Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Interbrew — Merger or Acquisition (September 2003)
20 slides from Anheuser-busch Inbev Sa/nv's merger presentation, Sep 18, 2003
Slide 1: Strategic Partnership with Spaten
Strategic Partnership with Spaten Creating Germany’s Leading Branded-Beer Business 18 September 2003
Slide 2: Compelling Strategic Fit
Compelling Strategic Fit John F. Brock Chief Executive Officer of Interbrew S.A. 1
Slide 3: Strategic Rationale
Strategic Rationale Creation of the #1 branded-beer position in a highly strategic market 11% share of total market Only player with Balanced portfolio of outstanding brands across all segments and True national coverage Enter the high-growth Weissbier national specialty segment with leading Franzis
Slide 4: Consistent Strategy – now the fourth step
Consistent Strategy – now the fourth step Market Shares in Germany - 2002 % 12% 10.9% 10% 9.3% 2.9% 8% 8.0% 7.8% 7.2% 6% 5.5% 4.9% 4.7% 4.1% 4% 8.0% 3.6% 2.9% 2% 0% Interbrew & BHI / Brau & Spaten Holsten Spaten Paulaner Brunnen Radeberger Warsteiner Oettinger Interbrew Bitburger Krombacher Total Pr
Slide 5: Spaten – the leading brewer in South Germany
Spaten – the leading brewer in South Germany Origins date back to 1363; Interbrew’s to 1366 Leading brands Premium brand Franziskaner – one of three national Weissbier Spaten and Löwenbräu – two leading Bavarian “Helles” lager Dinkelacker and Schwaben Bräu – leading lager and specialty in Baden-Würt
Slide 6: Franziskaner – driver for organic growth
Franziskaner – driver for organic growth Output Development Jan – June 2003 Attractive Weissbier segment CAGR ’98-’02 6.4 m hl (6% of the total German Franziskaner Franziskaner +6.2% 8.0% market) Krombacher Krombacher 7.4% Segment growth of +2.9% CAGR ’98-’02 Radeberger Radeberger 6.5% Hasseröder Ha
Slide 7: Excellent Portfolio Fit
Excellent Portfolio Fit South & Ruhr & North Bavaria Centre West East National Premium Lager National Specialties (Weissbier) Leading brand in each key National segment Core Lager Improved top-line growth Regional prospects Core Lager Market leader Regional Specialties Beer Mix 6
Slide 8: Enhanced Footprint and Route to Market
Enhanced Footprint and Route to Market Sole German brewer with national presence Bremen Cross-selling potential Franziskaner in Northern Germany Hanover Wernigerode Brunswick Beck’s and Hasseröder in Bavaria and Düsseldorf / Issum Baden-Württemberg Zwickau Complete regional coverage, including 1,200
Slide 9: Spaten – a change of strategic direction
Spaten – a change of strategic direction Spaten to increasingly focus on real estate in future Spaten seeking a new best owner for its beer business Transaction supported by family shareholders Spaten: Sedlmayr; Haindl; von Finck Dinkelacker: Dinkelacker; Leicht Structure aligning all interests and
Slide 10: Transaction Structure & Financial Impact
Transaction Structure & Financial Impact Gauthier de Biolley Senior Vice President, Business Development & External Growth Strategy 9
Slide 11: Transaction Structure
Transaction Structure Spaten structure Spaten owns 100% of Spaten-Franziskaner and Löwenbräu Spaten owns 70% of Dinkelacker Dinkelacker owns 75% of Dinkelacker-Schwaben Bräu; 25% owned by Leicht family Spaten and Dinkelacker are quoted companies with small free float Transaction Summary Spaten to sp
Slide 12: Transaction Structure (cont’d)
Transaction Structure (cont’d) Transaction conditional upon anti-trust approvals, registration of spin-off, and AGM approvals from both Spaten and Dinkelacker Closing expected for 2H / 2004 Interbrew to acquire up to 100,000 shares (up to 29%) of the limited share capital of Spaten from Sedlmayr Tre
Slide 13: Financial Terms
Financial Terms Combined transaction value of up to € 533 million Includes performance-related payment of up to € 56 million in cash Equity value of up to € 578 million including net cash position of € 45 million Transaction value excluding performance-related payment of € 477 million Spaten-Franzis
Slide 14: Valuation Parameters
Valuation Parameters Valuation Ratios (FY 2003E)(1) EV / Hl € 98 EV / EBITDA 8.9x Assuming full payout of performance-related payment, EV / 2004E EBITDA before synergies expected to be at comparable level Transaction expected to enhance cash EPS from year one ROIC expected to exceed WACC in year thr
Slide 15: Key Synergies Identified
Key Synergies Identified Franziskaner Domestic 200K hl Volume Growth Export (Franziskaner, Löwenbräu, Spaten) 100K hl (2007) Beck’s & Hasseröder (Bavaria & Baden-Wuerttemberg) 80K hl Brewing Best Practice €5m p.a. Key Cost Procurement EBITDA Savings uplift from Logistics 2007 on 14
Slide 16: Four Steps – scale at a reasonable valuation
Four Steps – scale at a reasonable valuation Net Paid 135 1,712 (102)(1) 475(2) 477 (3) 2,697 € million 54 (4) 269 55 164 2002 Nienburger Glas 24 EBITDA Soft drinks 29 (24) € million Beer 111 20 Diebels Beck's Disposals Gilde Spaten Germany EBITDA 10.0x 6.7x 11.8x 8.6x 8.9x Multiple (1) Disposals in
Slide 17: The World’s Local Brewer© in Germany
The World’s Local Brewer© in Germany 16
Slide 18: Appendix
THE WorLD's LOCAL BREWER® Appendix Q @e@ B Dinketacker-SCHWABEN BRAU ‘Sparen QWFWARAL HCLIPP
Slide 19: Interbrew Acquisition Criteria – Spaten
Interbrew Acquisition Criteria – Spaten 1. Strategic Assessment Attractiveness of market Germany: third-largest global beer-market, consolidating Reinforcement of existing positions Perfect fit with existing portfolio and geographies Achievement of critical mass Market share increase from 8.0% to 10
Slide 20: Interbrew Acquisition Criteria – Spaten (cont’d)
Interbrew Acquisition Criteria – Spaten (cont’d) 3. Financial Parameters EV / 2003E EBITDA 8.9x EV / 2003E Volume (hl) € 98 Earnings Accretion Year one (cash); year three (book) ROIC > WACC From year three 4. Transaction Assessment Partner approval expected AGM approval Next steps to closing Regulat