Anheuser-Busch InBev SA/NV

Welcome to Anheuser-Busch InBev's full year and fourth quarter 2022 earnings conference call and webcast. Hosting the call today from AB InBev are Mr. Michelle Bucharest, Chief Executive Officer, and Mr. Fernando Tenenbaum, Chief Financial Officer. To access the slides accompanying today's call, please visit AB InBev's website at www.ab-inbev.com and click on the Investors tab and the Reports and Results Center page. Today's webcast will be available for on-demand playback later today. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star 1 on your touchtone phone. If at any point your question has been answered, you may remove yourself from the queue by pressing star 2. If you should require operator assistance, please press star 0. Some of the information provided during the conference call may contain statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that AB InBev's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect AB InBev's future results, risk factors in the company's latest annual report on Form 20F filed with the Securities and Exchange Commission on the 18th of March, 2022. AB InBev assumes no obligation to update or revise any forward-looking information provided during the conference call and shall not be liable for any action taken in reliance upon such information. It is now my pleasure to turn the floor over to Mr. Michel Doukeris. Sir, you may begin.

Thank you, Jessie, and welcome, everyone. to our full year 2022 earnings call. It is a great pleasure to be speaking with you all today. Today Fernanda and I will take you through our full year and fourth quarter operating highlights and provide you with an update on the progress we've made in executing our strategic priorities. After that, we'll be happy to answer your questions. Let's start with our operating performance. We are very pleased with the continued momentum of our business and the strength of the beer category across our footprint in both the fourth quarter and the full year 2022. For the full year, our top line grew by 11.2%, with volumes increasing by 2.3%, reaching a new all-time high. Revenue per hectolitre increased by 8.6%, accelerating in the second half of the year, driven by revenue management initiatives and continued premiumization. Driven by the consistent execution of our strategy and top-line growth across all operating regions, our reported revenue is now 5.5 billion U.S. dollars above full-year 19 pre-pandemic levels, with our volumes 5.8% ahead. DIPDA increased by 7.2% at the upper end of our medium-term growth ambition and 2022 outlook. Underlying EPS was $3.03, a 5.2% increase versus last year. As a result of our performance and strong free cash flow generation, gross debt decreased by $8.9 billion this year. leading to a net debt to EBITDA ratio of 3.51 times. Following our leverage and progress, the board has proposed a full year dividend of 75 euro cents per share, a 50% increase versus 2021. In the fourth quarter, we delivered top-line growth of 10.2%, with accelerated revenue per hectolitre growth of 11.2%. Driven by the implementation of price actions, ongoing criminalization, and other revenue management initiatives. Our volume declined by 0.6%, driven primarily by the significant impact of COVID restrictions in China and a softer industry in the US, which was impacted by the phasing of price increases and abnormally poor weather in December. We delivered an EBITDA growth of 7.6% and underlying EPS of 86 cents, a 12 cents increase versus quarter four, 21. Our diverse geographic footprint provides a unique combination of growth and reliable cash flow generation, positioned as well to deliver superior value creation. In 2022, we delivered broad-based growth with a top line increase in all five of our regions and volume growth in over 60% of our markets. Now let me take you through the operational highlights for the year from our key regions, starting with North America. In the US, we continue to transform and premiumize our portfolio. Our business delivered another year of top line growth and stable EBITDA. despite the elevated cost environment. Our above-score portfolio continued to outperform the industry this year, and combined with our Beyond Beer brands, now represents over 40% of our revenue. While industry volumes in the fourth quarter were soft, we are seeing improved performance to start 2023, with year-to-date beer industry volumes down 1%, and U.S. dollar sales up 5%,

through the 12th of February, according to IRI.