Segment reporting

6 Months Ended

Jun. 30, 2020

Segment information is presented by geographical segments, consistent with the information available to and regularly evaluated by the chief operating decision maker. AB InBev operates its business through six business segments. Regional and operating company management is responsible for managing performance, underlying risks, and the effectiveness of operations. Internally, AB InBev’s management uses performance indicators such as normalized profit from operations (normalized EBIT) and normalized EBITDA as measures of segment performance and to make decisions regarding the allocation of resources. The organizational structure effective as of 1 January 2019 comprises five regions: North America, Middle Americas, South America, EMEA and Asia Pacific. In addition to these five geographic regions, the company uses a sixth segment, Global Export and Holding Companies, for all financial reporting purposes

On 19 July 2019, AB InBev announced the agreement to divest CUB, its Australian subsidiary, to Asahi. Consequently, as at 31 December 2019, the company classified the assets and liabilities associated with the Australian operations as assets held for sale and liabilities associated with assets held for sale, respectively. In addition, since the results of the Australian operations represented a separate major line of business, these were accounted for as discontinued operations (“profit from discontinued operations”) up to 31 May 2020. The transaction closed on 1 June 2020. Accordingly, the 2019 results (referred to as “

2019 restated

”) have been restated to exclude the results of the Australian operations in accordance with IFRS 5

Non-current

Assets Held for Sale and Discontinued Operations

. See Note 15

Assets classified as held for sale, liabilities associated with assets held for sale and discontinued operations

for more details.

All figures in the tables below are stated in million US dollar, except volume (million hls) and Normalized EBITDA margin (in %). The information presented is for the

six-month

period ended 30 June 2020 and 2019, except for segment assets

(non-current)

with comparatives at 31 December 2019


	North America						Middle Americas						South America						EMEA						Asia Pacific						Global Export and Holding Companies						Consolidated
	2020			2019			2020			2019			2020			2019			2020			2019 restated			2020			2019 restated			2020			2019 restated			2020			2019 restated
Volume		52			54			52			65			63			67			34			40			39			50			—			—			240			276
Revenue		7 536			7 701			4 246			5 735			3 613			4 769			3 007			3 784			2 609			3 514			287			319			21 298			25 823
Normalized EBITDA		2 986			3 045			2 021			3 036			1 146			1 976			713			1 372			783			1 352			(287	)		(335	)		7 363			10 446
Normalized EBITDA margin %		39.6	%		39.5	%		47.6	%		52.9	%		31.7	%		41.4	%		23.7	%		36.2	%		30.0	%		38.5	%		—			—			34.6	%		40.5	%
Depreciation, amortization and impairment		(407	)		(389	)		(486	)		(441	)		(410	)		(462	)		(470	)		(485	)		(311	)		(335	)		(175	)		(155	)		(2 261	)		(2 265	)
Normalized profit from operations (EBIT)		2 579			2 656			1 535			2 595			736			1 514			243			887			472			1 017			(462	)		(490	)		5 102			8 180
Exceptional items (see Note 7)		(83	)		(1	)		(51	)		(26	)		(17	)		(13	)		(2 587	)		(17	)		(10	)		(4	)		(47	)		(43	)		(2 796	)		(103	)
Profit from operations (EBIT)		2 496			2 655			1 484			2 569			719			1 501			(2 344	)		870			462			1 013			(509	)		(533	)		2 306			8 077
Net finance income/(cost)																																						(5 592	)		(169	)
Share of results of associates and joint ventures																																						33			62
Income tax expense																																						(492	)		(1 565	)
Profit from continuing operations																																						(3 744	)		6 406
Discontinued operations																																						2 055			236
Profit/(loss)																																						(1 688	)		6 642
Segment assets (non-current)		63 322			63 725			67 989			76 168			10 807			13 452			32 477			39 447			12 751			13 450			1 886			1 592			189 233			207 834
Gross capex		(225	)		(182	)		(350	)		(471	)		(387	)		(288	)		(301	)		(425	)		(191	)		(236	)		(126	)		(107	)		(1 580	)		(1 709	)

For the

six-month

period ended 30 June 2020, net revenue from the beer business amounted to 19 510m US dollar (30 June 2019: 23 673m US dollar) while the net revenue from the

non-beer

business (soft drinks and other business) accounted for 1 807m US dollar (30 June 2019: 2 150m US dollar). Additionally, for the

six-month

period ended 30 June 2020, net revenue from the company’s business in the United States amounted to 6 675m US dollar (30 June 2019: 6 833m US dollar) and net revenue from the company’s business in Brazil amounted to 2 641m US dollar (30 June 2019: 3 516m US dollar)