Anheuser-busch Inbev Sa/nv · EURONEXT:ABI

Anheuser-busch Inbev Sa/nv — Investor Day (2013)

56 slides from Anheuser-busch Inbev Sa/nv's investor day presentation, 2013

  1. Slide 1: Zone President, North America

    Zone President, North America 1

  2. Slide 2: Who We Are, 5 Year Track Record, Building Our Future

    1 Who We Are 2 5 Year Track Record 3 Building Our Future 2

  3. Slide 3: Who We Are, 5 Year Track Record, Building Our Future

    1 Who We Are 2 5 Year Track Record 3 Building Our Future 3

  4. Slide 4: US beer industry at a glance

     Largest beer profit pool  Over 2,500 brewers  235 Mhl volume (2nd largest)  4.7K brands; 8.8K SKUs  $247B in consumption (1.6% of US GDP)  5 distinct channels; 500,000+ retailers  $39B in direct federal, state and local taxes  50 different franchise laws  Top 10 states are 54% of volume 

  5. Slide 5: ABI US key figures

    VOLUME  Volume: 116 Mhl 29%  Market share: 47.6% US  Net revenue: $14B Other Countries  EBITDA: $5.9B EBITDA  42% margin  Cash flow: $4.7B 37%  Cash conversion: 80% US Other Countries 5

  6. Slide 6: Brewer Market Share and Top 10 US Brands

    Brewer Market Share Top 10 US Brands High End (Imports + Crafts) Bud Light 21% ABI 48% Coors Light 8% Premium Plus and FMB 27% Budweiser 7% MillerCoors Miller Lite 7% Crown 7% Natural Light 5% Premium / Premium Light Busch Light 4% 4% Heineken Busch 3% 2% Corona Extra 3% Pabst Value Keystone Light 2

  7. Slide 7: State-of-the-art Breweries

    12 + 1 State-of-the-art Breweries Brewing Expertise  13 breweries supply the whole US  One avg US brewery produces more than the whole craft segment  Brew masters average 16 yrs. experience  Flexibility to produce over 1900 SKUs  High quality; Low risk 7

  8. Slide 8: Agricultural and Packaging Operations

    Agricultural Operations Packaging Operations  Elk Mountain Hop Farm – largest hop  Metal Container has 7 facilities and farm in the world supplies 50% of our requirements  Colorado barley research – largest  Lowest-cost, highest-quality barley research facility in the world producer  Innovation

  9. Slide 9: Wholesaler Network

     500 equity agreement wholesalers  90% of beer sold at wholesalers is ABI volume  Operational excellence driven through Ambassadors of Excellence program  17 Wholesaler Operation Divisions (WOD), 10% of our volume 9

  10. Slide 10: 5 Year Track Record

    1 Who We Are 2 5 Year Track Record 3 Building Our Future 10

  11. Slide 11: EBITDA and Cash Flow 2008-2012

    EBITDA ($B) Other Achievements  EBITDA margin from 29% to 42% +$2.1B  Net revenues grew $0.6B 5.9 3.8  ZBB drove $1.3B in savings 2008 2012  Water use reduced 20% and extract loss reduced 35% Cash Flow ($B)  Implemented ABI payment +$3.2B term strategy  ROI discipline in CAPEX 4.7 1.5 2008 201

  12. Slide 12: New Products, Sponsorships, New Packaging

    New Products Sponsorships New Packaging Music Budweiser Made Bud Light in America Music First 12

  13. Slide 13: Experienced, Diverse Leadership Team

    Experienced, Diverse Leadership Team Increasing Engagement (avg. 20 years) Luiz Edmond President 75% 22 Years 70% David Almeida Paul Chibe Joao Guerra James Brickey James Villenueve 65% VP Sale VP Marketing VP Finance VP People VP Corporate Affairs 15 Years 4 Years 13 Years 22 Years 26 Years 60% 55%

  14. Slide 14: Overall best zone support group

     Overall best zone support group, US Finance, Information & Business Services in 2012  Sales and Supply in 2nd place  Oklahoma Lid Plant; St. Louis brewery 3rd place 14

  15. Slide 15: Net revenue 2008-2012

    $13.9B $13.3B +$600M 3.7 2008 2012 Source: Cognos 15

  16. Slide 16: Net revenue bridge: NR/hl

    $1.7B $13.9B $13.3B +$600M 3.7 2008 NR/hl 2012 Source: Cognos 16

  17. Slide 17: NR/hl Grew Above CPI

    Beer Affordability NR/hl Grew Above CPI NR / hl CPI 2008 = 100 2008 2009 2010 2011 2012 Source: Internal company financials Pricing Discipline Drive Premiumization  Detailed price governance process  Centralized decisions  Promotional efficiency  Revenue management x pricing  Best people & anal

  18. Slide 18: Net revenue bridge: industry

    -$0.7B $1.7B $13.9B $13.3B +$600M 3.7 2008 NR/hl INDUSTRY 2012 Source: Cognos 18

  19. Slide 19: Industry Volume

    Industry Volume (mm hl) 235 225 215 205 195 185 175 2001 2002 2003 2004 2005 2006 2007 2008 19

  20. Slide 20: Industry Volume

    Industry Volume (mm hl) 235 225 215 205 195 185 175 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: AB Top 9E STR 20 20

  21. Slide 21: Industry volume drivers

    Labor Disposable 2008 Weather Calendar Price 2012 Participation Income Source: Internal company models 67 10 Labor Participation Unemployment 66 8 65 6 64 63 4 1/1/08 1/1/09 1/1/10 1/1/11 1/1/12 1/1/13 21

  22. Slide 22: Industry Volume

    Industry Volume (mm hl) 235 225 215 205 195 185 175 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: AB Top 9E STR 22

  23. Slide 23: Industry Volume -0.6% CAGR

    Industry Volume (mm hl) 235 225 215 -0.6% CAGR 205 195 185 175 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: AB Top 9E STR 23

  24. Slide 24: Disposable Income and Labor Force Participation

    Labor Force Participation Disposable Income (Quarterly % Growth) 67 5.3 66 65 64 3.7 3.6 Stabilization 63 62 2.9 2.6 61 1.7 1.9 60 1982 2002 Jan '13 Mar '13 May '13 Jul '13 Sep '13 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Jan Feb Mar Apr May Jun/Jul Aug Sep/Oct 24

  25. Slide 25: Net revenue bridge: share

    -$0.7B $1.7B -$0.4B $13.9B $13.3B +$600M 3.7 2008 NR/hl INDUSTRY SHARE 2012 Source: Cognos 25

  26. Slide 26: Value, Premium, Above Premium segments

    24% 49% 27% Segment Size Other MC A-BI VALUE PREMIUM ABOVE PREMIUM 26

  27. Slide 27: Strong Position in the Premium and Value Segments

    Strong Position in the Premium and Value Segments 24% 49% 27% Segment Size Other MC A-BI VALUE PREMIUM ABOVE PREMIUM Internal Industry estimates Premium and Value Declined ABI Share Declined -1.2 p.p. Market Share 0.1 -0.2 -0.6 -0.5 Above Premium Value Premium 2009 2010 2011 2012 2008 2009 2010 2011

  28. Slide 28: Value, Premium, Above Premium segments

    24% 49% 27% Segment Size Other MC A-BI VALUE PREMIUM ABOVE PREMIUM 28

  29. Slide 29: Value segment decline and unemployment

    -2.0 p.p Decline Since 2009 Closing the Price Gap to Premium Drove Trade up 26% 28.8% 28.7% 28.6% 25% 25% 27.7% 28.1% 25% 26.2% 24% 24.7% 23.8% 2005 2006 2007 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Source: Internal Industry estimates Source: Internal STRs (Mix of Premium/Value) Core Value

  30. Slide 30: Value, Premium, Above Premium segments

    24% 49% 27% Segment Size Other MC A-BI VALUE PREMIUM ABOVE PREMIUM 30

  31. Slide 31: Source: Internal Industry estimates

    58 57 56 55 2009 2010 2011 2012 2013 Source: Internal Industry estimates 31

  32. Slide 32: Value, Premium, Above Premium segments

    24% 49% 27% Segment Size Other MC A-BI VALUE PREMIUM ABOVE PREMIUM 32

  33. Slide 33: Value and Premium segments

    24% 49% 6% 3% 18% Segment Size Other MC A-BI VALUE PREMIUM PREM+ FMB/ HIGH END PAB 33

  34. Slide 34: Decline of Premium Share of Beer Improved When Including Premium+

    Decline of Premium Share of Beer Improved When Including Premium+ Premium Segment mix Premium & Premium+ & FMB/PAB 59 59 59 58 58 52 51 51 50 49 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Source: Internal industry estimates Source: Internal industry estimates Bud MEGA Improved With Black Crow

  35. Slide 35: Source: Total US IRI MULC YTD 9/22/13

    31.3 20.5 12.2 11.3 4.4 Source: Total US IRI MULC YTD 9/22/13 35

  36. Slide 36: Brand Family Share of FMB/PAB Segment

    27.3 24.9 9.3 8.2 8.2 7.9 2.8 Source: Total US IRI MULC YTD 9/29/13, Brand Family Share of FMB/PAB Segment 36

  37. Slide 37: Value, Premium, Premium+ segments

    24% 49% 6% 3% 18% Segment Size Other MC A-BI VALUE PREMIUM PREM+ FMB/ HIGH END PAB 37

  38. Slide 38: The High End Segment Is Growing

    The High End Segment Is Growing Over 80% of Growth Consolidated In Top 5 Players 5% 5% 5% 81% -5% 51% 58% 26% 2009 2010 2011 2012 2010 2011 2012 2013 Source: Internal industry estimates Source: Internal industry estimates Number of High End Brands Has Slowed In 2013 2009 2010 2011 2012 2013 Source:

  39. Slide 39: High End: Imports and Craft

    24% 49% 6% 3% 11% 7% Segment Size Other MC A-BI VALUE PREMIUM PREM+ FMB/ HE HE IMPORTS CRAFT PAB Beck's is brewed in the U.S. in accordance with the German reinheitsgebot brewing standard and competes against brands in the Import segment. 3 9

  40. Slide 40: Imports Flattening, High End Price Compression

    Imports Flattening High End Price Compression 160 155 3% 0% 2% 149 146 143 143 138 137 -9% 135 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2009 2010 2011 2012 2008 2009 2010 2011 2012 2013 Source: Internal industry estimates Source: Internal Industry estimate Market Share by Br

  41. Slide 41: Stella Artois and Bud Light brand health

    Stella Artois More Than Doubled Since 2007 Considered the Most Sophisticated Brand 64.9% % consumers who think the brand is sophisticated 43.3% 43.2% 41.9% 2007 2008 2009 2010 2011 2012 2013 Source: Internal industry estimates Source: BPT Global Imagery, Aug. 2013 Bud Light Challenging Corona for th

  42. Slide 42: High End: Imports and Craft

    24% 49% 6% 3% 11% 7% Segment Size Other MC A-BI VALUE PREMIUM PREM+ FMB/ HE HE IMPORTS CRAFT PAB 42

  43. Slide 43: Craft Concentrated In 5 Basic Styles

    Craft Concentrated In 5 Basic Styles/Palates High End Craft Can Be Categorized In Two Ways Seasonal IPA Dark Lager American Lager Wheat Pale Ale Dark Ale Porter/Stout 170 Seasonal Wheat IPA Pale Ale Dark Lager Dark Ale American Porter/ Lager Stout Little Sumpin' #4 Sumpin' 160 #2 #1Ale #3 Grow Grow

  44. Slide 44: Shock Top Brand Volume by Year Since Launch

    Shock Top Achieved in 5 years What Took Blue Moon 14 Brand Volume by Year Since Launch Shock Top Blue Moon 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Source: Internal Shipment Estimates (Shock Top Belgian White vs. Blue Moon Belgian White) Shock Top is the Fastest Growing Brand in Segment Diverse

  45. Slide 45: Goose Island Volume Growth

    Goose Island Volume has Grown 3x Since 2010 Strong and Diverse Portfolio 400 Annualized STR's in Thousands BBLS 300 200 100 Source: Internal STR volume 0 2008 2009 2010 2011 2012 2013 Goose Island has Delivered  EBITDA grew 10X  Now over 50,000 points of distribution  Access to all of ABI sources

  46. Slide 46: Building Our Future

    1 Who We Are 2 5 Year Track Record 3 Building Our Future 46

  47. Slide 47: Company of owners culture

    consumers through meaningful b balancing heritage and innovation, ina responsible way. . Weare a company of owners, Owners take! 5 We believe common sense and simplicity ar

  48. Slide 48: ABInBev University

    the best p r r ABInBev University oF

  49. Slide 49: Best Practices Excellence Programs

    = — BEST — Corporate ADSI PRACTICES “ep €&CArP - Excellence Program Finance FEP. Excellence Program Marketing YMEP ye Excellence Program ABInBev EXCELLENCE Sales ”) S } P j / j Excellence Program : Excellence Program Information & Business Services vit ), WAGE m2 Zero Base Budget PLANT OnTimmanion E

  50. Slide 50: Explore: Thinking Process and Structure

    Explore Thinking Process & Structure  Ambidexterous  11 platforms  Lead, shape, create  150+ projects  Prototype, test, learn  85+ meetings/yr  Design thinking  4-6 hours/week  Diverge to converge  Create platforms 50

  51. Slide 51: 51

    51

  52. Slide 52: At the core of Explore

    are at the core of Explore

  53. Slide 53: 3P

    3P 53

  54. Slide 54: Retail Connected Devices, Mobile Wallet, On Premise

    Expiratio n Date: Dec 30, 2013 Retail Connected Devices Mobile Wallet On Premise Ad Tap Handles Targeting 54

  55. Slide 55: Key takeaways

    The US beer industry has been challenged by headwinds, but it is 1 still a leading category that is profitable, efficient and growing dollar sales. ABI is well-positioned with leading brands in most segments 2 and its scale advantages translate into superior profitability. We are beginning to see th

  56. Slide 56: Topics: Shoppers, IMC, Consumers

    Topics  Category leadership  Revenue management Shoppers  Sales execution  Trade marketing IMC*  Changing consumer landscape  Digital execution  Win with Bud Light Consumers  Stabilize Budweiser  Grow share in the high end  Premium plus (ULTRA)  Innovation * Integrated Marketing Communica

Anheuser-Busch InBev — Investor Day (2013) on 6ix