Achieving More Together
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AB InBev 2016 Annual Report AB InBev 2016 We are AB InBev One Dream. One Team. AB-InBev.com AnnualReport.AB-InBev.com Achieving more together Anheuser-Busch InBev 2016 Annual Report WorldReginfo - 10b2aef4-f45d-436a-89fb-0685bb65e973 AB InBev 2016 Annual Report AB InBev 2016 We are AB InBev One Dream. One Team. AB-InBev.com AnnualReport.AB-InBev.com Achieving more together Anheuser-Busch InBev 2016 Annual Report WorldReginfo - 10b2aef4-f45d-436a-89fb-0685bb65e973 Anheuser-Busch InBev Annual Report 01 Our manifesto We are a company of owners. We believe that you get out what you put in. We strive to be the best. Pursuing our Dream, Committed to improving lives for more people in more communities. For centuries, we’ve been bringing people together, Through sports, through music and through culture. Creating moments both everyday and extraordinary. Seizing every occasion to serve up more of what people thirst for. For this reason, we pour ourselves into our work. From farm to brewery to market, Taking pride and ownership in every step. Crafting great beer from the best natural ingredients. Paving the road for a better tomorrow that we’re proud to be a part of. And celebrating the great times that bring us together. We are Anheuser-Busch InBev Bringing people together for a better world. Contents 01 Our manifesto 02 To our shareholders 06 More choices for more consumers around the world 08 We are brand builders 20 We are owners 24 We are brewers 28 Building a better world 33 Financial report 151 Corporate governance statement AnnualReport.AB-InBev.com Open the foldout for an overview of our financial performance. WorldReginfo - 10b2aef4-f45d-436a-89fb-0685bb65e973 Anheuser-Busch InBev (Euronext: ABI; NYSE: BUD; Our diverse portfolio of over 500 brands includes global 2016 revenue: MEXBOL: ABI; JSE: ANB) is the leading global brewer brands Budweiser®, Corona® and Stella Artois®; multi- We have over and one of the world’s top five consumer products country brands Beck’s®, Castle®, Castle Lite®, Hoegaarden® 500 beer brands 45 517 million USD companies. We are geographically diversified, with a and Leffe®; and local champions such as Aguila®, Bringing people 2016 normalized EBITDA: balanced exposure to developed and developing markets. Antarctica®, Bud Light®, Brahma®, Cass®, Chernigivske®, We draw on the collective strength of approximately Cristal®, Harbin®, Jupiler®, Klinskoye®, Michelob Ultra®, We sell our beers 16 753 million USD 200 000 colleagues in more than 50 countries worldwide. Modelo Especial®, Quilmes®, Victoria®, Victoria Bitter ®, Sedrin®, Sibirskaya Korona® and Skol®. in more than 2016 beer volumes: together for We are committed to building great brands that stand the test of time, and to brewing the best beers using the We are building a company to last. Not just for a decade. But 150 countries 433.9 million hl finest natural ingredients. Our brewing heritage dates for the next 100 years. We are committed to helping farmers, Revenues of our three global brands grew by: back more than 600 years, spanning continents and retailers, entrepreneurs and communities thrive. Through a better world generations. From our European roots at the Den Hoorn our brands — and our investment in communities — we will Our brewing heritage 6.5% in 2016 brewery in Leuven, Belgium. To the pioneering spirit make our company an essential part of our consumers’ of the Anheuser & Co brewery in St. Louis, U.S. lives for generations to come and achieve our Dream of dates back more than #1 most valuable beer brand in the world: To the creation of the Castle Brewery in South Africa. bringing people together for a better world. 600 years To Bohemia, the first brewery in Brazil. Budweiser To facilitate the understanding of AB InBev’s underlying performance, the analyses of growth, including all comments in the commercial part of this 2016 normalized EBITDA contribution by region* Normalized Annual Report, unless otherwise indicated, are based on organic growth and normalized numbers. EBITDA (million USD) Figures in million USD 2012 2012 2013 2013 2014 2015 2015 2016 unless stated otherwise reported(1) reference reported reference reported reference reported 2016 reported base(2) base(3) base(4) 16 753 Volumes (million hls) 403 431 425 446 459 457 502 500 2015 reference base 18 145 Revenue 39 758 42 927 43 195 45 483 47 063 43 604 46 928 45 517 36.3% 10.3% 2015 reported North EMEA 9.5% 16 839 Normalized EBITDA 15 525 16 480 17 188 17 943 18 542 16 839 16 839 16 753 America Asia 2014 reported EBITDA 15 493 16 590 23 428 – 18 465 17 057 – 16 360 Pacific 18 542 13.8% Normalized profit from operations 12 779 13 537 14 203 14 800 15 308 13 768 13 768 13 276 Latin 2013 reference base America 17 943 Normalized profit attributable to equity 7 201 7 271 7 936 – 8 865 8 513 – 4 853 West holders of Anheuser-Busch InBev 2013 reported 21.8% 17 188 Profit attributable to equity holders 7 160 7 374 14 394 – 9 216 8 273 – 1 241 of Anheuser-Busch InBev Latin 2012 reference base America 8.3% North 16 480 Net financial debt 30 114 – 38 800 – 42 135 42 185 – 107 953 Latin 2012 reported Cash flow from operating activities 13 268 – 13 864 – 14 144 14 121 – 10 110 America 15 525 South Normalized earnings per share (USD) 4.50 – 4.91 – 5.43 5.20 – 2.83 * Excludes Global Export and Holding Companies Dividend per share (USD) 2.24 – 2.83 – 3.52 3.95 – 3.85 2016 volume contribution by region Revenue Dividend per share (euro) 1.70 – 2.05 – 3.00 3.60 – 3.60 (million USD) Payout ratio % 49.8 – 57.6 – 64.8 76 – 136 2016 reported 45 517 Weighted average number of ordinary 1 600 – 1 617 – 1 634 1 638 – 1 717 2015 reference base and restricted shares (million shares) 46 928 Share price high (euro) 71.1 – 79.6 – 94.89 124.20 – 119.6 15.1% 23.4% 2015 reported Share price low (euro) 46.1 – 63.44 – 69.14 87.73 – 92.13 North EMEA 18.4% 43 604 America Asia 2014 reported Year-end share price (euro) 65.7 – 77.26 – 93.86 114.40 – 100.55 Pacific 47 063 12.7% Market capitalization (million USD) 105 209 – 172 291 – 183 167 200 302 – 213 993 Latin 2013 reference base America 45 483 Market capitalization (million euro) 138 716 – 124 930 – 150 867 183 983 – 203 010 West 2013 reported 23.6% 43 195 1. 2012 as Reported, adjusted to reflect the effects of retrospective application on the revised IAS 19 Employee Benefits (see Note 3 Summary of significant accounting policies). 2. Gi ven the transformational nature of the transaction with Grupo Modelo, and to facilitate the understanding of AB InBev’s underlying performance, AB InBev has updated its 2012 segment reporting for purposes of our Latin 2012 reference base results announcement and internal review by senior management. This presentation (referred to as the “2012 Reference Base”) includes, for comparative purposes, the results of Grupo Modelo as if the combination had America 42 927 taken place on 4 June 2012. Following the combination, the Grupo Modelo operations are reported according to their geographical presence in the following segments: the Mexico beer and packaging businesses are 6.4% North reported in the new Zone Mexico, the Spanish business is reported in the Zone Western Europe and the Export business is reported in the Global Export and Holding Companies segment. 0.4% 3. Th e 2013 Reference Base includes 12 months of Grupo Modelo operations to facilitate the understanding of AB InBev’s underlying business. The 2013 reference base further reflects the combination of Western Europe Latin 2012 reported and Central & Eastern Europe into a single Europe Zone, and a number of intra-Zone management reporting changes which took effect on 1 January 2014. America Global Export 39 758 4. Gi ven the transformational nature of the combination with SABMiller, we have updated our 2015 and 2016 segment reporting for purposes of results announcements and internal review by senior management. This South and Holding presentation (referred to as the “2015 Reference Base”) includes, for comparative purposes, the results of SABMiller as if the combination had taken place at the beginning of the fourth quarter 2015. For external reporting Companies purposes, AB InBev will continue to present its results under the existing six regions. However, with effect from the fourth quarter of 2016, these regions will also include the former SABMiller geographies. Colombia, Peru, Ecuador, Honduras and El Salvador will be reported together with Mexico as Latin America West, Panama will be reported within Latin America North, Africa will be reported together with Europe as EMEA, and Australia, India and Vietnam will be reported within APAC. WorldReginfo - 10b2aef4-f45d-436a-89fb-0685bb65e973 Anheuser-Busch InBev (Euronext: ABI; NYSE: BUD; Our diverse portfolio of over 500 brands includes global 2016 revenue: MEXBOL: ABI; JSE: ANB) is the leading global brewer brands Budweiser®, Corona® and Stella Artois®; multi- We have over and one of the world’s top five consumer products country brands Beck’s®, Castle®, Castle Lite®, Hoegaarden® 500 beer brands 45 517 million USD companies. We are geographically diversified, with a and Leffe®; and local champions such as Aguila®, Bringing people 2016 normalized EBITDA: balanced exposure to developed and developing markets. Antarctica®, Bud Light®, Brahma®, Cass®, Chernigivske®, We draw on the collective strength of approximately Cristal®, Harbin®, Jupiler®, Klinskoye®, Michelob Ultra®, We sell our beers 16 753 million USD 200 000 colleagues in more than 50 countries worldwide.