BUD Anheuser Busch Inbev SA NV

Exhibit

Number

Description

ANHEUSER-BUSCH INBEV SA/NV

(Registrant)

/s/ Jan Vandermeersch

Name: Jan Vandermeersch

Title:  Global Legal Director Corporate

  Brussels – 31 October 2023 - 7:00am CET

Lead and grow the category:

This quarter we delivered revenue growth in approximately 80% of our markets.

Digitize and monetize our ecosystem:

BEES captured approximately 10.4 billion USD of gross merchandise value (GMV), a 27% increase versus 3Q22 with 66% of our revenue through B2B digital channels. BEES Marketplace is live in 15 markets and generated an annualized GMV of approximately 1.7 billion USD with 65% of BEES customers now also Marketplace buyers.

Optimize our business:

We continue to focus on deleveraging and have approved a cash tender offer for up to 3 billion USD in aggregate purchase price of outstanding bonds. In addition, as part of our objective to maximize value creation, the AB InBev Board of Directors has approved a 1 billion USD share buyback program to be executed within the next 12 months.

Lead and grow the category

Driven by our portfolio of megabrands, we are executing on our five proven and scalable levers to drive category expansion:

•   Category Participation: In 3Q23, the percentage of consumers purchasing our portfolio of brands increased or remained stable in the majority of our markets, according to our estimates. Participation increases this quarter were led by female consumers across key markets in Africa and Europe.

•   Core Superiority: In 3Q23, our mainstream portfolio delivered a mid-single digit revenue increase as double-digit growth in South Africa, Colombia and the Dominican Republic was partially offset by the revenue decline of Bud Light in the US. Our mainstream brands gained or maintained share of segment in the majority of our key markets, according to our estimates.

•   Occasions Development: Our global no-alcohol beer portfolio delivered over 10% revenue growth this quarter, with our performance driven by Budweiser Zero in Brazil and growth of Corona Cero in Canada, Mexico and Europe. Leveraging our digital direct-to-consumer products we are developing new consumer insights and consumption occasions. For example, across Latin America, Zé Delivery and TaDa are enabling increased in-home consumption of returnable glass bottle packs by increasing availability and convenience.

•   Premiumization: Our above core beer portfolio grew revenue by high-single digits in 3Q23 led by our global brands which grew revenue by 15.1% outside of their home markets. Corona delivered a revenue increase of 18.8%, Budweiser grew by 11.8%, Stella Artois by 20.3% and Michelob Ultra by 11.5%.

•   Beyond Beer: Our global Beyond Beer business contributed approximately 385 million USD of revenue in the quarter, a mid-single digit increase versus 3Q22, as growth globally was partially offset by a soft malt-based seltzer industry in the US. Global growth was primarily driven by the expansion of Flying Fish in Africa and the Vicky portfolio in Mexico.

Digitize and monetize our ecosystem

•   Digitizing our relationships with more than 6 million customers globally: As of 30 September 2023, BEES is live in 25 markets with approximately 66% of our 3Q23 revenues captured through B2B digital platforms. In 3Q23, BEES had 3.4 million monthly active users and captured approximately 10.4 billion USD in gross merchandise value (GMV), growth of 11% and 27% versus 3Q22 respectively.

   BEES Marketplace is live in 15 markets with 65% of BEES customers also marketplace buyers. Marketplace captured approximately 420 million USD in GMV from sales of third-party products this quarter, growth of 52% versus 3Q22.

•   Leading the way in DTC solutions: Our omnichannel direct-to-consumer (DTC) ecosystem of digital and physical products generated revenue of more than 390 million USD in 3Q23. Our DTC megabrands, Zé Delivery, TaDa and PerfectDraft are available in 21 markets, generated 16.9 million ecommerce orders and delivered over 125 million USD in revenue this quarter, representing 9% growth versus 3Q22.

•   Maximizing value creation: The objective of our dynamic capital allocation priorities is to maximize value creation to our shareholders. We continue to proactively manage our debt portfolio and have approved a cash tender offer for up to 3 billion USD in aggregate purchase price of outstanding bonds. In addition, as a result of our continued global momentum and strong free cash flow generation, the AB InBev Board of Directors has approved a 1 billion USD share buyback program to be executed within the next 12 months. Our Underlying EPS was 0.86 USD this quarter, an increase of 0.02 USD per share versus 3Q22, driven by nominal EBITDA growth and continued optimization of our net finance costs.

   For further details on the cash tender offer and share buyback program please refer to the Recent Events section on page 13.

•   Advancing our sustainability priorities: We continued to innovate and make progress towards our 2025 Sustainability Goals through key local initiatives with the potential to scale globally. For Climate Action, to support our Scope 3 efforts, we organized supplier collaboration and training events across our key markets. In Sustainable Agriculture, we hosted more than 200 farmers at our annual grower day in the US to share results from our barley variety and crop management research trials. In Water Stewardship, we launched a partnership with WaterAid in Ghana for a solar-powered water delivery system to help advance the delivery of clean and safe water to communities in need. For Circular Packaging, we continued to scale our program in Mexico to recover bottles destined for landfill, recovering more than 145 million bottles during 3Q23.

Overall Performance: We expect our EBITDA to grow in line with our medium-term outlook of between 4-8% and our revenue to grow ahead of EBITDA from a healthy combination of volume and price. The outlook for FY23 reflects our current assessment of inflation and other macroeconomic conditions.

Net Finance Costs: Net pension interest expenses and accretion expenses are expected to be in the range of 200 to 230 million USD per quarter, depending on currency and interest rate fluctuations. We expect the average gross debt coupon in FY23 to be approximately 4%.

Effective Tax Rates (ETR): We expect the normalized ETR in FY23 to be in the range of 27% to 29%. The ETR outlook does not consider the impact of potential future changes in legislation.

Net Capital Expenditure: We expect net capital expenditure of between 4.5 and 5.0 billion USD in FY23.

 Figure 1. Consolidated performance (million USD)

 Total Volumes (thousand hls)

 AB InBev own beer

 Non-beer volumes

 Third party products

 Revenue

 Gross profit

 Gross margin

 Normalized EBITDA

 Normalized EBITDA margin

 Normalized EBIT

 Normalized EBIT margin

 Profit attributable to equity holders of AB InBev

 Underlying profit attributable to equity holders of AB InBev

 Earnings per share (USD)

 Underlying earnings per share (USD)

 Total Volumes (thousand hls)

 AB InBev own beer

 Non-beer volumes

 Third party products

 Revenue

 Gross profit

 Gross margin

 Normalized EBITDA

 Normalized EBITDA margin

 Normalized EBIT

 Normalized EBIT margin

 Profit attributable to equity holders of AB InBev

 Underlying profit attributable to equity holders of AB InBev

 Earnings per share (USD)

 Underlying earnings per share (USD)

 Figure 2. Volumes (thousand hls)

 North America

 Middle Americas

 South America

 EMEA

 Asia Pacific

 Global Export and Holding Companies

 AB InBev Worldwide

 North America

 Middle Americas

 South America

 EMEA

 Asia Pacific

 Global Export and Holding Companies

 AB InBev Worldwide

Operating performance:

3Q23: Revenue declined by 13.5% with revenue per hl increasing by 4.9% driven by revenue management initiatives. Sales-to-wholesalers (STWs) declined by 17.6%. Sales-to-retailers (STRs) were down by 16.6%, primarily due to the volume decline of Bud Light and impacted by shipment phasing ahead of our October price increase last year. EBITDA declined by 29.3%, with approximately two thirds of this decrease attributable to market share performance and the remainder from productivity loss, increased sales and marketing investments and support measures for our wholesaler partners.

9M23: Revenue declined by 7.1% with revenue per hl growth of 5.3%. Our STWs declined by 11.7% and STRs were down by 11.8%. EBITDA decreased by 20.0%.

Commercial highlights: The beer industry remained resilient in 3Q23, delivering revenue growth of 3.3% and gaining share of total alcohol by value in the off-premise, according to Circana. Our total beer market share has remained stable since the last week of April through the end of September. To support our long-term strategy, we continue to invest in our megabrands, wholesaler support measures and key partnerships including the NFL and Folds of Honor, as well as new activations in college football and the NBA. In Beyond Beer, our spirits based ready-to-drink portfolio continued to grow volume by strong double-digits, outperforming the industry.

Operating performance:

3Q23: Revenue grew by mid-single digits with high-single digit revenue per hl growth driven by pricing actions and other revenue management initiatives. Volumes declined by low-single digits, slightly underperforming a soft industry as we cycled a strong market share performance in 3Q22. EBITDA grew by mid-single digits.

9M23: Revenue grew by more than 10% with revenue per hl growing by low-teens and volumes flattish. EBITDA grew by low-teens.

Commercial highlights: Our core brands delivered mid-single digit revenue growth this quarter and our above core portfolio continued to outperform, led by the strong performance of Modelo and Pacifico. We continued to progress our digital initiatives with our Vendo platform in BEES now enabling digital utilities payments and mobile data purchases in more than 90 000 points of sale and generating over 170 000 transactions in 3Q23.

Operating performance:

3Q23: Revenue grew by mid-teens with low-single digit volume and low-teens revenue per hl growth, driven by pricing actions and other revenue management initiatives. EBITDA grew by mid-teens.

9M23: Revenue grew by high-single digits with revenue per hl growth of high-single digits. Volumes were flattish. EBITDA grew by more than 10%.

Commercial highlights: Our core portfolio led our performance this quarter, delivering mid-teens revenue growth with a particularly strong performance from Poker which grew volumes by high-single digits. In the above core segment, Corona outperformed the industry delivering low-teens volume growth.

Operating performance:

3Q23: Revenue grew by 5.3% with revenue per hl growth of 5.5% driven by revenue management initiatives in an environment of moderating inflation. Total volumes were flat, with beer volumes declining by 1.1%, slightly underperforming the industry as we cycled all-time high quarterly volumes in 3Q22. Non-beer volumes increased by 3.7%. EBITDA increased by 30.5% with margin expansion of 628bps.

9M23: Total volumes were flat with beer volumes down 1.0% and non-beer volumes up 3.0%. Both revenue and revenue per hl increased by 9.9%. EBITDA grew by 28.7% with margin expansion of 435bps.

Commercial highlights: Our premium and super premium brands continued to outperform this quarter, delivering volume growth in the low-teens, led by Original, Spaten and Corona. Non-beer performance was led by our low- and no-sugar portfolio, which grew volumes by over 20%. BEES Marketplace continued to expand, reaching over 750 000 customers, a 15% increase versus 3Q22, and growing GMV by 32%. Our digital DTC platform, Zé Delivery, reached 4.7 million monthly active users this quarter, a 9% increase versus 3Q22, and increased GMV by 8%.

Operating performance:

3Q23: Revenue grew by low-single digits with mid-teens revenue per hl growth, driven by pricing actions and the continued momentum of our premium and super premium brands. Volumes declined by high-single digits, outperforming a soft industry in more than 80% of our key markets according to our estimates. EBITDA grew by low-single digits.

9M23: Revenue grew by high-single digits, driven by mid-teens revenue per hl growth. Volumes declined by mid-single digits. EBITDA increased by mid-single digits.

Commercial highlights: We continue to drive premiumization across Europe. Our performance this quarter was driven by our premium and super premium brands which grew revenues by mid-single digits, led by Leffe and Stella Artois. Our digital transformation in Europe is progressing, with BEES now live in the UK, Germany, and the Canary Islands.

Operating performance:

3Q23: Top line grew by high-teens, with revenue per hl growth of high-single digits, driven by revenue management initiatives and continued premiumization. Our volumes increased by high-single digits, outperforming the industry according to our estimates, and supported by shipment phasing ahead of our October price increase. EBITDA grew by mid-single digits, as top-line growth was partially offset by anticipated transactional FX and commodity cost headwinds.

9M23: Revenue grew by mid-teens with high-single digit revenue per hl growth and a mid-single digit increase in volume. EBITDA grew by low-single digits.

Commercial highlights: The momentum of our business continued this quarter, with our portfolio gaining share of both beer and total alcohol, according to our estimates. Our core portfolio continued to outperform, delivering high-single digit volume growth, and our global brands grew volumes by more than 35%, driven by Corona and Stella Artois.

Operating performance:

3Q23: Our top-line grew by 7.1% with revenue per hl increasing by 7.3%, driven by on-premise recovery and continued premiumization. Volumes were flattish, outperforming a softer industry. EBITDA increased by 9.6%.

9M23: Volumes grew by 5.7% and revenue per hl by 6.4%, leading to a total revenue increase of 12.5%. EBITDA grew by 14.8%.

Commercial highlights: We continue to invest behind our commercial strategy, focused on premiumization, channel and geographic expansion, and digital transformation. Our performance this quarter was led by our premium and super premium brands which grew volumes by more than 10%, driven by on-premise recovery and expansion into new cities. The roll out and adoption of the BEES platform continued, with BEES now present in over 230 cities and with over 65% of our revenue generated through digital channels in September.

Canada: Revenue declined by high-single digits this quarter with revenue per hl growth of high-single digits, driven by revenue management initiatives and premiumization. Volumes declined by low-teens, underperforming a soft industry.

Peru: Revenue grew by over 10% this quarter with revenue per hl increasing by high-single digits, driven primarily by revenue management initiatives. Volumes increased by low-single digits, driven by the performance of our leading core brand Pilsen Callao and our non-beer portfolio.

Ecuador: Revenue grew by mid-single digits this quarter despite volumes declining low-single digits as the industry was impacted by four fewer trading days due to election related dry laws. Our above core brands continued to lead our performance, delivering a high-single digit revenue increase.

Argentina: Revenue increased by over 100% on an organic basis in 3Q23, driven by revenue management initiatives in a highly inflationary environment. Volumes declined by mid-teens as overall consumer demand was impacted by inflationary pressures.

Africa excluding South Africa: In Nigeria, our top-line grew by over 30% this quarter driven by pricing actions and other revenue management initiatives. Beer volumes declined by more than 10%, driven by a soft industry which was impacted by the continued challenging operating environment. In our other markets, we grew volumes in aggregate by high-single digits in 3Q23, driven primarily by Mozambique, Tanzania, and Uganda.

South Korea: Total revenue decreased by high-single digits this quarter with a mid-single digit volume decline, underperforming a soft industry which cycled post-COVID recovery in 3Q22. Revenue per hl decreased by low-single digits, driven primarily by an excise tax increase earlier in the year.

 Figure 3. Consolidated income statement (million USD)

Revenue

Cost of sales

Gross profit

SG&A

Other operating income/(expenses)

Normalized profit from operations (normalized EBIT)

Non-underlying items above EBIT (incl. impairment losses)

Net finance income/(cost)

Non-underlying net finance income/(cost)

Share of results of associates

Income tax expense

Profit

Profit attributable to non-controlling interest

Profit attributable to equity holders of AB InBev

Normalized EBITDA

Underlying profit attributable to equity holders of AB InBev

Revenue

Cost of sales

Gross profit

SG&A

Other operating income/(expenses)

Normalized profit from operations (normalized EBIT)

Non-underlying items above EBIT (incl. impairment losses)

Net finance income/(cost)

Non-underlying net finance income/(cost)

Share of results of associates

Non-underlying share of results of associates

Income tax expense

Profit

Profit attributable to non-controlling interest

Profit attributable to equity holders of AB InBev

Normalized EBITDA

Underlying profit attributable to equity holders of AB InBev

 Figure 4. Non-underlying items above EBIT & Non-underlying share of results of associates (million USD)

COVID-19 costs

Restructuring

Business and asset disposal (incl. impairment losses)

Legal costs

AB InBev Efes related costs

Non-underlying items in EBIT

Non-underlying share of results of associates

 Figure 5. Net finance income/(cost) (million USD)

Net interest expense

Net interest on net defined benefit liabilities

Accretion expense

Net interest income on Brazilian tax credits

Other financial results

Net finance income/(cost)

 Figure 6. Non-underlying net finance income/(cost) (million USD)

Mark-to-market

Gain/(loss) on bond redemption and other

Non-underlying net finance income/(cost)

  Figure 7. Non-underlying equity derivative instruments

Share price at the start of the period (Euro)

Share price at the end of the period (Euro)

Number of equity derivative instruments at the end of the period (millions)

  Figure 8. Income tax expense (million USD)

Income tax expense

Effective tax rate

Normalized effective tax rate

  Figure 9. Underlying Profit attributable to equity holders of AB InBev (million USD)

Profit attributable to equity holders of AB InBev

Net impact of non-underlying items on profit

Hyperinflation impacts in underlying profit

Underlying profit attributable to equity holders of AB InBev

  Figure 10. Earnings per share (USD)

Basic EPS

Net impact of non-underlying items on profit

Hyperinflation impacts in EPS

Underlying EPS

Weighted average number of ordinary and restricted shares (million)

  Figure 11. Key components - Underlying EPS in USD

Normalized EBIT before hyperinflation

Hyperinflation impacts in normalized EBIT

Normalized EBIT

Net finance cost

Income tax expense

Associates & non-controlling interest

Hyperinflation impacts in EPS

Underlying EPS

Weighted average number of ordinary and restricted shares (million)

 Figure 12. Reconciliation of normalized EBITDA to profit attributable to equity holders of AB InBev (million USD)

Profit attributable to equity holders of AB InBev

Non-controlling interests

Profit

Income tax expense

Share of result of associates

Non-underlying share of results of associates

Net finance (income)/cost

Non-underlying net finance (income)/cost

Non-underlying items above EBIT (incl. impairment losses)

Normalized EBIT

Depreciation, amortization and impairment

Normalized EBITDA

Currency

Translation

Hyperinflation

restatement

Organic

Growth

Organic 

Growth 

 Total volumes (thousand hls)

of which AB InBev own beer

 Revenue

 Cost of sales

 Gross profit

 SG&A

 Other operating income/(expenses)

 Normalized EBIT

 Normalized EBITDA

 Normalized EBITDA margin

Currency

Translation

Hyperinflation

restatement

Organic

Growth

Organic 

Growth 

 Total volumes (thousand hls)

 Revenue

 Cost of sales

 Gross profit

 SG&A

 Other operating income/(expenses)

 Normalized EBIT

 Normalized EBITDA

 Normalized EBITDA margin

Currency

Translation

Hyperinflation

restatement

Organic

Growth

Organic 

Growth 

 Total volumes (thousand hls)

 Revenue

 Cost of sales

 Gross profit

 SG&A

 Other operating income/(expenses)

 Normalized EBIT

 Normalized EBITDA

 Normalized EBITDA margin

Currency

Translation

Hyperinflation

restatement

Organic

Growth

Organic 

Growth 

 Total volumes (thousand hls)

 Revenue

 Cost of sales

 Gross profit

 SG&A

 Other operating income/(expenses)

 Normalized EBIT

 Normalized EBITDA

 Normalized EBITDA margin

Currency

Translation

Hyperinflation

restatement

Organic

Growth

Organic 

Growth 

 Total volumes (thousand hls)

 Revenue

 Cost of sales

 Gross profit

 SG&A

 Other operating income/(expenses)

 Normalized EBIT

 Normalized EBITDA