Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Merger or Acquisition (January 2016)
43 slides from Anheuser-Busch InBev SA/NV's merger presentation, January 2016
Slide 1: AB InBev Introductory Presentation
AB InBev Introductory Presentation January 2016
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. This presentation (including any oral briefing and any question-and-answer in connection
Slide 3: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION. FORWARD LOOKING STATEMENTS (CONTINUED) Each forward-looking statement speaks only as of
Slide 4: Agenda
Agenda • AB InBev today • Our plans for the future • Growth Driven Platforms • Commercial Priorities • Building a Truly Global Beer Company © AB InBev 2016 – All rights reserved 4
Slide 5: AB InBev Today
AB InBev Today
Slide 6: AB InBev Today
AB InBev Today AB InBev is one of the world’s top-five consumer goods companies • Largest brewer in the world • Owns 7 of the world’s top 10 most valuable brands, according to BrandZ • Employs 155,000 people in over 25 countries with sales in almost 200 countries • 2014 Results • Total beer volume 4
Slide 7: Healthy balance between developed and developing markets
Healthy balance between developed and developing markets 2014 Volumes 2014 Net Revenues 2014 EBITDA 34.6% 46.9% 42.8% 53.1% 57.2% 65.4% Developing market Developed market Note: For the purpose of this analysis, North America and Europe (less Russia and Ukraine) have been treated as Developed. All ot
Slide 8: Best in class Total Shareholder Return
Best in class Total Shareholder Return through sustainable top line growth, cost efficiency, margin enhancement, strong cash flow generation and disciplined capital allocation Annualized Shareholder Return (2009 to 2015) 25% 20.4% 20% 19.0% 15% 14.3% 13.8% 13.5% 12.8% 12.6% 12.5% 11.5% 11.4% 10% 8.0
Slide 9: Dream – People – Culture
Value creation driven by a simple and consistent business model, underpinned by our powerful Dream - People - Culture platform Leadership Markets Brands Financial Discipline •Focus on a few •Focus markets •Focus Brands •Focus on Cash Generation big things •Largest profit pools •Brand health today =
Slide 10: Brands: Focused on brands with the greatest growth potential
Brands: Focused on brands with the greatest growth potential Focus Brands Volumes as a % of 2014 Volume Focus Brands Revenues as a % of 2014 Revenue Global Global All Other Brands, Brands, All Other Brands, 18.8% 20.0% Brands, 31.9% 36.1% Other Focus Other Focus Brands, Brands, 49.3% 43.9% Total Foc
Slide 11: Brands: Unparalleled portfolio of global, international and local champion brands
Brands: Unparalled portfolio of global, international and local “champion” brands Global International brands brands Examples of “local champions” © AB InBev 2016 – All rights reserved 11
Slide 12: Brands: A portfolio of billion-dollar brands
Brands: A portfolio of 16 “billion-dollar brands” Budweiser 10.4 Bud Light 10.2 35 Skol 7.1 NESTLE Brahma 5.4 30 Corona Family 4.5 # of Billion Dollar* Brands 25 Antarctica 3.6 P&G PEPSI Stella Artois 2.5 20 COKE Busch 2.5 AB-INBEV 15 Harbin 2.4 UNILEVER Cass 2.0 10 Natural Light 1.7 5 Beck's 1.6 Mi
Slide 13: Brands: 4 of the top 5 most valuable beer brands
Brands: 4 of the top 5, and 7 of the top 10, most valuable beer brands in the world Top brands Company BrandZ value in US$ Billion 1 13.8 2 12.9 3 Heineken Heineken 9.7 4 8.7 5 8.5 6 8.5 7 Guinness Diageo 5.0 8 4.2 9 Coors Light Molson Coors 3.9 10 3.6 Source: 2015 BrandZ Beer Report - http://www.br
Slide 14: Dream – People – Culture defines who we are
Dream – People - Culture defines who we are and how we behave © AB InBev 2016 – All rights reserved 14
Slide 15: Our Plans For The Future
Our Plans For The Future
Slide 16: Great and enduring companies have three common characteristics
Great and enduring companies have three common characteristics 1. Deliver consistent and superior financial results 2. Over time, they adapt the way they operate to remain relevant and respected 3. Make their brands indispensable; loved by consumers Implications for AB InBev • Grow top-line faster •
Slide 17: Top-line: Solid performance – but we want to accelerate growth
Top-line: Solid performance – but we want to accelerate the rate of growth Net Revenue Organic Growth 2014 7.0% 5.9% 6.0% 5.0% 5.0% 5.0% 4.5% 4.0% 4.0% 4.0% 3.0% 3.0% 2.9% 3.0% 2.0% 2.0% 1.0% 1.0% 0.3% 0.0% Notes: 1. P&G and Diageo is for year ended June 2015 due to a reporting year ending June 2. S
Slide 18: Growth Driven Platforms provide a framework for understanding demand
Growth Driven Platforms (GDPs) provide a framework for understanding the demand for total alcohol Relaxation & Bonding Food & Savor Getting together to Finding the perfect beer share good times to accompany great meals Changing the Mood Serving up a Great Night Out Breaking out of the routine and Be
Slide 19: Growth Driven Platforms: Relaxation & Bonding
Growth Driven Platforms (GDPs) Relaxation & Bonding… the most important GDP today Getting together to share good times—to relax and unwind, strengthen existing friendships, or make new ones—has always been an important part of beer’s universal appeal. © AB InBev 2016 – All rights reserved 19
Slide 20: Growth Driven Platforms: Food & Savor
Growth Driven Platforms (GDPs) Food & Savor… a big opportunity Food has become a passion point for our consumers, especially among millenials. And often, the right accompaniment for a great dish is not a glass of wine – but a distinctive and sophisticated beer or cider. © AB InBev 2016 – All rights
Slide 21: Growth Driven Platforms: Changing the Mood
Growth Driven Platforms (GDPs) Changing the Mood… a new frontier for brewed products At the end of a long day, people want to get together with friends and shift into another gear; they feel the desire to treat themselves, break out of the routine and have a little fun. © AB InBev 2016 – All rights
Slide 22: Growth Driven Platforms: Serving up a Great Night Out
Growth Driven Platforms (GDPs) Serving up a Great Night Out… an area where beer has been under-represented We have intensified our efforts to scale up our brands’ presence in bars, clubs, restaurants and other outside premises. © AB InBev 2016 – All rights reserved 22
Slide 23: GDPs help frame our long term commercial priorities
GDPs help frame our long term commercial priorities Key Goals Commercial Priority Description 1. Protect and improve Elevate Protect and improve the performance of our core brands by communicating both functional and emotional the base the core benefits 2. Scale-up proven Grow our Leverage the stren
Slide 24: Elevate the core
Elevate the core Focus on elevating the perception and relevance of core lagers amongst key demographics Unique Packaging & Differentiated Messaging LDA Recruitment Trade Execution Deliver emotional & functional High quality on and off-trade & package design Connecting to millennials through benefit
Slide 25: Grow our Global Brands
Grow our Global Brands Complementary brands, each having its own distinct brand imagery and consumer positioning The Great American Lager, The world’s Embodies Brewed with number one the spirit of time-honored Mexican beer perfection methods +5.9% volume growth +5.8% volume growth +2.5% volume growt
Slide 26: Develop the Near Beer segment
Develop the Near Beer segment: Provide consumers with alternatives to hard liquor MixxTail Skol Beats Senses Ritas Oculto © AB InBev 2016 – All rights reserved 26
Slide 27: Premiumize and Invigorate beer
Premiumize and Invigorate beer • Redefine and shape our industry • Craft initiatives • Disruptive Growth Agenda Packaging, Equipment and Brew Pubs E-commerce Mobile Appliances © AB InBev 2016 – All rights reserved 27
Slide 28: Summary
Summary • Best in class Total Shareholder Returns • Simple and consistent business model • Power of the Dream-People-Culture platform • Great and enduring companies • Growth Driven Platforms (GDPs) • Commercial priorities © AB InBev 2016 – All rights reserved 28
Slide 29: Building a Truly Global Beer Company
Building a Truly Global Beer Company
Slide 30: Compelling Strategic Rationale
Building a Truly Global Beer Company Compelling Strategic Rationale • Creates the first truly global beer company and one of the world’s leading consumer products companies • Brings together a largely complementary geographic footprint with access to high-growth regions (e.g., Africa, Asia and Centr
Slide 31: Newco at a Glance
Newco at a Glance ($ in billions) $16.5 $63.6 $47.1 REVENUE $5.7 $24.2 $18.5 EBITDA (EXCLUDING SYNERGIES) Source: AB InBev 2014 Annual Report, SABMiller 2015 Annual Report. Note: The historical revenue and EBITDA figures of the combined group represent the aggregate consolidated revenue and EBITDA o
Slide 32: Creates One of The World's Leading Consumer Goods Companies
Creates One of The World’s Leading Consumer Goods Companies ($ in billions) $100 $80 $67 $64 $64 $47 $46 $34 $30 REVENUE(a) $17 $24 $20 $19 $18 $13 $13 EBITDA(a) $11 (EXCLUDING $6 $6 $5 SYNERGIES) Source: Company financial reports, FactSet. Note: Average 2014 exchange rates used: CHF:USD of 1.0937 (
Slide 33: Newco - Globally Diversified Company
Newco - Globally Diversified Company REVENUE (a) EBITDA (a) Mexico Mexico 8% 9% Latin America Latin North 33% North America America America 40% 26% 28% Africa Europe 9% Europe 13% Africa APAC 9% APAC 7% 11% 7% Latin America (b) Africa Asia Pacific Europe North America (c) Mexico Source: AB InBev 201
Slide 34: First Truly Global Beer Company
First Truly Global Beer Company A largely complementary geographic footprint Combined experience in developing global brands, national icons and local brands Primarily AB InBev Largely complementary footprint in markets Primarily SABMiller (incl. JVs and associates) with significant growth oppor
Slide 35: Strong Marketing Properties and Brand Building Expertise
Strong Marketing Properties and Brand Building Expertise 35
Slide 36: Innovation Capabilities Provide a Platform for New Products
Innovation Capabilities Provide a Platform From Which to Develop Exciting New Products for Our Consumers 36
Slide 37: Africa Will Be a Critical Driver for the Future Growth
Africa Will Be a Critical Driver for the Future Growth of the Business Beer Volume 2014E-2025E Beer Volume Growth Africa's Volume (mHL) Africa's % of World Volume 8.1% 44% 6.5% 175 16% 4.4% 121 61 (a) 2000A 2014E 2025E World Africa Africa’s Increasing Relevance in the Africa’s Volumes Expected to Gr
Slide 38: Africa Will Continue to Play a Vital Role in the Combined Company
Africa Will Continue to Play a Vital Role in the Future of the Combined Company AB InBev intends to: Intention to List AB InBev shares on the JSE announced on 14 December 2015 Listing expected mid-January 2016 List Newco’s ordinary shares on the JSE through a secondary listing, upon or shortly
Slide 39: Commitment to Partnering with Stakeholders to Build a Better World
Both Companies Share a Strong Commitment to Partnering with Stakeholders to Build a Better World Together 39
Slide 40: Synergy Opportunities
Synergy Opportunities Estimated incremental recurring run-rate pre-tax cost synergies of at least $1.4 billion(a) per annum, in addition to the $1.05 billion identified by SABMiller(b) Incremental synergies to be phased in over four years following completion, reaching the recurring run-rate by
Slide 41: Financing Overview
Financing Overview The financing for the transaction consists of: • AB InBev’s internal financial resources, and • New $75.0 billion Committed Senior Facilities, consisting of: Amount Term Facility $25 billion 3 Year Term Facility A $10 billion 5 Year Term Facility B $10 billion 1 Year Disposals B
Slide 42: Next Steps
Next Steps AB InBev will work with SABMiller and the relevant authorities in seeking to bring all potential regulatory reviews to a timely and appropriate resolution The transaction is subject to pre-conditions and conditions including: • Receipt of regulatory clearance, including in the Europea
Slide 43: Compelling Strategic Rationale
Building a Truly Global Beer Company Compelling Strategic Rationale • Creates the first truly global beer company and one of the world’s leading consumer products companies • Brings together a largely complementary geographic footprint with access to high-growth regions (e.g., Africa, Asia and Centr
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