Financial_Report_2009

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Independent auditors’ report

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Consolidated statement of financial position

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

ƴƵƳƳƻas reported, adjusted to reưect the opening balance sheet adjustments following the completion of the purchase price allocation of the Anheuser-Busch acquisition as required by IFRS ƶ Business Combinations §ƷƸ, which requires retrospective application of post-acquisition adjustments (refer Note ƹ Acquisitions and disposals

ofbsubsidiaries).

ƵƵƳƳƻ amounts previously reported in euro, as restated for the change in presentation currency to USbdollar and reclassiƮed to conform to the ƵƳƳƼ presentation in line with the adoption of the Improvements to IFRSs (ƵƳƳƻ).

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Notes to the consolidated financial statements

ƴ Corporate information

Ƶ Statement of compliance

ƶ Summary of significant accounting policies Ʒ Use of estimates and judgments

Ƹ Segment reporting

ƹ Acquisitions and disposals of subsidiaries ƺ Other operating income/(expenses)

ƻ Non-recurring items

Ƽ Payroll and related benefits

ƴƳ Additional information on operating expenses by nature ƴƴ Finance cost and income

ƴƵ Income taxes

ƴƶ Property, plant and equipment ƴƷ Goodwill

ƴƸ Intangible assets

ƴƹ Investment in associates ƴƺ Investment securities

ƴƻ Deferred tax assets and liabilities ƴƼ Inventories

ƵƳ Trade and other receivables Ƶƴ Cash and cash equivalents

ƵƵ Assets and liabilities held for sale

Ƶƶ Changes in equity and earnings per share ƵƷ Interest-bearing loans and borrowings ƵƸ Employee benefits

Ƶƹ Share-based payments Ƶƺ Provisions

Ƶƻ Trade and other payables

ƵƼ Risks arising from financial instruments ƶƳ Operating leases

ƶƴ Collateral and contractual commitments for the acquisition of property, plant and equipment, loans to customers and other ƶƵ Contingencies

ƶƶ Related parties

ƶƷ Events after the balance sheet date ƶƸ ABbInBev companies

ƴ. Corporate information

Anheuser-BuschbInBev is a publicly traded company (Euronext: ABI) based in Leuven, Belgium, with an American Depositary Receipt secondary listing on the New York Stock Exchange (NYSE: BUD). It is the leading global brewer and one of the world’s top fivebconsumer products companies. A true consumer-centric, sales driven organization, ABbInBev manages a portfolio of well over ƵƳƳbbrands that includes global flagship brands Budweiser®, Stella Artois® and Beck’s®, fast growing multi-country brands like Leffe® and Hoegaarden®, and strong “local champions” such as Bud Light®, Skol®, Brahma®, Quilmes®, Michelob®, Harbin®, Sedrin®, Klinskoye®, Sibirskaya Korona®, Chernigivske®, and Jupiler®, among others. In addition, the company owns a ƸƳpercent equity interest in the operating subsidiary of Grupo Modelo, Mexico’s leading brewer and owner of the global Corona® brand. ABbInBev’s dedication to heritage and quality is rooted in brewing traditions that originate from the Den Hoorn brewery in Leuven, Belgium, dating back to ƴƶƹƹ and the pioneering spirit of the Anheuser & Co brewery, which traces its origins back to ƴƻƸƵ in St. Louis, USA. Geographically diversified with a balanced exposure to developed and developing markets, ABbInBev leverages the collective strengths of its approximately ƴƴƹbƳƳƳbemployees based in operations in over Ƶƶ countries across the world. The company strives to be the Best Beer Company in a Better World. In ƵƳƳƼ, ABbInBev realized ƶƹ.ƻbillion USbdollar revenue. For more information, please visit: www.ab-inbev.com.

The consolidated financial statements of the company for the year ended ƶƴbDecember ƵƳƳƼcomprise the company and its subsidiaries (together referred to as “ABbInBev” 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 ƶbMarchbƵƳƴƳ.

Ƶ. Statement of compliance

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IASB”) and in conformity with IFRS as adopted by the European Union up to ƶƴbDecemberbƵƳƳƼ(collectively “IFRS”). ABbInBev did not apply any European carve-outs from IFRS. ABbInBev has not applied early any new IFRS requirements that are not yet effective in ƵƳƳƼ.

ƶ. Summary of significant accounting policies

(A) Basis of preparation and measurement

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.bsystematic re-measurement), the cost approach is applied.

(B) Functional and presentation currency

Effective ƴ January ƵƳƳƼ, the company changed the presentation currency of the consolidated financial statements from the euro to the USbdollar, reflecting the post-Anheuser-Busch acquisition profile of the company’s revenue and cash flows, which are now primarily generated in USbdollars and USbdollar-linked currencies. ABbInBev believes that this change provides greater alignment of the presentation currency with ABbInBev’s most significant operating currency and underlying financial performance. For comparability purposes, the company has restated the historical financial statements as of and for the year ended ƶƴbDecember ƵƳƳƻ from the euro to the USbdollar. Unless otherwise specified, all financial information included in these financial statements have been stated in USbdollars and has been rounded to the nearest million. The functional currency of the parent company is the euro.

(C) Use of estimates and judgments

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.

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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.

(D) Principles of consolidation

Subsidiaries are those companies in which ABbInBev, 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 govern the financial and operating policies in order to obtain benefits from the companies’ activities. In assessing control, potential voting rights that presently are exercisable are taken into account. Control is presumed to exist where ABbInBev owns, directly or indirectly, more than one half of the voting rights (which does not always equate to economic ownership), unless it can be demonstrated that such ownership does not constitute control. 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 those entities over whose activities AB InBev has joint control, established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Jointly controlled entities are consolidated using the proportionate method of consolidation.

Associates are undertakings in which ABbInBev has significant influence over the financial and operating policies, but which it does not control. This is generally evidenced by ownership of between ƵƳ% and ƸƳ% of the voting rights. In certain instances, the company may hold directly and indirectly an ownership interest of ƸƳ% or more in an entity, yet not have effective control. In these instances, such investments are accounted for as associates. 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 ABbInBev’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 ABbInBev has incurred obligations in respect of the associate.

The financial statements of the company’s 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 ABbInBev’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 ƶƸABbInBev companies.

(E) Summary of changes in accounting policies

The following new standards and amendments to standards are mandatory for the first time for the financial year beginning ƴbJanuarybƵƳƳƼ.

IAS ƴ(revised) Presentation of financial statements The revised standard prohibits the presentation of items of income and expenses (that is ‘non-owner changes in equity’) in the statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity. All ‘non-owner changes in equity’ are required to be shown in a performancebstatement.

Entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income).

ABbInBev has elected to present two statements: an income statement and a statement of comprehensive income. The consolidated financial statements have been prepared under the revised disclosure requirements.

Improvements to IFRSs (ƵƳƳƻ) Effective ƴJanuary ƵƳƳƼ, ABbInBev adopted the improvements to IFRSs (ƵƳƳƻ), which is a collection of minor improvements to existing standards.

In line with these improvements financial assets and liabilities classified as held for trading in accordance with IAS ƶƼ(derivatives) have been split in current and in non-current assets and liabilities. Also the presentation of the comparative ƵƳƳƻamounts was adapted in this sense.

The application of other improvements had no material impact on ABbInBev’s financial results or financial position.

Amended IFRS ƺ Financial Instruments: Disclosures Effective ƴ January ƵƳƳƼ, ABbInBev adopted the amendment to IFRS ƺ for financial instruments that are measured in the balance sheet at fair value, this requires disclosure of fair value measurements by level of the following fair value hierarchy:

(i)Quoted market prices (unadjusted) in active markets for identical assets or liabilities (level ƴ);

(ii)Inputs other than quoted market prices included within level ƴthat are observable for the assets or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level Ƶ);

(iii)Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level ƶ).

The application of this amendment had no impact on ABbInBev’s financial results or financial position. Please refer to Note ƵƼ Risks arising from financial instruments for additional disclosures.

IFRS ƻ Operating segments Effective from ƴ January ƵƳƳƼ onwards, this standard replaces IAS ƴƷ Segment Reporting. It requires ABbInBev’s external segment reporting to be based on its internal reporting to its “chief operating decision maker”, which makes decisions on the allocation of resources and assesses the performance of the reportable segments. The application of this new standard did not have an effect on how ABbInBev presents its segments.

For more details on the basis on which the segment information is prepared and reconciled to the amounts presented in the income statement and balance sheet, refer to Note ƸSegment reporting in the financial statements of this report.

IAS Ƶƶ Borrowing costs – amended In March ƵƳƳƺ, the IASB issued amendments to IAS Ƶƶ Borrowing Costs. The main change from the previous version is the removal of the option of immediately recognizing as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or sale. The cost of an asset will in future include all costs incurred in getting it ready for use or sale. The company prospectively adopted the amendment as of ƴJanuary ƵƳƳƼwith no material effect on its financial result or financial position.

IFRS Ƶ Share-based payment – amended In January ƵƳƳƻ, the IASB issued an amendment to IFRS Ƶ Share-based Payment. The amendment clarifies that vesting conditions are service conditions and performance conditions only. Other features of a share-based payment are not vesting conditions. It also specifies that all cancellations, whether by the entity or by other parties, should receive the same accounting treatment. The company adopted the amendment as of ƴJanuary ƵƳƳƼwith no material effect on its financial result or financial position.

IFRIC ƴƶ Customer loyalty programs In June ƵƳƳƺ, the IFRIC issued IFRIC ƴƶCustomer Loyalty Programs. IFRIC ƴƶaddresses how companies, that grant their customers loyalty award credits (often called “points”) when buying goods or services, should account for their obligation to provide free or discounted goods or services if and when the customers redeem the points. Customers are implicitly paying for the points they receive when they buy other goods or services. Some revenue should be allocated to the points. Therefore, IFRIC ƴƶrequires companies to estimate the value of the points to the customer and defer this amount of revenue as a liability until they have fulfilled their obligations to supply awards. ABbInBev adopted the interpretation as of ƴJanuary ƵƳƳƼwith no material effect on its financial result or financial position.

IFRIC ƴƹHedges of a Net Investment in a Foreign Operation In July ƵƳƳƻ, the IFRIC issued IFRIC ƴƹHedges of a Net Investment in a Foreign Operation. IFRIC ƴƹprovides guidance on:

•identifying the foreign currency risks that qualify as a hedged risk in the hedge of a net investment in a foreign operation;

•where, within a group, hedging instruments that are hedges of a net investment in a foreign operation can be held to qualify for hedge accounting; and

•how an entity should determine the amounts to be reclassified from equity to profit or loss for both the hedging instrument and the hedged item.