Revenue Management Fabricio Zonzini VP Disruptive Growth APAC - PowerPoint PPT Presentation

Revenue Management Fabricio Zonzini VP Disruptive Growth APAC

Connection with Strategy

Personal Introduction

Revenue management is a driver of both revenues and market share in a sustainable way. Grow NR/HL ahead of CPI Allocate resources for market share expansion Volume Share Evolution Growth Index Evolution 17.5% 127 Share NR/HL Org var 15.0% 106 13.4% 100 CPI 12.3% 1 0.9 pp pp 0.3 0.1 pp 2012 2013 2014 2015 2011 2013 2012 2014 • • Drive aggressive expansion plan while still Maximize revenue potential in comparison to maintaining a strong revenue management agenda CPI

Revenue Management – Strategic Priorities Right portfolio/price Support Market Centralization & Mix Designed Process Control for Trade-Up in the right channel Share Expansion AB Top NL KA Premium Core+ Core NL CD Rate: 10% /TT White Areas 5%< --- --- 100% 30% Contract Stage 1 100% 50% (Early) 5-20% --- --- AB Stage 1 20% (Late) 100% 50% 20-35% --- --- +9% Stage 2 100% 100% 30% 30% >35% --- --- (Early) Promotion CD Stage 2 NR/HL CAGR 100% 100% 100% 100% >35% 15-30% --- (Late) 1H12-1H15 Stage 3 100% 100% 100% 100% >35% >30% --- TT Consolidate >35% >30% >25% 100% 100% 100% 100% Mix: 90% • Align with distribution • Strengthen controls in • Key mechanism for supporting • Distribution and expansion approach order to build trade up and mix strategy. investment type align • Rate increase coupled with strict competitiveness in with channel focus portfolio, channel and investment controls. geographic coverage

Strategic Priorities – Mix designed for Trade-up Mix Designed Budweiser Harbin for Trade-Up Super Core++ Premium Premium + Core+ Premium Core/Core- • • Build PTC laddering to facilitate trading up Build PTC laddering to facilitate trading up • Portfolio built with clear • • Continuously lifting the premium ceiling Revenue management to support share price architecture premiumness through innovation and pricing gains through penetration and/or frequency 90% 90% Mix contribution to Net revenue / Hectoliter growth (Actual 1H12 – 1H15)

Strategic Priorities – Right portfolio/price in the right channel Right portfolio/price Distribution and investment type align with channel focus in the right channel NL AB CD TT Product placement and investment guidelines by BRAND channel to (communication) protect Alum. bottle PACK Big bottle Big bottle Cans premiumization Small Bottle (lead) objectives Promotional YES NO NO YES pricing (Y/N)

Strategic priorities – Support market share expansion Support Market Resource allocation to support right brand growth Share Expansion Investment Level NL/KA CHANNELS AB CD TT NO PRESENCE HIGHLY DISTRIBUTED Expansion direction

Strategic priorities – Centralization and process control Centralization & Process Control Investment Guideline i Premium Image Core Segment Commands Requires clear AB iInvest Premium Price pricing strategies Centralized pricing i • Pricing strategy specific to segment and brand positioning $ AB iPrice Rate as % of CPI Discount Declining Commercial Process 100% i i (H1 all years) (% of revenue) AB iTarget 50% 80% Platform Enablement 50% 27% 19% 0% 2012 2013 2014 2015 2013 2014 2015H1 10% Rate contribution to Net revenue / Hectoliter growth (Actual 1H12 – 1H15)

Continuous improvement – Journey COMPLEX FUTURE 4 CONFUSION VALUE CREATION 3 DE-CENTRALIZED CENTRALIZED 2015 SUB-OPTIMIZATION CONTROL 2 2012 1 2010 OPERATIONAL