Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — InBev — FY2006 Earnings Presentation
25 slides from Anheuser-Busch InBev SA/NV's earnings presentation, Mar 1, 2007
Slide 1: Delivering on Commitments
Delivering on Commitments InBev FY06 results presentation March 1st 2007 1
Slide 2: Today's Agenda
Today’s Agenda • 2006 summary and highlights • Performance drivers • Full year financial results • Challenges ahead • Outlook 2
Slide 3: Delivering on commitments
Delivering on commitments • Organic beer volume growth of 5.5%, ahead of global industry growth • Revenue per Hl increase of 1.8% driving revenue growth of 7.9%, in line with objectives (3.5% at same geographic mix) • Strict cost management to support top line growth and margin expansion • Cost of s
Slide 4: Financial Highlights (million euro)
Financial Highlights (million euro) Organic FY06 FY05 Growth Volume (million Hl) 246.5 223.5 5.9% Revenue 13 308 11 656 7.9% EBITDA (1) 4 239 3 339 16.8% EBITDA Margin 31.9% 28.6% 239 bp EBIT(2) 3 223 2 439 20.1% (1) Before non-recurring items on EBITDA of -16 million euro FY06 and -207 million euro
Slide 5: Volume and revenue
Volume and revenue Growth in line with objectives Acquisitions/ Currency Organic FY05 FY06 divestitures translation growth 10.0 13.0 246.5 223.5 0.0 Volume(1) million Hl +5.9% 518 904 13 308 11 656 231 Revenue million euro +7.9% Revenue/ Hl euro per Hl 52.2 54.1 (1) Proportional volumes for proporti
Slide 6: Global brands
Global brands Global volumes Global volumes up almost 10% up 14% Volumes outside Up 60% Latin America in the US up 48% 6
Slide 7: Strong local brands
Strong local brands 33 million 10 million growth of hectoliters sold hectoliter brand 23% in 2006 in China vs previous year volumes grew number 1 by 6.5% beer brand in Belgium 7
Slide 8: Winning at the Point of Connection
Winning at the Point of Connection • Optimize consumer experience • Ensure proven best practice deployment • Disciplined sales execution 8
Slide 9: Cost of Sales and Operating Expenses
Cost of Sales and Operating Expenses CoS growth under control and operating expenses optimized Acquisitions/ Currency Organic FY05 FY06 divestitures translation growth Cost of Sales/ Hl 22.7 22.2 euro per Hl 168 163 5 477 5 082 64 Cost of Sales million euro +3.3% 4 135 79 145 250 4 607 Operating Cos
Slide 10: World Class Efficiency
World Class Efficiency Voyager Plant Optimization • 69 breweries running under VPO in 2006 Zero Based Budgeting roll out • Western Europe significant first year progress • North America delivered incremental second year savings • Central & Eastern Europe and South Korea ready for 2007 Procurement •
Slide 11: Profit Growth
Profit Growth Driven by volume, mix and enhanced cost management Acquisitions/ Currency Organic FY05 FY06 divestitures translation growth 559 4 239 3 339 238 103 EBITDA (1) million euro +16.8% 489 3 223 2 439 88 207 EBIT (2) million euro +20.1% (1) Before non-recurring items on EBITDA of -16 million
Slide 12: Targeted External Growth
Targeted External Growth Sharpened focus on fast-growing US import segment • Sold Rolling Rock to Anheuser Busch • Announced agreement with Anheuser Busch for import and distribution of premium European import brands in fast growing segment of the US market Increased position in southern Latin Ameri
Slide 13: Dream, People, Culture
Dream, People, Culture • Dream • From Biggest to Best • Stretched targets • People • Our only sustainable competitive advantage • Meritocracy • Culture • Ownership • Focus on results • Disciplined execution 13
Slide 14: Cost, Connect, Win: A foundation for success
Cost, Connect, Win: A foundation for success 14
Slide 15: Breakdown of Revenue and EBITDA
Breakdown of Revenue and EBITDA Global Central Asia Asia Global Export North and North Central Pacific Pacific Export 1% America Eastern 0% America and 7% 6% 14% Europe 13% Eastern 10% Europe 14% Western Europe 20% Latin Latin Western America America Europe 37% 51% 27% (1) Before non-recurring items
Slide 16: North America
North America Acquisitions/ Organic Organic in million euro FY 05 Currency FY 06 Divestitures Growth Growth Volumes (in thousand hl) 14 639 -617 0 319 14 342 2.3% Revenues 1 733 -45 89 53 1 831 3.2% EBITDA 477 -7 37 43 551 9.2% EBIT 389 -4 32 43 459 11.1% • Stella Artois in the US delivered signific
Slide 17: Latin America
Latin America Acquisitions/ Organic Organic in million euro FY 05 Currency FY 06 Divestitures Growth Growth Volumes (in thousand hl) 103 533 6 654 0 6 965 117 152 6.7% Revenues 3 947 224 357 473 5 001 12.0% EBITDA 1 577 68 180 328 2 152 20.8% EBIT 1 323 50 162 305 1 839 23.1% • Another good year in
Slide 18: Western Europe
Western Europe Acquisitions/ Organic Organic in million euro FY 05 Currency FY 06 Divestitures Growth Growth Volumes (in thousand hl) 41 450 -2 091 0 -211 39 147 -0.5% Revenues 3 669 -114 4 86 3 646 2.4% EBITDA 751 -17 1 100 834 13.6% EBIT 439 -6 1 86 520 19.9% • Total ZBB savings 118 million euro •
Slide 19: Central and Eastern Europe
Central and Eastern Europe Acquisitions/ Organic Organic in million euro FY 05 Currency FY 06 Divestitures Growth Growth Volumes (in thousand hl) 38 021 513 0 4 667 43 201 12.3% Revenues 1 468 42 33 277 1 820 18.9% EBITDA 311 6 10 70 398 22.9% EBIT 145 5 6 51 206 35.8% • Very good volume and revenue
Slide 20: Asia Pacific
Asia Pacific Acquisitions/ Organic Organic in million euro FY 05 Currency FY 06 Divestitures Growth Growth Volumes (in thousand hl) 24 048 5 791 0 1 084 30 924 4.6% Revenues 747 123 35 6 912 0.8% EBITDA 207 42 11 -20 241 -9.7% EBIT 138 33 7 -28 150 -20.2% • Overall volumes below expectations • Sedri
Slide 21: Net Debt Evolution
21 Net debt 31-12- 2005 4 867 Cash generated from -4 096 operations Acquisitions & 1 531 divestitures Purchase of minority 740 interests Net Debt Evolution Capex (net) 1 218 Dividends 617 paid Interests & 810 taxes Other -124 Net debt 31-12- 5 563 2006
Slide 22: Below EBIT (million euro)
Below EBIT (million euro) FY06 FY05 Normalized EBIT(1) 3 223 2 439 Net financing costs(2) -472 -451 Share of results of associates - - Income tax expense(1) -531 -449 Normalized Profit(1) 2 220 1 538 Attributable to minority holders 698 515 Attributable to equity holders 1 522 1 024 of InBev (1) Bef
Slide 23: Challenges ahead
Challenges ahead Execute in the marketplace Ensure sufficient resources for brand building Generate innovation from consumer insights Financial discipline Resource allocation 23
Slide 24: Outlook
Outlook InBev remains committed to a strategy which is targeted to • deliver organic volume growth ahead of the industry • revenue growing ahead of volume, & • strong cost management As the company develops a culture of ownership and focus on results across a geographic portfolio geared for growth,
Slide 25: Delivering on Commitments
Delivering on Commitments InBev FY06 results presentation March 1st 2007 25