ANHEUSER-BUSCH INBEV SA/NV - Anheuser-Busch InBev reports Second Quarter 2018 and Half Year 2018 Results

Release Date: 26/07/2018 07:32
Code(s): ANH
 
Wrap Text
Anheuser-Busch InBev reports Second Quarter 2018 and
Half Year 2018 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”)


      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 growth figures and refer to 2Q18 versus the same period of last year. For
      important notes and disclaimers please refer to page 14.




               Anheuser-Busch InBev reports Second Quarter 2018 and
                              Half Year 2018 Results
          HIGHLIGHTS

      -     Revenue: Revenue grew by 4.7% in the quarter, with revenue per hl growth of 4.0%. On a constant
            geographic basis, revenue per hl grew by 4.5% driven by revenue management initiatives as well as
            continued strong premium brand performances. In HY18, revenue grew by 4.7% with revenue per hl
            growth of 4.5%. On a constant geographic basis, revenue per hl grew by 4.9%.
      -     Volume: Total volumes grew 0.8%, while own beer volumes grew by 0.9% and non-beer volumes were
            up by 0.5%. Good growth in own beer volumes was achieved in Mexico and China, partially offset by
            the US as well as South Africa, which cycled a particularly demanding comparable. In HY18, total
            volumes were up 0.3% with own beer volumes up 0.7% and non-beer volumes down 3.4%.
      -     Global Brands: Combined revenues of our three global brands, Budweiser, Stella Artois and Corona,
            accelerated their growth this quarter, up by 10.1% globally and by 16.7% outside of their home markets.
            In HY18, the combined revenues of our global brands grew by 9.1% and by 14.6% outside of their
            home markets.
      -     Cost of Sales (CoS): CoS increased by 4.7% in 2Q18 and by 4.2% on a per hl basis. On a constant
            geographic basis, CoS per hl increased by 5.5% driven primarily by an increase in the year-over-year
            FX and commodity prices as well as country mix, partially offset by synergy capture. In HY18, CoS
            grew by 3.0% and by 2.8% on a per hl basis, while on constant geographic basis CoS per hl increased
            by 3.4%.
      -     EBITDA: EBITDA grew by 7.0% with margin expansion of 85 bps to 39.7% as a result of topline growth
            and aided by synergies and cost savings, partially offset by increased sales and marketing investments
            associated with the 2018 FIFA World Cup RussiaTM. In HY18, EBITDA grew by 6.8% and EBITDA
            margin expanded by 78 bps to 39.0%.
      -     Net finance results: Net finance costs (excluding non-recurring net finance costs) were 1 272 million
            USD in 2Q18 as compared to 1 628 million USD in 2Q17. Net finance costs were 2 816 million USD in
            HY18 as compared to 3 120 million USD in HY17.
      -     Income taxes: Normalized effective tax rate increased to 24.8% in 2Q18 from 21.3% in 2Q17, and
            increased to 26.3% in HY18 from 20.9% in HY17.




ab-inbev.com                                                                                                                                             1
      -   Profit: Normalized profit attributable to equity holders of AB InBev was 2 163 million USD in 2Q18 as
          compared to 1 872 million USD in 2Q17. Normalized profit attributable to equity holders of AB InBev
          increased to 3 605 million USD in HY18 from 3 331 million USD in HY17.
      -   Earnings per share: Normalized earnings per share (EPS) increased by 15.8% from 0.95 USD in
          2Q17 to 1.10 USD in 2Q18 and by 8.3% from 1.69 USD in HY17 to 1.83 USD in HY18.
      -   Combination with SAB: The business integration is progressing well, with synergies and cost savings
          of 199 million USD captured during 2Q18 and 359 million USD captured during HY18.
      -   2018 Half Year Financial Report: The report is available on our website at www.ab-inbev.com.



      Figure 1. Consolidated performance (million USD)
                                                                                         2Q17           2Q18    Organic
                                                                                                                growth
      Total Volumes (thousand hls)                                                     157 679     143 685        0.8%
                                                          AB InBev own beer            130 483     127 632        0.9%
                                                           Non-beer volumes             25 889      14 733        0.5%
                                                         Third party products            1,306       1 320        2.0%
      Revenue                                                                           14 182      14 014        4.7%
      Gross profit                                                                       8 738       8 818        4.8%
      Gross margin                                                                      61.6%       62.9%         2 bps
      Normalized EBITDA                                                                  5 354       5 568        7.0%
      Normalized EBITDA margin                                                          37.8%       39.7%        85 bps
      Normalized EBIT                                                                    4 338       4 509        6.7%
      Normalized EBIT margin                                                            30.6%       32.2%        58 bps

      Profit attributable to equity holders of AB InBev                                  1 502          1 937
      Normalized profit attributable to equity holders of AB InBev                       1 872          2 163

      Earnings per share (USD)                                                            0.76           0.98
      Normalized earnings per share (USD)                                                 0.95           1.10
                                                                                HY17             HY18           Organic
                                                                                                                growth
      Total Volumes (thousand hls)                                                     305 550     278 515         0.3%
                                                          AB InBev own beer            248 212     245 983         0.7%
                                                           Non-beer volumes             55 132      30 074        -3.4%
                                                         Third party products            2 206       2 458       12.0%
      Revenue                                                                           27 104      27 087         4.7%
      Gross profit                                                                      16 430      16 903         5.8%
      Gross margin                                                                      60.6%       62.4%        61 bps
      Normalized EBITDA                                                                 10 162      10 557         6.8%
      Normalized EBITDA margin                                                          37.5%       39.0%        78 bps
      Normalized EBIT                                                                    8 059       8 444         8.0%
      Normalized EBIT margin                                                            29.7%       31.2%        97 bps

      Profit attributable to equity holders of AB InBev                                  2 908          2 955
      Normalized profit attributable to equity holders of AB InBev                       3 331          3 605

      Earnings per share (USD)                                                            1.48           1.50
      Normalized earnings per share (USD)                                                 1.69           1.83




ab-inbev.com                                                                                                          2
      Figure 2. Volumes (thousand hls)
                                               2Q17      Scope      Organic        2Q18     Organic growth
                                                                     growth                   Total  Own beer
                                                                                           Volume      volume
      North America                           31 320           28     -1 536      29 813     -4.9%       -5.0%
      Latin America West                      27 657           -1      1 292      28 948      4.7%        5.4%
      Latin America North                     26 131         - 64        528      26 595      2.0%        2.2%
      Latin America South                      6 730            4        318       7 052      4.8%        6.1%
      EMEA                                    36 706     -15 053       - 312      21 340     -1.4%       -1.2%
      Asia Pacific                            28 885           52        868      29 804      3.0%        3.1%
      Global Export and Holding Companies        250       - 153          35         132    35.6%        35.6%
      AB InBev Worldwide                     157 679     -15 187       1 193     143 685       0.8%        0.9%
                                            HY17       Scope        Organic     HY18         Organic growth
                                                                     growth                    Total  Own beer
                                                                                           Volume       volume
      North America                           57 156           61     -2 591      54 627      -4.5%       -4.6%
      Latin America West                      53 188         - 21      3 443      56 609       6.5%        7.9%
      Latin America North                     56 550       - 125      -2 279      54 146      -4.0%       -2.4%
      Latin America South                     15 819           21        825      16 666       5.2%        6.0%
      EMEA                                    69 625     -27 795           59     41 889       0.1%        0.1%
      Asia Pacific                            52 568           66      1 467      54 101       2.8%        2.4%
      Global Export and Holding Companies        644       - 153         - 14        478      -2.9%       -2.9%
      AB InBev Worldwide                     305 550     -27 946         911     278 515        0.3%        0.7%




ab-inbev.com                                                                                                       3
       MANAGEMENT COMMENTS

      Our business delivered another solid quarter, with improved trends in many of our key markets, achieving
      revenue growth of 4.7% and total volume growth of 0.8%. Revenue growth was broad-based, primarily
      driven by Brazil, Mexico, China and Western Europe, and strengthened by continued premiumization in the
      majority of our markets. Our High End Company (a business unit made up of a portfolio of global, specialty
      and craft brands across 22 countries) continues to lead the way with both revenue and EBITDA growing by
      more than 20% in HY18.

      The global trend of premiumization was also evident in the continued success of our global brand portfolio.
      Growth of our global brands accelerated this quarter, with revenues up 10.1% globally and 16.7% outside
      of the brands’ home markets. Budweiser revenues grew by 4.1% globally and by 10.1% outside of the US,
      driven by strong growth in Brazil, China and the UK, as well as many new markets following the brand’s
      activation as the global sponsor of the 2018 FIFA World Cup RussiaTM. Stella Artois revenues grew by
      9.0%, with good performances in Brazil, the UK and Argentina. Corona had another great quarter, with
      revenues growing by 21.9% globally and by 42.6% outside of Mexico, led by China, Western Europe and
      South Africa. All three brands continue to perform well across both mature and emerging markets, and we
      continue to see further growth opportunities as we scale them up in new markets.

      Our 2018 FIFA World Cup RussiaTM sponsorship was our most ambitious and successful ever, for both
      Budweiser and AB InBev. As the official beer sponsor, we activated our Budweiser campaign “Light Up
      FIFA World CupTM” in more than 50 countries. Football is a passion point in many of the new markets in
      which Budweiser has expanded following our combination with SAB, and this was a unique opportunity to
      engage with 3.2 billion football fans (according to FIFA) around the world and drive brand awareness. As a
      result of our global campaign and innovative digital-first approach to traditional sports sponsorship assets,
      Budweiser was the leading brand in social media conversations globally during the tournament.
      Additionally, due to an incredible execution in Russia, we sold more beer in the stadiums than in the 2014
      FIFA World Cup BrazilTM. We also activated our local brands in more than 40 countries, connecting with
      national pride in their home markets and contributing to accelerated volume growth across our portfolio.

      EBITDA grew this quarter by 7.0% with margin expansion of 85 bps to 39.7%. This was driven by topline
      growth, premiumization, enhanced synergy capture and effective cost management, though partially offset
      by higher sales and marketing investments ahead of the 2018 FIFA World Cup RussiaTM, as expected. Our
      integration with SAB continues to go as planned with synergy capture and cost savings of 199 million USD
      in the quarter.

      Our net debt increased from 104.4 billion USD as of 31 December 2017 to 108.8 billon USD as of 30 June
      2018, consistent with prior increases in the first half of the year, given that the majority of our cash flow is
      generated in the second half of the year. Our net debt to normalized EBITDA ratio increased from 4.80x as
      of 31 December 2017 to 4.87x as of 30 June 2018, as a result of our cash flow seasonality and adverse
      currency fluctuations in our EBITDA translation. Deleveraging to around 2x remains our commitment, and
      we remain on track in our deleveraging path.

      Following our successful combination with SAB, today we are also announcing some organizational
      changes to enhance our focus on topline growth and value creation. All changes will become effective on
      1 January 2019, and will also be reflected in our financial statements as of that date. To learn more, please
      read our press release available at http://www.ab-inbev.com/news/press-releases/global-press-
      releases/2018/07/anheuser-busch-inbev-announces-a-new-organization-for-future-gro.html.

      We continue to expect our growth to accelerate in the second half of this year as we scale up learnings
      from the category expansion framework and continue to share best practices across our markets.
      Furthermore, our portfolio of global and high end brands positions us well to drive category growth across
      our diverse geographic footprint in a sustainable way.


ab-inbev.com                                                                                                        4
      United States

      Our US revenues decreased by 3.1% in 2Q18 and by 2.8% in HY18. We saw continued growth in revenue
      per hl of 2.1% (2.0% in HY18), driven by revenue management initiatives and favorable brand mix, though
      this was offset by lower volumes. Our sales-to-retailers (STRs) decreased by 3.1% in 2Q18, impacted by a
      weaker industry, which declined by 2.4%, of which 1.3pp is due to the timing of Easter and the Fourth of
      July. However, sales-to-wholesalers (STWs), which drive our financials, were down by 5.1%, as we
      continue to optimize our logistics. In HY18, our STRs were down by 3.2% and our STWs were down by
      4.8%, and we continue to expect STRs and STWs to converge on a full year basis.

      We delivered our best quarterly market share performance in almost four years with a share loss of 35 bps,
      as our performance offset almost half of the negative impact of the industry segment mix shift. In HY18, our
      total market share declined by 45 bps.

      We saw accelerated growth of our Above Premium brands this quarter, which gained 100 bps of share. Our
      portfolio premiumization strategy continues to be supported by the growth of Michelob Ultra, which marked
      its thirteenth consecutive quarter as the largest share gainer in the US, and also by several successful
      innovations, including Michelob Ultra Pure Gold, Bud Light Orange and the Budweiser Reserve series.

      Premium and Premium Light brands remain under pressure, as consumers trade-up to higher price tiers
      within the industry, which contributed to Bud Light and Budweiser losing 85 bps and 40 bps of total market
      share, respectively, in 2Q18. Within their respective segments, however, Bud Light has reduced its share
      loss for four consecutive quarters and Budweiser maintained flat share of segment for two consecutive
      quarters.

      Our Value portfolio saw improved share trends within the quarter and remains an important and profitable
      segment of our business.

      Our EBITDA declined by 7.4%, primarily driven by the temporary mismatch between STRs and STWs,
      which explains approximately half of this decline. EBITDA margin contracted by 185 bps to 40.1%, impacted
      by an increase in the year-over-year price of commodities and higher distribution expenses due to increased
      freight costs, a trend that we will cycle in the second half of the year. In HY18, EBITDA decreased by 6.3%
      with margin contraction of 147 bps to 39.6%.


      Mexico

      Mexico delivered another quarter of very strong results, with double-digit revenue growth fueled by high
      single digit volume growth and revenue management initiatives, despite a tough prior year comparable due
      to the timing of Easter. In HY18, revenue and volume both grew by double-digits.

      Our full brand portfolio continued to deliver solid results, with growth coming from all brands and regions
      across the country. Leveraging the learnings from the category expansion framework, classic lagers, easy
      drinking lagers and richer beer profiles have been nurtured and priced accordingly, targeted to enhance the
      core segment, while premiumizing via core plus and international premium brands such as Stella Artois and
      Michelob Ultra. Our no- and low-alcohol space continued to evolve well, helping us move closer to our
      global goal to have 20% of our beer volume in the space by 2025.

      Strong topline growth resulted in 16.8% EBITDA growth and margin expansion of 216 bps to 45.6%, despite
      higher costs of sales as a result of unfavorable foreign exchange impact on transactional costs, while
      additional capacity has helped us meet increasing demand. In HY18, EBITDA grew by 16.4% with margin
      expansion of 79 bps to 43.5%.



ab-inbev.com                                                                                                    5
      Colombia

      Our Colombian business also performed well with revenue growth of 7.0%. Beer volumes were up by 1.1%,
      and non-beer volumes grew slightly by 0.4%, with revenue per hl growth of 5.9%. This performance was
      delivered in a quarter which was challenged by the timing of Easter as well as four evenings worth of “dry
      days” on weekends leading up to the two rounds of presidential elections. Against this backdrop, we
      estimate that beer has gained a further 25 bps of share of total alcohol this quarter. In HY18, revenue grew
      by 9.4% with beer volumes up by 4.5% and non-beer volumes up by 1.0%.

      Beer volume growth was underpinned by global as well as core brands. We saw triple-digit growth of our
      global brand portfolio, driven by Budweiser on the back of the 2018 FIFA World Cup RussiaTM activations.
      Aguila also recorded very strong growth benefiting from the activations associated with the national team’s
      participation in the tournament.

      Our EBITDA grew by 8.0% with almost 50 bps of margin expansion. This was driven by strong topline
      performance and further synergy delivery, partially offset by increased investment behind our brands. In
      HY18, EBITDA grew by mid-teens with margin expansion of over 200 bps.


      Brazil

      Revenue increased by 9.4%, with 7.7% revenue per hl expansion due to annualization of the 3Q17 price
      increases. With the negative impact from the nationwide truck drivers’ strike offset by the benefits of the
      2018 FIFA World Cup RussiaTM, total volumes were up 1.5% with beer volume growth of 1.7% in a broadly
      flat market, and non-beer volume growth of 1.0% in a market that was down by mid-single digits. In HY18,
      revenue was up by 3.3% with total volume declines of 5.3%.

      Brahma, the local sponsor of the 2018 FIFA World Cup RussiaTM in Brazil, performed well this quarter with
      a strong volume performance resulting from tournament activations. In the core plus segment, our portfolio
      posted very strong growth driven by Bohemia and Brahma Extra, and in addition, we launched Skol Hops,
      brewed with aromatic hops to provide a unique combination of lightness and flavor. Our premium portfolio
      continues to perform ahead of the industry, with our global brand portfolio growing by more than 30% and
      led by Budweiser.

      EBITDA grew by 16.1% in 2Q18, with margin expansion of 238 bps to 41.3%. This result was driven by
      revenue growth and CoS per hl increases below inflation, partially offset by higher marketing expenses
      associated with timing of investments related to the 2018 FIFA World Cup RussiaTM. In HY18, our EBITDA
      grew by 10.3% with margin expansion of 266 bps to 41.5%.


      South Africa

      As expected, 2Q18 was a challenging quarter. Revenue declined by mid-single digits, with beer volumes
      down by mid-teens as we were cycling a tough comparable (2Q17 volume growth of double-digits due to
      timing of price increases and Easter). In addition, a VAT increase as of 1 April 2018 and numerous petrol
      price increases had a negative impact on consumer disposable income. In HY18, revenue was flat with
      beer volume down by high single digits.

      Robust revenue per hl growth in 2Q18 of more than 10% was driven by the annualization of the 1 July 2017
      price increase and this year’s 1 March 2018 price increase, which followed the above-inflation excise tax
      increases.




ab-inbev.com                                                                                                    6
      In the quarter, Castle Lite was launched in a new resealable bulk pack aimed at driving growth in the in-
      home occasion, which has been well-received by consumers. Our high end portfolio grew by triple-digits
      with a good contribution from the recently launched Budweiser. The brand’s awareness and trial benefited
      from a major consumer engagement campaign linked to our global 2018 FIFA World Cup RussiaTM
      activation.

      EBITDA grew by low-single digits with further margin expansion of over 300 bps. In HY18, EBITDA grew
      by mid-single digits with margin expansion of nearly 200 bps.


      China

      Revenue grew by 6.8% in 2Q18 with volume growth of 3.0% and revenue per hl growth of 3.7%. In HY18,
      revenue grew 5.7% with revenue per hl up 3.3% and volume growth of 2.4%.

      Our momentum accelerated in the second quarter, delivering one of our best volume and share
      performances in the last three years. Budweiser resumed volume growth this quarter on the back of a strong
      2018 FIFA World Cup RussiaTM activation. Our brands continue to lead the way in e-commerce with a
      higher share online than offline. Our High End Company once again recorded triple-digit volume growth off
      of a meaningful base, led by Corona. Our estimated beer market share continues to grow, now over 20%
      for the first six months of the year.

      The business delivered organic EBITDA growth of 6.2%, with a margin contraction of 20 bps to 35.6%,
      driven by the phasing of marketing spend associated with the 2018 FIFA World Cup RussiaTM. In HY18,
      EBITDA grew by 8.2% with margin expansion of 82 bps to 35.5%.


      Highlights from our other markets

      In Canada, volumes and revenues declined by low single digits as a result of industry weakness and
      industry segment mix shift, due to increased competitive dynamics in the value segment. Our trade up
      strategy is delivering strong results, with the High End Company growing topline ahead of the industry, led
      by double-digit volume growth for our local Craft brands, and share gains from Corona and Stella Artois. Our
      focus core brands also continue to deliver strong results, with both Bud Light and Michelob Ultra among
      the fastest growing brands in Canada.

      Peru recorded mid-single digit revenue growth on low-single digit beer volume increases. We saw solid
      growth in all three global brands, as well as a strong Cristal brand activation in support of the national team
      on their way to the 2018 FIFA World Cup RussiaTM. Ecuador delivered double-digit revenue growth
      alongside volume growth of high-single digits. This resulted in share of total alcohol gains of 80 bps as we
      continue to focus on growing the beer category by expanding into new occasions.

      In Latin America South, volumes grew by mid-single digits with growth across the region. In Argentina,
      growth was driven by the repositioning of the two largest core brands, Quilmes Clásica and Brahma. Each
      continued to grow volumes as a result of a successful application of the category expansion framework.
      Our global brand volumes are up by double-digits throughout the region in HY18, and we are scaling up
      Budweiser in Argentina now that it has rejoined our portfolio in 2Q18.

      Within EMEA, Western Europe grew revenue by mid-single digits, outperforming the industry with a strong
      execution associated with the 2018 FIFA World Cup RussiaTM. Our global brands grew volumes by double-
      digits, and Budweiser’s growth was supported by tournament activations. Corona benefited from Casa
      Corona, designed as places to escape from city stress that opened in cities across Europe, as well as an
      “Ocean Week” campaign in the UK aimed at raising awareness of marine plastic pollution. In the UK, Bud


ab-inbev.com                                                                                                       7
      Light grew volumes by double-digits, leading the way for our low-alcohol beer initiatives and contributing to
      the UK’s double-digit revenue growth, despite the market cycling a tough comparable. On 30 March 2018,
      we completed the 50:50 merger of our and Anadolu Efes' existing Russia and Ukraine businesses. The
      combined business is fully consolidated in the Anadolu Efes financial accounts. As a result of the
      transaction, we stopped consolidating our Russia and Ukraine businesses and account for our investment
      in AB InBev Efes under the equity method as of that date. In Africa excluding South Africa, our own beer
      volumes grew by high single digits, with double-digit growth in the key markets of Nigeria, Zambia and
      Mozambique partially offset by declines in Tanzania and Uganda, as both suffered from heavy floods.

      Australia continues to achieve strong commercial gains with revenue growing by mid-single digits during
      the quarter. This was driven by Great Northern, which remains a key engine of growth within the easy
      drinking lager segment. Additionally, the High End Company continues to be a strong contributor to topline
      growth, led by all three of our global brands. We are working to further accelerate our global brand portfolio
      and this quarter we launched Corona Ligera, a premium mid-strength version of Corona that supports our
      low-alcohol beer initiatives. Additionally, Budweiser was brewed locally for the first time and played a key
      role in the 2018 FIFA World Cup RussiaTM activations. Our craft portfolio continues to perform well with
      double-digit gains on the back of recent acquisitions.

      2018 OUTLOOK

      (i)     Overall Performance: While recognizing volatility in some of our key markets, we expect to deliver
              strong Revenue and EBITDA growth in FY18 driven by the solid performance of our brand portfolio
              and strong commercial plans. Our growth model is now far more focused on category development,
              and as a consequence, we expect to deliver revenue per hl growth ahead of inflation based on
              premiumization and revenue management initiatives, while keeping costs below inflation. We remain
              confident that growth will accelerate in the balance of the year.

      (ii)    Synergies: We maintain our 3.2 billion USD synergy and cost savings expectation on a constant
              currency basis as of August 2016. From this total, 547 million USD was reported by former SAB as
              of 31 March 2016, and 1 945 million USD was captured between 1 April 2016 and 30 June 2018. The
              balance of roughly 700 million USD is expected to be captured by October 2020.

      (iii)   Net Finance Costs: We expect the average net debt coupon in FY18 to be around 3.7%. Net pension
              interest expenses and accretion expenses are expected to be approximately 30 and 100 million USD
              per quarter, respectively. Net finance costs will continue to be impacted by any gains and losses
              related to the hedging of our share-based payment programs.

      (iv)    Effective Tax Rate: We expect the normalized ETR in FY18 to be in the range of 24% to 26%,
              excluding any future gains and losses relating to the hedging of our share-based payment programs.
              This guidance includes the impact of the US tax reform which introduced a lower US corporate tax
              rate, offset by a broader tax base and new limitations on certain business deductions. The ETR
              guidance is based upon available interpretation of the US tax reform act and may change as the
              company receives additional clarification and implementation guidance.

      (v)     Net Capital Expenditure: We expect net capital expenditure of between 4.0 and 4.5 billion USD in
              FY18.

      (vi)    Debt: Approximately 42% of our 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.

      (vii)   Dividends: We continue to expect dividends to be a growing flow over time, although growth in the
              short term is expected to be modest given the importance of deleveraging.



ab-inbev.com                                                                                                      8
         CONSOLIDATED INCOME STATEMENT

      Figure 3. Consolidated income statement (million USD)
                                                                          2Q17           2Q18        Organic
                                                                                                     growth
      Revenue                                                            14 182         14 014          4.7%
      Cost of sales                                                      -5 444         -5 196         -4.7%
      Gross profit                                                        8 738          8 818          4.8%
      SG&A                                                               -4 551         -4 493         -3.6%
      Other operating income/(expenses)                                     151            183        24.3%
      Normalized profit from operations (normalized EBIT)                 4 338          4 509          6.7%
      Non-recurring items above EBIT                                        -66           -100
      Net finance income/(cost)                                          -1 628         -1 271
      Non-recurring net finance income/(cost)                             - 310          - 164
      Share of results of associates                                         70             37
      Income tax expense                                                  - 575          - 761
      Profit from continuing operations                                   1 829          2 248
      Discontinued operations results                                         -              -
      Profit                                                              1 829          2 248
      Profit attributable to non-controlling interest                       327            311
      Profit attributable to equity holders of AB InBev                   1 502          1 937

      Normalized EBITDA                                                   5 354          5 568         7.0%
      Normalized profit attributable to equity
      holders of AB InBev                                                 1 872          2 163

      Figure 3. Consolidated income statement (million USD)
                                                                          HY17          HY18         Organic
                                                                                                     growth
      Revenue                                                            27 104         27 087          4.7%
      Cost of sales                                                     -10 674        -10 184         -3.0%
      Gross profit                                                       16 430         16 903          5.8%
      SG&A                                                               -8 779         -8 791         -3.1%
      Other operating income/(expenses)                                     408            332         -7.0%
      Normalized profit from operations (normalized EBIT)                 8 059          8 444          8.0%
      Non-recurring items above EBIT                                      - 287          - 196
      Net finance income/(cost)                                          -3 120         -2 816
      Non-recurring net finance income/(cost)                             - 211          - 494
      Share of results of associates                                        124             93
      Income tax expense                                                  - 994         -1 436
      Profit from continuing operations                                   3 572          3 595
      Discontinued operations results                                       28               -
      Profit                                                              3 600          3 595
      Profit attributable to non-controlling interest                       692            640
      Profit attributable to equity holders of AB InBev                   2 908          2 955

      Normalized EBITDA                                                  10 162        10 557          6.8%
      Normalized profit attributable to equity
      holders of AB InBev                                                 3 331         3 605

      Revenue

      Consolidated revenue grew by 4.7% in 2Q18, with revenue per hl growth of 4.0%, driven by revenue
      management initiatives as well as continued strong premium brand performance. On a constant geographic
      basis, revenue per hl grew by 4.5%. In HY18, revenue grew by 4.7%, with revenue per hl growth of 4.5%
      on an organic basis and 4.9% on a constant geographic basis.




ab-inbev.com                                                                                               9
      Cost of Sales (CoS)

      CoS increased by 4.7% in 2Q18 and by 4.2% on a per hl basis. On a constant geographic basis, CoS per
      hl increased by 5.5% driven by an increase in the year-over-year FX and commodity prices as well as
      country mix, partially offset by synergy delivery. In HY18, total CoS increased by 3.0%, by 2.8% on a per
      hl basis, and by 3.4% per hl on a constant geographic basis.


      Selling, General and Administrative Costs (SG&A)

      SG&A grew by 3.6%, with synergy capture and good cost control partially offset by increased sales and
      marketing investments associated with the 2018 FIFA World Cup RussiaTM. In HY18, SG&A grew by 3.1%.


      Other operating income/(expenses)

      Other operating income increased organically by 24.3% in 2Q18 due to calendarization. In HY18, it declined
      by 7.0%.


      Non-recurring items above EBIT

      Figure 4. Non-recurring items above EBIT (million USD)
                                                                                        2Q17       2Q18       HY17      HY18
      Restructuring                                                                      - 99        - 83     - 288     - 137
      Acquisition costs / Business combinations                                            -8        - 23       - 25      - 38
      Business and asset disposal (including impairment losses)                            41           6         26      - 21
      Impact on profit from operations                                                   - 66      - 100      - 287     - 196


      Normalized profit from operations in 2Q18 excludes negative non-recurring items of 100 million USD,
      primarily related to the one-off restructuring costs linked to the SAB integration.


      Figure 5. Net finance income/(cost) (million USD)
                                                                                     2Q17        2Q18        HY17       HY18
      Net interest expense                                                           - 973       - 986      -2 055     -1 955
      Net interest on net defined benefit liabilities                                  - 26        - 24        - 55       - 48
      Accretion expense                                                              - 134         - 97      - 303      - 177
      Mark-to-market                                                                 - 265         - 16      - 135      - 258
      Other financial results                                                        - 230       - 148       - 573      - 378
      Net finance income/(cost)                                                     -1 628      -1 272      -3 120     -2 816


      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 6 below.

      Figure 6. Share-based payment hedge
                                                                                       2Q17        2Q18      HY17       HY18
      Share price at the start of the period (Euro)                                   102.90       89.28    100.55      93.13
      Share price at the end of the period (Euro)                                      96.71       86.50     96.71      86.50
      Number of equity derivative instruments at the end of the period (millions)       47.1        46.9      47.1       46.9




ab-inbev.com                                                                                                              10
      Non-recurring net finance income/(cost)

      Figure 7. Non-recurring net finance income/(cost) (million USD)
                                                                                        2Q17       2Q18      HY17     HY18
      Mark-to-market (Grupo Modelo combination)                                         - 125        - 10      - 71   - 127
      Early termination fee of Bonds                                                         -     - 146          -   - 244
      Other mark-to-market                                                              - 114          -9      - 69   - 123
      Other                                                                               - 71          -      - 71       -
      Non-recurring net finance income/(cost)                                           - 310      - 165     - 211    - 494


      Non-recurring net finance costs in 2Q18 include mark-to-market losses on derivative instruments entered
      into to hedge the shares issued in relation to the Grupo Modelo and SAB combinations, as well as 146
      million USD resulting from premiums paid on the early termination of certain bonds.

      The number of shares covered by the hedging of the deferred share instrument and the restricted shares
      are shown in figure 8, together with the opening and closing share prices.

      Figure 8. Non-recurring equity derivative instruments
                                                                                           2Q17      2Q18     HY17    HY18
      Share price at the start of the period (Euro)                                       102.90     89.28   100.55   93.13
      Share price at the end of the period (Euro)                                          96.71     86.50    96.71   86.50
      Number of equity derivative instruments at the end of the period (millions)           45.3      45.5     45.3    45.5




      Income tax expense

      Figure 9. Income tax expense (million USD)
                                                                                           2Q17      2Q18     HY17     HY18
      Income tax expense                                                                    575       761      994     1 436
      Effective tax rate                                                                  24.7%     25.6%    22.4%    29.1%
      Normalized effective tax rate                                                       21.3%     24.8%    20.9%    26.3%


      Our normalized effective tax rate increased to 24.8% in 2Q18 from 21.3% in 2Q17, and increased to 26.3%
      in HY18 from 20.9% in HY17. This was mainly due to country mix, as well as additional, non-deductible
      mark-to-market losses and changes in tax legislation in some of the countries in which we operate.


      Normalized Profit and Profit

      Figure 10. Normalized Profit attribution to equity holders of AB InBev (million USD)
                                                                                         2Q17      2Q18      HY17     HY18
      Profit attributable to equity holders of AB InBev                                  1 502     1 937     2 908    2 955
      Non-recurring items, before taxes                                                     66       100       287      197
      Non-recurring finance (income)/cost, before taxes                                    309       164       211      494
      Non-recurring taxes                                                                    -       - 42      - 37     - 45
      Non-recurring non-controlling interest                                                -5          4        -9        3
      Profit from discontinued operations                                                    -          -      - 28        -
      Normalized profit attributable to equity holders of AB InBev                       1 872     2 163     3 331    3 605
      Normalized profit attributable to equity holders of AB InBev excluding
      mark-to-market                                                                     2 138     2 179     3 466    3 863




ab-inbev.com                                                                                                             11
      Normalized and Basic EPS

      Figure 11. Earnings per share (USD)
                                                                                       2Q17                 2Q18       HY17        HY18
      Basic earnings per share                                                          0.76                 0.98       1.48        1.50
      Non-recurring items, before taxes                                                 0.03                 0.05       0.15        0.10
      Non-recurring finance (income)/cost, before taxes                                 0.16                 0.08       0.11        0.25
      Non-recurring taxes                                                                  -                -0.02      -0.02       -0.02
      Non-recurring non-controlling interest                                               -                    -          -           -
      Profit from discontinued operations                                                  -                    -      -0.01           -
      Normalized earnings per share                                                     0.95                 1.10       1.69        1.83
      Normalized earnings per share excluding mark-to-market                            1.09                 1.10       1.76        1.96


      Figure 12. Key components - Normalized Earnings per share in USD
                                                                                     2Q17              2Q18            HY17        HY18
      Normalized EBIT                                                                 2.20              2.29            4.09        4.29
      Mark-to-market (share-based payment programs)                                  -0.13             -0.01           -0.07       -0.13
      Net finance cost                                                               -0.70             -0.64           -1.52       -1.30
      Income tax expense                                                             -0.29             -0.41           -0.52       -0.75
      Associates & non-controlling interest                                          -0.13             -0.14           -0.29       -0.28
      Normalized EPS                                                                  0.95              1.10            1.69        1.83




      Reconciliation between profit attributable to equity holders and normalized EBITDA

      Figure 13. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev
                                                                                             2Q17             2Q18        HY17     HY18
      Profit attributable to equity holders of AB InBev                                      1 502            1 937       2 908    2 955
      Non-controlling interests                                                                327              311         692      640
      Profit                                                                                 1 829            2 248       3 600    3 595
      Discontinued operations results                                                             -                -        -28         -
      Profit from continuing operations                                                      1 829            2 248       3 572    3 595
      Income tax expense                                                                       575              761         994    1 436
      Share of result of associates                                                            - 70             - 37      - 124      - 93
      Net finance (income)/cost                                                              1 628            1 271       3 120    2 816
      Non-recurring net finance (income)/cost                                                  310              164         211      494
      Non-recurring items above EBIT (incl. non-recurring impairment)                            66             100         287      196
      Normalized EBIT                                                                        4 338            4 509       8 059    8 444
      Depreciation, amortization and impairment                                              1 016            1 059       2 103    2 113
      Normalized EBITDA                                                                      5 354            5 568      10 162   10 557


      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) discontinued operations results; (iii) income tax expense; (iv) share
      of results of associates; (v) net finance cost; (vi) non-recurring net finance cost; (vii) non-recurring items
      above EBIT (including non-recurring impairment); and (viii) 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 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.




ab-inbev.com                                                                                                                          12
          FINANCIAL POSITION

      Figure 14. Cash Flow Statement (million USD)
                                                                                                    HY17           HY18
      Operating activities
      Profit of the period                                                                          3 600         3 595
      Interest, taxes and non-cash items included in profit                                         6 379         6 752
      Cash flow from operating activities before changes in working capital
      and use of provisions                                                                         9 979        10 347

      Change in working capital                                                                    -2 352         -2 298
      Pension contributions and use of provisions                                                   - 288          - 282
      Interest and taxes (paid)/received                                                           -3 381         -4 583
      Dividends received                                                                               60             38
      Cash flow from operating activities                                                           4 018          3 222

      Investing activities
      Net capex                                                                                    -1 579         -1 972
      Net of tax proceeds from SAB transaction-related divestitures                                 5 130          - 430
      Acquisition and sale of subsidiaries, net of cash acquired/disposed of                        - 448            - 72
      Proceeds from the sale/(acquisition) of investment in short-term debt securities              2 788          1 299
      Other                                                                                           223            - 75
      Cash flow from investing activities                                                           6 114         -1 250

      Financing activities
      Dividends paid                                                                               -4 475         -5 132
      Net (payments on)/proceeds from borrowings                                                   -5 239          1 703
      Other (including purchase of non-controlling interest)                                        - 361         -1 210
      Cash flow from financing activities                                                         -10 075         -4 640

      Net increase/(decrease) in cash and cash equivalents                                             57         -2 668

      HY18 recorded a decrease in cash and cash equivalents of 2 668 million USD compared to an increase of
      57 million USD in HY17, with the following movements:

      -     Our cash flow from operating activities reached 3 222 million USD in the first half of 2018 compared to
            4 018 million USD in the first half of 2017. The decrease results mainly from the calendarization of tax
            payments in 2018 compared to 2017 and the payment in 2018 of taxes related to prior periods. Changes
            in working capital in the first half of 2018 and 2017 reflect higher working capital levels at the end of
            June than at year-end as a result of seasonality.
      -     Net cash outflow from investing activities was 1 250 million USD in the first half of 2018 as compared
            to a net cash inflow of 6 114 million USD in the first half of 2017. 2017 cash flow from investing activities
            mainly reflected the proceeds from the announced SAB-related divestitures completed during 2017,
            net of taxes paid in 2017 on prior year divestitures, which were not repeated in the first half of 2018.
      -     The cash outflow from our financing activities amounted to 4 640 million USD in the first half of 2018,
            as compared to a cash outflow of 10 075 million USD in the first half of 2017. During the first half of
            2017, we repaid 8 billion USD outstanding under the Term Loan B. This Term Loan was the remaining
            balance from the 75 billion USD senior facilities raised in October 2015 in connection with the
            combination with SAB.


ab-inbev.com                                                                                                          13
      Our net debt increased from 104.4 billion USD as of 31 December 2017 to 108.8 billon USD as of 30 June
      2018, consistent with prior increases in the first half of the year, given that the majority of our cash flow is
      generated in the second half of the year.

      Our net debt to normalized EBITDA ratio increased from 4.80x as of 31 December 2017 to 4.87x as of 30
      June 2018, as a result of our cash flow seasonality and adverse currency fluctuations in our EBITDA
      translation. The net debt to EBITDA calculation excludes the EBITDA from CCBA for the 12-month period
      ending 31 December 2017. Deleveraging to around 2x remains our commitment. We remain on track in our
      deleveraging path.

      We will continue to proactively manage our debt portfolio, of which 93% holds a fixed-interest rate, 42% is
      denominated in currencies other than USD, and maturities are well-distributed across the next several
      years.

      In addition to a very comfortable debt maturity profile and strong cash flow generation, as of 30 June 2018
      we had total liquidity of 16.9 billion USD, which consisted of 9.0 billion USD available under committed long-
      term credit facilities and 7.9 billion USD of cash, cash equivalents and short-term investments in debt
      securities less bank overdrafts. Although we may borrow such amounts to meet our liquidity needs, we
      principally rely on cash flows from operating activities to fund our continuing operations.

      Figure 15. Terms and debt repayment schedule as of 30 June 2018 (billion USD)

      Please refer to the company's website to view the graph in Figure 15.                                                                                                      75.9
                                                                                                            70.7




                                                                                           18.5   17.8
                                     10.3                      9.5   10.7
               7.4   6.0                       6.5

            1 year or less            1-2 years                2-3 years                    3-5 years    More than 5 years

                                            31 December 2017                30 June 2018




       RECENT EVENTS

      Argentina Peso devaluation

      In May 2018, the Argentinean peso underwent a severe devaluation. In 2017, the Argentinean operations
      represented 3.6% of our consolidated revenue and 4.1% of our consolidated normalized EBITDA. The
      Argentinean full year 2017 and half year 2018 results were translated at an average rate of 16.580667 and
      20.303664 Argentinean pesos per US dollar, respectively. We are assessing the requirements to apply IAS
      29 Financial Reporting in Hyperinflationary Economies in subsequent reporting periods.




ab-inbev.com                                                                                                                 14
       NOTES
      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 and discontinued operations. 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. On 30 March 2018 the 50:50 merger of AB InBev's and Anadolu
      Efes' existing Russia and Ukraine businesses has completed. The combined business is fully consolidated in the Anadolu Efes
      financial accounts. As a result of this transaction, AB InBev stopped consolidating its Russia and Ukraine businesses and accounts
      for its investment in AB InBev Efes under the equity method, as of that date. The results of the former SAB CEE business are presented
      as “discontinued operations result” until their disposal on 31 March 2017. Values in the figures and annexes may not add up, due to
      rounding.
      2Q18 and HY18 EPS is based upon a weighted average of 1,975 million shares compared to a weighted average of 1,970 million
      shares for 2Q17 and HY17.
      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 AB 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 AB InBev’s business
      combination with SAB 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 AB InBev, are subject
      to numerous risks and uncertainties about AB InBev and are dependent on many factors, some of which are outside of AB 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 SAB and the risks and uncertainties relating to AB InBev
      described under Item 3.D of AB InBev’s Annual Report on Form 20-F (“Form 20-F”) filed with the US Securities and Exchange
      Commission (“SEC”) on 19 March 2018. 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 AB InBev’s most recent Form 20-F and other reports furnished on Form 6-K, and any other documents that AB InBev has
      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 AB InBev will be realized or, even if substantially
      realized, that they will have the expected consequences to, or effects on, AB InBev or its business or operations. Except as required
      by law, AB InBev undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new
      information, future events or otherwise.


       NOTES

      The second quarter 2018 (2Q18) and half year (HY18) financial data set out in Figure 1 (except for the volume information), Figures
      3 to 5, 7, 9 to 11 and 13 of this press release have been extracted from the group’s unaudited condensed consolidated interim financial
      statements as of and for the six months ended 30 June 2018, 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 6, 8 and 12 have been extracted from
      the underlying accounting records as of and for the six months ended 30 June 2018 (except for the volume information).




ab-inbev.com                                                                                                                                    15
       CONFERENCE CALL AND WEBCAST

      Investor Conference call and Webcast on Wednesday, 26 July 2018:

      3.00pm Brussels / 2.00pm London / 9.00am New York

      Registration details

      Webcast (listen-only mode)
      https://bit.ly/2NpRkA0

      Conference call (with interactive Q&A)
      https://bit.ly/2uGfb9e

       ANHEUSER-BUSCH INBEV CONTACTS

             Media                                                           Investors

             Pablo Jimenez                                                   Lauren Abbott
             Tel: +1 212 573 9289                                            Tel: +1 212 573 9287
             E-mail: pablo.jimenez@gmodelo.com.mx                            E-mail: lauren.abbott@ab-inbev.com

             Aimee Baxter                                                    Mariusz Jamka
             Tel: +1 718 650 4003                                            Tel: +32 16 276 888
             E-mail: aimee.baxter@ab-inbev.com                               E-mail: mariusz.jamka@ab-inbev.com

             Ingvild Van Lysebetten
             Tel: +32 16 276 608
             E-mail: ingvild.vanlysebetten@ab-inbev.com




      26 July 2018
      JSE Sponsor: Deutsche Securities (SA) Proprietary Limited


      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 500 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®, Cristal®, Harbin®, Jupiler®, Michelob Ultra®, Modelo Especial®,
      Quilmes®, Victoria®, Sedrin®, 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 180,000 employees based in nearly 50 countries worldwide. For 2017, AB InBev’s reported
      revenue was 56.4 billion USD (excluding JVs and associates).




ab-inbev.com                                                                                                                           16
      Annex 1
      AB InBev Worldwide                                      Scope        Currency     Organic      2Q18    Organic
                                                      2Q17
                                                                         Translation    Growth               Growth
      Total volumes (thousand hls)                  157 679   -15 187               -     1 193    143 685      0.8%
                       of which AB InBev own beer   130 483    -3 939               -     1 088    127 632      0.9%
      Revenue                                        14 182     - 766            - 37        635    14 014      4.7%
      Cost of sales                                  -5 444       466              15      - 232    -5 196     -4.7%
      Gross profit                                    8 738     - 300            - 22        403     8 818      4.8%
      SG&A                                           -4 551       217              -5      - 154    -4 493     -3.6%
      Other operating income/(expenses)                 151       - 18             16         34       183     24.3%
      Normalized EBIT                                 4 338     - 101            - 12        284     4 509      6.7%
      Normalized EBITDA                               5 354     - 139            - 14        367     5 568      7.0%
      Normalized EBITDA margin                       37.7%                                          39.7%     85 bps

      North America                                           Scope        Currency     Organic      2Q18    Organic
                                                      2Q17
                                                                         Translation    Growth                Growth
      Total volumes (thousand hls)                   31 320        28              -      -1 536    29 813      -4.9%
      Revenue                                         4 271        11             26       - 127     4 181       -3.0%
      Cost of sales                                  -1 550         3             -8          15    -1 540        1.0%
      Gross profit                                    2 722        14             18       - 112     2 642       -4.1%
      SG&A                                           -1 155      - 19             -8           7    -1 175        0.6%
      Other operating income/(expenses)                   5         -              -          -4        1      -84.3%
      Normalized EBIT                                 1 571        -4              9       - 109     1 467      -7.0%
      Normalized EBITDA                               1 778        -4             10       - 124     1 660       -7.0%
      Normalized EBITDA margin                       41.6%                                          39.7%    -172 bps

      Latin America West                                      Scope        Currency     Organic      2Q18    Organic
                                                      2Q17
                                                                         Translation    Growth               Growth
      Total volumes (thousand hls)                   27 657        -1              -      1 292     28 948      4.7%
      Revenue                                         2 284         -              2        207      2 492      9.1%
      Cost of sales                                   - 641        -1              2        - 62     - 702     -9.7%
      Gross profit                                    1 643        -1              3        145      1 790      8.8%
      SG&A                                            - 726         2              -        - 10     - 734     -1.4%
      Other operating income/(expenses)                   9         -              -          10        20    105.7%
      Normalized EBIT                                   927         1              3        145      1 076     15.6%
      Normalized EBITDA                               1 077         1              3        159      1 240     14.7%
      Normalized EBITDA margin                       47.2%                                          49.7%    245 bps

      Latin America North                                     Scope        Currency     Organic      2Q18    Organic
                                                      2Q17
                                                                         Translation    Growth               Growth
      Total volumes (thousand hls)                   26 131      - 64               -       528     26 595      2.0%
      Revenue                                         2 031        -8           -174        207      2 056     10.2%
      Cost of sales                                   - 823         4              65       - 20     - 774     -2.5%
      Gross profit                                    1 207        -4           -109        187      1 281     15.5%
      SG&A                                            - 677          1             59       - 79     - 695    -11.7%
      Other operating income/(expenses)                  66         -              -7         13        72     20.4%
      Normalized EBIT                                   596        -3            - 57       121        658     20.5%
      Normalized EBITDA                                 798        -3             -73       130        851     16.3%
      Normalized EBITDA margin                       39.3%                                          41.4%    216 bps




ab-inbev.com                                                                                                      17
      Annex 1
      Latin America South                                     Scope        Currency     Organic      2Q18     Organic
                                                     2Q17
                                                                         Translation    Growth                Growth
      Total volumes (thousand hls)                   6 730           4              -       318      7 052       4.8%
      Revenue                                          650           1         - 142        164        673      25.5%
      Cost of sales                                  - 251          -5             45       - 35     - 245     -14.1%
      Gross profit                                     399         -4            - 97       129        427      32.8%
      SG&A                                           - 186         -7              39       - 36     - 190     -19.8%
      Other operating income/(expenses)                  2          -2             -3         11         8     519.5%
      Normalized EBIT                                  216       - 13            - 61       103        245      49.2%
      Normalized EBITDA                                267       - 13            - 72       116        299      44.3%
      Normalized EBITDA margin                      41.1%                                           44.4%     612 bps

      EMEA                                                    Scope        Currency     Organic      2Q18     Organic
                                                     2Q17
                                                                         Translation    Growth                Growth
      Total volumes (thousand hls)                  36 706    -15 053               -      - 312    21 340       -1.4%
                       of which AB InBev own beer   23 817     -3 839               -      - 231    19 747       -1.2%
      Revenue                                        2 805      - 800            126           45    2 176        2.3%
      Cost of sales                                 -1 279        482            - 44        - 47    - 888       -6.0%
      Gross profit                                   1 525      - 318              82          -2    1 288       -0.2%
      SG&A                                           - 921        249            - 44          -4    - 720       -0.6%
      Other operating income/(expenses)                 15           -              2          18       35     117.6%
      Normalized EBIT                                  619        - 68             40          12      602        2.1%
      Normalized EBITDA                                826      - 106              49          34      802        4.7%
      Normalized EBITDA margin                      29.4%                                           36.9%       85 bps

      Asia Pacific                                            Scope        Currency     Organic      2Q18     Organic
                                                     2Q17
                                                                         Translation    Growth                Growth
      Total volumes (thousand hls)                  28 885         52               -       868     29 804       3.0%
      Revenue                                        2 055         11            126        136      2 327       6.6%
      Cost of sales                                  - 823         -5            - 53       - 77     - 958      -9.4%
      Gross profit                                   1 232           6             73         58     1 369       4.7%
      SG&A                                           - 649         -4            - 41        -48     - 742      -7.4%
      Other operating income/(expenses)                 39          -               3          1        43       1.9%
      Normalized EBIT                                  622          2              35         11       669       1.8%
      Normalized EBITDA                                758          2              47         50       857       6.6%
      Normalized EBITDA margin                      36.9%                                           36.8%       0 bps

      Global Export and Holding                               Scope        Currency     Organic      2Q18     Organic
                                                     2Q17
      Companies                                                          Translation    Growth                Growth
      Total volumes (thousand hls)                     250      - 153               -         35       132      35.6%
      Revenue                                            87         19              -           3      109        3.8%
      Cost of sales                                    - 77       - 13             7          -4       - 88     -6.3%
      Gross profit                                       10         6              7          -1         22      -8.0%
      SG&A                                           - 237          -5           - 10         16     - 236        6.6%
      Other operating income/(expenses)                  15       - 16             21       - 15          5   -321.2%
      Normalized EBIT                                - 213        - 15             18           0    - 209        0.1%
      Normalized EBITDA                              - 150        - 15             21          3     - 141        2.0%




ab-inbev.com                                                                                                       18
      Annex 2
      AB InBev Worldwide                                      Scope        Currency      Organic       HY18    Organic
                                                      HY17
                                                                         Translation     Growth                Growth
      Total volumes (thousand hls)                  305 550   -27 946               -         911    278 515      0.3%
                       of which AB InBev own beer   248 212    -3 929               -      1 700     245 983      0.7%
      Revenue                                        27 104    -1 421            193       1 210      27 087      4.7%
      Cost of sales                                 -10 674       875            - 90       - 295    -10 184     -3.0%
      Gross profit                                   16 430      -545            103          915     16 903      5.8%
      SG&A                                           -8 779       360          - 113        - 259     -8 791     -3.1%
      Other operating income/(expenses)                 408       - 60               9        - 25       332     -7.0%
      Normalized EBIT                                 8 059     - 246              -1         631      8 444      8.0%
      Normalized EBITDA                              10 162     - 306              26         675     10 557      6.8%
      Normalized EBITDA margin                       37.5%                                            39.0%     78 bps

      North America                                           Scope        Currency      Organic       HY18    Organic
                                                      HY17
                                                                         Translation     Growth                 Growth
      Total volumes (thousand hls)                   57 156        61               -      -2 591     54 627      -4.5%
      Revenue                                         7 786        15              45       - 205      7 641       -2.6%
      Cost of sales                                  -2 887        12            - 15           47    -2 843       1.6%
      Gross profit                                    4 899        27              30       - 159      4 797       -3.2%
      SG&A                                           -2 174      - 33            - 17            4    -2 220       0.2%
      Other operating income/(expenses)                  20         -               -         - 18        1      -92.9%
      Normalized EBIT                                 2 744        -6              13       - 173      2 578      -6.3%
      Normalized EBITDA                               3 149        -5              15       - 189      2 970      -6.0%
      Normalized EBITDA margin                       40.4%                                            38.9%    -140 bps

      Latin America West                                      Scope        Currency      Organic       HY18    Organic
                                                      HY17
                                                                         Translation     Growth                Growth
      Total volumes (thousand hls)                   53 188      - 21               -      3 443      56 609      6.5%
      Revenue                                         4 259        -2              87         483      4 828     11.3%
      Cost of sales                                  -1 225        -5             -26       - 128     -1 384    -10.4%
      Gross profit                                    3 034        -7              62         355      3 444     11.7%
      SG&A                                           -1 373         7             -28         - 50    -1 444     -3.6%
      Other operating income/(expenses)                  34         -               -           -9        26    -25.3%
      Normalized EBIT                                 1 695         -              34         296      2 026     17.5%
      Normalized EBITDA                               1 998         -              40         311      2 349     15.6%
      Normalized EBITDA margin                       46.9%                                            48.7%    178 bps

      Latin America North                                     Scope        Currency      Organic       HY18    Organic
                                                      HY17
                                                                         Translation     Growth                Growth
      Total volumes (thousand hls)                   56 550     -125                -      -2 279     54 146     -4.0%
      Revenue                                         4 365      -16           - 221          206      4 335      4.7%
      Cost of sales                                  -1 821        7               83          82     -1 649      4.5%
      Gross profit                                    2 545       -9           - 138          288      2 686     11.3%
      SG&A                                           -1 410         3              74       - 101     -1 434     -7.2%
      Other operating income/(expenses)                 157        -               -9           8        157      5.3%
      Normalized EBIT                                 1 292       -6             - 73         195      1 409     15.2%
      Normalized EBITDA                               1 699       -6             - 93         201      1 801     11.9%
      Normalized EBITDA margin                       38.9%                                            41.5%    266 bps




ab-inbev.com                                                                                                        19
      Annex 2
      Latin America South                                    Scope        Currency      Organic     HY18    Organic
                                                     HY17
                                                                        Translation     Growth              Growth
      Total volumes (thousand hls)                  15 819        21              -         825    16 666      5.2%
      Revenue                                        1 523          3         - 274         377     1 629     24.9%
      Cost of sales                                  - 566         -6            86         - 96    - 582    -17.0%
      Gross profit                                     956         -2         - 188         280     1 046     29.5%
      SG&A                                           - 394        -7             72         - 93    - 422    -23.7%
      Other operating income/(expenses)                 3          -2            -2            6        4    240.4%
      Normalized EBIT                                  565      - 12          - 118         194       629     34.5%
      Normalized EBITDA                                666      - 12          - 136         216       735     32.7%
      Normalized EBITDA margin                      43.7%                                          45.1%    275 bps

      EMEA                                                   Scope        Currency      Organic     HY18    Organic
                                                     HY17
                                                                        Translation     Growth              Growth
      Total volumes (thousand hls)                  69 625   -27 795              -           59   41 889      0.1%
                       of which AB InBev own beer   42 602    -3 835              -           32   38 799      0.1%
      Revenue                                        5 145    -1 459            292         116     4 095       3.2%
      Cost of sales                                 -2 405       890          - 109         - 99   -1 723     -6.6%
      Gross profit                                   2 740     - 569            183           18    2 371       0.8%
      SG&A                                          -1 700       416          - 109         - 18   -1 411     -1.4%
      Other operating income/(expenses)                 42        -3              3            6       47     16.1%
      Normalized EBIT                                1 081     - 156             77            6    1 007      0.6%
      Normalized EBITDA                              1 489     - 219            103           39    1 413       3.1%
      Normalized EBITDA margin                      28.9%                                          34.5%      -2 bps

      Asia Pacific                                           Scope        Currency      Organic     HY18    Organic
                                                     HY17
                                                                        Translation     Growth              Growth
      Total volumes (thousand hls)                  52 568        66               -      1,467    54 101      2.8%
      Revenue                                        3 856       18             263         230     4 367      6.0%
      Cost of sales                                 -1 630       -9            -113         - 78   -1 829     -4.8%
      Gross profit                                   2 226       10             151         152     2 538      6.8%
      SG&A                                          -1 249       -9              -83        - 23   -1 364     -1.8%
      Other operating income/(expenses)                 81         -               6          -4       84     -4.7%
      Normalized EBIT                                1 059         1              74        125     1 258     11.8%
      Normalized EBITDA                              1 412         1              98        106     1 617      7.5%
      Normalized EBITDA margin                      36.6%                                          37.0%     54 bps

      Global Export and Holding                              Scope        Currency      Organic     HY18    Organic
                                                     HY17
      Companies                                                         Translation     Growth              Growth
      Total volumes (thousand hls)                     644     -153                -         -14      478     -2.9%
      Revenue                                          170       19                -          4       193       2.1%
      Cost of sales                                  - 140      - 14               4        - 22    - 173    -16.5%
      Gross profit                                      30         5               4        - 19       21    -53.2%
      SG&A                                           - 479       -18            - 22         22     - 497      4.5%
      Other operating income/(expenses)                 71      - 54              12        - 15       14    -66.8%
      Normalized EBIT                                - 378      - 67              -7        - 11    - 463     -2.6%
      Normalized EBITDA                              - 250      - 66                0       - 11    - 326      -3.4%




ab-inbev.com                                                                                                     20

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