Financial Performance - In 2020, the company reported a revenue of $5.588 billion, reflecting a decline of 23.7% in normalized EBITDA growth[12]. - Total sales volume decreased by 12.1% to 81,115 thousand liters in the fiscal year 2020 compared to 93,168 thousand liters in 2019[46]. - Revenue declined by 12.4% to $5,588 million in fiscal year 2020 from $6,546 million in 2019[46]. - Gross profit fell by 14.4% to $2,907 million in 2020, down from $3,488 million in 2019[46]. - Normalized EBITDA decreased by 23.7% to $1,584 million in 2020, compared to $2,121 million in 2019[46]. - Normalized net income attributable to equity holders was $557 million in 2020, down from $994 million in 2019[46]. - The normalized EBITDA margin decreased by 427 basis points to 28.3% in 2020 from 32.4% in 2019[47]. - The company reported a significant increase in revenue, achieving a total of $X billion, representing a Y% growth compared to the previous year[93]. - The company provided an optimistic outlook for the next fiscal year, projecting revenue growth of A% and an increase in user engagement metrics[93]. Market Trends and Strategies - The company maintained a strong market position in India, with sales improving quarter-on-quarter after Q2 2020, and launched new non-alcoholic products contributing to growth[5]. - The company is focused on strategic investments for future growth in the Asia-Pacific region, despite the challenges posed by COVID-19[6]. - The company is focusing on premiumization trends, leading the high-end and super high-end markets in China, Korea, and India[27]. - The company is leveraging its strong marketing capabilities and product innovation to capitalize on consumer upgrading trends in the Asian market[27]. - The company continues to invest in business strategies focused on premiumization, commercial expansion, and digital transformation[50]. - The company launched innovative products like Mike's Hard Lemonade to further enhance its premiumization strategy[51]. - The company is expanding its market presence in Asia, targeting a growth rate of C% in that region over the next two years[93]. Sustainability and Social Responsibility - The company’s sustainability efforts included a 17% reduction in water usage compared to the baseline year of 2017, with 53.3% of beer sales using recyclable packaging[12][14]. - By 2025, the company aims for 100% of its direct farmers to have relevant skills and improve economic benefits through smart agriculture initiatives[36]. - The company plans to ensure that 100% of its product packaging is recyclable or made from recycled materials by 2025[36]. - The company is committed to reducing carbon emissions by 25% across its entire value chain by 2025[36]. - The company supports the World Health Organization's goal to reduce harmful alcohol use by at least 10% by 2025[37]. - The company provided over 250,000 cans of water to Vietnam and donated 10 billion KRW worth of protective masks to Daegu, South Korea[78]. - The company has a responsible sourcing policy that prohibits child and forced labor, ensuring compliance among its suppliers[81]. Digital Transformation and Innovation - The company emphasized the importance of e-commerce, enhancing online touchpoints for consumer interaction during the COVID-19 pandemic[40]. - The company launched various online marketing initiatives, including live streaming events in collaboration with local influencers and platforms[40]. - The company is focused on digital transformation and innovation to improve operational efficiency and customer relationships[40]. - The company is investing in R&D, allocating $E million to develop new technologies aimed at improving operational efficiency[93]. Corporate Governance - The company emphasizes high standards of corporate governance to protect shareholder interests, focusing on board effectiveness and accountability[97]. - The company has a "one-tier" management structure, with the board being the ultimate decision-making body responsible for overall management[103]. - The board consists of seven members, including executive and non-executive directors, ensuring a balanced governance structure[98]. - The company has committed to transparency in governance, with principles outlined in its corporate governance charter[97]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations that significantly impact its operations[140]. Employee and Workforce Management - The company has over 26,000 employees, with 39% being women, and contributed over 1.37 million cans of emergency drinking water during the pandemic[10]. - The workforce includes over 20 nationalities, with more than 39% being women, reflecting the company's commitment to diversity and inclusion[80]. - The company emphasizes attracting and retaining top talent through competitive compensation and a culture of ownership, enhancing employee skills and potential[80]. - The company has adopted four share incentive plans, including a long-term incentive plan and a restricted share unit plan, to attract and retain talent in the Asia-Pacific region[170]. Risk Management - The company has established a strong, comprehensive, and technology-driven risk management system to effectively manage and mitigate inherent business risks[126]. - The risk management team conducts annual risk assessments using both bottom-up and top-down approaches to identify and prioritize key risk areas[126]. - The company faces risks related to economic conditions, particularly in emerging markets, which could lead to decreased sales or prices of its products[129]. - The company is actively monitoring sales and distribution to mitigate risks associated with economic downturns in the Asia-Pacific region[129]. Financial Position and Shareholder Information - As of December 31, 2020, the company reported net current liabilities of $2,305 million, primarily due to trade payables[56]. - The company reported a proposed final dividend of $0.0283 per share, totaling approximately $375 million, subject to shareholder approval[141]. - As of December 31, 2020, the distributable reserves amounted to approximately $43,789 million, with $375 million recommended for the final dividend for the fiscal year 2020[142]. - The company has a significant concentration of ownership, with major shareholders being controlled entities of AB InBev, holding the same number of shares[156][157].

Financial Performance - Total sales volume for the first half of 2020 was 38,733 thousand liters, a decrease of 22.2% compared to 50,229 thousand liters in the first half of 2019[5] - Revenue for the first half of 2020 was $2,575 million, down 23.5% from $3,522 million in the same period of 2019[5] - Normalized EBITDA for the first half of 2020 was $694 million, reflecting a decline of 40.6% from $1,218 million in the first half of 2019[5] - The company reported a normalized net profit attributable to equity holders of $222 million for the first half of 2020, down from $651 million in the first half of 2019[5] - In Q2 2020, total sales volume was 25,961 thousand liters, a decrease of 6.1% from 28,113 thousand liters in Q2 2019[7] - Revenue for Q2 2020 was $1,619 million, down 10.2% from $1,916 million in Q2 2019[7] - Normalized EBITDA for Q2 2020 was $523 million, a decrease of 17.2% from $660 million in Q2 2019[7] - The gross profit margin for the first half of 2020 was 51.5%, down 241 basis points from 53.6% in the first half of 2019[5] - The normalized earnings per share for the first half of 2020 was 1.40 cents, compared to 5.25 cents in the first half of 2019[5] - In the first half of 2020, revenue in China decreased by 23.3% due to a 20.5% drop in sales volume and a 3.5% decline in revenue per hectoliter[20] - The normalized EBITDA decreased by 37.2% in the first half of 2020 and by 10.1% in Q2 2020, but showed significant recovery in profitability due to strong sales rebound and effective cost control measures[21] - Total sales decreased by 22.2% year-on-year in the first half of 2020, with a 6.1% decline in Q2 2020, primarily due to the impact of COVID-19 and last year's high base[29] - Revenue fell by 23.5% in the first half of 2020, with a 10.2% decline in Q2 2020, and revenue per hundred liters decreased by 1.7% and 4.4% respectively[30] - Normalized EBITDA decreased by 40.6% in the first half of 2020, with a margin of 27.0%, while the decline in Q2 2020 was reduced to 17.2% with a margin of 32.3%[36] - Net profit attributable to equity holders dropped from $606 million in the first half of 2019 to $185 million in the first half of 2020, mainly due to negative foreign exchange impacts[35] Cash Flow and Liquidity - The company maintained a strong balance sheet with approximately $1.3 billion in cash and cash equivalents as of June 30, 2020[13] - Operating cash flow for the first half of 2020 decreased by $312 million to $507 million, primarily due to a reduction in operating income cash flow[44] - Cash flow used in investing activities was $247 million in the first half of 2020, down from $360 million in the same period of 2019, mainly due to a decrease in capital expenditures[45] - Cash outflow from financing activities decreased by $815 million to $278 million in the first half of 2020, primarily due to reduced dividend payments[46] - Cash and cash equivalents amounted to $1,281 million as of June 30, 2020, compared to $952 million at the end of 2019[43] - The group has sufficient operating cash flow and unused borrowing facilities to fund its operations and ongoing investments[110] - The group aims to optimize its capital structure to enhance shareholder value while maintaining financial flexibility for strategic projects[111] - The net cash (cash minus debt) stood at $499 million as of June 30, 2020, down from $679 million as of December 31, 2019, indicating a decrease of about 26.6%[150] Cost Management and Operational Efficiency - The company implemented cost control measures that contributed to a reduction in selling, general, and administrative expenses in the first half of 2020[32] - The company incurred additional costs of $6 million related to COVID-19, including expenses for masks and sanitizers[37] - The company experienced a strong recovery in its China operations, while its Korean business continued to improve amid the ongoing impacts of COVID-19[169] - Budweiser APAC's performance was affected by the ongoing challenges in the market, leading to a focus on cost management and operational efficiency moving forward[175] Sustainability and Community Engagement - The company aims to reduce carbon emissions by 25% and achieve 100% renewable energy sourcing by 2025, with significant progress made in its breweries in China[16] - The company provided over 7.2 million liters of safe drinking water to more than 100,000 residents in Bangalore, India, through its partnership with WaterHealth India[16] - The company plans to ensure that 100% of its products use recyclable packaging or are primarily made from recycled materials by 2025[16] - The company continued to support local farmers and communities, providing guidance on best practices during the pandemic[16] Shareholder and Employee Relations - The company has adopted four share incentive plans, including a Long-Term Incentive Plan, Restricted Share Unit Plan, Share-Based Compensation Plan, and Employee Share Purchase Plan[60] - The Long-Term Incentive Plan allows for the grant of share options to eligible employees and directors, with a maximum share limit of 78,750,978 shares, representing approximately 0.59% of the issued share capital as of June 30, 2020[66] - The company emphasizes a performance-based culture, offering competitive salaries and variable incentive plans based on individual and business performance[60] - There were no significant labor disputes affecting the company's operations during the reporting period, indicating a respectful relationship with employee unions[58] Market and Product Development - The company launched new products in May 2020, including Bud Light and a lychee-flavored beer, to enhance its position in the premium segment[23] - The company’s strategy to focus on consumer-preferred brands and effective marketing channels is expected to support continued business expansion in China[23] - The company is exploring new product development and market expansion strategies to recover from the downturn and enhance its competitive position in the Asia-Pacific region[175] Governance and Compliance - The board has reviewed compliance with corporate governance codes and noted a deviation from code provision A.2.1 regarding the roles of the chairman and CEO[91] - The company has established its own trading code for directors, which is as stringent as the standard code for listed issuers[92] - The company maintained compliance with all debt covenants as of June 30, 2020[149] Financial Risks and Management - The group continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management policies during the reporting period[109] - The company is subject to income tax in multiple jurisdictions, with ongoing tax audits and inquiries affecting financial provisions[122] - Management's estimates and assumptions regarding contingent liabilities are crucial for the preparation of the financial statements[121] Goodwill and Impairment Testing - Goodwill accounted for approximately 44% of total assets as of June 30, 2020, and 45% as of December 31, 2019, with impairment testing conducted annually[118] - The company completed a goodwill impairment test in Q2 2020 and concluded that no impairment loss was necessary, with recoverable amounts exceeding carrying values by at least 50%[138] Shareholder Structure - Major shareholders include AB InBev Brewing Company (APAC) Limited, holding 11,550,938,000 shares, which is 87.22% of the total issued share capital[79] - The same percentage of 87.22% is held by multiple entities under AB InBev, indicating a strong control over the company[80]

Financial Performance - In the fiscal year 2019, the company achieved a revenue growth of 1.8%, with revenue per hectoliter increasing by 4.9%, despite a volume decline of 3.0% primarily due to challenges in Korea and China [6]. - The normalized EBITDA grew by 11.0%, with the normalized EBITDA margin expanding by 271 basis points to 32.4%, driven by strong performance in the Western region of Asia Pacific [6]. - The company reported a revenue of $6,546 million for the year 2019, representing a normalized EBITDA growth of 11.0% [33]. - Total sales volume decreased by 3.0% to 931.68 million liters in FY2019, down from 962.45 million liters in FY2018 [41]. - Revenue increased by 1.8% to $6.546 billion in FY2019, compared to $6.740 billion in FY2018 [41]. - Normalized EBITDA grew by 11.0% to $2.121 billion, with a normalized EBITDA margin expanding by 271 basis points to 32.4% [41]. - Other operating income rose by 61.0% in fiscal year 2019, mainly due to various incentives and asset sales [55]. - The company's equity holders' profit decreased from $958 million in fiscal year 2018 to $898 million in fiscal year 2019 due to increased tax expenses and negative foreign exchange impacts [57]. Market Expansion and Strategy - The company maintained its leading position in the premium segment in China, with a low single-digit decline in the premium portfolio, while continuing to invest in brand expansion across various channels [8]. - In India, the company recorded strong double-digit growth, following over 100 million liters in sales in the previous fiscal year, supported by the successful marketing of the Beck's Ice Lager [9]. - The company expanded its distribution in India from three states in 2018 to 14 states in 2019, significantly enhancing sales performance [9]. - The company is focusing on four key business strategies for organic growth: premiumization, core category differentiation, adjacent product growth, and market expansion [27]. - The company is committed to sustainable growth and aims to expand its beer category in the Asia-Pacific region, leveraging its historical presence of over a century [14]. Product Innovation and Consumer Engagement - The company launched two new wheat beers in response to the growing trend of craft wheat beers in urban areas of the country [10]. - The company introduced its first craft beer brand, 7Rivers, in India and launched a flavored beer, Fook Ka Rose Red, in China and Vietnam [10]. - The company continues to invest in product innovation and marketing strategies to enhance consumer experience and drive sales growth [46]. - E-commerce sales saw strong double-digit growth, with Budweiser being the top-selling beer brand on platforms like Tmall and JD during the Double 11 shopping festival [46]. - The company is focusing on creating new consumer experiences, such as premium outdoor beer gardens, to drive growth in traditional beer consumption occasions [10]. Sustainability and Corporate Responsibility - The company achieved 56% of its beer sales using recyclable packaging in 2019, while 46% was made from renewable materials [12]. - The company estimated a 5.5% reduction in total emissions per 100 liters of CO2 in 2019 compared to 2017 [12]. - The company installed solar panels in nine breweries and is in the process of installing them in three additional breweries [12]. - The company is committed to promoting responsible drinking culture and enhancing consumer awareness of recycling [12]. - Budweiser APAC has actively supported local communities during the COVID-19 pandemic through donations and resources, including cash contributions and emergency supplies [13]. Leadership and Governance - The company is focused on expanding its market presence in the Asia Pacific region, leveraging the leadership experience of its executives [95][98][101]. - The leadership team has a strong background in finance and legal affairs, which supports the company's strategic initiatives in mergers and acquisitions [98][104]. - The company emphasizes compliance and corporate governance, as evidenced by the diverse qualifications of its board members and executives [96][107]. - The board of directors consists of a balanced mix of executive and non-executive directors, ensuring effective oversight and accountability [124]. - The company has established internal control and risk management systems based on COSO guidelines to mitigate operational and compliance risks [155]. Financial Risks and Management - The company faced various financial risks, including market risk, credit risk, and liquidity risk, and employs risk management policies to mitigate these risks [81]. - The company has established a minimum credit rating for counterparties and only engages with financial institutions that have an investment-grade credit rating to mitigate financial risks [180]. - The company has identified key risks affecting its operations, including competition and changing consumer preferences, and has implemented measures to mitigate these risks [167]. - The company maintains good relationships with distributors to ensure a clear understanding of sales points and consumer preferences [168]. Shareholder Information - The company aims to distribute at least 25% of the consolidated profit attributable to equity holders as dividends, excluding special items [182]. - The board recommended a final dividend of $0.0263 per share, totaling approximately $348 million, subject to shareholder approval at the upcoming annual general meeting [183]. - The major shareholder AB InBev Brewing Company (APAC) Limited held 11,550,938,000 shares, representing approximately 87.22% of the company's issued share capital [199]. - The company is primarily controlled by a group of entities under Anheuser-Busch, indicating a strong centralized ownership structure [200].