Anheuser-Busch InBev SA/NV · EURONEXT:ABI

Anheuser-Busch InBev SA/NV — Investor Day (2023)

37 slides from Anheuser-Busch InBev SA/NV's investor day presentation, 2023

  1. Slide 1: Fernando Tennenbaum, Chief Financial Officer

    Fernando Tennenbaum C h i e f F i n a n c i a l O f f i c e r

  2. Slide 2: Legal disclaimer

    Legal disclaimer Certain statements contained in these materials are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. Forward-looking statements are not guarantees of future performance. Rather, they are ba

  3. Slide 3: Optimize our business

    ® @ Opti mize our OPTIMIZE LEAD & GROW . OUR BUSINESS THE CATEGORY business @) DIGITIZE & MONETIZE OUR ECOSYSTEM ABInBev

  4. Slide 4: My career in ABI

    MY CAREER IN ABI 2004 2006-2007 2009-2012 2018-2020 J O I N E D I N V E S T O R T R E A S U R Y A N D A M B E V C F O A B I R E L A T I O N S M & A D I R E C T O R F A M I L Y D I R E C T O R 2004-2006 2007 2012-2018 2020 T R E A S U R Y M & A D I R E C T O R G L O B A L V I C E C H I E F S P E C I

  5. Slide 5: Maximizing value by focusing on

    Maximizing value by focusing on: Optimized resource allocation Robust risk management Efficient capital structure

  6. Slide 6: Strategic choices driving balanced top-line growth

    Optimized resource allocation Robust risk management Efficient capital structure Strategic choices driving balanced top-line growth Consistent execution of our strategy Resulting in accelerated top-line growth • Category expansion levers driving 8.0 accelerated volume growth 7.4 • NR/hl growth drive

  7. Slide 7: Investing at scale to drive organic growth

    Optimized resource allocation Robust risk management Efficient capital structure Investing at scale to drive organic growth ~ $47Bn Cumulative investment in Sales & Marketing and Net Capex 2019 – 2022 12.2 12.8 11.6 10.6 Sales & Marketing 7.3 7.3 6.8 ($ Bn) 6.9 Net Capex 5.5 4.9 3.7 4.8 ($ Bn) 2019

  8. Slide 8: Optimizing commercial investments

    Optimized resource allocation Robust risk management Efficient capital structure Optimizing commercial investments Megabrands Replicable internal capabilities Driving performance % of S&M within market allocated to Scaling Replicable toolkits across footprint Megabrands brand power Megabrands # of m

  9. Slide 9: Investing in capex to support growth and enhance key capabilities

    Optimized resource allocation Robust risk management Efficient capital structure Investing in capex to support growth and enhance key capabilities for the future Lead & grow the category Digitize & monetize our ecosystem Optimize our business • Expanding capacity • Expanding digital megabrands • ~10

  10. Slide 10: Superior margins driven by fundamental strengths

    Optimized resource allocation Robust risk management Efficient capital structure Superior margins driven by fundamental strengths 2022 EBITDA Margin vs. Peers 1 Fundamental strengths of our business 2022 EBITDA: $19.8 Bn 34.3% • Iconic megabrands Peer #1 19.7% • Unique global footprint • Meaningful

  11. Slide 11: Margins under pressure from commodity and FX headwinds

    Optimized resource allocation Robust risk management Efficient capital structure But margins have been under pressure in recent years due to commodity and transactional FX headwinds Gross margin EBITDA margin Commodity 1 & FX approached all-time highs in 2021 Commodity Index Aluminum +44% -6.6% 61.1

  12. Slide 12: Partially offset by efficient overhead management

    Optimized resource allocation Robust risk management Efficient capital structure Partially offset by efficient overhead management Improving operational efficiency while managing overheads Maintaining our discipline + 9% Volume/FTE 2019-2022 (1%) • Financial discipline and Overhead exp. 1 2019-2022

  13. Slide 13: Recent improvement in cost environment with disciplined revenue management

    Optimized resource allocation Robust risk management Efficient capital structure Recent improvement in cost environment with continued disciplined revenue management Key commodity 1 and FX rates have started to ease Controlling what we can control Commodity Index Aluminum -22% -44% • Disciplined pri

  14. Slide 14: Delivering consistent strong free cash flow generation

    Optimized resource allocation Robust risk management Efficient capital structure Delivering consistent strong free cash flow generation Optimized resource allocation yields strong FCF 1 8.5 9.2 9.3 8.5 7.2 2019 2020 2021 2022 Free Cash Flow ($Bn) Average ($Bn) Note: 1. Free cash flow defined as Cash

  15. Slide 15: Best-in-class profitability and cash conversion

    Optimized resource allocation Robust risk management Efficient capital structure Best-in-class profitability and cash conversion 125% = Free cash flow ($Bn) (1) 120% 115% 110% Free Cash Flow as % of Adj. Net Income 105% 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% 45% 40% 16% 18% 20% 22% 24% 26% 28%

  16. Slide 16: Robust risk management

    Optimized resource allocation Robust risk management Efficient capital structure Robust risk management • Hedging policy: Increase visibility for strategic planning • Balance sheet: Actively manage debt portfolio • Replicable management systems: VPO & DPO* * VPO: Voyager Plant Optimization DPO: Dist

  17. Slide 17: Disciplined hedging policy

    Optimized resource allocation Robust risk management Efficient capital structure Disciplined hedging policy • Hedge all exposures when economically viable • 12 month rolling policy with limited flexibility • Provides visibility to cost evolution 12 months in advance, enabling strategic planning

  18. Slide 18: Actively managed debt portfolio

    Optimized resource allocation Robust risk management Efficient capital structure Actively managed debt portfolio Well-distributed bond 1 maturity profile with low average coupon Diverse currency mix 2 KRW GBP 12 CAD 3% 6% 2% 10 Principal ($Bn) 8 EUR 28% 6 58% USD 4 2 0 ~96% fixed rate 2 2023 2024 20

  19. Slide 19: Ezgi Barcenas, Chief Sustainability Officer

    EZGI BARCENAS C H I E F S U S T A I N A B I L I T Y O F F I C E R

  20. Slide 20: My career

    MY CAREER 2013 2016- 2 0 2 1 P U B L I C H E A L T H J O I N E D G L O B A L A B I F A M I L Y P R O C U R E M E N T I N T E R N A T I O N A L & S U S T A I N A B I L I T Y D E V E L O P M E N T V A N D E R B I L T C H I C A G O 2013- 2 0 1 6 2021- 2 0 2 3 H A R V A R D B O O T H G L O B A L C H I E

  21. Slide 21: Sustainability enables our commercial strategy

    Sustainability enables our commercial strategy Inclusive Natural Local

  22. Slide 22: We made strong progress across key priorities in 2022

    We made strong progress across key priorities in 2022 89% 2.64 hl/hl 20.7% 77% $700MM farmers skilled, water use efficiency reduction in Scopes 1, products in packaging that invested in social norms 72% connected and 2 & 3 emissions is returnable or made marketing campaigns financially empowered int

  23. Slide 23: Strengthening local value chain resilience

    Strengthening local Agronomist with farmer in Uganda value chain resilience SUSTAINABLE AGRICULTURE Farmers Skilled Farmers Skilled 89% • +23,900 DIRECT FARMERS IN 2022 +40pp • AGRONOMY TEAMS ON THE GROUND • GLOBAL BARLEY RESEARCH CENTER 49% • ADVANCE PRODUCTIVITY AND REGENERATIVE PRACTICES 2019 202

  24. Slide 24: Setting clear goals and delivering against them

    Simmer & strip technology reducing Setting clear goals and energy usage for boiling by 80% delivering against them Absolute emissions CLIMATE (Scopes 1 & 2) • 2025 CLIMATE GOAL 6.05 • 2040 NET ZERO AMBITION • DEEP DECARBONIZATION IN OUR -39.2% OPERATIONS • SUPPLIER COLLABORATION PLATFORM, ECLIPSE FO

  25. Slide 25: Building replicable toolkits to scale impact

    Nanning Brewery in China is our most Building replicable toolkits water efficient at 1.1 hl/hl to scale impact WATER STEWARDSHIP Water Efficiency • QUARTERLY WATER ASSESSMENT 3.08 • 7-STEP WATERSHED MANAGEMENT PROCESS -14.3% • GLOBAL OPERATIONS MANAGEMENT SYSTEM 2.64 2017 2022 hl/hl

  26. Slide 26: Unlocking new sources of value for consumers and category

    Unlocking new sources of value Returnable bottle campaign in Brazil promotes consumer participation and sustainability for our consumers & category CIRCULAR PACKAGING • REDUCE PACKAGING 77% products in either • INCREASE AVAILABILITY OF RECYCLED returnables or made CONTENT from majority recycled • PR

  27. Slide 27: Driving differentiation through moderation and choice

    Corona Cero launched in 2022 across Driving differentiation through Europe and in Brazil moderation & choice SMART DRINKING Social Norms Marketing Spend >700 • BEER IS A DRINK OF MODERATION • INNOVATE TO GIVE CONSUMERS GREATER CHOICE +600 MM • SOCIAL NORMS THAT PROMOTE MODERATION 64 2016 2022 MM USD

  28. Slide 28: Local impact in Mexico: Rescuing lost bottles

    Local impact in Mexico: Rescuing lost bottles CIRCULAR PACKAGING

  29. Slide 29: Local impact in Mexico: Improving watershed health

    Local impact in Mexico: Improving watershed health WATER STEWARDSHIP

  30. Slide 30: Key takeaways

    1 We invest in value chain resilience 2 We set clear goals and deliver against them Key 3 We build replicable toolkits to scale efforts 4 We unlock new sources of value We differentiate through moderation 5 and choice

  31. Slide 31: Dreaming big to create a future with more cheers

    Dreaming big to create a future with more cheers © AB InBev 2023 – All rights reserved | 31

  32. Slide 32: Fernando Tennenbaum, Chief Financial Officer

    Fernando Tennenbaum C h i e f F i n a n c i a l O f f i c e r

  33. Slide 33: Dynamic capital allocation priorities

    Optimized resource allocation Robust risk management Efficient capital structure Dynamic capital allocation priorities DELEVERAGING INVEST IN ORGANIC GROWTH SELECTIVE M&A RETURN OF CAPITAL

  34. Slide 34: Optimal capital structure at 2x Net Debt/EBITDA

    Optimized resource allocation Robust risk management Efficient capital structure Optimal capital structure at 2x Net Debt /EBITDA, with most of the benefits captured at ~3x Value Creation 2.0x <2.0x 3.0x 4.0x Net Debt / EBITDA Lower Leverage

  35. Slide 35: Strategic choices have driven dynamic capital allocation priorities

    Optimized resource allocation Robust risk management Efficient capital structure Strategic choices have driven dynamic capital allocation priorities Note: 1. Debt paydown defined as net of Payments on borrowings less Proceeds from borrowings 2. Free cash flow defined as Cash flow from Operating Acti

  36. Slide 36: Dynamically balancing capital allocation priorities to create value

    Optimized resource allocation Robust risk management Efficient capital structure Dynamically balancing capital allocation priorities to create value DELEVERAGING Gross debt paydown, 3.5x $32B net debt INVEST IN ORGANIC GROWTH Investments to $47B drive org. growth SELECTIVE M&A RETURN OF CAPITAL Stra

  37. Slide 37: Key takeaways

    1 Consistent investment in organic growth 2 Superior profitability Key 3 Strong free cash flow generation 4 Dynamic capital allocation 5 Confident in delivering medium-term growth ambition

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