Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — FY2012 Earnings Presentation
44 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, May 24, 2012
Slide 1: SABMiller plc Full year results
SABMiller plc Full year results Twelve months ended 31 March 2012 Graham Mackay, Chief Executive Jamie Wilson, Chief Financial Officer 24 May 2012
Slide 2: Forward looking statements
Forward looking statements This presentation includes ‘forward-looking statements’ with respect to certain of SABMiller plc’s plans, current goals and expectations relating to its future financial condition, performance and results. These statements contain the words “anticipate”, “believe”, “intend
Slide 3: Overview
Overview Strong operating results and robust 12% adjusted eps growth (US$) Revenue growth focus, while delivering cost and production efficiencies Developing market consumption healthy, muted economic recovery in developed markets 1 On an organic, constant currency basis © SABMiller plc 2012 P
Slide 4: Overview: EFES
Overview EFES Recent transactions further enhance our global footprint – Foster’s: application of proven turnaround skills – Efes: strengthened position in Russia, access to wider regional growth – Castel: strengthened strategic alliance Business Capability Programme benefits ahead of expectatio
Slide 5: Financial review
Full year results Year ended 31 March 2012 Financial review Jamie Wilson, Chief Financial Officer © SABMiller plc 2012 Prelims May 2012 5
Slide 6: Strong growth in EPS and dividends
Strong growth in EPS and dividends Adjusted EPS Annual Dividend 91 US cents per share – Up 12% © SABMiller plc 2012 Prelims May 2012 6
Slide 7: Developing markets continue to drive growth
Developing markets continue to drive growth March 12 Reported Organic Total Volumes 5.8% 3.7% Lager Volumes 5.3% 2.9% Reported Organic, constant currency Group revenue 10.9% 7.5% EBITA 11.7% 8.0% EBITA margin 10 bps - All figures include our share of associates and joint ventures © SABMiller plc 201
Slide 8: Enhancing our global portfolio
Enhancing our global portfolio Acquisition of Foster’s completed on 16 December 2011 – Remaining 50% of Pacific Beverages acquired on 13 January 2012 – Non core assets process progressing Alliance with Anadolu Efes completed on 6 March 2012 – Acquisition of a 24% equity interest in Anadolu Efes
Slide 9: Underlying revenue growth driven by volumes, pricing and mix
Underlying revenue growth driven by volumes, pricing and mix Group Revenue (including associates and joint ventures) components of performance, US$m * Adjusted for disposals © SABMiller plc 2012 Prelims May 2012 9
Slide 10: Organic, constant currency group revenue per hl performance
Organic, constant currency group revenue per hl performance Year ended 31 March 2012 Group revenue per hl growth Figures include our share of associates and joint ventures © SABMiller plc 2012 Prelims May 2012 10
Slide 11: Strong full year underlying EBITA growth
Strong full year underlying EBITA growth EBITA (including associates and joint ventures) components of performance, US$m * Adjusted for disposals © SABMiller plc 2012 Prelims May 2012 11
Slide 12: Margin improvements in most regions
Margin improvements in most regions Year ended 31 March 2012 EBITA margin change Organic, constant currency basis Figures include our share of associates and joint ventures © SABMiller plc 2012 Prelims May 2012 12
Slide 13: Input cost rises
Input cost rises Full year constant currency increase per hl – Total raw materials – Total COGS Up low single digits Barley and malt prices continue to rise Higher fuel prices drive up distribution costs Global procurement programme benefits ahead of plan, mitigating cost increases © SABMill
Slide 14: Procurement
Procurement Consolidating existing scope & moving into adjacent categories in raw materials & packaging: Leveraging expertise and sharing best practice Strategic approach Developing sustainability c.60% of subsidiary raw material and packaging procurement now managed by Trinity Coverage
Slide 15: Business capability programme progress
Business capability programme progress ERP implementations – End to end global solution implemented in Ecuador during year – Global Template enhanced for further deployments – Rollout of aligned regional systems in Latin America continued Shared Services – Achieved good progress in centralising
Slide 16: Business capability programme: Financial headlines
Business capability programme: Financial headlines Exceptional charge of US$235m – Reduction of exceptional charge to c.US$140m in year to March 2013 and further reduction in following year Improved net operating benefits forecast, driven by procurement Incremental net Cumulative net operating b
Slide 17: Exceptional items
Exceptional items US$m March 12 Anadolu Efes: Russia & Ukraine disposal gain 1,195 Foster’s and Pacific Beverages net costs: - Transaction-related costs (109) - Integration costs (26) - Gain on revaluation 66 Africa reorganisation gains 90 Other disposals, net gain 112 Business capability programme
Slide 18: Cash flow, finance costs and taxation
Cash flow, finance costs and taxation US$m March 12 March 11 Adjusted EBITDA* 6,183 5,617 Working Capital (incl provisions) 258 66 Capex** 1,639 1,315 Free Cash Flow*** 3,048 2,488 Adjusted net finance costs 542 518 Adjusted EBITDA* margin 23.0% 22.9% Effective tax rate 27.5% 28.2% * EBITDA before c
Slide 19: Net debt
Net debt US$m March March 12 11 Non-current borrowings (18,164) (7,115) Current borrowings (1,063) (1,345) Cash and cash equivalents 745 1,071 Borrowings-related derivative financial instruments 620 298 Net debt (17,862) (7,091) Gearing (%) 68.7 31.2 Net debt/Adjusted EBITDA* 2.9 1.3 Weighted averag
Slide 20: Net debt: currency and maturity profile
Net debt: currency and maturity profile Currency profile* Maturity profile** Net Debt: US$17,862m * Including the impact of cross currency swaps **Cash and cash equivalents netted against current borrowings © SABMiller plc 2012 Prelims May 2012 20
Slide 21: Financial outlook – current financial year
Financial outlook – current financial year Continued economic growth across most developing markets – Slow improvement in some more mature economies Opportunities for selective pricing and mix improvement in most regions Raw material input costs expected to rise – Total raw materials per hl* M
Slide 22: Operational review
Year ended 31 March 2012 Operational review Graham Mackay, Chief Executive © SABMiller plc 2012 Prelims May 2012 22
Slide 23: Divisional highlights: Latin America
Divisional highlights: Latin America Robust volume growth across the region – Double digit growth in premium and upper mainstream – Successful brand extensions – Broader package range, affordability emphasis – Roll out of new malt brands: Maltizz and ActiMalta – Improving direct sales penetration
Slide 24: Divisional highlights: North America
Divisional highlights: North America Revenue management offsetting continued softness among key beer drinkers – SKU management to enhance system profitability Premium lights still under pressure and their recovery key to beer category growth Capability investments increasing category captainsh
Slide 25: Divisional highlights: North America
Divisional highlights: North America Revenue management offsetting continued softness among key beer drinkers – SKU management to enhance system profitability Premium lights still under pressure and their recovery key to beer category growth Capability investments increasing category captainsh
Slide 26: Divisional highlights: Europe
Divisional highlights: Europe Slow economic improvement, spending still soft Reduction in regional profit pool – Orientation towards economy segment – Continued shift to modern trade at lower margins Maintaining leading brand equities, with price adjustments where appropriate Upgrading the c
Slide 27: Divisional highlights: South Africa
Divisional highlights: South Africa Leading beer category back to growth Brand marketing and sales execution delivering Premium segment share gains driven by Castle Lite, Castle Milk Stout, at rising relative prices – Overall share gain to close to 90% Revenue management and cost control P
Slide 28: Divisional highlights: Africa
Divisional highlights: Africa Continued strong growth – Led by Tanzania, Uganda, Zambia – Share gains in competitive markets – Capacity constraints experienced in Q4 Full portfolios and commercial investments reaching more consumers – Castle portfolio +27% leading regional premium growth – Mains
Slide 29: Divisional highlights: Asia Pacific
Divisional highlights: Asia Pacific Consolidation in China by CR Snow continues – Snow +40 bps to 19% share – CR Snow market share of 22% Firm price increases in China driving group revenue/hl +13% offsetting cost increases India: regional focus delivering profit growth Australia: first 100
Slide 30: Continued progress against our strategic priorities
Continued progress against our strategic priorities Creating a balanced and attractive global Developing strong, relevant brand portfolios spread of businesses that win in the local market Expansion Growth and share opportunities via gains in Tanzania, Foster’s & Efes Peru and South Africa (prem
Slide 31: CUB poised to offer exciting opportunity
CUB poised to offer exciting opportunity Three key business enhancement areas Create category value – differentiation and marketing to build robust brand equity Approach to consumers & Renovate mainstream and premium brands, brands synergies of combined portfolio Focus on growing and profitabl
Slide 32: Efes offers enhanced positions in Russia, CEE and Central Asia
Efes offers enhanced positions in Russia, CEE and Central Asia Number 2 Valuable portfolio of brands #2 in value player across key segments Russia in large Footprint to compete on a national Russian basis beer market Cost and revenue synergies #1 in #4 in Kazakhstan Leading Large population
Slide 33: Conclusion
Conclusion Emerging market consumption continues to be buoyant Signs of muted recovery in USA, but volatility continues in Europe SABMiller operating results are strong and resilient in this context Our organic growth strategies remain consistent Our medium term outlook for growth in volum
Slide 34: SABMiller F12 results Q&A
SABMiller F12 results Q&A © SABMiller plc 2012 Prelims May 2012 34
Slide 35: Supplementary information
Supplementary information
Slide 36: Reported EBITA contribution
Reported EBITA contribution EBITA contribution* March 2012 March 2011 * Before corporate costs © SABMiller plc 2012 Prelims May 2012 36
Slide 37: Financial results
Financial results US$m March 12 March 11 Change % Reported Group revenue 31,388 28,311 11 EBITA 5,634 5,044 12 EBITA margin (%) 17.9 17.8 10 bps Sales volumes (hl’000) Total 285,660 270,099 6 Lager 229,247 217,659 5 Soft drinks 49,475 45,875 8 Other alcoholic beverages 6,938 6,565 6 © SABMiller plc
Slide 38: Group Revenue by division
Group Revenue by division Group Revenue March 12* March 11** Change % US$m Organic, constant currency Latin America 6,994 6,335 10% Europe 5,164 5,162 0% North America 5,248 5,223 0% Africa 3,657 3,138 17% Asia Pacific 2,378 2,013 18% South Africa Beverages 6,083 5,598 9% *Results for the year ended
Slide 39: EBITA by division
EBITA by division EBITA March 12* March 11** Change % US$m Organic, constant currency Latin America 1,841 1,620 14% Europe 794 875 (9%) North America 756 741 2% Africa 737 633 16% Asia Pacific 121 93 30% South Africa Beverages 1,220 1,067 14% *Results for the year ended 31 March 2012 have been trans
Slide 40: EBITA margin performance
EBITA margin performance Organic, constant currency basis * Adjusted for disposals © SABMiller plc 2012 Prelims May 2012 40
Slide 41: Reported EBITA margin performance
Reported EBITA margin performance © SABMiller plc 2012 Prelims May 2012 41
Slide 42: Reported volumes
Reported volumes* Reported Domestic Lager volumes March 12 Change % by country hl ‘000 South Africa 26,856 2 Colombia 19,319 7 Poland 13,480 (4) Peru 12,272 9 Czech 6,928 - Russia (11 months only) 5,093 (9) Ecuador 5,571 7 Romania 4,499 (8) India 4,607 3 Italy 3,312 - Tanzania 3,147 15 China ** 50,5
Slide 43: Exchange rates
Exchange rates Closing rates currency vs US$ 31 Mar 12 30 Sep 11 31 Mar 11 Australia 0.97 1.035 0.97 China 6.29 6.38 6.55 Colombia 1,792 1,915 1,879 Czech Republic 18.52 18.33 17.27 Euro 0.75 0.75 0.71 India 51.40 48.97 44.59 Mozambique 27.42 26.82 30.60 Peru 2.67 2.77 2.80 Poland 3.13 3.30 2.84 Rom
Slide 44: Balance sheet
Balance sheet US$m March 12 March 11* Goodwill and Intangible assets 30,029 16,318 Property, plant and equipment 9,299 9,331 Investment in joint ventures and associates 10,466 8,532 Other non-current assets 1,115 689 Current assets excluding cash 3,918 3,111 Cash and cash equivalents 745 1,067 Net a