Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — SABMiller — Barclays Capital Back to School Conference 2010
54 slides from Anheuser-Busch InBev SA/NV's conference presentation, Sep 7, 2010
Slide 1: SABMiller plc – Barclays Capital Back to School conference
SABMiller plc Barclays Capital Back to School conference September 7, 2010 Gary Leibowitz Senior Vice President, Investor Relations SABMiller plc Nehl Horton Chief Communication & Government Affairs Officer MillerCoors LLC
Slide 2: Forward looking statements
Forward looking statements This presentation includes ‘forward-looking statements’. These statements contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. All statements other than statements of historical facts included in this presentation, includi
Slide 3: SABMiller is a leading global beverage company
SABMiller is a leading global beverage company… World’s 2nd largest brewer # 1 or 2 position in > 90% of markets1 5 year revenue and EBIT CAGR of 13% The leading Coke bottler in Africa Revenue $b, F05-F10 EBIT $b, F05-F10 30 5 25 4 20 3 15 2 10 5 1 0 0 F'05 F'06 F'07 F'08 F'09 F'10 F'05 F'06 F'07 F'
Slide 4: Leading positions in our top markets
…with leading positions in our top 10 markets Poland #1 Russia #5 15mHl 6mHl MillerCoors #2 44mHl Czech #1 Romania #1 8mHl 6mHl Ecuador China #1 Colombia #1 #1 37mHl 5mHl 19mHl Peru #1 South Africa #1 10mHl 26mHl Country share position Volume* Market Share* *Market share and volume figures as of Mar
Slide 5: Delivering profit growth across a range of market maturities
….delivering profit growth across a range of market maturities North South Europe Latin America Africa Asia America Africa Volume 43.5 25.8 45.5 38.0 13.5 46.3 (m hls) F07-F10 volume -2% -1% 4% 3% 8% 14% CAGR F07-F10 EBITA 18% -7% 6% 15% 12% 4% CAGR Market Poland: 41% Colombia: 98% Tanzania: 75% Chi
Slide 6: Present in markets with the highest embedded growth rate
…present in markets which have the highest embedded growth rate... Projected lager volume growth rate % share of volume 2008 CAGR 2009-15 14 High growth markets: >5% 20 28 21 31 Medium growth markets: 2-5% 28 65 Low growth markets: <2% 49 44 SABMiller Peer #1 Peer #2 Source: “Strategic planning tool
Slide 7: Based on core economic and population fundamentals
..based on core economic and population fundamentals… Year-on-year real GDP growth, 2009-2015 5.1% 5.9% 5.7% (0.1)% 2009 2011 2013 2015 4.8% 5.3% 5.1% Peer #1 (1.2)% 2009 2011 2013 2015 4.5% 4.1% 2.8% Peer #2 (3.5)% 2009 2011 2013 2015 Source: “Strategic planning tool”; team, McKinsey analysis (Scen
Slide 8: Developing the beer category remains a prime opportunity
…where developing the beer category remains a prime opportunity… 100% 14% 90% 21% 80% 41% 4% 47% 70% 36% 68% 60% 30% 9% 50% 11% 40% 30% 2% 50% 50% 45% 43% 20% 30% 10% 0% North America Africa Asia Latin America East Europe Clear Beer Sorghum Beer Wine Spirits Growing preference for beer due to societ
Slide 9: Four strategic priorities
Four strategic priorities… Creating an attractive global spread of businesses Developing strong, relevant brand portfolios that win in local markets Constantly raising the profitability of local businesses sustainably Leveraging our skills and global scale ©SABMiller plc 2009 Barclays Back to School
Slide 10: Strategic priority
Strategic priority Strong, relevant brand portfolios that win in local markets 1. Expand Beer and other categories 2. Build a differentiated premium Expanding the category portfolio 3. Strengthen mainstream brands 4. Revenue management Driving affordability 5. Win with channel execution Making beer
Slide 11: Category expansion
Category expansion ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 12: Category expansion: affordability in Africa
Category expansion Affordability In Africa, there is significant opportunity to move consumers up to the commercial beer category 4-5 x commercial market Homemade brews & local spirits Opaque Affordable Mainstream Premium Source: Internal strategic analysis based on in depth market study of 10 Afric
Slide 13: Category expansion: Africa affordability strategy
Category expansion Affordability Clear Beer Portfolio: 2008 to 2010 Africa strategy to drive 80% affordability 64% We aim to halve the entry price of beer ½ and … 25% Double the market for x2 12% 12% premium beer while increasing price 8% Affordable Mainstream Premium ©SABMiller plc 2009 Barclays Ba
Slide 14: Category expansion: price index
Category expansion Affordability Price index: 110-140 Local Premium Lager Mainstream Price index: 100 Lager Affordable Price index: 70-80 Lager & Stout Commercial Price index: 50-70 sorghum Local spirits & Size: 4 to 5 times larger than Homemade the commercial alcohol market brews Price index: 20-50
Slide 15: Category expansion: affordability
Category expansion Affordability Millet/Maize/Sorghum based Cane spirits ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 16: Category expansion: local ingredients and Uganda example
Category expansion Affordability Develop local farms and local ingredients – Excise breaks up to 50% – Government and NGO partnerships Passing the financial benefit to consumers whilst maintaining margins – Affordable brand (e.g. Eagle franchise) indexed at 70% to mainstream Continue investing behin
Slide 17: Category expansion: affordability in China
Category expansion Affordability In China, we continue to drive affordability via scale and route to market initiatives Hours of work required to buy ½ L of mainstream beer 2007 2013 Source: WHO, Canadean, C-GIDD, Canback Dangel analysis ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 18: Category expansion: expanding beer occasions
Category expansion Expanding beer occasions Augment industry-leading beer Colombia need-state map consumer segmentation with Aspiration (Who I want to be) specific occasion segmentation Status Winding Up Upscale across total beverage market Quality 13.2% 19% Rumba 11% Allure 17% Traditional, Identif
Slide 19: Expanding beer occasions with packaging
Category expansion Expanding beer occasions… with packaging Smaller packs increase occasions Success of Aguilita in Colombia Increases affordability Increases consumption in hot climates 29% of incremental volume from outside beer category Venezuela: small pack (250ml) is the dominant pack Pilsener
Slide 20: Expanding beer occasions with brands
Category expansion Expanding beer occasions… with brands Redds in Colombia – Addresses non-beer consumers within bars, discos, and entertainment venues – Flavored beer oriented primarily to females when partying with friends o Consumption by females is 51% (27% beer) – 35% of volume from non beer –
Slide 21: Expanding beer occasions with channel execution
Category expansion Expanding beer occasions… with channel execution Primary focus has been on: – Continuing to improve beer availability – reduce stock outs – Increasing penetration in retail outlets – Enhancing consumer drinking experience o Cold culture o Freshness Major opportunities: – Implement
Slide 22: Expanding beyond beer
Category expansion Expanding beyond beer Expanding into Malt in Latin America & Africa Initial focus on increasing Ecuador volume share share of beer market We are “malt based” 26%* Subsequent focus was on increasing share of the alcohol We are alcohol market addressing: 44% – Consumer needs and occ
Slide 23: Expanding into malt in Latin America
Category expansion Expanding beyond beer Expanding into Malt in Latin America ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 24: Expanding into non-alcoholic beer in Europe
Category expansion Expanding beyond beer Expanding into non-alcoholic beer in Europe Birell volume growth (khls) 350 300 >60% 250 200 150 100 50 0 F07 F08 F09 F10 Birell Czech: #1 non-alcoholic beer in rapidly growing segment ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 25: Superior revenue management
Superior revenue management ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 26: Portfolio brand-pack-channel mix: Mozambique
Superior revenue management Portfolio brand-pack-channel mix Driving revenue and category growth in Mozambique Mozambique Pricing Architecture Price p/serving in Mzm Results F08-F10 55 Category growth > 40 10% 35 33 33 30 31 29 Local premium 24 20 20 growth >90% 14 15 15 Market share > 95% 2M Preta
Slide 27: Portfolio brand-pack-channel mix
Superior revenue management Portfolio brand-pack-channel mix 2M 340ml draught 2M 550ml RB Laurentina 340ml NRB Mainstream tavern Mainstream tavern On & off Premium outlet s 10-14 metical 30 metical 35 metical Unit costs ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 28: Single brand portfolio development in China
Superior revenue management Portfolio brand-pack-channel mix Single brand portfolio development in China Price segment SNOW variant Superior Super Premium Crystal Draft Premium Draft Medium Brushes & Brave the World Upper Mainstream Windows Mainstream Opera mask ©SABMiller plc 2009 Barclays Back to
Slide 29: Premiumization
Superior revenue management Premiumization Pilsner Urquell in Czech and Lech in Local premium % of portfolio Poland growing in tough conditions F07-F10 CAGR LatAm focus on local premium 1% 14% 13% 9% 37% 30% packaging innovation has driven 17% 3- year CAGR 25% 20% Castle Lite in South Africa up 8% i
Slide 30: Development and leadership of local premium segment
Superior revenue management Development and leadership of local premium segment North America Europe Latin America Asia South Africa Africa ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 31: Using scale and efficiency in Africa
Superior revenue management Development and leadership of local premium segment Using scale and efficiency in Africa Packaging & Brew Communication 1. Crystal Malt 2. Maluti/ Sibebe 3. 100% Malt 4. Preta (dark beer) ©SABMiller plc 2009 Barclays Back to School Conference 2010
Slide 32: Driving premium category aspiration in Latin America
Superior revenue management Premiumization Driving premium category aspiration in Latin America Over 80% of premium opportunity is local brands – Sell at 120 index vs. mainstream – Puts brand-led aspiration within reach Latest premium mix reaches 8.8%* almost double F07 – Primary focus on low/ middl
Slide 33: Leveraging our skills and global scale
Leveraging our skills and global scale Business capability programme highlights Objectives – Reduce local complexity by standardising back office – Lower costs with global procurement and back-office systems – Undivided in-country commercial focus Progress to date – Global procurement office establi
Slide 34: Nehl Horton, MillerCoors
Go to View>Master to Update Pres. Title Nehl Horton MillerCoors Chief Communications & Government Affairs Officer
Slide 35: Agenda
Agenda • Winning in Premium Lights • Winning in Craft & Imports • Building Commercial Capability • Delivering Results
Slide 36: Winning in Premium Lights
Winning in Premium Lights © MillerCoors Winning in Premium Lights Multicultural Consumers Distinct Positioning
Slide 37: Winning in Premium Lights - Distinct Positioning
Winning in Premium Lights - Distinct Positioning Fun & Liberation Sociability & Belonging • Social occasions, where energy level is higher • Social occasions with a focus on connecting with friends • Transformative consumer desire, leaving one mind state to • Grounding desire is purposeful, upbeat,
Slide 38: Winning in Premium Lights - Relevant Innovation
Winning in Premium Lights - Relevant Innovation 2010 2011 Brand Innovation Test Vortex Bottle and Coors Light CAW Super Cold Activation Launch Aluminum Pint Test Multi-Pack 20oz+ Aluminum 16oz Aluminum Pint (12-18pk) Bottle Miller Lite/Coors Light Home Draft HD Cooling Units 38
Slide 39: Winning in Premium Lights - Multicultural Connection
Winning in Premium Lights - Multicultural Connection Sponsorships Local market Innovation Culturally relevant programs Execution 39
Slide 40: Activation of Multicultural Sponsorships
Winning in Premium Lights - 360 Activation of Multicultural Sponsorships • 360 Activation creates bigness and engagement at retail • NFL, Primera Division, Gold Cup, Chivas, Essence, HBCU, TMCF, CIAA 40
Slide 41: Winning in Premium Lights - Great Creative
Winning in Premium Lights - Great Creative Coors Light Launch Coors Light Bullet Bar Miller Lite Man-Up Miller Lite George Lopez Integration 41
Slide 42: Winning in Craft & Imports: Vision and Mission
Winning in Craft & Imports Vision Passionate brewers and merchants of the world’s finest specialty beers, celebrating the joy of beer with our customers and consumers Mission Building the beer drinker’s beer company driving profitable growth and share of segment through understanding and celebrating
Slide 43: Tenth and Blake Vision of Success
Winning in Craft & Imports - Tenth and Blake Vision of Success Brand Portfolio - Consumer relevant growth portfolio Operating Model Distributor - Credible voice in the segment - Aligned portfolio ownership - Category leader & portfolio management - Distributor portfolio leadership - Deep beer cultur
Slide 44: Focused Approach to Brand Building
Winning in Craft & Imports - Focused Approach to Brand Building Crafts Highly fragmented “micro”/aficionado Regional craft brands National craft brands Create Build Expand Incubate and Innovate Nurture Leverage Scale Precision investment Imports Controlled national and account account, segmentation
Slide 45: Winning in Craft & Imports - Relevant Innovation
Winning in Craft & Imports - Relevant Innovation 45
Slide 46: Building Capability - General Manager Structure
Building Capability - General Manager Structure Local Market Focus • 32 General Managers • Fully-loaded P&L • Local brand building • Local business plans 46
Slide 47: Building Capability - Focus on Chain
Building Capability - Focus on Chain THE MILLERCOORS ADVANTAGE WHAT WE SELL Our Bundle of Goods and Services 47
Slide 48: Building Capability - Commercial Team Development
Building Capability - Commercial Team Development Commercial Leadership Way Category Management CLW Selling Way Commercial Mindset Profit and Update Photo Big Rocks Volume and Share 48
Slide 49: Building Capability - MillerCoors Selling Way
Building Capability - MillerCoors Selling Way Plan Analyze results from surveys Prepare summary and recommendation Review for validation Sell (BEER) Connect with distributors/accounts Collaborate with distributor on National & local goals Close commitment for execution Execute (surveys) Communicate
Slide 50: Building Capability - BEER
Building Capability - BEER • The BEER application is the bridge between our brewer and distributor plans and executing at retail Collaborative Approach and Execution Survey Development Excellence 50
Slide 51: Building Capability - Ideas to Activation
Building Capability - Ideas to Activation Create deep alignment across Commercial function Goals Design and implement simple and repeatable processes Organize around channels and fully fund biggest ideas first Complex Process Crowded Calendar 2011 Big Rocks Jan Feb Mar Apr May Jun Jul Aug Sept Octob
Slide 52: Delivering Results - Synergies and Cost Savings
Delivering Results - Synergies and Cost Savings Annual Cost Savings 2H 1H 2009 2010 Total (US$ millions) 2008 2011 MillerCoors Synergies - Delivered 28 245 117 -- 390 MillerCoors Synergies - Anticipated -- -- 60 50 110 Total 28 245 177 50 500 • On target to deliver $450 million of cumulative synergi
Slide 53: Delivering Results - Q2 Performance
Delivering Results - Q2 Performance MillerCoors Q2 Results* Q2 10 Q2 09 Change % Profit $390M $325M 19.8% Retail volume 16,522 16,936 -2.4% * Results presented under US GAAP 53
Slide 54: SABMiller Group: conclusion
SABMiller Group: conclusion Our medium term outlook for growth in volume, value and profitability remains strong Consumer recoveries are occurring only slowly, with significant short- term volatility Our commercial strategies are unwavering, developing the beer category and our leading positions SAB
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