Slide 1: 2Q23 Results
2Q23 Results August 3, 2023
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 2Q23 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 2023 – All rights reserved | 3
Slide 4: Operating performance highlights
Operating performance highlights © AB InBev 2023– All rights reserved | 4
Slide 5: 2Q23 operating performance
2Q23 operating performance Total volumes -1.4% Revenue per hl growth Own beer -1.8% and non-beer +0.5% 12.4% 11.2% Total revenue +7.2% 9.0% Revenue per hl +9.0% 8.6% 5.5% EBITDA +5.0% 4.5% EBITDA margin of 32.5% 3.1% 2.1% Underlying EPS of $0.72 FY18 FY19 FY20 FY21 FY22 4Q22 1Q23 2Q23 © AB InBev 202
Slide 6: Diversified footprint provides a unique platform to lead & grow the category
Diversified footprint provides a unique platform to lead & grow the category, delivering revenue growth in over 85% of our markets EMEA 12% EBITDA contribution1 +12.0% North America Organic revenue 27% EBITDA contribution1 2Q23 +7.2% Organic EBITDA -9.0% Organic revenue 2Q23 -24.4% Organic EBITDA AP
Slide 7: North America
North America United States Revenue declined by 10.5% impacted by volume 2Q23 performance • Performance impacted by volume decline of Bud Light • Market share has been stable since late-April Total Volume - 14.1% • Continue to invest for the long-term in our brands and partners Net Revenue / hl + 5.
Slide 8: Consumers love – e.g., NFL, Folds of Honor, Music
Actively engaging with thousands of consumers, regardless of favorability, most consumers agree they want: 1. 1 Their beer without a debate 2. 2 Bud Light to focus on beer 3. 3 Bud Light to concentrate on platforms that all our consumers love – e.g., NFL, Folds of Honor, Music Source: AB market rese
Slide 9: Market share has been stable since late-April
Market share has been stable since late-April ABI Share (%) 36 0 WE May-23 Jun-23 Jul-23 MTD WE 30-Apr-2023 23-Jul-2023 YoY Share Change (%) (5.20) (5.63) (5.42) (5.36) (5.26) Source: Circana through week ending 23-July-2023 © AB InBev 2023 – All rights reserved | 9
Slide 10: Approximately two thirds of US EBITDA decline driven by market share performance
Approximately two thirds of US EBITDA decline driven by market share performance US EBITDA decline Market share performance ~2/3 ~1/3 Productivity loss, S&M investments and support measures © AB InBev 2023 – All rights reserved | 10
Slide 11: Middle Americas
Middle Americas Mexico Double-digit top- and bottom-line growth with continued 2Q23 market share gain • Above core portfolio grew revenue by mid-teens Total Volume + 0.3% Net Revenue / hl + 9.9% Net Revenue + 10.2% Colombia High-single digit top- and double-digit bottom-line growth EBITDA + 15.4% •
Slide 12: South America
South America Brazil High-single digit top-line and double-digit bottom-line 2Q23 growth with margin expansion • Performance led by premium and super premium brands, growing volumes in the mid-thirties Total Volume - 1.9% Net Revenue / hl + 26.2% Net Revenue + 23.8% Argentina • Revenue increased by
Slide 13: EMEA
EMEA Europe High single digit top- and bottom-line growth 2Q23 • Premium and super premium portfolio delivered double- digit revenue growth Total Volume - 0.1% Net Revenue / hl + 12.0% Net Revenue + 12.0% South Africa Double digit top-line growth with continued market share gain EBITDA + 7.2% • Carl
Slide 14: Asia Pacific
Asia Pacific China Double-digit top- and bottom-line growth 2Q23 • Volume growth across all segments of our portfolio, led by premium and super premium, which grew mid-twenties Total Volume + 9.5% Net Revenue / hl + 4.6% Net Revenue + 14.5% South Korea • Volumes declined low-single digits as we cycl
Slide 15: Sustainability highlights
Sustainability highlights © AB InBev 2023 – All rights reserved | 15
Slide 16: Advancing our sustainability priorities to support our commercial vision
Advancing our sustainability priorities to support our commercial vision Climate Action Smart Agriculture Water Stewardship Circular Packaging -39.2% 89% 14.3% 77% Products in packaging that Reduction in Scopes 1 & 2 Improvement in water Direct farmers skilled was returnable or made from emissions s
Slide 17: Update on our strategic pillars
Update on our strategic pillars © AB InBev 2023 – All rights reserved | 17
Slide 18: 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 2023 – All rights reserved | 18
Slide 19: 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 Participation increased Mainstream portfolio ~30% revenue growth of Above core portfolio Contributed over $385m across key markets in delivered mid-s
Slide 20: Our global brands delivered 18.4% revenue growth in 2Q23
Our global brands delivered 18.4% revenue growth in 2Q23 Outside of their home markets, where they command a premium price vs. 2Q22 vs. 2Q22 vs. 2Q22 +23.7% +14.5% +16.9% 2Q23 revenue outside Mexico1 2Q23 revenue outside Belgium 2Q23 revenue outside the US Notes 1. Excludes exports to Australia for
Slide 21: 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 2023 – All rights reserved | 21
Slide 22: BEES continues to expand and empower our customers
BEES continues to expand and empower our customers June 2022 June 2023 YoY Monthly Active Users 2.9m 3.3m +15% (“MAU”) >98% digital retention 2 Gross Merchandise Value ~$7.4bn ~$9.2bn +30% (“GMV”) 2Q22 2Q23 Net Promoter Score +50 +60 +10 (“NPS”) 1 Marketplace Markets 12 15 +3 Marketplace buyers 40%
Slide 23: Scaling our digital direct-to-consumer products
Scaling our digital direct-to-consumer products Over Over Reaching Active $115m 2Q23 revenue 16.5m 2Q23 online orders 9.8m Consumers R12M PerfectDraft On-Demand Zé Delivery TaDa Delivery Rewards Program Launched in April ~300k 1.6m ~2m 2Q23 2Q23 Orders Active households Rewards members in (+116%YoY)
Slide 24: Optimize our business
3 1 Optimize our Lead and grow Optimize our business the category business 2 Digitize and monetize our ecosystem © AB InBev 2023 – All rights reserved | 24
Slide 25: Maximizing value
Maximizing value Optimized resource allocation Robust risk management Efficient capital structure © AB InBev 2023 – All rights reserved | 25
Slide 26: Dynamically balancing capital allocation priorities to maximize value creation
Dynamically balancing capital allocation priorities to maximize value creation Deleveraging Invest behind organic growth Selective Return of M&A Capital © AB InBev 2023 – All rights reserved | 26
Slide 27: Creating value through deleveraging, with ~90% of value to be captured
Creating value through deleveraging, with ~90% of value to be captured as we progress towards 3.0x Value Creation 2.0X <2.0X 3.0X 3.51X FY22 3.70X 1H23 3.86X 1H22 4.37x 1H21 Net Debt / EBITDA Lower Leverage © AB InBev 2023 – All rights reserved | 27
Slide 28: Continued focus on deleveraging as net leverage reached 3.70x
Continued focus on deleveraging as net leverage reached 3.70x 1 1 Net Leverage (x) Net Debt ($B) LTM EBITDA ($B) 4.86x 4.37x Net Debt impacted by: 87.4 3.86x 83.4 3.70x 75.9 1 Seasonality of cash flows 73.8 2 Higher dividend payment 19.7 19.9 19.1 18.0 3 FX headwinds Jun-20 Jun-21 Jun-22 Jun-23 Note
Slide 29: Well-distributed bond maturity profile with very manageable coupon
Well-distributed bond maturity profile with very manageable coupon and limited medium-term refinancing needs ~$3Bn ~4% ~14 yrs maturing through 2025 Pre-tax coupon weighted average maturity 12 10 Principal ($B) 8 6 4 2 0 2028 2023 2024 2025 2026 2027 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Slide 30: Bond portfolio is diversified across currencies and 96% fixed rate
Bond portfolio is diversified across currencies and 96% fixed rate Diverse currency mix reduces risk 96% of our bond portfolio is fixed rate 6% CAD Floating rate 3% KRW 2% GBP 4% 3% Other 28% 58% EUR USD 96% Fixed rate Note: Represents full bond portfolio as of June 30th, 2023, after hedging © AB In
Slide 31: Underlying EPS remained stable at $0.72
Underlying EPS remained stable at $0.72 0.12 0.12 0.02 0.73 0.01 0.04 0.72 0.02 0.04 0.01 0.01 2Q22 Normalized Normalized Depreciation Net interest Other Income tax Associates Hyperinflation Brazil tax 2Q23 EBITDA EBITDA FX & expense financial expense & Non- impacts credits organic & scopes amortiza
Slide 32: 2Q23 Takeaways
2Q23 Takeaways © AB InBev 2023 – All rights reserved | 32
Slide 33: Superior platform to deliver long-term value creation
Superior platform to deliver long-term value creation Another quarter of Global leader in big, profitable profitable growth and growing beer category 3 1 • 5.0% organic EBITDA growth • Double-digit top-line growth in four Optimize our Lead and grow the of five operating regions • $0.72 Underlying EP
Slide 34: Q&A
Q&A © AB InBev 2023 – All rights reserved | 34