Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Investor Presentation (2015)
38 slides from Anheuser-busch Inbev Sa/nv's investor presentation, 2015
Slide 1: BU China Introduction
BU China Introduction Jean Jereissati China President
Slide 2: Personal Introduction
Jean Jereissati 1998/08/08 Working Location MSucir-u Cigale} China President 01/2015 ~ now 01/2013 ~ 12/2014 01/2011 ~ 12/2012 01/2009 ~ 12/2010 01/2007 ~ 12/2008 Business Administration Fundacao Getulio Vargas - SP China President, Shanghai Central American and the Caribbean President, DR Trade MKT
Slide 3: Connection with Strategy
Connection with Strategy
Slide 4: Two-Engine Growth Strategy to Win in China
Two-Engine Growth Strategy to Win in China Win nationally in premium while expanding and increasing leadership, province by province PREMIUMIZATION High Hitchhiker High Road Stronghold Low China Average Expansion Low High DISTRIBUTION
Slide 5: Two-Engine Growth Strategy to Win in China
Two-Engine Growth Strategy to Win in China Win nationally in premium while expanding and increasing leadership, province by province PREMIUMIZATION High Hitchhiker High Road Stronghold Low China Average Expansion Low High DISTRIBUTION
Slide 6: Careful selection of cities with highest middle/affluent class population
PREMIUMIZATION High Road Stronghold High Road 2020: Hitchhi lation ~300the Careful selection of cities with cities with highest >250k MAC population Middle/Affluent Class Population ker China Average Expansion concentration… DISTRIBUTION Source: BCG, 1MMACto = Middle/Affluent500k Class Population to
Slide 7: Premiumization as the biggest driver of revenue per HL
PREMIUMIZATION High Road Stronghold High Road Hitchhi Premiumization as the biggest driver of revenue per HL…. ker China Average Expansion % of volume by segment % of volume growth DISTRIBUTION 0.2% 6.3% Industry growth ABI grow 26.2% 2012 2013 2014 2015 1H vs indust Super Premium 69.7% 23.1% 35.0%
Slide 8: ABI over-indexes in Premium and outperforms industry segment growth by 2x
PREMIUMIZATION High Road Stronghold High Road Hitchhi ABI over-indexes in Premium (22%), ker China Average Expansion and outperforms the industry segment growth by 2x DISTRIBUTION % of volume by segment % of volume growth 0.2% 0.2% 6.3% 22.3% 26.2% Industry growth ABI growth 24.6% 2012 2013 2014 201
Slide 9: 1 HL of Super Premium = 9 HL of Core/Value
PREMIUMIZATION High Road Stronghold High Road Hitchhi 1HL of Super Premium = 9 HL of Core/Value ker China Average Expansion DISTRIBUTION % of volume by segment 0.2% 0.2% GROSS MARGIN 6.3% 22.3% INDEX 26.2% Super Premium 9.0 X 24.6% Premium 5.0 X 67.3% 52.9% Core+ 1.6 X Core & Value 100% 2014 Industr
Slide 10: Budweiser being a clear winner in Premium
Budweiser being a clear winner in Premium….. BUDWEISER VOLUME 15,400 KHL 12,283 9,426 7,159 +29.1% 11-14 CAGR 2011 2012 2013 2014 BUDWEISER SHARE OF PREMIUM 57.2% 50.5% 43.2% +20.6 pp 36.6% 14 vs. 11 Source: Internal Report 2011 2012 2013 2014
Slide 11: Two-Engine Growth Strategy to Win in China
Two-Engine Growth Strategy to Win in China Win nationally in premium while expanding and increasing leadership, province by province PREMIUMIZATION High Hitchhiker High Road Stronghold Low China Average Expansion Low High DISTRIBUTION
Slide 12: Leap-frog growth in areas around our new breweries
PREMIUMIZATION High Road Stronghold Expansion Hitchhi Leap-frog growth in areas around our new breweries… ker China Average Expansion DISTRIBUTION 2010 2011 2012 2013 2014 2015 Liaoning Liaoning Hebei Henan Henan Jiangsu Sichuan Sichuan Sichuan Yunnan Yunnan GD Yunnan GX GD Source: Internal Report
Slide 13: Harbin being a strong engine to fuel expansion
Harbin being a strong engine to fuel expansion… HARBIN VOLUME 25,829 KHL 23,888 20,083 18,748 +11.3% 11-14 CAGR 2011 2012 2013 2014 HARBIN T3F among LDA Drinkers 45.9 39.1 31.2 27.6 19.6 +10.4 1H15 vs. 1H14 Source: Equity Tracker, Internal Report 2011 2012 2013 2014 2015 YTD
Slide 14: Two-Engine Growth Strategy to Win in China
Two-Engine Growth Strategy to Win in China Win nationally in premium while expanding and increasing leadership province by province PREMIUMIZATION High Hitchhiker High Road Stronghold Low China Average Expansion Low High DISTRIBUTION
Slide 15: What a Stronghold looks like
What a Stronghold looks like… Population (000’) Beer Industry (000 hl) Consumption Per Capita (liter) % of Premium & Core+ Industry ABI Market Share (Yr 2014 ) Fujian ABI Relative Market Share High Road Stronghold China Average Expansion Source: SEEMA, Internal Report
Slide 16: Strongholds outperforming China Average
PREMIUMIZATION High Road Stronghold Strongholds outperforming China Average Hitchhi Our Stronghold footprint is well positioned with two-engine growth strategy ker China Average Expansion (2014 vs. 2011)…. DISTRIBUTION % of Premium and Core+ Industry (2014) (2011) High Road 1 Stronghold 1 HIGH 8 MHL
Slide 17: Strongholds outperforming China Average
PREMIUMIZATION High Road Stronghold Strongholds outperforming China Average Hitchhi Our Stronghold footprint is well positioned with two-engine growth strategy ker China Average Expansion (2014 vs. 2011)…. DISTRIBUTION % of Premium and Core+ Industry (2014) (2011) High Road 1 Stronghold 3 HIGH 4 8 M
Slide 18: Winning Journey
Winning Journey Trade Up + Distribution in Strongholds Sales Machine Premiumization Expansion Area % of Premium and Core+ Industry (2014) 1 Stronghold Revenue Trade High Road Management Solutions 3 HIGH 4 Route to Key Market Accounts 5 2 LOW Digital Tech Sales Purchase Competitive Intelligence China
Slide 19: Sales Machine
Sales Machine Revenue Trade Management Solutions Route to Key Market Accounts Digital Tech Sales Purchase Competitive Intelligence
Slide 20: ABI has been consistently disciplined in driving Revenue
ABI has been consistently disciplined in driving Revenue… CAGR Grow NR/HL ahead of Competition (2011-2014) +8.6% TOP 3 COMPETITORS +2.1% 2011 2012 2013 2014 Source: SEEMA
Slide 21: Strong wholesaler partnership is one of our most relevant competitive advantages
Strong wholesaler partnership is one of our most relevant competitive advantages 1 2 3 4 5 6 7 8
Slide 22: Building strong partnerships with top wholesalers
Building strong partnerships with top wholesalers ELITE CLUB Source: 3rd Party Survey, Internal Report
Slide 23: 360-ALL-IN Trade Activation focusing on Point-of-Connection
360-ALL-IN Trade Activation focusing on Point-of-Connection EXPERIENCE, not only EXECUTION… Nightlife OffTrade Western Bars Hotels/Western Bars Chinese Rest. CD Convenience Store Chinese Restaurant AB Western Restaurants Food Street/Hot Pots Rooftop
Slide 24: …NIGHT LIFE
ed MADE FOR MUSIC
Slide 25: …AB Chinese Restaurant
...AB Chinese a i ae a RUZ by piss. LC pe Supeteme SLRNe Ses 9 {
Slide 26: …ROOFTOP/WESTERN CHANNELS
…ROOFTOP/WESTERN CHANNELS
Slide 27: …CD Chinese Restaurant
…CD Chinese Restaurant
Slide 28: Best Practice: Supreme Circle Trade Program
Best Practice: “Supreme Circle” Trade Program Leverage the technology to build long term loyalty program with key customers to help us win Chinese restaurant channel.
Slide 29: Relationship + economies of Scale + Top quality
Relationship + economies of Scale + Top quality
Slide 30: Connection with Strategy
Connection with Strategy Dream: #1 in Asia . Disruptive Pillar Growth
Slide 31: Super Premium Company – a company inside our company
Super Premium Company – a company inside our company Building the capabilities for the next wave….. Route to Market Focus Brands Digital / Social Media - Building the capabilities - Focus brands to target - Digital, content and sales of an enhanced and new channel as the key platform for the special
Slide 32: Next Channel Frontier with Hyper-Speed Growth
Next Channel Frontier with Hyper-Speed Growth T-MALL JD YHD 2015 2014 +723% +784% +206% 15 vs. 14 15 vs. 14 15 vs. 14 YTD YTD YTD Mar May Feb Nov Apr Aug Sep Jan Jun Jul Oct Dec May Mar Nov Feb Apr Aug Sep Jan Jun Jul Oct Dec May Mar Nov Aug Feb Apr Sep Jan Jun Jul Oct Dec • Rank #1 in share (45%).
Slide 33: Managing complexity
… Managing complexity…. Brand Volume Contribution by Channel KTV/Dancing Club Traditional Trade/Other Bar/Western/Travel Journey KA/E-commerce Chinese Restaurant Budweiser Harbin Imported Super Premium Source: Internal Report
Slide 34: Managing complexity
… Managing complexity…. Brand Volume Contribution by Channel KTV/Dancing Club Traditional Trade/Other Bar/Western/Travel Journey KA/E-commerce Chinese Restaurant Budweiser Harbin Imported Super Premium Source: Internal Report
Slide 35: Managing complexity
… Managing complexity…. Brand Volume Contribution by Channel KTV/Dancing Club Traditional Trade/Other Bar/Western/Travel Journey KA/E-commerce Chinese Restaurant Budweiser Harbin Imported Super Premium Source: Internal Report
Slide 36: Strengths…..Win with the winners
Strengths…..Win with the winners SEGMENTS CHANNELS Source: Internal Report Source: Internal Report CONSUMERS GEOGRAPHIES BUD T1F AMONG HIGH INCOME DRINKERS 21.6 19.5 17.8 18.0 15.5 2011 2012 2013 2014 2015 YTD Source: Equity Tracker, internal Report Source: Bain Analysis, Internal Report
Slide 37: Opportunities
Opportunities SIZE OF PREMIUM/SP INDUSTRY DISTRIBUTION % of volume by segment 3,200,000 POCs still to be reached ~4X Brazil Source: BCG 2014 2025 Source: Nielson Study, Internal Report CORE PROFITABILITY SHAPE INDUSTRY WITH INNOVATION
Slide 38: Journey towards leadership
Journey towards leadership… CHINA MARKET SHARE EVOLUTION 18.3% 17.5% 15.0% 13.4% 12.2% 12.3% 2010 2011 2012 2013 2014 2015 H1 Source: Seema and internal reports. Considers full M&A volumes in the year of acquisition