Anheuser-Busch InBev Reports Third Quarter and Nine Month 2021 Results

Regulated and inside information1		Brussels / 28 October 2021 / 7.00am CET

Anheuser-Busch InBev Reports Third Quarter 2021 Results

Momentum continues with top- and bottom-line growth ahead of pre-pandemic levels

"During the third quarter, we delivered top- and bottom-line growth versus both 2020 and pre-pandemic levels of 2019 driven by relentless execution, investment in our brands and accelerated digital transformation. As a result of our performance and our continued momentum we are raising the bottom-end of our EBITDA guidance." - Michel Doukeris, CEO

Total Volume

+3.4%

In 3Q21, total volumes grew by 3.4%, with own beer volumes up by 2.8% and non-beer volumes up by 7.8%. In 9M21, total volumes grew by 11.9% with own beer volumes up by 12.1% and non-beer volumes up by 10.7%.

Total Revenue

+ 7.9%

In 3Q21, revenue grew by 7.9% with revenue per hl growth of 4.3%. In 9M21, revenue grew by 17.0% with revenue per hl growth of 4.7%.

Global Brands Revenue

• 9.3% (outside their home markets)

In 3Q21, combined revenues of our three global brands, Budweiser, Stella Artois and Corona, increased by 5.0% globally and by 9.3% outside of their respective home markets. In 9M21, the combined revenues of our global brands increased by 18.0% globally and by 22.7% outside of their respective home markets.

Underlying Profit

1 699 million USD

Underlying profit (normalized profit attributable to equity holders of AB InBev excluding mark-to-market gains and losses linked to the hedging of our share- based payment programs and the impact of hyperinflation) was 1 699 million USD in 3Q21 compared to 1 601 million USD in 3Q20 and was 4 290 million USD in 9M21 compared to 3 407 million USD in 9M20. Normalized profit attributable to equity holders of AB InBev was 1 002 million USD in 3Q21 versus

1 578 million USD in 3Q20 and 3 926 million USD in 9M21 versus 1 654 million USD in 9M20.

Underlying EPS

0.85 USD

Underlying EPS (Normalized EPS excluding mark-to- market gains and losses linked to the hedging of our share-based payment programs and the impact of hyperinflation) was 0.85 USD in 3Q21, an increase from

0.80 USD in 3Q20 and was 2.14 USD in 9M21, an increase from 1.71 USD in 9M20. Normalized EPS in 3Q21 was 0.50 USD, a decrease from 0.79 USD in 3Q20. Normalized EPS in 9M21 was 1.96 USD, an increase from 0.83 USD in 9M20.

Normalized EBITDA

+ 3.0%

Normalized EBITDA increased by 3.0% in 3Q21 and by 14.5% in 9M21. Normalized EBITDA margin was 36.5% in 3Q21 and 35.7% in 9M21. The 9M21 Normalized EBITDA figures include an impact of 226 million USD from tax credits in Brazil. For more details, please see page 11.

1The enclosed information constitutes inside information as defined in Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, and 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.

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MANAGEMENT COMMENTS

Momentum continues with top- and bottom-line growth ahead of pre-pandemic levels

Led by the consistent execution of our consumer- and customer-centric strategy, we delivered top-line growth of low- teens versus 3Q19 pre-pandemic levels, despite ongoing COVID-19 impacts and supply chain constraints in some key markets.

On a year-over-year basis, we grew top-line by 7.9%, comprised of a healthy mix of 3.4% volume and 4.3% revenue per hl growth driven by revenue management and premiumization. EBITDA increased by 3.0% as top-line growth was partially offset by anticipated transactional FX and commodity headwinds, coupled with elevated supply chain costs in certain markets. Additionally, SG&A increased due to a volume-driven increase in distribution costs and higher variable compensation accruals.

In line with our financial discipline and deleveraging objectives, there will be no interim dividend. The Board's proposal with respect to a full year 2021 dividend will be announced with our FY21 results on 24 February 2022.

Winning consumer- and customer-centric commercial strategy:

• Reaching more consumers in more occasions with our best-in-class portfolio:

1. Leading and growing the beer category:
2. • Our mainstream portfolio delivered healthy revenue growth of 4.0% and we once again outperformed the industry across most of our main markets according to our estimates. Our premium portfolio continued to lead our growth, representing over 30% of our revenue and delivering 11.3% revenue growth in 3Q21. Our global brands - Budweiser, Stella Artois and Corona - delivered 9.3% revenue growth outside their home markets, where they typically command a price premium.
   • We continue to develop the beer category across our markets. For example, in Brazil we achieved our all-time high rolling 12 months beer volume in 3Q21. In Colombia, supported in part by our innovations across new styles, price tiers and packs, beer share of total alcohol increased by approximately 120bps year-to-date August versus the comparable period in 2019, resulting in the country's highest beer per capita consumption (PCC) in 25 years.
   • We continued to leverage our 'prove and move' innovation strategy to scale up our winning solutions, resulting in our innovation portfolio making up approximately 10% of our revenues year-to-date. In 3Q21, the double malt concept was scaled to South Africa with the launch of Castle Double Malt. We also further expanded our portfolio to address key consumer trends in health and wellness, with Michelob ULTRA now launched in ten new markets.

• 1. Adding profitable growth in Beyond Beer globally: In 9M21, our global Beyond Beer business contributed 1.2 billion USD of revenue, with our hard seltzer portfolio expanding globally and growing 1.8x the segment in the US. We saw triple-digitrevenue growth in the quarter of our leading canned cocktail brand, Cutwater, and Brutal Fruit in South Africa.
• Creating new value from our ecosystem using data and technology:
• 1. Digitizing our relationships with our more than 6 million global customers: In 3Q21, our proprietary B2B platform, BEES, captured over 5.5 billion USD in gross merchandise value (GMV) with more than

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20 million orders placed, both metrics growing more than 20% from 2Q21. In September 2021, our monthly active user base (MAU) reached 2.1 million users. More information can be found at www.bees.com.

1. Leading the way in direct-to-consumer (DTC) beer sales: In 9M21, our owned DTC business revenue surpassed 1 billion USD, with e-commerceas the largest contributor growing by more than 90% and reaching nearly 50 million orders, 1.5x greater than all of 2020. In Brazil, Zé Delivery is now present in 280+ cities covering over 50% of the population. We continue to scale our courier platforms in Latin America, now available in ten of our markets outside of Brazil, including Mexico, Colombia and Ecuador.

Advancing sustainability around the world

Following the announcement of our first carbon neutral brewery earlier this year in Wuhan, China, during 3Q21 we achieved carbon neutrality for our second brewery and first malthouse in Brazil. As pioneers in sustainable brewing, we will continue to pursue innovation and partnerships in support of the transition to a low carbon economy.

In September 2021, at the 76th session of the United Nations Global Assembly, we were recognized as one of only 37 Global Compact LEAD companies for our ongoing commitment to the UN Global Compact, its Ten Principles for responsible business and the related Sustainable Development Goals.

Continued momentum of our business

Our top-line growth accelerated versus pre-pandemic levels of 2019. We remain confident in our execution capabilities, our portfolio performance and our accelerated digital transformation. We are focused on meeting the moment and building on our momentum, investing in and accelerating our strategic priorities to drive long-term value creation.

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2021 OUTLOOK

1. Overall Performance: We expect our EBITDA to grow between 10-12% and our revenue to grow ahead of EBITDA from a healthy combination of volume and price. The outlook for FY21 reflects our current assessment of the scale and magnitude of the COVID-19 pandemic, which is subject to change as we continue to monitor ongoing developments.
2. Net Finance Costs: We expect the average gross debt coupon in FY21 to be approximately 4.0%. Net pension interest expenses and accretion expenses including IFRS 16 adjustments (lease reporting) are expected to be in the range of 140 to 160 million USD per quarter, depending on currency fluctuations. Net finance costs will continue to be impacted by any gains and losses related to the hedging of our share-based payment programs.
3. Effective Tax Rates (ETR): We expect the normalized ETR in FY21 to be in the range of 28% to 30%, excluding any gains and losses relating to the hedging of our share-based payment programs. The increase versus 2020 is due to factors including the phasing out of temporary COVID-19 measures and changes to tax attributes in some key markets. The ETR outlook does not consider the impact of potential future changes in legislation.
4. Net Capital Expenditure: We expect net capital expenditure of between 4.5 and 5.0 billion USD in FY21 as we are increasing investments in innovation and other consumer-centric initiatives to fuel our momentum.
5. Debt: Approximately 48% of our gross debt is denominated in currencies other than the US dollar, primarily the Euro. Our optimal capital structure remains a net debt to EBITDA ratio of around 2x.

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Figure 1. Consolidated performance (million USD)

	3Q20	3Q21	Organic
Total Volumes (thousand hls)			growth
146 612	151 629	3.4%
AB InBev own beer	130 734	131 354	2.8%
Non-beer volumes	14 854	19 308	7.8%
Third party products	1 023	968	8.5%
Revenue	12 816	14 274	7.9%
Gross profit	7 561	8 236	5.3%
Gross margin	59.0%	57.7%	-142 bps
Normalized EBITDA	4 892	5 214	3.0%
Normalized EBITDA margin	38.2%	36.5%	-174 bps
Normalized EBIT	3 754	4 020	3.8%
Normalized EBIT margin	29.3%	28.2%	-111 bps
Profit from continuing operations attributable to equity holders of AB InBev	1 039	250
Profit attributable to equity holders of AB InBev	1 039	250
Normalized profit attributable to equity holders of AB InBev	1 578	1 002
Underlying profit attributable to equity holders of AB InBev	1 601	1 699
Earnings per share (USD)	0.52	0.12
Normalized earnings per share (USD)	0.79	0.50
Underlying earnings per share (USD)	0.80	0.85
.
.	9M20	9M21	Organic
			growth
Total Volumes (thousand hls)	386 189	432 027	11.9%
AB InBev own beer	341 028	378 989	12.1%
Non-beer volumes	42 432	50 551	10.7%
Third party products	2 730	2 487	5.0%
Revenue	34 114	40 106	17.0%
Gross profit	19 762	23 105	16.1%
Gross margin	57.9%	57.6%	-46 bps
Normalized EBITDA	12 254	14 327	14.5%
Normalized EBITDA margin	35.9%	35.7%	-77 bps
Normalized EBIT	8 856	10 788	19.2%
Normalized EBIT margin	26.0%	26.9%	49 bps
Profit from continuing operations attributable to equity holders of AB InBev	-2 916	2 708
Profit attributable to equity holders of AB InBev	-860	2 708
Normalized profit attributable to equity holders of AB InBev	1 654	3 926
Underlying profit attributable to equity holders of AB InBev	3 407	4 290
Earnings per share (USD)	-0.43	1.35
Normalized earnings per share (USD)	0.83	1.96
Underlying earnings per share (USD)	1.71	2.14

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