Financial Performance - In 2022, beer sales reached 88.491 million hectoliters, generating revenue of $6.478 billion[11]. - Revenue for fiscal year 2022 was $6,478 million, down 2.4% from $6,788 million in 2021[23]. - Normalized EBITDA for fiscal year 2022 decreased by 5.2% to $1,932 million, compared to $2,139 million in 2021[23]. - The gross profit margin for fiscal year 2022 was 50.0%, a decline of 279 basis points from 53.9% in 2021[23]. - Total sales for the fiscal year 2022 reached 88,491 thousand liters, a 0.7% increase from 87,878 thousand liters in 2021[23]. - Cash flow from operating activities decreased from $1,903 million in fiscal year 2021 to $1,577 million in fiscal year 2022, primarily due to reduced operating cash flow and increased income tax payments[39]. - The company reported a net cash position of $2.5 billion at the end of fiscal year 2022, an increase of $500 million from the previous year[25]. - Investment cash outflow for fiscal year 2022 was $440 million, down from $731 million in fiscal year 2021, mainly due to reduced capital expenditures and lower acquisition costs[40]. Market Performance - BEES platform covers 160 cities in China, contributing over 40% of revenue in December[5]. - Market share in South Korea increased by 150 basis points to pre-pandemic levels[5]. - The Indian market has become the fifth largest for Budweiser globally, with double-digit growth recorded in both India and South Korea[5]. - In China, total sales decreased by 3.0% due to significant impacts from pandemic restrictions, leading to a 44 basis point drop in market share[27]. - In South Korea, total sales achieved high single-digit growth, supported by a 150 basis point increase in market share[25]. - The company expanded its distribution in China from 184 cities in 2021 to 201 cities, with plans to reach over 250 cities by the end of 2025[27]. Sustainability Initiatives - The company achieved a 19.7% reduction in carbon emissions intensity per hectoliter compared to the 2017 baseline[7]. - Water usage in the Asia-Pacific region decreased by 26% compared to the 2017 baseline[7]. - The company aims to achieve net-zero emissions in its value chain by 2040[7]. - Budweiser APAC achieved a 49.6% reduction in carbon emissions intensity per hectoliter compared to the baseline year of 2017[56]. - The company reported a 26% decrease in water usage for beer production in the Asia-Pacific region, achieving 2.2 hectoliters per hectoliter[57]. - The company has deployed 369 green trucks, representing a growth of over 10% compared to 2021, as part of its green logistics strategy[56]. - Budweiser APAC's water replenishment rate in India reached 207%, contributing 16 million hectoliters of water back to surrounding communities[57]. Corporate Governance - The board consists of a balanced mix of executive and non-executive directors, currently comprising seven members[75]. - The company has implemented a "one-tier" management structure, with the board serving as the ultimate decision-making body[68]. - The board is responsible for overseeing compliance with corporate governance codes and monitoring the company's governance practices[69]. - The company emphasizes a culture of mutual respect and trust among board members, encouraging open communication and constructive feedback[67]. - The board has established committees to delegate powers and functions for effective management of daily operations[69]. - The company aims to create and share exceptional value through its strategic principles and community engagement[66]. Diversity and Inclusion - The company employs over 24,000 staff from more than 25 nationalities, with 37.2% being women[11]. - As of December 31, 2022, 42.9% of the board members are women, with three out of seven directors being female[96]. - The company has established a commitment to creating a diverse and inclusive workplace environment[98]. - The board's diversity policy has been revised to enhance gender diversity and ensure independent opinions are provided[95]. - The company has implemented a global succession planning process to develop and prepare key talent for leadership roles[97]. Risk Management - The company emphasizes a robust risk management framework, with board members possessing extensive risk management experience[145]. - The board is responsible for establishing effective internal controls and risk management systems to ensure operational efficiency and compliance[144]. - The company conducts regular reviews of its risk management framework, including quarterly assessments of the general risk environment[140]. - The company has identified key risk areas affecting business operations, including significant environmental, social, and governance risks[154]. - The internal audit team conducts annual risk assessments and develops audit plans based on these evaluations to address major risk areas[151]. Shareholder Engagement - The company encourages shareholder engagement through various communication tools, including annual and interim reports, and dedicated investor sections on its website[165]. - The company organized its first investor day in December 2022, providing shareholders and analysts direct access to management and a tour of its brewery in Seoul[166]. - The company encourages shareholder participation in the annual general meeting and allows for electronic communication to reduce resource consumption[167]. - The company has implemented effective shareholder communication policies following the approval of amendments to its articles of association in May 2022[167]. Financial Governance - The company’s financial performance and position for the reporting period are detailed in the consolidated income statement and financial position statement, respectively[173]. - The company’s compliance procedures ensure adherence to applicable laws and regulations, with no significant non-compliance reported during the period[172]. - The company’s dividend policy aims to declare at least 25% of consolidated profits attributable to equity holders, excluding special items[175]. - The board proposed a dividend of $0.0378 per share for fiscal year 2022, a 25% increase from $0.0302 per share in 2021[25].

Sales Performance - Total sales volume for the first nine months of 2022 reached 72.715 million hectoliters, an increase of 1.4% compared to the same period in 2021[3] - In the first nine months of 2022, total sales increased by 1.4%, primarily driven by strong performance in South Korea and India, partially offsetting the impact of COVID restrictions in China[22] - In Q3 2022, total sales increased by 6.3%, attributed to lower base figures in China and South Korea from Q3 2021[22] - In the Asia Pacific region, sales volume grew by 10.0% in the first nine months of 2022, with revenue increasing by 16.0% and normalized EBITDA rising by 30.2%[18] Revenue and Profitability - Revenue for the first nine months of 2022 was $5.313 billion, reflecting a growth of 4.3% year-over-year[6] - Revenue grew by 4.3% in the first nine months of 2022, with a 2.9% increase in revenue per hectoliter[23] - Revenue in the third quarter of 2022 increased by 7.2%, with a 0.8% rise in revenue per hectoliter[10] - Normalized net profit attributable to equity holders increased to $878 million, up from $872 million in the same period of 2021[7] - Normalized profit attributable to equity holders was $925 million in the first nine months of 2022, compared to $851 million in the same period of 2021[28] - Basic earnings per share increased to 7.00 cents in the first nine months of 2022 from 6.44 cents in 2021[29] EBITDA and Margins - Normalized EBITDA for the first nine months of 2022 was $1.732 billion, showing a slight increase of 0.8% from the previous year[6] - The normalized EBITDA margin in the third quarter of 2022 decreased by 175 basis points, impacted by challenges in the Chinese market[10] - Normalized EBITDA was $1,732 million in the first nine months of 2022, compared to $1,778 million in 2021[30] Cost Management - The gross profit margin decreased by 252 basis points to 50.9% due to rising commodity costs[9] - Sales cost increased by 9.9% or 8.5% per hectoliter in the first nine months of 2022, and by 14.2% or 7.4% per hectoliter in Q3 2022, primarily due to rising raw material and packaging costs[24] - Selling, general and administrative expenses decreased by 2.0% in the first nine months of 2022, and increased by 1.9% in Q3 2022, attributed to flexible cost management and business investment optimization under COVID restrictions in China[25] - The company conducted a flexible cost management strategy to navigate the challenges posed by COVID-19 restrictions, which contributed to the overall performance[25] Market and Strategic Initiatives - The company expects continued growth potential in its strategic markets, particularly in Korea and India, despite challenges in China[3] - The company implemented revenue management initiatives in Korea, contributing to revenue growth[6] - The company launched the local craft beer brand "059 Coastline" in Fujian, utilizing local ingredients and highlighting the region's cultural background[16] - In India, the beer industry has recovered to pre-pandemic levels, with double-digit growth in sales, revenue, and normalized EBITDA in Q3 2022[17] - The digital B2B platform "BEES" expanded to over 90 cities, generating net revenue exceeding RMB 1 billion, accounting for over 10% of total revenue in September 2022[15] Sustainability and Innovation - The company installed flexible solar panels at its Wuhan brewery, with a potential capacity of 5.3 MWp, expected to reduce carbon emissions by 4,000 tons annually[12] - The company is committed to sustainability and responsible drinking initiatives as part of its long-term strategy[36] - Budweiser APAC's management emphasizes the importance of innovation in product development to meet changing consumer preferences[36] Company Overview - Budweiser APAC is the largest beer company in the Asia-Pacific region, with a leading position in the premium and super premium beer segments[36] - The company operates 48 breweries across the Asia-Pacific region and employs over 25,000 staff[36] - Budweiser APAC has expanded its business into new categories such as ready-to-drink beverages, energy drinks, and spirits[36] - The company offers a portfolio of over 50 beer brands, including Budweiser, Corona, and Harbin[36] - Budweiser APAC is listed on the Hong Kong Stock Exchange under the stock code "1876" and is a constituent of the Hang Seng Index[36] - The company is a subsidiary of Anheuser-Busch InBev, which has over 600 years of brewing history[36] - Future outlook includes continued focus on premiumization and market expansion in key markets like China, Korea, India, and Vietnam[36] - The company aims to leverage its strong brand portfolio to drive growth in the competitive beverage market[36]

Financial Performance - Revenue for the first half of 2022 was $3.453 billion, reflecting a 2.7% increase from $3.477 billion in the same period of 2021[13]. - Net profit attributable to equity holders of Anheuser-Busch InBev Asia was $625 million, up from $503 million in the first half of 2021[13]. - Normalized earnings per share increased to 4.35 cents from 3.93 cents in the same period last year[13]. - The company reported a net profit of $640 million for the first half of 2022, an increase from $518 million in the same period of 2021[112]. - Basic earnings per share rose to 4.73 cents, compared to 3.80 cents for the same period last year, reflecting a growth of 24.5%[81]. - The company’s total comprehensive income for the six months ended June 30, 2022, was a loss of $149 million, compared to a profit of $419 million in the same period of 2021, indicating a significant decline[85]. - The company incurred a foreign exchange loss of $763 million related to the translation of overseas operations, compared to a loss of $133 million in the previous year[82]. Sales and Market Growth - In the first half of 2022, Budweiser APAC achieved revenue growth and profit growth despite external challenges, with a strong performance in high-end and super high-end products leading to a double-digit rebound in sales[6]. - In South Korea, the company experienced double-digit revenue growth and strong EBITDA growth due to effective pricing strategies and the lifting of restrictions in dining venues[7]. - In India, the industry has returned to pre-pandemic levels, with Budweiser's flagship brand gaining market share and high-end segment revenue doubling[7]. - The company recorded high single-digit sales growth in June 2022, driven by the recovery of demand in China as control measures were eased[6]. - The premium and super-premium product portfolio saw double-digit growth in regions less affected by COVID-19 control measures[16]. - The overall strong performance in other key markets helped offset fluctuations in the Chinese market, demonstrating the company's resilience[7]. Sustainability and ESG Initiatives - Budweiser APAC is on track to achieve its 2025 sustainability goals and aims for net-zero emissions across its value chain by 2040, with its Jinzhou brewery set to become its second carbon-neutral brewery by the end of 2022[8]. - Budweiser APAC's environmental, social, and governance (ESG) rating was upgraded to "AA" by MSCI, reflecting its leadership in sustainability among global beverage peers[8]. - The company continues to seek new opportunities to strengthen and optimize its business, aiming to be a leading beverage company with high-quality growth[8]. Operational Efficiency and Cost Management - The company’s revenue per hectoliter showed robust growth across major markets, indicating effective revenue management strategies[6]. - Sales, general, and administrative expenses decreased in the first half of 2022 due to savings from reduced business investments in China and ongoing cost control measures[24]. - Raw material and packaging costs increased, leading to a 7.7% rise in sales cost and a 9.2% increase in sales cost per hectoliter in the first half of 2022[23]. - The company continues to focus on product innovation as a pathway for future growth, with ongoing efforts in market expansion and operational efficiency[20]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2022, stood at $1.87 billion, maintaining a strong balance sheet despite external challenges[16]. - Operating cash flow for the first half of 2022 decreased by $233 million to $627 million, mainly due to reduced operating income and increased income tax payments[36]. - Cash flow used in investing activities for the first half of 2022 was $238 million, down from $370 million in the same period of 2021[37]. - Cash flow used in financing activities increased to $396 million in the first half of 2022 from $366 million in the same period of 2021, driven by increased dividends paid to shareholders and the purchase of additional treasury shares[38]. - The cash (net of debt) to normalized EBITDA ratio improved from 1.0x in the first half of 2021 to 1.5x in the first half of 2022, with cash (net of debt) increasing from $1,151 million to $1,715 million[43]. Shareholder Structure and Governance - The company has a significant concentration of ownership, with 87.22% of shares held by various entities related to Anheuser-Busch, reflecting a unified strategic direction[74]. - The financial data indicates that the company is heavily controlled by a small number of shareholders, which may impact governance and strategic decisions moving forward[72]. - The board of directors confirmed compliance with corporate governance standards, emphasizing accountability and transparency in its operations[79]. - The company has established its own trading rules for directors, which are at least as stringent as the standards set out in the Listing Rules[79]. Employee and Talent Management - The company has implemented various share incentive plans to attract and retain top talent in the Asia-Pacific region, aligning interests with shareholders[54]. - The remuneration committee has been established to review the compensation policies and structures for the board and senior management[52]. - The company emphasizes the importance of employee performance as a key factor for its success[52]. Future Outlook and Strategic Initiatives - Future guidance includes a projected revenue growth of 8% to 10% for the full fiscal year 2022[167]. - The company plans to expand its product offerings with the introduction of three new beer brands by the end of 2022[169]. - Anheuser-Busch InBev aims for a 5% increase in market share in China over the next fiscal year[166]. - The company is investing $500 million in new brewing technology to enhance production efficiency[169].

Financial Performance - Revenue for Q1 2022 reached $1,632 million, an increase of 1.5% year-over-year, driven by premiumization and active revenue management[5] - Normalized EBITDA for Q1 2022 was $570 million, up 7.6%, with an EBITDA margin increase of 198 basis points to 34.9% supported by strong sales recovery in South Korea[6] - Normalized profit attributable to equity holders increased by 28.8% to $304 million from $236 million in Q1 2021[7] - Normalized earnings per share rose to 2.30 cents from 1.79 cents in Q1 2021[10] - Normalized EBITDA increased by 15.3% to $394 million, maintaining profitability above pre-pandemic levels[24] - Budweiser APAC's profit attributable to equity holders was 302 million in Q1 2022, up from 233 million in Q1 2021, representing a growth of 29.6%[35] - Normalized EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 2022 was 570 million, compared to 528 million in Q1 2021, indicating a year-over-year increase of 7.9%[35] - The company's normalized EBIT (Earnings Before Interest and Taxes) for Q1 2022 was 394 million, up from 342 million in Q1 2021, reflecting a growth of 15.2%[35] - Basic earnings per share increased to $2.28 from $1.76, with normalized basic earnings per share rising to $2.30 from $1.79[32] - Tax expenses (excluding non-core items) decreased to 86 million in Q1 2022 from 101 million in Q1 2021, a reduction of 14.9%[35] Sales and Market Performance - Total sales volume decreased by 2.7% to 20,231 million liters, primarily due to heightened COVID control measures in China, partially offset by strong performance in South Korea[8] - The company achieved a 4.3% increase in revenue per hectoliter across major markets due to ongoing premiumization efforts[12] - In the Asia Pacific East region, revenue grew by 10.3% and sales volume increased by 6.7%, with normalized EBITDA up 45.6%[21] - In China, sales volume declined by 4.3%, significantly impacted by COVID control measures and a challenging comparison base due to the early Lunar New Year[17] - In India, the business environment improved, with strong double-digit growth in the premium and super-premium segments[20] - The company expanded its market share in both on-trade and off-trade channels in South Korea, contributing to overall revenue and profit growth in the Asia-Pacific region[11] Cost and Expenses - Cost of sales increased by 3.1% to $799 million, with cost per hectoliter rising by 6.0% due to increased raw material and packaging costs[9] - Selling, general, and administrative expenses decreased by 7.9% to $479 million, aided by flexible investment reallocations in response to COVID measures[28] Corporate Social Responsibility and Governance - The company is committed to improving its environmental, social, and governance initiatives, including a target to recycle approximately 145 tons of ocean plastic waste in 2022[15] - The company anticipates achieving gender pay equity by the end of 2022 as part of its diversity and inclusion commitments[15] Business Operations - Budweiser APAC operates 48 breweries across the Asia-Pacific region and employs over 26,000 staff[41] - The company has expanded its business into ready-to-drink beverages, energy drinks, and spirits beyond beer categories[41] - Budweiser APAC is listed on the Hong Kong Stock Exchange under the stock code "1876" and is a constituent of the Hang Seng Composite Index[41] - The management emphasizes that normalized EBITDA and EBIT are key financial metrics for monitoring the group's performance and capital structure[36] - The company aims to maintain its leadership position in the premium and super-premium beer segments in the Asia-Pacific region[41] - Budweiser APAC's financial data is adjusted to eliminate the effects of currency conversion and scope changes for a clearer understanding of underlying performance[37]

Financial Performance - Revenue for 2021 reached $6,788 million, with a normalized EBITDA growth of 27.3%[7] - Revenue grew by 14.9% to $6,788 million in fiscal year 2021, up from $5,588 million in 2020[17] - Normalized EBITDA increased by 27.3% to $2,139 million in fiscal year 2021, compared to $1,584 million in 2020[17] - The normalized EBITDA margin expanded by 308 basis points to 31.5% in fiscal year 2021[17] - In China, revenue and normalized EBITDA increased by 18.0% and 28.7% respectively in fiscal year 2021, exceeding pre-pandemic levels[19] - The company achieved a sales increase of 8.5% and revenue growth of 19.7% in China in Q4 2021, leading to a normalized EBITDA increase of 25.6%[23] - For the fiscal year 2021, the company reported an 18.0% increase in revenue and a 28.7% rise in normalized EBITDA, both exceeding pre-pandemic levels[23] - The company’s revenue for the fiscal year 2021 increased by 14.9%, with a 6.1% rise in revenue per hectoliter, attributed to the growth in premium and super-premium segments[31] Market and Sales Growth - Beer sales volume was 87,878 million liters, reflecting strong demand in the market[7] - Total volume increased by 8.3% to 87,878 million liters in the fiscal year 2021, compared to 81,115 million liters in 2020[17] - The company’s sales volume increased by 9.3% for the fiscal year 2021, driven by strong performance in high-end brands like Budweiser and Harbin Beer[23] - In South Korea, market share increased by 129 basis points in fiscal year 2021, driven by new product launches[20] - Revenue in the western Asia-Pacific region increased by 18.5% in fiscal year 2021[22] Sustainability Initiatives - The company aims for net-zero emissions across its entire value chain by 2040, with a focus on sustainability initiatives[4] - The company achieved a 15.5% reduction in CO2 emissions per hectoliter compared to the 2017 baseline year[8] - 65.1% of products are packaged using recyclable materials, with 50.1% made from recycled materials[8] - The company has reduced greenhouse gas emissions across its value chain by 15.5% compared to the baseline year of 2017[66] - The company is committed to transitioning to 100% renewable electricity (RE100) operations by 2025, aiming for net-zero emissions across its value chain by 2040[65] - The company has installed solar panels in 13 breweries across the Asia-Pacific region in 2021, with plans to install rooftop solar panels in local breweries in Korea[67] - Water usage efficiency ratio across Asia-Pacific breweries reduced to 2.34 hectoliters per hectoliter, a 22% decrease from the baseline year of 2017[70] - Over 500 water structures built in 13 villages, creating approximately 558,245 cubic meters of water storage, benefiting 35,700 people[71] Digital Transformation - Over 500,000 customers utilized the proprietary B2B digital platform BEES in 2021, with more than 10,000 retailers using its transaction features[5] - The company plans to expand its digital ecosystem to 60 new cities in 2022, enhancing growth opportunities[5] - The company plans to launch its BEES B2B platform in 60 new cities in 2022, enhancing digital solutions for wholesalers and retailers[25] Corporate Governance - The board of directors consists of a balanced mix of executive and non-executive directors, currently comprising seven members[96] - The company has adhered to the corporate governance code throughout the reporting period, ensuring compliance with applicable provisions[116] - The board is responsible for approving long-term goals and overall strategies, as well as overseeing the company's major objectives[118] - The company has a robust risk management framework to mitigate financial and market risks[148] Community Engagement and Social Responsibility - The company conducted over 73,500 hours of volunteer service across 171 events by December 31, 2021[85] - The company provided nearly 500,000 bottles of drinking water during the Henan flood relief efforts[83] - The company has donated over 1.5 million bottles of emergency drinking water since 2015[83] - The company aims to reduce harmful alcohol consumption by at least 10% by 2025, in line with WHO targets[78] Financial Position and Investments - The net cash position increased by $743 million to $2 billion at the end of fiscal year 2021[21] - Cash and cash equivalents as of December 31, 2021, were $2,007 million, up from $1,281 million as of December 31, 2020[44] - Total debt as of December 31, 2021, was $203 million, a decrease from $235 million in 2020[51] - The company’s capital expenditures for the fiscal year 2021 did not show significant changes compared to previous years[53] Strategic Priorities - The company remains committed to investing in organic growth plans and seeking strategic acquisition opportunities[21] - The company is exploring strategic acquisitions to enhance its product portfolio and market reach, with a focus on companies in the beverage sector[5] - The company will continue to focus on eight strategic priorities including climate action, water stewardship, circular packaging, smart agriculture, responsible drinking, entrepreneurship, diversity and inclusion, and ethics and transparency[93]

Financial Performance - Total sales volume for the first half of 2021 reached 45,881 thousand liters, an increase of 18.4% compared to 38,733 thousand liters in the first half of 2020[8]. - Revenue for the first half of 2021 was $3,477 million, representing a 26.0% increase from $2,575 million in the first half of 2020[8]. - Normalized EBITDA for the first half of 2021 was $1,155 million, up 53.0% from $694 million in the first half of 2020[8]. - The gross profit margin improved to 54.0% in the first half of 2021, up 313 basis points from 51.5% in the first half of 2020[8]. - The company achieved a normalized profit attributable to equity holders of $520 million in the first half of 2021, compared to $222 million in the first half of 2020[8]. - In Q2 2021, revenue for Q2 2021 was $1,851 million, reflecting a 4.2% increase from $1,619 million in Q2 2020[9]. - The company reported a profit attributable to equity holders of $503 million for the first half of 2021, compared to $185 million for the same period in 2020, representing a significant increase[80]. - The company reported a net profit of $518 million, a significant increase of 164% from $196 million in the previous year[77]. Sales Volume and Market Performance - In Q2 2021, total sales volume was 25,904 thousand liters, a slight decrease of 3.9% from 25,961 thousand liters in Q2 2020[9]. - The high-end and super high-end product lines in China saw a 9.7% increase in revenue per hectoliter, with a reported basis increase of 17.6%[14]. - Despite ongoing COVID-19 restrictions, the company achieved double-digit growth in sales and revenue in India during the first half of 2021[14]. - Total sales volume for the first half of 2021 reached 45,881 thousand liters, representing an 18.4% increase compared to the same period in 2020[11]. - Total sales volume for the Eastern Asia region in 2021 was 5,129 thousand liters, a decrease from 5,256 thousand liters in 2020[104]. - Total sales volume for the Western Asia region in 2021 was 40,752 thousand liters, an increase from 33,477 thousand liters in 2020[104]. Operational Efficiency and Investments - The company launched a proprietary B2B digital platform, BEES, in Q1 2021 to enhance operational efficiency and drive revenue growth through data insights[4]. - The company plans to build a new craft brewery in Putian, Fujian, to support the growth of its high-end product lines[20]. - Cash and cash equivalents exceeded $1.4 billion as of June 30, 2021, reflecting strong operational performance and financial discipline[14]. - Operating cash flow for the first half of 2021 increased by $353 million to $860 million, driven by a $427 million increase in operating income cash flow[34]. - The company incurred capital expenditures of $266 million for property, plant, and equipment, and intangible assets during the first half of 2021, compared to $191 million in the same period of 2020[82]. Sustainability and Corporate Responsibility - The company aims for 100% of its products to use recyclable packaging or be made from recycled materials by 2025, with initiatives already in place to reduce plastic usage[22]. - The company has implemented sustainability measures, including the use of 30 electric heavy-duty trucks and energy storage systems at breweries, aiming for carbon neutrality[22]. - The company provided over 300 oxygen machines and 8,000 basic first aid kits to local communities in India to support them during the COVID-19 pandemic[22]. Debt and Financial Management - Total debt as of June 30, 2021, was $278 million, compared to $235 million as of December 31, 2020[33]. - The company has committed financing of $150 million and uncommitted financing of $517 million available as of June 30, 2021[31]. - The company’s debt repayment schedule shows $230 million due within one year as of June 30, 2021[38]. - The group’s debt-to-equity ratio was -11.9% as of June 30, 2021, compared to -10.9% as of December 31, 2020, indicating a low level of leverage[90]. Shareholder Structure and Governance - The board consists of seven members, including both executive and non-executive directors, ensuring a balanced governance structure[43]. - The company has established a shareholder agreement that outlines the voting rights and control among major shareholders, ensuring collaborative decision-making[69]. - The ownership percentage of 87.22% suggests a strong control over the company by its major shareholders[67][68]. - The company has complied with corporate governance codes, except for the separation of roles between the Chairman and CEO[70]. Employee Compensation and Incentives - The employee compensation policy aims to provide competitive and market-leading remuneration, with a focus on performance-based incentives[46]. - The company has implemented a share incentive plan to align the interests of senior management with those of shareholders[48]. - The total number of unexercised share options as of June 30, 2021, is 67,582,856 shares, which is about 0.51% of the total issued share capital[54]. Future Outlook - The company expects a full-year revenue growth of 10% to 12% for 2021, supported by ongoing market recovery post-COVID[149]. - Anheuser-Busch InBev plans to launch three new products in the second half of 2021, targeting the premium segment of the market[152].

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].