Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Q2 2019 Earnings Presentation
26 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Jul 25, 2019
Slide 1: Second Quarter 2019 Results
Second Quarter 2019 Results 25 July 2019 © AB InBev 2019 – All rights reserved
Slide 2: Legal Disclaimers
Legal Disclaimers 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
Slide 3: Agenda
➢ 2Q19 Highlights ➢ Regional Update: Middle Americas ➢ Financials ➢ Q&A © AB InBev InBev–2019 © AB2019 All rights reserved – All rights 3 reserved 3 © AB InBev 2019 – All rights reserved 3
Slide 4: Highlights of the quarter
Highlights of the quarter • Best quarterly volume performance in >5 years, driven by many of our key markets including Mexico, Brazil, Europe, South Africa, Nigeria, Australia and Colombia • Solid top-line growth of 6.2% and EBITDA growth of 9.4% with margin expansion of 123 bps to 42.0% • Continued
Slide 5: 2Q19 Financial Summary
2Q19 Financial Summary Total Revenue +6.2% • Revenue per hl +3.8% • Global Brands +8.0%, +11.3% outside of their home markets Total Volumes +2.1% • Own beer +2.2%, non-beer +1.8% EBITDA +9.4% and EBITDA margin expanded by 123 bps to 42.0% Normalized EPS increased by $0.15 from $1.09 in 2Q18 to $1.25
Slide 6: Global Brand Portfolio
Global Brand Portfolio 2Q19 Revenue +8.0% +11.3% outside of home markets 5.6% 12.0% 23.7% 2Q19 Revenue Growth 2Q19 Revenue Growth 2Q19 Revenue Growth outside of the US outside of Belgium outside of Mexico Signed multi-year Grew top-line Corona’s Better World sponsorships with the by double digits ca
Slide 7: We won 20 awards at Cannes Lions 2019
We won 20 awards at Cannes Lions 2019 1 Gold 4 Silver 15 Bronze © AB InBev 2019 – All rights reserved 7
Slide 8: Leveraging consumers' #1 passion point: football
Leveraging consumers’ #1 passion point: football Budweiser Budweiser becomes We activated several brands announces multi-year first official beer across our markets behind Copa sponsorships with the sponsor of the US América, a key cultural Premier League and National Women’s moment for our consumer
Slide 9: We've made significant progress on our Better World agenda
We’ve made significant progress on our Better World agenda We celebrated a milestone in our UNITAR and AB InBev’s Global Partnership for Safer Roads with the launch of an e-learning platform Road Safety toolkit BBBEE We achieved a Broad Based Black Economic Empowerment (BBBEE) Level 3 status in Sout
Slide 10: Major market highlights
Major market highlights US: Revenue and EBITDA growth, with premium portfolio and innovations gaining share Mexico: Double digit volume growth, with market share gains and successful first phases of OXXO roll-out Colombia: Sequential gains in share of total alcohol, with global brands growing >50% B
Slide 11: Regional Update: Middle Americas
Regional Update: Middle Americas © AB InBev 2019 – All rights reserved 11
Slide 12: The Middle Americas region consists of Mexico, Colombia, Peru, Ecuador, Central America and the Caribbean
The Middle Americas region consists of Mexico, Colombia, Peru, Ecuador, Central America and the Caribbean © AB InBev 2019 – All rights reserved 12
Slide 13: Beer category in Mexico has been growing and we've been gaining share
Since our combination with Grupo Modelo, the beer category in Mexico has been growing and we’ve been gaining share We have been focused on growing the beer category by We have been gaining market share, with growth expanding occasions to reach more consumers across all segments of our portfolio >5%
Slide 14: Successful roll-out of our brand portfolio to OXXO locations
Successful roll-out of our brand portfolio to >4 000 OXXO locations • Our brands are prominently displayed with fair share of beer shelf space in the stores where they are currently offered • The next phase of our roll-out will begin in early 2020 © AB InBev 2019 – All rights reserved 14
Slide 15: In Colombia, we've been growing the beer category
In Colombia, we’ve been growing the beer category, with almost 2pp of share of alcohol gains since 2016 Share of Alcohol % Evolution Liters of alcohol equivalent (LAE) 73.5% 72.4% 71.7% 2016 2017 2018 Source: Nielsen © AB InBev 2019 – All rights reserved 15
Slide 16: Leading the development of the premium segment in Colombia
We have been leading the development of the premium segment, with the top two international premium brands in Colombia The Super Premium and Premium segments have Budweiser and Corona are now the top two grown by 68% in the past 3 years international premium brands in the country Super Premium and P
Slide 17: Financials
Financials © AB InBev TITLE PRESENTATION 2019–GOES All rights HEREreserved 2017 17 17
Slide 18: Synergy capture continues
Synergy capture continues • Continue to expect estimated incremental pre-tax synergies of 3.2 billion USD per annum (on a constant currency basis as of August 2016), including the 1.05 billion USD cost and efficiency savings identified by SAB, to be delivered by the end of 2019. These figures do not
Slide 19: Decrease in net finance costs excluding non-recurring items
Decrease in net finance costs excluding non-recurring items driven primarily by the swing in MTM on the share-based payment programs Interest expense Net interest on MTM - share Currency and Bank fees, Hyperinflation 2Q18 including net defined Accretion based payment other hedging transaction moneta
Slide 20: Normalized Effective Tax Rate (ETR)
Normalized Effective Tax Rate (ETR) 27.2% 27.4% 25.9% 26.1% 27% 24.7% 24.6% 25.0% 23.1% 25% 2Q18 2Q18 Restated 2Q19 2Q19 HY18 HY18 Restated HY19 HY19 FY19 Restated ex MTM ex MTM Restated ex MTM ex MTM Guidance* *Reflects our normalized ETR guidance, excluding any gains and losses relating to the hed
Slide 21: Underlying EPS increased from $1.10 to $1.16 in 2Q19
Underlying EPS increased from $1.10 to $1.16 in 2Q19 0.06 0.09 0.00 0.01 1.16 0.09 0.00 1.10 USD 2Q18 Restated Normalized Hyperinflation Net Finance Income Tax Associates and Net Hyperinflation 2Q19 EBIT impact at Costs Expense Non-Controlling Impact in EPS EBIT level Interest Notes: (1) Underlying
Slide 22: Our bond maturity profile is well-distributed
Our bond maturity profile is well-distributed, with no refinancing pressure for the foreseeable future AB InBev Bond Maturity Profile as of 30 June 2019 ($ in millions) $9B RCF Capacity + $8B Cash & Cash Equivalents = $17B Total Liquidity (as of 30 June 2019), far exceeding redemptions in any given
Slide 23: Our debt profile continues to protect us against interest rate and currency risk
Our debt profile continues to protect us against interest rate and currency risk, with longer weighted average maturity Addressed near Diverse currency Very manageable ~91% of our debt is term maturities to mix of our debt pre-tax gross debt fixed rate reduce refinancing reduces risk coupon pressure
Slide 24: Sale of Australian subsidiary to Asahi and potential Budweiser APAC IPO
We have agreed to sell our Australian subsidiary to Asahi and continue to evaluate a potential IPO of Budweiser APAC • We have agreed to divest Carlton & United Breweries (CUB) to Asahi for 16.0 billion AUD (~11.3 billion USD) for an implied multiple of 14.9x 2018 normalized EBITDA • We have granted
Slide 25: Capital Allocation Objectives
Capital Allocation Objectives Our optimal capital structure is a Net Debt/EBITDA ratio of approximately 2x. The priorities for the use of cash are as follows: 1. Organic growth: Investing in the organic growth of our business 2. Deleveraging: Deleveraging to around the 2x level remains our commitmen
Slide 26: Q&A
Q&A © AB InBev 2019 – All rights reserved 26