AB InBev Financial Results
The sensitivity analysis has been prepared based on the exposure to interest rates for the floating rate debt after hedging,
assuming the amount of liability outstanding at reporting date was outstanding for the whole year. The company estimates
that an increase or decrease of 100 basis points represents a reasonably possible change in applicable interest rates.
Accordingly, if interest rates had been higher/lower by 100 basis points, with all other variables held constant, the interest
expense would have been 46m US dollar higher/lower (31 December 20211: 20m US dollar). This impact would have been
more than offset by 93m US dollar higher/lower interest income on interest-bearing financial assets (31 December 20211:
81m US dollar). Additionally, the pre-tax impact on equity reserves from the market value of hedging instruments would
not have been significant.
Interest expense
Interest expense recognized on unhedged and hedged financial liabilities are as follows:
Million US dollar
Financial liabilities measured at amortized cost - not hedged
Fair value hedges
Cash flow hedges
Net investment hedges - hedging instruments (interest component)
Economic hedges
2022
2021
(3 641)
(3 836)
(20)
(6)
24
17
(1)
42
141
(3 597)
(3 684)
E) COMMODITY PRICE RISK
The commodity markets have experienced and are expected to continue to experience price fluctuations. AB InBev
therefore uses both fixed price purchasing contracts and commodity derivatives to manage the exposure to the price
volatility. The most significant commodity exposures as at 31 December 2022 and 31 December 2021 are included in the
table below (expressed in outstanding notional amounts):
Million US dollar
Aluminum
Energy
Corn
Wheat
Plastic
Rice
Sugar
31 December 2022 31 December 2021
2 165
1 241
417
350
321
292
127
129
122
93
100
85
95
85
3 348
2 274
Commodity price sensitivity analysis
The impact of changes in the commodity prices would not have had a material impact on AB InBev's profit in 2022 as most
of the company's exposure is hedged using derivative contracts and designated in hedge accounting in accordance with
IFRS 9 rules.
The tables below show the estimated impact that changes in the price of the commodities, for which AB InBev held material
derivative exposures as at 31 December 2022 and 31 December 2021, would have on the equity reserves.
2022
Pre-tax impact on equity
Prices
increase
2021
Pre-tax impact on equity
Prices
Million US dollar
Aluminum
Energy
Corn
Wheat
Plastic
Rice
Sugar
Volatility of
prices in %2
Prices
decrease
Volatility of
prices in %²
increase
Prices
decrease
30.71%
665
(665)
23.09%
287
(287)
49.37%
206
(206)
25.88%
91
(91)
22.44%
72
(72)
23.26%
68
(68)
51.59%
66
(66)
29.24%
38
(38)
32.31%
25
(25)
28.68%
27
(27)
19.31%
19
(19)
15.96%
14
(14)
22.17%
21
(21)
26.39%
22
(22)
1 Amended to conform to 2022 presentation.
2 Sensitivity analysis is assessed based on the yearly volatility using daily observable market data during 250 days at 31 December 2022 and 31 December
2021.
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