Wrap Text
Anheuser-Busch InBev reports Third Quarter and Nine Months 2016 Results
Anheuser-Busch InBev SA/NV
(Incorporated in the Kingdom of Belgium)
Register of Companies Number: 0417.497.106
Euronext Brussels Share Code: ABI
Mexican Stock Exchange Share Code: ANB
NYSE ADS Code: BUD
JSE Share Code: ANH
ISIN: BE0974293251
(“AB InBev”)
Anheuser-Busch InBev reports Third Quarter and
Nine Months 2016 Results
The enclosed information constitutes regulated information as defined in the Belgian Royal Decree of 14 November 2007 regarding the duties of
issuers of financial instruments which have been admitted for trading on a regulated market.
Except where otherwise stated, the comments below are based on organic figures and refer to 3Q16 and 9M16 versus the same period of last year.
For important notes and disclaimers please refer to page 18.
HIGHLIGHTS
- Revenue: Revenue grew by 2.8% in 3Q16, and by 3.3% in 9M16. Revenue per hl grew by 3.8% in
the quarter, with the benefits of our revenue management and premiumization initiatives being partly
offset by results in Brazil. On a constant geographic basis, revenue per hl grew by 3.7% in 3Q16.
Revenue per hl grew by 4.8% in 9M16 and by 4.4% on a constant geographic basis
- Volume: Total volumes declined by 0.9% in 3Q16, with our own beer volumes down by 0.2%. The
decline in own beer volumes was due mainly to a decline of 4.1% in Brazil, as a result of a weak
industry and tough 3Q15 comparable, partly offset by good volume growth in Mexico. In 9M16, total
volumes declined by 1.4%, with own beer volumes down by 0.7%
- Global Brands: Combined revenues of our three global brands, Corona, Stella Artois and Budweiser,
grew by 8.7% in the quarter. This result was led by Corona with growth of 14.8%, while Stella Artois
grew by 12.2%. Budweiser was up 4.8% in the quarter. In 9M16 the combined revenues of our global
brands increased by 7.8%
- Cost of Sales (CoS): CoS increased by 3.9% in 3Q16 and by 4.9% on a per hl basis, driven by
unfavorable foreign exchange transactional hedges in Brazil, partly offset by good results in the US.
On a constant geographic basis, CoS per hl increased by 5.3% in 3Q16. In 9M16 CoS grew by 2.2%
and by 3.7% on a per hl basis. On a constant geographic basis, CoS per hl increased by 3.3% in
9M16
- EBITDA declined by 2.0% in 3Q16 to 4 032 million USD, driven by a very weak result in Brazil.
EBITDA margin decreased by 178 bps to 36.3% in 3Q16. In 9M16, EBITDA grew by 1.5%, with
EBITDA margin decreasing by 65 bps to 36.7%
- Net finance results: Net finance costs (excluding non-recurring net finance costs) were 1 226 million
USD in 3Q16 compared to 810 million USD in 3Q15. This increase was driven primarily by the
additional net interest expenses resulting from the bond issuances in 1Q16, related to the pre-funding
of the SABMiller combination. Net finance costs were 3 171 million USD in 9M16 compared to
1 273 million USD in 9M15
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- Income taxes: Income tax in 3Q16 was 225 million USD with a normalized effective tax rate (ETR) of
11.7%, compared to an income tax expense of 795 million USD in 3Q15 and a normalized ETR of
26.8%. Normalized ETR in 3Q16 was positively impacted by the reporting of previously unrecognized
deferred tax assets on carried forward losses, and a reversal of deferred tax liabilities following a
change in tax law in Argentina. Normalized ETR was 18.2% in 9M16 compared to 20.5% in 9M15
- Profit: Normalized profit attributable to equity holders of AB InBev was 1 363 million USD in 3Q16
compared to 1 673 million USD in 3Q15, driven by the organic decline in EBITDA, higher net finance
results and unfavorable currency translation, partly offset by lower income taxes. Normalized profit
attributable to equity holders of AB InBev was 3 934 million USD in 9M16, compared to 5 952 million
USD in 9M15
- Earnings per share: Normalized earnings per share (EPS) decreased to 0.83 USD in 3Q16 from
1.02 USD in 3Q15, and decreased to 2.40 USD in 9M16 from 3.63 USD in 9M15
- Interim Dividend: The AB InBev board has approved an interim dividend of 1.60 EUR per share for
the fiscal year 2016. Details of ex-coupon, record and payment dates are shown on page 15
- Combination with SABMiller: On 10 October we announced the successful completion of the
combination with SABMiller. We extend a warm welcome to our new colleagues and look forward to
working with them to ensure a smooth integration
Figure 1. Consolidated performance (million USD)
3Q15 3Q16 Organic
growth
Total Volumes (thousand hls) 121 731 121 027 -0.9%
AB InBev own beer 110 927 111 070 -0.2%
Non-beer volumes 9 961 9 158 -8.1%
Third party products 842 798 -16.5%
Revenue 11 376 11 109 2.8%
Gross profit 6 932 6 716 2.1%
Gross margin 60.9% 60.5% -43 bps
Normalized EBITDA 4 403 4 032 -2.0%
Normalized EBITDA margin 38.7% 36.3% -178 bps
Normalized EBIT 3 634 3 214 -5.0%
Normalized EBIT margin 31.9% 28.9% -239 bps
Profit attributable to equity holders of AB InBev 1 375 557
Normalized profit attributable to equity holders of AB InBev 1 673 1 363
Earnings per share (USD) 0.84 0.34
Normalized earnings per share (USD) 1.02 0.83
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9M15 9M16 Organic
growth
Total Volumes (thousand hls) 345 893 340 803 -1.4%
AB InBev own beer 311 425 309 950 -0.7%
Non-beer volumes 31 956 28 461 -7.8%
Third party products 2 512 2 392 -10.7%
Revenue 32 881 31 315 3.3%
Gross profit 19 775 18 920 4.0%
Gross margin 60.1% 60.4% 43 bps
Normalized EBITDA 12 526 11 505 1.5%
Normalized EBITDA margin 38.1% 36.7% -65 bps
Normalized EBIT 10 229 9 129 -1.0%
Normalized EBIT margin 31.1% 29.2% -129 bps
Profit attributable to equity holders of AB InBev 5 985 842
Normalized profit attributable to equity holders of AB InBev 5 952 3 934
Earnings per share (USD) 3.65 0.51
Normalized earnings per share (USD) 3.63 2.40
Figure 2. Volumes (thousand hls)
3Q15 Scope Organic 3Q16 Organic growth
growth Total Own beer
Volume volume
North America 32 419 280 -787 31 912 -2.4% -2.4%
Mexico 10 684 - 1 024 11 708 9.6% 9.6%
Latin America - North 29 405 288 -1 342 28 352 -4.5% -3.5%
Latin America - South 7 825 12 - 132 7 705 -1.7% 1.5%
Europe 12 028 -56 -387 11 586 -3.2% -2.6%
Asia Pacific 27 420 95 321 27 836 1.2% 1.5%
Global Export and Holding Companies 1 949 -188 166 1 927 9.4% 9.4%
AB InBev Worldwide 121 731 431 -1 135 121 027 -0.9% -0.2%
9M15 Scope Organic 9M16 Organic growth
growth Total Own beer
Volume volume
North America 90 834 485 - 968 90 351 -1.1% -1.1%
Mexico 30 675 - 2 995 33 670 9.8% 9.7%
Latin America - North 88 165 875 -4 916 84 124 -5.5% -5.7%
Latin America - South 25 682 -1 048 -1 710 22 924 -6.9% -3.3%
Europe 32 686 -221 - 336 32 129 -1.0% -0.4%
Asia Pacific 72 706 398 - 209 72 894 -0.3% -0.1%
Global Export and Holding Companies 5 146 -632 198 4 711 4.4% 4.4%
AB InBev Worldwide 345 893 -144 -4 946 340 803 -1.4% -0.7%
MANAGEMENT COMMENTS
Most of our markets delivered solid volume, revenue and EBITDA results in 3Q16. However, these results
were negatively affected by a very weak quarter in Brazil, driven by the challenging consumer
environment, a tough 3Q15 volume comparable, and the impact of unfavorable foreign exchange
transactional hedges on cost of sales. Organic growth results, with and without Brazil, were as follows:
3Q16 Total 3Q16 AB InBev 9M16 Total 9M16 AB InBev
AB InBev (excl. Brazil) AB InBev (excl. Brazil)
Own Beer Volumes -0.2% +0.7% -0.7% +0.6%
Net Revenue +2.8% +4.7% +3.3% +4.7%
EBITDA -2.0% +6.6% +1.5% +6.3%
Our three global brands, Corona, Stella Artois and Budweiser, continue to deliver strong growth, with
revenues up 8.7% in the quarter, and 7.8% year to date.
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Looking at our top four markets in more detail:
(i) US: Industry selling day adjusted sales-to-retailers (STRs) were down 2.6% in the quarter,
based on our estimates, due to the timing of the July 4th holiday and a slowdown in the craft
segment. Our own STRs were down 3.8%. Michelob ULTRA and our Above Premium brands
continue to perform well with STRs up low single digits, while Bud Light remains under pressure
with STRs down mid single digits. Sales-to-wholesalers (STWs) were down 2.5% in the quarter.
Net revenue was marginally down in the quarter, with solid net revenue per hl growth of 2.3%
helping to offset the decline in volume. EBITDA grew by 0.9% in the quarter, with margin
expansion of 48 bps.
(ii) Mexico: Mexico continues to deliver strong results. Our own volumes grew by 9.6%, driven by a
favorable consumer environment and our own commercial initiatives which are driving new
consumption occasions. Net revenue grew by 12.0% with net revenue per hl growth of 2.2%.
EBITDA grew by 5.8%.
(iii) Brazil: Results in Brazil were very weak in 3Q16. Our beer volumes were down 4.1% in the
quarter driven by continued pressure on consumer disposable income. We also faced a tough
comparable with beer volume growth of 3.5% in 3Q15.
Net revenue declined by 6.8% in the quarter, with net revenue per hl down 1.2%. This was
driven primarily by our decision to implement our price adjustments in the fourth quarter this
year, compared to the third quarter last year. In addition, as part of our revenue management
strategy, we are using our complete portfolio of packs and brands to achieve attractive, more
competitive consumer price points. This initiative includes growing our mix of returnable glass
bottles (RGBs), especially in supermarkets where this format now accounts for 25% of our
volume. While RGBs have a negative impact on net revenue per hl, they are accretive for both
EBITDA and margin. We have not changed our revenue management strategy. Our strategy
continues to be to increase our prices in line with inflation, and pass on any tax increases over
time.
Although 2016 has been a very challenging year in Brazil, we remain optimistic about the future
for our business. We expect that favorable demographics, the closing of regional disparities in
per capita incomes, and consumer demand for innovative and premium products, will help to
drive long term growth.
(iv) China: Industry volumes in China were essentially flat in the quarter, based on our estimates.
However, our own volumes continue to perform ahead of the industry, growing by 1.6% in the
quarter, due to our focus on the faster growing core plus, premium and super premium
segments. Net revenue grew by 6.3%, with net revenue per hl growing by 4.6% as a result of
favorable brand mix. EBITDA grew by 25.3% in 3Q16 due to the growth in revenue and a good
cost of sales performance.
Combination with SABMiller
We are very pleased to have successfully completed our combination with SABMiller. The rationale is
extremely compelling. It brings together two great companies to create the first truly global brewer, and
one of the world’s leading consumer products companies. The combined company has a leadership
position in most of the world’s largest profit pools, and a rich portfolio including seven of the top ten most
valuable beer brands in the world.
The two geographic footprints are largely complementary and, more importantly, provide AB InBev with a
stronger presence in key emerging regions with attractive growth prospects, such as Africa and Latin
America, complementing the company’s existing strong presence in developed markets.
The combined company’s portfolio of global, multi-country and local brands will also provide more
opportunities for consumers everywhere to taste and enjoy the world’s best beers. We are excited about
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bringing together the talent, expertise and insights of the two companies to grow our brands and create
innovations which further enhance the experience for the consumer.
We extend a warm welcome to our new colleagues around the world and look forward to working with
them to ensure a smooth integration and exciting long term growth.
2016 OUTLOOK
Unless otherwise stated, the 2016 outlook refers to AB InBev on a standalone basis, and excludes the
impact of the combination with SABMiller.
Combined company Reference Base information for 4Q15, 1Q16, 2Q16 and 3Q16 will be released before
the end of the year.
(i) Top-line:
- Total AB InBev: We are amending our guidance for net revenue per hl. Our previous guidance
was for net revenue per hl to grow organically ahead of inflation, on a constant geographic
basis. Given the weak results in Brazil, we now expect growth in line with inflation
- In the US: We expect industry volumes in FY16 to be in line with the year to date trend. We
expect our own sales-to-wholesalers (STWs) and sales-to-retailers (STRs) to converge on a full
year basis. We expect further improvement in our net revenue per hectoliter performance,
supported by favorable brand mix
- In Mexico: We expect another year of solid growth in industry volumes, driven by a favorable
macro environment and our own commercial initiatives
- In Brazil: We no longer expect to achieve our goal of flat net revenue in Brazil for the full year,
given an environment of soft industry volumes and a tough 4Q15 net revenue per hl
comparable
- In China: We expect industry volumes to remain under pressure in FY16. We expect our own
volumes to perform better than the industry, driven by our premium and super premium brands.
(ii) Cost of Sales: We expect CoS per hl to grow by low single digits on a constant geographic basis,
driven by unfavorable foreign exchange transactional impacts, and growth in our premium brands
(iii) Distribution expenses: We are amending our guidance on distribution expenses per hl. Our
previous guidance was for distribution expenses per hl to grow by high single digits in FY16. We
now expect distribution expenses per hl to increase by mid-single to high single digits in the full
year
(iv) Sales and Marketing investments: We continue to invest behind our brands and global platforms
for the long term. We expect sales and marketing investments to grow by high single to low double
digits in FY16. In line with this guidance, we expect sales and marketing investments in 4Q16 to be
essentially flat to 4Q15
(v) Net Finance Costs: We expect the average rate of interest on net debt for the combined company
in 4Q16 to be in the range of 3.5% to 4.0%. Net pension interest expenses and accretion expenses
are expected to be approximately 30 and 120 million USD per quarter, respectively. Other financial
results will continue to be impacted by any gains and losses related to the hedging of our share-
based payment programs
(vi) Effective Tax Rate: We expect the normalized ETR in FY16 to be in the range of 22% to 24%. For
the avoidance of doubt, this guidance excludes the impact of the combination with SABMiller, but
includes the impact of the funding of the purchase price, for which no tax deduction is expected to
be reported. Normalized ETR guidance for the combined company for FY17 and future years, will
be provided when FY16 results are published
(vii) Net Capital Expenditure: We expect net capital expenditure of approximately 3.7 billion USD in
FY16
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(viii) Debt: Approximately one third of AB InBev’s gross debt is denominated in currencies other than the
US dollar, principally the Euro. Our optimal capital structure remains a net debt to EBITDA ratio of
around 2x. Deleveraging to around this level is a priority
(ix) Dividends: We continue to expect dividends to be a growing flow over time, although growth is
expected to be modest given the importance of deleveraging.
BUSINESS REVIEW
United States
Key performance indicators
Figure 3. United States (million USD)
3Q15 3Q16 Organic
growth
Total volumes (thousand hls) 29 668 28 979 -2.5%
Revenue 3 735 3 745 -0.3%
Normalized EBITDA 1 508 1 519 0.9%
Normalized EBITDA margin 40.4% 40.6% 48 bps
9M15 9M16 Organic
growth
Total volumes (thousand hls) 83 528 82 514 -1.1%
Revenue 10 591 10 650 0.7%
Normalized EBITDA 4 245 4 326 2.6%
Normalized EBITDA margin 40.1% 40.6% 76 bps
We estimate that selling day adjusted industry STRs in the United States were down 2.6% in 3Q16,
driven by the timing of the July 4th holiday and a slowdown in the craft segment. We estimate industry
STRs were down 0.8% in 9M16. Our own selling day adjusted STRs were down 3.8% in the quarter, due
to the soft industry and the slightly earlier timing of our price adjustments compared to 3Q15. Our STRs
were down 1.9% in 9M16. Our sales to wholesalers (STWs) were down 2.5% in 3Q16 and down 1.1% in
9M16. We continue to expect our STRs and STWs to converge on a full year basis.
We estimate our total market share, based on STRs, declined by approximately 55 bps in the quarter,
and by 45 bps in 9M16. The 9M16 market share result represents an improvement of approximately
20 bps over the FY15 trend.
Bud Light STRs declined by mid-single digits in the quarter with an estimated total market share decline
of approximately 65 bps in the quarter. We estimate market share is down approximately 50 bps year to
date. We continue to invest behind Bud Light and we are now transitioning from the Bud Light Party
campaign and will leverage our partnership with the NFL to help improve the brand’s volume and share
trends and close out the year with momentum going into 2017.
Our Budweiser marketing campaign, built around the brand’s quality and heritage credentials, continued
into 3Q16 and included the successful “America” packaging initiative, supported by additional media
investment. Budweiser STRs declined by mid-single digits in the quarter, impacted by industry weakness,
and by low single digits year to date. Estimated total market share for the brand was down approximately
20 bps in both 3Q16 and 9M16, in line with recent trends.
Our portfolio of Above Premium brands continues to perform very well. STRs were up low single digits in
the quarter and mid-single digits year to date, with a gain in total market share of approximately 45 bps in
3Q16 and 50 bps in 9M16, based on our estimates. Michelob ULTRA continues to lead the way with
volumes up high teens in 3Q16 and over 20% year to date. The brand has now gained more market
share than any other brand in the beer industry for the last six quarters. Stella Artois and Goose Island
volumes also continue to show good growth, up double digits in 9M16. Estrella Jalisco, an imported
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Mexican beer, launched in the first half of 2016, has performed very well, especially in the key market of
California.
US beer-only revenue per hl grew by 2.3% in the quarter, driven primarily by our revenue management
initiatives and positive brand mix, and by 1.8% in 9M16. US EBITDA increased by 0.9% to 1 519 million
USD in 3Q16, with a strong cost of sales result, driven by favorable commodity prices and brewery
efficiencies, offsetting a marginal decline in revenue. US EBITDA grew by 2.6% in 9M16 to 4 326 million
USD. EBITDA margin expanded by 48 bps to 40.6% in 3Q16 and by 76 bps to 40.6% in 9M16.
Mexico
Key performance indicators
Figure 4. Mexico (million USD)
3Q15 3Q16 Organic
growth
Total volumes (thousand hls) 10 684 11 708 9.6%
Revenue 993 955 12.0%
Normalized EBITDA 513 419 5.8%
Normalized EBITDA margin 51.7% 43.9% -263 bps
9M15 9M16 Organic
growth
Total volumes (thousand hls) 30 675 33 670 9.8%
Revenue 2 941 2 802 12.4%
Normalized EBITDA 1 499 1 291 7.4%
Normalized EBITDA margin 51.0% 46.1% -219 bps
Our business in Mexico continues to deliver strong results. Our own volumes grew by 9.6% in the quarter,
driven by a favorable consumer environment, and our own commercial initiatives. All of our major brands
delivered solid volume growth, with particularly strong performances from Bud Light and Victoria. Our
Focus brands are responding well to incremental sales and marketing investments, leading to the
creation of new occasions and incremental per capita consumption.
Revenue per hl grew by 2.2% in 3Q16, and by 2.4% in 9M16. Mexico EBITDA increased by 5.8% to
419 million USD in the quarter, driven by the strong top-line result, partly offset by incremental investment
behind our brands and unfavorable foreign exchange transactional hedges affecting cost of sales.
EBITDA margin declined by 263 bps to 43.9%. EBITDA increased by 7.4% in 9M16 to 1 291 million USD,
with EBITDA margin declining by 219 bps to 46.1%.
Brazil
Key performance indicators
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Figure 5. Brazil (million USD)
3Q15 3Q16 Organic
growth
Total volumes (thousand hls) 27 064 25 688 -5.1%
Beer volumes 20 371 19 538 -4.1%
Non-beer volumes 6 693 6 150 -8.1%
Revenue 1 861 1 713 -6.8%
Normalized EBITDA 935 647 -33.0%
Normalized EBITDA margin 50.2% 37.8% -1415 bps
9M15 9M16 Organic
growth
Total volumes (thousand hls) 81 677 76 618 -6.2%
Beer volumes 60 951 57 065 -6.4%
Non-beer volumes 20 726 19 553 -5.7%
Revenue 5 892 4 862 -3.1%
Normalized EBITDA 2 942 2 165 -13.6%
Normalized EBITDA margin 49.9% 44.5% -540 bps
Our 3Q16 results in Brazil were very weak due to a challenging consumer environment, a tough 3Q15
volume comparable, and the impact of unfavorable foreign exchange transactional hedges on cost of
sales.
We estimate that beer industry volumes declined by approximately 3% in 3Q16, with considerable
volatility in the quarter due to continuing consumer price sensitivity. Although the beer market remains
very competitive, we estimate that our market share trends saw sequential improvement compared to
2Q16.
Despite the industry weakness, we remain focused on building our business for the long term. Our top
commercial priorities include elevating the perception and health of our core brands, accelerating the
growth of our premium and near beer portfolio, shaping in home consumption trends by driving the weight
of returnable glass packaging within the off trade, and enhancing out of home consumption occasions by
leveraging existing and new marketing assets.
Our total volumes declined by 5.1% in the quarter with beer volumes down 4.1% and soft drinks volumes
down 8.1%, driven by continued pressure on consumer disposable income. We also faced a tough
comparable, with beer volume growth of 3.5% in 3Q15. Our total volumes declined by 6.2% in 9M16 with
beer volumes down 6.4% and soft drinks volumes down 5.7%.
Net revenue declined by 6.8% in the quarter, with net revenue per hl down 1.2%. This was driven
primarily by our decision to implement our price adjustments in the fourth quarter this year, compared to
the third quarter last year. In addition, as part of our revenue management strategy, we are using our
complete portfolio of packs and brands to achieve attractive, more competitive consumer price points.
This initiative includes growing our mix of returnable glass bottles (RGBs), especially in supermarkets
where this format now accounts for 25% of our volume. While RGBs have a negative impact on net
revenue per hl, they are accretive for both EBITDA and margin. We have not changed our revenue
management strategy. Our strategy continues to be to increase our prices in line with inflation, and pass
on any tax increases over time.
Brazil EBITDA declined by 33% in 3Q16 to 647 million USD, with a margin decrease of 1 415 bps to
37.8%. This result was due to the decline in revenue, as well as the expected impact on cost of sales of
unfavorable foreign exchange transactional hedges, linked to the devaluation of the Brazilian Real in the
second half of 2015. This unfavorable trend in our hedges is expected to continue in 4Q16, before easing
by mid-2017.
Brazil EBITDA declined by 13.6% in 9M16 to 2 165 million USD, with EBITDA margin down 540 bps to
44.5%.
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China
Key performance indicators
Figure 6. China (million USD)
3Q15 3Q16 Organic
growth
Total volumes (thousand hls) 23 533 23 914 1.6%
Revenue 1 237 1 238 6.3%
Normalized EBITDA 288 340 25.3%
Normalized EBITDA margin 23.3% 27.5% 417 bps
9M15 9M16 Organic
growth
Total volumes (thousand hls) 62 278 62 056 -0.5%
Revenue 3 401 3 363 3.9%
Normalized EBITDA 856 973 18.9%
Normalized EBITDA margin 25.2% 28.9% 364 bps
We estimate that China beer industry volumes were essentially flat in the quarter. Industry volumes
declined by approximately 4.0% in 9M16, based on our estimates, due to continuing economic
headwinds, with most of the impact being felt in the core and value segments. Our own beer volumes
were up 1.6% in the quarter and down 0.5% in 9M16. We estimate our market share increased by
approximately 30 bps in the quarter, reaching an average of 19.0%.
We continue to believe the core plus, premium and super premium segments have the greatest long-term
growth potential in the industry. Our Budweiser volumes grew by high single digits in 3Q16, driven by our
Made for Music platform. The strong growth of our super premium brands also continued in the quarter,
led by Corona.
Revenue per hl grew by 4.6% in the quarter, driven by the growth of Budweiser and our super premium
portfolio, as well as improved regional mix.
China EBITDA grew by 25.3% in 3Q16 to 340 million USD, due mainly to the growth in revenue, as well
as a good cost of sales performance due to favorable commodity prices. EBITDA margin improved by
more than 400 bps to 27.5% in the quarter. China EBITDA grew by 18.9% in 9M16 to 973 million USD,
with an EBITDA margin of 28.9%.
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Highlights from our other markets
Our beer volumes in Canada were down 1.3% in 3Q16, due to a soft industry, with our market share
essentially flat based on our estimates. Our revenue was flat versus 3Q15, with revenue per hl up 1.3%
due to our revenue management initiatives and premium brand mix.
Our own beer volumes in Europe were down 2.6% in the quarter, with net revenue up 3.1%, driven
mainly by the growth of our premium brands. Own beer volumes in Western Europe were up by almost
3.0% in 3Q16 driven mainly by our performances in France, the UK, Spain and Italy. In the UK, volumes
of our own products grew by low single digits, driven by strong performances from Budweiser and
Corona. Own beer volumes in Belgium were down mid-single digits, due to a weak industry. In
Germany, own beer volumes grew by low single digits driven by strong performances from Beck’s and
Franziskaner. Beer volumes in Russia were down double digits in the quarter, mainly driven by market
share losses for our core and value brands.
Latin America South beer volumes were up 1.4% in the quarter, driven mainly by double digit growth in
Bolivia, Chile and Paraguay, partly offset by a volume decline in Argentina due to a weak consumer
environment.
In South Korea, beer volumes were down low single digits in the quarter, although we gained market
share, based on our estimates. This performance was driven mainly by our successful Cass summer
activations and a new Stella Artois marketing campaign.
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CONSOLIDATED INCOME STATEMENT
Figure 7. Consolidated income statement (million USD)
3Q15 3Q16 Organic
growth
Revenue 11 376 11 109 2.8%
Cost of sales -4 444 -4 393 -3.9%
Gross profit 6 932 6 716 2.1%
Distribution expenses -1 089 -1 095 -6.8%
Sales and marketing expenses -1 823 -1 957 -12.6%
Administrative expenses - 615 - 597 1.6%
Other operating income/(expenses) 229 147 -14.5%
Normalized profit from operations
(normalized EBIT) 3 634 3 214 -5.0%
Non-recurring items above EBIT 66 -138
Net finance income/(cost) - 810 -1 226
Non-recurring net finance income/(cost) - 327 - 678
Share of results of associates 4 3
Income tax expense - 795 - 225
Profit 1 772 950
Profit attributable to non-controlling interest 397 394
Profit attributable to equity holders of AB InBev 1 375 557
Normalized EBITDA 4 403 4 032 -2.0%
Normalized profit attributable to equity
holders of AB InBev 1 673 1 363
9M15 9M16 Organic
growth
Revenue 32 881 31 315 3.3%
Cost of sales -13 106 -12 395 -2.2%
Gross profit 19 775 18 920 4.0%
Distribution expenses -3 214 -3 059 -5.4%
Sales and marketing expenses -5 166 -5 525 -15.0%
Administrative expenses -1 878 -1 776 0.6%
Other operating income/(expenses) 712 569 5.7%
Normalized profit from operations
(normalized EBIT) 10 229 9 129 -1.0%
Non-recurring items above EBIT 77 - 276
Net finance income/(cost) -1 273 -3 171
Non-recurring net finance income/(cost) 8 -2 846
Share of results of associates 12 5
Income tax expense -1 920 -1 059
Profit 7 133 1 780
Profit attributable to non-controlling interest 1 148 938
Profit attributable to equity holders of AB InBev 5 985 842
Normalized EBITDA 12 526 11 505 1.5%
Normalized profit attributable to equity
holders of AB InBev 5 952 3 934
Revenue
Consolidated revenue grew by 2.8% in 3Q16, and by 3.3% in 9M16. Revenue per hl grew by 3.8% in the
quarter, with the benefits of our revenue management and premiumization initiatives being partly offset by
results in Brazil, driven by the timing of our price adjustments and an increase in our returnable glass
bottle (RGB) mix. On a constant geographic basis, revenue per hl grew by 3.7% in 3Q16. Revenue per hl
grew by 4.8% in 9M16 and by 4.4% on a constant geographic basis
Cost of Sales (CoS)
Total CoS increased by 3.9% in 3Q16 and by 4.9% on a per hl basis, driven by unfavorable foreign
exchange transactional hedges in Brazil, and premium brand product mix, partly offset by procurement
11
savings, efficiencies and a greater mix of inputs from our vertical operations. On a constant geographic
basis, CoS per hl increased by 5.3%. In 9M16 CoS grew by 2.2% and by 3.7% on a per hl basis. On a
constant geographic basis, CoS per hl increased by 3.3% in 9M16
Distribution expenses
Distribution expenses grew by 6.8% and by 7.8% on a per hl basis. The increase compared to 3Q15 was
driven by increased own distribution in Brazil, which is more than offset by the increase in net revenues,
the growth of our premium and near beer brands, and inflationary increases in Latin America South.
These increases were partly offset by strong cost management and efficiencies. Distribution expenses
increased by 5.4% in 9M16 and by 6.9% on a per hl basis.
Sales and marketing investments
Sales and marketing investments increased by 12.6% in 3Q16, driven by increased support for our
brands, our premiumization initiatives, and the expansion of the near beer category, and by 15.0% in
9M16. We expect sales and marketing investments to grow by high single to low double digits in FY16. In
line with this guidance, we expect sales and marketing investments in 4Q16 to be essentially flat to 4Q15.
Administrative expenses
Administrative expenses decreased by 1.6% in the quarter and by 0.6% in 9M16.
Other operating income
Other operating income decreased by 14.5% to 147 million USD in 3Q16 due to lower government
incentives related to our reduced revenues in Brazil. Other operating income increased by 5.7% to
569 million USD in 9M16.
Non-recurring items above EBIT
Figure 8. Non-recurring items above EBIT (million USD)
3Q15 3Q16 9M15 9M16
Restructuring (including impairment losses) -37 -29 -91 -92
Judicial settlement -3 - -80 -
Acquisition costs / Business combinations - -105 -4 -183
Business and asset disposal (including impairment losses) 106 -4 252 -2
Impact on profit from operations 66 -138 77 -276
Normalized profit from operations excludes negative non-recurring items of 138 million USD in 3Q16,
primarily due to acquisition costs related to the combination with SABMiller, as well as restructuring costs.
Net finance income/(cost)
Figure 9. Net finance income/(cost) (million USD)
3Q15 3Q16 9M15 9M16
Net interest expense -338 -881 -1 098 -2 428
Net interest on net defined benefit liabilities -29 -24 -89 -83
Accretion expense -94 -143 -243 -406
Other financial results -349 -178 157 -254
Net finance income/(cost) -810 -1 226 -1 273 -3 171
Net finance costs (excluding non-recurring net finance costs) were 1 226 million USD in 3Q16 compared
to 810 million USD in 3Q15. This increase was driven primarily by the additional net interest expenses
resulting from the bond issuances in 1Q16 related to the pre-funding of the SABMiller combination. Other
financial results include a negative mark-to-market adjustment of 57 million USD in 3Q16, linked to the
hedging of our share-based payment programs, compared to a loss of 585 million USD in 3Q15. Other
finance results in 3Q16 also include lower foreign exchange translation gains than 3Q15.
The number of shares covered by the hedging of our share-based payment programs, and the opening
and closing share prices, are shown in figure 10 below.
12
Figure 10. Share-based payment hedge
3Q15 3Q16 9M15 9M16
Share price at the start of the period (Euro) 107.50 117.60 93.86 114.40
Share price at the end of the period (Euro) 94.92 116.60 94.92 116.60
Number of equity derivative instruments at the
35.5 44.2 35.5 44.2
end of the period (millions)
Non-recurring net finance income/(cost)
Figure 11. Non-recurring net finance income/(cost) (million USD)
3Q15 3Q16 9M15 9M16
Mark-to-market (Grupo Modelo deferred share instrument) -327 -22 8 124
Mark-to-market (Portion of the FX hedging of the purchase price of the combination
- - 594 - -2 959
with SABMiller that does not qualify for hedge accounting)
Other mark-to-market (Restricted shares and euro bonds) - -17 - 276
Other - -45 - -287
Non-recurring net finance income/(cost) -327 - 678 8 -2 846
Non-recurring net finance costs were 678 million USD in 3Q16 compared to 327 million USD in 3Q15.
Non-recurring net finance costs in 3Q16 include a negative mark-to-market adjustment of 594 million
USD, related to the portion of the FX hedging of the purchase price of the combination with SABMiller that
does not qualify for hedge accounting under IFRS rules.
The 3Q16 result also includes mark-to-market losses on derivative instruments entered into to hedge the
deferred share instrument issued in a transaction related to the combination with Grupo Modelo, and
derivative instruments entered into to hedge part of the restricted shares issued in relation to the
combination with SABMiller. The number of shares covered by the hedging of the deferred share
instrument and the restricted shares are shown in figure 12, together with the opening and closing share
prices.
Other non-recurring net finance costs of 45 million USD in 3Q16 mainly relate to commitment fees for the
2015 committed senior acquisition facilities, which were undrawn at the end of the quarter.
Figure 12. Deferred and restricted shares
3Q15 3Q16 9M15 9M16
Share price at the start of the period (Euro) 107.50 117.60 93.86 114.40
Share price at the end of the period (Euro) 94.92 116.60 94.92 116.60
Number of equity derivative instruments at the
23.1 38.1 23.1 38.1
end of the period (millions)
Income tax expense
Figure 13. Income tax expense (million USD)
3Q15 3Q16 9M15 9M16
Income tax expense 795 225 1 920 1 059
Effective tax rate 31.0% 19.2% 21.2% 37.4%
Normalized effective tax rate 26.8% 11.7% 20.5% 18.2%
Income tax expense in 3Q16 was 225 million USD with a normalized effective tax rate (ETR) of 11.7%,
compared to an income tax expense of 795 million USD in 3Q15 and a normalized ETR of 26.8%. The
normalized ETR was favorably impacted by the reporting of previously unrecognized deferred tax assets
on carried forward losses, and the reversal of deferred tax liabilities following a change in tax law in
Argentina. The variance between the normalized ETR in 3Q16 and 3Q15 was also impacted by the
swing, between the two quarters, in the mark-to-market adjustment linked to the hedging of our share-
based payment programs.
The increase in the reported ETR from 21.2% in 9M15 to 37.4% in 9M16 is mainly due to the unfavorable
impact on profit before tax of the negative mark-to-market adjustment related to the hedging of the
purchase price of the combination with SABMiller.
13
Profit attributable to non-controlling interest
Profit attributable to non-controlling interest decreased from 397 million USD in 3Q15 to
394 million USD in 3Q16, due to the unfavorable operating performance of Brazil in the third quarter,
offset by favorable currency translation effects.
Normalized Profit and Profit
Figure 14. Normalized Profit attribution to equity holders of AB InBev (million USD)
3Q15 3Q16 9M15 9M16
Profit attributable to equity holders of AB InBev 1 375 557 5 985 842
Non-recurring items, after taxes, attributable to equity holders of AB InBev - 29 128 - 25 246
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of AB
327 678 -8 2 846
InBev
Normalized profit attributable to equity holders of
1 673 1 363 5 952 3 934
AB InBev
Normalized profit attributable to equity holders of AB InBev decreased to 1 363 million USD in 3Q16 from
1 673 million USD in 3Q15 mainly driven by the organic decline in EBITDA, higher net finance results and
unfavorable currency translation, partly offset by lower income taxes. Normalized profit attributable to
equity holders of AB InBev was 3 934 million USD in 9M16, compared to 5 952 million USD in 9M15.
Normalized and Basic EPS
Figure 15. Earnings per share (USD)
3Q15 3Q16 9M15 9M16
Basic earnings per share 0.84 0.34 3.65 0.51
Non-recurring items, after taxes, attributable to equity holder of AB InBev, per share -0.02 0.08 -0.02 0.15
Non-recurring finance (income)/cost, after taxes, attributable to equity holders of
0.20 0.41 0.00 1.73
AB InBev, per share
Normalized earnings per share 1.02 0.83 3.63 2.40
Normalized earnings per share (EPS) decreased to 0.83 USD in 3Q16 from 1.02 USD in 3Q15, mainly
driven by the organic decline in EBITDA, higher net finance results and unfavorable currency translation,
partly offset by lower income taxes.
Normalized EPS, excluding the impact of unfavorable currency translation, the mark-to-market adjustment
linked to the hedging of our share based compensation programs and the net cost of the pre-funding of
the SABMiller purchase price, decreased to 1.21 USD in 3Q16 from 1.38 USD in 3Q15.
14
Figure 16. Reconcilation - Normalized Earnings per share in USD
3Q15 3Q16 9M15 9M16
Normalized EBIT attributable to equity holders of AB InBev 1 1.89 1.83 5.30 5.27
Income tax expense 1 -0.39 -0.17 -0.96 -0.68
Other1 -0.12 -0.45 -0.73 -1.35
Normalized EPS before currency translation, mark-to-market and prefunding of
1.38 1.21 3.61 3.24
the combination with SABMiller
Year over Year currency translation -0.06 -0.25
Net cost of the pre-funding of the SABMiller purchase price -0.28 -0.74
Mark-to-market (Hedging of our share-based payment programs) -0.36 -0.04 0.02 0.15
Normalized EPS 1.02 0.83 3.63 2.40
1
at 2015 foreign exchange rate
Figure 17. Reconcilation - Basic Earnings per share in USD
3Q15 3Q16 9M15 9M16
EBIT attributable to equity holders of AB InBev 1 1.95 1.68 5.38 5.10
Income tax expense 1 -0.44 -0.20 -1.01 -0.67
Other1 -0.11 -0.30 -0.74 -1.25
Basic EPS before currency translation, mark-to-market and prefunding of the
1.40 1.18 3.63 3.18
combination with SABMiller
Year over Year currency translation -0.06 -0.25
Net cost of the pre-funding of the SABMiller purchase price -0.28 -0.74
Mark-to-market (Hedging of our share-based payment programs) -0.36 -0.04 0.02 0.15
Mark-to-market (Grupo Modelo deferred share instrument) -0.20 -0.01 0.00 0.08
Mark-to-market (FX hedging of the purchase price of the combination with SABMiller
-0.36 -1.80
that does not qualify for hedge accounting)
Other mark-to-market (Derivative instruments entered into to hedge part of the
Restricted shares to be issued as well as to convert the 13.25 billion euro bonds -0.01 0.17
issuance on 29 March 2016, into US dollars)
Accelerated accretion expenses following the cancellation of the 2015 committed
-0.02 -0.17
senior acquisition facilities and other fees
Acquisition costs / Business combinations -0.06 -0.11
Basic EPS 0.84 0.34 3.65 0.51
1
at 2015 foreign exchange rate
Reconciliation between profit attributable to equity holders and normalized EBITDA
Figure 18. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD)
3Q15 3Q16 9M15 9M16
Profit attributable to equity holders of AB InBev 1 375 557 5 985 842
Non-controlling interests 397 394 1 148 938
Profit 1 772 950 7 133 1 780
Income tax expense 795 225 1 920 1 059
Share of result of associates -4 -3 - 12 -5
Net finance (income)/cost 810 1 226 1 273 3 171
Non-recurring net finance (income)/cost 327 678 -8 2 846
Non-recurring items above EBIT (incl. non-recurring impairment) - 66 138 - 77 276
Normalized EBIT 3 634 3 214 10 229 9 129
Depreciation, amortization and impairment 770 818 2 297 2 377
Normalized EBITDA 4 403 4 032 12 526 11 505
Normalized EBITDA and normalized EBIT are measures utilized by AB InBev to demonstrate the
company’s underlying performance.
Normalized EBITDA is calculated excluding the following effects from profit attributable to equity holders
of AB InBev: (i) non-controlling interest; (ii) income tax expense; (iii) share of results of associates; (iv) net
finance cost; (v) non-recurring net finance cost; (vi) non-recurring items above EBIT (including non-
recurring impairment); and (vii) depreciation, amortization and impairment.
Normalized EBITDA and normalized EBIT are not accounting measures under IFRS accounting and
should not be considered as an alternative to profit attributable to equity holders as a measure of
operational performance, or an alternative to cash flow as a measure of liquidity. Normalized EBITDA and
15
normalized EBIT do not have a standard calculation method and AB InBev’s definition of normalized
EBITDA and normalized EBIT may not be comparable to that of other companies.
INTERIM DIVIDEND
The AB InBev board has approved an interim dividend of 1.60 EUR per share for the fiscal year 2016.
Dividend Timeline
Ex-coupon date Record date Payment date
Euronext: ABI 15 November 2016 16 November 2016 17 November 2016
MEXBOL: ANB 15 November 2016 16 November 2016 17 November 2016
JSE: ANH 16 November 2016 18 November 2016 21 November 2016
NYSE: BUD (ADR program) 14 November 2016 16 November 2016 8 December 2016
16
RECENT EVENTS
1. Completion of combination with SABMiller plc (“SABMiller”)
On 10 October 2016, Anheuser-Busch InBev SA/NV (“AB InBev”, formerly Newbelco SA/NV
(“Newbelco”)) announced the successful completion of the business combination with SABMiller.
The combined company will now have operations in virtually every major beer market and an
expanded portfolio that includes global, multi-country and local brands, providing more choices for
consumers around the world. Customers will benefit from a broad distribution network and strong
brand-building expertise. The company will also continue to develop its business in partnership with
its suppliers as it continues brewing the best beers using the best ingredients.
AB InBev will also now benefit from a more geographically diversified platform, with a stronger
presence in key emerging regions with attractive growth prospects, such as Africa and Latin America.
The growth opportunities in these developing markets will complement the stability and strength of
the company’s strong existing presence in developed markets.
2. SABMiller trading update
Change of control of SABMiller occurred on 8 October 2016. Therefore, AB InBev’s 3Q16 results do
not include the SABMiller retained business.
The following table and commentary contain the volume and revenue results of the SABMiller
retained business for the three months to 30 September 2016, and is provided for information only.
The table excludes:
(i) all SABMiller joint ventures and associates
(ii) businesses and joint venture interests sold after the closing of the combination
(iii) businesses being held for sale (Central and Eastern Europe)
Figure 19. Retained Business Volumes (thousand hls) and Net Revenue (million USD)
3Q16 3Q16 Organic Growth 3Q16 Organic
Total Lager Total Lager Net Growth
Volume Volume Volume Volume Revenue
Latin America 16 007 10 981 -2% -1% 1 250 3%
Asia Pacific 2 579 2 556 -5% -5% 391 2%
Africa 23 190 10 253 -3% -3% 1 463 10%
Other Markets 274 265 5% 5% 42 10%
Total Retained Business 42 050 24 055 -3% -2% 3 145 5%
Total volumes of the retained business were down 3% in 3Q16, with lager volumes declining by 2%.
Net revenue grew by 5% in 3Q16.
Latin America
Revenue in Colombia increased by low single digits in the quarter driven by revenue management
initiatives, and supported by our premium brands. Lager volumes declined by low single digits
primarily due to a transport strike in July, and a tough 3Q15 comparable. In Peru, revenue grew by
low single digits in 3Q16, with our lager volumes also increasing by low single digits, led by strong
performances from Cristal and Cusqueña. Revenue in Ecuador declined by double digits in the
quarter, driven by lager volumes which were negatively impacted by the recent earthquake, and price
adjustments linked to tax increases. In Panama, revenues and volumes grew double digits in 3Q16,
building on the recovery that started in the previous quarter. Honduras also delivered double digit
lager volume growth in the quarter with strong performances in both the on and off premise channels.
17
Asia Pacific
In Australia, revenue increased by low single digits in the quarter, mainly driven by revenue
management initiatives and positive mix impacts. Lager volumes were up low single digits for the
quarter with growth in the Great Northern brand family offsetting the decline in our
mainstream brands, Victoria Bitter and Carlton Draught.
Africa
Results in 3Q16 were impacted by weak macro-economic conditions in many markets. Volumes in
South Africa were soft as a result of economic weakness and the timing of our price increase in the
prior year. However, revenues increased by mid-single digits in the quarter driven by our revenue
management initiatives and the growth of our premium portfolio, led by Castle Lite. In Tanzania,
revenue grew low single digits with pressure on consumer disposable income being partly offset by
positive mix. The business in Nigeria continued to deliver strong growth, with revenue up double
digits in the quarter driven by increased lager volumes, as a result of increased capacity, as well as
favorable mix. In Mozambique, lager volumes were negatively impacted by the economic crisis,
although revenues grew by double digits due to price adjustments in line with inflation. Zambia
delivered double digit revenue growth in the quarter, although volumes were down mid-single digits,
driven by weakness in traditional beer volumes following a price increase.
3. Disposals following the completion of the combination with SABMiller
On 11 October 2016, AB InBev announced that it had completed the divestiture of its interest in the
Peroni, Grolsch and Meantime brand families to Asahi Group Holdings, Ltd.; its interest in MillerCoors
LLC to Molson Coors Brewing Company; and its interest in China Resources Snow Breweries Limited
to China Resources Beer (Holdings) Company Limited.
4. Coca-Cola Beverages Africa (“CCBA”)
On 11 October The Coca-Cola Company notified AB InBev of its intention to acquire AB InBev’s
stake in CCBA. AB InBev will negotiate the terms of the transaction with The Coca-Cola Company
according to the contractual arrangements.
5. Draw down, cancellation and repayment of Committed Senior Acquisition Facilities
On 6 October 2016, the company drew down 8.0 billion USD under Term Facility B and 10.0 billion
USD under the Disposal Bridge Facility to finance the combination with SABMiller, and announced
that it had also chosen to voluntarily cancel 2.0 billion USD of Term Facility B. On 20 October 2016,
the company fully repaid and cancelled the Disposal Bridge Facility. As of 24 October 2016, 8.0 billion
USD remained outstanding under the Term Facility B.
18
NOTES
AB InBev’s 3Q16 and 3Q15 and 9M16 and 9M15 reported numbers are based on unaudited interim consolidated financial
statements prepared in accordance with IFRS. Unless otherwise indicated, amounts are presented in million USD.
To facilitate the understanding of AB InBev’s underlying performance, the analyses of growth, including all comments in this press
release, unless otherwise indicated, are based on organic growth and normalized numbers. In other words, financials are analyzed
eliminating the impact of changes in currencies on translation of foreign operations, and scope changes. Scope changes represent
the impact of acquisitions and divestitures, the start or termination of activities or the transfer of activities between segments,
curtailment gains and losses and year over year changes in accounting estimates and other assumptions that management does
not consider as part of the underlying performance of the business.
All references per hectoliter (per hl) exclude US non-beer activities. To eliminate the effect of geography mix, i.e. the impact of
stronger volume growth coming from countries with lower revenue per hl, and lower Cost of Sales per hl, we are also presenting,
where specified, organic growth per hectoliter figures on a constant geographic basis. When we make estimations on a constant
geographic basis, we assume each country in which we operate accounts for the same percentage of our global volume as in the
same period of the previous year.
Whenever presented in this document, all performance measures (EBITDA, EBIT, profit, tax rate, EPS) are presented on a
“normalized” basis, which means they are presented before non-recurring items. Non-recurring items are either income or expenses
which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are
important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized
measures are additional measures used by management, and should not replace the measures determined in accordance with
IFRS as an indicator of the Company’s performance. Values in the figures and annexes may not add up, due to rounding.
3Q16 and 9M16 EPS is based upon a weighted average of 1 642 million shares compared to 1 639 million shares for 3Q15 and
9M15.
Legal Disclaimer
This release contains “forward-looking statements”. These statements are based on the current expectations and views of future
events and developments of the management of Anheuser-Busch InBev and are naturally subject to uncertainty and changes in
circumstances. The forward-looking statements contained in this release include, among other things, statements relating to
Anheuser-Busch InBev’s business combination with SABMiller and other statements other than historical facts. Forward-looking
statements include statements typically containing words such as “will”, “may”, “should”, “believe”, “intends”, “expects”, “anticipates”,
“targets”, “estimates”, “likely”, “foresees” and words of similar import. All statements other than statements of historical facts are
forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect the current
views of the management of Anheuser-Busch InBev, are subject to numerous risks and uncertainties about Anheuser-Busch InBev
and are dependent on many factors, some of which are outside of Anheuser-Busch InBev’s control. There are important factors,
risks and uncertainties that could cause actual outcomes and results to be materially different, including the ability to realize
synergies from the business combination with SABMiller, the risks and uncertainties relating to Anheuser-Busch InBev described
under Item 3.D of Anheuser-Busch InBev’s Annual Report on Form 20-F (“Form 20-F”) filed with the US Securities and Exchange
Commission (“SEC”) on 14 March 2016 and the risks and uncertainties related to the combination with SABMiller described under
“Risk Factors” in the Registration Statement on Form F-4 (“Form F-4”) filed with the SEC on 26 August 2016. Other unknown or
unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.
The forward-looking statements should be read in conjunction with the other cautionary statements that are included elsewhere,
including Anheuser-Busch InBev’s most recent Form 20-F, the Form F-4 and other reports furnished on Form 6-K, and any other
documents that Anheuser-Busch InBev or SABMiller have made public. Any forward-looking statements made in this
communication are qualified in their entirety by these cautionary statements and there can be no assurance that the actual results or
developments anticipated by Anheuser-Busch InBev will be realized or, even if substantially realized, that they will have the
expected consequences to, or effects on, Anheuser-Busch InBev or its business or operations. Except as required by law,
Anheuser-Busch InBev undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
The third quarter 2016 (3Q16) and nine months (9M16) financial data set out in Figure 1 (except for the volume information), Figures
7 to 9, 11, 14 to 15 and 18 of this press release have been extracted from the group’s unaudited condensed consolidated interim
financial statements as of and for the nine months ended 30 September 2016, which have been reviewed by our statutory auditors
Deloitte Bedrijfsrevisoren BCVBA in accordance with the standards of the Public Company Accounting Oversight Board (United
States). The auditors concluded that, based on their review, nothing had come to their attention that caused them to believe that
those interim financial statements were not presented fairly, in all material respects, in accordance with IAS 34 “Interim Financial
Reporting”, as issued by the IASB and as adopted by the European Union. Financial data included in Figures 3 to 6, 10, 12 and 16
to 17 have been extracted from the underlying accounting records as of and for the nine months ended 30 September 2016 (except
for the volume information).
19
CONFERENCE CALL AND WEBCAST
FERENCE CALL AND WEBCAST
Investor Conference call and Webcast on Friday, October 28, 2016:
3.00pm Brussels / 2.00pm London / 9.00am New York
Registration details
Webcast (listen-only mode)
http://event.on24.com/r.htm?e=1117088&s=1&k=070D9A7AAD46D2BF4302259F940EEF07
Conference call (with interactive Q&A)
http://www.directeventreg.com/registration/event/21565424
ANHEUSER-BUSCH INBEV CONTACTS
Media Investors
Marianne Amssoms Graham Staley
Tel: +1-212-573-9281 Tel: +1-212-573-4365
E-mail: marianne.amssoms@ab-inbev.com E-mail: graham.staley@ab-inbev.com
Karen Couck Lauren Abbott
Tel: +1-212-573-9283 Tel: +1-212-573-9287
E-mail: karen.couck@ab-inbev.com E-mail: lauren.abbott@ab-inbev.com
Kathleen Van Boxelaer Heiko Vulsieck
Tel: +32-16-27-68-23 Tel: +32-16-27-68-88
E-mail: kathleen.vanboxelaer@ab-inbev.com E-mail: heiko.vulsieck@ab-inbev.com
About Anheuser-Busch InBev
Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the
Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York
Stock Exchange (NYSE: BUD). Our Dream is to bring people together for a better world. Beer, the original social network, has been
bringing people together for thousands of years. We are committed to building great brands that stand the test of time and to
brewing the best beers using the finest natural ingredients. Our diverse portfolio of well over 400 beer brands includes global brands
Budweiser®, Corona® and Stella Artois®; multi-country brands Beck’s®, Castle®, Castle Lite®, Hoegaarden® and Leffe®; and
local champions such as Aguila®, Antarctica®, Bud Light®, Brahma®, Cass®, Chernigivske®, Cristal®, Harbin®, Jupiler®,
Klinskoye®, Michelob Ultra®, Modelo Especial®, Quilmes®, Victoria®, Sedrin®, Sibirskaya Korona® and Skol®. Our brewing
heritage dates back more than 600 years, spanning continents and generations. From our European roots at the Den Hoorn
brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle
Brewery in South Africa during the Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with
a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately 200,000
employees based in more than 50 countries worldwide. In 2015, on a combined pro forma basis, AB InBev realized 55.5 billion
US dollar in revenues (excluding JVs and associates).
20
Annex 1
AB InBev Worldwide 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 121 731 431 - -1 135 121 027 -0.9%
of which AB InBev own beer 110 927 337 - - 193 111 070 -0.2%
Revenue 11 376 -27 -553 313 11 109 2.8%
Cost of sales -4 444 29 194 -169 -4 393 -3.9%
Gross profit 6 932 2 -359 142 6 716 2.1%
Distribution expenses -1 089 -15 83 -73 -1 095 -6.8%
Sales and marketing expenses -1 823 -4 99 -229 -1 957 -12.6%
Administrative expenses - 615 -23 31 10 - 597 1.6%
Other operating income/(expenses) 229 -51 -5 -26 147 -14.5%
Normalized EBIT 3 634 -91 -153 -176 3 214 -5.0%
Normalized EBITDA 4 403 -87 -200 -85 4 032 -2.0%
Normalized EBITDA margin 38.7% 36.3% -178 bps
North America 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 32 418 280 - - 786 31 912 -2.4%
Revenue 4 240 69 -9 -12 4 287 -0.3%
Cost of sales -1 600 -36 2 56 -1 579 3.5%
Gross profit 2 640 32 -7 44 2 709 1.7%
Distribution expenses - 338 -10 1 - - 347 -0.2%
Sales and marketing expenses - 635 -10 - -49 - 693 -7.8%
Administrative expenses - 128 -19 - 3 - 143 2.3%
Other operating income/(expenses) 5 - - 4 10 67.7%
Normalized EBIT 1 544 -5 -5 2 1 536 0.1%
Normalized EBITDA 1 734 -1 -6 14 1 741 0.9%
Normalized EBITDA margin 40.9% 40.6% 46 bps
Mexico 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 10 684 - - 1 024 11 708 9.6%
Revenue 993 -6 -150 118 955 12.0%
Cost of sales - 267 -6 43 -43 - 272 -16.0%
Gross profit 725 -12 -107 76 682 10.5%
Distribution expenses - 102 - 15 -13 - 100 -12.3%
Sales and marketing expenses - 168 11 26 -36 - 168 -22.8%
Administrative expenses - 77 1 11 -3 - 69 -4.9%
Other operating income/(expenses) 53 -53 1 -4 -3 -
Normalized EBIT 431 -55 -54 19 342 4.9%
Normalized EBITDA 513 -55 -66 26 419 5.8%
Normalized EBITDA margin 51.7% 43.9% -263 bps
Latin America - North 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 29 406 288 - -1 342 28 352 -4.5%
Revenue 2 125 36 -27 -113 2 022 -5.3%
Cost of sales - 729 -23 32 -136 - 856 -18.5%
Gross profit 1 396 13 5 -250 1 165 -17.8%
Distribution expenses - 281 -2 8 -23 - 299 -8.2%
Sales and marketing expenses - 227 -2 8 -63 - 285 -27.7%
Administrative expenses - 141 -2 2 37 - 104 26.1%
Other operating income/(expenses) 124 - - -28 95 -22.8%
Normalized EBIT 872 7 23 -328 573 -37.4%
Normalized EBITDA 1 047 7 18 -302 769 -28.7%
Normalized EBITDA margin 49.3% 38.0% -1216 bps
21
Annex 1
Latin America - South 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 7 825 12 - - 132 7 705 -1.7%
Revenue 772 2 -239 172 706 22.2%
Cost of sales - 283 - 71 -29 - 241 -10.0%
Gross profit 488 1 -168 144 465 29.4%
Distribution expenses - 75 - 30 -22 - 68 -29.8%
Sales and marketing expenses - 94 1 32 -32 - 94 -35.2%
Administrative expenses - 29 - 10 -8 - 28 -28.0%
Other operating income/(expenses) 9 - -4 4 10 41.8%
Normalized EBIT 299 2 -101 84 286 28.0%
Normalized EBITDA 351 2 -118 101 335 28.7%
Normalized EBITDA margin 45.5% 47.5% 241 bps
Europe 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 12 029 -55 - -387 11 587 -3.2%
of which AB InBev own beer 11 585 -55 - -296 11 233 -2.6%
Revenue 1 126 - -61 35 1 101 3.1%
Cost of sales - 457 -3 30 -19 - 449 -4.2%
Gross profit 670 -3 -32 16 652 2.4%
Distribution expenses - 109 -2 6 -12 - 118 -11.3%
Sales and marketing expenses - 246 - 13 6 - 227 2.4%
Administrative expenses - 63 - 2 -3 - 63 -4.1%
Other operating income/(expenses) 3 2 - -3 3 -50.1%
Normalized EBIT 255 -2 -10 4 247 1.7%
Normalized EBITDA 344 -2 -14 9 336 2.5%
Normalized EBITDA margin 30.6% 30.5% -19 bps
Asia Pacific 3Q15 Scope Currency Organic 3Q16 Organic
translation growth growth
Total volumes (thousand hls) 27 420 95 - 321 27 836 1.2%
Revenue 1 615 10 -69 81 1 635 5.0%
Cost of sales -781 -5 34 16 -737 2.0%
Gross profit 833 5 -36 97 898 11.6%
Distribution expenses -131 -2 6 -3 -130 -2.6%
Sales and marketing expenses -393 3 17 -29 -402 -7.4%
Administrative expenses -73 - 4 -11 -81 -15.5%
Other operating income/(expenses) 25 -2 -2 3 25 12.5%
Normalized EBIT 262 4 -10 56 310 21.2%
Normalized EBITDA 410 4 -19 70 463 16.8%
Normalized EBITDA margin 25.4% 28.3% 286 bps
Global Export and Holding 3Q15 Scope Currency Organic 3Q16 Organic
Companies translation growth growth
Total volumes (thousand hls) 1 949 -188 - 167 1 927 9.4%
Revenue 505 -137 4 31 402 10.4%
Cost of sales -326 102 -19 -15 -258 -8.4%
Gross profit 179 -35 -15 16 144 13.4%
Distribution expenses -54 1 16 - -35 1.5%
Sales and marketing expenses -60 -6 2 -24 -88 -38.2%
Administrative expenses -103 -2 1 -4 -109 -3.8%
Other operating income/(expenses) 8 1 - -2 7 -18.3%
Normalized EBIT -30 -41 4 -14 -80 -15.7%
Normalized EBITDA 7 -41 4 -3 -33 -6.1%
22
Annex 2
AB InBev Worldwide 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 345 893 - 144 - -4 946 340 803 -1.4%
of which AB InBev own beer 311 425 824 - -2 299 309 950 -0.7%
Revenue 32 881 - 60 -2 579 1 073 31 315 3.3%
Cost of sales -13 106 90 900 - 278 -12 395 -2.2%
Gross profit 19 775 30 -1 679 794 18 920 4.0%
Distribution expenses -3 214 - 28 355 - 172 -3 059 -5.4%
Sales and marketing expenses -5 166 1 408 - 768 -5 525 -15.0%
Administrative expenses -1 878 - 51 142 11 -1 776 0.6%
Other operating income/(expenses) 712 - 102 - 75 35 569 5.7%
Normalized EBIT 10 229 - 151 - 850 - 100 9 129 -1.0%
Normalized EBITDA 12 526 - 142 -1 068 189 11 505 1.5%
Normalized EBITDA margin 38.1% 36.7% -65 bps
North America 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 90 834 485 - - 968 90 351 -1.1%
Revenue 11 959 101 -67 89 12 082 0.7%
Cost of sales -4 673 - 28 16 204 -4 481 4.4%
Gross profit 7 286 73 -51 293 7 601 4.0%
Distribution expenses - 994 - 20 12 19 - 983 1.9%
Sales and marketing expenses -1 720 - 21 10 - 264 -1 995 -15.5%
Administrative expenses - 382 - 41 3 14 -405 3.6%
Other operating income/(expenses) 25 -9 - 25 41 -
Normalized EBIT 4 215 - 17 -26 87 4 259 2.1%
Normalized EBITDA 4 772 -9 -29 123 4 857 2.6%
Normalized EBITDA margin 39.9% 40.2% 73 bps
Mexico 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 30 675 - - 2 995 33 670 9.8%
Revenue 2 941 - 19 -483 362 2 802 12.4%
Cost of sales - 775 - 10 134 - 125 - 776 -16.3%
Gross profit 2 165 - 29 -349 238 2 025 11.0%
Distribution expenses - 299 -2 51 - 48 - 298 -15.9%
Sales and marketing expenses - 510 31 88 - 122 - 513 -25.4%
Administrative expenses - 273 1 39 6 - 227 2.1%
Other operating income/(expenses) 162 - 92 -12 9 67 12.4%
Normalized EBIT 1 245 - 91 -182 83 1 054 7.0%
Normalized EBITDA 1 499 - 91 -223 105 1 291 7.4%
Normalized EBITDA margin 51.0% 46.1% -219 bps
Latin America - North 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 88 165 875 - -4 916 84 124 -5.5%
Revenue 6 609 109 - 861 - 126 5 731 -1.9%
Cost of sales -2 302 - 61 321 - 154 -2 196 -6.6%
Gross profit 4 307 48 - 540 - 281 3 535 -6.5%
Distribution expenses - 868 -7 127 - 55 - 803 -6.3%
Sales and marketing expenses - 774 -7 117 - 93 - 758 -12.0%
Administrative expenses - 382 -8 45 51 - 294 13.2%
Other operating income/(expenses) 398 1 -49 - 65 284 -16.4%
Normalized EBIT 2 682 27 - 301 - 444 1 964 -16.4%
Normalized EBITDA 3 217 27 - 384 - 355 2 504 -11.0%
Normalized EBITDA margin 48.7% 43.7% -450 bps
23
Annex 2
Latin America - South 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 25 682 -1 048 - -1 710 22 924 -6.9%
Revenue 2 386 -32 -724 353 1 982 15.1%
Cost of sales - 902 26 229 -37 - 684 -4.2%
Gross profit 1 483 -7 -495 317 1 298 21.5%
Distribution expenses - 228 6 89 -62 - 196 -28.1%
Sales and marketing expenses - 282 2 95 -79 - 265 -28.6%
Administrative expenses - 95 1 30 -14 - 78 -15.0%
Other operating income/(expenses) 9 -8 -6 17 12 -
Normalized EBIT 887 -6 -287 177 772 20.1%
Normalized EBITDA 1 032 -6 -341 230 915 22.5%
Normalized EBITDA margin 43.3% 46.2% 281 bps
Europe 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 32 686 - 221 - - 336 32 129 -1.0%
of which AB InBev own beer 31 483 - 221 - - 113 31 149 -0.4%
Revenue 3 048 - 14 - 159 122 2 997 4.0%
Cost of sales -1 254 -3 80 - 58 -1 235 -4.7%
Gross profit 1 795 - 17 -80 64 1 762 3.6%
Distribution expenses - 312 -5 18 - 23 - 322 -7.5%
Sales and marketing expenses - 684 1 37 - 56 - 702 -8.2%
Administrative expenses - 217 - 8 10 - 199 4.6%
Other operating income/(expenses) 8 6 -1 -6 8 -40.7%
Normalized EBIT 590 - 14 -17 - 12 547 -2.0%
Normalized EBITDA 843 - 14 -30 2 801 0.2%
Normalized EBITDA margin 27.7% 26.7% -101 bps
Asia Pacific 9M15 Scope Currency Organic 9M16 Organic
translation growth growth
Total volumes (thousand hls) 72 706 398 - -209 72 894 -0.3%
Revenue 4 437 35 -221 169 4 419 3.8%
Cost of sales -2 172 - 19 107 -23 -2 107 -1.0%
Gross profit 2 264 16 -114 146 2 312 6.4%
Distribution expenses - 362 -5 18 -2 - 350 -0.5%
Sales and marketing expenses -1 038 6 52 -64 -1 043 -6.2%
Administrative expenses - 228 -1 12 -10 - 227 -4.4%
Other operating income/(expenses) 90 -2 -7 50 131 56.4%
Normalized EBIT 727 15 -39 120 822 16.3%
Normalized EBITDA 1 172 15 -64 166 1 288 14.0%
Normalized EBITDA margin 26.4% 29.1% 261 bps
Global Export and Holding 9M15 Scope Currency Organic 9M16 Organic
Companies translation growth growth
Total volumes (thousand hls) 5 146 - 632 - 198 4 711 4.4%
Revenue 1 502 - 240 -63 104 1 302 8.7%
Cost of sales -1 028 184 13 -86 - 916 -10.5%
Gross profit 474 -56 -50 18 386 4.7%
Distribution expenses - 152 5 40 -1 - 107 -0.5%
Sales and marketing expenses - 158 - 11 9 -89 - 249 -53.7%
Administrative expenses - 300 -3 4 -45 - 345 -15.1%
Other operating income/(expenses) 19 1 - 5 26 25.7%
Normalized EBIT - 117 - 64 3 -112 - 289 -53.7%
Normalized EBITDA -8 - 63 2 -82 - 151 -82.5%
28 October 2016
JSE Sponsor: Deutsche Securities (SA)
Proprietary Limited
24
Date: 28/10/2016 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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