Financial Data and Key Metrics Changes - In the first nine months of 2025, total volumes decreased by 7%, revenue decreased by 6.6%, while revenue per hectoliter increased by 0.4% [6] - Normalized EBITDA decreased by 7.7%, and the normalized EBITDA margin contracted by 37 basis points [6] - In the third quarter, total volumes and revenue decreased by 8.6% and 8.4%, respectively, with normalized EBITDA decreasing by 6.9% but the normalized EBITDA margin expanding by 46 basis points [6][10] Business Line Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 7.9% and 8.7%, respectively, while normalized EBITDA decreased by 9.7% [7] - In China, volumes in the third quarter decreased by 11.4%, and revenue decreased by 15.1%, with a normalized EBITDA decrease of 17.4% [7] - In APAC East, volumes decreased by 0.5%, while revenue and revenue per hectoliter increased by 1.8% and 2.3%, respectively [11] Market Data and Key Metrics Changes - In India, the company delivered double-digit revenue growth in the third quarter, with the Budweiser brand growing ahead of the industry [10] - In South Korea, volumes were flattish, with revenue and revenue per hectoliter growing by mid-single digits [11] - The contribution of the in-home channel to total volumes and revenue has continued to increase, with premium and super premium segments outpacing traditional channels [35] Company Strategy and Development Direction - The company is focused on improving top-line performance by enhancing route-to-market strategies, increasing investments in mega brands, and leading innovation in packaging and product offerings [8][10] - There is a clear priority to reignite growth and rebuild market share momentum, particularly in China [4][5] - The company aims to expand its footprint through targeted geographic expansion and restore excellence in execution [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in China due to a soft economic cycle but emphasized opportunities for improvement in inventory management and resource allocation [4][29] - The company remains optimistic about growth in India and South Korea, with a focus on premiumization and innovation to capture market share [10][12] - Management highlighted the importance of maintaining investments in both on-trade and off-trade channels to support brand building and consumer engagement [46][68] Other Important Information - The company is actively managing inventory levels, with current inventories lower than the previous year, and is focused on optimizing its route-to-market [29] - The company is committed to upholding compliance standards amid ongoing customs disputes in South Korea and Taiwan [72][74] Q&A Session Summary Question: Brand performance in China and mega brands' trends - Management discussed the impact of in-home consumption trends and innovations in product offerings, particularly for Budweiser and Corona [16][17] Question: Demand trends in South Korea - Management noted that while the industry remains soft, there are pockets of growth in non-alcoholic and flavored beers, with a strong performance from the core portfolio [21][24] Question: Outlook for the China market - Management confirmed proactive inventory management and expressed cautious optimism for a rebound in selling performance [28][30] Question: In-home channel penetration and expansion plans - Management indicated that the in-home channel currently accounts for about 60% of the industry, with plans to increase penetration closer to industry averages [31][32] Question: Strategies for low alcohol beer market - Management highlighted ongoing innovations in non-alcoholic and low-alcohol products, particularly in South Korea, where consumer interest is growing [52][55] Question: Update on Korean customs tax dispute and Taiwan anti-dumping duties - Management provided updates on ongoing customs disputes and adjustments in tariff rates in Taiwan, emphasizing the importance of market access [72][74]

Financial Data and Key Metrics Changes - Total volumes decreased by 6.1% and revenue decreased by 5.6% in the first half of 2025, while revenue per hectoliter increased by 0.5% [8][9] - Normalized EBITDA decreased by 8% and normalized EBITDA margin contracted by 82 basis points [8][9] - In the second quarter, total volumes and revenue decreased by 6.2% and 3.9% respectively [8] Business Line Data and Key Metrics Changes - In China, volumes decreased by 7.4% in the second quarter, with revenue decreasing by 6.4% and revenue per hectoliter increasing by 1.1% [10] - In South Korea, volumes were impacted by shipment phasing, but the company continued to gain market share in both on-premise and in-home channels [6][13] - In India, the Budweiser brand grew ahead of the industry, delivering double-digit revenue growth and significant EBITDA margin improvement [13][74] Market Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 6.9% and 7.1% respectively, with normalized EBITDA decreasing by 8.8% [9] - The contribution of the in-home channel to volumes and revenue increased, with premium and super premium portfolio weights exceeding those in the Chinese restaurant channel [11] - The Indian market showed strong growth momentum, with the premium and super premium portfolio growing by double digits [74] Company Strategy and Development Direction - The company continues to invest in mega brands and focus on expanding the in-home channel while enhancing trade execution [5][20] - A channel expansion strategy is in place, focusing on premiumization in the in-home channel [11] - The company is committed to maintaining a sound balance sheet and disciplined financial practices [15] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in China, particularly in the restaurant channel, and expects volume headwinds to continue into the third quarter [20][57] - The company remains focused on enhancing execution of mega brands and expanding distribution in the in-home channel [58] - Management expressed confidence in the long-term growth potential of the Indian market, driven by premiumization and favorable regulatory changes [74] Other Important Information - The company reported a net cash position of $2.4 billion as of June 30, 2025 [15] - An internal restructuring led to a non-underlying income tax of $53 million, which is expected to have no further impact on financials [83] Q&A Session Summary Question: Impact of anti-extravagance campaign on China - Management acknowledged a slowdown in the Chinese restaurant channel and indicated that the impact would continue into the third quarter [20] Question: Update on South Korea customs tax dispute and anti-dumping duties in Taiwan - The customs tax dispute is ongoing, and management is committed to defending the matter [25] - The impact of anti-dumping duties in Taiwan is still uncertain, and management is monitoring the situation closely [27] Question: Progress on inventory destocking in China - Management reported that inventory levels are lower than the previous year and expect a more normalized base by the end of the year [32] Question: In-home channel penetration and expansion plans - The in-home channel is expected to continue growing, with plans to enhance distribution and execution [39] Question: Market share strategy in Guangdong - Management emphasized the importance of expanding coverage in the in-home channel and improving execution to regain market share [49] Question: Core plus segment performance and competition - Management acknowledged competition pressures in the core plus segment and outlined plans to enhance brand power and distribution [61] Question: Margin outlook in South Korea - Management expressed confidence in future margin recovery driven by pricing, operational efficiencies, and premiumization [71] Question: Trends in the Indian market - The Indian market is experiencing strong growth, particularly in the premium segment, with favorable regulatory changes expected to further boost growth [74]

Financial Data and Key Metrics Changes - Total volumes decreased by 6.1% and revenue decreased by 5.6% in the first half of 2025, while revenue per hectoliter increased by 0.5% [8][9] - Normalized EBITDA decreased by 8% and normalized EBITDA margin contracted by 82 basis points [8][9] - In the second quarter, total volumes and revenue decreased by 6.2% and 3.9% respectively [8] Business Line Data and Key Metrics Changes - In China, volumes decreased by 7.4% in the second quarter, with revenue decreasing by 6.4% and revenue per hectoliter increasing by 1.1% [11] - In South Korea, volumes were impacted by shipment phasing, but market share continued to grow in both on-premise and in-home channels [6][14] - In India, the Budweiser brand grew ahead of the industry, contributing to double-digit revenue growth and significant EBITDA margin improvement [14][78] Market Data and Key Metrics Changes - In APAC West, volumes and revenue decreased by 6.9% and 7.1% respectively, with normalized EBITDA decreasing by 8.8% [10] - The in-home channel's contribution to volumes and revenue increased, with premium and super premium portfolio weights exceeding those in the restaurant channel [12][42] - The Indian market continues to show strong growth momentum, with premiumization driving performance [78] Company Strategy and Development Direction - The company is focusing on investing in mega brands and expanding the in-home channel to navigate current challenges and pursue long-term growth [5][6] - A channel expansion strategy is being implemented to enhance premiumization in the in-home channel [12] - The company is committed to maintaining a sound balance sheet while pursuing disciplined financial practices and capital allocation priorities [16] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges in China, particularly in the restaurant channel, but remains focused on enhancing execution and expanding distribution [21][60] - The company expects volume headwinds to continue into the third quarter, with potential for improvement in the fourth quarter due to easier comparisons [60] - Management emphasized the importance of premiumization and innovation in driving future growth [78][81] Other Important Information - The company reported a net cash position of $2.4 billion as of June 30, 2025 [16] - An internal restructuring led to a $53 million non-underlying income tax charge, which is not expected to impact future financials significantly [87][88] Q&A Session Summary Question: Impact of anti-extravagance on the catering business in China - Management acknowledged a slowdown in the Chinese restaurant channel and indicated that the impact would continue into the third quarter, focusing on mega brand investments and in-home channel expansion [20][21] Question: Update on South Korea customs tax dispute and anti-dumping duties in Taiwan - The customs tax dispute is ongoing, with no new updates, while the impact of anti-dumping duties in Taiwan is still being assessed [26][28] Question: Progress on inventory destocking in China - Management reported proactive inventory management, with current levels lower than the previous year, and expects a more normalized base by the end of the year [35][36] Question: In-home channel penetration and expansion plans - The company sees significant opportunities in the in-home channel, with plans to enhance distribution and execution to capture market share [38][42] Question: Market share strategy following pricing hikes in Korea - Management indicated that the pricing strategy is aligned with brand strength and innovation, with a focus on maintaining commercial momentum [72][101] Question: Trends in the Indian market - The Indian market is experiencing strong growth, particularly in the premium segment, with ongoing efforts to improve productivity and capitalize on regulatory changes [78][81]