Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — FY2011 Earnings Presentation
43 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, May 19, 2011
Slide 1: SABMiller plc Full year results
SABMiller plc Full year results Twelve months ended March 31, 2011 Malcolm Wyman, CFO Gary Leibowitz, SVP-IR May 19, 2011
Slide 2: Forward looking statements
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
Slide 3: Overview: Excellent financial results
Overview Excellent financial results Excellent 12% underlying EBITA growth delivery 1 – Adjusted EPS up 19% Solid revenue performance driven by volume and price growth – Revenue/hl up 3% Fixed cost savings funded increased marketing investment and drove higher margins 2 – 120bps margin expansi
Slide 4: Overview: Improved volume and revenue growth
Overview Improved volume and revenue growth Improved volume performance through the year Lager volume growth – Lager volumes up 2%, accelerating in H2 – Growth led by frontier markets Moderate price increases and positive portfolio mix in most markets •Africa excluding Zimbabwe volumes. ©With Zi
Slide 5: Divisional highlights: Latin America margin improvement
Divisional highlights Latin America: ongoing margin improvement Continued margin expansion – Selective price increases Latin America margin expansion – Lower raw material input costs 28% – Sustained focus on fixed cost +210bps 26% productivity +210bps 24% 22% +100bps 25.6% Volume and share growt
Slide 6: Divisional highlights: Latin America revenue growth management
Divisional highlights Latin America: revenue growth management Premium extensions Price index 120-135 Price index 110-120 © SABMiller plc 2011 Prelims May 2011
Slide 7: Divisional highlights: Europe price discipline
Divisional highlights Europe: maintaining price discipline Slow, sporadic consumer recovery Strong cost management driving improved profitability – Cost restructuring in Romania, Netherlands, Italy, Canaries Managing for long term value in the face of competitor price weakness – Strong UK and
Slide 8: Divisional highlights: North America brand execution
Divisional highlights North America: focus brand execution In soft environment, gaining market Premium Lights segment share* share in premium lights F10 Q4 F11 Q1 F11 Q2 F11 Q3 F11 Q4 – Coors Light continued strength 0.5 – Miller Lite recovery 0.4 Premium Lights share change 0.3 Miller Lite Coors
Slide 9: Divisional highlights: North America brand execution
Divisional highlights North America: focus brand execution In soft environment, gaining market share in premium lights – Coors Light continued strength +25% – Miller Lite recovery Improved execution driving marketplace wins – Chain relationships and category management – C-store execution – Hisp
Slide 10: Divisional highlights: Africa investments delivering
Divisional highlights Africa: investments delivering Accelerated strong growth – Double digit lager volume growth* in every quarter – 9% lager growth ex-Zimbabwe 2011 Africa lager volume growth* Fuller portfolios enhancing the category and gross margins Capacity and capability expansion delive
Slide 11: Divisional highlights: Africa investments delivering
Divisional highlights Africa: investments delivering Accelerated strong growth – Double digit lager volume growth* in every quarter – 9% lager growth ex-Zimbabwe Fuller portfolios enhancing the category and gross margins Capacity and capability expansion delivering volume growth Recovery in
Slide 12: Divisional highlights: Africa investments delivering
Divisional highlights Africa: investments delivering Accelerated strong growth – Double digit lager volume growth* in every quarter – 9% lager growth ex-Zimbabwe Fuller portfolios enhancing the category and gross margins New footprint Capacity and capability since F09 expansion delivering volu
Slide 13: Divisional highlights: South Africa execution driving growth
Divisional highlights South Africa: execution driving growth Excellent operational performance Castle Lite growth resulting in market share stabilisation 2,500 38% 37% – Rising premium segment share for 2,000 Castle Lite, the segment leader 36% – Strong mainstream brand growth % share of premium 1
Slide 14: Divisional highlights: Asia continued expansion
Divisional highlights Asia: continued expansion CRSnow market share up to 21% – Extended Snow brand leadership with market share now over 19% Revenue management – Price increase to cover costs – Success of premium Snow variants – Margin in double digits in certain areas India growth in ‘less c
Slide 15: Four strategic priorities
Four strategic priorities Creating a Developing strong, Constantly raising balanced and relevant brand the profitability Leveraging our attractive portfolios that win of local businesses, skills and global global spread of in the local sustainably scale businesses market © SABMiller plc 2011 Prelims
Slide 16: Strong, relevant local portfolios: Latin America
Strong, relevant local portfolios Capturing new consumers in Latin America Persuading alcohol consumers Persuading beer consumers to to prefer beer drink beer on more occasions …from traditional products On the go…in small bottles With meals…in and out of home …from expensive spirits At ev
Slide 17: Strong, relevant local portfolios: Premium portfolios
Strong, relevant local portfolios Building differentiated premium portfolios United States of America 1 United Kingdom 3 + 15% +23% Seasonal craft variants Beers of the world Latin America +20% 2 Mozambique +46% 4 Upper mainstream and local premium Laurentina Preta dark lager 1. MillerCoors craft po
Slide 18: Strong, relevant local portfolios: Mainstream brands
Strong, relevant local portfolios Strengthening mainstream brands United States Italy 1 3 Miller Lite +0.5pts PL share trend Peroni (original) + 4% revenue/Hl Tanzania South Africa 2 4 Kilimanjaro +8% Castle Lager +14% 1. AC Nielsen Premium Light combined channel share for 52 week periods ended 26/0
Slide 19: Strong, relevant local portfolios: Commercial capabilities
Strong, relevant local portfolios Continue to improve commercial capabilities Trade terms management in Czech Profitable revenue management in the Republic Czech republic From To – Maximising long-term category value Transactional Strategic – Brand/pack/channel price architecture Pay for importanc
Slide 20: Raising the profitability of businesses sustainably
Raising the profitability of businesses sustainably Efficiency and supply chain management in Colombia – Productivity savings, brewery closure EBITA margin growth in Colombia – Sales and distribution efficiencies 1,000 +240bps – Headcount productivity 800 BPS EBITA Margin 600 +365bps 400 Regiona
Slide 21: Developing local supply chains
Raising the profitability of businesses sustainably Developing local supply chains Local barley self-sufficiency In Africa, reducing reliance on imports 100% – Historically, >80% imported F10 grains 80% F11 F12e 60% Cost savings through local raw 40% material substitution – Local farm communitie
Slide 22: Leveraging our skills and global scale
Leveraging our skills and global scale Business capability programme progress Procurement Brewing raw materials Malt & Barley Hops Maize Global organisation in place Packaging materials Glass & Crowns US$2 billion in expenditure Paper & Labels centrally managed Plastic crates Direct financial
Slide 23: Strong growth in EPS and dividends
Strong growth in EPS and dividends Adjusted EPS – US $ +19% – Sterling +23% – Rand +9% – Euro +28% Annual Dividend: 81 US cents per share – Up 19% © SABMiller plc 2011 Prelims May 2011
Slide 24: Very strong full year financial performance
Very strong full year financial performance Total volumes of 270.1 mhl * +3.3% – Organic * +2.6% Lager organic volumes * +2.0% Organic group revenue * +7.1% – Constant currency * +5.2% Organic EBITA * +15.1% – Constant currency * +12.4% EBITA margin * +120 bps – Constant currency * +110 bp
Slide 25: Revenue benefits from good volume growth and pricing
Revenue benefits from good volume growth and pricing Group Revenue (including associates and joint ventures) components of performance, US$m 1.9% 7.1% 0.3% 28,311 2.6% 2.6% 26,350 Mar '10 Volume Price/mix Currency Mar '11 Acquisitions Mar '11 Organic © SABMiller plc 2011 Prelims May 2011
Slide 26: Strong underlying EBITA growth
Strong underlying EBITA growth EBITA (including associates and joint ventures) components of performance, US$m 2.7% 15.1% 0.0% 5,044 12.4% 4,381 Mar '10 Underlying Currency Mar '11 Acquisitions Mar '11 Organic © SABMiller plc 2011 Prelims May 2011
Slide 27: Lower full year input costs
Lower full year input costs Full year constant currency decrease per hl – Total raw materials - Down 1% – Total COGS - Down 1% Lower barley prices, particularly in the first half, drive brewing raw material costs down Strength of key local currencies benefits input costs Distribution costs r
Slide 28: Business capability programme
Business capability programme Continuing progress with implementation – Trinity Procurement now handles: – most packaging requirements (H2); – brewing raw materials (H1); – some non-production spend. – European manufacturing organisation – Sales and distribution system roll out continues in Latam
Slide 29: Cash flow and taxation
Cash flow and taxation Adjusted EBITDA* up 12% to US$5,617m from US$5,020m Adjusted EBITDA* margin 120 basis points higher than prior year Working capital inflow US$66m Capex** down US$213m to US$1,315m Free cash flow*** improved by US$460m to US$2,488m Effective tax rate 28.2% * EBITDA
Slide 30: Net debt
Net debt US$m Mar 11 Mar 10 Non-current borrowings 7,115 7,809 Current borrowings 1,345 1,605 Cash and cash equivalents (1,071) (779) Borrowing related derivative financial instruments (298) (237) Net debt 7,091 8,398 Adjusted net finance costs * 518 538 Gearing (%) 31.2 40.8 Adjusted EBITDA Interes
Slide 31: Net debt profile and maturity
Net debt profile and maturity Debt profile Debt Maturity 17% 0 – 1 Year US$ 287m 37% Dollars Euros Rand 16% 1 – 2 Years US$ 590m Peso Other 2 – 5 Years US$ 4,383m 9% 21% Over 5 Years US$ 1,831m © SABMiller plc 2011 Prelims May 2011
Slide 32: Financial outlook – current financial year
Financial outlook – current financial year Continued growth in consumer demand across most emerging markets – But the outlook in Europe and the US remains uncertain Raw material input costs expected to rise moderately – Total raw materials per hl* Up low single digits – Total COGS per hl* Focu
Slide 33: Conclusion
Conclusion Growth continuing in most developing markets; recovery sporadic in developed economies Selective price increases to continue, tempered by competitive pressure and our focus on affordability Our organic growth strategies remain consistent, developing the beer category and our leading
Slide 34: SABMiller F11 results Q&A
SABMiller F11 results Q&A © SABMiller plc 2011 Prelims May 2011
Slide 35: Supplementary information
Supplementary information MILLER
Slide 36: Reported EBITA contribution
Reported EBITA contribution EBITA contribution* March 2010 March 2011 Latin America 3% 3% Europe 19% 20% 31% 31% North America Africa 2% 2% Asia 12% South Africa 13% Beverages Hotels & Gaming 19% 17% 14% 14% * Before corporate costs © SABMiller plc 2011 Prelims May 2011
Slide 37: Financial results
Financial results US$m Mar 11 Mar 10 Change % Reported currency Group revenue 28,311 26,350 7 EBITA 5,044 4,381 15 EBITA margin (%) 17.8 16.6 120 bps Sales volumes (hl’000) Total 270,099 261,447 3 Lager 217,659 212,576 2 Soft drinks 45,875 43,509 5 Other alcoholic beverages 6,565 5,361 22 © SABMille
Slide 38: Reported EBITA margin performance
Reported EBITA margin performance March 10 March 11 25.6% 23.5% 20.8% 19.9% 19.1% 18.5% 17.8% 16.4% 16.6% 15.6% 14.2% 11.8% 4.1% 4.6% Latin America Europe North Africa Asia SA Group America Beverages © SABMiller plc 2011 Prelims May 2011
Slide 39: EBITA margin performance
EBITA margin performance Organic, constant currency basis March 10 March 11 25.6% 23.5% 20.8% 20.2% 19.1% 18.5% 17.7% 16.3% 16.6% 15.6% 14.2% 11.8% 4.1% 4.6% Latin America Europe North Africa Asia SA Group America Beverages © SABMiller plc 2011 Prelims May 2011
Slide 40: Reported volumes
Reported volumes* Reported Domestic Lager volumes Mar 11 Change % by country hl ‘000 South Africa 26,302 2 Colombia 18,018 (6) Poland 14,082 (4) Peru 11,272 10 Czech 6,935 (6) Russia 5,605 - Ecuador 5,193 1 Romania 4,885 (8) India 4,460 10 Italy 3,380 (4) Tanzania 2,749 5 China * 46,352 11 * equity
Slide 41: Net debt
Net debt Mar 11 Mar 10 Average interest rate (gross debt) – % 5.9% 5.7% Net debt currency profile* US dollars 37% 31% Euro 21% 23% SA rand 9% 9% Colombian peso 16% 21% Other 17% 16% 100% 100% * Including the effect of derivatives © SABMiller plc 2011 Prelims May 2011
Slide 42: Exchange rates
Exchange rates Closing rates currency vs US$ 31 Mar 11 30 Sep 10 31 Mar 10 Colombia 1,879 1,800 1,929 Peru 2.80 2.79 2.84 Honduras 18.90 18.90 18.90 Euro 0.71 0.73 0.74 Poland 2.84 2.91 2.86 Czech Republic 17.27 18.03 18.87 Russia 28.43 30.40 29.36 Romania 2.91 3.13 3.03 Hungary 187.69 202.57 196.88
Slide 43: Balance sheet
Balance sheet US$m Mar 11 Mar 10* Goodwill and Intangibles assets 16,313 15,933 Property, plant and equipment 9,330 8,915 Investment in joint ventures and associates 8,532 8,035 Other non-current assets 689 721 Current assets excluding cash 3,111 3,116 Cash and cash equivalents 1,067 779 Assets of d