AB InBev Financial Results slide image

AB InBev Financial Results

In 2022, the company reported a (1 143)m US dollar non-underlying share of results of associates related to its investment in AB InBev Efes (for more details refer to Note 4 Use of estimates and judgments and Note 8 Non-underlying items). As of 31 December 2022, the investment has been classified as non-current asset held for sale. In 2022, associates that are not individually material contributed 106m US dollar to the results of investment in associates (31 December 2021: 90m US dollar). Following the entry of Turkey in a hyperinflation economy in 2022, the company accounted for the share of result of its Turkish associate Anadolu Efes at the December closing rate (18.718236 Turkish lira per US dollar) instead of the average rate. Additional information related to the significant associates is presented in Note 33 AB InBev Companies. 17. Deferred tax assets and liabilities The amount of deferred tax assets and liabilities by type of temporary difference can be detailed as follows: Million US dollar 2022 Assets Liabilities 2021 Net Assets Liabilities Net Property, plant and equipment Intangible assets 191 (2 071) (1 880) 91 (2 113) (2 023) 89 (9 582) (9 492) 60 (9 796) (9 736) Inventories 102 (90) 12 88 (66) 22 Trade and other receivables 51 51 48 48 Interest-bearing loans and borrowings 852 (657) 195 905 (628) 277 Employee benefits 433 (9) 423 577 (8) 569 Provisions 533 (56) 477 511 (19) 492 Derivatives 51 (61) (10) 11 (118) (107) Other items 532 (1166) (634) 407 (1198) (792) Loss carry forwards 1 341 1 341 1 015 1 015 Gross deferred tax assets/(liabilities) 4 175 (13 693) (9 518) 3 713 (13 947) (10 235) Netting by taxable entity (1 874) 1 874 (1 743) 1 743 Net deferred tax assets/(liabilities) 2 300 (11 817) (9518) 1 969 (12 204) (10 235) The change in net deferred taxes recorded in the consolidated statement of financial position can be detailed as follows: Million US dollar Balance at 1 January Recognized in profit or loss Recognized in other comprehensive income Other movements and effect of changes in foreign exchange rates Balance at 31 December 2022 2021 (10 235) (10 607) 701 348 (177) 193 (9 518) (166) 190 (10 235) Most of the temporary differences are related to the fair value adjustment on intangible assets with indefinite useful lives and property, plant and equipment acquired through business combinations. The realization of the temporary differences on intangible assets acquired through business combinations is unlikely to revert within 12 months as they would be realized upon impairment or disposal of these intangibles which is currently not expected. The net deferred tax liabilities attributable to the US business and mainly related to purchase price accounting amount to 6.4 billion US dollar as of 31 December 2022. As of 31 December 2022, deferred taxes of 11.0 billion US dollar (31 December 2021: 6.9 billion US dollar) were not recognized on a series of tax attributes. The tax attributes for which no deferred tax asset was recognized amount to 44.5 billion US dollar compared to 27.9 billion US dollar as of 31 December 2021 and include tax losses carry forward either confirmed or resulting from tax positions under dispute, capital losses, foreign and withholding tax credits, excess dividend received deduction, excess interest carry forward, amongst others. 42.7 billion US dollar of these tax attributes do not have an expiration date, 0.1 billion US dollar, 0.2 billion US dollar and 0.2 billion US dollar expire within respectively 1, 2 and 3 years, while 1.4 billion US dollar have an expiration date of more than 3 years. Deferred tax assets have not been recognized on these items because these are either contingent assets or it is not probable that future taxable profits will be available against which these tax losses and deductible temporary differences can be utilized and the company has no tax planning strategy currently in place to utilize these tax losses and deductible temporary differences. 59
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