Slide 1: Carlos Brito CEO
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Slide 2: Welcome to Guangzhou
Welcome to Guangzhou ©AB InBev 2015 – All rights reserved 2
Slide 3: Agenda
Agenda • AB InBev today • Our plans for the future • Growth Driven Platforms • Commercial Priorities ©AB InBev 2015 – All rights reserved 3
Slide 4: AB InBev today
AB InBev today ©AB InBev 2015 – All rights reserved 4
Slide 5: AB InBev
AB InBev One of the world’s top-five consumer goods companies • Largest brewer in the world • Owns 7 of the world’s top 10 most valuable brands, according to BrandZ • Employs 155,000 people in over 25 countries with sales in almost 200 countries • 2014 Results • Total beer volume 408 million hls • T
Slide 6: Each of our six zones generated over one billion dollars of EBITDA in 2014
Each of our six zones generated over one billion dollars of EBITDA in 2014 2014 Volumes 2014 Net Revenues 2014 EBITDA 2% 6% 11% 5% 18% 7% 26% 34% 7% 37% 10% 10% 9% 6% 8% 31% 10% 24% 12% 27% Latin America South Europe Asia Pacific GEHC North America Mexico Latin America North Note: GEHC is the Global
Slide 7: Healthy balance between developed and developing markets
Healthy balance between developed and developing markets 2014 Volumes 2014 Net Revenues 2014 EBITDA 34.6% 46.9% 42.8% 53.1% 57.2% 65.4% Developing market Developed market Note: For the purpose of this analysis, North America and Europe (less Russia and Ukraine) have been treated as Developed. All ot
Slide 8: Best in class Total Shareholder Return through sustainable top line growth
Best in class Total Shareholder Return through sustainable top line growth, cost efficiency, margin enhancement, strong cash flow generation and disciplined capital allocation Annualized Shareholder Return (2009 to 2015) 25% 20.4% 20% 19.0% 15% 14.3% 13.8% 13.5% 12.8% 12.6% 12.5% 11.5% 11.4% 10% 8.0
Slide 9: Dream – People – Culture
Value creation driven by a simple and consistent business model, underpinned by our powerful Dream - People - Culture platform Leadership Markets Brands Financial Discipline •Focus on a few •Focus markets •Focus Brands •Focus on Cash Generation big things •Largest profit pools •Brand health today =
Slide 10: Leadership: Scale drives operating leverage
Leadership: Scale drives operating leverage AB InBev EBITDA is more than 30% larger than our four largest competitors combined 2014 EBITDA (USD billion) 20,000 18,542 60% EBITDA Margin 15,000 39% 31% 40% 10,000 23% 24% 6,939 20% 4,370 20% 5,000 2,065 798 0 0% ABI SAB Miller Heineken Carlsberg Molson
Slide 11: Markets: We hold the No. 1 position in 4 of the 5 largest profit pools
Markets: We hold the No. 1 position in 4 of the 5 largest profit pools in the world The top five markets account for over 50% of the global profit pool $ US Billions 9,000 8,507 8,000 7,000 Denotes markets where AB InBev holds the No.1 position in terms of market share 6,000 5,000 4,256 4,000 3,000
Slide 12: Markets: Well positioned to benefit from future growth markets
Markets: Well positioned to benefit from future growth markets Expected Volume Growth: 2014-2025 M of HL 34% 2,164 3% 2% 2% 6% 6% 7% 9% 31% 1,859 Denotes markets where AB InBev has an operational presence 2014 China Brazil India Mexico Vietnam USA Nigeria Thailand Others 2025 Source: China: Seema fo
Slide 13: Brands: Focused on brands with the greatest growth potential
Brands: Focused on brands with the greatest growth potential Focus Brands Volumes as a % of 2014 Volume Focus Brands Revenues as a % of 2014 Revenue Global Global All Other Brands, Brands, All Other Brands, 18.8% 20.0% Brands, 31.9% 36.1% Other Focus Other Focus Brands, Brands, 49.3% 43.9% Total Foc
Slide 14: Brands: Unparalled portfolio of global, international and local champion brands
Brands: Unparalled portfolio of global, international and local “champion” brands Global International brands brands Examples of “local champions” ©AB InBev 2015 – All rights reserved 14
Slide 15: Brands: A portfolio of billion-dollar brands
Brands: A portfolio of 16 “billion-dollar brands” Budweiser 10.4 Bud Light 10.2 35 Skol 7.1 NESTLE Brahma 5.4 30 Corona Family 4.5 # of Billion Dollar* Brands 25 Antarctica 3.6 P&G PEPSI Stella Artois 2.5 20 COKE Busch 2.5 AB-INBEV 15 Harbin 2.4 UNILEVER Cass 2.0 10 Natural Light 1.7 5 Beck's 1.6 Mi
Slide 16: Brands: 4 of the top 5, and 7 of the top 10, most valuable beer brands
Brands: 4 of the top 5, and 7 of the top 10, most valuable beer brands in the world Top brands Company BrandZ value in US$ Billion 1 13.8 2 12.9 3 Heineken Heineken 9.7 4 8.7 5 8.5 6 8.5 7 Guinness Diageo 5.0 8 4.2 9 Coors Light Molson Coors 3.9 10 3.6 Source: 2015 BrandZ Beer Report - http://www.br
Slide 17: Brands: Our brands and our scale allow us to secure the most critical properties
Brands: Our brands and our scale allow us to secure the most critical properties FIFA World Cup National Football League SuperBowl Wimbledon 2016 Olympics Chinese New Year Budweiser Music Festivals World Surf League Tomorrowland Belgium Brazil Carnival ©AB InBev 2015 – All rights reserved 17
Slide 18: Dream – People - Culture defines who we are and how we behave
Dream – People - Culture defines who we are and how we behave ©AB InBev 2015 – All rights reserved 18
Slide 19: Our plans for the future
Our plans for the future ©AB InBev 2015 – All rights reserved 19
Slide 20: Great and enduring companies have three common characteristics
Great and enduring companies have three common characteristics 1. Deliver consistent and superior financial results 2. Over time, they adapt the way they operate to remain relevant and respected 3. Make their brands indispensable; loved by consumers Implications for AB InBev • Grow top-line faster •
Slide 21: Top-line: Solid performance – but we want to accelerate the rate of growth
Top-line: Solid performance – but we want to accelerate the rate of growth Net Revenue Organic Growth 2014 7.0% 5.9% 6.0% 5.0% 5.0% 5.0% 4.5% 4.0% 4.0% 4.0% 3.0% 3.0% 2.9% 3.0% 2.0% 2.0% 1.0% 1.0% 0.3% 0.0% Notes: 1. P&G and Diageo is for year ended June 2015 due to a reporting year ending June 2. S
Slide 22: Growth Driven Platforms provide a framework for understanding demand for total alcohol
Growth Driven Platforms (GDPs) provides a framework for understanding the demand for total alcohol Relaxation & Bonding Food & Savor Getting together to Finding the perfect beer share good times to accompany great meals Changing the Mood Serving up a Great Night Out Breaking out of the routine and B
Slide 23: Growth Driven Platforms: Relaxation & Bonding
Growth Driven Platforms (GDPs) Relaxation & Bonding… the most important GDP today Getting together to share good times—to relax and unwind, strengthen existing friendships, or make new ones—has always been an important part of beer’s universal appeal. © AB InBev 2015 – All rights reserved 23
Slide 24: Growth Driven Platforms: Food & Savor
Growth Driven Platforms (GDPs) Food & Savor… a big opportunity Food has become a passion point for our consumers, especially among millenials. And often, the right accompaniment for a great dish is not a glass of wine – but a distrinctive and sophisticated beer or cider. ©AB InBev 2015 – All rights
Slide 25: Growth Driven Platforms: Changing the Mood
Growth Driven Platforms (GDPs) Changing the Mood… a new frontier for brewed products At the end of a long day, people want to get together with friends and shift into another gear; they feel the desire to treat themselves, break out of the routine and have a little fun. © AB InBev 2015 – All rights
Slide 26: Growth Driven Platforms: Serving up a Great Night Out
Growth Driven Platforms (GDPs) Serving up a Great Night Out… an area where beer has been under-represented We have intensified our efforts to scale up our brands’ presence in bars, clubs, restaurants and other outside premises. © AB InBev 2015 – All rights reserved 26
Slide 27: GDPs help frame our long term commercial priorities
GDPs help frame our long term commercial priorities Key Goals Commercial Priority Description 1. Protect and improve Elevate Protect and improve the performance of our core brands by communicating both functional and emotional the base the core benefits 2. Scale-up proven Grow our Leverage the stren
Slide 28: Elevate the core
Elevate the core Focus on elevating the perception and relevance of core lagers amongst key demographics Unique Packaging & Differentiated Messaging LDA Recruitment Trade Execution Deliver emotional & functional High quality on and off-trade & package design Connecting to millennials through benefit
Slide 29: Grow our Global Brands
Grow our Global Brands Complementary brands, each having its own distinct brand imagery and consumer positioning The Great American Lager, The world’s Embodies Brewed with number one the spirit of time-honored Mexican beer perfection methods +5.9% volume growth +5.8% volume growth +2.5% volume growt
Slide 30: Develop the Near Beer segment
Develop the Near Beer segment: Provide consumers with alternatives to hard liquor MixxTail Skol Beats Senses Ritas Oculto ©AB InBev 2015 – All rights reserved 30
Slide 31: Premiumize and Invigorate beer
Premiumize and Invigorate beer • Redefine and shape our industry • Craft initiatives • Disruptive Growth Agenda Packaging, Equipment and Brew Pubs E-commerce Mobile Appliances © AB InBev 2015 – All rights reserved 31
Slide 32: Summary
Summary • Best in class Total Shareholder Returns • Simple and consistent business model • Power of the Dream-People-Culture platform • Great and enduring companies • Growth Driven Platforms (GDPs) • Commercial priorities © AB InBev 2015 – All rights reserved 32