AB InBev Financial Results slide image

AB InBev Financial Results

TRANSLATION RESERVES The translation reserves comprise all foreign currency exchange differences arising from the translation of the financial statements of foreign operations. The translation reserves also comprise the portion of the gain or loss on the foreign currency liabilities and on the derivative financial instruments determined to be effective net investment. HEDGING RESERVES The hedging reserves comprise the effective portion of the cumulative net change in the fair value of cash flow hedges to the extent that the hedged risk has not yet impacted profit or loss. TRANSFERS FROM SUBSIDIARIES Dividends payable to AB InBev by its operating subsidiaries are subject to, among other restrictions, general limitations imposed by the corporate laws, capital transfer restrictions and exchange control restrictions of the respective jurisdictions where those subsidiaries are organized and operate. Capital transfer restrictions are also common in certain emerging market countries and may affect AB InBev's flexibility in implementing a capital structure it believes to be efficient. As at 31 December 2022, the restrictions above mentioned were not deemed significant on the company's ability to access or use the assets or settle the liabilities of its operating subsidiaries. Dividends paid to AB InBev by certain of its subsidiaries are also subject to withholding taxes. Withholding taxes, if applicable, generally do not exceed 15%. OTHER COMPREHENSIVE INCOME RESERVES The changes in the other comprehensive income reserves are as follows: Million US dollar As per 1 January 2022 Other comprehensive income/(loss) Exchange differences on translation of foreign operations (gains/(losses)) Cash flow hedges Re-measurements of post-employment benefits Other comprehensive income/(loss) As per 31 December 2022 Translation Reserves Hedging reserves Post- employment benefits Total OCI Reserves (33 554) 481 (1 504) (34 577) (1123) (1123) (336) 483 (336) 483 (1 123) (34 677) (336) 483 145 (1 021) (976) (35 553) The increase in translation reserves is primarily related to the combined effect of the weakening of the closing rates of the Argentinean peso, the Chinese yuan, the Colombian peso and the South Africa rand, partially offset by the weakening of the closing rate of the Euro, which resulted in a net foreign exchange translation adjustment of 1 123m US dollar as of 31 December 2022 (decrease of equity). Post- Million US dollar Translation Reserves Hedging reserves employment benefits Total OCI Reserves As per 1 January 2021 (29 234) 376 (1983) (30 841) Other comprehensive income/(loss) Exchange differences on translation of foreign operations (gains/(losses)) (4 320) (4 320) Cash flow hedges 105 105 Re-measurements of post-employment benefits 479 479 Other comprehensive income/(loss) (4 320) 105 479 (3 736) As per 31 December 2021 (33 554) 481 (1 504) (34 577) 64
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