Deutsche Bank Consumer
Conference
17 June 2014
© AB InBev 2014 – All rights reserved
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 the Company with the competent securities regulators or other
authorities, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and
constitute forward-looking statements.
Forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown
risks, uncertainties and other factors, many of which are outside the Company’s control and are difficult to predict, that may cause actual results or developments to
differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors that could cause actual results to differ
materially from those contemplated by the forward-looking statements include, among others: (i) local, regional, national and international economic conditions,
including the risks of a global recession or a recession in one or more of the Company’s key markets, and the impact they may have on the Company and its
customers and its assessment of that impact; (ii) limitations on the Company’s ability to contain costs and expenses; (iii) the Company’s expectations with respect to
expansion, premium growth, accretion to reported earnings, working capital improvements and investment income or cash flow projections; (iv) the Company’s ability
to continue to introduce competitive new products and services on a timely, cost-effective basis; (v) the effects of competition and consolidation in the markets in
which the Company operates, which may be influenced by regulation, deregulation or enforcement policies; (vi) changes in consumer spending; (vii) changes in
applicable laws, regulations and taxes in jurisdictions in which the Company operates, including the laws and regulations governing the Company’s operations,
changes to tax benefit programs as well as actions or decisions of courts and regulators; (viii) changes in pricing environments; (ix) volatility in the prices of raw
materials, commodities and energy; (x) difficulties in maintaining relationships with employees; (xi) the monetary and interest rate policies of central banks, in
particular the European Central Bank, the Board of Governors of the U.S. Federal Reserve System, the Bank of England, Banco Central do Brasil and other central
banks; (xii) continued availability of financing and the Company’s ability to achieve its targeted coverage and debt levels and terms, including the risk of constraints
on financing in the event of a credit rating downgrade; (xiii) financial risks, such as interest rate risk, foreign exchange rate risk, commodity risk, asset price risk,
equity market risk, counterparty risk, sovereign risk, liquidity risk, inflation or deflation; (xiv) regional or general changes in asset valuations; (xv) greater than
expected costs (including taxes) and expenses; (xvi) the risk of unexpected consequences resulting from acquisitions; (xvii) tax consequences of restructuring and
the Company’s ability to optimize its tax rate; (xviii) the outcome of pending and future litigation and governmental proceedings; (xix) changes in government
policies; (xx) natural and other disasters; (xxi) any inability to economically hedge certain risks; (xxii) inadequate impairment provisions and loss reserves; (xxiii)
technological changes; and (xxiv) the Company’s success in managing the risks involved in the foregoing. All subsequent written and oral forward-looking statements
concerning the proposed transaction or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by
the cautionary statements referenced above. Forward-looking statements speak only as of the date on which such statements are made.
Certain of the synergies information related to the announced combination with (or acquisition of shares of) Grupo Modelo discussed herein constitute forward-looking
statements and may not be representative of the actual synergies that will result from the announced combination with (or acquisition of shares of) Grupo Modelo
because they are based on estimates and assumptions that are inherently subject to significant uncertainties which are difficult to predict, and accordingly, there can
be no assurance that these synergies will be realized.
The Company’s statements regarding financial risks, including interest rate risk, foreign exchange rate risk, commodity risk, asset price risk, equity market risk,
counterparty risk, sovereign risk, inflation and deflation, are subject to uncertainty. For example, certain market and financial risk disclosures are dependent on
choices about key model characteristics and assumptions and are subject to various limitations. By their nature, certain of the market or financial risk disclosures are
only estimates and, as a result, actual future gains and losses could differ materially from those that have been estimated. Subject to the Company’s obligations
under Belgian and U.S. law in relation to disclosure and ongoing information, the Company undertakes no obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any offer, solicitation or sale of securities in
any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction. By
attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the above limitations.
© AB InBev 2014 – All rights reserved
1
Agenda
1
AB InBev Business Model
2
Focus Brands Strategy
3
Commercial Priorities
4
Case Studies
© AB InBev 2014 – All rights reserved
2
Agenda
1
AB InBev Business Model
2
Focus Brands Strategy
3
Commercial Priorities
4
Case Studies
© AB InBev 2014 – All rights reserved
3
AB InBev has a simple and consistent business model
Our goal
Value creation through top line growth and margin enhancement
Leadership
• Focus on a few
big things
•
•
•
•
Markets
• Focus markets
Brands
• Focus Brands
strategy
Financial discipline
• Cost efficiency
• Risk management
• Most important profit
Healthy and
• Brand health today =
(commodities,
pools
sustainable industry
top line growth
currencies, interest)
• Topline growth
tomorrow
Pro-beer environment
potential
• Cash flow generation
• Renovation and
Long term ownership • Balance between and
innovation
mindset
developing and
• Premiumization
developed markets
Scale
• Revenue management
Driven by our powerful Dream-People-Culture platform
© AB InBev 2014 – All rights reserved
4
Agenda
1
AB InBev Business Model
2
Focus Brands Strategy
3
Commercial Priorities
4
Case Studies
© AB InBev 2014 – All rights reserved
5
An unparalleled portfolio of Leading Brands
AB InBev has 6 of the top 10 most valuable beer brands in the world, each with
distinct brand imagery and consumer positioning.
Top brands
Company
1
AB InBev
2
AB InBev
3
Heineken
12.6
11.8
8.7
Heineken
4
AB InBev
5
AB InBev
6
AB InBev
7
Guinness
8
Aguila
SABMiller
9
Miller Lite
SABMiller
10
Brand value in US$ Billion
8.2
8.0
7.1
5.0
Diageo
AB InBev
3.7
3.6
3.6
Source: 2014 Global BrandZ report
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6
Focus Brands strategy – devoting resources to
those brands with the greatest growth potential
Global
brands
International
brands
Examples of “local champions”
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7
Focus Brands continue to perform ahead of total
Own Beer volumes
Focus Brands as a
% of Total Own
Beer
75%
Volume
Growth
8.0%
66%
68%
69%
69%
69%
69%
6.0%
6.0%
65%
4.8%
4.5%
60%
4.0%
2.0%
70%
55%
2.1%
1.9%
1.5%
0.8%
50%
0.1%
0.0%
45%
-0.1%
-0.9%
-0.9%
-2.0%
2009
2010
Focus Brands growth
© AB InBev 2014 – All rights reserved
2011
Own Beer growth
2012
-2.0%
2013
40%
1Q14
Focus Brands % Total Own Beer
8
Continuous improvement in global Budweiser
+6.3%
+2.6%
Russia
-5.5%
Canada
UK
China
+3.8%
RoW
Brazil
RoW
Brazil
Russia
Canada
China
+6.4%
RoW
Brazil
Russia
China
China
China
US
US
US
US
2010
2011
2012
US
RoW
2009
© AB InBev 2014 – All rights reserved
2013
9
Global brands grew by 8.3% in 1Q14
Budweiser
+7.8%
Corona
+10.5%
Stella Artois
+5.2%
Good performances in
China, Brazil and UK
Driven by growth in
Mexico
Good growth in
Argentina, Brazil and US
© AB InBev 2014 – All rights reserved
10
Agenda
1
AB InBev Business Model
2
Focus Brands Strategy
3
Commercial Priorities
4
Case Studies
© AB InBev 2014 – All rights reserved
11
Driving topline growth remains our main priority
% organic growth
8.9%
FY14
guidance for
low to mid
teens increase
in Sales &
Marketing
Investments
4.5%
3.3%
-2.0%
2013
Own beer volume growth
© AB InBev 2014 – All rights reserved
1Q14
Revenue growth
12
Opportunities to increase beer share of throat
Beer Share of Throat by Market
Brazil
76%
China
71%
Mexico
Germany
Argentina
Russia
49%
47%
Canada
Belgium
UK
67%
55%
Beer Share of Total Alcohol
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US
53%
45%
42%
37%
Source: Global Segmentation Study
13
Building deeper digital connections with
our consumers
US - Consumer time spent per day (hrs)
:32
1:26
• US Millennials over
index on digital usage
5:16
4:31
Digital
TV
Radio
• Hispanic audiences
also over index on
digital - particularly
mobile
Print
Source: emarketer August 2013
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14
Meeting consumers where they are …
We must engage
consumers across
all touch points
before, during and
after purchase.
© AB InBev 2014 – All rights reserved
Our brands
have more
than 100M
social media
followers
15
Creating multi-channel content
Local content
Creative
partnerships
User
generated
content
Agency ideas
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Always-on
Targeted
Multi-channel
Big idea
campaigns
16
Leveraging key properties and sponsorship assets
Mexican National team
Basketball
Harbin Ice Festival
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Salvador Carnival
17
Agenda
1
AB InBev Business Model
2
Focus Brands Strategy
3
Commercial Priorities
4
Case Studies
© AB InBev 2014 – All rights reserved
18
Case studies
Bud Light Super Bowl
Budweiser Super Bowl
2014 Chinese New Year
2014 FIFA World Cup
World’s Greatest Events
Corona SunSets
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19
Super Bowl: Bud Light activation
Launch of new campaign
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20
Whatever USA: New summer campaign
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21
Super Bowl: Budweiser activation
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22
Budweiser’s Puppy Love sets records
1
#
 Most popular ad according to USA Today Ad Meter
 Most viral Super Bowl ad ever
 Most popular video globally for 36 hours
 Most liked Facebook post of all time for a brand,
with over 1 million Likes
 Over 60 million views on YouTube and counting
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23
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24
Super Bowl 2014 take-aways
• Build anticipation
and excitement
• Start conversations
and keep them going
• Real stories,
real people
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25
Chinese New Year
2014 - Year of the Horse
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26
Amplification of Chinese New Year activation
• Beijing Welcome Ceremony
(Great Wall of China)
• 5-city Clydesdale Roadshow
• 115,000 brand themed dinners
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27
2014 FIFA World Cup in Brazil
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28
Global FIFA World Cup activations underway
The 2014 tournament
is being held in one of our
top markets – Brazil
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Portfolio strategy for World Cup
29
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Belgium
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31
Mexico
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32
Global Budweiser sponsorship of FIFA World Cup
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33
Budweiser and Brahma –
Bringing the tournament to life
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34
Budweiser Hotel – Centerpiece of RISE AS ONE
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35
Stella Artois – Delivering sophistication & appeal
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36
Official Partner of the Cannes Film Festival
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2014 Draught Master
Champion
37
Stella Artois Cidre – Opportunity to gain
Share of Throat
Stella Artois
Cidre
Launched
in 2011
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Pear
launched
in 2012
Raspberry
launched
in 2014
38
Corona – Latest addition to our global
brand portfolio
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39
Corona SunSets Festivals – Celebrating the
World’s beaches
IBIZA
AUGUST 29
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ACAPULCO
AUGUST 2
40
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41