Anheuser-busch Inbev Sa/nv · EURONEXT:ABI
Anheuser-busch Inbev Sa/nv — SABMiller — H1 F14 Earnings Presentation
46 slides from Anheuser-busch Inbev Sa/nv's earnings presentation, Nov 21, 2013
Slide 1: SABMiller plc F14 first half results
SABMiller plc F14 first half results Six months ended September 30, 2013 Jamie Wilson, Chief Financial Officer Gary Leibowitz, SVP Investor Relations and Internal Communications November 21, 2013
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: Top line and margin growth delivered in the first half
Top line and margin growth delivered in the first half Organic constant currency NPR growth of 4% – Organic total volume growth of 2% Organic constant currency EBITA growth of 7% – EBITA margin growth of 80 bps 1 1 on an organic constant currency basis © SABMiller plc 2013
Slide 4: Top line success drivers
Top line success drivers Increasing breadth of our brand portfolios – Broaden appeal and occasions of our core brands – Expand our premium offerings – Innovation up and down the price ladder Selective price increases and positive brand mix Continued investment in capacity, capabilities and rou
Slide 5: Top line success drivers
Top line success drivers Increasing breadth of our brand portfolios – Broaden appeal and occasions of our core brands – Expand our premium offerings – Innovation up and down the price ladder Selective price increases and positive brand mix Continued investment in capacity, capabilities and rou
Slide 6: Our performance in developing markets remains broadly positive
Our performance in developing markets remains broadly positive Benefit from our balanced geographical footprint Our in-trade execution and scale mitigate mixed trading conditions Underlying fundamentals across most of our developing markets remain strong © SABMiller plc 2013
Slide 7: Latin America
Latin America Gained share of total alcohol Pack innovations driving affordability and capturing more frequent beer occasions Growing premium segment with the Miller brand family © SABMiller plc 2013 7
Slide 8: Latin America
Latin America Gained share of total alcohol Pack innovations driving affordability and capturing more frequent beer occasions Growing premium segment with the Miller brand family © SABMiller plc 2013 8
Slide 9: Europe
Europe Challenging first half, particularly in Poland & Czech Republic – Cycling Euro 2012 football championships – Poor weather conditions – Economic difficulties – Worsening consumer optimism Share gains in Western Europe driving profitable growth Efes challenges in Russia and Turkey © SABMi
Slide 10: Europe
Europe Challenging first half, particularly in Poland & Czech Republic – Cycling Euro 2012 football championships – Poor weather conditions – Economic difficulties – Worsening consumer optimism Share gains in Western Europe driving profitable growth Efes challenges in Russia and Turkey © SABMi
Slide 11: North America
North America Above premium innovation off to a strong start for Redd‟s and Third Shift Tenth & Blake outpacing growth in craft Premium lights continue to be challenging Top line growth achieved through effective revenue management Restructuring the organisation for future growth © SABMill
Slide 12: North America
North America Above premium innovation off to a strong start for Redd‟s and Third Shift Tenth & Blake outpacing growth in craft Premium lights continue to be challenging Top line growth achieved through effective revenue management Restructuring the organisation for future growth © SABMill
Slide 13: North America
North America Above premium innovation off to a strong start for Redd‟s and Third Shift Tenth & Blake outpacing growth in craft Premium lights continue to be challenging Top line growth achieved through effective revenue management Restructuring the organisation for future growth © SABMill
Slide 14: Africa
Africa Robust volume growth in most key markets, particularly West Africa Growth in group NPR through selective price increases and supported by premiumisation Significant strides in S&D penetration and in-trade execution © SABMiller plc 2013 14
Slide 15: Africa
Africa Robust volume growth in most key markets, particularly West Africa Growth in group NPR through selective price increases and supported by premiumisation Significant strides in S&D penetration and in-trade execution © SABMiller plc 2013 15
Slide 16: AsiaPacific
AsiaPacific China: CR Snow continues to grow market share organically Completion of Kingway acquisition India: Unusually intense and prolonged monsoon season Continued regulatory headwinds © SABMiller plc 2013 16
Slide 17: AsiaPacific
AsiaPacific Australia: Building on the initial integration success Continuing efforts to „Restore the Core‟ and build a Winning „Portfolio‟ – Crown: „Australia‟s Finest‟ – Carlton Cold: „ice cold‟ activation – Cascade: repositioned into craft – Kopparberg: CUB take distribution Joint business
Slide 18: AsiaPacific
AsiaPacific Australia: Building on the initial integration success Continuing efforts to „Restore the Core‟ and build a Winning „Portfolio‟ – Crown: „Australia‟s Finest‟ – Carlton Cold: „ice cold‟ activation – Cascade: repositioned into craft – Kopparberg: CUB take distribution Joint business
Slide 19: South Africa
South Africa Solid growth despite soft consumer spending – Castle Lite over half of premium lager – Strength of Castle Lager – Carling Black Label successful turnaround Healthy revenue growth driven by firm lager pricing and positive brand mix Enlarged sales force in both beer and soft drinks
Slide 20: South Africa
South Africa Solid growth despite soft consumer spending – Castle Lite over half of premium lager – Strength of Castle Lager – Carling Black Label successful turnaround Healthy revenue growth driven by firm lager pricing and positive brand mix Enlarged sales force in both beer and soft drinks
Slide 21: Financial Review
Financial Review Jamie Wilson Chief Financial Officer
Slide 22: New and revised reporting metrics
New and revised reporting metrics 23.1% 23.7% 23.7% 18.0% 18.5% Group net producer revenue (NPR) EBITA Sept 12 March 13 Sept 13 EBITA* % of group NPR EBITA margin, expressed as a % EBITA* % of group revenue of group NPR 2.7 2.6 EBITDA 2.4 2.3 2.4 Sept 12 March 13 Sept 13 Net debt Net debt
Slide 23: Adjusted EPS and dividends
Adjusted EPS and dividends Adjusted EPS 22% 5% 3% US$ Sterling Rand Interim Dividend X.X US cents per share – up xx% © SABMiller plc 2013 23
Slide 24: Revenue and earnings growth
Revenue and earnings growth Sept 13 Reported Organic Total volumes 4.4% 1.6% Lager volumes 0.9% 1.0% Organic, constant Reported currency Group revenue 0.5% 3.7% Group net producer revenue 0.9% 3.6% EBITA 3.7% 7.2% EBITA margin 60bps 80bps All figures include our share of associates and joint venture
Slide 25: Organic, constant currency group NPR per hl performance
Organic, constant currency group NPR per hl performance Group NPR per hl performance, YoY % 6 months to 30 September 2013 SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (3%) (2%) (1%) 0% 1% 2% 3% 4% 5% 6% Figures include our share of associates and joint venture
Slide 26: Input costs towards the lower end of expectations
Input costs towards the lower end of expectations Half year constant currency increase per hl – Total raw materials Up low single digits – Total COGS Barley and malt price growth effectively contained, with benefit from global procurement initiatives Higher fuel prices drive up distribution co
Slide 27: Organic, constant currency EBITA margin
Organic, constant currency EBITA margin EBITA margin* performance, YoY basis points change 6 months to 30 September 2013 SABMiller Total Latin America Europe North America Africa Asia Pacific SA: Beverages (200) (150) (100) (50) 0 50 100 150 200 250 * EBITA % NPR (as per new reporting metrics) © SAB
Slide 28: Cash flow, finance costs and taxation
Cash flow, finance costs and taxation US$m Sept 13 Sept 12 Adjusted EBITDA 3,202 3,160 Working Capital outflow (incl (67) (219) provisions) Capex* 670 655 Free Cash Flow** 894 1,684 Adjusted net finance costs 345 387 Adjusted EBITDA margin 23.2% 23.1% Effective tax rate 26.8% 27.5% * Includes purcha
Slide 29: Net debt
Net debt US$m Sept 13 March 13* Non-current borrowings (16,196) (16,079) Current borrowings (1,503) (2,469) Cash and cash equivalents 1,286 2,171 Financing derivative financial instruments 772 777 Net debt (15,641) (15,600) Gearing (%) 59.2 56.8 Net debt / Adjusted EBITDA** 2.4 2.4 Weighted average
Slide 30: Financial outlook – current financial year
Financial outlook – current financial year Developing markets will continue to lead group NPR growth Key currency depreciation against the US dollar will impact reported results Maintained focus on pricing and premiumisation Input costs per hl expected to rise – Total raw materials* low to m
Slide 31: Conclusion
Conclusion Delivered group NPR growth with margin improvement SABMiller‟s consistent strategy is delivering replicable successes Our core lager brands are at the heart of the business Our consumer insights are driving broader portfolios and building the category We see substantial long ter
Slide 32: Q&A
Q&A
Slide 33: Slide 33
Slide 34: Supplementary information
Supplementary information
Slide 35: EBITA growth
EBITA growth EBITA (including associates and joint ventures) components of performance, US$m 7.2% 1.1% 2.8% (4.4)% 3,235 3,268 3,147 Sept '12* Underlying Currency Sept '13 Acquisitions Sept '13 Performance Organic Reported * Restated and adjusted for disposals © SABMiller plc 2013 35
Slide 36: Group NPR growth
Group NPR growth Group NPR (including associates and joint ventures) components of performance, US$m 2.0% 1.6% 1.7% (0.5%) (4.1%) 13,793 13,632 13,566 Sept '12* Volume Price/mix Currency Sept '13 Acquisitions Sept '13 Organic Reported * Adjusted for disposals © SABMiller plc 2013 36
Slide 37: Net debt: currency and maturity profile
Net debt: currency and maturity profile Currency profile Maturity profile * 18% 1% 18% 42% 38% 12% 7% 5% 16% 43% US dollar Euro Rand < 1 year 1-2 years 2-5 years > 5 years Colombian peso Aus dollar Other * Cash and cash equivalents netted against current borrowings © SABMiller plc 2013 37
Slide 38: Reported EBITA contribution
Reported EBITA contribution* September 2013 September 2012** 2% 2% 12% 13% 29% 28% 16% 16% 12% 15% 11% 16% 14% 14% Latin America Europe North America Africa Asia Pacific South Africa: Beverages South Africa: Hotels & Gaming * Before corporate costs ** Restated © SABMiller plc 2013 38
Slide 39: Financial results
Financial results Sept Sept Change US$m 13 12 % Reported Group revenue 17,559 17,476 - Group net producer revenue 13,793 13,669 1 EBITA 3,268 3,153 4 EBITA margin* (%) 23.7 23.1 60 bps Sales volumes (hl m) Total 170 163 4 Lager 134 132 1 Soft drinks 33 27 23 Other alcoholic beverages 4 4 1 * Express
Slide 40: Group NPR by division
Group NPR by division Sept Sept Change US$m 13* 12** % Organic, constant currency Latin America 2,858 2,721 5 Europe 2,435 2,454 (1) North America 2,514 2,518 - Africa 1,686 1,523 11 Asia Pacific 2,230 2,183 2 South Africa: Beverages 2,176 2,031 7 South Africa: Hotels and Gaming 218 202 8 * Results
Slide 41: EBITA by division
EBITA by division Sept Sept Change US$m 13* 12** % Organic, constant currency Latin America 1,008 915 10 Europe 473 516 (8) North America 478 464 3 Africa 413 355 16 Asia Pacific 564 504 12 South Africa: Beverages 455 421 8 South Africa: Hotels and Gaming 68 65 4 * Results for the half year ended 30
Slide 42: EBITA margin performance
EBITA margin* performance Organic, constant currency basis 35.3% Sept 13 Sept 12** 33.6% 24.5% 23.3% 25.3% 23.9% 23.1% 23.1% 21.0% 20.9% 20.7% 19.4% 19.0% 18.4% Latin America Europe North America Africa Asia Pacific SA: Beverages Group * Expressed as a percentage of group NPR ** Restated and adjuste
Slide 43: Reported EBITA margin performance
Reported EBITA margin* performance 35.3% Sept 13 Sept 12 33.6% 24.6% 25.0% 23.3% 23.0% 23.7% 23.1% 21.0% 21.0% 20.7% 19.1% 19.0% 18.4% Latin America Europe North America Africa Asia Pacific SA: Beverages Group * As restated and expressed as a percentage of group NPR © SABMiller plc 2013 43
Slide 44: Reported volumes
Reported volumes* Reported Lager volumes by country, hl ’000 Sept Change Sept Change 13 % 13 % China ** 36,946 6 Czech Republic 3,642 (7) South Africa 12,800 3 Australia 3,329 (11) Colombia 9,636 1 Ecuador 2,791 2 Poland 7,827 (10) India 2,776 (2) Peru 6,119 (1) Italy 2,118 (1) Romania 3,786 6 Tanza
Slide 45: Exchange rates
Exchange rates Closing rates vs US$ 30 Sept 31 Mar 30 Sept 30 Sept 31 Mar 30 Sept 13 13 12 13 13 12 Australia 1.07 0.96 0.96 Mozambique 29.04 29.69 27.98 China 6.12 6.21 6.29 Peru 2.79 2.59 2.60 Colombia 1,915 1,832 1,801 Poland 3.12 3.26 3.20 Czech 19.05 20.07 19.32 Romania 3.29 3.44 3.53 Republic
Slide 46: Balance sheet
Balance sheet Sept March US$m 13 13 Goodwill and intangible assets 27,453 29,497 Property, plant and equipment 8,973 9,059 Investment in joint ventures and associates 11,212 10,963 Other non-current assets 1,114 1,069 Current assets excluding cash 3,613 3,512 Cash and cash equivalents 1,286 2,171 As