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ANHEUSER-BUSCH INBEV SA/NV - Anheuser-Busch InBev reports Third Quarter 2018 and Nine Months 2018 Results

Release Date: 25/10/2018 07:34
Code(s): ANH     PDF:  
Wrap Text
Anheuser-Busch InBev reports Third Quarter 2018 and Nine Months 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” or the “Company”)

      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 3Q18 and 9M18 versus the same period of last
      year. For important notes and disclaimers please refer to page 15.




                  Anheuser-Busch InBev reports Third Quarter 2018 and
                              Nine Months 2018 Results
          HIGHLIGHTS

      -     Revenue: Revenue grew by 4.5% in the quarter, with revenue per hl growth of 4.2%. On a constant
            geographic basis, revenue per hl grew by 4.4%, driven by revenue management initiatives and
            continued strong premium brand performances. In 9M18, revenue grew by 4.6% with revenue per hl
            growth of 4.3%. On a constant geographic basis, revenue per hl grew by 4.6%.
      -     Volume: Total volumes grew 0.2% in the quarter, as own beer volumes grew by 0.5% and non-beer
            volumes were down by 2.4%. Good growth in own beer volumes achieved in Europe, Mexico and many
            African markets was partially offset by Brazil and Argentina. In 9M18, total volumes were up 0.3% with
            own beer volumes up 0.6% and non-beer volumes down 3.1%.
      -     Global Brands: Combined revenues of our global brands, Budweiser, Stella Artois and Corona,
            continued to grow this quarter, with revenues up 7.7% globally and 10.6% outside of their home
            markets. In 9M18, the combined revenues grew by 8.7% globally and by 13.3% outside of their home
            markets.
      -     Cost of Sales (CoS): CoS increased by 6.3% in 3Q18 and by 5.9% on a per hl basis. On a constant
            geographic basis, CoS per hl increased by 5.9%, driven primarily by an increase in year-over-year
            commodity prices and partially offset by synergy capture. In 9M18, CoS grew by 4.1% and by 3.8% on
            a per hl basis, while on a constant geographic basis CoS per hl increased by 4.2%.
      -     EBITDA: EBITDA grew by 7.5% in 3Q18 with margin expansion of 116 bps to 40.3% as a result of
            top-line growth and aided by synergies and cost savings, partially offset by increased commodity prices.
            In 9M18, EBITDA grew by 7.1% and EBITDA margin expanded by 92 bps to 39.4%.
      -     Net finance results: Net finance costs (excluding non-recurring net finance costs) were 1 787 million
            USD in 3Q18 as compared to 1 135 million USD in 3Q17. The increase was predominantly due to a
            mark-to-market loss of 616 million USD in 3Q18 linked to the hedging of our share-based payment
            programs, compared to a gain of 240 million USD in 3Q17, resulting in a swing of 856 million USD. Net
            finance costs were 4 603 million USD in 9M18 as compared to 4 255 million USD in 9M17.
      -     Income taxes: Normalized effective tax rate increased to 25.3% in 3Q18 from 16.7% in 3Q17 and
            increased to 26.0% in 9M18 from 19.1% in 9M17.




ab-inbev.com                                                                                                                                            1
      -   Profit: Normalized profit attributable to equity holders of AB InBev was 1 614 million USD in 3Q18 as
          compared to 2 582 million USD in 3Q17 and was 5 219 million USD in 9M18 compared to 5 913 million
          USD in 9M17. Normalized profit was negatively impacted during the quarter by mark-to-market losses
          linked to the hedging of our share-based payment programs. Excluding the impact of the mark-to-
          market losses, normalized profit attributable to equity holders of AB InBev was 2 230 million USD in
          3Q18 as compared to 2 342 million USD in 3Q17 and was 6 093 million USD in 9M18 as compared to
          5 808 million USD in 9M17.
      -   Earnings per share (EPS): Normalized EPS decreased from 1.31 USD in 3Q17 to 0.82 USD in 3Q18
          and from 3.00 USD in 9M17 to 2.64 USD in 9M18. Normalized earnings per share excluding mark-to-
          market losses linked to the hedging of our share-based payment programs and the impact of
          hyperinflation (underlying EPS) decreased from 1.19 USD in 3Q17 to 1.16 USD in 3Q18 and increased
          from 2.95 USD in 9M17 to 3.11 USD in 9M18.
      -   Interim Dividend: The AB InBev board has approved an interim dividend of 0.80 EUR per share for
          the fiscal year 2018. Please refer to our management comments on page 3 for more details. Information
          regarding the ex-coupon, record and payment dates are shown on page 14.
      -   Hyperinflation: In accordance with IFRS rules, we are required to apply hyperinflation accounting in
          Argentina as of 1 January 2018. Additional details can be found on page 13.
      -   Combination with SAB: The business integration is progressing well, with synergies and cost savings
          of 229 million USD captured during 3Q18 and 588 million USD captured during 9M18.


      Figure 1. Consolidated performance (million USD)
                                                                                 3Q17          3Q18          Organic
                                                                                                              growth
      Total Volumes (thousand hls)                                                161 045       146 187          0.2%
                                                           AB InBev own beer      132 725       129 628          0.5%
                                                                      Non-beer     27 085        15 224         -2.4%
                                                          Third party products      1 234         1 335          9.3%
      Revenue                                                                      14 740        13 282          4.5%
      Gross profit                                                                  9 194         8 299          3.5%
      Gross margin                                                                 62.4%         62.5%        -62 bps
      Normalized EBITDA                                                             5 733         5 358          7.5%
      Normalized EBITDA margin                                                     38.9%         40.3%       116 bps
      Normalized EBIT                                                               4 681         4 308          7.1%
      Normalized EBIT margin                                                       31.8%         32.4%         82 bps

      Profit attributable to equity holders of AB InBev                             2 055           956
      Normalized profit attributable to equity holders of AB InBev                  2 582         1 614

      Earnings per share (USD)                                                          1.04          0.48
      Normalized earnings per share (USD)                                               1.31          0.82




ab-inbev.com                                                                                                       2
                                                                                   9M17                 9M18             Organic
                                                                                                                          growth
      Total Volumes (thousand hls)                                                   466 595             424 703             0.3%
                                                           AB InBev own beer         380 938             375 612             0.6%
                                                                      Non-beer        82 217              45 298            -3.1%
                                                          Third party products         3 440               3 793           11.0%
      Revenue                                                                         41 844              40 369             4.6%
      Gross profit                                                                    25 624              25 203             4.9%
      Gross margin                                                                    61.2%               62.4%            18 bps
      Normalized EBITDA                                                               15 895              15 915             7.1%
      Normalized EBITDA margin                                                        38.0%               39.4%            92 bps
      Normalized EBIT                                                                 12 741              12 752             7.7%
      Normalized EBIT margin                                                          30.4%               31.6%            92 bps

      Profit attributable to equity holders of AB InBev                                4 963               3 911
      Normalized profit attributable to equity holders of AB InBev                     5 913               5 219

      Earnings per share (USD)                                                            2.52                 1.98
      Normalized earnings per share (USD)                                                 3.00                 2.64




      Figure 2. Volumes (thousand hls)
                                                            3Q17       Scope       Organic       3Q18            Organic growth
                                                                                   growth                         Total Own beer
                                                                                                                Volume      volume
      North America                                           30 109          15     - 139        29 985         -0.5%       -0.5%
      Latin America West                                      28 012          -4       454        28 462          1.6%        1.3%
      Latin America North                                     27 943        - 52     - 687        27 204         -2.5%       -2.0%
      Latin America South                                      7 811          22     - 389         7 444         -5.1%       -5.2%
      EMEA                                                    35 828    -14 888        862        21 803          4.1%        4.7%
      Asia Pacific                                            31 037           7       246        31 290          0.8%        0.8%
      Global Export and Holding Companies                        304      - 305          1             -             -           -
      AB InBev Worldwide                                     161 045    -15 205        348       146 187          0.2%        0.5%
                                                               9M17      Scope     Organic         9M18          Organic growth
                                                                                   growth                         Total Own beer
                                                                                                                Volume      volume
      North America                                           87 265          76    -2 730        84 612         -3.1%       -3.2%
      Latin America West                                      81 200        - 25     3 897        85 071          4.8%        5.6%
      Latin America North                                     84 493      - 177     -2 966        81 350         -3.5%       -2.2%
      Latin America South                                     23 630          43       436        24 110          1.9%        2.4%
      EMEA                                                   105 454    -42 683        922        63 692          1.5%        1.6%
      Asia Pacific                                            83 605          73     1 713        85 391          2.0%        1.8%
      Global Export and Holding Companies                        948      - 458        - 13         478          -2.7%       -2.7%
      AB InBev Worldwide                                     466 595    -43 151      1 259       424 703          0.3%        0.6%


       MANAGEMENT COMMENTS

      Our capital allocation priorities remain unchanged. The first priority for the use of cash is to invest behind
      our brands and to take full advantage of the organic growth opportunities in our business. Second,
      deleveraging to around a 2x net debt to EBITDA ratio remains our commitment, and we will prioritize debt
      repayment in order to meet this objective. Third, with respect to M&A, we will continue to consider suitable
      opportunities when and if they arise, subject to our strict financial discipline and deleveraging commitment.
      Our fourth priority is returning excess cash to shareholders in the form of dividends and share buybacks.




ab-inbev.com                                                                                                                     3
      Consistent with these long-standing capital allocation priorities and in light of recent currency volatility, we
      are rebasing our dividend payout to accelerate deleveraging toward our optimal capital structure of around
      a 2x net debt to EBITDA ratio while continuing to prioritize investment in organic growth opportunities and
      creating greater financial flexibility.

      The AB InBev Board has approved an interim dividend of 0.80 EUR per share for the fiscal year 2018. In
      addition, the AB InBev Board intends to propose a final dividend of 1.00 EUR per share for the fiscal year
      2018, to be paid in May 2019, subject to the annual shareholders’ meeting approval, which would result in
      a total dividend payment for the fiscal year 2018 of 1.80 EUR per share.

      Following this rebase of 50%, we expect dividends to be a growing flow over time in line with the
      non-cyclical nature of our business. However, growth in the short term is expected to be modest given the
      importance of deleveraging.

      On the operational side, our business delivered revenue growth of 4.5% driven by beer volume growth of
      0.5% and enhanced by our revenue management and premiumization initiatives across the globe. A diverse
      group of markets contributed to this growth, including China, Mexico, Western Europe and many of our
      African markets. At the same time, we faced macroeconomic challenges in relevant markets such as Brazil,
      Argentina and South Africa.

      We continue to employ the category expansion framework and market maturity model across our footprint,
      which allows us to develop differentiated portfolios and strategies to meet the diverse needs of consumers.
      These strategic frameworks enable us to share best practices across our markets to ensure that successes
      are amplified throughout our business.

      Premiumization remains a growing trend across markets of varying levels of maturity. Our robust portfolio
      of brands positions us to capitalize on this growth especially through our High End Company, which
      continues to grow revenue by double-digits, and our global brand portfolio.

      Our global brands delivered another strong quarter, with revenue growth of 7.7% globally and of 10.6%
      outside their home markets, where they command a price premium. Budweiser grew by 6.4% globally and
      by 9.3% outside of the US as it continued to reap the benefits of our biggest campaign ever as the global
      sponsor of the 2018 FIFA World Cup 2018 RussiaTM. Stella Artois grew revenues by 5.7% globally with
      good contributions from Brazil, Canada and South Korea. Corona continued to lead the portfolio with
      revenues up by 10.6% globally and by 18.0% outside of Mexico driven by China, Colombia and the UK as
      well as a solid performance in its home country of Mexico.

      Category expansion is also enhanced through affordability initiatives, as it is crucial to have a portfolio of
      affordable options to engage our consumers at accessible price points in many of our low and middle
      maturity markets. This quarter, we launched a new brand called “Nossa” in the northeast region of Brazil,
      brewed with local cassava in the State of Pernambuco. This initiative was launched to drive our affordability
      platform and is a prime example of leveraging the intellectual synergies from our combination with SAB.
      We are also seeing strong penetration of our 1L returnable glass bottles in South Africa, a pack format
      launched last year that offers consumers a lower per unit cost and has been a successful commercial
      initiative for many years in our Latin American markets. Affordability initiatives such as these support beer
      category growth and enable us to offer consumers a variety of options which can be particularly relevant in
      challenging macroeconomic environments while preserving or even enhancing our margins.

      EBITDA grew by 7.5% in 3Q18 with margin expansion of 116 bps to 40.3%. This result was driven by
      top-line growth, strong cost discipline and the phasing of sales and marketing investments, though partially
      offset by the year-over-year increase in commodity prices. Synergy capture of 229 million USD from the
      combination with SAB contributed to EBITDA growth and margin expansion as well.




ab-inbev.com                                                                                                        4
      Earlier this year, we announced our 2025 Sustainability Goals. While we have a strong track record in
      sustainability, we know that today’s greatest challenges require collaborative efforts. That is why in August
      we launched our 100+ Accelerator and issued ten challenges in water stewardship, farmer productivity,
      product upcycling, responsible sourcing, green logistics and more. We received over 600 submissions from
      around the globe and selected 21 start-ups to join the program, which began this month with a three-day
      workshop in New York City. In 2019, the start-ups will pitch their solutions in front of our top leaders and an
      external audience for potential funding. The 100+ Accelerator will be an annual program. For more
      information please visit www.100accelerator.com.

      We have a long history of operating in emerging markets and recognize that they are inherently volatile.
      Our ownership culture requires us to take a long-term view of our business and weather such volatility to
      pursue the growth opportunities that are also characteristic of these markets. We believe we have the right
      people, portfolio and strategy in place to deliver long-term, sustainable growth and expand the global beer
      category, and we remain confident that we will continue to accelerate our EBITDA organic growth rate in
      the balance of the year.

      United States

      In the US, our revenues grew by 1.5% in 3Q18 and declined by 1.4% in 9M18. We saw continued growth
      in revenue per hl of 2.0% in both the quarter and year-to-date, driven by revenue management initiatives
      and favorable brand mix. We estimate that industry sales-to-retailers (STRs) declined by 0.5% in 3Q18,
      positively impacted by the timing of the Fourth of July holiday. Our STRs decreased by 1.5% in 3Q18, our
      best comparative performance in the past eight quarters, while our sales-to-wholesalers (STWs), which
      drive our financials, decreased by 0.5% as we started to see our STWs catching up to STRs this quarter.
      In 9M18, our STRs were down by 2.6% and our STWs were down by 3.4%, and we continue to expect
      STRs and STWs to converge on a full year basis.

      We continue to see the progress of our commercial strategy, with an estimated decline in total market share
      of 50 bps in 3Q18 and a decline of 45 bps in 9M18, which represents an improvement in our market share
      loss trend of 30 bps versus last year.

      Our Above Premium portfolio performed well again this quarter, gaining an estimated 90 bps of share. This
      result was primarily driven by the continued growth of Michelob Ultra and the successful launch of Michelob
      Ultra Pure Gold earlier this year, which kept the brand family as the top share gainer in the US for the
      fourteenth consecutive quarter. Our other Above Premium innovations are also outperforming the market,
      with the Budweiser Reserve Series and Bud Light Orange among the top 15 share gainers in the US this
      quarter according to IRI.

      Within their segments, Budweiser and Bud Light are performing better than prior year trends. However, the
      Premium and Premium Light segments remain under pressure, as consumers trade up to higher price tiers,
      contributing to Budweiser and Bud Light losing 35 bps and 90 bps of estimated total market share,
      respectively, in 3Q18. The launches of our Above Premium innovations, specifically the Budweiser Reserve
      series and Bud Light Orange, leverage the strong brand equity of Budweiser and Bud Light and are in line
      with this premiumization trend, are lifting the overall performance of both brand families.

      Our EBITDA declined by 1.9% in 3Q18, with a positive top-line performance more than offset by commodity
      headwinds as well as higher SG&A due to the timing of variable compensation accruals. This led to an
      EBITDA margin contraction of 142 bps to 40.5% in the quarter. In 9M18, EBITDA decreased by 4.8% with
      margin contraction of 144 bps to 39.9%.




ab-inbev.com                                                                                                       5
      Mexico

      Mexico delivered another solid quarter with high single digit revenue growth driven by mid-single digit
      revenue per hl growth, in line with inflation, and low-single digit volume growth considering the historical
      slowdown in public investment following the elections. In 9M18, we delivered double-digit revenue growth
      with high single digit volume growth and mid-single digit revenue per hl growth.

      Our full brand portfolio continued to perform well, supported by strong trade execution, product availability
      and our balanced revenue management strategy. The category expansion framework has enabled us to
      sharpen the positioning of our brands, especially in the core segment through increased differentiation of
      our classic lager and easy drinking portfolio. This quarter Bud Light launched a bold and impactful campaign
      aimed at discouraging drinking and driving, which led to a surge of earned media content and helped to
      spread the brand’s message. We also continue to see our premium portfolio contribute meaningfully to
      revenue growth, led by Michelob Ultra and Stella Artois which both grew by double-digits.

      In 3Q18, healthy top-line growth was supported by strong cost efficiencies and capacity enhancements
      which decreased our logistics costs, driving EBITDA growth of 18.9% with margin expansion of 444 bps to
      47.3%. In 9M18, EBITDA grew by 17.3% with margin expansion of 212 bps to 44.8%.
      Colombia

      Our Colombian business delivered good results once again this quarter with revenue growth of 5.2%. Beer
      volumes grew 2.3%, though non-beer volumes declined by 1.4%, resulting in total volume growth of 1.8%
      and revenue per hl growth of 3.4%. Year-to-date revenue grew by 7.9% with volume growth of 3.3% (beer
      up 3.7%, non-beer up 0.1%) and revenue per hl growth of 4.5%.

      In Colombia, we are focused on growing the beer category through premiumization initiatives coupled with
      elevating and differentiating the core portfolio. In the premium space, our global brand portfolio continues
      to lead the way, with volumes almost doubling so far this year and Budweiser performing especially well.
      Our local brands also contributed meaningfully to our results this quarter, with Aguila volumes up by more
      than 50% following a successful 2018 FIFA World Cup RussiaTM activation that continued throughout the
      summer. We also launched a new and improved visual brand identity for Poker, our largest brand. The beer
      category continues to expand, as we gained an estimated 80 bps of share of total alcohol in the quarter.

      EBITDA grew by 28.6% this quarter with margin expansion of more than 1 000 bps. This result was driven
      by revenue growth and enhanced by continued synergy capture, the phasing of sales and marketing
      expenses and higher other operating income resulting from the favorable settlement of a legal claim. In
      9M18, EBITDA grew by 19.4% with margin expansion of more than 500 bps.


      Brazil

      Revenue grew by 2.1% in 3Q18, though volumes declined by 3.3% with beer volumes down 3.1% and
      non-beer volumes down 3.9%. This follows a price increase for beer within the quarter, which was similar
      to last year’s timing. As a result, revenue per hl grew by 5.6%. The beer industry declined by approximately
      2.5% as the consumer environment in Brazil remains challenging given marginal growth in disposable
      income and negative consumer confidence. For 9M18, revenue grew by 2.9% with volume declines of 4.6%
      (beer declined 3.4%, non-beer declined 8.2%) and revenue per hl growth of 7.9%.

      Despite the macroeconomic volatility, we remain focused on what we can impact and influence in our
      business and saw many positive developments in our portfolio this quarter. Premiumization remains a
      growing trend in Brazil and we saw healthy growth across our premium portfolio, contributing positively to
      brand mix. Our global brand portfolio accelerated its growth this quarter, with all three brands growing by




ab-inbev.com                                                                                                     6
      over 40% with Corona leading the group, up by more than 75%. Our core plus portfolio almost doubled its
      volume in the quarter as well, and was enhanced by our recent line extension, Skol Hops.

      On the other end of the price spectrum, we are applying the learnings from the category expansion
      framework to drive our affordability initiatives in Brazil by replicating best practices from other markets,
      especially in less mature regions of the country. This quarter we launched a new brand called “Nossa” in
      the State of Pernambuco, brewed with cassava produced by local farmers. “Nossa” enables the
      development of the local economy and enhances the culture of the State of Pernambuco, all while delivering
      healthy margins at an affordable price point to the consumer.

      EBITDA grew by 13.8% in 3Q18 with margin expansion of 446 bps to 43.6%, driven by top-line growth and
      enhanced by the phasing of sales and marketing expenses as well as significantly lower CoS for our
      non-beer business. This was mainly driven by cost phasing which is expected to normalize on a full year
      basis and helped by lower sugar prices. In 9M18, EBITDA was up 11.5% with margin expansion of 327 bps
      to 42.1%.

      South Africa

      In South Africa, the VAT increase as of 1 April 2018 and numerous petrol price increases continued to have
      a negative impact on consumer disposable income. Our revenue declined by mid-single digits, with both
      volumes and revenue per hl down by low single digits. The volume decline was primarily caused by
      out-of-stocks due to supply constraints, which we expect to normalize heading into the 4Q high season.
      Additionally, the decrease in revenue per hl was driven primarily by a short-term mix impact. In 9M18,
      revenue decreased by low single digits with volume down by high single digits.

      In line with our affordability strategy, the 1L returnable glass bottle has significantly increased its penetration
      over the course of the year. Carling Black Label, our largest core brand, continues to benefit from its award-
      winning campaign #NoExcuse and delivered high single digit volume growth. Castle Lite was
      disproportionately impacted by the out-of-stock issue. Our premium and super premium portfolio continues
      to grow by triple-digits, now benefitting from the launch of the Budweiser 660ml pack and a very strong
      2018 FIFA World Cup RussiaTM execution. Our market share in the premium and super premium segment
      has further increased in 3Q18, leading to an estimated market share of 24% in August.

      A soft top-line performance coupled with a negative mix impact and supply constraints resulted in an
      EBITDA decline of 11.9% with margin contraction of 418 bps in 3Q18. In 9M18, EBITDA declined by low
      single digits with slight margin contraction.

      China

      Our 3Q18 volume grew 1.0% despite an overall negative industry trend, resulting in market share gains,
      and our revenue grew by 7.4% with revenue per hl growth of 6.4%. In 9M18, revenue grew 6.3% with
      revenue per hl up 4.4% and volume growth of 1.8%.

      Our strong growth momentum since the beginning of the year continued in the third quarter, fueled by
      successful brand activations over the summer and ongoing premiumization. Budweiser performed very well
      this quarter, supported by a more balanced growth profile benefiting from increased penetration in more
      regions of China. Our super premium portfolio continues to deliver strong growth off a meaningful base, led
      by Corona. Our business in the e-commerce channel continues to be a relevant contributor to growth as
      this channel is of increasing importance to the Chinese consumer, especially for premium products.

      Our EBITDA continues to benefit from favorable top-line growth and brand mix, on top of strong cost
      discipline and optimized operational processes. In 3Q18, we delivered the strongest results so far this year




ab-inbev.com                                                                                                           7
      with EBITDA growth of 22.8% and strong margin expansion of 415 bps to 33.1%. In 9M18, EBITDA grew
      by 13.0% with margin expansion of 204 bps to 34.7%.


      Highlights from our other markets

      Canada returned to top-line growth this quarter as a weaker industry was offset by improved share
      performance and continued revenue per hl growth. Our trade-up strategy is delivering strong results, with
      the High End Company growing top-line ahead of the industry, led by double-digit volume growth of our
      local craft brands and share gains of Corona and Stella Artois. Our focus core brands also continue to
      deliver solid results, with both Bud Light and Michelob Ultra among the fastest growing brands in Canada.

      In Peru, we delivered low single digit revenue growth despite a challenging consumer environment that
      resulted in beer volume declines in the mid-single digits. The healthy revenue result was driven by positive
      brand mix, led by our global brand portfolio, and revenue management initiatives. Our business in Ecuador
      delivered revenue growth in the mid-single digits with volume growth in the low single digits. We achieved
      an estimated share of total alcohol gains of 90 bps, driven by successful initiatives across the price ladder
      including affordability initiatives and increased penetration of our premium brands.

      In Latin America South, volumes declined by mid-single digits, primarily due to consumption contraction
      in Argentina amidst a challenging macroeconomic environment. Despite the difficult environment, the two
      largest core brands in Argentina, Quilmes Clásica and Brahma, are growing volumes in 9M18 as a result
      of the successful repositioning of the brands driven by the category expansion framework. Given the
      macroeconomic pressure on consumers, we have also launched affordable packaging initiatives for both
      of these brands which are improving penetration. Among our global brands, Stella Artois and Corona
      exhibited strong volume growth in 9M18. We are excited to have Budweiser back in our portfolio in
      Argentina and are focused on scaling up the brand. In accordance with IFRS rules, we are required to apply
      hyperinflation accounting in Argentina as of 1 January 2018. Additional details can be found on page 13.

      Within EMEA, Western Europe grew revenue by mid-single digits, with double-digit growth of our global
      brands. Budweiser led the way, as it benefitted from 2018 FIFA World Cup RussiaTM activations. Corona’s
      growth was supported by Casa Corona in France and Spain, as well as the Corona Sunset Festivals in the
      UK and Italy. Our no- and low-alcohol beer (NABLAB) portfolio continues to grow by double-digits with a
      significant contribution from innovations, including Jupiler Pure Blonde in Belgium. In Africa excluding
      South Africa, volumes were lower in Tanzania and Uganda, but this was more than offset by continued
      double-digit volume growth in Zambia and Mozambique. In Nigeria, our volumes grew by double-digits as
      growth has further accelerated after the opening of our fourth brewery, the largest in Africa outside of South
      Africa. Budweiser saw very strong growth in the market following its launch during the 2018 FIFA World
      Cup RussiaTM and is poised well to participate in the country’s increasing premiumization trend.

      In Australia, revenue grew by low single digits, despite lower volumes amidst a broader industry decline.
      In line with our premiumization strategy, growth is driven by our craft and global brand portfolios, especially
      Corona and Stella Artois, which continues to benefit from the Buy A Lady A Drink campaign as a part of
      our wider sustainability effort to increase water access in emerging markets. We launched Carlton Zero,
      our new ‘All Flavour, No Alcohol’ beer, to address a growing consumer trend toward moderation and choice,
      which received outsized media coverage across the country. Great Northern remains a key growth engine,
      posting double-digit volume growth once again.




ab-inbev.com                                                                                                       8
      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 2 174 million USD was captured between 1 April 2016 and 30 September
              2018. The balance of roughly 500 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 expect dividends to be a growing flow over time starting from the rebased level,
              although growth in the short term is expected to be modest given the importance of deleveraging.




ab-inbev.com                                                                                                    9
         CONSOLIDATED INCOME STATEMENT

      Figure 3. Consolidated income statement (million USD)
                                                                       3Q17       3Q18    Organic
                                                                                          growth
      Revenue                                                         14 740    13 282       4.5%
      Cost of sales                                                   -5 546    -4 982      -6.3%
      Gross profit                                                     9 194     8 299       3.5%
      SG&A                                                            -4 652    -4 173      -1.9%
      Other operating income/(expenses)                                  139       181     83.2%
      Normalized profit from operations (normalized EBIT)              4 681     4 308       7.1%
      Non-recurring items above EBIT                                   - 173       - 55
      Net finance income/(cost)                                       -1 135    -1 787
      Non-recurring net finance income/(cost)                            177     - 595
      Share of results of associates                                      88         32
      Income tax expense                                              -1 494     - 650
      Profit from continuing operations                                2 144     1 254
      Discontinued operations results                                      -          -
      Profit                                                           2 144     1 254
      Profit attributable to non-controlling interest                     89       299
      Profit attributable to equity holders of AB InBev                2 055       956

      Normalized EBITDA                                                5 733     5 358      7.5%
      Normalized profit attributable to equity holders of AB InBev     2 582     1 614
                                                                       9M17      9M18     Organic
                                                                                          growth
      Revenue                                                         41 844     40 369      4.6%
      Cost of sales                                                  -16 220    -15 166     -4.1%
      Gross profit                                                    25 624     25 203      4.9%
      SG&A                                                           -13 431    -12 964     -2.7%
      Other operating income/(expenses)                                  547        514    15.9%
      Normalized profit from operations (normalized EBIT)             12 741     12 752      7.7%
      Non-recurring items above EBIT                                   - 460      - 251
      Net finance income/(cost)                                       -4 255     -4 603
      Non-recurring net finance income/(cost)                            - 34    -1 089
      Share of results of associates                                     213        125
      Income tax expense                                              -2 487     -2 085
      Profit from continuing operations                                5 716      4 850
      Discontinued operations results                                     28          -
      Profit                                                           5 745      4 850
      Profit attributable to non-controlling interest                    782        939
      Profit attributable to equity holders of AB InBev                4 963      3 911

      Normalized EBITDA                                              15 895     15 915      7.1%
      Normalized profit attributable to equity holders of AB InBev    5 913      5 219




ab-inbev.com                                                                                   10
      Revenue

      Consolidated revenue grew by 4.5% in 3Q18, driven by revenue management initiatives and continued
      strong premium brand performance. Revenue per hl grew by 4.2% and on a constant geographic basis by
      4.4%. In 9M18, revenue grew by 4.6%, revenue per hl grew by 4.3% and revenue per hl on a constant
      geographic basis grew by 4.6%.


      Cost of Sales (CoS)

      CoS increased by 6.3% in 3Q18 and by 5.9% on a per hl basis. On a constant geographic basis, CoS per
      hl increased by 5.9% driven by an increase in commodity prices and partially offset by synergy delivery. In
      9M18, total CoS increased by 4.1%, by 3.8% on a per hl basis, and by 4.2% per hl on a constant geographic
      basis.


      Selling, General and Administrative Costs (SG&A)

      SG&A grew by 1.9% in 3Q18, and 2.7% in 9M18 with synergy capture and good cost control partially offset
      by increased sales and marketing investments associated with the 2018 FIFA World Cup Russia TM in the
      first half of 2018 and cost phasing.


      Other operating income/(expenses)

      Other operating income in 3Q18 increased organically by 83.2%, benefitting from government grants
      received in China and the favorable settlement of a legal claim in Colombia. In 9M18, it grew by 15.9%.
      Non-recurring items above EBIT

      Figure 4. Non-recurring items above EBIT (million USD)
                                                                        3Q17        3Q18        9M17        9M18
      Restructuring                                                     - 119        - 53       - 407       - 190
      Acquisition costs / Business combinations                           - 18       - 14         - 43        - 52
      Business and asset disposal (including impairment losses)           - 36         12         - 10          -9
      Impact on profit from operations                                  - 173        - 55       - 460       - 251


      Normalized profit from operations in 3Q18 excludes negative non-recurring items of 55 million USD,
      primarily related to the one-off restructuring costs linked to the SAB integration.

      Figure 5. Net finance income/(cost) (million USD)
                                                                        3Q17        3Q18        9M17        9M18
      Net interest expense                                              - 999       - 923      -3 056      -2 878
      Net interest on net defined benefit liabilities                     - 27        - 23        - 82        - 71
      Accretion expense                                                 - 149         - 81      - 452       - 258
      Mark-to-market                                                      240       - 616         105       - 874
      Other financial results                                           - 200       - 143       - 770       - 521
      Net finance income/(cost)                                        -1 135      -1 787      -4 255      -4 603


      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.




ab-inbev.com                                                                                                  11
      Figure 6. Share-based payment hedge
                                                                                     3Q17    3Q18     9M17     9M18
      Share price at the start of the period (Euro)                                  96.71   86.50   100.55    93.13
      Share price at the end of the period (Euro)                                   101.30   75.22   101.30    75.22
      Number of equity derivative instruments at the end of the period (millions)     46.9    46.9     46.9     46.9



      Non-recurring net finance income/(cost)

      Figure 7. Non-recurring net finance income/(cost) (million USD)
                                                                                     3Q17    3Q18     9M17      9M18
      Mark-to-market (Grupo Modelo combination)                                       113    - 301        42    - 428
      Early termination fee of Bonds                                                     -       -         -    - 244
      Other mark-to-market                                                            109    - 294        40    - 417
      Other                                                                           - 45       -    - 116         -
      Non-recurring net finance income/(cost)                                         177    - 595      - 34   -1 089


      Non-recurring net finance costs in 3Q18 include mark-to-market losses on derivative instruments entered
      into to hedge the shares issued in relation to the Grupo Modelo and SAB combinations.

      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
                                                                                     3Q17    3Q18     9M17     9M18
      Share price at the start of the period (Euro)                                  96.71   86.50   100.55    93.13
      Share price at the end of the period (Euro)                                   101.30   75.22   101.30    75.22
      Number of equity derivative instruments at the end of the period (millions)     45.5    45.5     45.5     45.5




      Income tax expense

      Figure 9. Income tax expense (million USD)
                                                                                     3Q17     3Q18    9M17      9M18
      Income tax expense                                                             1 494     650    2 487     2 085
      Effective tax rate                                                            42.1%    34.7%   31.1%     30.6%
      Normalized effective tax rate                                                 16.7%    25.3%   19.1%     26.0%
      Normalized effective tax rate before MTM                                      17.9%    20.3%   19.4%     23.5%


      Our normalized effective tax rate increased to 25.3% in 3Q18 from 16.7% in 3Q17 and increased to 26.0%
      in 9M18 from 19.1% in 9M17. This was mainly due to non-deductible mark-to-market losses and changes
      in tax legislation in some of the countries in which we operate. Excluding mark-to-market losses, 3Q18
      normalized effective tax rate was 20.3%.




ab-inbev.com                                                                                                      12
      Normalized Profit and Profit

      Figure 10. Normalized Profit attribution to equity holders of AB InBev (million USD)
                                                                                             3Q17    3Q18    9M17     9M18
      Profit attributable to equity holders of AB InBev                                      2 055     956   4 963    3 911
      Non-recurring items, before taxes                                                        173      55     460      251
      Non-recurring finance (income)/cost, before taxes                                      - 177     595       34   1 089
      Non-recurring taxes                                                                      902      13     866      - 32
      Non-recurring non-controlling interest                                                 - 372      -4   - 381         -
      Profit from discontinued operations                                                        -       -     - 28        -
      Normalized profit attributable to equity holders of AB InBev                           2 582   1 614   5 913    5 219
      Normalized profit attributable to equity holders of AB InBev excluding
      mark-to-market                                                                         2 342   2 230   5 808    6 093



      Normalized and Basic EPS

      Figure 11. Earnings per share (USD)
                                                                                             3Q17    3Q18    9M17     9M18
      Basic earnings per share                                                                1.04    0.48    2.52     1.98
      Non-recurring items, before taxes                                                       0.09    0.03    0.23     0.13
      Non-recurring finance (income)/cost, before taxes                                      -0.09    0.30    0.02     0.55
      Non-recurring taxes                                                                     0.46    0.01    0.44    -0.02
      Non-recurring non-controlling interest                                                 -0.19       -   -0.19        -
      Profit from discontinued operations                                                        -       -   -0.01        -
      Normalized earnings per share                                                           1.31    0.82    3.00     2.64


      Figure 12. Key components - Normalized Earnings per share in USD
                                                                                             3Q17    3Q18    9M17     9M18
      Normalized EBIT before hyperinflation                                                   2.38    2.29    6.47     6.58
      Hyperinflation impacts in normalized EBIT                                                  -   -0.13       -    -0.13
      Normalized EBIT                                                                         2.38    2.17    6.47     6.46
      Mark-to-market (share-based payment programs)                                           0.12   -0.31    0.05    -0.44
      Net finance cost                                                                       -0.69   -0.59   -2.21    -1.89
      Income tax expense                                                                     -0.30   -0.32   -0.82    -1.07
      Associates & non-controlling interest                                                  -0.19   -0.13   -0.48    -0.41
      Normalized EPS                                                                          1.31    0.82    3.00     2.64
      Mark-to-market (share-based payment programs)                                          -0.12    0.31   -0.05     0.44
      Hyperinflation impact in EPS                                                               -    0.03       -     0.03
      Normalized EPS before MTM and hyperinflation                                            1.19    1.16    2.95     3.11

      Adoption of hyperinflation accounting has a negative impact of 0.13 USD on normalized EBIT and a positive
      impact of 0.10 USD on below EBIT, resulting in a net negative impact on Normalized EPS of 0.03 USD.
      Adoption of Hyperinflation accounting in Argentina

      Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater
      than 100%, the country is considered highly inflationary in accordance with IFRS.

      Consequently, we are reporting, starting from the 3Q18 results release, the operations of our Argentinean
      affiliates applying hyperinflation accounting. The IFRS rules (IAS 29) require us to report the results of our
      operations in hyperinflationary economies, as if these were highly inflationary as of 1 January 2018, and to
      restate the year-to-date results for the change in the general purchasing power of the local currency, using
      official indices before converting the local amounts at the closing rate of the period (i.e. 30 September 2018
      closing rate for 9M18 results).

      We are presenting the impact of adopting hyperinflation accounting as part of scopes.




ab-inbev.com                                                                                                            13
      In 3Q18 and 9M18 we are reporting -442 million USD impact of hyperinflation accounting on our revenue
      and -225 million USD impact on our normalized EBITDA. The 3Q18 hyperinflation accounting adjustment
      results from the combined effect of the indexation to reflect changes in purchasing power on the 9M18
      results and the translation of the 9M18 results at the 9M18 closing rate, rather than the average
      year-to-date rate applied both to the results previously disclosed and the results of the quarter as follows:


      Figure. 13 Impact of hyperinflation
      Revenue                                                                   Restatement YTD Impact 3Q results              Total 3Q
                                                                                    June results
      Indexation                                                                             98                 8                  106
      Closing rate                                                                         -484              -64                  -548
      Total                                                                                -386              -56                  -442

      Normalized EBITDA                                                         Restatement YTD Impact 3Q results              Total 3Q
                                                                                    June results
      Indexation                                                                             34                 3                   37
      Closing rate                                                                         -234              -29                  -262
      Total                                                                                -200              -26                  -225

      Furthermore, IAS 29 requires us to restate the non-monetary assets and liabilities stated at historical cost
      on the balance sheet of our operations in hyperinflation economies using inflation indices and to report the
      resulting hyperinflation through the income statement on a dedicated account for hyperinflation monetary
      adjustments in the finance line and report deferred taxes on such adjustments, when applicable.

      During 3Q18 and 9M18, the transition to hyperinflation accounting in accordance with the IFRS rules,
      resulted in 29 million USD monetary adjustment reported in the finance line, a negative impact on the Profit
      attributable to equity holders of AB InBev of -54 million USD and a negative impact on Normalized EPS of
      -0.03 USD.

      At the time of the FY18 results announcements, we will publish a reference base including the 2018 results
      per quarter as if we had reported under hyperinflation accounting since 1 January 2018 and the
      methodology of reporting the impact of hyperinflation going forward.




      Reconciliation between profit attributable to equity holders and normalized EBITDA

      Figure 14. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev
                                                                                           3Q17             3Q18      9M17        9M18
      Profit attributable to equity holders of AB InBev                                    2 055              956     4 963       3 911
      Non-controlling interests                                                                89             299       782         939
      Profit                                                                               2 144            1 254     5 745       4 850
      Discontinued operations results                                                           -                -      - 28          -
      Profit from continuing operations                                                    2 144            1 254     5 716       4 850
      Income tax expense                                                                   1 494              650     2 487       2 085
      Share of result of associates                                                          - 88             - 32    - 213       - 125
      Net finance (income)/cost                                                            1 135            1 787     4 255       4 603
      Non-recurring net finance (income)/cost                                              - 177              595         34      1 089
      Non-recurring items above EBIT (incl. non-recurring impairment)                        173                55      460         251
      Normalized EBIT                                                                      4 681            4 308    12 741      12 752
      Depreciation, amortization and impairment                                            1 052            1 049     3 154       3 162
      Normalized EBITDA                                                                    5 733            5 358    15 895      15 915




ab-inbev.com                                                                                                                        14
      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.


       INTERIM DIVIDEND
      The AB InBev board has approved an interim dividend of 0.80 EUR per share for the fiscal year 2018.

                                                               Ex-coupon Date       Record Date        Payment Date
      Euronext: ABI                                           27 November 2018    28 November 2018   29 November 2018
      MEXBOL: ANB                                             27 November 2018    28 November 2018   29 November 2018
      JSE: ANH                                                28 November 2018    30 November 2018   03 December 2018
      NYSE: BUD (ADR Program)                                 27 November 2018    28 November 2018   21 December 2018
      Restricted Shares                                       27 November 2018    28 November 2018   29 November 2018




ab-inbev.com                                                                                                         15
       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. The impact of adopting hyperinflation accounting in Argentina effective
      1 January 2018 is presented as a scope change.
      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. References to the High End Company refer to a business unit made up of a portfolio of global, specialty and craft
      brands across 22 countries.
      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 was 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.
      3Q18 and 9M18 EPS is based upon a weighted average of 1,975 million shares compared to a weighted average of 1,970 million
      shares for 3Q17 and 9M17.
      
      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.




ab-inbev.com                                                                                                                                    16
       NOTES

      The third quarter 2018 (3Q18) and nine months (9M18) financial data set out in Figure 1 (except for the volume information), Figures
      3 to 5, 7, 9 to 11 and 14 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 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 nine months ended 30 September 2018 (except for the volume information).
       CONFERENCE CALL AND WEBCAST

      Investor Conference call and Webcast on Thursday, 25 October 2018:

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

      Registration details

      Webcast (listen-only mode)
      https://bit.ly/2ClFl4j

      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                                          Jency John
              Tel: +32 16 276 608                                             Tel: +1 646 746 9673
              E-mail: ingvild.vanlysebetten@ab-inbev.com                      E-mail: jency.john@ab-inbev.com




      25 October 2018
      JSE Sponsor: Deutsche Securities (SA) Proprietary Limited




ab-inbev.com                                                                                                                             17
      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                                                                                                                           18
      Annex 1
      AB InBev Worldwide                               3Q17    Scope        Currency     Organic      3Q18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                   161 045   -15 205               -       348    146 187      0.2%
                        of which AB InBev own beer   132 725    -3 714               -       617    129 628      0.5%
      Revenue                                         14 740    -1 261          - 817        620     13 282      4.5%
      Cost of sales                                   -5 546       578            301      - 316     -4 982     -6.3%
      Gross profit                                     9 194      -683          - 516        304      8 299      3.5%
      SG&A                                            -4 652       314            247        - 83    -4 173     -1.9%
      Other operating income/(expenses)                  139       - 28           - 30       100        181    83.2%
      Normalized EBIT                                  4 681     - 396          -298         322      4 308      7.1%
      Normalized EBITDA                                5 733     - 419          - 372        416      5 358      7.5%
      Normalized EBITDA margin                        38.9%                                          40.3%    116 bps

      North America                                    3Q17    Scope        Currency     Organic      3Q18    Organic
                                                                          Translation    Growth                Growth
      Total volumes (thousand hls)                    30 109        15              -      - 139     29 985      -0.5%
      Revenue                                          4 120         4           - 18          56     4 162       1.4%
      Cost of sales                                   -1 500         7              5        - 57    -1 545      -3.8%
      Gross profit                                     2 621        10           - 13          -1     2 617          -
      SG&A                                            -1 115      - 19              7        - 30    -1 157      -2.6%
      Other operating income/(expenses)                    3         -              -           8       11     274.7%
      Normalized EBIT                                  1 508        -9             -5        - 23     1 471      -1.5%
      Normalized EBITDA                                1 724        -9             -6        - 38     1 671     -2.2%
      Normalized EBITDA margin                        41.8%                                          40.1%    -147 bps

      Latin America West                               3Q17    Scope        Currency     Organic      3Q18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                    28 012        -4              -        454     28 462      1.6%
      Revenue                                          2 400         1           - 80        151      2 472      6.3%
      Cost of sales                                    - 652        -3             26       - 56      - 685     -8.5%
      Gross profit                                     1 748        -3           - 54         95      1 788      5.5%
      SG&A                                             - 764          2            26         41      - 695      5.4%
      Other operating income/(expenses)                   -3         -              -         48         45         -
      Normalized EBIT                                    981         -           - 27        184      1 137    18.8%
      Normalized EBITDA                                1 137         -           - 33        200      1 303    17.6%
      Normalized EBITDA margin                        47.4%                                          52.7%    502 bps

      Latin America North                              3Q17    Scope        Currency     Organic      3Q18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                    27 943      - 52               -     - 687     27 204     -2.5%
      Revenue                                          2 276        -7          - 392          83     1 960      3.7%
      Cost of sales                                    - 916         3            145          35     - 733      3.8%
      Gross profit                                     1 360        -4          - 247        118      1 227      8.7%
      SG&A                                             - 736         1            129           1     - 604      0.2%
      Other operating income/(expenses)                   74         -            - 14       - 10        50    -13.0%
      Normalized EBIT                                    698        -2          - 132        110        673     15.7%
      Normalized EBITDA                                  906        -2          - 167        105        841     11.6%
      Normalized EBITDA margin                        39.8%                                          42.9%    304 bps




ab-inbev.com                                                                                                       19
      Latin America South                             3Q17     Scope        Currency     Organic     3Q18     Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                    7 811         22               -     - 389     7 444       -5.1%
      Revenue                                           764       -449          - 244        103       175      13.8%
      Cost of sales                                   - 287       121               88       - 41    - 119     -14.5%
      Gross profit                                      478       -328          - 156          62        56     13.3%
      SG&A                                            - 175        99               65       - 40      - 52    -23.5%
      Other operating income/(expenses)                  2         -10               -          -        -9    -13.2%
      Normalized EBIT                                   305      - 240            - 91         21        -5       7.2%
      Normalized EBITDA                                 359      - 223          - 114          50        72     14.4%
      Normalized EBITDA margin                       46.9%                                          41.1%       25 bps

      EMEA                                            3Q17     Scope        Currency     Organic     3Q18     Organic
                                                                          Translation    Growth                Growth
      Total volumes (thousand hls)                   35 828    -14 888              -        862    21 803        4.1%
                        of which AB InBev own beer   22 675     -3 434              -        905    20 147        4.7%
      Revenue                                         2 876      - 832           - 46          97    2 095        4.8%
      Cost of sales                                  -1 250        475             21      - 114     - 869      -15.3%
      Gross profit                                    1 626      - 357           - 25        - 17    1 227       -1.4%
      SG&A                                            - 905        241             15        - 21    - 670       -3.2%
      Other operating income/(expenses)                  33         -8              1          15       42       58.8%
      Normalized EBIT                                   755      - 125             -8        - 24      598       -3.6%
      Normalized EBITDA                                 969      - 162           - 13          -7      786       -0.9%
      Normalized EBITDA margin                       33.7%                                          37.5%     -216 bps

      Asia Pacific                                    3Q17     Scope        Currency     Organic     3Q18     Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                   31 037          7              -        246    31 290       0.8%
      Revenue                                         2 221         9            - 35        115     2 310       5.2%
      Cost of sales                                   - 870        -5              13       - 82     - 944      -9.4%
      Gross profit                                    1 351         4            - 21         33     1 366       2.4%
      SG&A                                            - 759        -3               8          3     - 750       0.4%
      Other operating income/(expenses)                  20        -1              -1         24        43    124.9%
      Normalized EBIT                                   612         -            - 14         60       658       9.9%
      Normalized EBITDA                                 755         -            - 16        110       849     14.6%
      Normalized EBITDA margin                       34.0%                                          36.8%     304 bps

      Global Export and Holding                       3Q17     Scope        Currency     Organic     3Q18     Organic
      Companies                                                           Translation    Growth               Growth
      Total volumes (thousand hls)                      304      -305               -         1           -         -
      Revenue                                             81       14              -3        15        107      18.7%
      Cost of sales                                     - 70      - 19              2          -       - 88     -0.1%
      Gross profit                                        10        -5             -1         15         19   247.3%
      SG&A                                            - 198          -7            -3       -37      - 244     -18.5%
      Other operating income/(expenses)                   10        -9           - 17         15          -         -
      Normalized EBIT                                 - 178       - 20           - 20        -6      - 225      -3.3%
      Normalized EBITDA                               - 117       - 23           -22         -3      - 164      -2.2%




ab-inbev.com                                                                                                       20
      Annex 2
      AB InBev Worldwide                               9M17    Scope        Currency     Organic      9M18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                   466 595   -43 151               -     1 259    424 703      0.3%
                        of which AB InBev own beer   380 938    -7 643               -     2 317    375 612      0.6%
      Revenue                                         41 844    -2 682          - 623      1 829     40 369      4.6%
      Cost of sales                                  -16 220     1 454            210      - 610    -15 166     -4.1%
      Gross profit                                    25 624    -1 228          - 413      1 220     25 203      4.9%
      SG&A                                           -13 431       674            135      - 342    -12 964     -2.7%
      Other operating income/(expenses)                  547       - 88           - 22        76        514    15.9%
      Normalized EBIT                                 12 741     - 642          -300         954     12 752      7.7%
      Normalized EBITDA                               15 895     - 726          - 347      1 092     15 915      7.1%
      Normalized EBITDA margin                        38.0%                                          39.4%     92 bps

      North America                                    9M17    Scope        Currency     Organic      9M18    Organic
                                                                          Translation    Growth                Growth
      Total volumes (thousand hls)                    87 265        76              -     -2 730     84 612      -3.1%
      Revenue                                         11 906        19             27      - 149     11 803      -1.3%
      Cost of sales                                   -4 387        18           - 10        - 10    -4 389      -0.2%
      Gross profit                                     7 520        37             18      - 160      7 415      -2.1%
      SG&A                                            -3 289      - 52           - 10        - 26    -3 378      -0.8%
      Other operating income/(expenses)                   22         -              -        - 10       12      -46.0%
      Normalized EBIT                                  4 253      - 15              7      - 196      4 049      -4.6%
      Normalized EBITDA                                4 873      - 14              8      - 227      4 640      -4.7%
      Normalized EBITDA margin                        40.9%                                          39.3%    -141 bps

      Latin America West                               9M17    Scope        Currency     Organic      9M18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                    81 200      - 25               -     3 897     85 071      4.8%
      Revenue                                          6 660        -1               8       634      7 301      9.5%
      Cost of sales                                   -1 878        -8               -     - 184     -2 069     -9.7%
      Gross profit                                     4 782        -9               8       450      5 232      9.4%
      SG&A                                            -2 136          9             -2        -9     -2 139     -0.4%
      Other operating income/(expenses)                   31         -              1         39         70   127.4%
      Normalized EBIT                                  2 677         -               6       480      3 163    18.0%
      Normalized EBITDA                                3 135         -               7       511      3 652    16.3%
      Normalized EBITDA margin                        47.1%                                          50.0%    291 bps

      Latin America North                              9M17    Scope        Currency     Organic      9M18    Organic
                                                                          Translation    Growth               Growth
      Total volumes (thousand hls)                    84 493     -177                -    -2 966     81 350     -3.5%
      Revenue                                          6 641      -23           - 613        289      6 295      4.4%
      Cost of sales                                   -2 736       10             228        117     -2 382      4.3%
      Gross profit                                     3 905      -12           - 385        406      3 913    10.4%
      SG&A                                            -2 146         4            203      - 100     -2 038     -4.7%
      Other operating income/(expenses)                  232        -             - 23        -1        207     -0.6%
      Normalized EBIT                                  1 990       -8           - 205        305      2 082    15.4%
      Normalized EBITDA                                2 605       -8           - 261        306      2 642    11.8%
      Normalized EBITDA margin                        39.2%                                          42.0%    279 bps




ab-inbev.com                                                                                                       21
      Latin America South                              9M17      Scope        Currency    Organic     9M18      Organic
                                                                            Translation   Growth                Growth
      Total volumes (thousand hls)                    23 630          43              -       436    24 110        1.9%
      Revenue                                          2 287        -446          - 518       480     1 803       21.2%
      Cost of sales                                    - 853         115            174     - 137     - 702      -16.2%
      Gross profit                                     1 434        -331          - 344       342     1 102       24.2%
      SG&A                                             - 569         92             137     - 133     - 473      -23.6%
      Other operating income/(expenses)                   5          -13             -2         6        -4     130.4%
      Normalized EBIT                                    870       - 252          - 209       215       624       25.1%
      Normalized EBITDA                                1 025       - 234          - 250       266       806       26.4%
      Normalized EBITDA margin                        44.8%                                          44.7%      192 bps

      EMEA                                             9M17      Scope        Currency    Organic     9M18      Organic
                                                                            Translation   Growth                Growth
      Total volumes (thousand hls)                   105 454     -42 683              -       922    63 692         1.5%
                        of which AB InBev own beer    65 277      -7 269              -       938    58 946         1.6%
      Revenue                                          8 022      -2 291            246       214     6 190         3.7%
      Cost of sales                                   -3 656       1 365           - 88     - 213    -2 592        -9.5%
      Gross profit                                     4 366       - 926            158          -    3 598            -
      SG&A                                            -2 605         657           - 94       - 39   -2 081        -2.0%
      Other operating income/(expenses)                   75         - 11             4         21       89       33.2%
      Normalized EBIT                                  1 836       - 281             68       - 18    1 606        -1.1%
      Normalized EBITDA                                2 458       - 381             90         32    2 199         1.6%
      Normalized EBITDA margin                        30.6%                                          35.5%       -77 bps

      Asia Pacific                                     9M17      Scope        Currency    Organic     9M18      Organic
                                                                            Translation   Growth                Growth
      Total volumes (thousand hls)                    83 605          73              -     1 713    85 391        2.0%
      Revenue                                          6 077         27             228       344     6 677        5.7%
      Cost of sales                                   -2 500        - 14            -99     - 160    -2 773       -6.4%
      Gross profit                                     3 577         13             129       185     3 904        5.2%
      SG&A                                            -2 008        - 11            -75       - 20   -2 114       -1.0%
      Other operating income/(expenses)                  102          -1              5         20      126      20.0%
      Normalized EBIT                                  1 671            1            60       185     1 917      11.1%
      Normalized EBITDA                                2 167            1            81       216     2 466      10.0%
      Normalized EBITDA margin                        35.7%                                          36.9%      145 bps

      Global Export and Holding                        9M17      Scope        Currency    Organic     9M18      Organic
      Companies                                                             Translation   Growth                Growth
      Total volumes (thousand hls)                         948     -458               -       -13         478     -2.7%
      Revenue                                              251       33              -2       17          300      7.0%
      Cost of sales                                    -   210      -33               4      - 21     -   260    -10.0%
      Gross profit                                          41         -              2        -4          40     -8.7%
      SG&A                                             -   678       -25           - 25      -14      -   741     -2.1%
      Other operating income/(expenses)                     81      - 63             -6         1          13      3.7%
      Normalized EBIT                                  -   555      - 88           - 28      - 17     -   688     -2.7%
      Normalized EBITDA                                -   367      - 89           -22       - 13     -   491     -2.8%




ab-inbev.com                                                                                                         22

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