Anheuser-busch Inbev Sa/nv · EURONEXT:ABI

Anheuser-busch Inbev Sa/nv — Sanford Bernstein Strategic Decisions Conference 2010

37 slides from Anheuser-busch Inbev Sa/nv's conference presentation, Sep 22, 2010

  1. Slide 1: Sanford Bernstein Strategic Decisions Conference

    Sanford Bernstein Strategic Decisions Conference Carlos Brito Chief Executive Officer London, 22 September 2010 © AB InBev 2010 – All rights reserved

  2. Slide 2: Forward looking statements

    Forward looking statements There are statements in this document, such as statements that include the words or phrases “outlook”, “will likely result”, “are expected to”, “will continue”, “is anticipated”, “estimate”, “project”, “may” or similar expressions that are “forward looking statements”. The

  3. Slide 3: Agenda

    Agenda Anheuser-Busch InBev Industry leading scale The right brands The most attractive markets Financial discipline 2 © AB InBev 2010 – All rights reserved

  4. Slide 4: AB InBev brings together seven centuries of brewing history through value-creating consolidation

    AB InBev brings together seven centuries of brewing history through value-creating consolidation 1987 1995 2002 2004 2008 Market cap (20 Sept 10): 2000 2002 2004 68.9 billion EUR 3 © AB InBev 2010 – All rights reserved

  5. Slide 5: Among the world's leading consumer products companies

    …and is now among the world’s leading consumer products companies 30 Number of Billion-Dollar-Brands 25 20 15 10 5 0 0 5 10 15 20 25 Source: Company filings, AB InBev estimates Annual EBITDA ($ billion) 4 © AB InBev 2010 – All rights reserved

  6. Slide 6: Balanced exposure to developed and fast-growing emerging markets

    Balanced exposure to developed and fast-growing emerging markets 2009 volumes by region AB InBev total: 391.1 million hls Central & Eastern 7% Europe Western EBITDA: 3% 34% Europe 8% EBITDA: 9% North 13% America Asia Pacific EBITDA: 51% EBITDA: 2% 28% Latin America Latin North America 9% EBITDA: 29%

  7. Slide 7: United by our Dream-People-Culture platform

    United by our Dream-People-Culture platform Our Dream To be the best beer company in a better world Our People Great companies are formed by great people Our most important sustainable competitive advantage Meritocracy, informality, candor Our Culture We are never completely satisfied with results C

  8. Slide 8: In 2009 we focused on deleveraging – now on profitable growth

    In 2009, we focused on deleveraging – the focus is now on profitable growth Leveraging industry leading scale With the right brands to drive premiumization and share gains Taking advantage of leading positions in the most attractive markets Executing with financial discipline 7 © AB InBev 2010 – All

  9. Slide 9: Agenda

    Agenda Anheuser-Busch InBev Industry leading scale The right brands The most attractive markets Financial discipline 8 © AB InBev 2010 – All rights reserved

  10. Slide 10: Global scale advantage

    Global scale advantage AB InBev EBITDA is approximately equal to the next four competitors combined Global brewers 2009 EBITDA ($ billion) $13.0 $5.2 $4.8 $2.5 $0.9 AB InBev SABMiller Heineken Carlsberg Molson Coors Global brewers 2009 volumes (million Hl) 409 261 125 137 50 AB InBev SABMiller Heine

  11. Slide 11: Best in class footprint

    Best in class footprint Leading positions in 7 out of the top 10 beer margin pools Country Brewer Share Country Brewer Share AB InBev 49% Oetker Group 15% 1. USA MillerCoors 29% 6. Germany AB InBev 9% Crown 6% Bitburger 9% AB InBev 69% Foster’s 50% 2. Brazil Schincariol 12% 7. Australia Lion Nathan

  12. Slide 12: Scale brings us "the best of the best"

    Scale brings us “the best of the best” 11 © AB InBev 2010 – All rights reserved

  13. Slide 13: Scale advantages drive profitability

    Scale advantages drive profitability EBITDA margin (% net sales) 80% Bolivia 60 Brazil Paraguay US Netherlands Belux Canada Argentina 40 Italy/Spain Germany /Swiss Russia /Austria Ukraine Uruguay Legend: 20 France China UK $800M EBITDA 0 0.1 0.2 0.5 1 2 5 10 Log RMS Source: Company estimates Note: U

  14. Slide 14: Agenda

    Agenda Anheuser-Busch InBev Industry leading scale The right brands The most attractive markets Financial discipline 13 © AB InBev 2010 – All rights reserved

  15. Slide 15: Focused approach to a 200+ brand portfolio

    Focused approach to a 200+ brand portfolio Global Global Brands Brands focus focus on on 3 3 strong strong global global brands brands Multi-Country Multi-Country Brands Brands e.g. e.g. Hoegaarden Hoegaarden >> 30 30 countries countries “Local “Local Jewels” Jewels” 14 © AB InBev 2010 – All rights

  16. Slide 16: Three brands in BrandZ Global Top Five

    Three brands in BrandZ Global Top Five 2007 2008 2009 2010 1 2 3 4 5 6 7 8 9 10 Source: BrandZ Report – Millward Brown Optimor Note: Brand value calculated as the present value of all future brand earnings 15 © AB InBev 2010 – All rights reserved

  17. Slide 17: Stella Artois – successfully driving premium in key markets

    Stella Artois – successfully driving premium in key markets Stella UK 9.9% 9.8% Apr 09: 2nd The global dream: 9.7% Feb 09: 2009 PINC Wave Stella 4% Advertising Jul 09: Launch of Eco Oct 08: 2008 Program 2nd PINC To be recognized by the 9.6% Feb 08: Beginning Mar 09: Start of Stella 4% of Stella Arto

  18. Slide 18: Stella Artois US – significant upside potential

    Stella Artois US – significant upside potential Stella Artois in the US: Continuing to grow share of the import category 18.9% 17.8% 18.2% 17.7% 17.0% 16.2% import category Share of 2.9% 3.3% 2.0% 2.6% 1.2% 1.8% 2005 2006 2007 2008 2009 PYE 2010 Stella Artois Heineken Source: 2010 Beer Marketer’s In

  19. Slide 19: Budweiser – the global dream

    Budweiser – the global dream To be the first and only true global beer brand Budweiser – the brand manifesto As a world renowned icon and a symbol of optimism, I am Budweiser, I am beer and I welcome all. For those who choose to be pilots, not passengers. For those who understand that they’ll never

  20. Slide 20: Only three brands look global today

    Only three brands look global today TOP 15 MARKETS WORLDWIDE in VALUE (RSV) - 2008 (*) USA JAP CHI UK GER RUSS BRA SPA MEX CAN AUS ITA KOR FRA POL 1 SNOW 2 BUD LIGHT 3 BUDWEISER 4 SKOL 5 CORONA 6 HEINEKEN 7 BRAHMA 8 COORS LIGHT 9 TSINGTAO 10 MILLER LITE Relevant challenger or leader. Share > 3% Rele

  21. Slide 21: Agenda

    Agenda Anheuser-Busch InBev Industry leading scale The right brands The most attractive markets Financial discipline 20 © AB InBev 2010 – All rights reserved

  22. Slide 22: Leading positions in the most attractive markets

    Leading positions in the most attractive markets Forecast contribution to 2009 market share industry volume growth (2010-2015) China 46.0% China 11% 18% (2) 2% Brazil 7.6% Brazil 69% – 9% USA 4.5% USA 49% 29% 4% Mexico 4.1% Mexico 56% (1) – 42% Vietnam 3.9% Vietnam – – 12% Russia 3.9% Russia 16% 5%

  23. Slide 23: US beer volumes have grown consistently

    US beer volumes have grown consistently 1999-2008 CAGR: +0.8% 1999-2009 CAGR: +0.5% 260 250 1989-1999 CAGR: +0.5% 240 230 Volume (million Hls) 220 210 200 190 180 170 160 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

  24. Slide 24: Beer remains affordable in the US

    Beer remains affordable in the US Normalized price of beer Consumption of beer USD per bottle Liters per capita Victoria Bitter Australia 3.62 82 Asahi Super Dry Japan 2.37 52 Budweiser Canada 2.25 69 Carling UK 1.26 90 Budweiser US 1.00 80 Skol Brazil 0.61 58 Source: Company research 2008 Note: Sel

  25. Slide 25: Leadership in 80% of industry with many opportunities for growth

    Leadership in 80% of industry with many opportunities for growth #1 in Sub- #1 in Sub- #1 in the US Overall #1 Fastest Growing Premium Premium #1 in Premium & in Super & Regular Light Regular #1 in Premium Light Premium Highest Price Import % market Total Other share SubPremium SubPrem Premium Premi

  26. Slide 26: Brazil – Maintained share while increasing EBITDA

    Brazil – Maintained share while increasing EBITDA EBITDA and market share evolution 7000 69.4 68.8 68.7 68.4 68.3 67.8 70 67.2 67.5 6000 66.2 65 5000 60 4000 EBITDA 55 (R$M) 3000 5,884 Share (%) 5,166 5,079 4,479 50 2000 3,731 2,900 2,425 2,500 45 1000 1,775 0 40 2001 2002 2003 2004 2005 2006 2007 2

  27. Slide 27: Income growth and innovation drive per capita growth

    Income growth and innovation drive per capita growth Beer per capita consumption (L/Year) 60.9 56.8 57.8 54.1 50.1 51.7 47.2 1.35 1.15 1.15 1.25 0.95 0.83 0.84 0.80 46.40 49.26 50.87 52.85 55.65 56.65 58.60 2003 2004 2005 2006 2007 2008 2009 Source: LCA Base volume Income growth impact Innovations i

  28. Slide 28: Best array of innovations

    Best array of innovations Skol Brahma 300ml Brahma Red can Skol 360 1L 300ml Sleek cans 1L Rollout RGB rollout RGB Fresh packaging rollout Antarctica Premium Stella Bohemia Bohemia Swiss Artois Oaken Draft 1L 1L A. SubZero rollout 27 © AB InBev 2010 – All rights reserved Original 300ml

  29. Slide 29: Significant premiumization opportunity

    Significant premiumization opportunity % premium – % premium beer volume – beer vs. other categories per country 60% 51% 50% 50% 45% 43% 43% 42% 40% 40% 37% 40% 35% 32% 31% 30% 30% 28% 25% 23% 22% 22% 20% 20% 18% 20% 16% 15% 13% 13% 9% 10% 7% 10% 7% 5% 5% 5% 2% 3% 3% 0% 0% Beer (1998) Beer (2009) Oi

  30. Slide 30: Social mobility leads to consumption growth

    Social mobility leads to consumption growth In 2002 Family income Today (in R$) 13% >4,591 15.5% Upper class (classes A & B) 1,065-4,591 Middle class 44% (class C) 52% 768-1,064 Semipoor 12.5% (class D) 14% Bottom 30.5% <768 18.5% (class E) A new class C 32 million people moved up from the bottom to

  31. Slide 31: China is the fastest growing market, led by the premium segment

    China is the fastest growing market, led by the premium segment #1 beer market Premium segment as a but #81 in per capita consumption % of the total market +7.5% R CAG 3.0% 397M Hl % 15 % + 16 World #1 R + since G GR 2003 CA A 210M Hl 1.6% C 156M Hl 0.5% 7M Hl 0.0% 1980 1995 2000 2009 1980 1995 2000

  32. Slide 32: The premium segment is very attractive

    The premium segment is very attractive Price Price to Segment Leader Segment Consumer 1 Size % Premium 10.0 3% Core + 6.0 13% Core 3.0 54% Value Regional 2.0 30% Brands Source: SEEMA International (1) Mode price to consumer in Chinese Restaurants – RBM per bottle 31 © AB InBev 2010 – All rights rese

  33. Slide 33: Budweiser leads the premium segment

    Budweiser leads the premium segment Budweiser in China is a Leader in the premium segment synonym for Bigness, Power and Status “The King of Beers” Others Budweiser, 35.0% Corona San Miguel Coors Heineken Carlsberg Tsingtao, Snow, 7.0% 23.0% 32 © AB InBev 2010 – All rights reserved

  34. Slide 34: Agenda

    Agenda Anheuser-Busch InBev Industry leading scale The right brands The most attractive markets Financial discipline 33 © AB InBev 2010 – All rights reserved

  35. Slide 35: Margin drivers in place for continued improvement

    Margin drivers in place for continued improvement +1,550 bp Margin evolution 36.8% Key margin drivers 35.8% 34.6% Dream-People-Culture 31.9% 30.8% 28.6% Benchmarking DNA 24.7% Group-wide best practices 21.3% WCCP Sales and Marketing Distribution Execution Excellence Voyager Plant Optimization Operat

  36. Slide 36: Superior cash flow generation

    Superior cash flow generation 1 2009 operating cash flow and external cash conversion Cash flow ($ million) $18,000 Bubble size represents EBITDA $15,000 Nestle $12,000 P&G AB InBev $9,000 Unilever $6,000 Pepsi Coca-Cola $3,000 SABMiller Diageo Heineken Reckitt Benckiser 60% 70% 80% 90% 100% Cash co

  37. Slide 37: Summary

    Summary #1 Leading Global Beer Company with leadership positions in the two largest profit pools, US and Brazil, and a strong position in the biggest and fastest growing volume pool: China Track Record of Margin Enhancement driven by top line growth, economies of scale, global business processes, an

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