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

92 | Annual Report 2008 Financial Report
Terms and debt repayment schedule
Million euro Total 1 year or less 1-2 years 2-5 years More than 5 years
Secured bank loans 76 35 8 33 -
Unsecured bank loans 36 325 7 705 8 221 20 309 90
Unsecured bond issues 6 059 374 434 1 684 3 567
Secured other loans 5 - - 4 1
Unsecured other loans 125 3 24 69 29
Finance lease liabilities 38 3 6 4 25
Finance lease liabilities
Million euro
42 628 8 120 8 693 22 103 3 712
Payments
2008
Interest
2008
Principal
2008
Payments
2007
Interest
2007
Less than one year 6 3 3 3 - 3
Between one and five years 18 8 10 6 1 5
More than five years 71 46 25 9 2 7
Principal
2007
95 57 38 18 3 15
To finance the acquisition of Anheuser-Busch, AB InBev entered into a 45 billion US dollar senior facilities agreement and a 9.8 billion US
dollar bridge facility agreement, enabling us to consummate the acquisition, including the payment of 52.5 billion US dollar to shareholders
of Anheuser-Busch, refinancing certain Anheuser-Busch indebtedness, payment of all transaction charges, fees and expenses and accrued
but unpaid interest to be paid on Anheuser-Busch’s outstanding indebtedness. On 18 December 2008, AB InBev repaid the debt it incurred
under the bridge facility with the net proceeds of the rights issue and cash proceeds received by AB InBev from pre-hedging the foreign
exchange rate between the euro and the US dollar in connection with the rights issue. AB InBev intends to refinance a portion of the debt
incurred under the senior credit facility with the proceeds of one or more debt capital markets offerings. In addition, AB InBev may, in the
future, dispose of certain of the assets or businesses and expects to utilize proceeds from any such disposals to repay indebtedness incurred
to finance the acquisition.
AB InBev’s net financial debt increased to 40 713m euro as of December 2008, from 5 093m euro as of December 2007.
26. Employee benefits
AB InBev sponsors various post-employment benefit plans world-wide. These include pension plans, both defined contribution plans, and
defined benefit plans, and other post-employment benefits (OPEB). In accordance with IAS 19 Employee Benefits post-employment benefit
plans are classified as either defined contribution plans or defined benefit plans.
Defined contribution plans
For defined contribution plans, AB InBev pays contributions to publicly or privately administered pension funds or insurance contracts.
Once the contributions have been paid, the group has no further payment obligation. The regular contribution expenses constitute an
expense for the year in which they are due. For 2008, the defined contribution expenses for the company amounted to 12m euro compared
to 5m euro for 2007.
Defined benefit plans
The company contributes to 72 defined benefit plans, of which 57 are retirement plans, 15 are medical cost plans. Most plans provide benefits
related to pay and years of service. The German, French, Luxemburg and part of the Belgian, Brazilian, Canadian, UK and US plans are unfunded.
The assets of the other plans are held in legally separate funds set up in accordance with applicable legal requirements and common practice
in each country. The medical cost plans in Canada, US, Belgium and Brazil provide medical benefits to employees and their families during the
service period and after retirement in some cases.
The OPEB plans (including the medical cost plans) have a present value of an unfunded obligation of 628m euro.