Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — H1 FY2016 Earnings Presentation
31 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, November 2015
Slide 1: Presented by Domenic De Lorenzo and Gary Leibowitz
Presented by Domenic De Lorenzo, Chief Financial Officer Gary Leibowitz, SVP Internal and Investor Engagement
Slide 2: 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”, “estimate”, “expect” and
Slide 3: Recommended acquisition of SABMiller by AB InBev
− Agreement on the terms of a recommended acquisition of SABMiller by AB InBev − Recommended cash offer of £44 per SABMiller share − Subject to certain conditions including regulatory approvals in a number of jurisdictions and shareholder approvals − Reverse break fee of US$3 billion payable to SABM
Slide 4: Half year highlights against strategic priorities
‒ 4% NPR growth¹ driven by: Drive superior topline growth through ‒ 8% NPR growth¹ in Latin America strengthening our brand portfolios and ‒ 9% NPR growth¹ in Africa expanding the beer category ‒ 14% NPR growth in global brands² ‒ Innovation success across all regions ‒ 5% EBITA growth¹ Liberate and
Slide 5: Latin America: accelerated volume growth
Accelerated volume growth Growth v Group Beverage Group Driven by mainstream affordability and premiumisation prior1 (%) NPR volume NPR/ hl Colombia 10 9 1 Strong growth and price restraint in Colombia Peru 8 4 4 Growth in Peru, despite price increases Other 5 4 1 Margin accretive affordab
Slide 6: Africa: commercial strategy driving lager volume momentum
Commercial strategy driving lager volume momentum Growth v Group Beverage Group Strong affordable segment growth, with volumes up 15%2 prior1 (%) NPR volume NPR/ hl South Africa 7 3 4 Castle Lite volume growth of 11% Rest of Africa 14 12 1 Four consecutive quarters of lager volume growth in
Slide 7: Asia Pacific: Australia and China
Australia: Australia – premium brands volume growth − Volume decline amid soft consumer economic outlook − NPR per hl up 4% with premium volume1 up 10% Great 101% Northern − Good performance from global brands and craft Yak 54% portfolio franchise − Positive share trend, despite increased pricing Pe
Slide 8: North America and Europe
North America: − MillerCoors NPR down 2%, primarily due to economy MillerCoors H1 FMB/Coolers volume market share segment decline and softer pricing environment 19% 16% − Good premium lights share performance with Q2 growth of Miller Lite 8% − Redd’s franchise in its third year of growth 2014 2015 2
Slide 9: Cost and efficiency programme
− Cost and efficiency programme delivered US$221 million in its first year1 − Original target of US$500m p.a. by 2018 − We are well on track to deliver in excess of US$430 million of annualised savings by 31 March 20162 − Further saving of at least US$550 million expected by 20202 bringing aggregate
Slide 10: Overall performance summary
Overall we have delivered a strong underlying performance Very strong growth in Latin America and Africa Affordability strategy driving volume growth Premiumisation strategy driving price/mix Cost and efficiency programme running ahead of schedule We continue to invest for sustainable gr
Slide 11: Domenic De Lorenzo, Chief Financial Officer
Domenic De Lorenzo, Chief Financial Officer
Slide 12: Volumes, NPR, EBITA, EPS and dividend growth
8.7% 6.7% 5.3% 4.4% 0.7% 0.6% (9.4)% (10.9)% (10.8)% Volumes Group NPR EBITA Adjusted EPS Interim Dividend Reported Organic, constant currency1 1 for Adjusted EPS, constant currency excluding the impact of the Tsogo Sun disposal only © SABMiller 2015 11
Slide 13: Group NPR bridge
6 months ended 30 September 2015 (US$ millions) Group NPR+4%, volume +1%, price/ mix +4% (11) 88 (23) 3% 2% 14,498 (1,820) 7% 8 336 (3)% (2)% (3)% Group NPR 5% 4% 222 6% Volume growth 13,886 2% Price / mix 12,686 Sep 2014 Latin Africa Asia Pacific Europe North Sep 2015 Acquisitions FX impact Sep 201
Slide 14: EBITA and EBITA margin by region
EBITA and growth v prior EBITA margin and expansion v prior 34.0% 2,920 5% Latin America 872 5% 23.0% 23.0% 20.5% 20.3% 18.1% Africa 758 11% Asia Pacific 423 7% Europe 404 (2)% North America 514 - Group Latin Africa Asia Europe North Corporate (51) America Pacific America 20 bps (80) bps 30 bps 60 b
Slide 15: Cash flow
US$m (reported) Sept 15 Sept 14 Unaudited data Group EBITDA 3,576 4,004 Adjusted EBITDA1 2,960 3,300 Working capital outflow, incl. provisions (24) (82) Capex2 (582) (696) Free cash flow3 1,423 1,485 Free cash flow % Adjusted EBITDA 48% 45% − Adverse currency impact on reported Adjusted EBITDA of US
Slide 16: Net debt and currency profile
US$m Sept 15 March 15 Unaudited data Currency profile Net debt (10,540) (10,465) 13% Gearing (%) 46.2 43.0 11% Net debt / Adjusted EBITDA1 1.7 1.6 5% 54% Weighted average interest rate for 3.4 3.5 gross debt portfolio (%) 7% 10% US dollar Euro South African rand Colombian peso Australian dollar Othe
Slide 17: Outlook
We anticipate good top line growth in the second half Depreciation of key currencies against the US dollar continues to impact our results: continuing adverse translational impact at similar levels to H1 increasing adverse transactional impact Input costs per hectolitre: Half year1: tota
Slide 18: Slide 18
Slide 19: Appendix
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Slide 20: Six months ended 30 September 2015 summary
Six months ended 30 September 2015 Reported Organic Total volumes 0.7% 0.6% Lager volumes (0.3)% (0.3)% Soft drinks volumes 4.3% 4.3% Organic, constant Six months ended 30 September 2015 Reported currency1 Group net producer revenue (NPR) (9.4)% 4.4% Group NPR per hl (10.0)% 3.7% EBITA (10.9)% 5.3%
Slide 21: Year on year growth reconciliation
Six months ended 30 September 2015, year on Group NPR EBITA Adjusted EPS year growth % % % Reported growth rate (9.4) (10.9) (10.8) Impact of currency translation 13.0 15.2 16.1 Reported, constant currency growth rate 3.6 4.3 5.3 Impact of acquisitions and disposals 0.8 1.0 1.4 Organic, constant cur
Slide 22: Organic, constant currency growth by region
Organic, constant currency growth % Latin Asia North Six months ended 30 September 2015 Africa Europe Group America Pacific America (US$m) Group NPR 8 9 4 - (1) 4 Group NPR / hl 2 4 7 3 2 4 Total beverage volume 6 5 (3) (3) (2) 1 Lager volume 5 6 (3) (5) (2) - EBITA 5 11 7 (2) - 5 EBITA margin (bps
Slide 23: Financial summary table
Six months ended 30 September 2014 2015 2016 Lager volumes (hl’m) 134 134 133 Total volumes (hl’m) 170 173 174 Group net producer revenue (NPR) 13,793 14,002 12,686 Group EBITA 3,272 3,277 2,920 Group EBITA margin 23.7% 23.4% 23.0% Group EBITDA 3,981 4,004 3,576 Group EBITDA margin 28.9% 28.6% 28.2%
Slide 24: Results by segment
Six months ended 30 September 2015 Latin America Africa Asia Pacific Europe North America Corporate Group (US$m) Group revenue 3,444 4,035 2,750 2,953 2,879 - 16,061 Excise and similar taxes (880) (735) (685) (726) (349) - (3,375) Group NPR 2,564 3,300 2,065 2,227 2,530 - 12,686 Group EBITDA1 1,013
Slide 25: Subsidiaries, MillerCoors and associates breakdown
Six months ended Subs + Other Latin Asia North Share of Total 30 September 2015 Africa Europe Corporate Subs. Share of Assocs./ America Pacific America MC JV Group (US$m) MC JV JVs Group revenue 3,444 2,992 1,338 2,122 94 - 9,990 2,785 12,775 3,286 16,061 Excise and similar (880) (592) (516) (515) (
Slide 26: Components of NPR growth
Organic, constant currency Components of growth +4.4% performance Six months ended 30 September 2015 +3.8% 14,498 (US$ million) 8 523 14,002 +0.6% 116 13,886 89 1,820 12,686 Sep 2014 Disposals Sep 2014 Volume Price & Sep 2015 Acquisitions Currency Sep 2015 Reported (adjusted for growth mix growth or
Slide 27: Components of EBITA growth
Organic, constant currency Components of growth +5.3% performance Six months ended 30 September 2015 3,415 (US$ million) 2 3,277 3,244 171 33 3,244 33 497 497 2,920 Sep 2014 Disposals Sep 2014 Underlying Sep 2015 Acquisitions Currency Sep 2015 Reported (adjusted for growth organic Reported disposals
Slide 28: Currency rates and depreciation
Six months ended 30 September Average rate Depreciation Closing rate Depreciation 2015 2014 % 2015 2014 % Australian dollar (AUD) 1.33 1.08 (19) 1.43 1.14 (20) South African rand (ZAR) 12.57 10.66 (15) 13.85 11.29 (19) Colombian peso (COP) 2,705 1,909 (29) 3,122 2,028 (35) Euro (€) 0.90 0.74 (18) 0.
Slide 29: EPS and dividend per share growth
Six months ended 30 September 2015 8.7% 5.1% EPS EPS EPS Dividend per share (US dollar) (Sterling) (South African rand) (US dollar) (3.0)% (10.8)% © SABMiller 2015 28
Slide 30: NPR and EBITA by region
Six months ended 30 September 2015 20% 20% 17% 29% Group NPR 14% EBITA 18% 26% 14% 16% 26% Latin America Africa Asia Pacific Europe North America 1 before corporate costs © SABMiller 2015 29
Slide 31: Q&A