Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Q2 2015 Earnings Presentation
21 slides from Anheuser-Busch InBev SA/NV's earnings presentation, Jul 30, 2015
Slide 1: Second Quarter 2015 Results
Second Quarter 2015 Results 30 July 2015 © AB InBev 2015 – All rights reserved 1
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this report that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of the
Slide 3: 2Q15 Summary
2Q15 Summary • Challenging quarter but we started 2H15 with good momentum • We expect to accelerate revenue growth for the remainder of the year • Total Revenue +4.1% – Revenue per hl +7.1% on a constant geographic basis • Total Volumes -2.2% – Own beer -2.1% and non-beer -2.9% – Focus Brands -2.0%
Slide 4: Global Brand Volumes +6.4%
Global Brand Volumes +6.4% Budweiser p +6.0% • Great performance in China • US share position improving p Corona p Stella Artois +7.8% +4.9% • Driven by growth in • US, Argentina, Brazil, Canada, the UK Canada and the UK and our global export markets © AB InBev 2015 – All rights reserved 4
Slide 5: US – 2Q15 summary
US – 2Q15 summary Industry 0.0 % US Industry Growth - Rolling 12 month trend • STRs -1.0% -0.2 -0.4 AB InBev -0.6 • STRs -2.2% impacted by -0.8 weather and some share loss -1.0 -1.2 • Market share decline of -1.4 -1.6 approximately 55 bps -1.8 • Shipments (STWs) -1.1% Source: Internal estimates base
Slide 6: Strong plans in place for Bud Light in 2H15
Strong plans in place for Bud Light in 2H15 • STRs down LSD for 2Q15 and HY15; share of the premium light segment flat in HY15 • Market share down 35 bps in 2Q15, and 30 bps in HY15 • Whatever USA 2nd edition was a big success with widespread digital activation • Brand health metrics continue to imp
Slide 7: Budweiser -- best performance in decades
Budweiser -- best performance in decades • Performance boosted by strong market programs focused on the brand’s quality and heritage credentials • Share down only 15 bps in 2Q15 & HY15 • Volume growth in the quarter (according to IRI) © AB InBev 2015 – All rights reserved Note: Share based on intern
Slide 8: Healthy Growth in Above Premium
Healthy Growth in Above Premium • Above Premium brands grew ~35 bps of market share in 2Q15 and 25 bps in HY15 • Michelob ULTRA growth particularly robust – fastest growing brand in the market by absolute volume • Good growth from Stella Artois and Goose Island © AB InBev 2015 – All rights reserved
Slide 9: Mexico – 2Q15 summary
Mexico – 2Q15 summary AB InBev • Revenue +7.9% • Volume +4.1% with strong contribution from Focus Brands • Revenue per hectoliter growth of +3.5% • Cost synergy delivery of $30 million in the quarter, bringing cumulative total to $770 million • EBITDA growth of +14.4% • EBITDA margin grew more than
Slide 10: Mexico Focus Brands volume +6.1%
Mexico Focus Brands volume +6.1% • Focus Brands represent nearly 90% of our total volumes, and continue to grow ahead of the total portfolio • Bud Light, Victoria were particularly strong • Corona performed well despite very difficult FIFA World Cup comps
Slide 11: Brazil – 2Q15 summary
Brazil – 2Q15 summary Industry • Beer industry volumes under pressure due to a tough World Cup comparable and unfavorable macro environment AB InBev • Revenue +4.0% • Beer volumes -8.6%, non-beer volumes -6.0% • Beer market share down to 67.6% following strong performance in 2Q14 • Beer revenue per
Slide 12: Brazil – Maintain a healthy balance between volume and revenue growth
Brazil – Maintain a healthy balance between volume and revenue growth Elevate Accelerate Seed the Core Premium Near Beer © AB InBev 2015 – All rights reserved 12
Slide 13: China – 2Q15 summary
China – 2Q15 summary Industry • Beer industry volumes down ~6.5% in 2Q15 and down ~4.5% in HY15, driven by poor weather and economic headwinds AB InBev • Revenue +6.2% • Beer volume essentially flat • Focus Brands grew 3.5%, with Budweiser growing double digits • Market share growth of approximately
Slide 14: China Focus Brands +3.5% in 2Q15
China Focus Brands +3.5% in 2Q15 • Budweiser grew double digits • 2015 Quality Campaign which delivers a consistent quality message ”Brewed the Hard Way since 1876” • Summer campaign underway through TV and Digital media © AB InBev 2015 – All rights reserved 14
Slide 15: Organic EBITDA increase of $207M (+4.6%) in 2Q15
Organic EBITDA increase of $207M (+4.6%) in 2Q15 USD millions 3,500 AB InBev margin 3,038 expansion of 17 bps 3,000 to 37.6% in 2Q15 2,500 2,170 2,000 1,657 1,500 986 1,000 903 762 681 569 499 500 422 345 264 0 NA LAN Mex APAC EUR LAS 2Q15 HY15 2Q15 EBITDA Margin 40.2% 45.3% 53.9% 27.6% 30.1% 37.9%
Slide 16: Normalized EPS decreased to $1.21 in 2Q15
Normalized EPS decreased to $1.21 in 2Q15, driven by currency translation, scopes and higher net finance costs +0.07 1.60 +0.01 (0.13) USD per share (0.20) 1.21 (0.14) 2Q14 EBIT organic Net Finance Taxes & FX Scope 2Q15 as reported growth Results others as reported © AB InBev 2015 – All rights reser
Slide 17: Net Finance Results of -554m USD in 2Q15
Net Finance Results of -554m USD in 2Q15 Net interest on Hedge of share Currency and Bank fees, Interest net defined Accretion based payment other hedging transaction taxes, 2Q14 expense benefit liabilities expenses programs result other 2Q15 +90 +10 USD millions -2 -382 +209 +4 2Q15 -139 -554 2Q14
Slide 18: Normalized Effective Tax Rate (ETR)
Normalized Effective Tax Rate (ETR) Amended 2015 guidance range from 22-24% to 20-22% 24% 22% 22% 18.8% 18.1% 20% 17.2% 2014 2Q14 2Q15 2015 Previous 2015 New Normalized ETR in 2Q15 favorably impacted by : • Changes in the country profit mix, partly offset by the negative impact of the loss of 139 mi
Slide 19: Cash Flow Generation
Cash Flow Generation 16.0 13.9 14.1 14.0 13.3 12.5 12.2 12.0 12.2 Net debt/ 12.0 11.5 EBITDA of 10.5 10.6 9.9 2.48x at HY15 10.0 9.1 8.0 USD millions 6.0 4.7 4.7 4.3 4.0 4.0 2.0 - FY09 FY10 FY11 FY12 FY13 FY14 HY14 HY15 Free Cash Flow Cash flow from Operations Definition: Free Cash Flow (FCF) define
Slide 20: Capital Allocation Objectives
Capital Allocation Objectives • Investment in organic growth of the business • Selective M&A, strict financial discipline • Dividend yield comparable with other consumer goods companies (3% - 4%) • Optimal capital structure of approximately 2x Net Debt/EBITDA • At a level of around 2x, the return of
Slide 21: Q&A
Q&A