The Best Beer Company in a Better World - Anheuser-Busch InBev

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60 | Annual Report 2008 Financial Report 1. Corporate information AB InBev is a publicly traded company based in Leuven, Belgium. It is the leading global brewer and one of the world’s top five consumer products companies. A true consumer-centric, sales driven company, AB InBev manages a portfolio of nearly 300 brands that includes global flagship brands Budweiser ® , Stella Artois ® and Beck’s ® , fast growing multi-country brands like Leffe ® and Hoegaarden ® , and strong ‘local jewels’ such as Bud Light ® , Skol ® , Brahma ® , Quilmes ® , Michelob ® , Harbin ® , Sedrin ® , Cass ® , Klinskoye ® , Sibirskaya Korona ® , Chernigivske ® , and Jupiler ® , among others. In addition, the company owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer and owner of the global Corona ® brand. AB InBev’s dedication to heritage and quality is rooted in brewing traditions that originate from the Den Hoorn brewery in Leuven, Belgium, dating back to 1366 and the pioneering spirit of the Anheuser & Co brewery, established in 1860 in St. Louis, USA. Geographically diversified with a balanced exposure to developed and developing markets, AB InBev leverages the collective strengths of its 120 000 employees based in operations in over 30 countries across the world. The Company strives to be the Best Beer Company in a Better World. On a pro-forma basis for 2008, the combined company would have generated revenue of 26.5b euro. For more information, please visit : www.ab-inbev.com. The consolidated financial statements of the company for the year ended 31 December 2008 comprise the company and its subsidiaries (together referred to as ‘AB InBev’ or the ‘company’) and the company’s interest in associates and jointly controlled entities. The financial statements were authorized for issue by the board of directors on 4 March 2009. 2. Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by the European Union up to 31 December 2008. AB InBev did not apply any European carve-outs from IFRS meaning that our financials fully comply with IFRS. AB InBev has not applied early any new IFRS requirements that are not yet effective in 2008. Certain 2007 amounts have been reclassified to conform to the 2008 presentation. 3. Summary of significant accounting policies (A) Basis of preparation The financial statements are presented in euro, rounded to the nearest million. Depending on the applicable IFRS requirements, the measurement basis used in preparing the financial statements is cost, net realizable value, fair value or recoverable amount. Whenever IFRS provides an option between cost and another measurement basis (e.g. systematic re-measurement), the cost approach is applied. The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application of IFRS that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next year are discussed in the relevant notes hereafter. (B) Principles of consolidation Subsidiaries are those companies in which AB InBev, directly or indirectly, has an interest of more than half of the voting rights or, otherwise, has control, directly or indirectly, over the operations so as to obtain benefits from the companies’ activities. In assessing control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Jointly controlled entities are consolidated using the proportionate method of consolidation.
Financial Report Annual Report 2008 | 61 Associates are undertakings in which AB InBev has significant influence over the financial and operating policies, but which it does not control. This is generally evidenced by ownership of between 20 % and 50 % of the voting rights. Associates are accounted for by the equity method of accounting, from the date that significant influence commences until the date that significant influence ceases. When AB InBev’s share of losses exceeds the carrying amount of the associate, the carrying amount is reduced to nil and recognition of further losses is discontinued except to the extent that AB InBev has incurred obligations in respect of the associate. The financial statements of our subsidiaries, jointly controlled entities and associates are prepared for the same reporting year as the parent company, using consistent accounting policies. All intercompany transactions, balances and unrealized gains and losses on transactions between group companies have been eliminated. Unrealized gains arising from transactions with associates and jointly controlled entities are eliminated to the extent of AB InBev’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. A listing of the company’s most important subsidiaries and associates is set out in note 36 AB InBev companies. (C) Summary of changes in accounting policies The accounting policies applied are consistent with those of the previous financial year. (D) Foreign currencies Foreign currency transactions Foreign currency transactions are accounted for at exchange rates prevailing at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the balance sheet date rate. Gains and losses resulting from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognized in the income statement. Non-monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated to euro at foreign exchange rates ruling at the dates the fair value was determined. Translation of the results and financial position of foreign operations Assets and liabilities of foreign operations are translated to euro at foreign exchange rates prevailing at the balance sheet date. Income statements of foreign operations, excluding foreign entities in hyperinflationary economies, are translated to euro at exchange rates for the year approximating the foreign exchange rates prevailing at the dates of the transactions. The components of shareholders’ equity are translated at historical rates. Exchange differences arising from the translation of shareholders’ equity to euro at year-end exchange rates are taken to equity (translation reserves). In hyperinflationary economies, re-measurement of the local currency denominated non-monetary assets, liabilities, income statement accounts as well as equity accounts is made by applying a general price index. These re-measured accounts are used for conversion into euro at the closing exchange rate. For subsidiaries and associated companies in countries with hyperinflation where a general price index method is not yet stabilized and does not provide reliable results, the balance sheet and income statement are re-measured into euro as if it was the operation’s functional currency. In 2008 and 2007, AB InBev had no operations in hyperinflationary economies. Exchange rates The most important exchange rates that have been used in preparing the financial statements are : 1 euro equals : Closing rate Average rate 2008 2007 2008 2007 Argentinean peso 4.801091 4.638585 4.609697 4.270985 Brazilian real 3.252403 2.607528 2.630984 2.666233 Canadian dollar 1.699799 1.444901 1.549131 1.465551 Chinese yuan 9.495594 10.752457 10.363124 10.394794 Pound sterling 0.952500 0.733350 0.788463 0.684171 Russian ruble 41.440471 35.933738 36.420585 34.989503 South Korean won 1 838.235294 1 377.410468 1 584.786054 1 265.822785 Ukrainian hryvnia 10.855406 7.419443 7.629162 6.886768 US dollar 1.391699 1.472099 1.478933 1.367635
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Our dream is to become The Best Bee
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Anheuser-Busch InBev is a publicly
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50% 40% 30% 20% 10% 04 05 06 07 07
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Global brands Multi-country brands
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The Net Debt to EBITDA ratio not on
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Success in China China is the large
Page 13 and 14: World-class efficiency World-class
Page 15: Business Service Center Excellence
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Page 21 and 22: Stella Artois Légère In 2008, we
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Contacts Registered office Anheuser
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The Best Beer Company in a Better World - Anheuser-Busch InBev

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