Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Q3 2022 Earnings Presentation
38 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Oct 27, 2022
Slide 1: 3Q22 Results
3Q22 Results October 27, 2022
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: Agenda
Agenda 01 3Q22 Operating performance highlights 02 Update on our strategic pillars • Lead and grow the category • Digitize and monetize our ecosystem • Optimize our business 03 Q&A © AB InBev 2022 – All rights reserved | 3
Slide 4: Operating performance highlights
Operating performance highlights © AB InBev 2022 – All rights reserved | 4
Slide 5: 3Q22 operating performance
3Q22 operating performance Total volumes +3.7% Own beer +3.4% and non-beer +5.2% Total revenue +12.1% Revenue per hl +8.0% EBITDA +6.5% EBITDA margin of 35.2% Normalized EPS of $0.81 Underlying EPS of $0.84 © AB InBev 2022 – All rights reserved | 5
Slide 6: ABI's diversified footprint provides a unique platform to lead & grow the category
ABI’s diversified footprint provides a unique platform to lead & grow the category, delivering broad-based 3.7% volume growth EMEA 13% EBITDA contribution1 +14.9% North America Organic revenue 30% EBITDA contribution1 3Q222 +10.6% Organic EBITDA +2.8% Organic revenue 3Q222 -1.6% Organic EBITDA APAC
Slide 7: 3Q22 key market headlines
3Q22 key market headlines United States Europe Continued top-line growth driven by our above core Double-digit top-line growth offset by elevated cost portfolio pressures Mexico South Africa Double-digit top- and bottom-line growth with accelerated Double-digit top- and bottom-line growth and additi
Slide 8: ESG highlights
ESG highlights © AB InBev 2022 – All rights reserved | 8
Slide 9: We continue to advance our ESG agenda
We continue to advance our ESG agenda Water stewardship Ambition to achieve Net Zero Scopes 1 & 2 Scope 3 Fortune’s 2022 Change the Eight carbon neutral facilities Convened top packaging and raw World List to date materials suppliers through our Eclipse initiative © AB InBev 2022 – All rights reserv
Slide 10: Update on our strategic pillars
Update on our strategic pillars © AB InBev 2022 – All rights reserved | 10
Slide 11: Lead and grow the category
3 1 Optimize our Lead and grow Lead and grow business the category the category 2 Digitize and monetize our ecosystem © AB InBev 2022 – All rights reserved | 11
Slide 12: Evolved marketing capabilities, leading & growing the category with creativity & effectiveness
Evolved marketing capabilities, leading & growing the category with creativity & effectiveness ABI Global Ranking #1 #4 #7 #7 #24 2017 2018 2019 2020 2021 Past winners include Unilever, The Coca-Cola Company and The Procter & Gamble Company © AB InBev 2022 – All rights reserved | 12
Slide 13: Lead and grow the category: category expansion levers
Lead and grow the category: 5 category expansion levers 1 2 3 4 5 Inclusive Core Superiority Occasions Premiumization Beyond Beer Category Development Increased participation of Mainstream portfolio Global non-alcohol beer Above core portfolio Beyond Beer portfolio consumers with our delivered low-t
Slide 14: Led by Corona with 23.5% growth, our global brands delivered 12.7% revenue growth in 3Q22
Led by Corona with 23.5% growth, our global brands delivered 12.7% revenue growth in 3Q22 Outside of their home markets, where they command a premium price vs. 3Q21 vs. 3Q21 vs. 3Q21 +23.5% +7.0% +8.9% 3Q22 revenue outside Mexico 3Q22 revenue outside Belgium 3Q22 revenue outside the US © AB InBev 20
Slide 15: Market expansion model
Market expansion model Emerging Developing Developed Beyond Beer Premiumization Occasions Development Core Superiority Inclusive Category © AB InBev 2022 – All rights reserved | 15
Slide 16: Lead & Grow the Category: Zambia
Lead & Grow the Category: Zambia © AB InBev 2022 – All rights reserved | 16
Slide 17: Developing the category through a broad portfolio
Developing the category through a broad portfolio 1 2 3 4 5 Inclusive Core Superiority Occasions Premiumization Beyond Beer Category Development Flying Fish and Clear sorghum-based Mosi Lager & Carling Castle Lite addresses Brutal Fruit Spritzer beer in large format Global brands leading Black Label
Slide 18: Category growth and portfolio expansion driving results
Category growth and portfolio expansion driving results Per Capita Consumption (Liters) 1 ABI Volumes ABI Net Revenue Contribution (%) +2.0 15.0 20% 23% +8.7% 13.0 80% 77% 2018 2021 2018 LTM 2018 LTM Sep-2022 Sep-2022 Above Core Mainstream 1. Per Capita Consumption as per internal volume estimates a
Slide 19: Lead & Grow the Category: Mexico
Lead & Grow the Category: Mexico © AB InBev 2022 – All rights reserved | 19
Slide 20: Portfolio development unlocking category growth
Portfolio development unlocking category growth 1 2 3 4 5 Inclusive Core Superiority Occasions Premiumization Beyond Beer Category Development Broad portfolio Accessible brands and Using local and global Leading portfolio Industry leading brands bringing new packs to promote an brands to further exp
Slide 21: Expanding the beer category and leading premiumization
Expanding the beer category and leading premiumization Per Capita Consumption (Liters) 1 ABI Volumes ABI Net Revenue Contribution (%) +8.5 72.0 +5.6% 17% 25% 63.5 83% 75% 2017 2021 2017 LTM 2017 LTM Sep-2022 Sep-2022 Above Core Mainstream 1. Per Capita Consumption as per internal volume estimates an
Slide 22: Lead and grow the category: United States
Lead and grow the category: United States © AB InBev 2022 – All rights reserved | 22
Slide 23: Rebalancing and investing in our portfolio for growth
Rebalancing and investing in our portfolio for growth 1 2 3 4 5 Occasions Inclusive category Core Superiority Premiumization Beyond Beer Development Cutwater: #1 spirits-based canned cocktail 2x volumes Driving premiumization & growing high- NÜTRL: #2 spirit-based Stabilized share of mainstream in 5
Slide 24: Delivering consistent revenue growth
Delivering consistent revenue growth ABI Net Revenue Mix ABI Net Revenue Growth $13.7B $14.5B 3.4% Above Core & 27% Beyond Beer 40% 2.2% 0.8% 0.5% Mainstream 73% 60% -0.8% FY2017 LTM Sep-2022 Net Revenue -2.0% 2017 2018 2019 2020 2021 9M’22 © AB InBev 2022 – All rights reserved | 24
Slide 25: Digitize and monetize our ecosystem
3 1 Digitize and Optimize our business Lead and grow the category monetize our ecosystem 2 Digitize and monetize our ecosystem © AB InBev 2022 – All rights reserved | 25
Slide 26: BEES continues to expand and empower our customers
BEES continues to expand and empower our customers September 2021 September 2022 Monthly Active Users 2.1m 3.1m (“MAU”) Gross Merchandise Value ~$5.5bn ~$7.7bn (“GMV”) 3Q2021 3Q2022 Orders per week >1.7m >1.8m Minutes per week per buyer 25min 28min Marketplace buyers 28% 44% % of current BEES buyers
Slide 27: BEES Marketplace further empowers our ecosystem
BEES Marketplace further empowers our ecosystem 14 44% Markets Marketplace buyers % of current BEES buyers 1 ~$850m >200 Annualized Partners revenue 2 1. In markets in which BEES Marketplace is available 2. Annualized run-rate revenue based on September 2022 © AB InBev 2022 – All rights reserved | 2
Slide 28: Continued growth of our direct-to-consumer digital solutions
Continued growth of our direct-to-consumer digital solutions ~$100m 3Q22 revenue 17m 3Q22 online orders PerfectDraft On-Demand Zé Delivery TaDa +22% growth of active ~8mActive 10 Countries households vs. LY Consumers 1 Scaling across LATAM 1. Active consumers on a rolling 12-month basis © AB InBev 2
Slide 29: Optimize our business
3 1 Optimize our Lead and grow Optimize our business the category business 2 Digitize and monetize our ecosystem © AB InBev 2022 – All rights reserved | 29
Slide 30: Maximizing value by focusing on:
Maximizing value by focusing on: Optimized resource allocation Robust risk management Efficient capital structure © AB InBev 2022 – All rights reserved | 30
Slide 31: Dynamically balancing capital allocation priorities to maximize value creation
Dynamically balancing capital allocation priorities to maximize value creation Deleveraging Invest behind organic growth Selective Return of M&A Capital © AB InBev 2022 – All rights reserved | 31
Slide 32: Well-distributed bond maturity profile with very manageable coupon
Well-distributed bond maturity profile with very manageable coupon and limited medium-term refinancing needs $2.8B ~4% ~16 yrs weighted average maturing through 2025 Pre-tax coupon maturity 12 10 Principal ($B) 8 6 4 2 0 2027 2059 2022 2023 2024 2025 2026 2028 2029 2030 2031 2032 2033 2034 2035 2036
Slide 33: Bond portfolio is mostly fixed rate
Bond portfolio is mostly fixed rate Diverse currency mix reduces risk 94% of our bond portfolio is fixed rate Floating rate 6% CAD 4% GBP 6% 5% Other 25% EUR 60% USD 94% Fixed rate Note : Represents full bond portfolio as of September 30th 2022, after hedging © AB InBev 2022 – All rights reserved |
Slide 34: Underlying EPS declined by $0.01 to $0.84 in 3Q22
Underlying EPS declined by $0.01 to $0.84 in 3Q22 0.12 0.17 0.03 0.04 0.85 0.08 0.84 0.03 0.02 0.01 3Q21 Normalized EBITDA Depreciation Net interest Other financial Income tax Non-controlling Hyperinflation 3Q22 EBITDA FX impact 1 & amortization expense results expense interests impacts organic 1. T
Slide 35: Meeting the moment in 2022
Meeting the moment in 2022 © AB InBev 2021 – All rights reserved | 35
Slide 36: Building momentum as we deliver and transform
Building momentum as we deliver and transform Beer gaining Business Tech-first Revenue Activating share of throat momentum FMCG management demand Strong results in a Leading brands and Disciplined revenue Unique opportunities The beer category is: dynamic operating accelerated digital management inc
Slide 37: FIFA World Cup: Uniquely positioned to activate demand
FIFA World CupTM: Uniquely positioned to activate demand Budweiser global campaign 70+ Countries 1.2M POCs Local core brands BEES & DTC activations © AB InBev 2022 – All rights reserved | 37
Slide 38: Q&A
Q&A © AB InBev 2022 – All rights reserved | 38