Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — FY2016 Earnings Presentation
45 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, May 2016
Slide 1: Presented by Alan Clark and Domenic De Lorenzo
Presented by Alan Clark, Chief Executive Domenic De Lorenzo, Chief Financial Officer
Slide 2: Forward-looking statements
This presentation includes ‘forward-looking statements’ with respect to certain of SABMiller plc’s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and
Slide 3: Full year highlights
Underlying group NPR growth of 5%, with group NPR per hectolitre up 3% Beverage volumes up 2%, with group lager volumes up 1% Subsidiaries achieved 8% NPR growth with volumes up 5% Increased H2 momentum, particularly in subsidiaries Topline growth led by Africa and Latin America Strong p
Slide 4: Recommended acquisition of SABMiller by AB InBev
− Agreement on the terms of a recommended acquisition of SABMiller by AB InBev − Recommended cash offer of £44 per SABMiller share with partial share and cash alternative − Subject to certain conditions including regulatory approvals in a number of jurisdictions and shareholder approvals. Expected t
Slide 5: Key drivers in F16 subsidiaries' volumes growth
Key drivers in F16 subsidiaries’ volumes growth v prior year Super Premium Extend Refreshment Occasions CAGR1 +12% CAGR1 Improve +99% premium mix Global Brands Volume: +9% +5% Flying Fish Pilsner Urquell Grow core lager2 Extend refreshment Capture wine and occasions Classic Lager Brands: +2% spirits
Slide 6: Latin America
Accelerated growth in volume, particularly in easy-drinking core lagers Strong growth and LAE share gain in Colombia Continued momentum of affordability initiatives in Honduras and El Salvador Further NPR per hl expansion Continued improvement in our premium mix, with strong global brands
Slide 7: Africa
Subsidiaries’ lager volume growth momentum Growth v Group Beverage Group Despite economic volatility affecting consumers prior (%) NPR volume NPR/ hl Acceleration in affordable segment growth South Africa 10 6 4 Rest of Africa Strong results in Nigeria, South Africa and other markets 17 11 5
Slide 8: Asia Pacific
Australia – premium brands volume growth 121% Australia: − CUB volume and market share growth 67% − NPR per hl up 3% − Premium lager volumes up 16% 14% − Improved pricing Peroni Yak family Great − Good profit growth, with higher margin family Northern − Price/mix improvement − Continuing cost optimi
Slide 9: Europe
Underlying volume trend improvement by our subsidiaries Marked improvement in Poland and Czech in H2 Continued strong performance in Western Europe and Romania Improved efficiency driving EBITA margin expansion Efes decline in an increasingly difficult operating environment Kozel volumes (
Slide 10: North America: MillerCoors
− MillerCoors’ volumes fell primarily due to economy segment weakness − Sustained improvement in premium light brand performances − Redd’s brand family in its third year of growth − Continued growth of Blue Moon and Leinenkugel’s − NPR per hl up 1%, with softer pricing environment and slower mix gai
Slide 11: Premium brands, NPR and EBITA growth
Lager volume growth in Subsidiaries’ NPR premium brands growth1 Africa and Latin America subsidiaries 7% 12% 6% 4% 8% 2% 3% 1% 1% 2014 2015 2016 2014 2015 2016 Latin America Africa EBITA growth2 NPR growth2 8% 10% 8% 8% 6% 7% 7% 5% 5% 6% 3% 3% Group Subsidiaries 2014 2015 2016 2014 2015 2016 1 Const
Slide 12: Domenic De Lorenzo, Chief Financial Officer
Domenic De Lorenzo, Chief Financial Officer
Slide 13: Strategic priorities and progress
Drive superior top- 1 Subsidiary lager NPR growth 8% line growth through Global brands NPR growth*1 13% strengthening our brand portfolios and expanding Premium brands NPR growth* 11% the beer category Affordable segment volume growth*2 22% 2 Group EBITA growth 8% Build a globally integrated Group E
Slide 14: Organic, constant currency growth
12% 8% 5% 2% Volumes Group NPR EBITA Adjusted EPS Organic, constant currency1 1 for Adjusted EPS, constant currency excluding the impact of the Tsogo Sun disposal only © SABMiller 2016 13
Slide 15: Reported and organic growth
12% 8% 5% 2% 2% (6%) (8%) (9%) Volumes Group NPR EBITA Adjusted EPS Reported Organic, constant currency1 1 for Adjusted EPS, constant currency excluding the impact of the Tsogo Sun disposal only © SABMiller 2016 14
Slide 16: Adjusted EPS and dividend per share
Reported growth v prior 8% 8% 4% 2% (1%) (6%) 1 F14 F15 F16 Dividend per share growth Adjusted EPS Year ended 31 March 2014 2015 2016 Adjusted EPS (US cents) 242.0 239.1 224.1 Dividend per share (US cents)1 105.0 113.0 122.0 Dividend cover 2.3x 2.1x 1.8x 1 The 2016 full year dividend and the final d
Slide 17: Total beverage volume growth
Subsidiaries +4% Lager +1% Associates / JVs Beverage -3% volume +2% Subsidiaries +7% Total beverage volume growth v prior Other +5% Growth % H1 H2 Subsidiaries 3 7 Associates / JVs Associates / JVs (3) (1) +2% Total 1 4 © SABMiller 2016 16
Slide 18: NPR growth +5%
NPR growth +5%, NPR growth +5%, volume +2%, price/mix +3% volume +2%, price/mix +3% Year ended 31 March 2016 (US$ millions) 73 (7) (3,524) 111 1% 27,612 2% 61 795 4% 0% (1)% (1)% 6% Group NPR 463 4% 5% Volume growth 26,177 3% Price / mix 24,149 Mar 2015 Latin Africa Asia Pacific Europe North Mar 201
Slide 19: EBITA and margin by region
EBITA and growth* v prior EBITA margin and expansion v prior 37.6% 5,810 8% Latin America 1,959 7% 25.2% 24.1% 20.6% 18.5% Africa 1,708 11% 16.6% Asia Pacific 753 13% Europe 636 5% North America 865 1% Group Latin Africa Asia Europe North (111) America Pacific America Corporate 60 bps (20) bps 10 bp
Slide 20: Cost and efficiency benefits
Net cumulative C&E benefits of US$547 million achieved since March 2014 Represents 52% of 2020 target of US$1,050 million Net cumulative cost savings of US$1,043 million realised since April 2010 Incremental in-year BCP benefits 1,043 Incremental in-year C&E benefits (US$ millions) 326 547 175 5
Slide 21: Free cash flow
US$m (reported) March 16 March 15 Group EBITDA 7,097 7,762 Adjusted EBITDA1 6,114 6,677 Working capital inflow, incl. provisions 61 132 Capex2 (1,313) (1,572) Free cash flow3 2,969 3,233 Free cash flow % Adjusted EBITDA 49% 48% − Adverse currency impact on reported Adjusted EBITDA of US$1,085 millio
Slide 22: Net debt and currency profile
US$m March 16 March 15 Currency profile 31 March 2016 Net debt (9,638) (10,465) 15% Gearing (%) 40.0 43.0 4% Net debt / Adjusted EBITDA1 1.6 1.6 6% 54% Weighted average interest rate for 3.2 3.5 10% gross debt portfolio (%) 11% US dollar South Africa rand Australian dollar Colombian peso Euro Other
Slide 23: Outlook
We expect to deliver good underlying performance in the year ahead We anticipate continuing volatility in key currencies against the US dollar, particularly in Africa Input costs per hl1 expected to increase mid single digits2 For both total raw materials per hl and total COGS per hl Full
Slide 24: Q&A
Slide 25: Appendices
Slide 26: Cost and efficiency programme
Cost and efficiency programme The following was announced on 9 October 2015: “SABMiller announces that it has increased its target annual run rate cost savings from its cost and efficiency programme, announced in May 2014, from US$500 million by 31 March 2018 to at least US$1,050 million by 31 March
Slide 27: Year ended 31 March 2016 growth summary
Year ended 31 March 2016 Reported Organic Total volumes 2% 2% Lager volumes 1% 1% Soft drinks volumes 6% 6% Organic, constant Year ended 31 March 2016 Reported currency1 Group net producer revenue (NPR) (8)% 5% Group NPR per hl (10)% 3% EBITA (9)% 8% EBITA margin progression (10) Bps 60 bps Adjusted
Slide 28: Reported to organic growth reconciliation
Group NPR EBITA Adjusted EPS Year ended 31 March 2016, year on year growth % % % Reported growth rate (8.1) (8.7) (6.3) Impact of currency translation 13.4 16.6 18.0 Reported, constant currency growth rate 5.3 7.9 11.7 Impact of acquisitions and disposals 0.2 0.3 0.7 Organic, constant currency growt
Slide 29: Subsidiaries NPR and volume growth
8% 8% Subsidiaries NPR 7% 6% 5% Group NPR 5% 4% Total subsidiaries 4% lager volumes 3% 2% Total beverage 2% volumes 1% Total lager 1% volumes 0% -1% F16 Q1 F16 Q2 F16 Q3 F16 Q4 Figures prepared on a LTM organic, constant currency basis © SABMiller 2016 28
Slide 30: Latin America
Latin America Reported Organic* Year ended 31 March 2016 2016 2015 growth growth (US$ millions / k hectolitres) % % Total beverage volume 67,239 64,021 5 5 of which: 46,627 44,156 6 6 Lager volume Soft drinks volume 20,612 19,865 4 4 Group NPR 5,211 5,768 (10) 8 Group NPR / hl 77 90 (14) 3 EBITA 1,9
Slide 31: Africa
Africa Reported Organic* Year ended 31 March 2016 2016 2015 growth growth (US$ millions / k hectolitres) % % Total beverage volume 96,364 90,932 6 6 of which: 50,803 48,413 5 5 Lager volume Soft drinks volume 37,786 34,901 8 8 Group NPR 6,781 7,462 (9) 11 Group NPR / hl 70 82 (14) 4 EBITA 1,708 1,90
Slide 32: Asia Pacific
Asia Pacific Reported Organic* Year ended 31 March 2016 2016 2015 growth growth (US$ millions / k hectolitres) % % Total beverage volume1 70,343 71,273 (1) (1) of which: 70,255 71,180 (1) (1) Lager volume Group NPR 3,650 3,867 (6) 3 Group NPR / hl 52 54 (4) 4 EBITA 753 768 (2) 13 EBITA margin (%) 20
Slide 33: Europe
Europe Reported Organic* Year ended 31 March 2016 2016 2015 growth growth (US$ millions / k hectolitres) % % Total beverage volume 58,923 59,088 - - of which: 43,147 43,595 (1) (1) Lager volume Soft drinks volume 15,776 15,493 2 2 Group NPR 3,832 4,398 (13) 2 Group NPR / hl 65 74 (13) 2 EBITA 636 70
Slide 34: North America
North America Reported Organic* Year ended 31 March 2016 2016 2015 growth growth (US$ millions / k hectolitres) % % Total beverage volume** 37,999 38,548 (1) (1) of which: 37,960 38,508 (1) (1) Lager volume Group NPR 4,676 4,682 - - Group NPR / hl 123 121 1 1 EBITA 865 858 1 1 EBITA margin (%) 18.5%
Slide 35: t
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Slide 36: Group financial summary
Year ended 31 March 2016 2014 2015 2016 Lager volumes (hl’m) 245 246 249 Total volumes (hl’m) 318 324 331 Group net producer revenue (NPR) 26,719 26,288 24,149 Group EBITA 6,460 6,367 5,810 Group EBITA margin 24.2% 24.2% 24.1% Group EBITDA 7,884 7,762 7,097 Group EBITDA margin 29.5% 29.5% 29.4% Adju
Slide 37: NPR and EBITA by region
Year ended 31 March 2016 14% 19% 22% 33% 11% Group NPR EBITA 16% 13% 28% 15% 29% Latin America Africa Asia Pacific Europe North America 1 before corporate costs © SABMiller 2016 36
Slide 38: Organic, constant currency growth by region
Organic, constant currency growth % Latin Asia North Africa Europe Group Year ended 31 March 2016 America Pacific America Total beverage volume 5 6 (1) - (1) 2 Lager volume 6 5 (1) (1) (1) 1 Soft drinks volume 4 8 - 2 (3) 6 Group NPR 8 11 3 2 - 5 Group NPR / hl 3 4 4 2 1 3 EBITA 7 11 13 5 1 8 EBITA
Slide 39: Segment financials, year ended 31 March 2016
Year ended 31 March 2016 Latin America Africa Asia Pacific Europe North America Corporate Group (US$m) Group revenue 7,018 8,250 4,973 5,092 5,317 - 30,650 Excise and similar taxes (1,807) (1,469) (1,323) (1,260) (642) - (6,501) Group NPR 5,211 6,781 3,650 3,832 4,675 - 24,149 Group EBITDA1 2,233 2,
Slide 40: Subsidiaries, MillerCoors and associates breakdown
Year ended 31 March Subs + Other Latin Asia North Share of Total 2016 Africa Europe Corporate Subs. Share of Assocs./ America Pacific America MC JV Group (US$m) MC JV JVs Group revenue 7,018 6,126 2,793 3,721 175 - 19,833 5,142 24,975 5,675 30,650 Excise and similar (1,807) (1,160) (1,061) (906) (4)
Slide 41: NPR components of growth
Organic, Organic,constant constantcurrency currency Components of growth growth+5.5%, +5%, performance Year ended 31 March 3% 27,612 61 (3,524) 2016 (US$ million) 830 2% 26,288 (111) 26,177 605 24,149 Mar 2015 Disposals Mar 2015 Volume Price / mix Mar 2016 Acquisitions FX Mar 2016 Reported (adj. for
Slide 42: EBITA components of growth
Organic, Organic,constant constantcurrency currency Components of growth +8.2%, growth +8% performance Year ended 31 March 6,852 12 (1,054) 2016 (US$ million) 517 6,367 (32) 6,335 5,810 Mar 2015 Disposals Mar 2015 (adj. Underlying Mar 2016 Acquisitions FX Mar 2016 Reported for disposals) growth orga
Slide 43: Currency exchange rates
Year ended 31 March 2016 Appreciation/ Appreciation/ Average rate* Closing rate (Depreciation) (Depreciation) 2016 2015 % 2016 2015 % Australian dollar (AUD) 1.36 1.15 (16) 1.31 1.31 1 South African rand (ZAR) 13.78 11.08 (20) 14.77 12.13 (18) Colombian peso (COP) 2,922 2,097 (28) 3,022 2,576 (14) E
Slide 44: EPS and dividend growth by currency
Year ended 31 March 2016 17% 8% 1% (6)% EPS (US dollar) EPS (British EPS (South Dividend per pounds) Africa rand) share (US dollar) © SABMiller 2016 43
Slide 45: End