AB InBev Financial Results
Antitrust and competition laws and changes in such laws or in the interpretation and enforcement thereof, as well as being
subject to regulatory scrutiny, could affect AB InBev's business or the businesses of its subsidiaries. For example, in
connection with AB InBev's previous acquisitions, various regulatory authorities have imposed (and may impose in the
future) conditions with which AB InBev is required to comply. The terms and conditions of certain of such authorizations,
approvals and/or clearances required, among other things, the divestiture of the company's assets or businesses to third
parties, changes to the company's operations, or other restrictions on the company's ability to operate in certain
jurisdictions. Such actions could have a material adverse effect on AB InBev's business, results of operations, financial
condition and prospects. In addition, such conditions could diminish substantially the synergies and advantages which the
company expects to achieve from such future transactions.
AB InBev operates its business and markets its products in emerging markets that, as a result of political and economic
instability, a lack of well-developed legal systems and potentially corrupt business environments, present it with political,
economic and operational risks. Although AB InBev is committed to conducting business in a legal and ethical manner in
compliance with local and international statutory requirements and standards applicable to its business, there is a risk that
the employees or representatives of AB InBev's subsidiaries, affiliates, associates, joint ventures/operations or other
business interests may take actions that violate applicable laws and regulations that generally prohibit the making of
improper payments to foreign government officials for the purpose of obtaining or keeping business, including laws relating
to the 1997 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act.
New or expanded export control regulations, economic sanctions, embargoes or other forms of trade restrictions imposed
on Russia, Syria, Cuba, Iran or other countries in which AB InBev or its associates do business may curtail AB InBev's
existing business and may result in serious economic challenges in these geographies, which could have an adverse effect
on AB InBev and AB InBev's associates' operations, and may result in impairment charges on goodwill or other intangible
assets or investments in associates.
Although AB InBev's operations in Cuba through its subsidiary are quantitatively immaterial, the company's overall
business reputation may suffer, or it may face additional regulatory scrutiny as a result of Cuba being a target of U.S.
economic and trade sanctions or its subsidiary's involvement in legal proceedings regarding its operations in Cuba. If
investors decide to liquidate or otherwise divest their investments in companies that have operations of any magnitude in
Cuba, the market in and value of AB InBev's securities could be adversely impacted. In addition, Title III of U.S. legislation
known as the "Helms-Burton Act" authorizes private lawsuits for damages against anyone who traffics in property
confiscated without compensation by the Government of Cuba from persons who at the time were, or have since become,
nationals of the United States. As a result of the activation of Title III of the Helms-Burton Act, AB InBev may be subject to
potential U.S. litigation exposure beginning 2 May 2019, including claims accrued during the prior suspension of Title III of
the Helms-Burton Act. AB InBev has received notice of claims purporting to be made under the Helms-Burton Act. It
remains unclear how the activation of Title III of the Helms-Burton Act will impact AB InBev's U.S. litigation exposure with
respect to this notice of claim.
AB InBev relies on the reputation of its brands and its success depends on its ability to maintain and enhance the image
and reputation of its existing products and to develop a favorable image and reputation for new products. An event, or
series of events, that materially damages the reputation of one or more of AB InBev's brands could have an adverse effect
on the value of that brand and subsequent revenues from that brand or business. Further, any restrictions on the
permissible advertising style, media channels and messages used may constrain AB InBev's marketing activities and thus
reduce the value of its brands and related revenues.
AB InBev may not be able to protect its current and future brands and products and defend its intellectual property rights,
including trademarks, patents, domain names, trade secrets and know-how, which could have a material adverse effect
on its business, results of operations, cash flows or financial condition, and in particular, on AB InBev's ability to develop
its business.
If the business of AB InBev does not develop as expected, impairment charges on goodwill or other intangible assets may
be incurred in the future that could be significant and that could have an adverse effect on AB InBev's results of operations
and financial condition.
Climate change or other environmental concerns, or legal, regulatory or market measures to address climate change or
other environmental concerns, could have a long-term, material adverse impact on AB InBev's business and results of
operations. In addition, social attitudes, customer preferences and investor sentiment are increasingly influenced by
environmental, social and corporate governance ("ESG") considerations, and as a result AB InBev may face pressure from
its shareholders, regulators, suppliers, customers or consumers to further address ESG-related concerns, which may
require the company to incur increased costs and expose the company to regulatory inquiry or legal action. If AB InBev
fails to meet its 2025 Sustainability Goals or its ambition to achieve net zero emissions across its value chain by 2040 for
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