Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Day (June 2010)
46 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, Jun 2, 2010
Slide 1: Building a World Class FMCG
St. Louis Investor Conference Building a World Class FMCG Carlos Brito, CEO June 2nd, 2010 St. Louis, MO
Slide 2: Agenda
Agenda AB InBev integration Dream-People-Culture World Class FMCG Best still to come Focus of this meeting 2
Slide 3: Anheuser-Busch InBev Combination
Anheuser-Busch InBev Combination Began unsolicited Turned friendly / agreed Quick: June 11th July 13th November 18th Quality of our colleagues Blue Ocean Made integration faster / better 3
Slide 4: Back to November 18th 2008 – Closing Day
Back to November 18th 2008 – Closing Day 18 months ago, AB InBev was created through the completion of the largest all-cash transaction ever Merger completed under tremendous stress • Unprecedented financial dislocations • Significant macroeconomic headwinds • Debt and equity markets basically close
Slide 5: We Delivered on all our Commitments
We Delivered on all our Commitments 2009 commitments 2009 achievements • Capturing $1 billion of synergies from Anheuser-Busch $1.1 billion of synergies generated in 2009 • Releasing at least $500 million of working capital in the Working capital improved by $787 million, or $1,365 US while continui
Slide 6: 2009 Was Not the First Time AB InBev Has Delivered
2009 Was Not the First Time AB InBev Has Delivered 1987 1995 2002 2004 2008 2000 2002 2004 Market Cap (5/28/10): $76.9 Billion 6
Slide 7: Agenda
Agenda AB InBev integration Dream-People-Culture World Class FMCG Best still to come Focus of this meeting 7
Slide 8: Dream, People, Culture Platform – Our Principles
Dream, People, Culture Platform – Our 10 Principles 1. Our shared dream energizes everyone to work in the same direction: to be The Best Beer Dream Company in a Better World 2. Great people, allowed to grow at the pace of their talent and compensated accordingly, are the most valuable assets of our
Slide 9: A Shared Dream Has Driven Us Forward Over 20 Years
1. A Shared Dream Has Driven Us Forward Over 20 Years Both Interbrew and Brahma were mid-sized players in 1990, now we are the clear leaders in the global beer industry TOP TEN GLOBAL BREWERS 1990 TOP TEN GLOBAL BREWERS 2009 VOLUME (m Hl) EBITDA ($ million) VOLUME (m Hl) EBITDA ($ million) A-B 108 1
Slide 10: Great People Make the Difference – Our OPR Process
2. Great People Make the Difference – Our OPR Process 10
Slide 11: Hiring People Better than Us – Trainee Program
3. Hiring People Better than Us – Trainee Program 2010 Trainees by Zone The Global Management Trainee Program is the WE, 8 main entry program for our Talent Pipeline Initiated in Brazil in 1990, the program is NA, 24 APAC, 48 present today in all 6 Zones since 2005 370 global trainees over last 4 ye
Slide 12: Never Completely Satisfied with Results
4. Never Completely Satisfied with Results We have consistently opened gaps and driven superior financial performance, even when others thought that was impossible 34.6% 35.5% 31.9% 30.8% AB InBev Normalized 26.1% 28.6% 935 bps EBITDA Margin Expansion 2004 2005 2006 2007 2008(1) 2009 9.1% 3.9% 2.0%
Slide 13: Consumer is the Boss – Demand Landscape
5. Consumer is the Boss – Demand Landscape Demand Segment Light Experimenters Loyalists Trendsetters Aspirers Refreshers Sweet Sippers Palate Domain Robust/ Light & Pleasantly Bitter Full Bodied Sweet & Easy Full Bodied Refreshing Sweet & Easy Party Time After Sports Reward Sports Companion Need Sta
Slide 14: Company of Owners
6. Company of Owners Our ownership mentality starts with our controlling shareholders, who have repeatedly proven their commitment to business over time Committed Shareholding Group with a Clear Management team accountable and clearly Long-Term Perspective on Value Creation incentivized to drive lon
Slide 15: Owners take results personally
6. Owners take results personally Our software Potential Individual Entity Individual Bonus Performance Targets Targets Business Cycle Pool (Bonus) Company, Zone Individual Team effort or BU results effort Dream Available resource to Solidarity behavior & Individual distribute entity accountability
Slide 16: Common Sense: Don't Re-invent the Wheel
7. Common Sense: Don’t Re-invent the Wheel One common business model globally… WCCP Sales WCCP Marketing Wholesaler OPR Excellence Programs 16
Slide 17: We manage our costs tightly to free up resources
8. We manage our costs tightly to free up resources that will support top-line growth We manage costs by identifying non-working dollars Our ability to manage costs is a long-term competitive advantage This ability allows us to free up more resources to invest behind growth The NFL deal was enabled
Slide 18: We Lead by Personal Example
We Lead by Personal Example We believe in informality, candor and simplicity Our open space concept is critical in driving this principle We are where things happen, in the field, in the market, with our people We have one travel policy, independent of hierarchical level We are frugal and we set the
Slide 19: We do not take shortcuts
10. We do not take shortcuts Our Better World agenda is a critical component of our dream, and key to ensure the long-term sustainability of our business Best Beer Company In a Better World Responsible Environment Community drinking 19
Slide 20: We do not take shortcuts
10. We do not take shortcuts World’s Most Admired Companies 2010, Beverage Industry Coca-Cola 6.98 Anheuser-Busch InBev 6.88 SABMiller 6.26 Pepsi Bottling Group 6.17 Coca-Cola Enterprises 5.58 Diageo 5.40 FEMSA (Fomento Economico Mexicano) 5.22 Heineken 4.99 Kirin Brewery 4.58 Asahi Breweries 4.20 C
Slide 21: No Shortcuts: Better World
10. No Shortcuts: Better World • Recycled 98% of our solid waste and byproducts • Reduced total water usage by 8.5% per hectoliter of production in past year • Reduced total energy consumption by 7.0% per hectoliter of production in past year 21
Slide 22: Agenda
Agenda AB InBev integration Dream-People-Culture World Class FMCG Best still to come Focus of this meeting 22
Slide 23: Best in Class Footprint…
Best in Class Footprint… Leading positions in 7 out of top 10 beer markets by Margin Pool, #1 or #2 in top 5 Country Brewer Share Country Brewer Share AB InBev 49% Oetker Group 15% 1. USA MillerCoors 29% 6. Germany AB InBev 9% Crown 6% Bitburger 9% AB InBev 69% Foster’s 50% 2. Brazil Schincariol 12%
Slide 24: …Well Positioned for Growth…
…Well Positioned for Growth… Forecast contribution to 2009 market share industry volume growth (2010-2015) China 46.0% China 11% 18% (2) 2% Brazil 7.6% Brazil 69% – 9% USA 4.5% USA 49% 29% 4% Mexico 4.1% Mexico 56% (1) – 42% Vietnam 3.9% Vietnam – – 12% Russia 3.9% Russia 16% 5% 15% India 3.0% India
Slide 25: …Major Scale Advantage…
…Major Scale Advantage… AB InBev EBITDA is approximately equal to next four competitors combined Global Brewers $13.0 2009 EBITDA (USD billion) $5.2 $4.8 $2.5 $0.9 AB InBev SABMiller Heineken Carlsberg Molson Coors Global Brewers 409 2009 volumes (million Hl) 261 125 137 50 AB InBev SABMiller Heinek
Slide 26: …Driven by Strong and Profitable Positions in the Markets Where We Operate
…Driven by Strong and Profitable Positions in the Markets Where We Operate EBITDA margin (% net sales) 80% Bolivia 60 Brazil Paraguay US Netherlands Belux 40 Canada Argentina Italy/Spain Germany /Swiss Russia /Austria Ukraine Uruguay 20 France China UK $800M EBITDA 0 0.1 0.2 0.5 1 2 5 10 Log RMS Not
Slide 27: …with Superior Profitability and Relative Market Share…
…with Superior Profitability and Relative Market Share… EBITDA margin (% net sales) 80% 60 40 Heineken AB InBev InBev 06 09 20 Carlsberg 200M Hl volume Molson Coors SABMiller 0 0.3 0.5 1 2 3 Log-weighted RMS Notes: US RMS adjusted for MillerCoors JV, weighted by respective economic stake of SABMille
Slide 28: Unparalleled Brand Portfolio…
Unparalleled Brand Portfolio… Very complimentary portfolio Global Global Brands Brands focus focus on on 3 3 strong strong global global brands brands Multi-Country Multi-Country Brands Brands e.g. e.g. Hoegaarden Hoegaarden >> 30 30 countries countries “Local “Local Jewels” Jewels” 28
Slide 29: Including four of Top 10 Global Beer Brands…
Including four of Top 10 Global Beer Brands… 2007 2008 2009 2010 1 2 3 4 5 6 7 8 9 10 Source: BrandZ Report – Millward Brown Optimor Note: Brand value calculated as the sum of all future earnings each brand is forecast to generate, discounted to a present day value 29
Slide 30: …and "billion-dollar brands"…
…and 13 “billion-dollar brands”… 9.9 Retailer sales value ($ billion) 7.1 6.4 4.7 2.3 2.3 2.2 1.9 1.8 1.4 1.3 1.0 1.0 l al a a in n r 's h t is o b r le gh m ic bi se sc Sk ur ck lo dr to pi t ah ar he Li rc Bu ei at Be Ar Se Ju H dw ta Br N d ic lla Bu An M Bu e St Note: Figures represent total ret
Slide 31: …Comparing Favorably to Other Top FMCGs…
…Comparing Favorably to Other Top FMCGs… Number of Billion Dollar Brands in Top CPG Companies 30 Number of Billion-Dollar-Brands 25 20 15 10 5 0 0 5 10 15 20 25 Annual EBITDA ($ billion) Source: Company filings 2009, AB InBev estimates 31
Slide 32: …Owning the Most Critical Properties…
…Owning the Most Critical Properties… 32
Slide 33: …and ONE AB InBev Way of Marketing: to Drive Brand Health…
…and ONE AB InBev Way of Marketing: to Drive Brand Health… WCCP Marketing Long Term Yearly Continuous 1 Alea jacta est quoque Tu quoque fillii mi Defining country portfolio and brands De viris illustribus urbis Romae, rendit Caesare quae De viris illustribus urbis Romae, rendit Caesare quae sunt cae
Slide 34: …With an Evolving Marketing Skill-Set…
…With an Evolving Marketing Skill-Set… + 2004 2005 2006 2007 2008 2009 2010 AmBev days: local InBev days: large portfolio of brands AB InBev days: US presence brands in local (too many) across many geographies • Sport properties markets vs local against more international players competitors • Globa
Slide 35: …Successfully driving premium in key markets…
…Successfully driving premium Stella UK in key markets… 9.9% 9.8% Apr 09: 2nd Feb 09: Wave Stella 4% Jul 09: 9.7% 2009 PINC Advertising Launch of Eco Oct 08: 2008 Program 2nd PINC Mar 09: 9.6% Start of Feb 08: Beginning Stella 4% 9.5% of Stella Artois Market rebranding Sept 08: Jan 09: Coors May 08:
Slide 36: With an Evolving Sales Execution Skill-set
With an Evolving Sales Execution Skill-set + 2004 2005 2006 2007 2008 2009 2010 Early AmBev Days InBev Sales Machine FROM TO Thomas Research Hectoliters Cases WCCP Relationships Data Wholesaler Retailer WCCP Chainselling Margin Cost to Serve Margin Pool Distribution Execution RTM Brand Portfolio Bar
Slide 37: …Already a Leading FMCG Under Some Criteria….
…Already a Leading FMCG Under Some Criteria…. Superior Cash Flow Generation (1) 2009 Operational Cash Flow and External Cash Conversion Cash Flow $18,000 Bubble size represents EBITDA $15,000 Nestle $12,000 P&G $ millions AB InBev $9,000 Unilever $6,000 Pepsi Coca-Cola $3,000 SABMiller Diageo Heinek
Slide 38: Agenda
Agenda AB InBev integration Dream-People-Culture World Class FMCG Best still to come Focus of this meeting 38
Slide 39: The Disposal Program is behind us and we will now focus on growing the Core Business
The Disposal Program is behind us and we will now focus all our attention on growing the Core Business Further leverage our global scale and global brands Strong positions in the right markets • US – top profit pool with considerable upside • Brazil – strong economic fundamentals • China – largest a
Slide 40: We Do Have Gaps / Opportunities
We Do Have Gaps / Opportunities We have a number of issues in our business – but we are confident in our ability to address them over time Gap / Issue Facts What We Are Doing US: slowdown in overall beer LTM industry -2.4% Invest behind our brands, consumption given macro Driven by unemployment inno
Slide 41: Our Business Model is Simple
Our Business Model is Simple Dream-People-Culture • Continue to attract the best talent • Focus on few big things Grow the top-line • Drive volume growth ahead of the market • Deliver revenue per Hl growth ahead of inflation Cost efficiency Manage the balance sheet Better World Build the BEST BEER C
Slide 42: Agenda
Agenda AB InBev integration Dream-People-Culture World Class FMCG Best still to come Focus of this meeting 42
Slide 43: Focus of this Meeting (1/2)
Focus of this Meeting (1/2) Presenter Key Topics Common marketing method across AB InBev Chris Burggraeve Marketing method was developed taking the best of both Chief Marketing Officer Our 2010 FIFA World Cup execution is a great example of what our scale can deliver against a global platform Scratc
Slide 44: Focus of this Meeting (2/2)
Focus of this Meeting (2/2) Presenter Key Topics While 2009 and Q1 2010 have been challenging, the US industry will Dave Peacock, remain a long-term driver of brewing profits Keith Levy, and We have the best beer platform in the US, and we are improving our Evan Athanas portfolio strategy and execut
Slide 45: Disclaimer
Disclaimer This document has been prepared by Anheuser-Busch InBev SA/NV (the "Company") solely for use in the presentation being given in connection with June 2-3, 2010 Anheuser-Busch InBev Investor Event in St. Louis Missouri. This document is being presented solely for informational purposes and
Slide 46: Disclaimer
Disclaimer Forward looking statements: 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 fi