Slide 1: InBev Analyst Meeting October 2008
InBev Analyst Meeting October 2008
Slide 2: Disclaimer
This document has been prepared by InBev SA/NV (the “Company”) solely for informational purposes and should not be treated as giving investment advice. No specific investment objectives, financial situation or particular needs of any recipient have been taken into consideration in connection with th
Slide 3: Successful completion of key transaction milestones
Successful completion of key transaction milestones InBev proposes combination with Anheuser-Busch 11 June Would create global leader in beer by volume InBev and Anheuser-Busch agree to combine 13 July Both companies' Boards of Directors unanimously approved the transaction InBev announces successfu
Slide 4: Investment highlights
Investment highlights Global platform with 1 strong market positions Experienced management team with a track record of Balanced geographical 6 2 delivering synergies diversification through business combination Strict financial Strong brand discipline resulting in portfolio with global, 5 industry-
Slide 5: The Combined Company will be a top consumer company and a global leader in beer
6 1 2 5 3 The Combined Company will be a top 5 consumer company 4 and a global leader in the beer industry… Leading Consumer Companies (2007 EBITDA) Global Brewers (2007 volumes) (in mhl) 454 €7.9bn 271 189 (d) (e) P&G Nestlé A-B InBev PepsiCo Coca-Cola A-B SABMiller InBev A-B Heinken Carlsberg (b)
Slide 6: A strong global platform affording access to key beer markets
1 6 5 4 2 3 …with a strong global platform affording access to key beer markets #2 Europe #1 North #2 America Asia #1 Latin America Primarily InBev Primarily Anheuser-Busch InBev & Anheuser-Busch Note: A-B’s footprint in Mexico is through a 50.2% economic interest in Diblo 5
Slide 7: Balanced geographical diversification
1 6 2 5 4 3 Balanced geographical diversification… Anheuser-Busch H1 2008 InBev H1 2008 volumes beer volumes(b) Central and North (a) Other Eastern America 2% Europe 5% 18% International Western 18% Europe 13% Asia Pacific 13% Latin Latin America America US North South 82% 37% 12% Total volumes: 127
Slide 8: Complementary offerings in China
1 6 2 5 3 4 …with complementary offerings in China Strong complementarity between Heilongjiang Anheuser-Busch and InBev operations Jilin Significant further potential for Hebei Liaoning Budweiser Neimongu Beijing Ningxia Shandong Shanxi Jiangsu Shaanxi Gansu Henan Shanghai Hubei Anhui Sichuan Zhejia
Slide 9: Strong brand portfolio with global, multi-country and local brands
1 6 2 5 4 3 Strong brand portfolio with global, multi-country and local brands… Top 5 global beer markets by volume CHINA U.S. RUSSIA BRAZIL GERMANY Global brands Multi- country brands Selected local brands (a) (b) Import brands (b) (a) Equity brand (b) Budweiser is locally produced in China and lic
Slide 10: Strategically managed through targeted brand investment
1 6 2 5 4 3 …strategically managed through targeted brand investment Positioning matrix high Grow and Defend invest Today’s Tomorrow’s winners winners Profit and growth potential Maximise short-term cash Maintain profit Divest low low high Market share Out of over 200 brands we particularly focus on
Slide 11: Strong innovation and brand development capabilities
1 6 2 5 4 3 Strong innovation and brand development capabilities… Strong competitive position built through innovation and understanding of consumer needs and consumption trends Successful examples of recently developed products include Beck’s Vier and Stella 4% in the UK, Hoegaarden Rosée in Belgiu
Slide 12: InBev's cost-connect-win model and Values Based Brands approach
1 6 2 5 4 3 …facilitated by InBev’s cost-connect-win model and a “Values Based Brands” approach “Values Based Brands”—a key element in connecting with consumers Achieve Single, clear, compelling values based reason for sustainable, consumer preference profitable growth 37 different consumer values t
Slide 13: Strict financial discipline resulting in industry-leading margins
1 6 2 5 4 3 Strict financial discipline resulting in industry-leading margins InBev margin evolution World class efficiency and financial discipline is a core component of +990 bps InBev’s culture 34.6% The company has a number of group-wide cost efficiency programmes in place, most 31.9% 4,992 impo
Slide 14: Summary of announced achievable synergies
1 6 2 5 4 3 Summary of announced achievable synergies Comment Management fully confident in delivery of synergies under Blue Ocean plan Further cost synergies foreseen as a consequence of the combination Revenue enhancement opportunity including Budweiser expansion, complementary offerings in China
Slide 15: Experienced management team with a track record of delivering synergies
1 6 2 5 4 3 Experienced management team with a track record of delivering synergies through business combination… Key transactions Commitments Delivery Expand throughout Expansion to Central America, and InBev Latin America transaction AMBEV creation Targeted level of pre-tax EBITDA expansion from R
Slide 16: Common shared dream: Best Beer Company in a Better World
1 6 2 5 4 3 …with a common shared dream: Being the “Best Beer Company in a Better World” Producing high quality products Creating long term economic value Striving for sustainable operations that make a positive contribution to society Promote Manage our Invest in our Responsible environmental Peopl
Slide 17: A successful story built on a strong Corporate Culture
1 6 2 5 4 3 A successful story built on a strong Corporate Culture Best Beer Company in a Better World Full involvement of top management and employees Dream Focus on economic benefit as well as environmental performance, people and community Promoting local responsible drinking campaigns Talented p
Slide 18: Financing and current trading
Financing and current trading
Slide 19: Acquisition: Sources and Uses of funds
Acquisition: Sources and Uses of funds ($bn) SOURCES OF FUNDS USES OF FUNDS Term A Bridge to DCM (12+12 mo.) $12.0bn Offer price for A-B Share $70.00 Term B 1 year Bridge on Disposals $7.0 Number of Shares (Fully Diluted) 746m Term C 3 year Bullet Bank Loan $13.0 Equity Value $52.2bn (a) Term D 5 ye
Slide 20: Committed to rapid de-leveraging
Committed to rapid de-leveraging Committed to maintaining investment grade profile Credit profile Debt and interest obligation benefit from natural currency hedge given the Cash flows geographies in which cash flows are earned Currency exposure further reduced through diligent hedging policy Objecti
Slide 21: Trading update – expected 3Q performance
Trading update – expected 3Q performance Up in the low single • North America, Latin America North, Latin digits America South, and Asia Pacific to report Volumes growth in total volumes • Western Europe, Central and Eastern Europe to report small declines in volumes gained or maintained • Innovatio