SEC Info - Anheuser-Busch InBev SA/NV - ‘6-K’ for 6/30/22

The following is a review of our financial condition and results of operations as of 30 June 2022 and for the

six-month

periods ended 30 June 2022 and 2021, and of the key factors that have affected or are expected to be likely to affect our ongoing and future operations.

This document includes information from the previously published results announcement and unaudited interim report of Anheuser-Busch InBev SA/NV for the

six-month

period ended 30 June 2022, as amended to comply with the requirements of Regulation G and Item 10(e) of Regulation

S-K

promulgated by the U.S. Securities and Exchange Commission (“SEC”). The purpose of this document is to provide such additional disclosure as may be required by Regulation G and Item 10(e) and to delete certain information not in compliance with SEC regulations. This document does not update or otherwise supplement the information contained in the previously published results announcement and unaudited interim report.

Some of the information contained in this discussion, including information with respect to our plans and strategies for our business and our expected sources of financing, contain forward-looking statements that involve risk and uncertainties. You should read “Forward-Looking Statements” below for a discussion of the risks related to those statements. You should also read “Item 3. Key Information—D. Risk Factors” of our Annual Report on Form

20-F

for the year ended 31 December 2021 filed with the SEC on 18 March 2022 (“

2021

Annual Report

”) for a discussion of certain factors that may affect our business, financial condition and results of operations. See “Presentation of Financial and Other Data” in our 2021 Annual Report for further information on our presentation of financial information.

We have prepared our interim unaudited condensed consolidated financial statements as of 30 June 2022 and for the

six-month

period ended 30 June 2022 and 2021 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board and in conformity with International Financial Reporting Standards as adopted by the European Union (“

IFRS

”). The financial information and related discussion and analysis contained in this report are presented in U.S. dollars except as otherwise specified. Unless otherwise specified the financial information analysis in this Form

6-K

is based on interim unaudited condensed financial statements as of 30 June 2022 and for the

six-month

period ended 30 June 2022 and 2021. The reported numbers as of 30 June 2022 and for the

six-month

period ended 30 June 2022 and 2021 are unaudited, and in the opinion of management, include all normal adjustments that are necessary to present fairly the results for the interim periods. Due to seasonal fluctuations and other factors, the results of operations for the

six-month

period ended 30 June 2022 and 2021 are not necessarily indicative of the results to be expected for the full year. Certain monetary amounts and other figures included in this report have been subject to rounding adjustments. Accordingly, any discrepancies in any tables between the totals and the sums of amounts listed are due to rounding.

Anheuser-Busch InBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with secondary listings on the Mexico (MEXBOL: ANB) and South Africa (JSE: ANH) stock exchanges and with American Depositary Receipts on the New York Stock Exchange (NYSE: BUD). As a company, we dream big to create a future with more cheers. We are always looking to serve up new ways to meet life’s moments, move our industry forward and make a meaningful impact in the world. We are committed to building great brands that stand the test of time and to brewing the best beers using the finest natural ingredients. Our diverse portfolio of well over 500 beer brands includes global brands Budweiser

, Corona

and Stella Artois

; multi-country brands Beck’s

, Hoegaarden

, Leffe

and Michelob Ultra

; and local champions such as Aguila

, Antarctica

, Bud Light

, Brahma

, Cass

, Castle

, Castle Lite

, Cristal

, Harbin

, Jupiler

, Modelo Especial

, Quilmes

, Victoria

, Sedrin

and Skol

. Our brewing heritage dates back more than 600 years, spanning continents and generations. From our European roots at the Den Hoorn brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa during the Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately 169 000 employees based in nearly 50 countries worldwide. For 2021, AB InBev’s reported revenue was 54.3 billion US dollar (excluding joint ventures and associates).

Capitalized terms used herein and not defined have the meanings given to them in the 2021 Annual Report.

Forward-Looking Statements

There are statements in this document, such as statements that include the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “anticipate,” “estimate,” “project,” “may,” “might,” “could,” “believe,” “expect,” “plan,” “potential,” “we aim,” “our goal,” “our vision,” “we intend” or similar expressions that are forward-looking statements. These statements are subject to certain risks and uncertainties. Actual results may differ materially from those suggested by these statements due to, among others, the risks or uncertainties listed below. See also “Item 3. Key Information—D. Risk Factors” of our 2021 Annual Report for further discussion of risks and uncertainties that could impact our business.

These forward-looking statements are not guarantees of future performance. Rather, they are based on current views and assumptions and involve known and unknown risks, uncertainties and other factors, many of which are outside our control and are difficult to predict, that may cause actual results or developments to differ materially from any future results or developments expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include, among others:

•

the effects of the COVID-19 pandemic and uncertainties about its impact and duration;

•

local, regional, national and international economic conditions, including the risks of a global recession or a recession in one or more of our key markets, and the impact they may have on us and our customers and our assessment of that impact;

•

financial risks, such as interest rate risk, foreign exchange rate risk (in particular as against the U.S. dollar, our reporting currency), commodity risk, asset price risk, equity market risk, counterparty risk, sovereign risk, liquidity risk, inflation or deflation, including inability to achieve our optimal net debt level;

•

the ongoing conflict between Russia and Ukraine and related instability in the Ukraine region, which has resulted in and may continue to result in volatile commodity markets, supply chain disruptions and inflation, and may adversely affect our operations;

•

continued geopolitical instability, which may result in, among other things, economic and political sanctions and currency exchange rate volatility, and which may have a substantial impact on the economies of one or more of our key markets;

•

changes in government policies and currency controls;

•

continued availability of financing and our ability to achieve our targeted coverage and debt levels and terms, including the risk of constraints on financing in the event of a credit rating downgrade;

•

the monetary and interest rate policies of central banks, in particular the European Central Bank, the Board of Governors of the U.S. Federal Reserve System, the Bank of England,

Banco Central do Brasil, Banco Central de la República Argentina

, the Central Bank of China, the South African Reserve Bank,

Banco de la República

in Colombia, the Bank of Mexico and other central banks;

•

changes in applicable laws, regulations and taxes in jurisdictions in which we operate, including the laws and regulations governing our operations and changes to tax benefit programs, as well as actions or decisions of courts and regulators;

•

limitations on our ability to contain costs and expenses;

•

our expectations with respect to expansion plans, premium growth, accretion to reported earnings, working capital improvements and investment income or cash flow projections;

•

our ability to continue to introduce competitive new products and services on a timely, cost-effective basis;

•

the effects of competition and consolidation in the markets in which we operate, which may be influenced by regulation, deregulation or enforcement policies;

•

changes in consumer spending;

•

changes in pricing environments;

•

volatility in the availability or prices of raw materials, commodities and energy;

•

difficulties in maintaining relationships with employees;

•

regional or general changes in asset valuations;

•

greater than expected costs (including taxes) and expenses;

•

the risk of unexpected consequences resulting from acquisitions, joint ventures, strategic alliances, corporate reorganizations or divestiture plans, and our ability to successfully and cost-effectively implement these transactions and integrate the operations of businesses or other assets we have acquired;

•

the outcome of pending and future litigation, investigations and governmental proceedings;

•

natural and other disasters, including widespread health emergencies, cyberattacks and military conflict and political instability;

•

any inability to economically hedge certain risks;

Management Comments

Continued momentum

with

double-digit top-line growth

We delivered top-line growth of 11.3%

, comprised of 3.4%

volume and 7.5%

revenue per hl growth in the second quarter of 2022, driven by revenue management initiatives, ongoing premiumization and expansion of the beer category across most of our key markets supported by increased investment in our brands. Normalized EBITDA increased by 7.2%

in the second quarter of 2022 compared to the same period in 2021, despite anticipated commodity and supply chain cost headwinds.

At the recent 2022 Cannes Lions International Festival of Creativity, we were awarded 50 Lions, a record high for our company.

Consistent execution of our strategy

We continue to execute on and invest in three key strategic pillars to deliver consistent growth and long-term value creation.

•

Lead and grow the category

: We are executing on five proven and scalable levers to drive category expansion:

•

Inclusive Category

: In the first six months of 2022, participation of consumers with our portfolio increased in the majority of our key markets according to our estimates, driven by brand, pack and liquid innovations. For example, in Colombia we further scaled our local easy-drinking lager brand, Costeña Bacana, with growth driven primarily by legal drinking age consumers between 18-24 years old. In Brazil, the combination of our digital direct-to-consumer (DTC) platform, Zé Delivery, and 300ml returnable glass bottles are driving in-home consumption.

•

Core Superiority

: In the first six months of 2022, our mainstream portfolio continued to outperform the industry across most of our key markets according to our estimates and delivered high-single digit

revenue growth, led by particularly strong performances in Brazil, Mexico and Colombia.

•

Occasions Development

: Our global brand Stella Artois grew revenue by 7.7%

outside of its home market, led by the focus on meal occasions in key markets such as Brazil and Colombia. We continue to grow our non-alcoholic beer portfolio with the successful expansion of Corona Sunbrew in Canada.

•

Premiumization

: Our above core portfolio grew revenue by approximately 12%

in the second quarter of 2022, led by continued double-digit

growth of Michelob ULTRA in the US and Mexico and expansion of Spaten in Brazil. Our global brands grew revenue by 9.7%

outside of their home markets, led by Corona with 18.2%

and Stella Artois with 7.7%

. Budweiser grew by 6.1%

, despite the impact of COVID-19 restrictions in China, the brand’s largest market.

•

Beyond Beer

: Our global Beyond Beer business contributed over USD 425 million of revenue in the second quarter of 2022. In the US, within the spirits-based-ready-to-drink segment, our portfolio continued to grow ahead of the industry led by Cutwater and NÜTRL vodka seltzer. In South Africa, Brutal Fruit and Flying Fish delivered continued double-digit

volume growth in the second quarter of 2022 compared to the same period in 2021.

•

Digitize and monetize our ecosystem

•

Digitizing our relationships with our more than 6 million customers globally

: In the second quarter of 2022, the BEES platform captured approximately USD 7.4 billion in gross merchandise value (GMV) with over 24 million orders placed, growth of over 60% and 40% respectively versus the second quarter of 2021. Our e-commerce platform for sales of third-party products, BEES Marketplace, is now live in 12 countries with 40% of BEES customers now also Marketplace buyers.

1	Excluding the effects of the 2021 and 2022 acquisitions and disposals, currency translation effects and changes in classification of commercial arrangements, see “—Revenue” below.

2	Excluding volume changes attributable to the 2021 and 2022 acquisitions and disposals and transfers of businesses, see “—Volumes” below.

3	For a discussion of how we use Normalized EBITDA, and its limitations, and a table showing the calculation of our Normalized EBITDA, for the periods shown, see “—Normalized EBITDA” below.

•

Leading the way in

DTC solutions

: Our omni-channel direct-to-consumer (DTC) ecosystem of digital and physical DTC products generated revenue of approximately USD 385 million in the second quarter of 2022. Our digital DTC brands generated over 16 million orders in the quarter, led by Zé Delivery in Brazil and the continued expansion of our on-demand platform in 10 additional markets in Latin America.

•

Optimize our business

: In the first six months of 2022, we continued to efficiently allocate resources across our operations. This enabled further investment behind the organic growth of our business with over USD 5.3 billion in capex and sales and marketing, focused on capacity and capabilities to lead and grow the category, marketing creativity and accelerating digital transformation. Our gross debt reduced from USD 88.8 billion as of 31 December 2021 to USD 83.3 billion as of 30 June 2022, leading to a net debt to Normalized EBITDA ratio of 3.86x. Our net interest expense decreased by USD 134 million versus the first six months of 2021, principally as a result of our gross debt reduction efforts.

Advancing our ESG priorities

We continue to advance our ESG agenda. In June, we commenced operations in our first EverGrain facility in St. Louis, upcycling barley used in the brewing process into high quality, sustainable protein ingredients with an annual capacity of 7 thousand tons. To drive sustainable innovation at scale, this quarter we brought together more than 250 supply chain partners with the launch of our global collaboration initiative Eclipse and, along with our CPG partners, we hosted the 3rd annual demo day of our 100+ Accelerator program. During the event, 34 startups showcased solutions to our sustainability challenges across water stewardship, climate action, smart agriculture, circular packaging and upcycling.

Creating a future with more cheers

Our business continues to build momentum and deliver consistent profitable growth even in the context of the ongoing dynamic operating environment. Our best-in-class portfolio of brands, accelerated digital transformation and global ecosystem continue to provide a unique platform that positions us well to lead and grow the beer category and drive superior long-term value creation.

Other topics

On 11 March 2022, the company announced that it is forfeiting all financial benefits from the operations of AB InBev Efes, an associate which does business in Russia and Ukraine, in which it holds a 50% non-controlling stake and which the company does not consolidate. On 22 April 2022, the company announced its decision to sell its non-controlling interest in AB InBev Efes and is in active discussions with its partner, Turkish Brewer Anadolu Efes, to acquire this interest. AB InBev’s request regarding the suspension of the license for production and sale of Bud in Russia will also be part of a potential transaction. During the six-month period ended 30 June 2022, the company derecognized the investment in AB InBev Efes and reported a USD 1,143 million non-cash impairment charge in exceptional share of results of associates.

Results of Operations for the

Six-Month

Period Ended 30 June 2022 Compared to

Six-Month

Period Ended 30 June 2021

Brazilian tax credits

In the

six-month

period ended 30 June 2022, Ambev, our subsidiary, recognized USD 201 million income in Other operating income related to tax credits in Brazil. Additionally, Ambev recognized USD 113 million of interest income in Finance income related to these credits for the

six-month

period ended 30 June 2022. In the six-month period ended 30 June 2021, Ambev recognized USD 226 million income in Other operating income and USD 76 million of interest income in Finance income related to tax credits in Brazil.

The table below presents our condensed consolidated results of operations for the

six-month

periods ended 30 June 2022 and 2021.


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million, except volumes)						(%) (1)
Volumes (thousand hectoliters)		289,074			280,398			3.1
Revenue		28,027			25,832			8.5
Cost of sales		(12,784	)		(10,963	)		(16.6	)
Gross profit		15,243			14,869			2.5
Selling, General and Administrative expenses		(8,616	)		(8,571	)		(0.5	)
Other operating income/(expenses)		478			470			1.7
Exceptional items		(105	)		(217	)		51.6
Profit from operations		7,000			6,551			6.9

Normalized EBITDA (2)		9,583			9,114			5.1

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

(2)	For a discussion of how we use Normalized EBITDA and its limitations, and a table showing the calculation of our Normalized EBITDA, for the periods shown, see “—Normalized EBITDA” below.

Volumes

Our reported volumes include beer, beyond beer, and

non-beer

(primarily carbonated soft drinks) volumes. In addition, volumes include not only brands that we own or license, but also third-party brands that we brew or otherwise produce as a subcontractor and third-party products that we sell through our distribution network, particularly in Europe. Volumes sold by the Global Export and Holding Companies businesses are shown separately.

The table below summarizes the volume evolution by business segment.


	Six-month period ended 30 June 2022		Six-month period ended 30 June 2021		Change

	(thousand hectoliters)				(%) (1)
North America		51,448		53,252		(3.4	)
Middle Americas		72,024		67,980		5.9
South America		76,815		71,929		6.8
EMEA		42,962		40,540		6.0
Asia Pacific		45,385		46,081		(1.5	)
Global Export and Holding Companies		440		615		(28.5	)

Total		289,074		280,398		3.1

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our consolidated volumes for the

six-month

period ended 30 June 2022 increased by 8.7 million hectoliters, or 3.1%, to 289.1 million hectoliters compared to our consolidated volumes for the

six-month

period ended 30 June 2021. The results for the

six-month

period ended 30 June 2022 reflect the performance of our business after the completion of certain acquisitions and disposals we undertook in 2021 and 2022.

The 2021 and 2022 acquisitions and disposals include acquisitions and disposals which were individually not significant (collectively the “acquisitions and disposals”) and had no significant impact on our volumes for the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021.

Excluding volume changes attributable to the acquisitions and disposals, our own beer volumes increased 2.4% in the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021. On the same basis, in the

six-month

period ended 30 June 2022, our

non-beer

volumes increased 7.1% compared to the same period in 2021.

North America

In the

six-month

period ended 30 June 2022, our volumes in North America decreased by 1.8 million hectoliters, or 3.4%, compared to the

six-month

period ended 30 June 2021.

In the United States, our

sales-to-wholesalers

(“STWs”) declined by 3.2% and our

sales-to-retailers

(“STRs”) declined by 3.9%. The beer industry remained resilient even in the context of a higher inflationary environment. Despite underperforming the industry, we remain confident in our commercial strategy to rebalance our portfolio toward faster growing segments. Our above core beer and spirits-based-ready-to-drink portfolios outperformed the industry, led by Michelob ULTRA which grew by double digits and Cutwater and NÜTRL vodka seltzer, which grew strong double-digits.

In Canada, our beer volume outperformed a soft industry this quarter, led by our core portfolio.

Middle Americas

In the

six-month

period ended 30 June 2022, our volumes in Middle Americas increased by 4.0 million hectoliters, or 5.9%, compared to the

six-month

period ended 30 June 2021.

In Mexico, our volumes grew by

mid-single

digits, outperforming the industry, supported by ongoing channel and portfolio expansion. Our performance was driven by ongoing portfolio development, channel expansion and digital transformation. Our core brands delivered mid-single digit volume growth and our above core portfolio once again grew by double digits, led by Modelo and Michelob ULTRA. We continue to expand our distribution footprint, with the opening of over 150 new Modelorama stores and the continuation of the OXXO rollout, expanding into approximately 800 additional stores. Over 60% of our BEES customers are now also BEES Marketplace buyers.

In Colombia, our volumes grew by low teens, driven by the execution of our category expansion levers and supported by a favorable comparable. We continue to grow the beer category again delivering a new record high per capita consumption in the first half of 2022. Our premium and super premium portfolio reached an

all-time

high volume, delivering over 40% volume growth led by our global brands and local premium brand, Club Colombia. More than 30% of our BEES customers are now also BEES Marketplace buyers.

In Peru, we delivered

mid-teens

volume growth in the first half of 2022, driven by ongoing portfolio transformation, route to market expansion and supported by continued post

COVID-19

recovery. Over 50% of BEES customers are now also BEES Marketplace buyers.

In Ecuador, we delivered

low-teens

volume growth in the first half of 2022, supported by continued expansion of the beer category and post COVID-19 recovery. 60% of BEES customers are now also BEES Marketplace buyers.

South America

In the

six-month

period ended 30 June 2022, our volumes in South America increased by 4.9 million hectoliters, or 6.8%, compared to the

six-month

period ended 30 June 2021, with our beer volumes increasing 3.7% and soft drinks increasing 15.4%.

Excluding volume changes attributable to the acquisitions and disposals and transfers of businesses from the Global Export and Holding Companies, our total volumes increased by 6.6% in the

six-month

period ended 30 June 2022, compared to the same period last year.

In Brazil, our total volume grew by 7.9% with beer volumes up by 5.2% and

non-beer

volumes up by 16.5% in the first six months of 2022 compared to the same period last year. Our beer volumes once again outperformed the industry according to our estimates. Our premium and super premium brands delivered high-teens volume growth. Our core portfolio continued its momentum, increasing volumes by high single digits and we continued to invest behind developing our core plus brands. Over 60% of our BEES customers are now also BEES Marketplace buyers. Our DTC platform, Zé Delivery, fulfilled almost 15 million orders in the second quarter of 2022, and has reached 4.2 million monthly active users.

In Argentina, we reported a

low-single

digit volume growth.

EMEA

In EMEA, our volumes, including subcontracted volumes, for the

six-month

period ended 30 June 2022 increased by 2.4 million hectoliters, or 6.0%, with our own beer volumes increasing by 5.7%, compared to the

six-month

period ended 30 June 2021.

In Europe, our volumes grew by

low-single

digit. Our growth in the second quarter of 2022 was led by our global and super premium brands, which delivered high-single digit revenue growth. Our DTC product, PerfectDraft, expanded the active shopper base by more than 25% versus the second quarter of 2021.

In South Africa, volumes grew by

low-teens.

In the second quarter of 2022, our operations were impacted by significant production constraints due to floods impacting our Prospecton brewery. Underlying demand for our portfolio remains strong. Driven by BEES, digital channels now represent 91% of our revenues.

In Africa excluding South Africa, volumes were lower in Nigeria due to ongoing supply chain constraints. In other key markets, we continue to see strong consumer demand for our brands with double digit volume growth in Tanzania and Zambia and a

low-single

digit volume growth in Uganda in the first six months of 2022.

Asia Pacific

For the

six-month

period ended 30 June 2022, our volumes decreased by 0.7 million hectoliters, or 1.5%, compared to the

six-month

period ended 30 June 2021.

In China, the total industry declined

mid-single

digits, due to COVID-19 restrictions. The restrictions disproportionately impacted our key regions and sales channels, resulting in a 5.5% total volume decline, underperforming the industry according to our estimates. The operating environment gradually improved throughout the second quarter of 2022 resulting in volume growth of high-single digits in June year-over-year. Underlying consumer demand for our brands remained strong. As restrictions eased in June 2022, both our premium and super premium portfolios returned to volume growth increasing by double-digits.

In South Korea, volumes grew by high-single digits in the first six months of 2022, supported by further market share gains in both the

on-premise

and

in-home

channels and continued improvement in the operating environment.

Global Export & Holding Companies

For the

six-month

period ended 30 June 2022, Global Export and Holding Companies volumes decreased by 0.2 million hectoliters, or 28.5% compared to the same period last year.

Excluding transfer of businesses mainly to the South America zone, our total volumes increased by 6.9% in the

six-month

period ended 30 June 2022, compared to the same period last year.

Revenue

The following table reflects changes in revenue across our business segments for the

six-month

period ended 30 June 2022 as compared to our revenue for the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022		Six-month period ended 30 June 2021		Change

	(USD million)				(%) (1)
North America		8,192		8,040		1.9
Middle Americas		6,693		5,893		13.6
South America		5,333		4,146		28.6
EMEA		3,940		3,763		4.7
Asia Pacific		3,471		3,500		(0.8	)
Global Export & Holding Companies		399		491		(18.7	)

Total		28,027		25,832		8.5

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our consolidated revenue was USD 28,027 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 2,195 million, or 8.5%, compared to our consolidated revenue for the

six-month

period ended 30 June 2021 of USD 25,832 million. The results for the

six-month

period ended 30 June 2022 reflect (i) the performance of our business after the completion of certain acquisitions and disposals we undertook in 2021 and 2022, (ii) currency translation effects and (iii) changes in classification of commercial arrangements.

•

The 2021 and 2022 acquisitions and disposals and changes in classification of commercial arrangements negatively impacted our consolidated revenue by USD 229 million for the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021.

•

Our consolidated revenue for the

six-month

period ended 30 June 2022 also reflects a negative currency translation impact of USD 514 million mainly arising from currency translation effects in EMEA, Middle Americas and South America.

Excluding the effects of the acquisitions and disposals, changes in classification of commercial arrangements and currency translation effects, our revenue increased 11.5% and by 7.9% on a per hectoliter basis in the

six-month

period ended 30 June 2022 compared to the same period in 2021. Our consolidated revenue for the

six-month

period ended 30 June 2022 was partially impacted by the increase in volumes discussed above. On the same basis, our revenue on a per hectoliter basis for the

six-month

period ended 30 June 2022 increased compared to the same period in 2021, driven by revenue management initiatives, ongoing premiumization and expansion of the beer category across most of our key markets.

The increase in our revenue per hectoliter in the

six-month

period ended 30 June 2022 was most significant in South America, primarily driven by double-digit revenue per hectoliter growth in Argentina, driven primarily by revenue management initiatives in a highly inflationary environment and Brazil driven by the consistent execution of our strategic priorities, continued recovery of out of home consumption occasions and channel expansion, in Middle Americas, driven primarily by revenue management initiatives and in EMEA, driven by revenue management initiatives, ongoing premiumization and continued

on-premise

recovery.

On the same basis, combined revenues of our global brands, Budweiser, Stella Artois and Corona, increased by 7.9% outside their home markets in the

six-month

period ended 30 June 2022 compared to the same period of 2021.

Cost of Sales

The following table reflects changes in cost of sales across our business segments for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
North America		(3,349	)		(3,080	)		(8.7	)
Middle Americas		(2,625	)		(2,055	)		(27.7	)
South America		(2,792	)		(2,091	)		(33.5	)
EMEA		(2,000	)		(1,796	)		(11.4	)
Asia Pacific		(1,655	)		(1,555	)		(6.4	)
Global Export & Holding Companies		(362	)		(385	)		6.0

Total		(12,784	)		(10,963	)		(16.6	)

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our consolidated cost of sales was USD 12,784 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 1,821 million, or 16.6% compared to our consolidated cost of sales for the

six-month

period ended 30 June 2021. The results for the

six-month

period ended 30 June 2022 reflect (i) the performance of our business after the completion of certain acquisitions and disposals we undertook in 2021 and 2022 and (ii) currency translation effects.

•

The 2021 and 2022 acquisitions and disposals positively impacted our consolidated cost of sales by USD 3 million for the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021.

•

Our consolidated cost of sales for the

six-month

period ended 30 June 2022 also reflects a positive currency translation impact of USD 224 million mainly arising from currency translation effects in EMEA, Middle Americas and Asia Pacific.

Excluding the effects of the acquisitions and disposals and currency translation effects, our cost of sales increased by USD 2,049 million or 18.7%. Our consolidated cost of sales for the

six-month

period ended 30 June 2022 was partially impacted by increase in volumes discussed above. On the same basis, our consolidated cost of sales per hectoliter increased by 14.9%. This was primarily driven by anticipated commodity headwinds. The increase in cost of sales per hectoliter was most significant in South America, with Argentina in a high inflationary environment and Middle Americas.

Operating Expenses

The discussion below relates to our operating expenses, which equal the sum of our distribution, sales and marketing expenses, administrative expenses and other operating income and expenses (net), for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021. Our operating expenses do not include exceptional charges, which are reported separately.

Our operating expenses for the

six-month

period ended 30 June 2022 were USD 8,138 million, representing an increase of USD 37 million, or 0.5%, compared to our operating expenses for the same period in 2021.


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
Selling, General and Administrative expenses		(8,616	)		(8,571	)		(0.5	)
Other operating income/(expenses)		478			470			1.7

Total Operating Expenses		(8,138	)		(8,101	)		(0.5	)

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Selling, General and Administrative Expenses

The following table reflects changes in our distribution expenses, sales and marketing expenses and administrative expenses (our “selling, general and administrative expenses”) across our business segments for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
North America		(2,279	)		(2,350	)		3.0
Middle Americas		(1,631	)		(1,577	)		(3.4	)
South America		(1,609	)		(1,254	)		(28.3	)
EMEA		(1,341	)		(1,496	)		10.4
Asia Pacific		(999	)		(1,126	)		11.3
Global Export & Holding Companies		(756	)		(769	)		1.7

Total		(8,616	)		(8,571	)		(0.5	)

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our consolidated selling, general and administrative expenses were USD 8,616 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 45 million, or 0.5%, as compared to the

six-month

period ended 30 June 2021. The results for the

six-month

•

The 2021 and 2022 acquisitions and disposals and changes in classification of commercial arrangements positively impacted our consolidated selling, general and administrative expenses by USD 213 million on a net basis for the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021.

•

Our consolidated selling, general and administrative expenses for the

six-month

period ended 30 June 2022 also reflects a positive currency translation impact of USD 188 million mainly arising from currency translation effects in EMEA, Middle Americas and Asia Pacific.

Excluding the effects of the acquisitions and disposals and currency translation effects, our consolidated selling, general and administrative expenses increased by 5.3% due primarily to elevated supply chain costs.

Other operating income/(expense)

The following table reflects changes in other operating income and expenses across our business segments for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021		Change

	(USD million)					(%) (1)
North America		28			15		86.7
Middle Americas		(12	)		5		—
South America		312			287		8.7
EMEA		88			92		(4.3	)
Asia Pacific		67			64		4.7
Global Export & Holding Companies		(5	)		7		—

Total		478			470		1.7

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

The net positive effect of our consolidated other operating income and expenses was USD 478 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 8 million, as compared to the

six-month

period ended 30 June 2021. The results for the

six-month

period ended 30 June 2022 reflect (i) the performance of our business after the completion of certain acquisitions and disposals we undertook in 2021 and 2022, (ii) the 2021 and 2022 Brazilian tax credits, and (iii) currency translation effects.

•

The 2021 and 2022 acquisitions and disposals and the Brazilian tax credits negatively impacted our net consolidated other operating income and expenses by USD 18 million on a net basis for the

six-month

period ended 30 June 2022 compared to the

six-month

period ended 30 June 2021.

•

Our net consolidated other operating income and expenses for the

six-month

period ended 30 June 2022 had no significant currency translation impact.

Excluding the effects of the business acquisitions and disposals, Brazilian tax credits and currency translation effects, our net consolidated other operating income and expenses increased by 9.3%, mainly driven by higher government grants.

Exceptional Items

Exceptional items are items which, in our management’s judgment, need to be disclosed separately by virtue of their size and incidence in order to obtain a proper understanding of our financial information. We consider these items to be significant in nature.

For the

six-month

period ended 30 June 2022, exceptional items included in profit from operations consisted of

COVID-19

costs, restructuring charges, business and asset disposal (including impairment losses) and AB InBev Efes related costs. Exceptional items were as follows for

six-month

period ended 30 June 2022 and 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021

	(USD million)
COVID-19 costs		(13	)		(54	)
Restructuring		(51	)		(97	)
Business and asset disposal (including impairment losses)		6			14
Acquisition costs / Business combinations		—			(6	)
AB InBev Efes related costs		(47	)		—
Zenzele Kabili costs		—			(73	)

Total		(105	)		(217	)

COVID-19

costs

Cost associated with

COVID-19

pandemic amounted to USD 13 million for the

six-month

period ended 30 June 2022 (30 June 2021: USD 54 million). These expenses mainly comprise costs related to personal protective equipment for our colleagues and other costs incurred as a direct consequence of the

COVID-19

pandemic.

Restructuring

Exceptional restructuring charges amounted to a net cost of USD 51 million for the

six-month

period ended 30 June 2022 as compared to a net cost of USD 97 million for the

six-month

period ended 30 June 2021. These charges primarily relate to organizational alignments and aim to eliminate overlapping organizations or duplicated processes, taking into account the right match of employee profiles with the new organizational requirements. These expenses provide us with a lower cost base in addition to a stronger focus on our core activities, quicker decision-making and improvements to efficiency, service and quality.

AB InBev Efes related costs

During the

six-month

period ended 30 June 2022, we incurred exceptional costs of USD 47 million related to AB InBev Efes, following the discontinuation of exports to the region and our forfeiture of benefits from the operations of the associate.

Zenzele Kabili

In May 2021, we set up a new broad-based black economic empowerment

(“B-BBEE”)

scheme (the “Zenzele Kabili scheme”) and reported USD 73 million in exceptional items mainly representing the IFRS 2 cost related to the grant of shares to qualifying SAB retailers and employees participating in the Zenzele Kabili scheme.

Profit from Operations

The following table reflects changes in profit from operations across our business segments for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
North America		2,570			2,612			(1.6	)
Middle Americas		2,416			2,207			9.5
South America		1,234			1,065			15.9
EMEA		667			461			44.8
Asia Pacific		879			860			2.2
Global Export & Holding Companies		(766	)		(654	)		(17.1	)

Total		7,000			6,551			6.9

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our profit from operations amounted to USD 7,000 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 449 million, as compared to our profit from operations for the

six-month

period ended 30 June 2021. The results for the

six-month

•

The 2021 and 2022 acquisitions and disposals and the Brazilian tax credits negatively impacted our consolidated profit from operations by USD 30 million for the six-month period ended 30 June 2022 compared to the six-month period ended 30 June 2021.

•

Our consolidated profit from operations for the

six-month

period ended 30 June 2022 also reflects a negative currency translation impact of USD 96 million.

•

Our profit from operations for the

six-month

period ended 30 June 2022 was negatively impacted by USD 105 million of certain exceptional items, as compared to a negative impact of USD 217 million for the

six-month

period ended 30 June 2021. See “Exceptional Items” above for a description of exceptional items that impacted our profit from operations for the

six-month

period ended 30 June 2022 and 2021.

Excluding the effects of the acquisitions and disposals, the Brazilian tax credits and currency translation effects, our profit from operations increased by 8.8%. This increase was most significant in South America, EMEA and Middle Americas.

Normalized EBITDA

The following table reflects changes in our Normalized EBITDA, for the

six-month

period ended 30 June 2022 as compared to the

six-month

period ended 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
Profit attributable to equity holders of AB InBev		1,692			2,458			(31.2	)
Profit attributable to non-controlling interests		782			616			26.9
Profit of the period		2,474			3,074			(19.5	)
Net finance cost		2,268			2,346			(3.3	)
Income tax expense		1,244			1,231			1.1
Share of result of associates		(129	)		(100	)		(29.0	)
Exceptional share of results of associates		1,143			—			—

Profit from operations		7,000			6,551			6.9
Exceptional items		105			217			(51.6	)

Profit from operations, before exceptional items (2)		7,105			6,768			5.0
Depreciation, amortization and impairment		2,477			2,345			5.6

Normalized EBITDA (3)		9,583			9,114			5.1

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

(2)

Profit from operations, before exceptional items is a

non-IFRS

measure. See “Item 5. Operating and Financial Review and Results of Operations—Results of Operations—Year Ended 31 December 2021 Compared to Year Ended 31 December 2020—Normalized EBITDA” of our 2021 Annual Report for additional information on our definition and use of Profit from operations, before exceptional items.

(3)

Normalized EBITDA is a

non-IFRS

Our Normalized EBITDA amounted to USD 9,583 million for the

six-month

period ended 30 June 2022. This represented an increase of USD 469 million, or 5.1%, as compared to our Normalized EBITDA for the

six-month

period ended 30 June 2021. The results for the

six-month

period ended 30 June 2022 reflect (i) the performance of our business after the completion of the acquisitions and disposals we undertook in 2021 and 2022, (ii) the Brazilian tax credits and (iii) currency translation effects. Excluding the effects of the business acquisitions and disposals, the Brazilian tax credits and currency translation effects, our Normalized EBITDA increased by 7.5%.

Net Finance Income/(Cost)

Our net finance income/(cost) items were as follows for the

six-month

period ended 30 June 2022 and 30 June 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021			Change

	(USD million)						(%) (1)
Net interest expense		(1,683	)		(1,817	)		7.4
Net interest on net defined benefit liabilities		(37	)		(37	)		—
Accretion expense		(336	)		(265	)		(26.8	)
Mark-to-market		162			348			(53.4	)
Net interest income on Brazilian tax credits		113			76			48.7
Other financial results		(501	)		(353	)		(41.9	)

Net finance cost before exceptional finance results		(2,282	)		(2,047	)		(11.5	)
Mark-to-market		134			283			(52.7	)
Early termination fee of Bonds and Other		(120	)		(582	)		79.3

Exceptional net finance income/(cost)		14			(299	)		—

Net finance income/(cost)		(2,268	)		(2,346	)		3.3

Note:

(1)	The percentage change reflects the improvement (or worsening) of results for the period as a result of the change in each item.

Our net finance cost for the

six-month

period ended 30 June 2022 was USD 2,268 million, as compared to a net finance cost of USD 2,346 million for the

six-month

period ended 30 June 2021, representing a cost reduction of USD 78 million.

The net finance costs before exceptional financial items increased from USD 2,047 million for the

six-month

period ended 30 June 2021 to USD 2,282 million for the

six-month

period ended 30 June 2022. We reported a positive

mark-to-market

adjustment of USD 162 million in the

six-month

period ended 30 June 2022, linked to the hedging of our share-based payment program, compared to a positive

mark-to-market

adjustment of USD 348 million in the

six-month

period ended 30 June 2021.

The number of shares covered by the hedging of our share-based payment programs, together with the opening and closing share prices, are shown below:


	Six-month period ended 30 June 2022		Six-month period ended 30 June 2021
Share price at the start of the six-month period (in euro)		53.17		57.01
Share price at the end of the six-month period (in euro)		51.36		60.81
Number of derivative equity instruments at the end of the period (in millions)		55.0		55.0

Exceptional net finance income/(cost) includes a positive

mark-to-market

adjustment of USD 134 million on derivative instruments entered into to hedge the shares issued in relation to the combination with Grupo Modelo and SAB, compared to a positive

mark-to-market

adjustment of USD 283 million for the

six-month

period ended 30 June 2021. The number of shares covered by the hedging of the deferred share instrument and the restricted shares, together with the opening and closing share prices, are shown below:


	Six-month period ended 30 June 2022		Six-month period ended 30 June 2021
Share price at the start of the six-month period (in euro)		53.17		57.01
Share price at the end of the six-month period (in euro)		51.36		60.81
Number of derivative equity instruments at the end of the period (in millions)		45.5		45.5

Other exceptional net finance cost for the

six-month

period ended 30 June 2022 was mainly impacted by losses resulting from the early termination of certain bonds.

Share of Results of Associates

Our share of results of associates for the

six-month

period ended 30 June 2022 was USD 129 million as compared to USD 100 million for the

six-month

period ended 30 June 2021.

Exceptional Share of Results of Associates

Our exceptional share of results of associates for the

six-month

period ended 30 June 2022 includes the

non-cash

impairment of USD 1,143 million we recorded on our investment in AB InBev Efes.

Income Tax Expense

Our total income tax expense for the

six-month

period ended 30 June 2022 was USD 1,244 million, with an effective tax rate of 26.3%, as compared to an income tax expense of USD 1,231 million and an effective tax rate of 29.3% for the

six-month

period ended 30 June 2021. The effective tax rate for the

six-month

period ended 30 June 2022 and 2021 was positively impacted by the

non-taxable

gains from derivatives related to the hedging of share-based payment programs and the hedging of the shares issued in a transaction related to the combination with Grupo Modelo and SAB.

Profit Attributable to

Non-Controlling

Interests

Profit attributable to

non-controlling

interests was USD 782 million for the

six-month

period ended 30 June 2022, an increase of USD 166 million from USD 616 million for the

six-month

period ended 30 June 2021, mainly driven by improved performance for the

six-month

period ended 30 June 2022, compared to the same period of last year.

Profit Attributable to Our Equity Holders

Profit attributable to our equity holders for the

six-month

period ended 30 June 2022 was USD 1,692 million compared to USD 2,458 million for the same period in 2021. Basic earnings per share of USD 0.84 is based on 2,012 million shares outstanding, representing the weighted average number of ordinary and restricted shares outstanding during the

six-month

period ended 30 June 2022, where weighted average number of ordinary and restricted shares means, for any period, the number of shares outstanding at the beginning of the period, adjusted by the number of shares canceled, repurchased or issued during the period, including deferred share instruments and stock lending, multiplied by a time-weighting factor.

Excluding the

after-tax

impact of exceptional items discussed above under “—Exceptional Items, “—Net Finance Income/(Cost)” and “—Exceptional Share of Results of Associates”, profit attributable to our equity holders for the

six-month

period ended 30 June 2022 would have been a gain of USD 2,860 million, and basic earnings per share would have been USD 1.42.

Underlying EPS for the

six-month

period ended 30 June 2022 was USD 1.33. Underlying EPS is basic earnings per share excluding the

after-tax

exceptional items discussed above under “—Exceptional Items, “—Net Finance Income/(Cost)” and “—Exceptional Share of Results of Associates”, the

mark-to-market

of the hedging of our share-based payment programs and the impact of hyperinflation accounting.

The decrease in profit attributable to our equity holders for the

six-month

period ended 30 June 2022 was primarily due to the exceptional share of results of associates discussed above and lower positive

mark-to-market

adjustment linked to the hedging of our share-based payment programs and the shares issued in transactions related to the combination with Grupo Modelo and SAB compared to gains on these derivatives in the

six-month

period ended 30 June 2021, partially offset by the increase in profit from operations discussed above.


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021

	(USD million)
Profit attributable to equity holders of AB InBev		1,692			2,458
Exceptional items, before taxes, attributable to equity holders of AB InBev		105			217
Exceptional net finance cost, before taxes, attributable to equity holders of AB InBev		(14	)		299
Exceptional share of results of associates		1,143			—
Exceptional taxes attributable to equity holders of AB InBev		(69	)		(42	)
Exceptional non-controlling interest		3			(7	)

Profit before exceptional items, attributable to equity holders of AB InBev (1)		2,860			2,924

Note:

(1)

Profit before exceptional items, attributable to equity holders of AB InBev is a

non-IFRS

measure. Profit before exceptional items, attributable to equity holders of AB InBev is equivalent to the measure Profit from continuing operations before exceptional items and discontinued operations, attributable to equity holders of AB InBev presented in our 2021 Annual Report. There were no discontinued operations in the

six-month

periods ended 30 June 2022 and 2021. See “Item 5. Operating and Financial Review and Results of Operations—Results of Operations—Year Ended 31 December 2021 Compared to Year Ended 31 December 2020—Profit Attributable to Our Equity Holders” of our 2021 Annual Report for additional information on our definition and use of Profit before exceptional items, attributable to equity holders of AB InBev.


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021

	(USD per share)
Basic earnings per share		0.84			1.23

Exceptional items, before taxes, attributable to equity holders of AB InBev		0.05			0.11
Exceptional net finance cost, before taxes, attributable to equity holders of AB InBev		(0.01	)		0.15
Exceptional share of results of associates		0.57			—
Exceptional taxes attributable to equity holders of AB InBev		(0.03	)		(0.02	)

Basic EPS before exceptional items (1)		1.42			1.46
Mark-to-market (hedging of our share-based payment programs)		(0.08	)		(0.17	)
Hyperinflation accounting impacts in EPS		(0.01	)		0.02

Underlying EPS (2)		1.33			1.30

Note:

(1)

Basic EPS before exceptional items is a

non-IFRS

measure. Basic EPS before exceptional items is equivalent to the measure Basic EPS from continuing operations before exceptional items presented in our 2021 Annual Report. There were no discontinued operations in the

six-month

periods ended 30 June 2022 and 2021. See “Item 5. Operating and Financial Review—E. Results of Operations—Year Ended 31 December 2021 Compared to the Year Ended 31 December 2020—Profit Attributable to Our Equity Holders” of our 2021 Annual Report for additional information on our definition and use of Basic EPS before exceptional items.

(2)

Underlying EPS is a non-IFRS measure. See “Item 5. Operating and Financial Review—E. Results of Operations—Year Ended 31 December 2021 Compared to the Year Ended 31 December 2020—Profit Attributable to Our Equity Holders” of our 2021 Annual Report for additional information on our definition and use of Underlying EPS. Underlying Profit is a non-IFRS measure. Underlying Profit is the Profit attributable to equity holders, before exceptional items, the mark-to-market of the hedging of our share-based payment programs, the impact of hyperinflation accounting and the impact of discontinued operations. Underlying EPS is the Underlying Profit divided by the weighted average number of ordinary and restricted shares.

Cash flow from operating activities was USD 2,182 million for the

six-month

period ended 30 June 2022 compared to USD 3,939 million for

six-month

period ended 30 June 2021. The decrease was primarily driven by changes in working capital for the first six months of 2022 compared to the same period last year as 2021 figures were impacted by lower capital expenditure and bonus accruals in 2020. In addition, changes in working capital in the first half of 2022 and 2021 reflect higher working capital levels end of June than at

year-end

as a result of seasonality.

Cash flow from investing activities

The following table sets forth our cash flow from investing activities for the

six-month

period ended 30 June 2022 and 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021
	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021

	(USD million)
Net capital expenditure (1)		(1,939	)		(2,104	)
Acquisition and sale of subsidiaries, net of cash acquired/disposed of		(44	)		(203	)
Net proceeds from the sale/(acquisition) of other assets		66			98

Cash flow from / (used in) investing activities		(1,917	)		(2,209	)

Note:

(1)	Net capital expenditure consists of acquisitions of plant, property and equipment and of intangible assets, minus proceeds from sale.

Cash flow from investing activities was a net cash outflow of USD 1,917 million for the

six-month

period ended 30 June 2022 compared to a net cash outflow of USD 2,209 million for the

six-month

period ended 30 June 2021. The decrease in the cash flow from investing activities was mainly due to lower net capital expenditures and lower outflows from acquisition of subsidiaries in 2022 compared to 2021.

Our net capital expenditures were USD 1,939 million for the

six-month

period ended 30 June 2022 and USD 2,104 million for the

six-month

period ended 30 June 2021. Out of the total half-year 2022 capital expenditures approximately 32% was used to improve our production facilities, 49% was used for logistics and commercial investments and 19% was used for improving administrative capabilities and the purchase of hardware and software.

Cash flow from financing activities

The following table sets forth our cash flow from financing activities for the

six-month

period ended 30 June 2022 and 2021:


	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021
	Six-month period ended 30 June 2022			Six-month period ended 30 June 2021

	(USD million)
Dividends paid		(1,276	)		(1,382	)
Net (payments on)/proceeds from borrowings		(3,452	)		(7,999	)
Payments of lease liabilities		(286	)		(256	)
Other (including purchase of non-controlling interests)		(378	)		(470	)

Cash flow from / (used in) financing activities		(5,392	)		(10,107	)

Cash outflow from financing activities was USD 5,392 million for the

six-month

period ended 30 June 2022, compared to a cash outflow of USD 10,107 million for the

six-month

period ended 30 June 2021. The decrease is primarily driven by lower payments of borrowings in 2022 compared in 2021.

In addition to a very comfortable debt maturity profile and strong cash flow generation, as of 30 June 2022, we had total liquidity of USD 17.0 billion, which consisted of USD 10.1 billion available under committed long-term credit facilities and USD 6.9 billion of cash, cash equivalents and short-term investments in debt securities less bank overdrafts. Although we may borrow such amounts to meet our liquidity needs, we principally rely on cash flows from operating activities to fund the company’s operations.

Capital Resources and Equity

Our net debt was USD 75.9 billion as of 30 June 2022 as compared to USD 76.2 billion as of 31 December 2021. Apart from operating results net of capital expenditures, the net debt was mainly impacted by payments of interests and taxes (USD 3.8 billion increase of net debt), dividend payments to shareholders of AB InBev and Ambev (USD 1.3 billion decrease of net debt) and foreign exchange impact on net debt (USD 2.3 billion decrease of net debt).

We will continue to proactively manage our debt portfolio. After redemptions in January 2022, 94% of our bond portfolio holds a fixed-interest rate, 44% is denominated in currencies other than USD and maturities are well-distributed across the next several years.

Consolidated equity attributable to our equity holders as at 30 June 2022 was USD 71,550 million, compared to USD 68,669 million as at 31 December 2021. The net increase in equity results from the profit attributable to equity shareholders and foreign exchange gains on translation of foreign operations primarily related to the combined effect of the appreciation of the closing rates of the Peruvian Sol, the British Pound, the Mexican Pesos, and the Brazilian real and the weakening of the closing rate of the Euro, which resulted in a foreign exchange translation adjustment of USD 2,101 million as of 30 June 2022 (increase of equity). This increase in equity is partially offset by dividends paid.

The chart below shows the bond repayment schedule as of 30 June 2022 (figures in USD billion):

Further details on interest bearing loans and borrowings, repayment schedules and liquidity risk are disclosed in notes 17 and 19 to our unaudited interim report as of 30 June 2022 and for the

six-month

period ended 30 June 2022 and 2021.

Adoption of hyperinflation accounting in Argentina

In May 2018, the Argentinean peso underwent a severe devaluation resulting in the three-year cumulative inflation of Argentina exceeding 100% in 2018, thereby triggering the requirement to transition to hyperinflation accounting as prescribed by IAS 29

Financial Reporting in Hyperinflationary Economies

as of 1 January 2018.

Consequently, we have applied hyperinflation accounting for our Argentinean subsidiaries for the first time in the year to date September 2018 unaudited interim report, with effect as of 1 January 2018.

The results for the

six-month

period ended 30 June 2022 were translated at the June 2022 closing rate of 125.210300 Argentinean pesos per US dollar. The results for the

six-month

period ended 30 June 2021, were translated at the June 2021 closing rate of 95.730147 Argentinean pesos per US dollar.

The impact of hyperinflation accounting for the period ended 30 June 2022 amounted to USD (2) million decrease in revenue, USD 138 million positive monetary adjustment reported in the finance line and represented USD 0.01 earnings per share excluding exceptional items.

Guarantor Financial Information

The debt securities issued by (i) Anheuser-Busch InBev Finance Inc. (“

ABIFI

”) under Indentures dated as of January 17, 2013, January 25, 2016 and May 15, 2017, in each case among ABIFI, Anheuser-Busch InBev SA/NV (the “

Parent Guarantor

”), the subsidiary guarantors listed therein and the Bank of New York Mellon Trust Company, N.A., as trustee (ii) Anheuser-Busch InBev Worldwide Inc. (“

ABIWW

”) under Indentures dated as of October 16, 2009, December 16, 2016 and April 4, 2018, in each case among ABIWW, the Parent Guarantor, the subsidiary guarantors listed therein and the Bank of New York Mellon Trust Company, N.A, as trustee and (iii) Anheuser-Busch Companies, LLC (“

ABC

”) and ABIWW, as

co-issuers,

under the Indenture dated as of November 13, 2018, among ABC, ABIWW, the subsidiary guarantors listed therein and the Bank of New York Mellon Trust Company, N.A., as trustee, are, in each case, fully and unconditionally guaranteed by the Parent Guarantor and jointly and severally guaranteed by Brandbrew S.A., Brandbev S.à r.l. and Cobrew NV, and by ABC (in respect of debt issued by ABIFI and/or ABIWW (as sole issuer)), ABIWW (in respect of debt issued by ABIFI) and by ABIFI (in respect of debt issued by ABIWW and/or ABC) on a full and unconditional basis. The Parent Guarantor owns, directly or indirectly, 100% of each of ABIFI, ABIWW, ABC, Brandbrew S.A., Brandbev S.à r.l. and Cobrew NV.

Each guarantee provided under the aforementioned indentures is referred to as a “

Guarantee

” and collectively, the “

Guarantees

”; the subsidiaries of the Parent Guarantor providing Guarantees are referred to as the “

Subsidiary Guarantors

” and the Parent Guarantor and Subsidiary Guarantors collectively are referred to as the “

Guarantors

”. ABIWW, ABIFI and ABC are collectively referred to as the “

Issuers

”.

For disclosure required by Rule

13-01

of Regulation

S-X

of certain terms and conditions of the guarantees and how the issuer and guarantor structure and other factors may affect payments to the holder of the debt securities see “Item 5. Operating and Financial Review—G. Liquidity and Capital Resources—Guarantor Financial Information” of our 2021 Annual Report.

Summarized financial information is presented below for Anheuser-Busch InBev SA/NV, the Issuers and the Subsidiary Guarantors on a combined basis after elimination of intercompany transactions and balances among them and does not include investments in and equity in the earnings of

non-guarantor

subsidiaries. The intercompany balances with

Non-Guarantor

Subsidiaries have been presented separately. This summarized financial information is not intended to present the financial position or results of operations of Anheuser-Busch InBev SA/NV, the Issuers and the Subsidiary Guarantors in accordance with IFRS.


	Six-month period ended 30 June 2022		Year ended 31 December 2021
	USD million		USD million
Statement of Income Data
Revenue (1)		7,410		14,920
Gross profit (1)		3,955		8,339
Profit for the period (1)		1,150		2,055

	Six-month period ended 30 June 2022		Year ended 31 December 2021
	USD million		USD million
Balance Sheet Data
Due from non-guarantor subsidiaries		74,987		78,031
Other non-current assets		61,539		61,434
Non-current assets		136,526		139,465
Due from non-guarantor subsidiaries		13,516		7,160
Other current assets		11,904		11,874
Current assets		25,420		19,034
Due to non-guarantor subsidiaries		47,435		48,960
Other non-current liabilities		88,309		93,317
Non-current liabilities		135,744		142,277
Due to non-guarantor subsidiaries		15,701		14,937
Other current liabilities		24,564		22,303
Current liabilities		40,265		37,240

Note:

(1)

For the six-month period ended 30 June 2022, revenue, gross profit and profit for the period includes USD 151 million, USD (212) million and USD 648 million of intercompany transactions with non-guarantor subsidiaries and related parties, respectively. For the year ended 31 December 2021, revenue, gross profit and profit for the period includes USD 344 million, USD (500) million and USD 3,162 million of intercompany transactions with non-guarantor subsidiaries and related parties, respectively.

2022 OUTLOOK

We expect our Normalized EBITDA to grow

in-line

with our medium-term outlook of between

4-8%,

excluding the impact of currency translation effects, and our revenue to grow ahead of Normalized EBITDA from a healthy combination of volume and price. The outlook for 2022 reflects our current assessment of the scale and magnitude of the

COVID-19

pandemic, which is subject to change as we continue to monitor ongoing developments.

Net pension interest expenses and accretion expenses are expected to be in the range of USD 170 to 200 million per quarter, depending on currency and interest rate fluctuations. We expect the average gross debt coupon in 2022 to be approximately 4.0%. Net finance costs will continue to be impacted by any gains and losses related to the hedging of our share-based payment programs.

We expect net capital expenditure of between USD 4.5 and 5.0 billion in 2022.

Unaudited condensed consolidated interim statement of financial position

As at

Million US dollar

Notes

30 June 2022

31 December 2021

ASSETS

Non-current

assets

Property, plant and equipment

i 26 320

i 26 678

Goodwill

i 115 392

i 115 796

Intangible assets

i 40 421

i 40 430

Investment in associates

i 4 533

i 5 874

Investment securities

i 164

i 161

Deferred tax assets

i 2 233

i 1 969

Employee benefits

i 5

Income tax receivables

i 740

i 1 137

Derivatives

i 133

i 48

Trade and other receivables

i 1 735

i 1 580

Total

non-current

assets

i 191 677

i 193 678

Current assets

Investment securities

i 334

i 374

Inventories

i 6 107

i 5 399

Income tax receivables

i 512

i 381

Derivatives

i 850

i 621

Trade and other receivables

i 5 861

i 5 046

Cash and cash equivalents

i 7 027

i 12 097

Assets classified as held for sale

i 30

Total current assets

i 20 720

i 23 949

Total assets

i 212 397

i 217 627

EQUITY AND LIABILITIES

Equity

Issued capital

i 1 736

Share premium

i 17 620

Reserves

i 17 760

i 15 431

Retained earnings

i 34 435

i 33 882

Equity attributable to equity holders of AB InBev

i 71 550

i 68 669

Non-controlling

interests

i 11 200

i 10 671

Total equity

i 82 750

i 79 340

Non-current

liabilities

Interest-bearing loans and borrowings

i 82 117

i 87 369

Employee benefits

i 2 142

i 2 261

Deferred tax liabilities

i 12 066

i 12 204

Income tax payables

i 619

i 726

Derivatives

i 266

i 100

Trade and other payables

i 1 097

i 1 008

Provisions

i 447

i 436

Total

non-current

liabilities

i 98 755

i 104 104

Current liabilities

Bank overdrafts

i 130

i 53

Interest-bearing loans and borrowings

i 1 185

i 1 408

Income tax payables

i 1 079

i 1 334

Derivatives

i 5 587

i 5 786

Trade and other payables

i 22 748

i 25 434

Provisions

i 163

i 169

Total current liabilities

i 30 892

i 34 184

Total equity and liabilities

i 212 397

i 217 627

The accompanying notes are an integral part of these consolidated financial statements.

Unaudited condensed consolidated interim statement of changes in equity


			Attributable to equity holders of AB InBev
Million US dollar	Notes		Issued Capital		Share premium		Treasury shares			Reserves 1		Other comprehensive income reserves			Retained earnings			Total			Non-controlling interest			Total Equity
As per 1 January 2021				i 1 736		i 17 620		( i 4 911	)		i 53 550		( i 30 841	)		i 30 870			i 68 024			i 10 327			i 78 351
Profit of the period				—		—		—			—		—			i 2 458			i 2 458			i 616			i 3 074
Other comprehensive income/(loss) 1		16		—		—		—			—		( i 1 168	)		—			( i 1 168	)		i 81			( i 1 087	)

Total comprehensive income/(loss)				—		—		—			—		( i 1 168	)		i 2 458			i 1 289			i 697			i 1 987

Dividends				—		—		—			—		—			( i 1 139	)		( i 1 139	)		( i 186	)		( i 1 325	)
Treasury shares				—		—		i 710			—		—			( i 690	)		i 20			—			i 20
Share-based payments		18		—		—		—			i 309		—			—			i 309			i 12			i 321
Hyperinflation monetary adjustments				—		—		—			—		—			i 131			i 131			i 81			i 212
Scope and other changes				—		—		—			—		—			( i 38	)		( i 38	)		i 34			( i 5	)

As per 30 June 2021				i 1 736		i 17 620		( i 4 201	)		i 53 859		( i 32 009	)		i 31 591			i 68 596			i 10 965			i 79 561


			Attributable to equity holders of AB InBev
Million US dollar	Notes		Issued Capital		Share premium		Treasury shares			Reserves		Other comprehensive income reserves			Retained earnings			Total			Non-controlling interest			Total Equity
As per 1 January 2022				i 1 736		i 17 620		( i 3 994	)		i 54 001		( i 34 577	)		i 33 882			i 68 669			i 10 671			i 79 340
Profit of the period				—		—		—			—		—			i 1 692			i 1 692			i 782			i 2 474
Other comprehensive income/(loss)		16		—		—		—			—		i 1 892			—			i 1 892			( i 158	)		i 1 734

Total comprehensive income/(loss)				—		—		—			—		i 1 892			i 1 691			i 3 584			i 624			i 4 208

Dividends				—		—		—			—		—			( i 1 190	)		( i 1 190	)		( i 219	)		( i 1 409	)
Treasury shares				—		—		i 184			—		—			( i 112	)		i 72			—			i 72
Share-based payments		18		—		—		—			i 254		—			—			i 254			i 5			i 259
Hyperinflation monetary adjustments				—		—		—			—		—			i 205			i 205			i 127			i 332
Scope and other changes				—		—		—			—		—			( i 42	)		( i 42	)		( i 9	)		( i 51	)

As per 30 June 2022				i 1 736		i 17 620		( i 3 810	)		i 54 254		( i 32 685	)		i 34 435			i 71 550			i 11 200			i 82 750

The accompanying notes are an integral part of these consolidated financial statements.

1	Amended to conform to 2022 presentation.

Unaudited condensed consolidated interim statement of cash flows

For the

six-month

period ended 30 June

Million US dollar

Notes

2022

2021¹

OPERATING ACTIVITIES

Profit of the period

i 2 474

i 3 074

Depreciation, amortization and impairment

i 2 477

i 2 367

Net finance cost/(income)

i 2 268

i 2 346

Equity-settled share-based payment expense

i 237

i 345

Income tax expense

i 1 244

i 1 231

Other

non-cash

items

( i 225

)

( i 127

)

Share of result of associates and joint ventures

i 1 014

( i 100

)

Cash flow from operating activities before changes in working capital and use of provisions

i 9 489

i 9 134

Decrease/(increase) in trade and other receivables

( i 581

)

( i 755

)

Decrease/(increase) in inventories

( i 833

)

( i 894

)

Increase/(decrease) in trade and other payables

( i 1 925

)

i 322

Pension contributions and use of provisions

( i 195

)

( i 258

)

Cash generated from operations

i 5 955

i 7 549

Interest paid

( i 2 082

)

( i 2 238

)

Interest received

i 177

i 72

Dividends received

i 50

i 86

Income tax paid

( i 1 918

)

( i 1 530

)

Cash flow from operating activities

i 2 182

i 3 939

INVESTING ACTIVITIES

Acquisition of property, plant and equipment and of intangible assets

10/12

( i 2 002

)

( i 2 174

)

Proceeds from sale of property, plant and equipment and of intangible assets

i 63

i 70

Acquisition of subsidiaries, net of cash acquired

( i 44

)

( i 210

)

Sale of other subsidiaries, net of cash disposed of

i —

i 7

Net proceeds from sale/(acquisition) of other assets

i 66

i 98

Cash flow from/ (used in) investing activities

( i 1 917

)

( i 2 209

)

FINANCING ACTIVITIES

Sale/(purchase) of

non-controlling

interests

( i 52

)

( i 8

)

Proceeds from borrowings

i 68

i 370

Payments on borrowings

( i 3 520

)

( i 8 369

)

Cash net finance (cost)/income other than interests

( i 326

)

( i 462

)

Payment of lease liabilities

( i 286

)

( i 256

)

Dividends paid

( i 1 276

)

( i 1 382

)

Cash flow from / (used in) financing activities

( i 5 392

)

( i 10 107

)

Net increase/(decrease) in cash and cash equivalents

( i 5 128

)

( i 8 377

)

Cash and cash equivalents less bank overdrafts at beginning of year

i 12 043

i 15 247

Effect of exchange rate fluctuations

( i 18

)

( i 126

)

Cash and cash equivalents less bank overdrafts at end of period

i 6 897

i 6 744

The accompanying notes are an integral part of these consolidated financial

statements

Notes to the consolidated financial statements


	Note
Corporate information		1
Statement of compliance		2
Summary of significant accounting policies		3
Use of estimates and judgments		4
Segment reporting		5
Acquisitions and disposals of subsidiaries		6
Exceptional items		7
Finance cost and income		8
Income taxes		9
Property, plant and equipment		10
Goodwill		11
Intangible assets		12
Investments in associates		13
Trade and other receivables		14
Cash and cash equivalents and investment securities		15
Changes in equity and earnings per share		16
Interest-bearing loans and borrowings		17
Share-based payments		18
Risks arising from financial instruments		19
Collateral and contractual commitments for the acquisition of property, plant and equipment, loans to customers and other		20
Contingencies		21
Related parties		22
Supplemental guarantor financial information		23
Events after the reporting date		2 4

1.	Corporate information

, Corona

and Stella Artois

; multi-country brands Beck’s

, Hoegaarden

, Leffe

and Michelob Ultra

; and local champions such as Aguila

, Antarctica

, Bud Light

, Brahma

, Cass

, Castle

, Castle Lite

, Cristal

, Harbin

, Jupiler

, Modelo Especial

, Quilmes

, Victoria

, Sedrin

and Skol

. Our brewing heritage dates back more than i 600 years, spanning continents and generations. From our European roots at the Den Hoorn brewery in Leuven, Belgium. To the pioneering spirit of the Anheuser & Co brewery in St. Louis, US. To the creation of the Castle Brewery in South Africa during the Johannesburg gold rush. To Bohemia, the first brewery in Brazil. Geographically diversified with a balanced exposure to developed and developing markets, we leverage the collective strengths of approximately i 169 000 employees based in nearly i 50 countries worldwide. For 2021, AB InBev’s reported revenue was i 54.3 billion US dollar (excluding joint ventures and associates).

The unaudited condensed consolidated interim financial statements of the company for the

six-month

period ended 30 June 2022 comprise the company and its subsidiaries (together referred to as “AB InBev” or the “company”) and the company’s interest in associates, joint ventures and operations. The condensed consolidated interim financial statements for the

six-month

period ended 30 June 2022 and 2021 are unaudited; however, in the opinion of the company, the interim data include all adjustments necessary for a fair statement of the results for the interim period.

The consolidated financial statements were authorized for issue by the Board of Directors on 27 July 2022.

2.	Statement of compliance

The unaudited condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standard (IFRS) IAS 34

Interim Financial Reporting

as issued by the International Accounting Standard Board (IASB) and as adopted by the European Union. They do not include all the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements of the company as at and for the year ended 31 December 2021. AB InBev did not early apply any new IFRS requirements that were not yet effective in 2022 and did not apply any European carve-outs from IFRS.

3.	Summary of significant accounting policies

The accounting policies applied are consistent with those applied in the annual consolidated financial statements as at and for the year ended 31 December 2021.

(A)	SUMMARY OF CHANGES IN ACCOUNTING POLICIES

A number of amendments to standards became mandatory for the first time for the financial year beginning on 1 January 2022 and have not been listed in these unaudited condensed consolidated financial statements as they either do not apply or are immaterial to AB InBev’s consolidated financial statements.

(B)	FOREIGN CURRENCIES

The most important exchange rates that have been used in preparing the financial statements are:

Closing rate

Average rate

1 US dollar equals:

30 June 2022

31 December 2021

30 June 2022

30 June 2021

Argentinean peso

i 125.210300

i 102.749214

—

Brazilian real

i 5.237986

i 5.580497

i 5.049046

i 5.404575

Canadian dollar

i 1.292481

i 1.270792

i 1.268356

i 1.245300

Colombian peso

i 4 131.94

i 3 977.14

i 3 920.73

i 3 630.50

Chinese yuan

i 6.702977

i 6.352382

i 6.458363

i 6.471074

Euro

i 0.962742

i 0.882924

i 0.913529

i 0.827754

Mexican peso

i 19.984680

i 20.583378

i 20.324130

i 20.275664

Pound sterling

i 0.826224

i 0.741903

i 0.768921

i 0.719643

Peruvian nuevo sol

i 3.779000

i 3.976006

i 3.800274

i 3.708425

South Korean won

i 1 301.00

i 1 188.32

i 1 221.30

i 1 114.07

South African rand

i 16.380406

i 15.947907

i 15.476459

i 14.650513

/ /

5.	Segment reporting

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 i 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 profit from operations as a measure of segment performance which forms part of the basis for many of the company´s segment performance indicators to make decisions regarding the allocation of resources. The organizational structure comprises five regions: North America, Middle Americas, South America, EMEA and Asia Pacific. In addition to these i five geographic regions, the company uses a i sixth segment, Global Export and Holding Companies, for all financial reporting purposes.

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

six-month

period ended 30 June 2022 and 2021, except for segment assets

(non-current)

with comparatives at 31 December 2021.

North

America

Middle

Americas

South America

EMEA

Asia Pacific

Global

Export and
Holding

companies

AB InBev
Worldwide

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

2022

2021

Volume

i 51

i 53

i 72

i 68

i 77

i 72

i 43

i 41

i 45

i 46

—

i 289

i 280

Revenue

i 8 192

i 8 040

i 6 693

i 5 893

i 5 333

i 4 146

i 3 940

i 3 763

i 3 471

i 3 500

i 399

i 491

i 28 027

i 25 832

Profit from operations

i 2 570

i 2 612

i 2 416

i 2 207

i 1 234

i 1 065

i 667

i 461

i 879

i 860

( i 766

)

( i 654

)

i 7 000

i 6 551

Net finance income/(cost)

( i 2 268

)

( i 2 346

)

Share of results of
associates

i 129

i 100

Exceptional share of results
of associates

( i 1 143

)

—

Income tax expense

( i 1 244

)

( i 1 231

)

Profit

i 2 474

i 3 074

Segment assets

(non-current)

i 63 670

i 63 722

i 68 182

i 67 516

i 13 762

i 12 917

i 31 241

i 34 098

i 12 484

i 13 453

i 2 338

i 1 973

i 191 677

i 193 678

Gross capex

i 222

i 357

i 537

i 456

i 414

i 460

i 329

i 402

i 214

i 265

i 288

i 235

i 2 002

i 2 174

For the

six-month

period ended 30 June 2022, net revenue from the beer business amounted to i 25 063m US dollar (30 June 2021: i 23 669m US dollar) while the net revenue from the

non-beer

business (soft drinks and other business) accounted for i 2 964m US dollar (30 June 2021: i 2 163m US dollar). Additionally, for the

six-month

period ended 30 June 2022, net revenue from the company’s business in the United States amounted to i 7 239m US dollar (30 June 2021: i 7 071m US dollar) and net revenue from the company’s business in Brazil amounted to i 3 773 m US dollar (30 June 2021: i 2 858m US dollar).

6.	Acquisitions and disposals of subsidiaries

The company undertook a series of acquisitions and disposals and/or settled payments related to prior year acquisitions during the

six-month

period ended 30 June 2022 and 30 June 2021, with no significant impact in the consolidated financial statements.

7.	Exceptional items

IAS 1

Presentation of financial statements

requires that material items of income and expense be disclosed separately. Exceptional items are items that in management’s judgment need to be disclosed by virtue of their size or incidence so that a user can obtain a proper understanding of the company´s financial information.

The exceptional items included in the income statement are as follows:


For the six-month period ended 30 June Million US dollar	2022			2021
COVID-19 costs		( i 13	)		( i 54	)
Restructuring		( i 51	)		( i 97	)
Business and asset disposal (including impairment losses)		i 6			i 14
Acquisition costs business combinations		—			( i 6	)
Zenzele Kabili costs		—			( i 73	)
AB InBev Efes related costs		( i 47	)		—

Impact on profit from operations		( i 105	)		( i 217	)

Exceptional net finance income/(cost)		i 14			( i 299	)
Exceptional share of results of associates		( i 1 143	)		—
Exceptional taxes		i 69			i 42
Exceptional non-controlling interest		( i 3	)		i 7

Net impact on profit		( i 1 168	)		( i 466	)

COVID-19

costs amount to ( i 13)m US dollar for the

six-month

period end

d 30 June 2022 (30 June 2021: ( i 54)m US dollar). These expenses mainly comprise costs related to personal protection equipment for the company’s employees and other costs incurred as a direct consequence of the

COVID-19

pandemic.

The exceptional restructuring charges for the

six-month

period ended 30 June 2022 total ( i 51)m US dollar (30 June 2021: ( i 97)m US dollar). These charges primarily relate to organizational alignments. These changes aim to eliminate overlapping organizations or duplicated processes, taking into account the matching of employee profiles with new organizational requirements. These

one-time

expenses provide the company with a lower cost base and bring a stronger focus to AB InBev’s core activities, quicker decision-making and improvements to efficiency, service and quality.

AB InBev Efes related costs of

( i 47)m US dollar for the

six-month

period ended 30 June 2022 relate to the discontinuation of exports to the region and the forfeiting of company benefits from the operations of the associate.

In May 2021, the company set up a new broad-based black economic empowerment

(“B-BBEE”)

scheme (the “Zenzele Kabili scheme”) and reported ( i 73)m US dollar in exceptional items mainly representing the IFRS 2 cost related to the grant of shares to qualifying SAB retailers and employees participating to the Zenzele Kabili scheme. For more details, refer to Note 16

Changes in equity and earnings per share

The company incurred an exceptional net finance income of i 14m US dollar for the

six-month

period ended 30 June 2022 (30 June 2021: net finance cost of ( i 299)m US dollar) – see Note 8

Finance cost and income

During the

six-month

period ended 30 June 2022, the company recorded an impairment of

(

i 1 143

)

m US dollar on its investment in AB InBev Efes – see Note 4

Use of estimates and judgments

and Note 13

Investments in associates

All the amounts referenced above are before income taxes. The exceptional income taxes amounted to i 69m US dollar (decrease of income taxes) for the

six-month

period ended 30 June 2022 (30 June 2021: decrease of income taxes by i 42m US dollar).

Non-controlling

interest on the exceptional items amounts to ( i 3)m US dollar for the

six-month

period ended 30 June 2022 (30 June 2021: i 7m US dollar).

8.	Finance cost and income

The finance cost and income included in the income statement are as follows:


For the six-month period ended 30 June Million US dollar	2022			2021¹
Interest expense		( i 1 767	)		( i 1 875	)
Net interest on net defined benefit liabilities		( i 37	)		( i 37	)
Accretion expense		( i 336	)		( i 265	)
Net losses on hedging instruments		( i 422	)		( i 297	)
Net foreign exchange results (net of the effect of foreign exchange derivatives)		( i 143	)		( i 38	)
Other financial costs, including bank fees and taxes		( i 131	)		( i 97	)

Finance cost excluding exceptional items		( i 2 835	)		( i 2 609	)

Exceptional finance cost		( i 127	)		( i 582	)

Finance cost		( i 2 962	)		( i 3 191	)

Interest income		i 84			i 58
Interest income on Brazilian tax credits		i 113			i 76
Hyperinflation monetary adjustments		i 138			i 75
Net mark-to-market results on derivatives related to the hedging of share-based payment programs		i 162			i 348
Other financial income		i 56			i 5

Finance income excluding exceptional items		i 553			i 562


Exceptional finance income		i 141			i 283
Finance income		i 694			i 845


Net finance income/(cost) excluding exceptional items		( i 2 282	)		( i 2 047	)

Net finance income/(cost)		( i 2 268	)		( i 2 346	)

Net finance costs, excluding exceptional items, were i 2 282m US dollar in the

six-month

period ended 30 June 2022 compared to i 2 047m US dollar in the

six-month

period ended 30 June 2021.

In the

six-month

period ended 30 June 2022, accretion expense includes interest on lease liabilities of i 60m US dollar (30 June 2021: i 60m US dollar), unwind of discounts of i 225m US dollar (30 June 2021: i 154m US dollar), bond fees of i 32m US dollar (30 June 2021: i 33m US dollar) and interest on provisions of i 19m US dollar (30 June 2021: i 18m US dollar).

Interest expense is presented net of the effect of interest rate derivative instruments hedging AB InBev’s interest rate risk – see also Note 19

Risks arising from financial instruments

Exceptional finance income/(cost) for the

six-month

period ended 30 June 2022 and 30 June 2021 includes:

•

i 134m US dollar gain resulting from

mark-to-market

adjustments on derivative instruments entered into to hedge the shares issued in relation to the combination with Grupo Modelo and the restricted shares issued in connection with the combination with SAB (30 June 2021: i 283m US dollar gain);

•

i 7m US dollar gain related to remeasurement of deferred considerations on prior year acquisitions (30 June 2021: i nil);

•

i 127m US dollar loss resulting from the early termination of certain bonds (30 June 2021: i 582m US dollar loss).

No interest income was recognized on impaired financial assets.

/ i

9.	Income taxes

Income taxes recognized in the income statement can be detailed as follows:


For the six-month period ended 30 June Million US dollar	2022			2021
Current tax expense		( i 1 704	)		( i 1 388	)
Deferred tax (expense)/income		i 459			i 157

Total income tax expense in the income statement		( i 1 244	)		( i 1 231	)

5	Amended to conform to 2022 presentation.

The reconciliation of the effective tax rate with the aggregated weighted nominal tax rate can be summarized as follows:


For the six-month period ended 30 June Million US dollar	2022			2021¹
Profit/(loss) before tax		i 3 718			i 4 305
Deduct share of results of associates and joint ventures		i 129			i 100
Deduct exceptional share of results of associates		( i 1 143	)		—

Profit before tax and before share of results of associates and joint ventures		i 4 732			i 4 205


Adjustments to the tax basis
Government incentives		( i 304	)		( i 216	)
Non-deductible/(non-taxable) mark-to-market on derivatives		( i 296	)		( i 631	)
Other expenses not deductible for tax purposes		i 962			i 1 187
Other non-taxable income		( i 346	)		( i 272	)

Adjusted tax basis		i 4 748			i 4 273


Aggregate weighted nominal tax rate		i 26.9	%		i 27.2	%

Tax at aggregated nominal tax rate		( i 1 277	)		( i 1 163	)

Adjustments on tax expense
Recognition/(de-recognition) of deferred tax assets on tax losses carried forward		( i 8	)		( i 128	)
(Underprovided)/overprovided in prior years		i 24			i 14
Deductions from interest on equity		i 268			i 191
Deductions from goodwill and other tax deductions		i 5			i 120
Change in tax rate		i 5			( i 44	)
Withholding taxes		( i 181	)		( i 192	)
Other tax adjustments		( i 81	)		( i 29	)

Total tax expense		( i 1 244	)		( i 1 231	)


Effective tax rate		i 26.3	%		i 29.3	%

The total income tax expense for the

six-month

period ended 30 June 2022 amounts to i 1 244m US dollar compared to i 1 231m US dollar for the

six-month

period ended 30 June 2021. The effective tax rate for the

six-month

period ended 30 June 2022 was i 26.3% compared to an effective tax rate of i 29.3% for the

six-month

period ended 30 June 2021. Both the 2022 and the 2021 effective tax rates are positively impacted by

non-taxable

gains from derivatives related to hedging of share-based payment programs and hedging of the shares issued in a transaction related to the combination with Grupo Modelo and SAB

The company benefits from tax exempted income and tax credits which are expected to continue in the future. The company does not have significant benefits coming from low tax rates in any particular jurisdiction.

The normalized effective tax rate for the

six-month

period ended 30 June 2022 is i 27.2% (30 June 2021: i 27.3%). The normalized effective tax rate excluding

mark-to-market

gains or losses on derivatives related to the hedging of share-based payment programs for the

six-month

period ended 30 June 2022 is i 28.2% (30 June 2021: i 29.5%).

6	Amended to conform to 2022 presentation.

10.	Property, plant and equipment

Property, plant and equipment comprises owned and leased assets, as follows:


Million US dollar	30 June 2022		31 December 2021
Property, plant and equipment owned		i 24 059		i 24 459
Property, plant and equipment leased (right-of-use assets)		i 2 261		i 2 219

Total property, plant and equipment		i 26 320		i 26 678

30 June 2022

31 December 2021

Million US dollar

Land and
buildings

Plant and
equipment,
fixtures and
fittings

Under
construction

Total

Acquisition cost

Balance at end of previous year

i 12 374

i 35 907

i 2 462

i 50 742

i 48 993

Effect of movements in foreign exchange

( i 127

)

( i 502

)

i 10

( i 619

)

( i 1 616

)

Acquisitions

i 2

i 607

i 1 063

i 1 671

i 4 739

Acquisitions through business combinations

i —

i 2

Disposals through sale and derecognition

( i 98

)

( i 544

)

i —

( i 642

)

( i 1 301

)

Disposals through the sale of subsidiaries

( i 6

)

( i 3

)

—

( i 9

)

( i 51

)

Transfer (to)/from other asset categories and other movements

i 242

i 1 181

( i 1 228

)

i 195

( i 23

)

Balance at end of the period

i 12 386

i 36 647

i 2 306

i 51 339

i 50 742

Depreciation and impairment losses

Balance at end of previous year

( i 4 292

)

( i 21 992

)

—

( i 26 286

)

( i 24 802

)

Effect of movements in foreign exchange

i 73

i 339

—

i 412

i 813

Depreciation

( i 199

)

( i 1 556

)

—

( i 1 755

)

( i 3 384

)

Disposals through sale and derecognition

i 35

i 506

—

i 541

i 1 168

Disposals through the sale of subsidiaries

i 3

i 5

—

i 9

i 46

Impairment losses

( i 2

)

( i 67

)

i —

( i 68

)

( i 183

)

Transfer to/(from) other asset categories and other movements

( i 9

)

( i 123

)

i —

( i 132

)

i 57

Balance at end of the period

( i 4 391

)

( i 22 886

)

—

( i 27 280

)

( i 26 286

)

Carrying amount

at 31 December 2021

i 8 082

i 13 915

i 2 462

i 24 459

at 30 June 2022

i 7 995

i 13 760

i 2 306

i 24 059

—

As at 30 June 2022 and 31 December 2021 there were i i no / significant restrictions on title on property, plant and equipment.

Contractual commitments to purchase property, plant and equipment amounted to i 725m US dollar as at 30 June 2022 compared t

o i 449m

US dollar as at 31 December 2021.

AB InBev’s net capital expenditures in the statement of cash flow amounted to i 1 939m US dollar in 2022 compared to i 2 104m

US dollar for the same period last year. Out of the total 2022 capital expenditures approximately i 32% was used to improve the company’s production facilities while i 49% was used for logistics and commercial investments and i 19% for improving administrative capabilities and for the purchase of hardware and software.

The transfer (to)/from other asset categories and other movements relates mainly to transfers from assets under construction to their respective asset categories, to contributions of assets to pension plans, to the separate presentation in the statement of financial position of property, plant and equipment held for sale in accordance with IFRS 5

Non-current assets held for sale and discontinued operations

and to the restatement of non-monetary assets under hyperinflation accounting in line with IAS 29

Financial reporting in hyperinflationary economies

Property, plant and equipment leased by the company

(right-of-use

assets) is detailed as follows:

30 June 2022

Million US dollar

Land and
buildings

Machinery,
equipment and
other

Total

Net carrying amount at June 30

i 1 655

i 607

i 2 261

Depreciation for the period ended June 30

( i 189

)

( i 25

)

( i 214

)

31 December 2021

Million US dollar

Land and
buildings

Machinery,
equipment and
other

Total

Net carrying amount at 31 December

i 1 696

i 523

i 2 219

Depreciation for the year ended 31 December

( i 373

)

( i 201

)

( i 574

)

Additions to

right-of-use

assets for the

six-month

period ended 30 June 2022 were i 301m US dollar (30 June 2021: i 347m US dollar).

Following the sale of Dutch and Belgian pub real estate to Cofinimmo in October 2007, AB InBev entered into lease agreements with a term of i 27 years. Furthermore, the company leases a number of warehouses, trucks, factory facilities and other commercial buildings, which typically run for a period of five to i ten years. Lease payments are increased annually to reflect market rentals, if applicable. None of the leases include contingent rentals.

The company leases out pub real estate for an average outstanding period of 6 to i 8 years and part of its own property under operating leases.

The expense related to short-term and

low-value

leases and variable lease payments that are not included in the measurement of the lease liabilities is not significant.

11.

Goodwill


Million US dollar	30 June 2022			31 December 2021

Acquisition cost
Balance at end of previous year		i 118 461			i 123 702
Effect of movements in foreign exchange		( i 632	)		( i 5 456	)
Transfers (to)/from intangible assets		( i 4	)		i 18
Hyperinflation monetary adjustments		i 180			i 196

Balance at end of the period		i 118 004			i 118 461


Impairment losses
Balance at end of previous year		( i 2 665	)		( i 2 731	)
Effect of movements in foreign exchange		i 53			i 66

Balance at end of the period		( i 2 612	)		( i 2 665	)

Carrying amount
Balance at end of the period		i 115 392			i 115 796

AB InBev’s annual goodwill impairment testing is performed during the fourth quarter of the year, or whenever a triggering event has occurred.

The carrying amount of goodwill was allocated to the different cash-generating units as follows:


Million US dollar	30 June 2022		31 December 2021

United States		i 33 603		i 33 607
Rest of North America		i 2 079		i 2 114
Mexico		i 12 424		i 12 062
Colombia		i 14 769		i 15 344
Rest of Middle Americas		i 23 431		i 22 769
Brazil		i 3 494		i 3 280
Rest of South America		i 1 253		i 1 173
Europe		i 2 045		i 2 244
South Africa		i 9 961		i 10 231
Rest of Africa		i 5 192		i 5 287
China		i 3 210		i 3 387
Rest of Asia Pacific		i 3 396		i 3 717
Global Export and Holding Companies		i 535		i 582

Total carrying amount of goodwill		i 115 392		i 115 796

12.	Intangible assets

30 June 2022

31 December 2021

Million US dollar

Brands

Commercial
intangibles

Software

Other

Total

Acquisition cost

Balance at end of previous year

i 38 409

i 2 832

i 3 437

i 336

i 45 015

i 45 885

Effect of movements in foreign exchange

( i 113

)

( i 24

)

( i 138

)

( i 41

)

( i 316

)

( i 1 289

)

Acquisitions and expenditures

i 9

i 181

i 26

i 228

i 444

i 760

Disposals through sale and derecognition

( i 2

)

( i 35

)

( i 229

)

( i 6

)

( i 272

)

( i 98

)

Disposals through the sale of subsidiaries

—

( i 3

)

Transfer (to)/from other asset categories and other movements

i 47

( i 164

)

i 162

( i 73

)

( i 28

)

( i 240

)

Balance at end of period

i 38 351

i 2 789

i 3 258

i 444

i 44 842

i 45 015

Amortization and impairment losses

Balance at end of previous year

( i 89

)

( i 2 083

)

( i 2 380

)

( i 32

)

( i 4 585

)

( i 4 358

)

Effect of movements in foreign exchange

—

i 19

i 100

i 4

i 123

i 192

Amortization

—

( i 78

)

( i 231

)

( i 11

)

( i 320

)

( i 644

)

Impairment

—

( i 0

)

( i 1

)

( i 0

)

( i 2

)

( i 176

)

Disposals through sale and derecognition

—

i 35

i 229

i 2

i 266

i 73

Disposals through the sale of subsidiaries

—

i 3

Transfer to/(from) other asset categories and other movements

—

i 113

( i 17

)

( i 1

)

i 95

i 326

Balance at end of period

( i 89

)

( i 1 993

)

( i 2 300

)

( i 39

)

( i 4 421

)

( i 4 585

)

Carrying value

at 31 December 2021

i 38 320

i 749

i 1 057

i 304

i 40 430

at 30 June 2022

i 38 262

i 796

i 958

i 405

i 40 421

AB InBev is the owner of some of the world’s most valuable brands in the beer industry. As a result, brands and certain distribution rights are expected to generate positive cash flows for as long as the company owns the brands and distribution rights. Given AB InBev’s more than

600-year

history, brands and certain distribution rights have been assigned indefinite lives.

Acquisitions and expenditures of commercial intangibles mainly represent supply and distribution rights, exclusive multi-year sponsorship rights and other commercial intangibles.

Intangible assets with indefinite useful lives are comprised primarily of brands and certain distribution rights that AB InBev purchased for its own products and are tested for impairment during the fourth quarter of the year or whenever a triggering event has occurred.

13.	Investments in associates

A reconciliation of the summarized financial information to the carrying amount of the company’s interests in material associates is as follows:

2022

2021

Million US dollar

AB InBev
Efes

Castel

Anadolu
Efes

AB InBev
Efes

Castel

Anadolu
Efes

Balance at 1 January

i 1 143

i 3 400

i 201

i 1 135

i 3 566

i 391

Effect of movements in foreign exchange

—

( i 245

)

( i 39

)

—

( i 101

)

( i 52

)

Dividends received

—

( i 16

)

—

( i 67

)

Share of results of associates

—

i 82

( i 5

)

( i 11

)

i 59

i 12

Exceptional share of results of associates

( i 1 143

)

—

Balance at 30 June

i —

i 3 237

i 141

i 1 124

i 3 524

i 284

The transfer (to)/from other asset categories and other movements mainly relates to transfers from assets under construction to their respective asset categories, to the separate presentation in the statement of financial position of intangible assets held for sale in accordance with IFRS 5

Non-current assets held for sale and discontinued operations

and to the restatement of non-monetary assets under hyperinflation accounting in line with IAS 29

Financial reporting in hyperinflationary economies

During the

six-month

period ended 30 June 2022, the company reported a

(

i 1 143

)

m US dollar exceptional share of results of associates related to its investment in AB InBev Efes (For more details refer to Note 4

Use of estimates and judgments

and Note 7

Exceptional items)

six-month

period ended 30 June 2022, associates that are not individually material contributed i 52m US dollar to the results of investment in associates (30 June 2021: i 40m US dollar).

1	The net assets are converted at the respective closing rates of December.

14.	Trade and other receivables


Million US dollar	30 June 2022		31 December 2021

Cash deposits for guarantees		i 179		i 168
Loans to customers		i 14		i 17
Tax receivable, other than income tax		i 136		i 116
Brazilian tax credits and interest receivables		i 1 085		i 960
Trade and other receivables		i 320		i 319

Non-current trade and other receivables		i 1 735		i 1 580


Trade receivables and accrued income		i 4 007		i 3 465
Interest receivables		i 29		i 18
Tax receivable, other than income tax		i 602		i 593
Loans to customers		i 91		i 99
Prepaid expenses		i 539		i 350
Other receivables		i 594		i 521

Current trade and other receivables		i 5 861		i 5 046

Ambev’s tax credits and interest receivables are expected to be collected over a period exceeding 12 months after the reporting date. As of 30 June 2022, the total amount of such credits and interest receivables represented i 1 085m US dollar (31 December 2021: i 960m US dollar). Refer to Note 8

Finance cost and income

for more details.

The carrying amount of trade and other receivables is a good approximation of their fair value as the impact of discounting is not significant. i The ageing of the current trade receivables and accrued income, interest receivable, other receivables and current and

non-current

loans to customers can be detailed as follows for 30 June 2022 and 31 December 2021 respectively:

Net carrying
amount as of
30 June 2022

Of which:
neither
impaired nor
past due on
the reporting
date

Of which not impaired as of the reporting

date and past due

Less than 30
days

Between 30
and 59 days

Between 60
and 89 days

More than 90
days

Trade receivables and accrued income

i 4 007

i 3 732

i 197

i 58

i 14

i 7

Loans to customers

i 105

i 85

i 2

i 1

i 17

—

Interest receivable

i 29

—

Other receivables

i 594

i 575

i 7

i 4

i 7

i 1

i 4 735

i 4 421

i 206

i 63

i 37

i 8

Net carrying
amount as of
31 December
2021

Of which:
neither
impaired nor
past due on
the reporting
date

Of which not impaired as of the reporting

date and past due

Less than 30
days

Between 30
and 59 days

Between 60
and 89 days

More than 90
days

Trade receivables and accrued income

i 3 465

i 3 223

i 164

i 62

i 11

i 5

Loans to customers

i 117

i 83

i 2

i 31

—

Interest receivable

i 18

—

Other receivables

i 521

i 513

i 2

i 1

i 2

i 3

i 4 120

i 3 836

i 167

i 65

i 44

i 8

The above analysis of the age of financial assets that are past due as at the reporting date but not impaired also includes

non-current

loans to customers. Past due amounts were not impaired when collection is still considered likely, for instance because the amounts can be recovered from the tax authorities, AB InBev has sufficient collateral, or the customer entered into a payment plan. Impairment losses on trade and other receivables recognized in the

six-month

period ended 30 June 2022 amount to i 70m US dollar (30 June 2021: i 25m US dollar).

AB InBev’s exposure to credit, currency and interest rate risks is disclosed in Note 19

Risks arising from financial instruments

15.	Cash and cash equivalents and investment securities


Million US dollar	30 June 2022			31 December 2021

Short-term bank deposits		i 2 756			i 6 542
Treasury Bills		i —			i 1 050
Cash and bank accounts		i 4 271			i 4 505

Cash and cash equivalents		i 7 027			i 12 097


Bank overdrafts		( i 130	)		( i 53	)

Cash and cash equivalents in the statement of cash flows		i 6 897			i 12 043

The company’s investment in Treasury Bills as at 31 December 2021 was to facilitate liquidity and for capital preservation.

The cash outstanding as at 30 June 2022 includes restricted cash for an amount of i 71m US dollar (31 December 2021: i 78m US dollar). This restricted cash relates to an outstanding consideration payable to former Anheuser-Busch shareholders that have not yet claimed the proceeds from the 2008 combination ( i 1m US dollar) and amounts deposited on a blocked account in respect to the state aid investigation into the Belgian excess profit ruling system ( i 70m US dollar).

Investment securities


Million US dollar	30 June 2022		31 December 2021

Investment in unquoted companies		i 138		i 139
Investment on debt securities		i 26		i 22

Non-current investments		i 164		i 161


Investment on debt securities		i 334		i 374

Current investments		i 334		i 374

As at 30 June 2022, current debt securities of i 334m US dollar mainly represented investments in government bonds (31 December 2021: i 374m US dollar). The company’s investments in such short-term debt securities are primarily to facilitate liquidity and for capital preservation.

16.	Changes in equity and earnings per share

STATEMENT OF CAPITAL

The tables below summarize the changes in issued capital and treasury shares during 2022:


	Issued capital
Issued capital	Million shares		Million US dollar
At the end of the previous year		i 2 019		i 1 736
Changes during the period		i —		i —

		i 2 019		i 1 736

Of which:
Ordinary shares		i 1 737
Restricted shares		i 282

Treasury shares

Result on the use

of treasury shares

Treasury shares

Million shares

Million US dollar

At the end of the previous year

i 38.2

( i 3 994

)

( i 4 366

)

Changes during the period

( i 1.7

)

i 184

( i 112

)

i 36.5

( i 3 810

)

( i 4 478

)

As at 30 June 2022, the share capital of AB InBev amounts to 1 238 608 344.12 euro ( i 1 736 million US dollar). It is represented by i 2 019 241 973 shares without nominal value, of which i 36 459 623 are held in treasury by AB InBev and its subsidiaries. All shares are ordinary shares, except for i 282 053 459 restricted shares. As at 30 June 2022, the total of authorized, unissued capital amounts to i 37m euro.

The treasury shares held by the company are reported in equity in Treasury shares.

The holders of ordinary and restricted shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. In respect of the company’s shares that are held by AB InBev and its subsidiaries, the economic and voting rights are suspended.

The restricted shares are unlisted, not admitted to trading on any stock exchange, and are subject to, among other things, restrictions on transfer until converted into new ordinary shares. As from 11 October 2021 (fifth anniversary of completion of the SAB combination), the restricted shares are convertible at the election of the holder into new ordinary shares on a

one-for-one

basis and they rank equally with the ordinary shares with respect to dividends and voting rights. By 30 June 2022, from the i 326 million restricted shares issued at the time of the SAB combination, i 44 million restricted shares were converted into new ordinary shares.

The shareholders’ structure is based on the notifications made to the company pursuant to the Belgian Law of 2 May 2007, which governs the disclosure of significant shareholdings in listed companies. It is included in the

Corporate Governance

section of AB InBev’s annual report.

ZENZELE SCHEMES IN SOUTH AFRICA

Following the combination with SAB in 2016, AB InBev decided to maintain the SAB Zenzele share-scheme (Zenzele Scheme), the broad-based black economic empowerment

(B-BBEE)

scheme, which provided opportunities for black South Africans, including employees (through the SAB Zenzele Employee Trust), SAB retailers (through SAB Zenzele Holdings Limited) and the SAB Foundation, to participate as shareholders of AB InBev’s indirect subsidiary, South African Breweries Pty Ltd (SAB). The Zenzele Scheme, originally implemented by SAB in 2010 as a

10-year

scheme, was amended at the time of the combination with SAB and matured on 31 March 2020. As part of the combination with SAB in 2016, AB InBev made a commitment to the South African Government and Competition Authorities to create a new

B-BBEE

scheme upon maturity of the Zenzele Scheme.

Obligations to the SAB Foundation and the employees as beneficiaries of the SAB Zenzele Employee Share Trust were settled in full on 15 April 2020. The obligations to SAB retailers, who participate in the Zenzele Scheme through SAB Zenzele Holdings, were partially settled ( i 77.4%) on 15 April 2020. As a direct consequence of the

COVID-19

outbreak, the remaining settlement (22,6%) was postponed and was performed on 28 May 2021, when the new scheme, Zenzele Kabili was created.

i 5.1

million AB InBev Treasury shares were used in 2021 for the settlement of part of the prior and the new

B-BBEE

schemes (based on the AB InBev share price and the ZAR Euro exchange rate as at 24 May 2021

). The new Zenzele scheme arrangement met the criteria under IFRS 2 to be classified as equity settled. The IFRS 2 charge for the period ended 3

June 2021 is reported in exceptional items (Refer to Note 7

exceptional

items

1	Considering the closing share price of 62.26 euro per share as at 24 May 2021 and ZAR per Euro exchange rate of 17.0064 as at 24 May 2021.

CHANGES IN OWNERSHIP INTERESTS

In accordance with IFRS 10

Consolidated Financial Statements

, the acquisition or disposal of additional shares in a subsidiary is accounted for as an equity transaction with owners.

In the

six-month

period ended 30 June 2022, there were no significant purchases or disposals of

non-controlling

interests in subsidiaries.

BORROWED SHARES

In order to fulfill AB InBev’s commitments under various outstanding share-based compensation plans, during the course of 2022, the company had stock lending arrangements in place for up to i 30 million shares, which were fully used to fulfill share-based compensation plan commitments. The company shall pay any dividend equivalent after tax in respect of such borrowed shares. This payment will be reported through equity as dividend.

DIVIDENDS

On i 27 April 2022,

a dividend of i 0.50 euro per share

or i 1 004m euro was approved at the shareholders’ meeting. The dividend was paid out as of i 5 May 2022.

On i 28 April 2021,

a dividend of

i 0.50

euro per share

or i 1 003m euro was approved at the shareholders’ meeting. The dividend was paid out as of i 6 May 2021.

TRANSLATION RESERVES

The translation reserves comprise all foreign currency exchange differences arising from the translation of the financial statements of foreign operations. The translation reserves also comprise the portion of the gain or loss on the foreign currency liabilities and on the derivative financial instruments determined to be effective net investment.

HEDGING RESERVES

The hedging reserves comprise the effective portion of the cumulative net change in the fair value of cash flow hedges to the extent that the hedged risk has not yet impacted profit or loss.

TRANSFERS FROM SUBSIDIARIES

The amount of dividends payable to AB InBev by its operating subsidiaries is subject to, among other restrictions, general limitations imposed by the corporate laws, capital transfer restrictions and exchange control restrictions of the respective jurisdictions where those subsidiaries are organized and operate. Capital transfer restrictions are also common in certain emerging market countries and may affect AB InBev’s flexibility in implementing a capital structure it believes to be efficient. As at 30 June 2022, the restrictions above mentioned were not deemed significant on the company’s ability to access or use the assets or settle the liabilities of its operating subsidiaries.

Dividends paid to AB InBev by certain of its subsidiaries are also subject to withholding taxes. Withholding taxes, if applicable, generally do not exceed i 15%.

OTHER COMPREHENSIVE INCOME RESERVES

The changes in the other comprehensive income reserves are as follows:

Million US dollar

Translation
Reserves

Hedging
reserves

Post-
employment
benefits

Total

OCI
Reserves

As per 1 January 2022

( i 33 554

)

i 481

( i 1 504

)

( i 34 577

)

Other comprehensive income/(loss)

Exchange differences on translation of foreign operations (gains/(losses))

i 2 101

—

i 2 101

Cash flow hedges

—

( i 210

)

—

( i 210

)

Re-measurements

of post-employment benefits

—

Other comprehensive income/(loss)

i 2 101

( i 210

)

—

i 1 892

As per 30 June 2022

( i 31 453

)

i 271

( i 1 504

)

( i 32 685

)

The decrease in translation reserves is primarily related to the combined effect of the appreciation of the closing rates of the Brazilian reais, the British Pound, the Mexican Pesos and the Peruvian Sol and the weakening of the closing rate of the Euro, which resulted in a foreign exchange translation adjustment of i 2 101m US dollar as of 30 June 2022 (

increase of equity).

Million US dollar

Translation
Reserves

Hedging
reserves

Post-
employment
benefits

Total

OCI
Reserves

As per 1 January 2021

( i 29 234

)

i 376

( i 1 983

)

( i 30 841

)

Other comprehensive income/(loss)

Exchange differences on translation of foreign operations (gains/(losses))

( i 1 347

)

—

( i 1 347

)

Cash flow hedges

—

i 184

—

i 184

Re-measurements

of post-employment benefits

—

( i 5

)

( i 5

)

Other comprehensive income/(loss)

( i 1 347

)

i 184

( i 5

)

( i 1 168

)

As per 3

June 2021

( i 30 581

)

i 560

( i 1 988

)

( i 32 009

)

EARNINGS PER SHARE

The calculation of basic earnings per share for the

six-month

period ended 30 June 2022 is based on the profit attributable to equity holders of AB InBev of i 1 692m US dollar (30 June 2021: i 2 458m US dollar) and a weighted average number of ordinary and restricted shares outstanding (including deferred share instruments and stock lending) per end of the period, calculated as

follows:


Million shares	2022		2021
Issued ordinary and restricted shares at 1 January, net of treasury shares		i 1 981		i 1 972
Effect of stock lending		i 30		i 30
Effect of delivery of treasury shares		i 1		i 2

Weighted average number of ordinary and restricted shares at 30 June		i 2 012		i 2 004

The calculation of diluted earnings per share for the

six-month

period ended 30 June 2022 is based on the profit attributable to equity holders of AB InBev of i 1 692m US dollar (30 June 2021: i 2 458m US dollar) and a weighted average number of ordinary and restricted shares (diluted) outstanding (including deferred share instruments and stock lending) at the end of the period,

calculated as follows:


Million shares	2022		2021
Weighted average number of ordinary and restricted shares at 30 June		i 2 012		i 2 004
Effect of share options, warrants and restricted stock units		i 35		i 41

Weighted average number of ordinary and restricted shares (diluted) at 30 June		i 2 047		i 2 045

The calculation of earnings per share before exceptional items is based on the profit before exceptional items, attributable to equity holders of AB InBev. The calculation of the Underlying EPS is based on the profit before exceptional items,

mark-to-market

gains/losses and hyperinflation impacts attributable to equity holders of AB InBev. A reconciliation of the profit attributable to equity holders of AB InBev to the profit before exceptional items, attributable to equity holders of AB InBev is calculated as follows:


For the six-month period ended 30 June Million US dollar	2022			2021¹
Profit attributable to equity holders of AB InBev		i 1 692			i 2 458
Net impact of exceptional items on profit (refer to Note 7)		i 1 168			i 466
Profit before exceptional items, attributable to equity holders of AB InBev		i 2 860			i 2 924
Mark-to-market losses/(gains) on certain derivatives related to the hedging of share-based payment programs (refer to Note 8)		( i 162	)		( i 348	)
Hyperinflation impacts		( i 26	)		i 30

Underlying profit		i 2 672			i 2 606

1	Amended to conform to 2022 presentation.

The table below sets out the EPS calculation:


For the six-month period ended 30 June Million US dollar	2022		2021
Profit attributable to equity holders of AB InBev		i 1 692		i 2 458
Weighted average number of ordinary and restricted shares		i 2 012		i 2 004

Basic EPS		i 0.84		i 1.23

Profit before exceptional items, attributable to equity holders of AB InBev		i 2 860		i 2 924
Weighted average number of ordinary and restricted shares		i 2 012		i 2 004

Basic EPS before exceptional items		i 1.42		i 1.46

Profit before exceptional items, mark-to-market gains/losses and hyperinflation impacts, attributable to equity holders of AB InBev		i 2 672		i 2 606
Weighted average number of ordinary and restricted shares		i 2 012		i 2 004

Underlying EPS		i 1.33		i 1.30

Profit attributable to equity holders of AB InBev		i 1 692		i 2 458
Weighted average number of ordinary and restricted shares (diluted)		i 2 047		i 2 045

Diluted EPS		i 0.83		i 1.20

Profit before exceptional items, attributable to equity holders of AB InBev		i 2 860		i 2 924
Weighted average number of ordinary and restricted shares (diluted)		i 2 047		i 2 045

Diluted EPS before exceptional items		i 1.40		i 1.43

Earnings per share before exceptional items and Underlying EPS are

non-IFRS

measures.

The average market value of the company’s shares for purposes of calculating the dilutive effect of share options and restricted stock units was based on quoted market prices for the period that the options and restricted stock units were outstanding. For the calculation of Diluted EPS before exceptional items, i 56m share options were anti-dilutive and not included in the calculation of the dilutive effect as at 30 June 2022 (30 June 2021: i 72m share options).

17. Interest-bearing loans and borrowings

This note provides information about the company’s interest-bearing loans and borrowings. For more information about the company’s exposure to interest rate and foreign exposure currency risk – refer to Note 19

Risks arising from financial instruments.


Million US dollar	30 June 2022		31 December 2021
Secured bank loans		i 60		i 75
Unsecured bond issues		i 80 151		i 85 433
Unsecured other loans		i 48		i 31
Lease liabilities		i 1 858		i 1 830

Non-current interest-bearing loans and borrowings		i 82 117		i 87 369


Secured bank loans		i 311		i 553
Unsecured bank loans		i 131		i 106
Unsecured bond issues		i 265		i 293
Unsecured other loans		i 9		i 9
Lease liabilities		i 469		i 447

Current interest-bearing loans and borrowings		i 1 185		i 1 408

Interest-bearing loans and borrowings		i 83 302		i 88 777

The current and

non-current

interest-bearing loans and borrowings amount to i 83.3 billion US dollar as at 30 June 2022, compared to i 88.8 billion US dollar as at 31 December 2021.

As at 30 June 2022, the company had i no outstanding balance on commercial papers (31 December 2021: i nil). The commercial papers include programs in US dollar and euro with a total authorized issuance up to i 5.0 billion US dollar and i 3.0 billion euro, respectively.

In 2022, Anheuser-Busch InBev SA/NV (AB InBev) announced that its wholly-owned subsidiary Anheuser- Busch InBev Finance Inc. (“ABIFI”) exercised its option to redeem the outstanding principal amounts for an aggregate principal amount of 3.1 billion US dollar of the following series of notes:

Date of redemption

Issuer
(abbreviated)

Title of series of notes redeemed

Currency

Original
principal
amount
outstanding

(in million)

Principal
amount
redeemed

(in million)

i 9 February 2022

i ABIFI

i 3.650% i Notes due 2026

i USD

i 1 633

i 1 March 2022

i ABIFI

i 4.915% i Notes due 2046

i USD

i 1 470

Net debt is defined as

non-current

and current interest-bearing loans and borrowings and bank overdrafts minus debt securities and cash and cash equivalents. Net debt is a financial performance indicator that is used by AB InBev’s management to highlight changes in the company’s overall liquidity position.

AB InBev’s net debt decreased to i 75.9 billion US dollar as at 30 June 2022, from i 76.2 billion US dollar as at 31 December 2021. Aside from operating results that are net of capital expenditures, the net debt is impacted mainly by the payment of interests and taxes ( i 3.8 billion US dollar), dividend payments to shareholders of AB InBev and Ambev ( i 1.3 billion US dollar) and foreign exchange impact on net debt ( i 2.3 billion US dollar decrease of net debt).

The following table provides a reconciliation of AB InBev’s net debt as at the dates indicated:


Million US dollar	30 June 2022			31 December 2021
Non-current interest-bearing loans and borrowings		i 82 117			i 87 369
Current interest-bearing loans and borrowings		i 1 185			i 1 408

Interest-bearing loans and borrowings		i 83 302			i 88 777

Bank overdrafts		i 130			i 53
Cash and cash equivalents		( i 7 027	)		( i 12 097	)
Interest bearing loans granted and other deposits (included within Trade and other receivables)		( i 177	)		( i 175	)
Debt securities (included within Investment securities)		( i 360	)		( i 396	)

Net debt		i 75 868			i 76 162

Reconciliation of liabilities arising from financing activities

The table below details changes in the company’s liabilities arising from financing activities, including both cash and

non-cash

changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be classified in the company’s consolidated cash flow statement from financing activities.


Million US dollar	Long-term debt, net of current portion			Short-term debt and current portion of long-term debt
Balance at 1 January 2022		i 87 369			i 1 408
Proceeds from borrowings		i 41			i 27
Payments on borrowings		( i 3 218	)		( i 302	)
Capitalization / (payment) of lease liabilities		i 356			( i 247	)
Amortized cost		i 31			i —
Unrealized foreign exchange effects		( i 2 259	)		( i 13	)
Current portion of long-term debt		( i 302	)		i 302
Loss on bond redemption and other movements		i 99			i 10

Balance at 30 June 2022		i 82 117			i 1 185


Million US dollar	Long-term debt, net of current portion			Short-term debt and current portion of long-term debt
Balance at 1 January 2021		i 95 478			i 3 081
Proceeds from borrowings		i 99			i 271
Payments on borrowings		( i 6 217	)		( i 2 152	)
Capitalization / (payment) of lease liabilities		i 423			( i 262	)
Amortized cost		i 32			i 4
Unrealized foreign exchange effects		( i 734	)		( i 7	)
Current portion of long-term debt		( i 316	)		i 316
Loss on bond redemption and other movements		i 579			( i 3	)

Balance at 30 June 2021		i 89 344			i 1 248

18. Share-based payments

Different share-based programs allow company senior management and members of the board of directors to receive or acquire shares of AB InBev, Ambev or Budweiser APAC. AB InBev has three primary share-based compensation plans, the share-based compensation plan (“Share-Based Compensation Plan”), the long-term restricted stock unit plan for directors (“Restricted Stock Units Plan for Directors”), and the long-term incentive plan for executives (“LTI Plan Executives”). For all option plans, the fair value of share-based payment compensation is estimated at grant date, using a binomial Hull model, modified to reflect the IFRS 2

Share-based Payment

requirement that assumptions about forfeiture before the end of the vesting period cannot impact the fair value of the option. All the company share-based payment plans are equity-settled. Amounts have been converted to US dollar at the average rate of the period, unless otherwise indicated. There were no significant changes to the terms and conditions of the programs disclosed in the annual consolidated financial statements for the year ended 31 December 2021.

Share-based payment transactions resulted in a total expense of i 237m US dollar for 2022, as compared to i 345m US dollar for the

six-month

period ended 30 June 2021, which included an amount of i 73m US dollar that was reported in exceptional items representing the IFRS 2 cost related to the Zenzele Kabili scheme. For more details, refer to Note 16

Changes in equity and earnings per share

AB INBEV SHARE-BASED COMPENSATION PROGRAMS

Share-Based Compensation Plan for Executives

In the

six-month

period ended 30 June 2022, AB InBev issued i 4.8m matching restricted stock units in relation to bonuses granted to company employees and management (30 June 2021: i 0.2m matching restricted stock units). These matching restricted stock units represent a fair value of approximately i 293m US dollar (30 June 2021: i 9m US dollar).

Restricted Stock Units Plan for Directors

In the

six-month

period ended 30 June 2022, i 0.1m restricted stock units with an estimated fair value of i 4m US dollar were granted to directors (30 June 2021: i 0.1m with an estimated fair value of i 4m US dollar).

Annual and Exceptional LTI Plans for Executives

In the

six-month

period ended 30 June 2022, AB InBev issued i 0.1m restricted stock units with an estimated fair value of i 8m US dollar under this plan (30 June 2021: i 0.2m with an estimated fair value of i 9m US dollar under this plan). These i 0.1m restricted stock units were granted to members of the Executive Committee (30 June 2021: i 0.1m restricted stock units).

Recurring LTI Restricted Stock Units Plans for Executives

In the

six-month

period ended 30 June 2022, approximately i 9 thousand discretionary restricted stock units were granted with an estimated fair value of i 1m US dollar (30 June 2021: approximately i 4 thousand discretionary restricted stock units with an estimated fair value of less than i 1m US dollar).

In the

six-month

period ended 30 June 2022, employees received i 0.1m restricted stock units under the People bet share purchase program representing a fair value of i 7m US dollar (30 June 2021: i 0.1m restricted stock units representing a fair value of i 7m US dollar).

Performance related incentive plan for ZX Ventures

In the

six-month

period ended 30 June 2022,

i no

performance units were granted to senior management of ZX Ventures (30 June 2021:

i 1

m performance units).

AMBEV SHARE-BASED COMPENSATION PROGRAMS

In the

six-month

period ended 30 June 2022, Ambev did i not issue matching restricted stock units under the 2005 Share-based compensation plan (30 June 2021:

i 30

thousand matching restricted stock units with estimated fair value of less than i 1m US dollar).

Under the 2018 Share-based compensation plan, Ambev issued i 19.5m matching restricted stock units in the

six-month

period ended 30 June 2022 with an estimated fair value of i 59m US dollar (30 June 2021:

i 2

m matching restricted stock units with an estimated fair value of

i 5

m US dollar).

BUDWEISER APAC SHARE-BASED COMPENSATION PROGRAM

Share-Based Compensation Plan

In the

six-month

period ended 30 June 2022, Budweiser APAC issued i 12.5m matching restricted stock units in relation to bonuses granted to Budweiser APAC employees with an estimated fair value of i 39m US dollar (30 June 2021: i 0.1m matching restricted stock units with an estimated fair value of less than i 1m US dollar).

New Restricted Stock Units Plan

In the

six-month

period ended 30 June 2022, i no restricted stock units were granted under this program (30 June 2021: i 0.6m restricted stock units with an estimated fair value of i 2m US dollar).

People Bet Plan

In the

six-month

period ended 30 June 2022, i 0.5m restricted stock units with an estimated fair value of i 2m US dollar were granted to a selected number of employees (30 June 2021: i no restricted stock units were granted under this program).

19. Risks arising from financial instruments

A.	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:

30 June 2022

31 December 2021¹

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

i 7 027

—

i 7 027

i 12 097

—

i 12 097

Trade and other receivables

i 5 234

—

i 5 234

i 4 607

—

i 4 607

Investment securities

i 26

i 334

i 138

i 498

i 22

i 374

i 139

i 535

Interest rate swaps

—

i —

—

i 20

i 17

i 37

Cross currency interest rate swaps

—

i 111

i 167

i 277

—

i 52

i 60

i 112

Foreign exchange forward contracts

—

i 466

—

i 238

Foreign currency futures

—

i 5

—

i —

Commodities

—

i 235

—

i 282

Financial assets

i 12 286

i 444

i 1 011

i 13 741

i 16 726

i 446

i 736

i 17 908

Non-current

i 540

i 111

i 161

i 811

i 526

i 73

i 115

i 714

Current

i 11 746

i 334

i 850

i 12 929

i 16 200

i 373

i 621

i 17 194

Trade and other payables

i 20 422

—

i 20 422

i 22 074

—

i 22 074

Non-current

interest-bearing loans and borrowings

i 82 117

—

i 82 117

i 87 369

—

i 87 369

Current interest-bearing loans and borrowings

i 1 185

—

i 1 185

i 1 408

—

i 1 408

Bank overdrafts

i 130

—

i 130

i 53

—

i 53

Equity swaps

—

i 5 148

—

i 5 148

—

i 5 412

—

i 5 412

Cross currency interest rate swaps

—

i 38

i 97

i 135

—

i 172

i 98

i 270

Foreign exchange forward contracts

—

i 16

i 164

i 180

—

i 26

i 103

i 129

Foreign currency futures

—

i 3

—

i 37

Commodities

—

i 385

—

i 35

Interest rate swaps

—

i 2

—

i 3

Financial liabilities

i 103 854

i 5 202

i 651

i 109 707

i 110 904

i 5 610

i 276

i 116 790

Non-current

i 83 138

i 265

—

i 83 403

i 88 182

i 100

—

i 88 282

Current

i 20 716

i 4 936

i 651

i 26 304

i 22 722

i 5 510

i 276

i 28 508

1	Amended to conform to 2022 presentation.

B.	INTEREST RATE RISK

The table below reflects the effective interest rates of interest-bearing financial liabilities at the reporting date as well as the currency in which the debt is denominated.

30 June 2022

Interest-bearing financial liabilities

Million US dollar

Before hedging

After hedging

Effective
interest rate

Amount

Effective
interest rate

Amount

Floating rate

Canadian dollar

—

i 3.04

i 2 050

Euro

i 0.25

i 1 020

i 0.25

i 1 020

Pound sterling

—

i 2.86

i 1 075

South Korean won

—

i 2.81

i 252

US dollar

i 2.89

i 450

—

Other

i 13.39

i 574

i 12.10

i 1 403

i 2 044

i 5 801

Fixed rate

Brazilian real

i 7.98

i 448

i 7.98

i 448

Canadian dollar

i 4.08

i 620

i 4.29

i 3 153

Euro

i 2.27

i 19 854

i 2.30

i 22 951

Pound sterling

i 4.34

i 3 241

i 4.42

i 2 636

South Korean won

i 3.46

i 38

i 0.72

i 1 952

US dollar

i 4.96

i 56 335

i 5.28

i 45 238

Other

i 10.59

i 852

i 7.52

i 1 254

i 81 389

i 77 631

31 December 2021¹

Before hedging

After hedging

Interest-bearing financial liabilities

Million US dollar

Effective
interest rate

Amount

Effective
interest rate

Amount

Floating rate

Canadian dollar

—

i 1.21

i 2 043

Euro

i —

i 1 113

i —

i 1 113

Pound sterling

—

i 1.05

i 1 002

South Korean won

—

i 1.67

i 502

US dollar

i 1.67

i 463

i —

Other

i 5.37

i 734

i 5.99

i 1 504

i 2 310

i 6 164

Fixed rate

Brazilian real

i 7.21

i 420

i 7.21

i 420

Canadian dollar

i 4.11

i 626

i 4.29

i 3 158

Euro

i 2.27

i 21 654

i 2.11

i 27 553

Pound sterling

i 4.35

i 3 611

i 4.43

i 2 937

South Korean won

i 3.85

i 32

i 0.87

i 1 695

US dollar

i 4.93

i 59 399

i 5.41

i 46 288

Other

i 8.38

i 779

i 8.80

i 615

i 86 520

i 82 666

As at 30 June 2022, the total carrying amount of the floating and fixed rate interest-bearing financial liabilities before hedging as listed above includes bank overdrafts of i 130m US dollar (31 December 2021: i 53m US dollar). As disclosed in the above table, i 5 801m US dollar or i 7.0% of the company’s interest-bearing financial liabilities bears interest at a variable rate.

1	Amended to conform to 2022 presentation.

The company estimated that the reasonably possible change of the market interest rates applicable to its floating rate debt after hedging is as

follows:

2022

Interest rate

Possible

Volatility

30 June 2022¹

interest rate

of rates in %

Euro

—

i 46.56

US dollar

i 2.29

i 1.07% - i 3.51%

i 53.38

2021

Interest rate

Possible

Volatility

31 December 2021¹

interest rate

of rates in %

Euro

—

i 10.64

US dollar

i 0.21

i 0.11% - i 0.31%

i 48.10

When AB InBev applies the reasonably possible increase/decrease in the market interest rates mentioned above on its floating rate debt at 30 June 2022, with all other variables held constant, 2022 interest expense would have been i 38m US dollar higher/lower (31 December 2021: i 8m US dollar). This effect would be more than offset by i 68m US dollar higher/lower interest income on AB InBev’s

interest-bearing

financial assets (31 December 2021: i 44m US dollar).

C.	EQUITY PRICE RISK

AB InBev enters into equity swap derivatives to hedge the price risk on its shares in connection with its share-based payments programs, as disclosed in Note 18

Share-based Payments.

AB InBev also hedges its exposure arising from shares issued in connection with the Modelo and SAB combinations (see also Note 8

Finance cost and income

). These derivatives do not qualify for hedge accounting and the changes in fair value are recorded in the profit or loss.

As at 30 June 2022, an exposure for an equivalent of i 100.5m of AB InBev shares was hedged, resulting in a total gain of i 296m US dollar recognized in the profit or loss account for the period, of which i 162m US dollar related to the company’s share-based payment programs and i 134m US dollar related to the Grupo Modelo and SAB combinations. As at 30 June 2022, liabilities for equity swap derivatives amounted to i 5.2 billion US dollar (31 December 2021: i 5.4 billion US dollar).

Equity price sensitivity analysis

The sensitivity analysis on the equity swap derivatives, calculated based on a i 30.36% (2021: i 26.51%) reasonably possible volatility of the AB InBev share price, with all the other variables held constant, would show i 1 628m US dollar positive/negative impact on the 2022 profit before tax (31 December 2021: i 1 604m US dollar).

D.	CREDIT RISK

Credit risk encompasses all forms of counterparty exposure, i.e., where counterparties may default on their obligations to AB InBev in relation to lending, hedging, settlement and other financial activities. The company has a credit policy in place and the exposure to counterparty credit risk is monitored.

AB InBev mitigates its exposure through a variety of mechanisms. It has established minimum counterparty credit ratings and enters into transactions only with financial institutions of investment grade rating. The company monitors counterparty credit exposures closely and reviews any external downgrade in credit rating immediately. To mitigate

pre-settlement

risk, counterparty minimum credit standards become more stringent with increases in the duration of the derivatives. To minimize the concentration of counterparty credit risk, the company enters into derivative transactions with different financial institutions.

The company also has master netting agreements with all of the financial institutions that are counterparties to over the counter (OTC) derivatives. These agreements allow for the net settlement of assets and liabilities arising from different transactions with the same counterparty. Based on these factors, AB InBev considers the impact of the risk of counterparty default as at 30 June 2022 to be limited.

1	Applicable Money Market Rates as of 30 June 2022 and 31 December 2021.

i Sensitivity analysis is assessed based on the yearly volatility using daily observable market data during 250 days at 30 June 2022 and at 31 December 2021 for the applicable Money Market Rates of the selected currencies. The sensitivity analysis does not include any spread applicable to the company’s funding.

Exposure to credit risk

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:

30 June 2022

31 December 2021

Million US dollar

Gross

Impairment

Net
carrying
amount

Gross

Impairment

Net
carrying
amount

Cash and cash equivalents

i 7 027

—

i 7 027

i 12 097

—

i 12 097

Derivatives

i 983

—

i 983

i 669

—

i 669

Investment securities

i 504

( i 6

)

i 498

i 541

( i 6

)

i 535

Trade receivables

i 4 408

( i 397

)

i 4 011

i 3 796

( i 331

)

i 3 465

Cash deposits for guarantees

i 179

—

i 179

i 168

—

i 168

Loans to customers

i 105

—

i 105

i 117

—

i 117

Other receivables

i 1 531

( i 53

)

i 1 478

i 1 272

( i 65

)

i 1 208

i 14 737

( i 455

)

i 14 281

i 18 660

( i 402

)

i 18 258

i There was no significant concentration of credit risks with any single counterparty as of 30 June 2022 and no single customer represented more than i 10% of the total revenue of the group in 2022. /

Impairment losses

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


	30 June 2022			31 December 2021¹
Balance at end of previous year		( i 402	)		( i 376	)
Impairment losses		( i 73	)		( i 37	)
Derecognition		i 18			i 30
Currency translation and other		i 2			( i 19	)

Balance at end of period		( i 455	)		( i 402	)

E.	LIQUIDITY RISK

Historically, AB InBev’s primary sources of cash flow have been cash flows from operating activities, the issuance of debt, bank borrowings and equity securities. AB InBev’s material cash requirements have included the following:

•

Debt servicing;

•

Capital expenditures;

•

Investments in companies;

•

Increases in ownership of AB InBev’s subsidiaries or companies in which it holds equity investments;

•

Share buyback programs; and

•

Payments of dividends and interest on shareholders’ equity.

The company believes that cash flows from operating activities, available cash and cash equivalents as well as short term investments, along with related derivatives and access to borrowing facilities, will be sufficient to fund capital expenditures, financial instrument liabilities and dividend payments going forward. It is the intention of the company to continue to reduce its financial indebtedness through a combination of strong operating cash flow generation and continued refinancing.

1	Amended to conform to 2022 presentation.

The following are the nominal contractual maturities of

non-derivative

financial liabilities including interest payments and derivative liabilities:

30 June 2022

Million US dollar

Carrying
amount

Contractual
cash flows

Less
than

1 year

1-2 years

2-3 years

3-5

years

More than

5 years

Non-derivative

financial liabilities

Secured bank loans

( i 371

)

( i 387

)

( i 316

)

( i 42

)

( i 5

)

( i 10

)

( i 14

)

Unsecured bank loans

( i 131

)

( i 131

)

( i 131

)

—

Unsecured bond issues

( i 80 415

)

( i 142 829

)

( i 3 800

)

( i 4 547

)

( i 4 646

)

( i 13 644

)

( i 116 192

)

Unsecured other loans

( i 57

)

( i 121

)

( i 9

)

( i 12

)

( i 56

)

( i 4

)

( i 40

)

Lease liabilities

( i 2 327

)

( i 2 681

)

( i 563

)

( i 499

)

( i 381

)

( i 500

)

( i 738

)

Bank overdraft

( i 130

)

( i 130

)

( i 130

)

—

Trade and other payables

( i 23 847

)

( i 24 099

)

( i 22 777

)

( i 264

)

( i 499

)

( i 272

)

( i 287

)

( i 107 279

)

( i 170 377

)

( i 27 727

)

( i 5 363

)

( i 5 586

)

( i 14 430

)

( i 117 271

)

Derivative financial liabilities

Foreign exchange derivatives

( i 183

)

( i 183

)

( i 183

)

—

Cross currency interest rate swaps

( i 138

)

( i 193

)

( i 13

)

( i 29

)

( i 44

)

( i 53

)

( i 54

)

Commodity derivatives

( i 383

)

( i 377

)

( i 375

)

( i 2

)

—

Equity derivatives

( i 5 148

)

( i 5 159

)

( i 5 028

)

( i 131

)

—

( i 5 853

)

( i 5 912

)

( i 5 599

)

( i 162

)

( i 44

)

( i 53

)

( i 54

)

Of which: related to cash flow hedges

( i 642

)

( i 642

)

( i 566

)

( i 2

)

—

( i 34

)

( i 41

)

31 December 2021

Million US dollar

Carrying
amount

Contractual
cash flows

Less
than

1 year

1-2 years

2-3 years

3-5 years

More than

5 years

Non-derivative

financial liabilities

Secured bank loans

( i 628

)

( i 636

)

( i 551

)

( i 53

)

( i 5

)

( i 9

)

( i 18

)

Unsecured bank loans

( i 106

)

( i 106

)

( i 106

)

i —

—

Unsecured bond issues

( i 85 726

)

( i 152 064

)

( i 3 479

)

( i 3 596

)

( i 6 192

)

( i 13 800

)

( i 124 997

)

Unsecured other loans

( i 40

)

( i 84

)

( i 11

)

( i 48

)

( i 5

)

( i 4

)

( i 16

)

Lease liabilities

( i 2 277

)

( i 2 429

)

( i 497

)

( i 470

)

( i 337

)

( i 450

)

( i 675

)

Bank overdraft

( i 53

)

( i 53

)

( i 53

)

—

Trade and other payables

( i 26 442

)

( i 26 643

)

( i 25 424

)

( i 314

)

( i 507

)

( i 96

)

( i 302

)

( i 115 272

)

( i 182 015

)

( i 30 121

)

( i 4 481

)

( i 7 046

)

( i 14 359

)

( i 126 008

)

Derivative financial liabilities

Foreign exchange derivatives

( i 166

)

( i 166

)

( i 166

)

—

Cross currency interest rate swaps

( i 273

)

( i 293

)

( i 147

)

( i 35

)

( i 32

)

( i 56

)

( i 23

)

Commodity derivatives

( i 34

)

( i 34

)

( i 34

)

—

Equity derivatives

( i 5 412

)

( i 5 420

)

( i 5 420

)

—

( i 5 885

)

( i 5 913

)

( i 5 767

)

( i 35

)

( i 32

)

( i 56

)

( i 23

)

Of which: related to cash flow hedges

( i 203

)

( i 203

)

( i 170

)

i —

( i 29

)

( i 4

)

F.	FAIR VALUE

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

Million US dollar

30 June
2022

31 December
2021

30 June
2022

31 December
2021

30 June
2022

31 December
2021

Foreign currency

Forward exchange contract

i 466

i 238

( i 180

)

( i 129

)

i 286

i 109

Foreign currency futures

i 5

i —

( i 3

)

( i 37

)

i 2

( i 37

)

Interest rate

Interest rate swaps

i —

i 38

( i 3

)

i —

( i 3

)

i 38

Cross currency interest rate swaps

i 277

i 111

( i 135

)

( i 273

)

i 142

( i 162

)

Commodities

Aluminum swaps

i 25

i 178

( i 350

)

( i 20

)

( i 325

)

i 158

Sugar futures

i 2

i 13

( i 1

)

i —

i 1

i 13

Energy

i 112

i 29

( i 6

)

( i 2

)

i 106

i 27

Other commodity derivatives

i 96

i 62

( i 28

)

( i 13

)

i 68

i 50

Equity

Equity derivatives

i —

( i 5 148

)

( i 5 412

)

( i 5 148

)

( i 5 412

)

i 983

i 669

( i 5 853

)

( i 5 886

)

( i 4 870

)

( i 5 216

)

Of which:

Non-current

i 133

i 48

( i 266

)

( i 100

)

( i 133

)

( i 52

)

Current

i 850

i 621

( i 5 587

)

( i 5 786

)

( i 4 738

)

( i 5 164

)

/ i

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, including derivatives financial instruments, have been excluded from the analysis as their carrying amount is a reasonable approximation of their fair value:

Interest-bearing financial liabilities

30 June 2022

31 December 2021

Million US dollar

Carrying

amount

Fair value

Carrying

amount

Fair value

Fixed rate

Australian dollar

( i 308

)

( i 302

)

( i 324

)

( i 366

)

Brazilian real

( i 448

)

( i 448

)

( i 420

)

( i 419

)

Canadian dollar

( i 620

)

( i 529

)

( i 626

)

( i 605

)

Euro

( i 19 854

)

( i 18 895

)

( i 21 654

)

( i 23 801

)

Pound sterling

( i 3 241

)

( i 3 102

)

( i 3 611

)

( i 3 913

)

US dollar

( i 56 335

)

( i 56 445

)

( i 59 399

)

( i 75 261

)

Other

( i 582

)

( i 527

)

( i 486

)

( i 471

)

( i 81 389

)

( i 80 248

)

( i 86 520

)

( i 104 836

)

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

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

Fair value hierarchy 30 June 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)

—

i 9

—

Derivatives at fair value through profit and loss

—

i 223

—

Derivatives in a cash flow hedge relationship

i 27

i 487

—

Derivatives in a net investment hedge relationship

—

i 245

—

i 27

i 965

—

Financial Liabilities

Deferred consideration on acquisitions at fair value

—

i 18

i 776

Derivatives at fair value through profit and loss

—

i 5 202

—

Derivatives in a cash flow hedge relationship

i 27

i 576

—

Derivatives in a fair value hedge relationship

—

i 3

—

Derivatives in a net investment hedge relationship

—

i 46

—

i 27

i 5 845

i 776

Fair value hierarchy 31 December 2021

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)

—

i 9

—

Derivatives at fair value through profit and loss

—

i 155

—

Derivatives in a cash flow hedge relationship

i 58

i 352

—

Derivatives in a fair value hedge relationship

—

i 17

—

Derivatives in a net investment hedge relationship

—

i 87

—

i 58

i 620

—

Financial Liabilities

Deferred consideration on acquisitions at fair value

—

i 832

Derivatives at fair value through profit and loss

—

i 5 611

—

Derivatives in a cash flow hedge relationship

i 52

i 141

—

Derivatives in a net investment hedge relationship

—

i 82

—

i 52

i 5 834

i 832

Non-derivative

financial liabilities

As part of the 2012 shareholders agreement between Ambev and ELJ, following the acquisition of Cervecería Nacional Dominicana S.A. (“CND”), a forward-purchase contract (combination of a put option and purchased call option) was put in place which may result in Ambev acquiring additional shares in CND. In July 2020, Ambev and ELJ amended the Shareholders’ Agreement to extend their partnership and change the terms and the exercise date of the call and put options. ELJ currently holds i 15% of CND and the put option is exercisable in 2023, 2024 and 2026. As at 30 June 2022, the put option on the remaining shares held by ELJ was valued at i 600m US dollar (31 December 2021: i 589m US dollar) and recognized as a deferred consideration on acquisitions at fair value in the “level 3” category above.

20. Collateral and contractual commitments for the acquisition of property, plant and equipment, loans to customers and other

In the

six-month

period ended 30 June 2022, there were no significant changes in collateral and contractual commitments. The commitments to purchase property, plant and equipment increased from i 449m US dollar as at 31 December 2021 to i 725m US dollar as at 30 June 2022.

/ i

21. Contingencies

The company has contingencies for which, in the opinion of management and its legal counsel, the risk of loss is possible but not probable and therefore no provisions have been recorded. Due to their nature, such legal proceedings and tax matters involve inherent uncertainties including, but not limited to, court rulings, negotiations between affected parties and governmental actions, and as a consequence AB InBev’s management cannot at this stage estimate the likely timing of resolution of these matters. The most significant contingencies are discussed below. Amounts have been converted to US dollar at the closing rate of the respective period.

AMBEV TAX MATTERS

As of 30 June 2022 and 31 December 2021, AB InBev’s material tax proceedings are related to Ambev and its subsidiaries. Estimates of amounts of possible loss are as follows:


Million US dollar	30 June 2022		31 December 2021
Income tax and social contribution		i 10 650		i 9 723
Value-added and excise taxes		i 4 834		i 4 285
Other taxes		i 823		i 663

		i 16 307		i 14 671

The most significant tax proceedings of Ambev are discussed below.

INCOME TAX AND SOCIAL CONTRIBUTION

Foreign Earnings

Since 2005, Ambev and certain of its subsidiaries have been receiving assessments from the Brazilian Federal Tax Authorities relating to the profits of its foreign subsidiaries. The cases are being challenged at both the administrative and judicial levels of the courts in Brazil.

The administrative proceedings have resulted in partially favorable decisions, which are still subject to review by the Administrative Court. In the judicial proceedings, Ambev has received favorable injunctions that suspend the enforceability of the tax credit, as well as favorable first level decisions, which remain subject to review by the second-level judicial court.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 7.7 billion Brazilian real (

i 1.5

billion US dollar) and Ambev has not recorded any provisions in connection therewith as it considers the chance of loss to be possible. For proceedings where it considers the chance of loss to be probable, Ambev has recorded a provision in the total amount of i 56 million Brazilian real ( i 11 million US dollar).

Goodwill InBev Holding

In December 2011, Ambev received a tax assessment related to the goodwill amortization resulting from the InBev Holding Brasil S.A. merger with Ambev. At the administrative level, Ambev received partially favorable decisions at both the Lower and Upper Administrative Court. Ambev filed judicial proceedings to discuss the unfavorable portion of the decisions of the Lower and the Upper Administrative Court and requested injunctions to suspend the enforceability of the remaining tax credit, which were granted.

In June 2016, Ambev received a new tax assessment charging the remaining value of the goodwill amortization and filed a defense. Ambev received partially favorable decisions at the first level administrative court and Lower Administrative Court. Ambev filed a Special Appeal which was partially admitted and awaits judgment by the Upper Administrative Court. For the unfavorable portion of the decision which became final at the administrative level, Ambev filed a judicial proceeding requesting an injunction to suspend the enforceability of the remaining tax credit, which was granted.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 10.7 billion Brazilian real (

i 2.0

billion US dollar) and Ambev has not recorded any provisions for this matter as it considers the chances of loss to be possible. In the event Ambev is required to pay these amounts, AB InBev will reimburse the amount proportional to the benefit received by AB InBev pursuant to the merger protocol as well as the related costs.

Goodwill Beverage Associate Holding (BAH)

In October 2013, Ambev received a tax assessment related to the goodwill amortization resulting from the merger of Beverage Associates Holding Limited (“BAH”) into Ambev. The decision from the first level administrative court was unfavorable to Ambev. Ambev filed an appeal to the Lower Administrative Court against the decision, which was partially granted. Ambev and the tax authorities filed Special Appeals to the Upper Administrative Court, which are awaiting judgment.

In April and August 2018, Ambev received new tax assessments charging the remaining value of the goodwill amortization and filed defenses. In April 2019, the first level administrative court rendered unfavorable decisions to Ambev. As a result thereof, Ambev appealed to the Lower Administrative Court. In November and December 2019, Ambev received partially favorable decisions at the Lower Administrative Court and filed Special Appeals to the Upper Administrative Court. The Special Appeals filed in both tax assessments are awaiting judgment by the Upper Administrative Court.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 2.4 billion Brazilian real ( i 0.5 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

Goodwill CND Holdings

In November 2017, Ambev received a tax assessment related to the goodwill amortization in calendar years 2012 to 2016 resulting from the merger of CND Holdings into Ambev. The decision from the first level administrative court was unfavorable to Ambev. Ambev filed an appeal to the Lower Administrative Court. In February 2020, the Lower Administrative Court rendered a partially favorable decision. Ambev and the tax authorities filed Special Appeals to the Upper Administrative Court. The Special Appeal filed by Ambev was partially admitted and is awaiting judgment.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 1.0 billion Brazilian real ( i 0.2 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chances of loss to be possible.

Disallowance of financial expenses

In 2015, 2016 and 2020, Ambev received tax assessments related to the disallowance of alleged

non-deductible

expenses and the deduction of certain losses mainly associated to financial investments and loans. Ambev presented defenses and, in November 2019, received a favorable decision at the first level administrative court regarding the 2016 case, which is subject to mandatory review by the Lower Administrative Court. In June 2021, Ambev received a partially favorable decision for the 2020 case at the first level administrative court and filed an appeal to the Lower Administrative Court. The favorable portion of the decision is also subject to mandatory review by the Lower Administrative Court. In June 2022, Ambev received a partially favorable decision at the first administrative level regarding the 2015 case and filed an appeal to the Lower Administrative Court. The favorable portion of the decision is also subject to mandatory review by the Lower Administrative Court.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 5.0 billion Brazilian real ( i 1.0 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

Disallowance of tax paid abroad

Since 2014, Ambev has been receiving tax assessments from the Brazilian Federal Tax Authorities, for calendar years as of 2007, related to the disallowance of deductions associated with alleged unproven taxes paid abroad by its subsidiaries and has been filing defenses. The cases are being challenged at both the administrative and judicial levels. In November 2019, the Lower Administrative Court rendered a favorable decision to Ambev in one of the cases (related to the 2010 tax period), which became definitive.

In January 2020, the Lower Administrative Court rendered unfavorable decisions regarding four of these assessments related to the periods of 2015 and 2016. In these cases, Ambev filed Special Appeals to the Upper Administrative Court which are pending judgment. With respect to the cases related to the periods of 2015 and 2016, tax assessments were filed to charge isolated fines due to the lack of monthly prepayments of income tax as a result of allegedly undue deductions of taxes paid abroad. In 2021, Ambev received unfavorable decisions from the first level administrative court in two of these assessments with respect to both the 2015 and 2016 isolated fine cases, and filed appeals in connection therewith, which are pending judgment by the Lower Administrative Court. There is a third tax assessment charging such isolated fine that awaits judgment by the first level administrative court.

The other cases are still awaiting final decisions at both administrative and judicial courts.

The updated assessed amount as of 30 June 2022 is approximately i 11.7 billion Brazilian real ( i 2.2 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

The Company has continued to take the same deductions for the calendar years following the assessed periods (the 2018 to 2022 calendar years). Therefore, if Ambev receives similar tax assessments for this period, Ambev management believes the outcome would be the same as those tax years already assessed.

Presumed Profit

In April 2016, Arosuco (a subsidiary of Ambev) received a tax assessment regarding the use of the “presumed profit” method for the calculation of income tax and the social contribution on net profits instead of the “real profit” method. In September 2017, Arosuco received an unfavorable first level administrative decision and filed an appeal. In January 2019, the Lower Administrative Court rendered a favorable decision to Arosuco, which became definitive.

In March 2019, Ambev received a new tax assessment regarding the same subject and filed a defense. In October 2019, Arosuco received an unfavorable first level administrative decision and filed an appeal.

The updated assessed amount related to this uncertain tax position as of 30 June 2022 is approximately i 0.6 billion Brazilian real ( i 0.1 billion US dollar). Arosuco has not recorded any provisions for this matter as it considers the chance of loss to be possible.

Deductibility of IOC expenses

In 2013, as approved in a Shareholders Meeting, Ambev implemented a corporate restructuring with the purpose of simplifying its corporate structure and converting into a single class of shares company, among other factors. One of the steps of such restructuring involved a contribution of shares followed by the merger of shares of its controlled entity, Companhia de Bebidas das Américas, into Ambev. As one of the results of such restructuring, the counterpart register of the positive difference between the value of shares issued for the merger and the net equity value of its controlled entity’s share was accounted, as per IFRS 10/CPC 36 and ICPC09, in an equity account of Ambev referred to as carrying value adjustment.

In November 2019, Ambev received a tax assessment from the Brazilian Federal Tax Authorities related to the interest on capital (“IOC”) deduction in 2014. The assessment refers primarily to the accounting and corporate effects of the restructuring carried out by Ambev in 2013 and the impact on the increase in the deductibility of IOC expenses. In August 2020, Ambev received a partially favorable decision at the first level administrative Court and filed an Appeal to the Lower Administrative Court, which awaits judgement. The favorable portion of the decision if subject to mandatory review by the Lower Administrative Court.

In December 2020, Ambev received a new tax assessment related to the deduction of the IOC in 2015 and 2016. The defense against such new tax assessment was filed by Ambev in January 2021. In June 2021, Ambev received a partially favorable decision and filed an appeal to the Lower Administrative Court, which also awaits judgment. Similar to the first tax assessment, the favorable portion of the decision is also subject to mandatory review by the Lower Administrative Court.

The updated assessed amount as of 30 June 2022 is approximately i 11.0 billion Brazilian real ( i 2.1 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

The uncertain tax position continued to be adopted by Ambev as it also distributed or accrued IOC in the years following the assessed period (2017-2022) and deducted such amounts from its Corporate Income Taxes taxable basis (2017-2021). Therefore, in a scenario where the IOC deductibility would also be questioned for the period after 2016, on the same basis and arguments as the aforementioned tax assessments, Ambev management estimates that the outcome of such potential further assessments would be consistent to the already assessed periods.

Disallowance on Income Tax deduction

In January 2020, Arosuco, a subsidiary of Ambev, received a tax assessment from the Brazilian Federal Tax Authorities regarding the disallowance of the income tax reduction benefit provided for in Provisional Measure

No. 2199-14/2001,

for calendar years 2015 to 2018, and an administrative defense was filed. In October 2020, the first level administrative Court rendered an unfavorable decision to Arosuco. Arosuco filed an appeal against the aforementioned decision and awaits judgment by the Lower Administrative Court. The updated assessed amount as of 30 June 2022 is approximately i 2.2 billion Brazilian real ( i 0.4 billion US dollar). Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

This uncertain tax position continued to be applied by the Company impacting calendar years following those assessed (2019-2022) in which it benefited from the income tax reduction provided for in Provisional Measure

No. 2199-14/2001.

In a scenario Arosuco is questioned on this matter for future periods, on the same basis and arguments as the aforementioned tax assessment, Arosuco management estimates that the outcome of such potential further assessments would be consistent to the already assessed periods.

ICMS VALUE ADDED TAX, EXCISE TAX (“IPI”) AND TAXES ON NET SALES

Manaus Free Trade Zone – IPI / Social contributions

In Brazil, goods manufactured within the Manaus Free Trade Zone intended for remittance elsewhere in Brazil are exempt and/ or

zero-rated

from excise tax (“IPI”) and social contributions (“PIS/COFINS”). With respect to IPI, Ambev’s subsidiaries have been registering IPI presumed tax credits upon the acquisition of exempted goods manufactured therein. Since 2009, Ambev has been receiving a number of tax assessments from the Brazilian Federal Tax Authorities relating to the disallowance of such credits.

Ambev and its subsidiaries have also been receiving charges from the Brazilian Federal Tax Authorities in relation to (i) federal taxes allegedly unduly offset with the disallowed presumed IPI excise tax credits that are under discussion in these proceedings and (ii) PIS/COFINS amounts allegedly due on Arosuco’s remittance to Ambev subsidiaries.

In April 2019, the Federal Supreme Court (“STF”) announced its judgment on Extraordinary Appeal No. 592.891/SP and 596.614/SP, with binding effects, deciding on the rights of taxpayers registering IPI excise tax presumed credits on acquisitions of raw materials and exempted inputs originating from the Manaus Free Trade Zone. As a result of this decision, Ambev reclassified part of the amounts related to the IPI cases as remote losses maintaining as possible losses only issues related to other additional discussions that were not included in the analysis of the STF. The cases are being challenged at both the administrative and judicial levels.

Ambev management estimates the possible loss related to these assessments to be approximately i 5.4 billion Brazilian real ( i 1.0 billion US dollar) as of 30 June 2022. Ambev has not recorded any provision in connection therewith.

IPI Suspension

In 2014 and 2015, Ambev received tax assessments from the Brazilian Federal Tax Authorities relating to IPI allegedly due over remittances of manufactured goods to other related factories. The cases are being challenged at both the administrative and judicial levels. In 2020, Ambev received a final partial favorable decision at the administrative level in one of the cases. The cases which are being challenged at the judicial level are still at an initial stage.

Ambev management estimates the possible loss related to these assessments to be approximately i 1.7 billion Brazilian real ( i 0.3 billion US dollar) as of 30 June 2022. Ambev has not recorded any provision in connection therewith.

ICMS tax credits

Ambev is currently challenging tax assessments issued by the states of São Paulo, Rio de Janeiro, Minas Gerais, among others, questioning the legality of ICMS tax credits arising from transactions with companies that have tax incentives granted by other states. The cases are being challenged at both the administrative and judicial level of the courts. On August 2020, the STF issued a binding decision (Extraordinary Appeal No. 628.075) ruling that tax credits granted by the states in the context of the ICMS tax war shall be considered unlawful. The decision also recognized that the states should abide by the tax incentives validation process provided for in Complementary Law No. 160/17. This decision became final (and no longer subject to appeal) in December 2021 and it does not change the likelihood of loss in Ambev’s tax assessments.

With respect to the assessments issued by the State of São Paulo, Ambev received unfavourable decisions at the second administrative level in April, May and June 2022. In these cases, Ambev will file appeals to the second administrative level.

Ambev management estimates the possible losses related to these assessments to be approximately i 2.0 billion Brazilian real ( i 0.4 billion US dollar) as of 30 June 2022. Ambev has not recorded any provision in connection therewith.

In addition, in 2018 and 2021, Ambev received tax assessments from the States of Rio Grande do Sul and São Paulo charging alleged differences in ICMS due to the disallowance of credits arising from transactions with suppliers located in the Manaus Free Trade Zone. With regard to the assessment issued by the State of Rio Grande do Sul, Ambev received a favourable judgment at the second administrative level in February 2022, which is still subject to appeal by tax authorities.

With respect to the assessments issued by the State of São Paulo, Ambev received unfavourable judgments at the first administrative level in May and June 2022. In these cases, Ambev will file appeals to the second administrative level.

Ambev management estimates the possible losses related to these assessments to be approximately i 0.7 billion Brazilian real ( i 0.1 billion US dollar) as of 30 June 2022.

ICMS-ST

Trigger

Over the years, Ambev has received tax assessments to charge supposed ICMS differences considered due when the price of the products sold by Ambev is above the fixed price table basis established by the relevant states, cases in which the state tax authorities understand that the calculation basis should be based on a value-added percentage over the actual prices and not the fixed table price. Ambev is currently challenging those charges before the courts. The cases are being challenged at both the administrative and judicial levels.

Ambev management estimates the total possible loss related to this issue to be approximately i 8.9 billion Brazilian real ( i 1.7 billion US dollar) as of 3 June 2022. Ambev has not recorded any provisions for this matter as it considers the chance of loss to be possible.

SOCIAL CONTRIBUTIONS

Since 2015, Ambev has received tax assessments issued by the Brazilian Federal Tax Authorities relating to PIS/COFINS amounts allegedly due over bonus products granted to its customers. The cases are being challenged at both the administrative and judicial levels of the courts. In 2019 and 2020, Ambev received final favorable decisions at the administrative level in some of these cases and favorable decisions in other cases that are still subject to review. At the judicial level, one case is pending decision by the second level judicial court after the first level judicial court rendered an unfavorable decision to Ambev.

Ambev management estimates the possible loss related to these assessments to be approximately i 1.8 billion Brazilian real ( i 0.3 billion US dollar) as of 30 June 2022. No related provision has been

made.

AB INBEV’S TANZANIA TAX MATTERS

Tanzania Breweries Limited (“TBL”), a subsidiary of AB InBev in Tanzania, received a tax assessment for i 850 billion Tanzanian shillings ( i 0.36 billion US dollar) related to income tax on the alleged capital gain derived from the change in underlying ownership of TBL which the Tanzania Revenue Authority claims was more than i 50% following the 2016 combination of SAB

and AB InBev.

TBL filed an appeal in the Tax Revenue Appeals Board, which has now been set for hearing in October 2022. TBL believes that the assessment is without merit and will vigorously defend against the assessment. No related provision has been made.

AB INBEV’S AUSTRALIAN BUSINESS TAX MATTERS

In 2019, SAB Australia Pty Limited (“SAB Australia”), a subsidiary of AB InBev, received amended tax assessments for i 0.4 billion Australian dollar ( i 0.3 billion US dollar) related to the interest deductions of SAB’s acquisition of the Foster’s group (the “Foster’s acquisition”), following an audit of the 2012 to 2014 income tax years. AB InBev disputed the amended assessments, which required a part payment of i 47 million US dollar, pending conclusion of the matter. In addition, a provision of i 0.1 billion US dollar was recorded in connection therewith.

The Australian tax authorities audited the 2014 to 2020 income tax years. The focus of the audit was on the tax treatment of the ongoing funding arrangements associated with the Foster’s acquisition and AB InBev’s combination with SAB. In June 2022,

AB InBev reached

settlement with the Australian tax authorities, resulting in a payment of i 0.1 billion Australian dollar ( i 0.1 billion US dollar) and

the

closure of the above-mentioned tax matters.

The Australia disposal was concluded on 1 June 2020 with

pre-transaction

income tax liabilities being subject to an indemnity by AB InBev.

OTHER TAX MATTERS

In February 2015, the European Commission opened an

in-depth

state aid investigation into the Belgian excess profit ruling system. On 11 January 2016, the European Commission adopted a negative decision finding that the Belgian excess profit ruling system constitutes an aid scheme incompatible with the internal market and ordering Belgium to recover the incompatible aid from a number of aid beneficiaries. The Belgian authorities contacted the companies that had benefitted from the system and advised each company of the amount of incompatible aid that is potentially subject to recovery. The European Commission’s decision was appealed to the European Union’s General Court by Belgium on 22 March 2016 and by AB InBev on 12 July 2016. On 14 February 2019, the European General Court concluded that the Belgian excess profit ruling system does not constitute illegal state aid. The European Commission appealed the judgment to the European Court of Justice. The public hearing in the framework of the appeal proceedings took place on 24 September 2020 and AB InBev was heard as an intervening party.

On 3 December 2020, the Advocate General (AG) of the European Court of Justice presented her

non-binding

opinion on the appeal procedure related to the 11 January 2016 opening decision, stating that, contrary to the 14 February 2019 judgment of the European General Court, the Belgian excess profit ruling system would fulfil the legal requirements for an “aid scheme”. In the initial European General Court judgment, the court limited itself to finding the Belgian excess profit rulings were not an “aid scheme”, but did not consider whether they constituted State aid. Consequently, the AG advised the European Court of Justice to refer the case back to the European General Court to review whether the Belgian excess profit rulings constitute State aid. On 16 September 2021, the European Court of Justice agreed with the AG and concluded that the excess profit ruling system constitutes an aid scheme and set aside the judgment of the European General Court. The case has been referred back to the European General Court to decide whether the Belgian excess profit ruling system constitutes illegal State aid as well as the other remaining open issues in the appeal.

Following the initial annulment of the European Commission’s decision by the European General Court in 2019, the European Commission opened new state aid investigations into the individual Belgian tax rulings, including the one issued to AB InBev in September 2019, to remedy the concerns that had led to the annulment. These investigations relate to the same rulings that were the subject of the European Commission’s decision issued on 11 January 2016. AB InBev has filed its observations in respect of the opening decisions with the European Commission. On 28 October 2021, the European Commission stayed the new state aid investigations into the individual Belgian tax rulings pending final resolution of the case.

In addition, the Belgian tax authorities have also questioned the validity and the actual application of the excess profit ruling that was issued in favor of AB InBev and have refused the actual tax exemption which it confers. AB InBev has filed a court claim against such decision before the Brussels court of first instance which ruled in favor of AB InBev on 21 June 2019, and again on 9 July 2021 for subsequent years. The Belgian tax authorities appealed both judgments.

In January 2019, AB InBev deposited i 68m euro ( i 71m US dollar) on a blocked account. Depending on the final outcome of the European Court procedures on the Belgian excess profit ruling system, as well as the pending Belgian court cases, this amount will either be slightly modified, or released back to the company or paid over to the Belgian State. In connection with the European Court procedures, AB InBev recognized a provision of i 68m euro ( i 71m US dollar) in 2020.

WARRANTS

Certain holders of warrants issued by Ambev in 1996 for exercise in 2003 proposed lawsuits to subscribe correspondent shares for an amount lower than Ambev considers as established upon the warrant issuance. In case Ambev loses the totality of these lawsuits, the issuance of i 172,831,574 shares would be necessary. Ambev would receive in consideration funds that are materially lower than the current market value. This could result in a dilution of about i 1% to all Ambev shareholders. Furthermore, the holders of these warrants are claiming that they should receive the dividends relative to these shares since 2003, approximately i 1.1 billion Brazilian real ( i 0.2 billion US dollar) in addition to legal fees. Ambev disputes these claims and intends to continue to vigorously defend these cases. All six lawsuits were ruled favorably to Ambev by the Superior Court of Justice (“STJ”). Three cases were dismissed by the STJ’s Special Court and the plaintiffs’ appeals were denied by the Brazilian Supreme Court (“STF”). The plaintiffs filed an appeal for further review by the STF chamber, which is pending a final decision. The fourth case was ruled favorably to Ambev by the STJ’s Special Court and the judgment became final. The fifth case was remitted to the STJ’s lower court for a new judgment and the sixth case was ruled favorably to Ambev and the decision became final. Considering all of these facts, Ambev and its external counsels strongly believe that the chance of loss in these cases is remote.

22. Related parties

On 11 March 2022, the company announced that it is forfeiting all financial benefits from the operations of AB InBev Efes, an associate which does business in Russia and Ukraine.

Regarding the other company’s related party transactions, there are

material changes during the

six-month

period ended 30 June 2022 as compared to 31 December 2021 in the company’s related party transactions

23. Supplemental guarantor financial information

European public debt

Certain debt securities issued outside the United States in reliance on Regulation S by Anheuser-Busch InBev SA/NV (“ABISA”) under its Euro Medium-Term Note Programme are guaranteed by Anheuser-Busch InBev Worldwide Inc. (“ABIWW”), Anheuser-Busch InBev Finance Inc. (“ABIFI”), Anheuser-Busch Companies, LLC (“ABC”), Brandbrew S.A. (“Brandbrew”), Brandbev S.à r.l. (“Brandbev”) and Cobrew NV (“Cobrew”) (collectively, the “Subsidiary Guarantors”). ABISA owns, directly or indirectly, i 100% of each of the Subsidiary Guarantors. The information presented below has been presented to satisfy the disclosure requirements of the United Kingdom Financial Conduct Authority

Summarized Financial Information

The first five columns in the table below present summarized financial information for (i) ABISA, (ii) ABIWW, (iii) ABIFI and (iv) ABC, and (v) Brandbrew, Brandbev and Cobrew. Investments in consolidated subsidiaries are presented under the equity method of accounting.

The final column presents financial information for ABISA and the Subsidiary Guarantors on a combined basis after elimination of intercompany transactions and balances among them and excluding investments in and equity in the earnings of both

non-

Guarantor Subsidiaries and Guarantor Subsidiaries.

Income Statement Data

For the

six-month

period ended 30 June 2022

Million US dollar

ABISA

ABIWW

ABIFI

ABC

Brandbrew,
Brandbev
and
Cobrew

Eliminations

Total ABISA
and
Subsidiary
Guarantors
after
eliminations

Revenue – external

i 184

—

i 7 075

—

i 7 259

Revenue from

non-guarantor

subsidiaries

i 42

—

i 109

—

i 151

Revenue from guarantor subsidiaries

—

i 22

—

( i 22

)

—

Cost of sales – external

( i 123

)

—

( i 2 969

)

—

( i 3 092

)

Cost of sales to

non-guarantor

subsidiaries

( i 65

)

—

( i 298

)

—

( i 363

)

Cost of sales to guarantor subsidiaries

( i 5

)

—

( i 14

)

—

i 19

—

Gross profit

i 34

—

i 3 924

—

( i 3

)

i 3 955

Selling, general and administrative expenses – external

( i 286

)

—

( i 1 889

)

( i 1

)

—

( i 2 176

)

Selling, general and administrative expenses

(non-guarantor

subsidiaries)

( i 33

)

—

( i 132

)

i 8

—

( i 157

)

Selling, general and administrative expenses (guarantor
subsidiaries)

i 187

i 620

—

( i 814

)

i 5

i 2

—

Other operating income/(expenses)¹ – external

i 22

—

i 12

( i 1

)

—

i 33

Other operating income/(expenses)¹

(non-guarantor

subsidiaries)

i 25

—

i 66

—

i 91

Other operating income/(expenses)¹ (guarantor subsidiaries)

i 79

( i 3

)

—

( i 77

)

—

i 1

—

Profit/(loss) from operations

i 28

i 617

—

i 1 092

i 9

—

i 1 747

Net finance income/(cost) – external

( i 354

)

( i 827

)

( i 242

)

( i 156

)

i 283

—

( i 1 295

)

Net finance income/(cost)

(non-guarantor

subsidiaries)

( i 13

)

i 1 089

i 10

( i 402

)

i 242

—

i 927

Net finance income/(cost) (guarantor subsidiaries)

i 486

( i 705

)

i 227

i 671

( i 679

)

—

Income tax expense

( i 4

)

( i 77

)

i 2

( i 150

)

—

( i 229

)

Profit/(loss)

i 143

i 98

( i 2

)

i 1 056

( i 145

)

—

i 1 150

Income from

non-guarantor

subsidiaries

i 1 510

( i 2

)

—

i 153

i 188

( i 1 849

)

—

Income from guarantor subsidiaries

i 39

i 1 209

—

( i 1 248

)

—

Profit of the year

i 1 692

i 1 305

( i 2

)

i 1 209

i 43

( i 3 097

)

i 1 150

1	Other operating income/(expense) include exceptional items.

Income Statement Data

For the

six-month

period ended 30 June 2021

Million US dollar

ABISA

ABIWW

ABIFI

ABC

Brandbrew,
Brandbev
and
Cobrew

Eliminations

Total ABISA
and
Subsidiary
Guarantors
after
eliminations

Revenue – external

i 192

—

i 7 001

—

i 7 193

Revenue from

non-guarantor

subsidiaries

i 63

—

i 121

—

i 184

Revenue from guarantor subsidiaries

—

i 17

—

( i 17

)

—

Cost of sales – external

( i 119

)

—

( i 2 732

)

—

( i 2 851

)

Cost of sales to

non-guarantor

subsidiaries

( i 73

)

—

( i 368

)

—

( i 441

)

Cost of sales to guarantor subsidiaries

( i 6

)

—

( i 9

)

—

i 15

—

Gross profit

i 57

—

i 4 030

—

( i 2

)

i 4 085

Selling, general and administrative expenses – external

( i 274

)

—

( i 1 974

)

i 8

—

( i 2 240

)

Selling, general and administrative expenses

(non-guarantor

subsidiaries)

i 65

—

( i 71

)

( i 1

)

—

( i 7

)

Selling, general and administrative expenses (guarantor
subsidiaries)

i 43

i 663

—

( i 709

)

—

i 2

—

Other operating income/(expenses)¹ – external

i 4

—

i 7

—

i 11

Other operating income/(expenses)¹

(non-guarantor

subsidiaries)

i 8

—

i 51

—

i 59

Other operating income/(expenses)¹ (guarantor subsidiaries)

i 24

( i 3

)

—

( i 21

)

—

Profit/(loss) from operations

( i 73

)

i 660

—

i 1 314

i 7

—

i 1 909

Net finance income/(cost) – external

( i 649

)

( i 1 244

)

( i 178

)

( i 420

)

i 825

—

( i 1 666

)

Net finance income/(cost)

(non-guarantor

subsidiaries)

i 122

i 987

i 30

i 66

( i 179

)

—

i 1 026

Net finance income/(cost) (guarantor subsidiaries)

i 71

( i 642

)

i 150

i 630

( i 208

)

—

Income tax expense

( i 3

)

( i 50

)

i —

( i 254

)

( i 1

)

—

( i 308

)

Profit/(loss)

( i 532

)

( i 289

)

i 2

i 1 336

i 444

—

i 961

Income from

non-guarantor

subsidiaries

i 2 334

( i 26

)

—

i 100

i 212

( i 2 620

)

—

Income from guarantor subsidiaries

i 656

i 1 434

—

( i 2 090

)

—

Profit of the year

i 2 458

i 1 119

i 2

i 1 436

i 656

( i 4 710

)

i 961

Balance Sheet Data

As at 30 June 2022

Million US dollar

ABISA

ABIWW

ABIFI

ABC

Brandbrew,
Brandbev
and
Cobrew

Eliminations

Total ABISA
and
Subsidiary
Guarantors
after
eliminations

Due from

non-guarantor

subsidiaries

i 12 121

i 13 869

i —

i 32 601

i 16 396

—

i 74 987

Due from guarantor subsidiaries

—

i 4 185

i —

—

( i 4 185

)

—

Due from subsidiaries

i 12 121

i 13 869

i 4 185

i 32 601

i 16 396

( i 4 185

)

i 74 987

Property, plant and equipment

i 53

—

i 4 250

—

i 4 303

Goodwill and intangible assets

i 1 329

—

i 55 426

i 97

—

i 56 852

Investments in subsidiaries

i 112 438

i 80 751

—

i 35 736

i 14 212

( i 243 137

)

—

Derivatives

—

i 133

—

i 133

Other

non-current

assets

—

i 230

i 2

i 19

—

i 251

Other

non-current

assets

i 113 820

i 80 981

i 2

i 95 431

i 14 442

( i 243 137

)

i 61 539

Total

non-current

assets

i 125 941

i 94 850

i 4 187

i 128 032

i 30 838

( i 247 322

)

i 136 526

Due from

non-guarantor

subsidiaries

i 323

i 6 352

i 516

i 3 887

i 2 438

—

i 13 516

Due from guarantor subsidiaries

i 922

i 236

i 213

i 3

i 957

( i 2 331

)

—

Due from subsidiaries

i 1 245

i 6 588

i 729

i 3 890

i 3 395

( i 2 331

)

i 13 516

Inventories

i 1

—

i 821

—

i 822

Derivatives

—

i 112

i 556

—

i 668

Trade and other receivables

i 188

—

i 840

i 41

—

i 1 069

Cash and cash equivalents

i 70

i 1

i 22

i 460

i 8 782

—

i 9 335

Other current assets

i 8

—

i —

i 2

—

i 10

Other current assets

i 267

i 1

i 22

i 2 233

i 9 381

—

i 11 904

Total current assets

i 1 512

i 6 589

i 751

i 6 123

i 12 776

( i 2 331

)

i 25 420

Total equity

i 71 551

i 58 888

i 678

i 75 930

i 22 027

( i 243 137

)

( i 14 063

)

Due to

non-guarantor

subsidiaries

i 16 065

i 7 250

—

i 20 770

i 3 350

—

i 47 435

Due to guarantor subsidiaries

i 4 185

i —

—

( i 4 185

)

—

Due to subsidiaries

i 20 250

i 7 250

i —

i 20 770

i 3 350

( i 4 185

)

i 47 435

Interest-bearing loans and borrowings

i 23 312

i 33 062

i 4 168

i 19 886

—

i 80 428

Employee benefits

i 3

—

i 804

—

i 807

Deferred tax liabilities

—

i —

i 6 533

i 42

—

i 6 575

Derivatives

—

i 266

—

i 266

Other

non-current

liabilities

—

i 233

—

i 233

Other

non-current

liabilities

i 23 315

i 33 062

i 4 168

i 27 456

i 308

—

i 88 309

Total

non-current

liabilities

i 43 565

i 40 312

i 4 168

i 48 226

i 3 658

( i 4 185

)

i 135 744

Due to

non-guarantor

subsidiaries

i 148

i 823

—

i 5 877

i 8 853

—

i 15 701

Due to guarantor subsidiaries

i 1 679

i 31

—

i 101

i 520

( i 2 331

)

—

Due to subsidiaries

i 1 827

i 854

—

i 5 978

i 9 373

( i 2 331

)

i 15 701

Interest-bearing loans and borrowings

i 1

i 206

—

i 63

—

i 270

Derivatives

i 2

—

i 124

i 5 267

—

i 5 393

Bank overdrafts

i 9 804

i 540

i 14

—

i 3 263

—

i 13 621

Trade and other payables

i 633

i 539

i 75

i 3 809

i 26

—

i 5 082

Other current liabilities

i 70

i 100

i 3

i 25

—

i 198

Other current liabilities

i 10 510

i 1 385

i 92

i 4 021

i 8 556

—

i 24 564

Total current liabilities

i 12 337

i 2 239

i 92

i 9 999

i 17 929

( i 2 331

)

i 40 265

Balance Sheet Data

As at 31 December 2021

Million US dollar

ABISA

ABIWW

ABIFI

ABC

Brandbrew,
Brandbev
and
Cobrew

Eliminations

Total ABISA
and
Subsidiary
Guarantors
after
eliminations

Due from

non-guarantor

subsidiaries

i 13 141

i 15 102

i 1 200

i 32 092

i 16 496

—

i 78 031

Due from guarantor subsidiaries

—

i 6 076

i 1 233

—

( i 7 309

)

—

Due from subsidiaries

i 13 141

i 15 102

i 7 276

i 33 325

i 16 496

( i 7 309

)

i 78 031

Property, plant and equipment

i 62

—

i 4 343

—

i 4 405

Goodwill and intangible assets

i 1 364

—

i 55 283

i 97

—

i 56 744

Investments in subsidiaries

i 112 722

i 79 596

—

i 35 862

i 15 017

( i 243 197

)

—

Derivatives

—

i 48

—

i 48

Other

non-current

assets

—

i 207

—

i 30

—

i 237

Other

non-current

assets

i 114 148

i 79 803

—

i 95 518

i 15 162

( i 243 197

)

i 61 434

Total

non-current

assets

i 127 289

i 94 905

i 7 276

i 128 843

i 31 658

( i 250 506

)

i 139 465

Due from

non-guarantor

subsidiaries

i 646

—

i 71

i 3 007

i 3 436

—

i 7 160

Due from guarantor subsidiaries

i 655

i 5 934

i 731

i 81

i 3 402

( i 10 803

)

—

Due from subsidiaries

i 1 301

i 5 934

i 802

i 3 088

i 6 838

( i 10 803

)

i 7 160

Inventories

—

i 961

—

i 961

Derivatives

—

i 132

i 293

—

i 425

Trade and other receivables

i 201

—

i 546

i 9

—

i 756

Cash and cash equivalents

i 1 127

i 7

i 367

i 8 156

—

i 9 664

Other current assets

i 9

—

i 57

i 2

—

i 68

Other current assets

i 1 337

i 7

i 2 063

i 8 460

—

i 11 874

Total current assets

i 2 638

i 5 941

i 809

i 5 151

i 15 298

( i 10 803

)

i 19 034

Total equity

i 68 669

i 57 635

i 678

i 71 348

i 23 849

( i 243 197

)

( i 21 018

)

Due to

non-guarantor

subsidiaries

i 17 517

i 7 325

—

i 20 768

i 3 350

—

i 48 960

Due to guarantor subsidiaries

i 6 076

i 1 233

—

( i 7 309

)

—

Due to subsidiaries

i 23 593

i 8 558

i —

i 20 768

i 3 350

( i 7 309

)

i 48 960

Interest-bearing loans and borrowings

i 25 483

i 33 064

i 7 268

i 19 905

—

i 85 720

Employee benefits

i 3

—

i 803

—

i 806

Deferred tax liabilities

—

i 1

i 6 520

i 60

—

i 6 581

Derivatives

—

i 100

—

i 100

Other

non-current

liabilities

—

i 110

—

i 110

Other

non-current

liabilities

i 25 486

i 33 064

i 7 269

i 27 338

i 160

—

i 93 317

Total

non-current

liabilities

i 49 079

i 41 622

i 7 269

i 48 106

i 3 510

( i 7 309

)

i 142 277

Due to

non-guarantor

subsidiaries

i 244

i 732

—

i 4 771

i 9 190

—

i 14 937

Due to guarantor subsidiaries

i 4 658

i 24

—

i 5 875

i 246

( i 10 803

)

—

Due to subsidiaries

i 4 902

i 756

—

i 10 646

i 9 436

( i 10 803

)

i 14 937

Interest-bearing loans and borrowings

i 1

i 218

—

i 19

—

i 238

Derivatives

i 2

—

i 12

i 5 666

—

i 5 680

Bank overdrafts

i 6 292

—

i 2

—

i 4 474

—

i 10 768

Trade and other payables

i 905

i 543

i 131

i 3 863

i 21

—

i 5 463

Other current liabilities

i 77

i 72

i 5

—

i 154

Other current liabilities

i 7 277

i 833

i 138

i 3 894

i 10 161

—

i 22 303

Total current liabilities

i 12 179

i 1 589

i 138

i 14 540

i 19 597

( i 10 803

)

i 37 240


Unaudited condensed consolidated interim financial statements			2
Unaudited condensed consolidated interim income statement			2
Unaudited condensed consolidated interim statement of comprehensive income/(loss)			3
Unaudited condensed consolidated interim statement of financial position			4
Unaudited condensed consolidated interim statement of changes in equity			5
Unaudited condensed consolidated interim statement of cash flows			6
Notes to the unaudited condensed consolidated interim financial statements			7

This ‘6-K’ Filing	Date	Other Filings

Filed on:	7/29/22
For Period end:	6/30/22
	11/13/18
	4/4/18	20-F/A, 6-K
	5/15/17	6-K
	12/16/16	8-A12B
	1/25/16
	1/17/13
	10/16/09
		List all Filings

Anheuser-Busch InBev SA/NV – ‘6-K’ for 6/30/22 – ‘EX-99.1’

On: Friday, 7/29/22, at 8:12am ET · For: 6/30/22 · Accession #: 1193125-22-205671 · File #: 1-37911

Previous ‘6-K’: ‘6-K’ on / for 7/28/22 · Next: ‘6-K’ on / for 10/27/22 · Latest: ‘6-K’ on / for 5/8/24 · 1 Reference: By: Anheuser-Busch InBev SA/NV – ‘S-8’ on 11/29/22

Current, Quarterly or Annual Report by a Foreign Issuer — Form 6-K — SEA’34

Filing Table of Contents

‘EX-99.1’ — Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

1 Subsequent Filing that References this Filing


	Six-month period ended
	30 June 2022			30 June 2021
U.S. dollar		29.3	%		32.2	%
Brazilian real		13.7	%		11.5	%
Mexican peso		10.3	%		9.7	%
Chinese yuan		9.4	%		10.7	%
Euro		5.5	%		6.1	%
Colombian peso		4.1	%		3.9	%
South African rand		3.9	%		3.8	%
Canadian dollar		3.4	%		3.8	%
Argentinean peso (1)		3.3	%		2.7	%
Peruvian peso		2.8	%		2.5	%
South Korean won		2.1	%		2.2	%
Pound sterling		2.1	%		2.7	%
Dominican peso		2.0	%		2.1	%
Other		8.0	%		6.0	%

Anheuser-Busch InBev SA/NV – ‘6-K’ for 6/30/22 – ‘EX-99.1’

On: Friday, 7/29/22, at 8:12am ET · For: 6/30/22 · Accession #: 1193125-22-205671 · File #: 1-37911

Previous ‘6-K’: ‘6-K’ on / for 7/28/22 · Next: ‘6-K’ on / for 10/27/22 · Latest: ‘6-K’ on / for 5/8/24 · 1 Reference: By: Anheuser-Busch InBev SA/NV – ‘S-8’ on 11/29/22

Current, Quarterly or Annual Report by a Foreign Issuer — Form 6-K — SEA’34Filing Table of Contents

‘EX-99.1’ — Miscellaneous Exhibit

This Exhibit is an HTML Document rendered as filed. [ Alternative Formats ]

Dates Referenced Herein and Documents Incorporated by Reference

1 Subsequent Filing that References this Filing

Current, Quarterly or Annual Report by a Foreign Issuer — Form 6-K — SEA’34

Filing Table of Contents