All Outlets(Food/Drug/Mass/Liquor/Conv/Club/Doll

  24. Slide 24: Above Premium Leads Growth Across TAB

    Above Premium Leads Growth Across TAB Annual % Growth Rates Category 10.7% High End 9.8% 7.1% 5.2% Share Share Share 3.3% 41% 3.3% 24% 53% Beer Wine Spirits Source: Nielsen Total U.S. All Outlets(Food/Drug/Mass/Liquor/Conv/Club/Dollar/Walmart) 52 week end 01-03-2015 23

  25. Slide 25: Millennials Fueling Growth in Adjacencies

    Millennials Fueling Growth in Adjacencies Total Beer Domestic Generation % Volume Super Import Craft FMB Cider Millennial 25% 119 115 121 241 242 Gen X 34% 98 114 106 81 74 Boomer 39% 91 79 82 28 33 Pre-Boomer 2% 63 64 80 20 26 Source: Behavioral Tracking Study thru Dec-14 24

  26. Slide 26: Scale Matters

    Scale Matters • Craft brands represent 72% of new items, but only 16% of new-item sales • Cider and FMBs are 12% of new items and 27% of sales % of New Items % of New-Item Dollars FMBs 6% Ciders 5% Craft 16% Craft 72% Ciders 6% FMBs 23% *New Items consist of items w/sales > $1,000 in last 2 years co

  27. Slide 27: Transforming the MillerCoors Portfolio

    Transforming the MillerCoors Portfolio Drive Innovation that Shapes the Category • Own scalable styles • Superior quality products • Differentiated and incremental • Target lower competitive intensity A Diversified and Accretive Portfolio Strategy • Expand #1 share in FMBs • Establish #2 position in

  28. Slide 28: FMBs: Driving Category Incrementality

    FMBs: Driving Category Incrementality • MillerCoors has ascended to #1 position in FMBs 40.0 35.0 U.S. FMB Share 30.0 25.0 23% 20.0 15.0 10.0 5.0 0.0 4 WEEKS ENDING 4 WEEKS ENDING 4 WEEKS ENDING 4 WEEKS ENDING 4 WEEKS ENDING 4 WEEKS ENDING 4 WEEKS ENDING 01/26/13 05/18/13 09/07/13 12/28/13 04/19/14

  29. Slide 29: Redd's: Owning Apple with Millennials

    Redd’s: Owning Apple with Millennials • Fastest growing FMB and pulling share from wine and spirits • Opportunity to win with Hispanics with new Redd’s Green Apple Ale Strong Incrementality and Velocity Upside with Latino Drinkers Driving Ownership of Apple Millennial and Latino Share 25% 16% 14% 9%

  30. Slide 30: Redd's Wicked: Sourcing from Spirits

    Redd’s Wicked: Sourcing from Spirits • Incrementally sourcing from wine, spirits and ABI • Stronger velocity and repeat than every Bud Light Rita SKU Higher ABV Fueling FMBs Sourcing Spirit Occasions Extending Multicultural Appeal U.S. FMB Growth 41% Beer Wine & 47% Spirits 13% 53% Higher ABV Standa

  31. Slide 31: Steel Reserve: Trading Up Economy Drinkers

    Steel Reserve: Trading Up Economy Drinkers • Alloy Series #1 Economy FMB with just 2 SKUs • Trading-up Economy beer Sourcing from Value Drinkers Elevating Retail Dollar Ring Extending Multicultural Appeal SRAS Source of Volume 2014 Non-Promo Case Price $23.24 6% + 43% 12% Wine $16.24 46% Spirits Eco

  32. Slide 32: Cider: Building Category Adjacencies

    Cider: Building Category Adjacencies • Cider tracking to become a $3B segment by 2020 • MillerCoors #3 and gaining Cider Category Growth ($M) 3,500 3,000 $ (M) 2,500 2,000 1,500 1,000 500 - '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 Source: TTB Wine Reports & US Commerce Dept. Cider Imports, 2013 &

  33. Slide 33: Smith & Forge: Expanding Cider with Men

    Smith & Forge: Expanding Cider with Men • Achieved #3 brand in Cider with one style and five SKUs • Differentiated positioning among men key to driving momentum #1 Male Cider Outpacing ABI’s J. Appleseed New Pack and Style 38 76% 617 13 pts 21 pts 29 376 Velocity Repeat (CE/TDP) Source: Nielsen: L52

  34. Slide 34: Crispin: Leading High-End Cider

    Crispin: Leading High-End Cider • Crispin positioned to define Cider’s emerging Craft segment • Outpacing Stella Cidre with Fresh Pressed appeal Accelerating Growth Accretive Financials Fueling Pear Cider and Mixology 25% +20% Crispin Cider +41% +13% MillerCoors 0% Volume Velocity 0 Revenue/BBL 400

  35. Slide 35: Expanding Shandy and Flavored Beers

    Expanding Shandy and Flavored Beers • Leinenkugel was the first to bring the Shandy style to the U.S. • Citrus beers and seasonals are accelerating with millennials and women Above Premium Premium Economy 34

  36. Slide 36: Craft: Fueling Blue Moon-Style Leadership

    Craft: Fueling Blue Moon-Style Leadership • Blue Moon leading craft brand with 77 quarters of consecutive growth • Opportunity to pull Latinos into Craft and extend Belgian wheat style 20 Years On and Going Strong Tapping into Hispanic Drinkers Differentiating the Hottest Style Top 5 Craft Brand Sha

  37. Slide 37: Emerging: Unlocking Gluten-Free Beer

    Emerging: Unlocking Gluten-Free Beer • Coors Peak is the world’s first great tasting, naturally gluten-free beer • Scaling GF beer has the potential to bring lost drinkers back to beer Exploding $9B Food Segment 10% of Drinkers Now Living GF 100% Naturally Gluten-Free 20 Reasons for Eating Gluten-Fr

  38. Slide 38: Elevating the MillerCoors Portfolio with Scale

    Elevating the MillerCoors Portfolio with Scale • MillerCoors is delivering on innovation that scales and sticks • Above Premium NPR mix up +6 points over past 5 years and accelerating 30% New Volume via 2% of Items MC Outpacing ABI in Above Premium Elevating Above Premium Mix % New Brand Volume AP S

  39. Slide 39: Kevin Doyle

    Kevin Doyle Chief Commercial Solutions Officer MillerCoors

  40. Slide 40: MillerCoors Chain Team

    MillerCoors Chain Team • Nearly 44% of the business…+7% since 2008 • Leading Above Premium growth; 53% of Above Premium sales for MillerCoors • $3.5 billion in revenue • Grew category partnership from 24% in 2008 to 50% in YTD 2015 • #1 Chain sales team in U.S. beer business four years running • #1

  41. Slide 41: The MillerCoors Advantage

    The MillerCoors Advantage MillerCoors Advantage Bundle of goods and services we provide our retailers to grow the size and value of our retailers’ beer category, while gaining disproportionate share of growth Five things we will be famous for: 1. The Selling Way 2. Space and Assortment 3. Profitable

  42. Slide 42: Winning at Retail

    Winning at Retail • Bring Killer Insights to support category growth solutions • Listen to and understand unique Retailer Needs • Align with Retailer Strategies and Plans • Be a highly Collaborative, Cohesive Partner 41

  43. Slide 43: Killer Insights in Convenience

    Killer Insights in Convenience • Singles strategy with killer insights 42

  44. Slide 44: Winning through "Building with Beer"

    Winning through “Building with Beer” 43

  45. Slide 45: Listening to Walgreens

    Listening to Walgreens 44

  46. Slide 46: Aligned to Walmart Strategies

    Aligned to Walmart Strategies Unique American Light Lager Innovation Packages 45

  47. Slide 47: Collaborating in Grocery

    zal GET GRILLIN’ WITH GUY FIERI. over 70 © MillerCoors: % a ) GET GRILLIN’ WITH GUY FIERI. 46

  48. Slide 48: Looking Ahead

    Looking Ahead SMP Coverage Field Marketing 47

  49. Slide 49: © iillerCoors

    © iillerCoors

  50. Slide 50: Medium-Term Guidance

    Medium-Term Guidance Approximate 3- to 4-year CAGR ranges Volume • Flat to -1% Revenue per barrel • +2-4% EBITA margin • +30−60 bps average per year (subject to volume trends) 49

  51. Slide 51: © iillerCoors

    © iillerCoors

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