Anheuser-busch Inbev Sa/nv · EURONEXT:ABI

Anheuser-busch Inbev Sa/nv — AB InBev — Investor Day (2018)

33 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2018

  1. Slide 1: AB InBev Investor Seminar 2018

  2. Slide 2: Legal Disclaimers

    Legal Disclaimers Certain statements contained in these presentations 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

  3. Slide 3: Roberto Jarrin, BU President Africa East

    • Citizen of Ecuador, Born in Rio de Janeiro, Brazil • 11 years in our Company ROBERTO • I’m most proud of having JARRIN developed teams that BU President sustainably accelerated Africa East growth in every country I have worked in

  4. Slide 4: BU East Africa Growth Strategy

    BU East Africa Growth Strategy

  5. Slide 5: BU East Africa

    BU East Africa Represents 14% of Africa Zone volume South Sudan: Kenya: Population 12 million Population 49 million Beer PCC 1L Beer PCC 10L ABI Share Average ABI Share Low Uganda: Tanzania: Population 42 million Population 55 million Beer PCC 9L Beer PCC 8L ABI Share High ABI Share High

  6. Slide 6: Tanzania and Uganda have a massive opportunity to develop the category

    Tanzania and Uganda have a massive opportunity to develop the category, sourcing from informal home brew Total Market Mix (% Pure Alcohol) Premium Tanzania Uganda Price Index >130 0.1% 0.0% Core & Core+ Price Index 80 – 130 7.8% 4.5% Affordable (Beer & Spirits) Price Index 50 – 80 Beer Spirits 5.1%

  7. Slide 7: The relative cost of beer is high in L1 markets leading to low per capita consumption

    The relative cost of beer is high in L1 markets leading to low per capita consumption Beer PCC against work minutes required to buy a beer across markets globally 80 US BEER CAPITA CONSUMPTION (LITER) Netherlands 70 Belgium Brazil 60 South Africa 50 Colombia Argentina 40 China Bolivia 30 L1 MARKETS

  8. Slide 8: BU East Africa's mission is to make beer more accessible

    BU East Africa’s mission is to make beer more accessible Mission Growth Strategy Increase penetration by making beer accessible (available and affordable) Core price moderation and 1. Protect & grow the core brand development Sourcing from informal Lager 2. Grow affordable segment share home brew Ea

  9. Slide 9: 1. Protect and grow the core

    1. Protect and grow the core: Grow the Core with improved affordability and brand development Opportunities Initiatives Ensure we are not pricing ahead of inflation, allowing income to Improved Core Affordability grow faster than price Introduce small packs to target key price points and address out

  10. Slide 10: Improve core affordability over time by letting consumer income grow faster than prices

    Improve core affordability over time by letting consumer income grow faster than prices Tanzania Population distribution by SEL Income per SEL – 2017 2017 3% 1% 1% 5% Average income per day Average minutes of work to buy beer 9% ABC > USD 12 D+ Core: 77 44% ~ USD 5 D Affordable: 58 E2 – E1 Core: 192

  11. Slide 11: 1. Protect and grow the core

    1. Protect and grow the core: Grow the Core with improved affordability and brand development Opportunities Initiatives Ensure we are not pricing ahead of inflation, allowing income to Improved Core Affordability grow faster than price Introduce small packs to target key price points and address out

  12. Slide 12: MAISHA NI

    > MAISHA NI KUNYWA KISTAARABU. HAIUZWI KWA WENYE UMRI CHINI YA MIAI

  13. Slide 13: ROAR FOR & SHOW YOUR

    a a ROAR FOR & SHOW YOUR UGANDA VS KE AT LEGENDS [hsthos JUNE 10TH, 2017, AT 2 PM. Bok (WIP 20k (VIP) 20k (Gent

  14. Slide 14: "The world's youngest continent" WEF 2018

    “The world’s youngest continent” WEF 2018

  15. Slide 15: #Mwagikachallenge

    Zama (©) #Mwagikachallenge

  16. Slide 16: Turn Up @Valhalla

    TURNUP @VALHALLA ~” = % A « a

  17. Slide 17: 2. Grow affordable segment share

    2. Grow affordable segment share: Grow per capita consumption by sourcing from informal homebrew and spirits Alcohol consumption (2014) 9% 11% 2% 2% 89% 87% Uganda Tanzania Source: 2014 WHO, Global status reports on alcohol and health

  18. Slide 18: Uganda was the first to negotiate a lower excise bracket to drive affordability

    Uganda was the first to negotiate a lower excise bracket as a way to drive affordability 2002 2017 VOLUME 365k hl 2,365k hl MARKET BEER PCC < 5L 9L Imported Raw Materials: FULL RATE BEER EXCISE FULL RATE Local Raw Materials: INCENTIVE

  19. Slide 19: The Eagle brand was launched to source from informal alcohol

    The Eagle brand was launched to source from informal alcohol 2002: A quality local Beer 2017: End of day reward Develop a relevant and emotive brand concept that focuses on: High quality local ingredients Strong sense of local pride derived from being homegrown “created by us for us” Price Index: 73

  20. Slide 20: Eagle in Uganda was launched in areas of low affordability to drive incrementality

    Eagle in Uganda was launched in areas of low affordability to drive incrementality Map of work hours required to purchase 500ml beer Work hours by sales region 2015

  21. Slide 21: The Uganda case study has been expanded to other countries in Africa

    The Uganda case study has been expanded to other countries in Africa Uganda Tanzania Mozambique Local Sorghum Local Cereal Local Cassava / Maize

  22. Slide 22: Also deploying the same focus in rural areas where growth opportunity is big

    Also deploying the same focus in rural areas where growth opportunity is big Tanzania PCC is lowest in rural areas with high Affordable mix is high outside of percentage E5 and E4 SEL population Dar es Salaam (% volume mix) Dar Es Salaam Mwanza Dar es Salaam Other regions Mbeya Kagera Tabora Morogor

  23. Slide 23: Results of the affordability strategy expansion have been strong

    Results of the affordability strategy expansion to other African countries have been strong Affordable volume growth Mozambique Zambia Tanzania 93% 26% 111% 2014 2017 2014 2017 2014 2017

  24. Slide 24: L1 and L2 markets with regional affordability opportunities could reapply the Uganda case

    L1 and L2 markets with regional affordability opportunities could reapply the Uganda case Beer PCC against work minutes required to buy a beer in Colombia BEER CAPITA CONSUMPTION (LITER) COLOMBIA ILLUSTRATIVE EXAMPLE Affluent regions Affordability regions Work to buy beer > 0,8 hours Beer PCC < 60 L

  25. Slide 25: Ladha kamili, inayoridhisha zaidi

    Ladha kamili, inayoridhisha zaidi

  26. Slide 26: 3. Increase availability: Implement an optimized RTC to improve POC execution

    3. Increase availability: Implement an optimized RTC to improve POC execution Tanzania Operation Example From To Stockist Stockist 3rd Party Distributor 3rd Party Distributor POC POC 20% 80% Brewery Brewery 98% of vol 98% of vol POC POC 20% 80% POC POC 2% of vol 2% of vol

  27. Slide 27: Launched DMS to improve distributor service, outlet coverage and line of sight

    Launched DMS to improve distributor service, outlet coverage and line of sight Rolled out in Tanzania Rollout in Africa in 2018 Tanzania 2016 Uganda 2017 DMS is used for invoicing and provides visibility of distributor’s Mozambique, Ghana, Zambia & Nigeria 2018 operation

  28. Slide 28: Urban areas moved to direct order taking from retail

    Urban areas moved to direct order taking from retail while maintaining third party delivery Tracking the KPIs to drive effectiveness and assure differentiated execution Order generation by our sales rep Mon-Thu Wed-Sat Delivery by distributor Tue-Fri

  29. Slide 29: Salesforce system integrated with DMS launched to capture in-market opportunities

    The Salesforce system integrated with DMS launched to capture in-market opportunities Enabled through an integrated commercial platform and central master data management with standard reporting 3rd Party Distributor POCs DMS Brewery Our Sales Rep

  30. Slide 30: 4. Premiumize growing urban areas

    4. Premiumize growing urban areas: We have started to play in the segment by introducing Budweiser 2017 Premium Market Size Introduce Budweiser TANZANIA 120k HL UGANDA 30k HL Source: internal estimates

  31. Slide 31: BU East Africa Growth Strategy

    BU East Africa Growth Strategy

  32. Slide 32: Since the integration, we have accelerated beer volume growth

    Since the integration, we have accelerated beer volume growth Uganda Tanzania 141 Volume index 121 113 100 99 100 98 97 2012 2014 2016 2017 2012 2014 2016 2017

  33. Slide 33: Slide 33

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