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Anheuser-busch Inbev Sa/nv — Q3 2012 Earnings Presentation

31 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Oct 31, 2012

  1. Slide 1: Third Quarter 2012 Results

    Third Quarter 2012 Results 31 October 2012 © AB InBev 2012 – All rights reserved

  2. Slide 2: Forward looking statements

    Forward looking statements There are statements in this document, such as statements that include the words or phrases “outlook”, “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “project”, “may” or similar expressions that are “forward looking statements”. The

  3. Slide 3: Summary

    Summary • Revenue +9.1% in 3Q12 • Revenue per hl +10.2% in 3Q12  US revenue per hl +5.7%  Brazil revenue per hl +18.3% • Focus Brands +1.3% and Global Brands +5.8% in 3Q12 • EBITDA growth +10.6% in 3Q12 and + 6.9% in 9M12 • EBITDA margin +54 bps to 38.7% in 3Q12 • EPS +7.3% in 3Q12 to $1.17 and +2

  4. Slide 4: Global Brands volume +5.8% in 3Q12

    Global Brands volume +5.8% in 3Q12 © AB InBev 2012 – All rights reserved 3

  5. Slide 5: US results – 3Q12

    US results – 3Q12 • Industry STRs (Selling Day Adjusted) -0.4% in 3Q12, + 0.3% in 9M12  Strongest performance since 2008  Weather in 1Q12, innovations • AB InBev  STRs (Selling Day Adjusted) -0.9% in 3Q12 and -0.2% in 9M12  Marginal market share decline of 23 bps in 3Q12 and 26 bps in 9M12  Dri

  6. Slide 6: Bud Light – NFL Season in full swing

    Bud Light – NFL Season in full swing © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 5

  7. Slide 7: Bud Light Platinum

    Bud Light Platinum • New 22oz bottle and 12oz bottle/18 pack • Share of over 0.9% since launch © AB InBev 2012 – All rights reserved 6

  8. Slide 8: Bud Light Lime – Lime-A-Rita

    Bud Light Lime – Lime-A-Rita • One of the hottest brands in beer • 2nd fastest growing brand in the category • +80% distribution in the off-trade, with estimated share in 3Q12 of over 0.4% • Initial research shows +40% of volume being sourced from hard liquor and other beverages outside of beer © AB

  9. Slide 9: Budweiser activations in 3Q12

    Budweiser activations in 3Q12 © AB InBev 2012 – All rights reserved 8

  10. Slide 10: Budweiser – MLB and Folds of Honor

    Budweiser – MLB and Folds of Honor © AB InBev 2012 – All rights reserved 9

  11. Slide 11: Michelob Ultra volumes +7.3% in 3Q12

    Michelob Ultra volumes +7.3% in 3Q12 +15 bps of share in 3Q12 © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 10

  12. Slide 12: High-end portfolio continues to thrive

    High-end portfolio continues to thrive Stella Artois volumes +17% in 3Q12 Best of Belgium promotions © AB InBev 2012 – All rights reserved Note: US Volume growth and share figures are based on estimated STRs 11

  13. Slide 13: Shock Top – End of The World Midnight pack

    Shock Top – End of The World Midnight pack • 70% volume growth in 9M12 • End of The World Midnight Wheat joins 4 other line extensions © AB InBev 2012 – All rights reserved Note: US Volume growth figures are based on estimated STRs 12

  14. Slide 14: Beer Brazil results – 3Q12

    Beer Brazil results – 3Q12 • Industry  Volumes +1.8% in 3Q12, +2.6% in 9M12 • AB InBev  Beer volumes +0.2% in 3Q12, and +2.3% in 9M12  Beer market share -110 bp due to timing of price increase  Beer revenue / hl growth of +18.3% (1)  Good growth in premium segment © AB InBev 2012 – All rights r

  15. Slide 15: Skol – New visual identity

    Skol – New visual identity © AB InBev 2012 – All rights reserved 14

  16. Slide 16: 300 ml Returnable Glass Bottle (RGB) opportunity

    300 ml Returnable Glass Bottle (RGB) opportunity 300ml Coverage Production footprint - 2012 (Off trade Key accounts) 54% 46% 30% 25% 22% 20% Rio de Janeiro Piraí 1 Piraí 2 2011 São Paulo 4% 4% Guarulhos 2012 Jacareí Jan Feb Mar Apr May Jun Jul Aug Source: Company data © AB InBev 2012 – All rights re

  17. Slide 17: Route to Market innovations

    Route to Market innovations Micro Events Nosso Bar Pit stops © AB InBev 2012 – All rights reserved 16

  18. Slide 18: Premium portfolio

    Premium portfolio © AB InBev 2012 – All rights reserved 17

  19. Slide 19: Premium represents only ~5% of industry volumes

    Premium represents only ~5% of industry volumes  The premium opportunity is driven mainly by international brands Premium brand penetration Weight within Premium (% of beer consumers) volumes (%) Domestic 30% 76% 91% 87% 99% 98% 24% 1% 2% 13% 9% International 2007 2008 2009 2010 2011 Source: Ipsos

  20. Slide 20: China results – 3Q12

    China results – 3Q12 • Beer Volume +2.2%  Industry performance in regional strongholds impacted by adverse weather conditions • Focus Brands +9.2% led by Budweiser and Harbin • Market share growth of 20 bps YTD August (1) • Revenue/hl +10.1% (2) mainly driven by brand mix, as we continue to focus o

  21. Slide 21: Budweiser Music Kingdom J-LO campaign highlights

    Budweiser Music Kingdom J-LO campaign highlights Oct 20th Nov 24th Kick-off Dream prize Digital Activation and displays Budweiser exclusive sponsor of Jennifer Lopez concert in Shanghai © AB InBev 2012 – All rights reserved 20

  22. Slide 22: Harbin NBA sponsorship Season highlights

    Harbin NBA sponsorship Season highlights Retail Campaign • Online video • TV commercials • Billboards and transportation • Print media • Program sponsorship Packaging © AB InBev 2012 – All rights reserved 21

  23. Slide 23: Geographic expansion through Greenfields and M&A is a key enabler for growth

    Geographic expansion through Greenfields and M&A is a key enabler for growth 2012     Xinxiang (Province Henan)   • 2.5 Mio hl capacity   • Opened in June 2012        Existing Wholly-    Owned Plant  Core Market   Expansion Market  Greenfield Projects M&A Zhangzhou (Province F

  24. Slide 24: Canada highlights – 3Q12

    Canada highlights – 3Q12 • Beer volumes -0.8% in 3Q12 and +0.7% in 9M12 • Strong volume and share performance by Bud Light • Stable market share in 3Q12, and remains around 41% in 9M12 (1) 2012 Stella Artois World Draught Master Championship – Montreal, Canada © AB InBev 2012 – All rights reserved (

  25. Slide 25: Latin America South – 3Q12 highlights

    Latin America South – 3Q12 highlights • Total volumes -2.3%  Beer volumes flat  Non-beer -5.9% • Argentina beer volumes -1.8% with estimated market share gains • Strong performance by % organic growth 3Q12 9M12 Stella Artois Beer volumes -2.3% 0.3% Revenue 18.7% 19.6% • Launch of Quilmes Night and

  26. Slide 26: Western Europe – 3Q12 highlights

    Western Europe – 3Q12 highlights • Own beer volumes -0.5%, own products including cider +0.2% • Belgium -1% • Germany +1.3%  Focus Brands +3.7% % organic growth 3Q12 9M12 • UK -6.3%, -3.4% with cider Own beer volumes -0.5% -3.4%  Share trends improving Revenue 4.1% -2.2%  Budweiser gaining share

  27. Slide 27: Central & Eastern Europe – 3Q12 highlights

    Central & Eastern Europe – 3Q12 highlights • Total volumes -13.5% • Russia beer volumes -17.0%  Industry weakness & share loss  Bud reached market share of 1.3%, priced at premium • Ukraine beer volumes -8.3% % organic growth 3Q12 9M12 Beer volumes -13.5% -11.7%  Bud reached 1% market share a few

  28. Slide 28: Russia update – 3Q12

    Russia update – 3Q12 Industry background • Challenging regulatory environment contributing to a declining industry since 2008 • Competitor promotional activity Action & Strategy • “Fix the Mix”  Focus on Premiumization, especially Bud  Improve profitability of brand portfolio • Restructuring  Imp

  29. Slide 29: Below EBIT results – 3Q12

    Below EBIT results – 3Q12 Net finance costs decrease of 173 million USD • Lower net debt levels and lower coupon • Accretion expenses of 90 million USD in 3Q12  Includes IFRS accounting treatment for the put option associated with our investment in Cervecería Nacional Dominicana S.A. • Other financ

  30. Slide 30: In summary

    In summary • Solid Revenue growth and Revenue per hl growth • Strong Focus Brands and Global Brands volumes • EBITDA growth +10.6% in 3Q12 and + 6.9% in 9M12 • EBITDA margin expansion © AB InBev 2012 – All rights reserved 29

  31. Slide 31: © AB InBev 2012 – All rights reserved

    © AB InBev 2012 – All rights reserved 30

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