Slide 1: Full year and fourth quarter 2020 results
Full year and fourth quarter 2020 results 25 FEBRUARY 2021
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: Bringing people together for a better world
Bringing people together for a better world © AB InBev 2021 – All rights reserved | 3
Slide 4: Successfully navigating a complex environment with a customer and consumer-centric approach
Successfully navigating a complex environment with a customer and consumer-centric approach, supported by our long-term fundamental strengths Clear commercial strategy Best-in-class brand portfolio Digitizing customer and enhanced by innovation consumer relationships 3. Close gap 2. Growth 4. Toolki
Slide 5: Responding with resilience
Responding with resilience Leading the way in supporting the fight against the COVID-19 pandemic and doing our part for the economic recovery • Donating millions of units of hand sanitizer in >20 countries • Donated emergency drinking water in >10 countries • Mobilized fleets of trucks to deliver es
Slide 6: Agenda
Agenda 4Q20 & FY20 results Commercial strategy: year in review Better World Financials Q&A © AB InBev 2021 – All rights reserved | 6
Slide 7: 4Q20 & FY20 results
4Q20 & FY20 results © AB InBev 2021 – All rights reserved | 7
Slide 8: 4Q20 financial summary
4Q20 & FY20 RESULTS 4Q20 financial summary Total volumes +1.6% Own beer +1.8 % and Non-beer +1.7 % Total revenue +4.5 % Revenue per hl +2.7 % EBITDA -2.4% EBITDA margin contracted by 261 bps to 39.7 % Normalized EPS increased from $0.48 to $1.08 Underlying EPS decreased from $0.87 to $0.81 © AB InBe
Slide 9: FY20 financial summary
4Q20 & FY20 RESULTS FY20 financial summary 1.8% Total volumes -5.7% Volume Own beer -5.8% and non-beer -3.8% -13.4% Total revenue -3.7% 1H20 2H20 Revenue per hl +2.1% 4.4% Revenue EBITDA -12.9% EBITDA margin contracted by 382 bps to 36.9% -12.0% Normalized EPS decreased from $4.08 to $1.91 1H20 2H20
Slide 10: FY20 key market takeaways
4Q20 & FY20 RESULTS FY20 key market takeaways US Europe Top-line growth and consistent market share trend Market share gains across most markets, though improvement driven by successful execution of performance impacted by ongoing COVID-19-related commercial strategy restrictions Mexico South Africa
Slide 11: Global brand portfolio
4Q20 & FY20 RESULTS Global brand portfolio Global brands returned to growth in 2H20 with total revenue +4.2% and revenue outside of home markets +4.7% +5.8% +6.4% +1.2% 2H20 revenue 2H20 revenue 2H20 revenue outside the US outside Belgium outside Mexico Growth in 2H20 led by Double-digit growth in 2
Slide 12: Commercial strategy: year in review
Commercial strategy: year in review © AB InBev 2021 – All rights reserved | 12
Slide 13: As markets mature, consumer needs & occasions evolve, leading to a fragmentation of choices
COMMERCIAL STRATEGY: YEAR IN REVIEW As markets mature, consumer needs & occasions evolve, leading to a fragmentation of choices and requiring a portfolio approach Early Maturity Mid Maturity Late Maturity Category development “Accept” “Formalize” “Socialize” “Routinize” “Sophisticate” objectives: 35
Slide 14: Building a superior portfolio with the category expansion framework
COMMERCIAL STRATEGY: YEAR IN REVIEW Building a superior portfolio with the category expansion framework Premiumization We are the largest premium brewer in the world, gaining market share for 3 years in a row Adjacencies Wheat & Lager Other beer Adjacencies Seltzer, RTD, Flavored Beer Styles Mixed S
Slide 15: Scaling digital commerce to create value for customers & consumers
COMMERCIAL STRATEGY: DIGITAL COMMERCE Scaling digital commerce to create value for customers & consumers Digitizing customer Investments in direct-to-consumer Finding new ways for our brands relationships e-commerce platforms paying off to connect with consumers © AB InBev 2021 – All rights reserved
Slide 16: BEES combines our global reach and footprint with digital capabilities
COMMERCIAL STRATEGY: DIGITAL COMMERCE (B2B) BEES combines our global reach and footprint with Our global reach & Our digital capabilities digital capabilities footprint & connectivity Algorithmic segmentation / selling Digital communications Digital logistics © AB InBev 2021 – All rights reserved |
Slide 17: The results are powerful
COMMERCIAL STRATEGY: DIGITAL COMMERCE (B2B) The results are powerful Elevating our customer Revenue rapidly accelerating Increase in user adoption and relationships with strong throughout the year usage across our footprint positive feedback 2020 GMV1 Monthly active Platform is NPS score: captured t
Slide 18: Leading the way in e-commerce beer sales
COMMERCIAL STRATEGY: DIGITAL COMMERCE (DTC) Leading the way in e-commerce beer sales Our 20+ proprietary DTC e-commerce ventures offer Zé Delivery now present in all Brazilian states, and we convenience and provide valuable data launched the courier model in 7 additional markets 9.5x growth in order
Slide 19: 350 concerts and 678 million views in only 12 weeks
COMMERCIAL STRATEGY: DIGITAL COMMERCE (DTC) Our in-house marketing agency, draftLine® , is finding innovative ways for our brands to connect with consumers at home Our “Lives” concert series in Brazil delivered over 350 concerts and 678 million views in only 12 weeks activated by © AB InBev 2021 – A
Slide 20: Better World
Better World © AB InBev 2021 – All rights reserved | 20
Slide 21: We are committed to meaningfully reducing the harmful consumption of alcohol
BETTER WORLD We are committed to meaningfully reducing the harmful consumption of alcohol Our global voluntary labeling initiative, the largest in the world1, We developed a methodology based on data management aims to place a Smart Drinking guidance label on beer products in routines to improve roa
Slide 22: 2025 Sustainability Goals
BETTER WORLD 2025 Sustainability Goals Smart Agriculture Water Stewardship Circular Packaging Climate Action 100% of our electricity will come 100% of our direct farmers 100% of our communities in high 100% of our products will be in from renewable sources & 25% will be skilled, connected stress are
Slide 23: 2025 Sustainability Goals: Smart Agriculture and Water Stewardship
BETTER WORLD 2025 Sustainability Goals We work with more than 20 000 farmers in 13 countries. 78% of our sites located in high water stress areas To date, 76% of our direct farmers are skilled, 57% are have started implementing solutions to improve water connected and 60% are financially empowered a
Slide 24: 2025 Sustainability Goals: Circular Packaging and Climate Action
BETTER WORLD 2025 Sustainability Goals More than 74% of our volume is in majority recycled content To date, we have decarbonized over 10% from 2017 baseline or returnable packaging as we champion a circular economy and have contracted 70% of our renewable electricity volume Circular Climate Packagin
Slide 25: Collaborating with innovators to achieve our sustainability goals
BETTER WORLD Collaborating with innovators to achieve our sustainability goals Our 100+ Accelerator has worked with 36 startups in 16 countries since launching in 2018 In 2020, we launched our second cohort and concluded the pilots with a virtual demo day that drew close to 400 participants across t
Slide 26: Successfully signed a new 10.1 billion USD sustainable-linked revolving credit facility
BETTER WORLD Successfully signed a new 10.1 billion USD sustainable-linked revolving credit facility • Replaces our current 9 billion USD RCF, supported by 26 world-leading banks, with an initial 5-year term • Pricing mechanism incentivizing four key performance metrics, aligned with our 2025 Sustai
Slide 27: Financials
Financials © AB InBev 2021 – All rights reserved | 27
Slide 28: Underlying EPS decreased from $3.63 in FY19 to $2.51 in FY20
FINANCIALS Underlying EPS decreased from $3.63 in FY19 to $2.51 in FY20 3.63 +$0.16 impact from FY20 Brazil tax credits -1.93 2.51 0.17 0.36 0.27 0.02 FY19 Normalized EBIT Hyperinflation Net finance cost Income tax expense Associates & FY20 impacts in non-controlling normalized EBIT interest © AB In
Slide 29: Liability management initiatives to further de-risk our balance sheet
FINANCIALS We undertook a series of liability management initiatives to further de-risk our balance sheet Proactively managing our debt Evaluating opportunities to drive Enhancing our strong liquidity portfolio, further reducing risk long-term growth and value creation position as we navigate uncert
Slide 30: Bond maturity profile
FINANCIALS Bond maturity profile Well-distributed due to our proactive liability management 14000 12000 Since 31 December 2020, we successfully redeemed ~ 3.3 billion USD of 10000 short-term debt 8000 6000 4000 2000 0 Remaining debt Debt redeemed since 31 December 2020 Note: Represents full bond por
Slide 31: Our bond portfolio is largely protected against interest rate volatility
FINANCIALS Our bond portfolio is largely protected against interest rate volatility, with long-weighted average maturity and no financial covenants Addressed upcoming 96% of our bond Diverse currency mix Very manageable maturities to eliminate near-term portfolio is fixed rate reduces risk pre-tax c
Slide 32: Capital allocation priorities
FINANCIALS Capital allocation priorities Our optimal capital structure calls for a Net Debt/EBITDA ratio of approximately 2x 1 Organic growth Investing in the organic growth of our business Deleveraging 2 Deleveraging to around the 2x level remains our commitment Selective M&A 3 Non-organic, externa
Slide 33: Q&A
Q&A © AB InBev 2021 – All rights reserved | 33
Slide 34: Thank you
Thank you