Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Q2 2011 Earnings Presentation
22 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Aug 11, 2011
Slide 1: Second Quarter and Half Year 2011 Results
Second Quarter and Half Year 2011 Results Conference Call 11 August 2011 © AB InBev 2011 – All rights reserved
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
Slide 3: Another quarter of solid results
Another quarter of solid results 11 consecutive quarters of Strong cash flow from year-over-year margin expansion operating activities (millions) 700 bp $4,600 4,543 600 bp 577 $4,500 513 520 500 bp $4,400 394 400 bp $4,300 300 bp $4,200 4,133 200 bp 179 $4,100 125 112 100 bp 83 $4,000 45 50 31 0 bp
Slide 4: 2Q11 results overview
2Q11 results overview • Own beer volumes +0.6% • Focus Brand volumes +2.3% • Revenue +3.7% • Revenue per hl +3.4% and +4.4% (constant geographic basis) • Sales & marketing +3.9% in 2Q11 and +4.3% in HY11 • Full year guidance of mid to high single digit increase unchanged • EBITDA growth +11.7% nomin
Slide 5: United States
United States Confidence in our strategy and focus on execution 2Q11 results • Shipments to wholesalers (STWs) -1.7% • Shipments to retailers (STRs) -3.4% • Market share -50 bp concentrated in sub-premium segment • Growth in Bud Light, Michelob Ultra and high end • Budweiser decline decelerating rap
Slide 6: Bud Light steady market share improvement
Bud Light steady market share improvement 0.2 0.3 0.3 0.3 0.2 0.0 0.0 0.1 -0.1 -0.2 -0.4 -0.5 -0.7 -0.6 -0.8 -0.8 -0.9 -0.8 -0.8 -0.8 01/31 02/28 03/28 04/25 05/23 06/20 07/18 08/15 09/12 10/10 11/07 12/05 01/02 01/30 02/27 03/27 04/24 05/22 06/19 07/17 2010 2011 Source: IRI combo (grocery + c-store
Slide 7: i Rae TICKETS ARE JUST THE S
i Rae TICKETS ARE JUST THE S * eae Lie BACK TO — |FOOTB@#LL THE FAVORITE BEER Or NFL FANS
Slide 8: Budweiser stabilization underway
Budweiser stabilization underway Flat share since January 2011 FLAT 9.0 9.0 8.9 8.9 8.8 8.8 8.7 8.7 8.7 8.6 8.6 8.6 8.6 8.5 8.5 8.5 8.5 8.5 8.5 01/31 02/28 03/28 04/25 05/23 06/20 07/18 08/15 09/12 10/10 11/07 12/05 01/02 01/30 02/27 03/26 04/23 05/21 06/18 2010 2011 Source: IRI combo (grocery + c-s
Slide 9: Budweiser's new visual brand identity
Budweiser’s new visual brand identity Fresh and contemporary iconic “bowtie” design • Part of Budweiser’s evolution as a truly global brand • Appeals to new consumers and drives reappraisal • Reinforces heritage among current loyal consumers © AB InBev 2011 – All rights reserved
Slide 10: Growing the high end aggressively
Growing the high end aggressively More than a quarter of a million points of distribution added since December 2010 HY11 results • STRs +16.5% • Stella Artois +22.0% • Shock Top +76.5% © AB InBev 2011 – All rights reserved
Slide 11: Brazil
Brazil Confidence in the medium to long term growth prospects for the country and the industry 2Q11 results • Own beer volumes -2.6% vs. Market share +13.7% comparable Record • Strong revenue per hl +8.1% 71.7% • Sequential share growth since 69.3% February 2011 Price increases Share • Third highest
Slide 12: Brazil priorities
Brazil priorities • Consumer preference >10 p.p. ahead of share Focus Brands • Consistent brand building investment • Lead, shape, create Innovation • Liquids and packaging pipeline • On and off premise innovation • Long term volume and margin opportunity Premium • Only 5% of the market today segmen
Slide 13: China
China Long term volume and margin potential 2Q11 results • Beer volumes +11.7% • Focus Brands Budweiser, Harbin and Sedrin +21.3% • All three brands grew double digits and account for ~70% of volume • Maintaining share while successfully transitioning local brand volume to Focus Brands © AB InBev 20
Slide 14: North America 2Q11 performance
North America 2Q11 performance • United States • Good progress in Focus Brand performance • Beer-only revenue per hl +3.6%, including mix improvement of +52 bp • On track to deliver synergy commitment Organic growth • Canada Volumes -1.4% • Maintained market share at approx. 41% Own beer volumes -1.
Slide 15: Latin America North 2Q11 performance
Latin America North 2Q11 performance • Brazil • Consistent progress in line with brand and pricing strategies • Beer-only revenue per hl +8.1% • Sequential share growth since February 2011, Organic growth reaching 69.3% in June Volumes -0.9% • Third highest 2Q share in the last 10 years Own beer vol
Slide 16: Latin America South 2Q11 performance
Latin America South 2Q11 performance • Argentina • Beer volumes +4.5% with market share gain • Stella Artois growing double digits and expanding leadership in premium • Zone Organic growth • EBITDA growth of +20.2% Volumes -0.2% • Margin decline driven by commodity and Own beer volumes 2.9% labor co
Slide 17: Western Europe 2Q11 performance
Western Europe 2Q11 performance • Belgium • Own beer volumes +3.2%, maintaining share • Germany • Own beer volumes +9.9%, gaining share • United Kingdom Organic growth • Own beer volumes -16.0% due to tough Volumes -4.3% comparable (+18.6%) due to the FIFA Own beer volumes -1.6% World Cup Revenue -6
Slide 18: Central & Eastern Europe 2Q11 performance
Central & Eastern Europe 2Q11 performance • Russia • Volumes -6.0% with consistent progress in line with brand and pricing strategies • Market share in value terms +60 bp to 16.3% • Ukraine Organic growth • Beer volumes +1.2% Volumes -3.1% • Zone Own beer volumes -3.0% • EBITDA decline mainly due to
Slide 19: Asia Pacific 2Q11 performance
Asia Pacific 2Q11 performance • China • Beer volumes +11.7% • Focus Brands +21.3% • Maintaining share while successfully transitioning local brand volume to Focus Brands Organic growth • Zone Volumes 12.1% • EBITDA growth of +50.8% Own beer volumes 12.1% • Margin expansion of +270 bp to 14.0% Revenu
Slide 20: Cash flow
Cash flow Over $4.5 billion in cash flow from operating activities (+9.9%) HY10 HY11 (millions USD) Profit 2 345 3 386 Interest, taxes and non-cash items 4 381 3 874 Cash flow from operating activities before 6 726 7 260 working capital and use of provisions Working capital - 573 - 564 Pension contr
Slide 21: 2Q11 below EBIT performance
2Q11 below EBIT performance (millions USD) 2Q10 2Q11 Normalized EBIT 2 740 3 058 Non-recurring items above EBIT -136 -63 Net finance cost -519 -668 Non-recurring net finance cost -253 -195 Share of results of associates 138 152 Income tax expense -470 -369 Profit 1 501 1 915 Attributable to non-cont
Slide 22: Q & A
Q&A © AB InBev 2011 – All rights reserved