Anheuser-Busch InBev SA/NV · EURONEXT:ABI
Anheuser-Busch InBev SA/NV — Morgan Stanley Consumer & Retail Conference 2009
24 slides from Anheuser-Busch InBev SA/NV's conference presentation, Nov 20, 2009
Slide 1: Morgan Stanley Consumer & Retail Conference
Morgan Stanley Consumer & Retail Conference New York, November 20, 2009 © AB InBev 2009 – All rights reserved
Slide 2: Introduction – Carlos Brito, CEO
Carlos Brito Chief Executive Officer Introduction © AB InBev 2009 – All rights reserved
Slide 3: AB InBev brings together seven centuries of brewing history
AB InBev brings together seven centuries of brewing history through value-creating consolidation 1987 1995 2002 2004 2008 Market Cap (11/18/09): 2000 2002 2004 $81.8 Billion 2 © AB InBev 2009 – All rights reserved
Slide 4: Progress since the Anheuser-Busch combination closed
Progress since the Anheuser-Busch combination closed Capital markets Raised over $37 billion through: • $9.8 billion rights offering • Over $20 billion in bond issuances • Disposals: Overachieved on our $7 billion target Brought the BUD ticker back to the NYSE 9M 2009 financial highlights Improved r
Slide 5: Dream – People – Culture
Dream – People – Culture Dream To become the Best Beer Company in a Better World People Great companies are formed by great people Our most important sustainable competitive advantage Meritocracy, informality, candor Culture Consumer-centric Think and act like owners Disciplined execution Hard work
Slide 6: Combined Anheuser-Busch InBev
Combined Anheuser-Busch InBev Total Normalized volumes Revenue EBITDA North 34% America 40% 39% Latin America North 24% 20% 29% Latin America South 8% 5% Western Europe 8% 13% 7% Central & 8% 11% 8% Eastern Europe 5% Asia Pacific 6% 4% 14% Global Export & 9% 8% Holding Companies 1% Total FY 08(a): 4
Slide 7: Leading market share across key countries
Leading market share across key countries Market position Key countries Selected brands and share US No. 1 49.9% Canada No. 1 42.9% Brazil(a) No. 1 67.5% Argentina(a) No. 1 74.4% Belgium No. 1 57.7% Ukraine No. 1 37.5% Germany(a) No. 2 9.6% Russia No. 2 18.4% UK No. 3 21.8% China(b) No. 3 11.2% Sour
Slide 8: AB InBev is among the world's leading consumer products companies
AB InBev is among the world’s leading consumer products companies 35 Number of Billion-Dollar-Brands 30 25 20 15 10 5 0 0 5 10 15 20 25 Annual EBITDA ($ billion) Source: Company filings, AB InBev estimates 7 © AB InBev 2009 – All rights reserved
Slide 9: Billion-dollar brands revenue
13 “billion-dollar-brands” 10.3 9.3 Revenue ($ billion) 5.5 3.2 3.1 2.5 2.4 1.9 1.8 1.7 1.3 1.1 1.0 Busch Quilmes Antarctica Beck’s Global Stella Artois Brahma Jupiler Budweiser Skol Natural Light Sedrin (Brazil) Bud Light Michelob Global Global Note: Figures represent total retail sales value Euro-
Slide 10: Three AB InBev brands in BrandZ Global Top 5
Three AB InBev brands in BrandZ Global Top 5 2007 2008 2009 1 2 3 4 5 6 7 8 9 10 Source: BrandZ Report – Millward Brown Optimor Note: Brand value calculated as the sum of all future earnings each brand is forecast to generate, discounted to a present day value 9 © AB InBev 2009 – All rights reserved
Slide 11: Topline growth, scale and efficiencies driving margin expansion
Topline growth along with increased scale and efficiencies has driven steady margin expansion +1,490 bps Margin drivers Margin evolution 36.2% 33.1% Topline growth 31.9% 32.7% 28.6% Mutual exchanging of best practices 24.7% Increasing scale reinforced by 21.3% financial discipline Global sales and m
Slide 12: Global market leader connects in new ways to drive growth
As the global market leader, AB InBev connects in new ways to drive growth We win through growing our share of throat and the category by: Connecting with new consumers Connecting through new innovations Connecting with new media Connecting in new markets 11 © AB InBev 2009 – All rights reserved
Slide 13: Case studies in connecting: Stella Artois and Premium Light
Case studies in connecting: Stella Artois and Premium Light segment New New New consumers innovations media 12 © AB InBev 2009 – All rights reserved
Slide 14: Stella Artois – Brand building based on seven centuries of tradition
Stella Artois – Brand building based on seven centuries of tradition The Chalice Perfect Pouring Innovation Super Premium Ritual Positioning Perfection has its price Sophistication and Rich Heritage Modern Culture Applications 13 © AB InBev 2009 – All rights reserved
Slide 15: Wine lovers increasingly love Stella Artois
Wine lovers increasingly love Stella Artois Sophistication imagery Wine In sophistication, Stella Stella Artois Hard Liquor Artois is closer to wine Beer than to beer 0 10 20 30 40 50 60 Past week consumption Stella Artois Stella Artois drinkers Heineken consume wine twice as Beer often as beer drin
Slide 16: Redefining the Premium Light category
Redefining the Premium Light category Lowest calorie beer in the world Huge flavor Redefining wheat beer Bud Light Lime #1 beer in the US overindexes with women: 35% vs. 20% industry average The summer state of mind Low-carb for active #13 beer only 1 year after lifestyles launch¹ M #13 in the beer
Slide 17: Michelob ULTRA
Michelob ULTRA Active lifestyle Sophisticated image Low carb message Lance Armstrong: A spokesperson who personifies the ULTRA attitude and lifestyle 16 © AB InBev 2009 – All rights reserved
Slide 18: Breaking new ground with Bud Light Golden Wheat
Breaking new ground with Bud Light Golden Wheat The first Light Wheat beer, growing the category Brand role • Expand the consumer base and occasions of the Bud Light mega brand • Trendsetter (primary) • Loyalist (secondary) • Define the wheat beer category for target consumers ages 25-44 Positioned
Slide 19: Connecting through social media: Bud Light Lime in Canada
Connecting through social media: Bud Light Lime in Canada launch strategy LimeInvasion Phase 1: Phase 2: Phase 3: Harness early Earn social Drive mass social adopters buzz awareness 3 days, 5 cities, 50,000 limes Earning buzz by driving to #1 sponsored YouTube channel in May ‘09 18 © AB InBev 2009 –
Slide 20: 3Q 2009 highlights
3Q 2009 highlights $ million, 3Q08 3Q08 3Q09 Organic except per share data reported combined growth(a) Revenue 6,061 10,893 9,763 -0.4% Gross profit 3,502 5,599 5,259 5.2% Normalized EBITDA 2,138 3,553 3,549 11.9% % Margin 35.3% 32.6% 36.4% 394 bp Normalized EPS 0.87 0.72 EPS 0.72 0.98 Broad market
Slide 21: 4Q and 2009 outlook
4Q and 2009 outlook Improved volume performance • Demand trends remain soft, but we see improved volume performance in 4Q09 compared with 3Q09 year-over-year results Cost of Sales per hectoliter • Projected to decline slightly percentagewise for 2009 in total Increased sales and marketing investment
Slide 22: On track to achieve our 2009 commitments
On track to achieve our 2009 commitments 2009 commitments Status • Capturing $1 billion of synergies $875 million achieved in 9M09 • Releasing $500 million of working $312 million positive cash flow impact in capital in the US HY09, excluding derivatives • Maintaining pricing discipline in 9M09 reve
Slide 23: 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 topline growth, economies of scale, global business processes,
Slide 24: Q&A
Q&A © AB InBev 2009 – All rights reserved
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