Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Merger or Acquisition (July 2008)
39 slides from Anheuser-busch Inbev Sa/nv's merger presentation, Jul 14, 2008
Slide 1: Creating the Global Leader in Beer
Anheuser-Busch InBev Creating the Global Leader in Beer July 14 , 2008
Slide 2: Forward Looking Statements
Forward Looking Statements: Certain statements contained in this report that are not statements of historical fact constitute forward-looking statements, notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the future filings of In
Slide 3: Important Information
IMPORTANT INFORMATION This communication may be deemed to be solicitation material in respect of the proposed acquisition of Anheuser-Busch by InBev. In connection with the proposed acquisition, InBev and Anheuser-Busch intend to file relevant materials with the SEC, including Anheuser-Busch’s proxy
Slide 4: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 5: Transaction Summary
Transaction Summary • Anheuser-Busch and InBev to combine and create Anheuser-Busch InBev, the global leader in beer and one of the top five consumer companies in the world • Leading positions in five of the largest beer markets in the world − More than double the profitability of its largest compet
Slide 6: Key Transaction Highlights
Key Transaction Highlights • All-cash consideration of $70 per Anheuser-Busch share − Total equity consideration of $52 billion − Transaction recommended by Anheuser-Busch’s and InBev’s Board of Directors OFFER − Board of Directors of combined company will be comprised of existing directors SUMMARY
Slide 7: Transaction Financing: Signed Loan Documentation
Transaction Financing: Signed Loan Documentation Senior acquisition credit facility of $45 billion Including $7 billion bridge financing for divestitures of non-core assets from both companies FINANCING InBev has a commitment for up to $9.8 billion in equity bridge financing which will allow t
Slide 8: Committed to Rapid De-Leveraging
Committed to Rapid De-Leveraging CREDIT Highly committed to maintaining a strong investment grade profile PROFILE Rapid de-leveraging expected through strong free cash flow generation DE- Group financial target of net debt / EBITDA < 2x remains unchanged LEVERAGING Enhanced focus on working
Slide 9: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 10: Leading Brands in the World's Largest Beer Profit Pool
Leading Brands in the World’s Largest Beer Profit Pool Two iconic brands, Bud Light and Budweiser, are United States’ best selling beers… UNITED STATES MARKET SHARES ~48% ~48% ~30% Anheuser-Busch MillerCoors …as well as #1 and #2 top selling brands worldwide
Slide 11: An Exceptional Portfolio of Leading Brands in All Major Domestic Segments
An Exceptional Portfolio of Leading Brands In All Major Domestic Segments Segment A-B Brands A-B Rank Premium Light Bud Light 1 Premium Budweiser 1 Above Prem. Light Mich Ultra, Mich Light 1 Sub-Premium Busch 1 Sub-Prem. Light Natural Light, Busch Light 1 Ice Brands Natural Ice 1 Non-Alcohol O’Doul’
Slide 12: Strong Product Innovations and Pipeline
Strong Product Innovations and Pipeline
Slide 13: World Class Production and Distribution System
World Class Production and Distribution System Highly efficient 12 brewery-footprint combined with a fully dedicated and primarily exclusive wholesalers network provide strong foundation for growth
Slide 14: Successful Equity Investments with Exceptional Brands and Market Positions
Successful Equity Investments with Exceptional Brands and Market Positions • 50.2% stake in Grupo Modelo • 56% market share in Mexico, the 3rd largest beer profit pool • 27% stake in Tsingtao, leading Chinese premium brewer • China is the world’s largest and fastest growing beer market
Slide 15: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 16: Natural Next Step in a Successful Long-Term Partnership
Natural Next Step in a Successful Long-Term Partnership Introduction of Budweiser in Canada Anheuser-Busch becomes − In 2004, Budweiser became the the importer of InBev’s #1 brand in Canada portfolio in the U.S. Creation of − Bud Light is the country’s fastest Anheuser-Busch growing beer InBev 1980
Slide 17: Top Five Consumer Products Company in the World
Top Five Consumer Products Company in the World €148,2 €104,0 ENTERPRISE €71,6 €70,0 €65,8 VALUE €58,6 €30,9 €41,4 €40,7 €33,7 €28,5 €40,7 P&G Nestlé A-B InBev Coc a-Cola PepsiCo Unilever Kraft InBev Diageo Danone €14.1 €11.1 €7.8 2007 €6.3 €6.3 €6.2 €2.8 €5.0 EBITDA €3.8 €3.4 €2.7 €5.0 P&G Nestlé A
Slide 18: Global Leader with Significant Profitability Upside Potential
Global Leader with Significant Profitability Upside Potential 2007 FIGURES INBEV ANHEUSER-BUSCH(a) ANHEUSER-BUSCH INBEV(a) TOTAL VOLUMES (b) 271 mhl + 189 mhl 460 mhl REVENUES € 14.4 billion + € 12.2 billion € 26.6 billion EBITDA € 5.0 billion + € 2.8 billion € 7.8 billion EBITDA 34.6% 23.0% 29.4% M
Slide 19: Leading Positions in World's Top 5 Markets
Leading Positions in World’s Top 5 markets MARKET SHARES IN THE TOP 5 GLOBAL MARKETS TOTAL VOL MARKET SHARES (MHL) InBev Anheuser-Busch A-B InBev #1: CHINA 293 mhl 11.4% 9.6% 21% #2: U.S. 215 mhl < 2% 48.5% 50% #3: RUSSIA 110 mhl 19.3% < 1% 20% #4: BRAZIL 102 mhl 68.6% < 1% 69% #5: GERMANY 97 mhl 9.
Slide 20: Unmatched Brand Portfolio in Top Markets
Unmatched Brand Portfolio in Top 5 markets CHINA U.S. RUSSIA BRAZIL GERMANY IMPORT PREMIUMS LOCAL (a) PREMIUMS LOCAL CORE (a) Equity brand
Slide 21: Industry Transforming Transaction
Industry Transforming Transaction (€ in billions) 2007 Total Volumes 2007 Revenues 460 (hl in millions) €26.6 +62% +61% 189 €12.2 284 €16.7 271 €15.8 €14.4 €12.2 189 150 €8.9 130 271 €14.4 A-B SABMiller InBev A-B Heine- Carlsberg A-B SABMiller Heine- InBev A-B Carlsberg InBev ken InBev ken 2007 EBIT
Slide 22: Geographical Complementarity and Balanced Exposure to High-Growth and Mature Markets
Geographical Complementarity and Balanced Exposure to High-Growth and Mature Markets REVENUES(a) OPERATING PROFIT(a) 43% 53% 47% 57% Developed Markets Developing Markets (a) Developing Markets: Include InBev operations in Central and Eastern Europe, Russia, China, Brazil, Argentina and other South-A
Slide 23: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 24: Cost Synergies Summary
Cost Synergies Summary • Management fully confident in delivery of synergies under Blue Ocean plan ASSUMP- • Further cost synergies foreseen due to the combination TIONS • Top-line synergies including Budweiser expansion, cross selling in China and exchange of sales and marketing best practices not
Slide 25: Significant Cost Synergies Building on Blue Ocean
Significant Cost Synergies Building on “Blue Ocean” What Anheuser-Busch Has Planned… RUNRATE 2011 Process Benchmarking COGS & G&A Improved materials usage $730m Supply chain Early retirement and headcount reductions Overhead Total reduction of 1,185 positions $150m Non-salary overhead sp
Slide 26: Cross Selling Opportunity in China
Cross Selling Opportunity in China Anheuser- InBev Busch Heilongjiang # of breweries 20(a) 15(b) Jilin Volume sold 33.4 mhl 28.2 mhl Hebei Liaoning Neimongu Beijing Employees 15,000 8,000+ Ningxia Shandong Shanxi Jiangsu Shaanxi Gansu Henan Shanghai Hubei Anhui Sichuan Zhejiang Jiangxi COMBINED COMP
Slide 27: Potential for Budweiser Expansion
Potential for Budweiser Expansion • InBev is the leading brewer in 19 markets where Budweiser has limited presence INBEV’S or InBev can offer a superior distribution footprint FOOTPRINT For example: Brazil, Belgium, Ukraine BUDWEISER • High awareness of Budweiser brand in markets where it has limi
Slide 28: Further Upside from Sharing Best Practices
Further Upside from Sharing Best Practices Anheuser-Busch Anheuser-Busch InBev InBev Wholesaler World Class Best in industry management and Commercial sales and SALES AND excellence Program (WCCP) distribution DISTRIBUTION programs capabilities Budweiser brands Expansion Stella Artois Ex
Slide 29: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 30: InBev – A Successful Combination of Local Brewers
InBev – A Successful Combination of Local Brewers 1987 1995 2002 2000 2002 2004
Slide 31: Strong Track Record of Delivering Synergies: InBev Case
Strong Track Record of Delivering Synergies InBev Case SYNERGIES SHARE PRICE PERFORMANCE (3Y) InBev has a track record of delivering synergies on 300 transactions with limited geographical overlap InBev’s transaction synergies driven by procurement, best practices and cross-licensing 250 InBev
Slide 32: Strong Track Record of Delivering Synergies: Canada Case
Strong Track Record of Delivering Synergies Canada Case CANADA rgin expansion ~10 p.p. EBITDA ma 42.1% 1.6% 2.8% 5.2% 32.5% EBITDA MARGIN EXPANSION 2004 04-05 05-06 06-07 2007 ~10 p.p. margin expansion over three years ~50% of total ZBB cost savings achieved already after one year COMMENTS ~90
Slide 33: Strong Track Record of Delivering Synergies: AmBev, Beck's and Quilmes Cases
Strong Track Record of Delivering Synergies AmBev, Beck’s and Quilmes Cases KEY TRANSACTIONS COMMITMENTS DELIVERY Expand throughout Latin Combination with Quilmes, expansion to America Central America, and InBev transaction AMBEV CREATION 2000 pre-tax synergies of 2000 pre-tax synergies of R
Slide 34: Benefits to Consumers, Wholesalers and Community
Benefits to Consumers, Wholesalers and Community • Commitment to heritage and traditions CONSUMERS • Commitment to product quality • Budweiser international expansion BREWERIES • All US breweries to remain open AND WHOLESALERS • Full support for wholesalers and the three-tier system • St. Louis head
Slide 35: Agenda
Agenda • Transaction Summary • Anheuser-Busch Highlights • Transaction Rationale • Transaction Benefits • Track Record in Business Combinations • Closing Remarks and Q&A
Slide 36: Closing Remarks
Closing Remarks • Transformational deal reshaping the beer industry • Creating a global leader in beer • Synergies providing significant value creation • Expecting closing by end of year and expeditious integration
Slide 37: Appendix
Agenda • Appendix
Slide 38: Offer Analysis: Sources and Uses of Funds
Offer Analysis: Sources and Uses of Funds ($ in billions) SOURCES OF FUNDS USES OF FUNDS Term A Bridge to DCM (12+12 mo.) $12.0bn Offer price for A-B Share $70.00 Term B Bridge on Disposals $7.0 Number of Shares (Fully Diluted) 746mm Term C 3 year Bullet Bank Loan $13.0 Equity Value $52.2bn Term D 5
Slide 39: Offer Analysis: EBITDA Multiple Reconciliation
Offer Analysis: EBITDA Multiple Reconciliation ($ in billions) 12.4x $8.5 $52.2 ($0.3) $49.1 ($10.6) ($0.8) $3.9 Equity Value Total Debt Cash Modelo Tsingtao Enterprise 2008E Equity Equity Value EBITDA (a) Investment Investment (a) I/B/E/S 2008E EBITDA consensus estimate. Source Bloomberg.
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