Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — InBev — Dresdner Kleinwort conference, Frankfurt 2008
15 slides from Anheuser-busch Inbev Sa/nv's conference presentation, April 2008
Slide 1: InBev
InBev Dresdner Kleinwort Frankfurt April 2008 1
Slide 2: InBev – the first 3 years: Progress Update
InBev – the first 3 years Progress Update Consistent beer volume growth Revenue growth ahead of volume growth Improved cost management Margin expansion Enhanced cash flow management 2
Slide 3: Progress update - Income Statement
InBev – the first 3 years Progress update - Income Statement +716 bps 20 000 40% 34.6% 31.9% 28.6% 15 000 26.1% 30% million euro margin 10 000 20% 5 000 10% 0 0% 2004 2005 2006 2007 Revenue Normalized EBITDA Normalized EBITDA margin 3
Slide 4: Progress update – Cash Flow and Working Capital
InBev – the first 3 years Progress update – Cash Flow and Working Capital 5 000 3% 2% 4 000 1% % of Revenue million euro 3 000 0% 2 000 -1% -2% 1 000 -3% 0 -4% 2005 2006 2007 Cash Flow from operating activities Working Capital as % of Revenue 4
Slide 5: How was this achieved?
How was this achieved? •Strong beer volume growth • growth of selected brands • leading sales execution in some markets • healthy geographic footprint •Significant increase in efficiency • VPO drives lower cost of sales • ZBB mindset: achieve more with less •Target setting and compensation •Right pe
Slide 6: Where does InBev go from here?
Where does InBev go from here? •Strengthening our strengths • Dream People Culture • Further roll out of sales execution programs • Continuous cost discipline •Further address the top line • Enhance brand building skills across the group • Innovation supports volumes and mix • Disciplined Execution
Slide 7: Winning portfolios in our key markets
Winning portfolios in our key markets Biggest Favorite Winning Portfolio brand brand Argentina Belgium Brazil Canada China Germany Russia South Korea UK Ukraine 7
Slide 8: Stella Artois and Beck's
Stella Artois and Beck’s The number one German Distributed in more than beer in the world 80 countries Beck’s Stella has achieved Artois premium growth has grown of13% very strong outside its in6 home market significant premium markets worldwide more than 10 000 on-trade installations of Beck’s Vier
Slide 9: Premium portfolio across continents
Premium portfolio across continents Growing by A strong Double Digit year in 10 % in the Czech Growth Republic, in Expanding Western growth in Europe Russia the U.S. and 60 % in the Ukraine 9
Slide 10: Innovation as a top line driver
Innovation as a top line driver Track record so far BRAND COUNTRY KEY STRATEGIES • Market share gains supported by successful line Korea extensions • Improved brand health • Beck’s Vier fastest growing brand in 2007 UK •Captured 2% share in only 2 years • Beck’s Gold, Green Lemon line extensions wit
Slide 11: Performance
Standard approach ensures fundamentals in place and continuous improvement Best-in-class benchmark Performance Fundamentals Stability Sustainability Continuous World Improvement Excellence Implementation Phase Sustainability Phase Diagnostics and 1st Development of Excellence to drive sustainability
Slide 12: Right level of Sales and Marketing expenses
Right level of Sales and Marketing expenses Sales and Marketing as % of Revenue Geographic split by Operating Zone 21% 19% 18% 15% 13% 12% 10% LAN LAS NA CEE WE APAC InBev 12
Slide 13: Addressing the margin pool
Addressing the margin pool InBev can improve its results significantly by increasing its share in Taxes the total margin pool Customer Margin Total Revenue Pool Customer Costs Sources of opportunities: InBev •Fixed costs efficiency (ZBB) margin •CoS efficiency (VPO) InBev •Procurement Costs InBev Di
Slide 14: Summary
Summary • InBev remains committed to deliver EBITDA margin expansion through a combination of top line growth and continued disciplined cost management • Top line growth will remain our priority as we are linking a more significant part of our variable compensation program to improved market share p
Slide 15: InBev
InBev Dresdner Kleinwort Frankfurt April 2008 15
InBev — Dresdner Kleinwort conference, Frankfurt 2008 on 6ix