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Risks arising from financial instruments (Tables)

12 Months Ended

Dec. 31, 2023

Summary of Financial Assets And Financial Liabilities

Set out below is an overview of financial assets and liabilities held by the company as at the dates indicated:



	31 December 2023								31 December 2022¹

Million US dollar	At amortized cost		At fair value through profit or loss		At fair value through OCI		Total		At amortized cost		At fair value through profit or loss		At fair value through OCI		Total

Cash and cash equivalents		10 332		-		-		10 332		9 973		-		-		9 973
Trade and other receivables		5 517		-		-		5 517		4 973		-		-		4 973
Investment securities		27		67		151		245		25		97		149		272
Foreign exchange derivatives		-		48		315		363		-		41		186		227
Commodities		-		-		131		131		-		-		101		101
Cross currency interest rate swaps		-		-		52		52		-		-		63		63
Interest rate swaps		-		3		-		3		-		-		-		-
Financial assets		15 876		118		649		16 642		14 971		139		498		15 608
Non-current		473		-		195		668		522		15		193		730
Current		15 403		118		454		15 975		14 450		124		305		14 878
.
Trade and other payables		21 284		741		-		22 026		21 983		762		-		22 746
Non-current interest-bearing loans and borrowings		73 592		571		-		74 163		78 880		-		-		78 880
Current interest-bearing loans and borrowings		3 987		-		-		3 987		1 029		-		-		1 029
Bank overdrafts		17		-		-		17		83		-		-		83
Equity swaps		-		4 718		-		4 718		-		4 763		-		4 763
Foreign exchange derivatives		-		18		414		432		-		20		245		265
Cross currency interest rate swaps		-		-		164		164		-		16		171		187
Commodities		-		-		145		145		-		-		271		271
Interest rate swaps		-		10		-		10		-		3		2		5
Financial liabilities		98 880		6 058		723		105 662		101 975		5 565		689		108 229
Non-current		73 920		876		151		74 947		79 108		473		168		79 749
Current		24 961		5 182		573		30 715		22 867		5 092		521		28 480

Amended to conform to 2023 pre

sentati

on.

Summary of Notional Amounts of Derivatives Outstanding at Year-end by Maturity Bucket

The table below provides an overview of the notional amounts of derivatives outstanding as at the dates indicated by maturity bucket.



	31 December 2023										31 December 2022

Million US dollar	< 1 year		1-2 years		2-3 years		3-5 years		> 5 years		< 1 year		1-2 years		2-3 years		3-5 years		> 5 years

Foreign currency
Foreign exchange forwards		13 440		105		300		-		-		11 445		479		-		-		-
Foreign currency futures		245		-		-		-		-		503		-		-		-		-

Interest rate
Interest rate swaps		580		-		-		-		-		1 000		-		-		-		-
Cross currency interest rate swaps		1 217		1 863		510		4 353		717		900		1 923		1 834		2 608		560

Commodities
Aluminum swaps		1 780		-		-		-		-		2 161		4		-		-		-
Other commodity derivatives		913		25		-		-		-		1 160		22		-		-		-

Equity
Equity derivatives		11 189		-		-		-		-		10 800		-		-		-		-

Summary of Foreign Exchange Risk on Operating Activities

The second currency of the currency pairs listed is the functional currency of the related subsidiary.



	31 December 2023						31 December 2022¹

Million US dollar	Total exposure		Total hedges		Open position		Total exposure		Total hedges		Open position

Euro/Colombian peso		(138)		65		(73)		(66)		41		(25)
Euro/Mexican peso		(99)		95		(4)		(108)		100		(8)
Euro/Pound sterling		(71)		65		(6)		(136)		112		(24)
Euro/South African rand		(99)		86		(13)		(67)		31		(36)
Mexican peso/Euro		(219)		180		(39)		(269)		268		(1)
Mexican peso/US dollar		(100)		71		(29)		(68)		50		(18)
US dollar/Argentinean peso		(437)		-		(437)		(702)		206		(496)
US dollar/Brazilian real		(1 832)		1 833		1		(1 955)		1 789		(166)
US dollar/Canadian dollar		(310)		291		(19)		(310)		249		(61)
US dollar/Chilean peso		(164)		129		(35)		(135)		129		(6)
US dollar/Chinese yuan		(87)		83		(4)		(125)		113		(12)
US dollar/Colombian peso		(546)		542		(4)		(615)		559		(56)
US dollar/Dominican peso		(108)		26		(82)		(121)		-		(121)
US dollar/Euro		(90)		100		10		(134)		111		(23)
US dollar/Mexican peso		(1 229)		1 282		53		(1 442)		1 436		(6)
US dollar/Paraguayan guarani		(157)		152		(5)		(144)		135		(9)
US dollar/Peruvian nuevo sol		(217)		209		(8)		(264)		276		12
US dollar/South African rand		(224)		189		(35)		(196)		121		(75)
US dollar/South Korean won		(146)		135		(11)		(121)		110		(11)
Others		(394)		254		(140)		(305)		240		(65)

Amended to conform to 2023 presentation.

Summary of Foreign Exchange Results Recognized on Unhedged and Hedged Exposures

Foreign exchange results recognized on hedged and unhedged exposures are as follows:



Million US dollar	2023		2022		2021
Hedged (economic hedges)		70		297		717
Not hedged		(423)		(660)		(801)
		(353)		(363)		(84)

Summary of Effective Interest Rates at Balance Sheet



31 December 2023 Interest-bearing financial liabilities Million US dollar	Before hedging				After hedging
	Effective interest rate		Amount		Effective interest rate		Amount

Floating rate
Euro		4.27%		1 086		4.27%		1 086
US dollar		6.00%		505		6.35%		789
Other		10.47%		299		11.66%		595
				1 889				2 469
Fixed rate
Canadian dollar		4.54%		625		4.37%		2 988
Chinese yuan		2.91%		57		2.49%		2 437
Euro		2.26%		21 233		2.46%		22 072
Pound sterling		5.38%		2 122		8.24%		827
South Korean won		5.49%		49		1.85%		2 209
US dollar		5.02%		50 368		5.20%		43 344
Other		8.85%		1 825		10.00%		1 820
				76 277				75 697



31 December 2022 Interest-bearing financial liabilities Million US dollar	Before hedging				After hedging
	Effective interest rate		Amount		Effective interest rate		Amount

Floating rate
Canadian dollar		-		-		4.34%		1 455
Euro		1.68%		1 048		1.68%		1 048
Pound sterling		-		-		3.70%		1 078
South Korean won		-		1		3.08%		311
US dollar		5.05%		430		-		-
Other		13.39%		252		11.17%		666
				1 730				4 557
Fixed rate
Canadian dollar		4.50%		613		4.37%		3 741
Chinese yuan		2.44%		50		2.50%		1 230
Euro		2.27%		20 391		2.31%		21 242
Pound sterling		5.13%		2 208		5.55%		1 607
South Korean won		2.96%		46		0.94%		1 896
US dollar		4.99%		53 478		5.27%		44 547
Other		10.53%		1 476		12.19%		1 172
				78 261				75 434

Summary of Interest Expense Recognized on Unhedged and Hedged Financial Liabilities

Interest expense recognized on unhedged and hedged financial liabilities are as follows:



Million US dollar	2023			2022			2021
Financial liabilities measured at amortized cost – not hedged		(3 722	)		(3 641	)		(3 836	)
Fair value hedges		(22	)		(20	)		(6	)
Cash flow hedges		28			24			17
Net investment hedges - hedging instruments (interest component)		10			(1	)		-
Economic hedges		-			42			141
		(3 705	)		(3 597	)		(3 684	)

Schedule of Commodity Derivatives Outstanding

The most significant commodity exposures are included in the table below (expressed in outstanding notional amounts):



Million US dollar	31 December 2023		31 December 2022

Aluminum		1 780		2 165
Energy		249		417
Corn		289		321
Wheat		163		127
Plastic		95		122
Rice		51		100
Sugar		91		95
		2 719		3 348

Summary of Estimated Impact on Changes in the Price of Commodities

The tables below show the estimated impact that changes in the price of the commodities, for which AB InBev held material derivative exposures would have on the equity reserves.



	2023						2022

			Pre-tax impact on equity						Pre-tax impact on equity

Million US dollar	Volatility of prices in %¹		Prices increase		Prices decrease		Volatility of prices in %¹		Prices increase		Prices decrease


Aluminum		19%		337		(337)		31%		665		(665)
Energy		52%		130		(130)		49%		206		(206)
Corn		27%		78		(78)		22%		72		(72)
Wheat		35%		56		(56)		52%		66		(66)
Plastic		15%		14		(14)		32%		25		(25)
Rice		26%		13		(13)		19%		19		(19)
Sugar		29%		26		(26)		22%		21		(21)

Sensitivity analysis is assessed based on the yearly volatility using daily observable market data during 250 days at 31 December 2023 and 31 December 2022.

Summary of Carrying Amount of Financial Assets

The carrying amount of financial assets represents the maximum credit exposure of the company. The carrying amount is presented net of the impairment losses recognized. The maximum exposure to credit risk at the reporting date was:



	31 December 2023						31 December 2022

Million US dollar	Gross		Impairment		Net carrying amount		Gross		Impairment		Net carrying amount

Cash and cash equivalents		10 332		-		10 332		9 973		-		9 973
Trade receivables		4 734		(387)		4 347		3 980		(343)		3 637
Other receivables		1 483		(74)		1 409		1 545		(68)		1 477
Derivatives		549		-		549		391		-		391
Cash deposits for guarantees		164		-		164		189		-		189
Investment in unquoted companies		151		-		151		155		(5)		149
Loans to customers		72		-		72		81		-		81
Investment in debt securities		94		-		94		123		-		123
		17 578		(462)		17 116		16 434		(416)		16 019

Summary of Allowance for Impairment

The allowance for impairment recognized during the period on financial assets was as follows:



	31 December 2023		31 December 2022		31 December 2021
Balance at end of previous year		(416)		(402)		(376)
Impairment losses		(54)		(38)		(37)
Derecognition		26		24		30
Currency translation and other		(18)		1		(19)
Balance at end of period		(462)		(416)		(402)

Summary of Nominal Contractual Maturities of Non-Derivative Financial Liabilities

The following are the nominal contractual maturities of non-derivative financial liabilities including

interest payments and derivative liabilities:



	31 December 2023

Million US dollar	Carrying amount¹		Contractual cash flows		Less than 1 year		1-2 years		2-3 years		3-5 years		More than 5 years

Non-derivative financial liabilities
Unsecured bond issues		(74 410)		(125 728)		(5 689)		(3 699)		(6 352)		(16 731)		(93 258)
Trade and other payables		(26 719)		(27 020)		(26 026)		(233)		(156)		(240)		(365)
Lease liabilities		(2 829)		(3 228)		(823)		(596)		(472)		(599)		(738)
Secured bank loans		(415)		(426)		(395)		(5)		(5)		(10)		(10)
Unsecured bank loans		(182)		(182)		(182)		-		-		-		-
Unsecured other loans		(314)		(364)		(200)		(109)		(28)		(16)		(11)
Bank overdraft		(17)		(17)		(17)		-		-		-		-
		(104 886)		(156 965)		(33 331)		(4 642)		(7 013)		(17 597)		(94 383)

Derivative financial liabilities
Equity derivatives		(4 718)		(4 718)		(4 718)		-		-		-		-
Foreign exchange derivatives		(432)		(432)		(428)		-		(4)		-		-
Cross currency interest rate swaps		(174)		(174)		(24)		(34)		(13)		(103)		-
Commodity derivatives		(145)		(145)		(145)		-		-		-		-
		(5 469)		(5 469)		(5 316)		(34)		(16)		(103)		-

Of which: related to cash flow hedges		(542)		(542)		(494)		(34)		-		(14)		-


	31 December 2022

Million US dollar	Carrying amount¹		Contractual cash flows		Less than 1 year		1-2 years		2-3 years		3-5 years		More than 5 years

Non-derivative financial liabilities
Unsecured bond issues		(76 798)		(133 670)		(3 273)		(5 683)		(3 783)		(15 482)		(105 450)
Trade and other payables		(27 208)		(27 453)		(26 376)		(170)		(349)		(260)		(297)
Lease liabilities		(2 492)		(2 840)		(618)		(566)		(414)		(531)		(712)
Secured bank loans		(393)		(405)		(371)		(5)		(5)		(10)		(14)
Unsecured bank loans		(100)		(100)		(100)		-		-		-		-
Unsecured other loans		(125)		(193)		(34)		(78)		(28)		(31)		(23)
Bank overdraft		(83)		(83)		(83)		-		-		-		-
		(107 199)		(164 745)		(30 856)		(6 501)		(4 579)		(16 313)		(106 496)

Derivative financial liabilities
Equity derivatives		(4 763)		(4 763)		(4 763)		-		-		-		-
Foreign exchange derivatives		(265)		(265)		(265)		-		-		-		-
Cross currency interest rate swaps		(192)		(191)		(9)		(43)		(47)		(62)		(30)
Commodity derivatives		(271)		(251)		(249)		(2)		-		-		-
		(5 492)		(5 471)		(5 287)		(45)		(47)		(62)		(30)

Of which: related to cash flow hedges		(551)		(530)		(469)		-		(43)		(17)		-

“Carrying amount” refers to the net book value as recognized in the statement of financial position at each reporting date.

Summary for Each Type of Derivative Fair Value Recognized as Assets and Liabilities

The following table summarizes for each type of derivative the fair values recognized as assets or liabilities in the statement of financial position:



	Assets				Liabilities				Net

	31 December		31 December		31 December		31 December		31 December		31 December

Million US dollar	2023		2022¹		2023		2022¹		2023		2022¹

Foreign currency
Foreign exchange derivatives		363		227		(432)		(265)		(70)		(38)

Interest rate
Interest rate swaps		3		-		(10)		(5)		(7)		(5)
Cross currency interest rate swaps		52		63		(164)		(187)		(112)		(124)

Commodities
Aluminum derivatives		72		52		(57)		(174)		15		(122)
Energy derivatives		30		12		(29)		(28)		1		(16)
Other commodity derivatives		29		36		(58)		(69)		(30)		(32)

Equity
Equity derivatives		-		-		(4 718)		(4 763)		(4 718)		(4 763)
		549		391		(5 469)		(5 492)		(4 920)		(5 101)
Of which:
Non-current		44		60		(151)		(184)		(107)		(124)
Current		505		331		(5 318)		(5 308)		(4 813)		(4 977)

1	Amended to conform to 2023 presentation.

Summary of Carrying Amount of Fixed Rate Interest-Bearing Financial Liabilities and Fair Value

The following table summarizes the carrying amount and the fair value of the fixed rate interest-bearing financial liabilities as recognized in the statement of financial position. Floating rate interest-bearing financial liabilities, trade and other receivables and trade and other payables, lease liabilities and derivative financial instruments have been excluded from the analysis as their carrying amount is a reasonable approximation of their fair value.



Interest-bearing financial liabilities	31 December 2023				31 December 2022

Million US dollar	Carrying amount²		Fair value		Carrying amount²		Fair value

Fixed rate
US dollar		(49 917)		(52 268)		(52 993)		(52 158)
Euro		(20 379)		(19 796)		(19 655)		(17 926)
Pound sterling		(2 069)		(2 012)		(2 148)		(2 039)
Canadian dollar		(526)		(505)		(515)		(437)
Other		(558)		(554)		(458)		(448)
		(73 449)		(75 135)		(75 769)		(73 008)

2	“Carrying amount” refers to the net book value as recognized in the statement of financial position at each reporting date.

Analysis of Financial Instruments

The table sets out the fair value hierarchy based on the degree to which significant market inputs are observable:



Fair value hierarchy 31 December 2023 Million US dollar	Quoted (unadjusted) prices - level 1		Observable market inputs - level 2		Unobservable market inputs - level 3

Financial Assets
Held for trading (non-derivatives)		-		9		-
Derivatives at fair value through profit and loss		-		51		-
Derivatives in a cash flow hedge relationship		28		381		-
Derivatives in a net investment hedge relationship		-		89		-
		28		530		-
Financial Liabilities
Deferred consideration on acquisitions at fair value		-		-		741
Derivatives at fair value through profit and loss		-		4 736		-
Derivatives in a cash flow hedge relationship		18		524		-
Derivatives in a fair value hedge relationship		-		10		-
Derivatives in a net investment hedge relationship		-		181		-
		18		5 451		741



Fair value hierarchy 31 December 2022 Million US dollar	Quoted (unadjusted) prices - level 1		Observable market inputs - level 2		Unobservable market inputs - level 3

Financial Assets
Held for trading (non-derivatives)		-		9		-
Derivatives at fair value through profit and loss		-		41		-
Derivatives in a cash flow hedge relationship		36		219		-
Derivatives in a net investment hedge relationship		-		94		-
		36		364		-
Financial Liabilities
Deferred consideration on acquisitions at fair value		-		-		762
Derivatives at fair value through profit and loss		-		4 799		-
Derivatives in a cash flow hedge relationship		26		525		-
Derivatives in a fair value hedge relationship		-		4		-
Derivatives in a net investment hedge relationship		-		138		-
		26		5 466		762

Summary of Hedging Reserve and Hedging Instruments

The company’s hedging reserves disclosed in Note 21 C

hanges in equity and earnings per share

relate to the following instruments:



Million US dollar	Foreign currency		Commodities		Others		Total hedging reserves

As per 1 January 2023		491		(476)		131		145
Change in fair value of hedging instrument recognized in OCI		(237)		(197)		-		(434)
Reclassified to profit or loss / cost of inventory		102		368		-		470
As per 31 December 2023		356		(304)		131		181


Million US dollar	Foreign currency		Commodities		Others		Total hedging reserves

As per 1 January 2022		679		(306)		111		481
Change in fair value of hedging instrument recognized in OCI		143		39		-		183
Reclassified to profit or loss / cost of inventory		(331)		(208)		22		(518)
As per 31 December 2022		491		(476)		131		145

Summary of Offsetting Financial Assets and Liabilities

The following financial assets and liabilities are subject

offsetting, enforceable

master

netting agreements

and

similar agreements:



	31 December 2023

Million US dollar	Gross amount			Net amount recognized in the statement of financial position¹			Other offsetting agreements²			Total net amount

Derivative assets		549			549			(538	)		11
Derivative liabilities		(5 469	)		(5 469	)		538			(4 931	)


	31 December 2022

Million US dollar	Gross amount			Net amount recognized in the statement of financial position¹			Other offsetting agreements²			Total net amount

Derivative assets		391			391			(381	)		10
Derivative liabilities		(5 492	)		(5 492	)		381			(5 111	)

1	Net amount recognized in the statement of financial position after taking into account offsetting agreements that meet the offsetting criteria as per IFRS rules.

2	Other offsetting agreements include collateral and other guarantee instruments, as well as offsetting agreements that do not meet the offsetting criteria as per IFRS rules.