Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — Q1 2019 Earnings Presentation
24 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, May 7, 2019
Slide 1: First Quarter 2019 Results
First Quarter 2019 Results 07 May 2019 © AB InBev 2019 – All rights reserved
Slide 2: Legal Disclaimers
Legal Disclaimers 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 the Company
Slide 3: Agenda
➢ 1Q19 Highlights ➢ US & Brazil results and strategy ➢ Potential minority stake listing of APAC business ➢ Financials ➢ Q&A © AB InBev InBev–2019 © AB2019 All rights reserved – All rights 3 reserved 3 © AB InBev 2019 – All rights reserved 3
Slide 4: Highlights of the quarter
Highlights of the quarter • Continued momentum from 4Q18 into 1Q19 with solid volume, revenue and EBITDA growth • Outperformed the market in Brazil with double digit volume growth in both beer and non-beer • Best market share trend performance in the US since 4Q12 • Double digit revenue growth of ou
Slide 5: 1Q19 Financial Summary
1Q19 Financial Summary Total Revenue +5.9% • Revenue per hl +4.6% • Global Brands +8.5%, +14.0% outside of their home markets Total Volumes +1.3% • Own beer +1.0%, non-beer +4.9% EBITDA +8.2% and EBITDA margin expanded by 86 bps to 39.6% Normalized EPS increased by $0.54 from $0.73 in 1Q18 to $1.27
Slide 6: Global Brand Portfolio
Global Brand Portfolio 1Q19 Revenue +8.5% +14.0% outside of home markets Top-line grew +15.6% Grew top-line by double Top-line grew +15.7% outside of the US digits in >30 countries outside of Mexico © AB InBev 2019 – All rights reserved 6
Slide 7: 2025 Sustainability Goals progress
We launched our 2025 Sustainability Goals one year ago and have already made significant progress 2018 RESULTS 1Q19 HIGHLIGHTS AB InBev & BanQu, a partner from our 100+ Accelerator, were jointly - 4.5% < 3.0 ~50% named among Fast Company’s World-Changing Ideas GHG emission / hl Hl/hl global average
Slide 8: Major country highlights
Major country highlights US: Best market share trend since 4Q12, with 9 of the top 15 share gainers1 Mexico: Revenue and EBITDA growth despite unfavorable Easter timing Colombia: Volume and revenue growth, with global brands up over 60% Brazil: Outperformed the market with double digit volumes in be
Slide 9: US continues to improve, best share trend since 4Q12
US continues to improve, showing its best share trend performance since 4Q12 at -10bps -10 -20 -35 -45 -70 2017 FY 2018 H1 2018 H2 2018 Q4 2019 Q1 © AB InBev 2019 – All rights reserved 9
Slide 10: 9 of the top 15 share gainers in the US in 1Q19
We had 9 of the top 15 share gainers in the US in 1Q19, reinforcing our portfolio strategy 9 of the Top 15 Share Gainers in the US in 1Q19 (Source: IRI) Michelob Ultra 0.63 Modelo Especial 0.58 White Claw Hard Seltzer Assorted 0.29 Corona Premier 0.24 Truly Assorted 0.19 Michelob Ultra Pure Gold 0.1
Slide 11: Powering our brands with consumer-centric marketing and regional activations
Powering our brands with consumer-centric marketing and regional activations Michelob Ultra Bud Light Budweiser Co-ed, Active Lifestyle Transparency & Regional Approach Activating Key Cultural Moments © AB InBev 2019 – All rights reserved 11
Slide 12: Fueling our growth with a faster, more nimble approach to innovation
Fueling our growth with a faster, more nimble approach to innovation 11 new products in the past year Venturing into new segments Rapid test-and-learn pilots Innovation leader in Exploring new segments New products on the shelf the industry & occasions in <100 days © AB InBev 2019 – All rights reser
Slide 13: In Brazil, our premium portfolio continues to grow
In Brazil, our superior premium portfolio continues to grow, across both global and local brands • Gaining premium segment market share in the past several quarters • Global Brands grew >50% vs. 1Q18 • Corona more than doubled its volume vs. 1Q18 © AB InBev 2019 – All rights reserved 13
Slide 14: Mainstream and Affordable brands performed well in Brazil
Mainstream and Affordable brands performed well, underpinned by a portfolio approach Skol Brahma Smart Affordability Regional brands Easy-drinking, innovation & youth Classic lager, heritage brewed with local crops © AB InBev 2019 – All rights reserved 14
Slide 15: Potential minority stake listing of our APAC business
We are actively exploring a potential minority stake listing of our APAC business • We are actively exploring a potential minority stake listing of our APAC business • Proceeding with a listing will depend on a number of factors • The merits of this initiative are based upon the creation of an APAC
Slide 16: Financials
Financials © AB InBev 2019 – All rights reserved 16 16
Slide 17: Synergy capture continues
Synergy capture continues • Continue to expect estimated incremental pre-tax synergies of 3.2 billion USD per annum (on a constant currency basis as of August 2016), including the 1.05 billion USD cost and efficiency savings identified by SAB, to be delivered by the end of 2019. These figures do not
Slide 18: Decrease in net finance costs excluding non-recurring items
Decrease in net finance costs excluding non-recurring items driven primarily by the swing in MTM on the share-based payment programs Interest expense Net interest on MTM - share Currency and Bank fees, Hyperinflation 1Q18 including net defined Accretion based payment other hedging transaction moneta
Slide 19: Normalized Effective Tax Rate (ETR)
Normalized Effective Tax Rate (ETR) 28.0% 27.7% 25.4% 27% 25% 20.1% 1Q18 Restated 1Q18 Restated 1Q19 1Q19 FY19 Guidance* excluding MTM excluding MTM *Reflects our normalized ETR guidance, excluding any gains and losses relating to the hedging of our share-based payment programs © AB InBev 2019 – All
Slide 20: Underlying EPS decreased from $0.85 to $0.79 in 1Q19
Underlying EPS decreased from $0.85 to $0.79 in 1Q19 0.85 0.05 0.79 0.02 0.02 0.02 0.00 0.01 USD 1Q18 Restated Normalized Hyperinflation Net Finance Income Tax Associates and Net Hyperinflation 1Q19 EBIT impact at Costs Expense Non-Controlling Impact in EPS EBIT level Interest Notes: (1) Underlying
Slide 21: Replaced near term bond maturities with longer-dated debt
We replaced a significant portion of our near term bond maturities with longer-dated USD and EUR debt, eliminating any refinancing pressure ABI Bond Maturity Profile as of 31 March 2019 $9B RCF Capacity + $7B Cash & Cash Equivalents = $16B Total Liquidity (as of 31 December 2018), far exceeding debt
Slide 22: Debt profile protects against interest rate and currency risk
Our resulting debt profile continues to protect us against interest rate and currency risk, with longer weighted average maturity Addressed near Diverse currency Very manageable ~94% of our debt is term maturities to mix of our debt pre-tax gross debt fixed rate reduce refinancing reduces risk coupo
Slide 23: Capital Allocation Objectives
Capital Allocation Objectives Our optimal capital structure is a Net Debt/EBITDA ratio of approximately 2x. The priorities for the use of cash are as follows: 1. Organic growth: Investing in the organic growth of our business 2. Deleveraging: Deleveraging to around the 2x level remains our commitmen
Slide 24: Q&A
Q&A © AB InBev 2019 – All rights reserved