Anheuser-busch Inbev Sa/nv · EURONEXT:ABI

Anheuser-busch Inbev Sa/nv — AB InBev — Q3 2023 Earnings Presentation

34 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Oct 31, 2023

  1. Slide 1: 3Q23 Results

    3Q23 Results October 31, 2023

  2. Slide 2: Legal disclaimer

    Legal disclaimer Certain s tatements contained in this report tha t a re not s tatements of histori cal fa ct cons ti tute forwa rd-looking sta tements , notwi thstanding tha t such sta tements a re not specifi call y identi fied. In addi tion, certain s ta tements ma y be contained in the future fi

  3. Slide 3: Agenda

    Agenda 01 3Q23 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

  4. Slide 4: Operating performance highlights

    Operating performance highlights © AB InBev 2023– All rights reserved | 4

  5. Slide 5: 3Q23 operating performance

    3Q23 operating performance Revenue per hl growth Total volumes -3.4% 12.4% Own beer -4.0% and non-beer +1.4% 11.2% Total revenue +5.0% 8.6% 9.0% 9.0% Revenue per hl +9.0% EBITDA +4.1% 5.5% EBITDA margin of 34.9% 4.5% Underlying EPS of $0.86 3.1% Bond tender $3Bn 2.1% Share buyback $1Bn FY18 FY19 FY2

  6. Slide 6: Diversified footprint provides unique scale to lead & grow the category

    Diversified footprint provides unique scale to lead & grow the category, delivering revenue growth in ~80% of our markets EMEA 12% EBITDA contribution 1 +9.9% North America Organic revenue 24% EBITDA contribution 1 3Q23 +6.1% -12.7% Organic EBITDA Organic revenue 3Q23 -26.7% Organic EBITDA APAC 10%

  7. Slide 7: North America

    North America United States Revenue declined by 13.5% impacted by volume 3Q23 performance • Performance impacted by volume decline of Bud Light Total Volume - 17.1% • Market share has been stable since late-April • Continue to invest for the long-term in our brands and Net Revenue / hl + 5.3% partne

  8. Slide 8: Actively engaging with thousands of consumers

    Actively engaging with thousands of consumers Most consumers continue to agree, they want: 1. 1 Bud Light to concentrate on platforms that all our consumers love – e.g., NFL, Folds of Honor, Music, College football, UFC 2. 2 Bud Light to focus on beer 3. 3 Their beer without a debate Source: AB mark

  9. Slide 9: Market share has been stable since late-April

    Market share has been stable since late-April ABI Share (%) 36 WE May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 30-Apr-2023 MTD YoY Share (5.20) (5.63) (5.43) (5.36) (5.08) (5.00) (4.76) Change (%) Source: Circana data through week ending 22-Oct-2023 © AB InBev 2023 – All rights reserved | 9

  10. 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

  11. Slide 11: Middle Americas

    Middle Americas Mexico Mid-single digit top- and bottom-line growth 3Q23 • Above core portfolio continued to outperform Total Volume + 1.7% Net Revenue / hl + 9.3% Net Revenue + 11.1% Colombia Double-digit top- and bottom-line growth EBITDA + 14.5% • Core portfolio outperformed, delivering mid-teens

  12. Slide 12: South America

    South America Brazil Mid-single digit top-line and double-digit bottom- 3Q23 line growth with 628bps of margin expansion • Performance led by premium and super premium Total Volume - 2.2% brands, growing volumes in the low-teens Net Revenue / hl + 26.2% Net Revenue + 23.4% Argentina • Total volumes

  13. Slide 13: EMEA

    EMEA Europe Low-single digit top- and bottom-line growth 3Q23 • Premium and super premium portfolio delivered mid- single digit revenue growth Total Volume - 1.5% Net Revenue / hl + 11.7% Net Revenue + 9.9% South Africa Double digit top- and mid-single digit bottom-line EBITDA + 6.1% growth • Core p

  14. Slide 14: Asia Pacific

    Asia Pacific China High-single digit top- and bottom-line growth 3Q23 • Performance led by premium and super premium brands, which grew volumes by more than 10% Total Volume + 0.2% Net Revenue / hl + 4.9% Net Revenue + 5.1% South Korea • Volumes declined mid-single digits in soft industry which EBIT

  15. Slide 15: Update on our strategic pillars

    Update on our strategic pillars © AB InBev 2023 – All rights reserved | 15

  16. Slide 16: Lead and grow the category

    Lead and grow the category © AB InBev 2023 – All rights reserved | 16

  17. Slide 17: Lead and grow the category: 5 category expansion levers

    Lead and grow the category: 5 category expansion levers 1 2 3 4 5 Category Core Superiority Occasions Premiumization Beyond Beer Participation Development Participation increased Mainstream portfolio >10% revenue growth Above core portfolio Contributed over or remained stable in delivered mid-single

  18. Slide 18: Global brands driving premiumization across key occasions

    Global brands driving premiumization across key occasions G L O B AL B R ANDS Unwind Project an Image Build Energy Create Bonds © AB InBev 2023 – All rights reserved | 18

  19. Slide 19: Global brands leading growth

    Global brands leading growth +15.1% 3Q23 Revenue growth +18.8% 3Q23 revenue growth Outside of their home markets, outside of Mexico 1 where they command a premium price +11.8% 3Q23 revenue growth outside of the US +20.3% 3Q23 revenue growth outside of Belgium +11.5% 3Q23 revenue growth outside of th

  20. Slide 20: Digitize and monetize our ecosystem

    Digitize and monetize our ecosystem © AB InBev 2023 – All rights reserved | 20

  21. Slide 21: BEES continues to expand and empower our customers

    BEES continues to expand and empower our customers September 2022 September 2023 YoY Monthly Active Users 3.1m 3.4m +11% (“MAU”) >98% digital retention 2 Gross Merchandise Value ~$7.7bn ~$10.4bn +27% 3 (“GMV”) 3Q22 3Q23 Net Promoter Score (“NPS”) 1 +53 +60 +7 Marketplace buyers % of current BEES buy

  22. Slide 22: Scaling our digital direct-to-consumer megabrands

    Scaling our digital direct- to-consumer megabrands 3Q22 3Q23 YoY Revenue $110m $125m +9% organic growth Online orders ~17m ~17m - Active Consumers (R12M) 8.9m 10.0m +12% © AB InBev 2023 – All rights reserved | 22

  23. Slide 23: Optimize our business

    Optimize our business © AB InBev 2023 – All rights reserved | 23

  24. Slide 24: Maximizing value

    Maximizing value Optimized resource allocation Robust risk management Efficient capital structure © AB InBev 2023 – All rights reserved | 24

  25. Slide 25: 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%1 89%1 14.3%1 77%1 Products in packaging that was Reduction in Scopes 1 & 2 Improvement in water efficiency Direct farmers skilled returnable or made f

  26. 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 M&A Return of Capital © AB InBev 2023 – All rights reserved | 26

  27. 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 3.96X FY21 Net Debt / EBITDA Lower Leverage © AB InBev 2023 – All rights reserved | 27

  28. Slide 28: Actively managed debt portfolio with manageable coupon and limited refinancing needs

    Actively managed debt portfolio with manageable coupon and limited medium-term refinancing needs Well-distributed bond 1 maturity profile with low average coupon Diverse currency mix 2 CNY Other 12 KRW 3% CAD 4% 3% 10 3% Principal ($Bn) 8 6 EUR 28% 59% USD 4 2 0 ~97% fixed rate 2 2030 2032 2034 2036

  29. Slide 29: Capital allocation decisions

    Capital allocation decisions $3 Billion Bond tender $1 Billion Share buyback program 1 Note: 1. Share buyback program to be executed over the next 12 months. Our current intention is to hold the shares acquired as Treasury Shares © AB InBev 2023 – All rights reserved | 29 to fulfil future share deli

  30. Slide 30: Underlying EPS grew by 3% to $0.86

    Underlying EPS grew by 3% to $0.86 Note: 1. Translational FX & scopes impact on Normalized EBITDA organic © AB InBev 2023 – All rights reserved | 30

  31. Slide 31: 3Q23 Takeaways

    3Q23 Takeaways © AB InBev 2023 – All rights reserved | 31

  32. Slide 32: Consistent execution of our strategy

    Consistent execution of our strategy Another quarter of Global leader in large and profitable growth growing category • 4.1% organic EBITDA growth • Continued top- and bottom-line growth in four of five operating regions • $0.86 Underlying EPS • Revenue growth in ~80% of our markets • Capital alloca

  33. Slide 33: Superior platform to deliver long-term value creation

    Superior platform to deliver long-term value creation © AB InBev 2023 – All rights reserved | 33

  34. Slide 34: Q&A

    Q&A © AB InBev 2023 – All rights reserved | 34

AB InBev — Q3 2023 Earnings Presentation on 6ix