Full year and
fourth quarter
2020 results
25 FEBRUARY 2021
Legal disclaimer
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 state- ments. Factors that
could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others: (i) the effects of the COVID-19 pandemic and uncertainties about its impact and duration; (ii) 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; (iii) financial risks, such as interest rate risk,foreign exchange rate risk (in particular as against the U.S. dollar, the Company’s reporting currency), commodity risk, asset price risk, equity market
risk, counterparty risk, sovereign risk, liquidity risk, inflation or deflation, including inability to achieve the Company’s optimal net debt level; (iv) continued geopolitical instability, which may result in, among other things, economic
and political sanctions and currency exchange rate volatility, and which may have a substantial impact on the economies of one or more of the Company’s key markets; (v) changes in government policies and currency controls;
(vi) 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; (vii) the monetary
and interest rate policies of central banks; (viii) changes in applicable laws, regulations and taxes in jurisdictions in which the Company operates; (ix) limitations on the Company’s ability to contain costs and expenses; (x) the
Company’s expectations with respect to expansion plans, premium growth, accretion to reported earnings, working capital improvements and investment income or cash flow projections; (xi) the Company’s ability to continue to
introduce competitive new products and services on a timely, cost-effective basis; (xii) the effects of competition and consolidation in the markets in which the Company operates; (xiii) changes in consumer spending; (xiv)
changes in pricing environments; (xv) volatility in the prices of raw materials, commodities and energy; (xvi) difficulties in maintaining relationships with employees; (xvii) regional or general changes in asset valuations; (xviii)
greater than expected costs (including taxes) and expenses; (xvix) the risk of unexpected consequences resulting from acquisitions, joint ventures, strategic alliances, corporate reorganizations or divestiture plans, and the
Company’s ability to successfully and cost-effectively implement these transactions and integrate the operations of businesses or other assets it has acquired; (xx) the outcome of pending and future litigation, investigations and
governmental proceedings; (xxi) natural or other disasters, including widespread health emergencies, cyberattacks, military conflicts and political instability; (xxii) any inability to economically hedge certain risks; (xxiii) an
inability to complete any strategic options with respect to the Company’s Asian Pacific businesses;
(xxiv) inadequate impairment provisions and loss reserves; (xxv) technological changes and threats to cybersecurity; and (xxvi) the Company’s success in managing the risks involved in the foregoing. Many of these risks and
uncertainties are, and will be, exacerbated by the COVID-19 pandemic and any worsening of the global business and economic environment as a result. All subsequent written and oral forward-looking statements 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.
The Company’s statements regarding financial risks 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 2021 – All rights reserved | 2
Bringing people together
for a better world
© AB InBev 2021 – All rights reserved | 3
Successfully navigating a complex environment with a customer and
consumer-centric approach, supported by our long-term fundamental strengths
Clear commercial strategy Best-in-class brand portfolio Digitizing customer and
enhanced by innovation consumer relationships
3.
Close gap
2. Growth 4.
Toolkits champions Plan
1.
Bench-
marking
Category Expansion Growth Champions
Framework
Market Maturity Model
Diverse geographic footprint Industry-leading profitability Culture of ownership & long-term mindset
37%
2020 EBITDA margin
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Responding with resilience
Leading the way in supporting the fight against
the COVID-19 pandemic and doing our part for
the economic recovery
• Donating millions of units of hand sanitizer in >20
countries
• Donated emergency drinking water in >10 countries
• Mobilized fleets of trucks to deliver essential
supplies in Colombia, Peru, Ecuador
• Helped build hospitals and a vaccine factory
• Fulfilled commitments to purchase crops to support
local farmers
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Agenda
4Q20 & FY20 results
Commercial strategy: year in review
Better World
Financials
Q&A
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4Q20 & FY20
results
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4Q20 & FY20 RESULTS
4Q20 financial summary
Total volumes +1.6%
Own beer +1.8 % and Non-beer +1.7 %
Total revenue +4.5 %
Revenue per hl +2.7 %
EBITDA -2.4%
EBITDA margin contracted by 261 bps to 39.7 %
Normalized EPS increased from $0.48 to $1.08
Underlying EPS decreased from $0.87 to $0.81
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4Q20 & FY20 RESULTS
FY20 financial summary
1.8%
Total volumes -5.7% Volume
Own beer -5.8% and non-beer -3.8%
-13.4%
Total revenue -3.7% 1H20 2H20
Revenue per hl +2.1%
4.4%
Revenue
EBITDA -12.9%
EBITDA margin contracted by 382 bps to 36.9% -12.0%
Normalized EPS decreased from $4.08 to $1.91 1H20 2H20
Underlying EPS decreased from $3.63 to $2.51
EBITDA -1.1%
Net debt to EBITDA ratio of 4.8x at 31 December 2020
Proposed FY20 dividend of €0.50 per share -24.7%
1H20 2H20
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4Q20 & FY20 RESULTS
FY20 key market takeaways
US Europe
Top-line growth and consistent market share trend Market share gains across most markets, though
improvement driven by successful execution of performance impacted by ongoing COVID-19-related
commercial strategy restrictions
Mexico South Africa
Industry outperformance enhanced by strong top and Multiple alcohol bans impacted performance, though
bottom-line growth in the second half of the year underlying consumer demand remains strong
Colombia China
Strong finish to the year with momentum across our Continued success of our premiumization strategy
portfolio, though FY20 results heavily impacted by enhanced by leadership in the growing e-commerce
restrictions channel
Brazil
Strong top-line performance this year driven by a
successful commercial strategy and operational
excellence
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4Q20 & FY20 RESULTS
Global brand portfolio
Global brands returned to growth in 2H20 with total revenue +4.2% and revenue outside of home markets +4.7%
+5.8% +6.4% +1.2%
2H20 revenue 2H20 revenue 2H20 revenue
outside the US outside Belgium outside Mexico
Growth in 2H20 led by Double-digit growth in 2H20 Growth delivered in the
China, Brazil and the UK in Brazil, the UK and Argentina majority of our markets in 2H20
FY20 revenue -7.5% outside the US FY20 revenue +0.6% outside Belgium FY20 revenue -5.1% outside Mexico
© AB InBev 2021 – All rights reserved | 11
Commercial
strategy:
year in review
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COMMERCIAL STRATEGY: YEAR IN REVIEW
As markets mature, consumer needs & occasions evolve, leading to a
fragmentation of choices and requiring a portfolio approach
Early Maturity Mid Maturity Late Maturity
Category development
“Accept” “Formalize” “Socialize” “Routinize” “Sophisticate”
objectives:
35
# of brands to reach 80%
3 8
beer volume1
Early Maturity Mid Maturity Late Maturity
21
# of brands in consumer
9 16
consideration set2
1 Nielsen/IRI Retail Audit – FY2020 Early Maturity Mid Maturity Late Maturity
2 Kantar Brand Guidance – Q4 2020
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COMMERCIAL STRATEGY: YEAR IN REVIEW
Building a superior portfolio with the category expansion framework
Premiumization
We are the largest premium brewer
in the world, gaining market share
for 3 years in a row
Adjacencies Wheat & Lager Other beer Adjacencies
Seltzer, RTD, Flavored Beer Styles Mixed Spirits
Cider, Wine Classic Lager Neat Spirits
Easy Drinking
Total adjacencies grew Hoegaarden leads In the US, Michelob Ultra Brahma Duplo Malte is the clear Largest craft & Total adjacencies
strong double-digits in growth of wheat beer in grew >20%3 leader of core plus in Brazil4 specialty portfolio in represent >$1B
FY20, led by seltzers Asia, growing to >1mhl the world in revenue in FY20
Smart Affordability
Local crop beers expanding the
category in markets such as
Brazil, Peru, Ecuador and
Uganda
1 Plato Logic 2 BrandZ 3 IRI 4 Internal estimates
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COMMERCIAL STRATEGY: DIGITAL COMMERCE
Scaling digital commerce to create value for customers & consumers
Digitizing customer Investments in direct-to-consumer Finding new ways for our brands
relationships e-commerce platforms paying off to connect with consumers
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COMMERCIAL STRATEGY: DIGITAL COMMERCE (B2B)
BEES combines our global reach and footprint with Our global
reach &
Our digital
capabilities
digital capabilities footprint & connectivity
Algorithmic segmentation / selling Digital communications Digital logistics
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COMMERCIAL STRATEGY: DIGITAL COMMERCE (B2B)
The results are powerful
Elevating our customer
Revenue rapidly accelerating Increase in user adoption and
relationships with strong
throughout the year usage across our footprint
positive feedback
2020 GMV1 Monthly active Platform is NPS score:
captured through BEES users live in digital vs non-digital customers
>$3B ~900 9 +18
thousand countries points
1 Gross merchandise value
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COMMERCIAL STRATEGY: DIGITAL COMMERCE (DTC)
Leading the way in e-commerce beer sales
Our 20+ proprietary DTC e-commerce ventures offer Zé Delivery now present in all Brazilian states, and we
convenience and provide valuable data launched the courier model in 7 additional markets
9.5x growth in orders (vs FY19) >27M
total orders in 2020
Our strategic partnerships with global In Europe, our owned beer e-stores grew
e-retailers allow us to lead e-commerce growth ahead of the market
#1 online supplier in China growing
ahead of the overall category
2.5x
# of PerfectDraft
customers (vs FY19)
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COMMERCIAL STRATEGY: DIGITAL COMMERCE (DTC)
Our in-house marketing agency, draftLine® , is finding
innovative ways for our brands to connect with
consumers at home
Our “Lives” concert series
in Brazil delivered over
350 concerts and
678 million views in only
12 weeks
activated by
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Better World
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BETTER WORLD
We are committed to meaningfully reducing the harmful consumption of alcohol
Our global voluntary labeling initiative, the largest in the world1, We developed a methodology based on data management
aims to place a Smart Drinking guidance label on beer products in routines to improve road safety, now available to any local
all markets without substantive alcohol labeling legislation government worldwide
UGANDA EUROPE
81%
of our beer volume2
is already labeled,
and we plan to reach
100% this year App-based toolkit
1Among all beer, wine and spirits companies
2Across the 28 markets in scope
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BETTER WORLD
2025 Sustainability Goals
Smart Agriculture Water Stewardship Circular Packaging Climate Action
100% of our electricity will come
100% of our direct farmers 100% of our communities in high 100% of our products will be in
from renewable sources & 25%
will be skilled, connected stress areas will have measurably packaging that is returnable or
carbon emissions will be reduced
and financially empowered improved water availability & quality made from majority recycled content
across our value chain
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BETTER WORLD
2025 Sustainability Goals
We work with more than 20 000 farmers in 13 countries. 78% of our sites located in high water stress areas
To date, 76% of our direct farmers are skilled, 57% are have started implementing solutions to improve water
connected and 60% are financially empowered availability and quality in local watersheds
Smart Water
Agriculture Stewardship
We were included in Fortune’s Change the World list for the 2nd year We retained our place in CDP’s Water A List and achieved an
for our work with farmers & development of agricultural technology industry-leading water use efficiency ratio of 2.7 hl of water per hl of beer
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BETTER WORLD
2025 Sustainability Goals
More than 74% of our volume is in majority recycled content To date, we have decarbonized over 10% from 2017 baseline
or returnable packaging as we champion a circular economy and have contracted 70% of our renewable electricity volume
Circular Climate
Packaging Action
We are working with startups, such as BanQu in Colombia, to In 2020 we improved to CDP’s Climate A List and have continued to
promote returnable packaging and support collectors innovate through pilot initiatives, such as the low-carbon can
© AB InBev 2021 – All rights reserved | 24
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BETTER WORLD
Collaborating with innovators to achieve
our sustainability goals
Our 100+ Accelerator has worked
with 36 startups in 16 countries
since launching in 2018
In 2020, we launched our second cohort and
concluded the pilots with a virtual demo day
that drew close to 400 participants across
the globe
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BETTER WORLD
Successfully signed a new 10.1 billion USD
sustainable-linked revolving credit facility
• Replaces our current 9 billion USD RCF, supported by
26 world-leading banks, with an initial 5-year term
• Pricing mechanism incentivizing four key performance
metrics, aligned with our 2025 Sustainability Goals:
Further improving water efficiency in
our breweries
Increasing PET recycled content in PET
primary packaging
Sourcing purchased electricity from
renewable sources
Reducing GHG emissions
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Financials
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FINANCIALS
Underlying EPS decreased from $3.63 in FY19 to $2.51 in FY20
3.63
+$0.16 impact from
FY20 Brazil tax credits
-1.93 2.51
0.17
0.36
0.27
0.02
FY19 Normalized EBIT Hyperinflation Net finance cost Income tax expense Associates & FY20
impacts in non-controlling
normalized EBIT interest
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FINANCIALS
We undertook a series of liability management initiatives to further de-risk
our balance sheet
Proactively managing our debt Evaluating opportunities to drive Enhancing our strong liquidity
portfolio, further reducing risk long-term growth and value creation position as we navigate uncertainty
~18 billion USD ~3 billion USD >24 billion USD
redemptions of in proceeds from the sale of of total liquidity as
near-term maturities a minority stake in US metal of FY20
container operations
Extending weighted average Deployed to redeem debt Including ~15.3 billion USD
maturity of bond portfolio and further reduce cash and 9 billion USD RCF.
from ~14 to >16 years short-term maturities Cash sufficient to cover bond
maturities through 2026
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FINANCIALS
Bond maturity profile
Well-distributed due to our proactive liability management
14000
12000
Since 31 December 2020,
we successfully redeemed
~ 3.3 billion USD of
10000
short-term debt
8000
6000
4000
2000
Remaining debt Debt redeemed since 31 December 2020
Note: Represents full bond portfolio, after hedging, valuing all bonds at par as of 31 December 2020, pro forma for the January 2021 bond redemptions and the February 2021 bond maturity
© AB InBev 2021 – All rights reserved | 30
FINANCIALS
Our bond portfolio is largely protected against interest rate volatility,
with long-weighted average maturity and no financial covenants
Addressed upcoming
96% of our bond Diverse currency mix Very manageable
maturities to eliminate near-term
portfolio is fixed rate reduces risk pre-tax coupon
refinancing pressure
Floating
rate 5% CAD 2% Other
4% GBP
4%
33%
>16 yrs ~4.0%
EUR weighted average pre-tax coupon
maturity
56%
96% USD
Fixed rate
Note: Represents full bond portfolio, after hedging, valuing all bonds at par as of 31 December 2020, pro forma for the January 2021 bond redemptions and the February 2021 bond maturity
© AB InBev 2021 – All rights reserved | 31
FINANCIALS
Capital allocation priorities
Our optimal capital structure calls for a Net Debt/EBITDA ratio of approximately 2x
1 Organic growth
Investing in the organic growth of our business
Deleveraging
2 Deleveraging to around the 2x level remains our commitment
Selective M&A
3 Non-organic, external growth is a core competency and we will continue to consider suitable opportunities
when and if they arise, subject to our strict financial discipline and deleveraging commitments
4 Return of cash to shareholders
Returning excess cash to our shareholders in the form of dividends and/or share buybacks
© AB InBev 2021 – All rights reserved | 32
Q&A
© AB InBev 2021 – All rights reserved | 33
Thank
you
