AB InBev Financial Results
any reason, its overall reputation may suffer. Further, water scarcity or poor water quality may affect AB InBev by increasing
production costs and capacity constraints, which could adversely affect AB InBev's business and results of operations.
Public expectations for reductions in greenhouse gas emissions, the potential adoption of legal and regulatory
requirements designed to address climate change and to increase disclosures related to ESG matters, including climate
change and mitigation efforts, and disparate and evolving standards for identifying, measuring and reporting ESG metrics
may require the company to incur increased costs, make additional investments and implement new practices and
reporting processes, and may heighten the company's compliance burden and risks. Additionally, AB InBev's inability to
meet its compliance obligations under EU emissions trading regulations may also have an adverse impact on AB InBev's
business and results of operations.
AB InBev's operations are subject to environmental regulations, which could expose it to significant compliance costs and
litigation relating to environmental issues.
Further, AB InBev may be exposed to labor strikes, disputes and work stoppages or slowdowns, within its operations or
those of its suppliers, or an interruption or shortage of raw materials for any other reason that could lead to a negative
impact on AB InBev's costs, earnings, financial condition, production level and ability to operate its business. AB InBev's
production may also be affected by work stoppages or slowdowns that affect its suppliers, distributors and retail
delivery/logistics providers as a result of disputes under existing collective labor agreements with labor unions, in
connection with negotiations of new collective labor agreements or as a result of financial distress for its suppliers. A work
stoppage or slowdown at AB InBev's facilities could interrupt the transport of raw materials and commodities from its
suppliers or the transport of its products to its customers. Such disruptions could put a strain on AB InBev's relationships
with suppliers and customers and may have lasting effects on its business even after the disputes with its labor force have
been resolved, including as a result of negative publicity.
AB InBev relies on information and operational technology systems, networks and services to support its business
processes and activities, including procurement and supply chain, manufacturing, sales, human resource management,
distribution and marketing, and relies on information systems, including through services operated or maintained by third
parties, to collect, process, transmit, and store electronic information, including, but not limited to, sensitive, confidential or
personal information of customers and consumers. The integration of e-commerce, fintech and direct sales in AB InBev's
operations and their increasingly significant contribution to the company's revenues and sales has increased the amount
of information that AB InBev processes and maintains, thereby increasing its potential exposure to a security incident.
Information systems of AB InBev's third-party partners, including suppliers and distributors, are also exposed to
cybersecurity incidents which may compromise the confidentiality, integrity and availability of their information systems
and result in unauthorized access to AB InBev's or its customer's sensitive data. Although AB InBev takes various actions
to minimize the likelihood and impact of such cybersecurity incidents and disruptions to information systems, such incidents
could impact AB InBev's business, impact its ability to meet its contractual obligations and expose it to legal claims or
regulatory penalties. For example, if outside parties gained access to AB InBev's confidential data or strategic information
and appropriated such information or made such information public, this could harm AB InBev's reputation or its competitive
advantage, or could expose AB InBev or its customers to a risk of loss or misuse of information. More generally, technology
disruptions can have a material adverse effect on AB InBev's business, results of operations, cash flows or financial
condition.
AB InBev's business and operating results could be negatively impacted by natural, social, technical, physical or other
disasters, including public health crises and global pandemics. AB InBev's business and results of operations were
negatively impacted by the implementation of COVID-19 restrictions in recent years. While most countries around the world
have removed or reduced the restrictions implemented in response to the COVID-19 pandemic, the extent to which the
COVID-19 pandemic may continue to impact the company's financial condition and operations depends on factors beyond
AB InBev's control. The emergence of new variants may result in new restrictions in regions and countries where AB InBev
operates, lead to further economic uncertainty and heighten many of the other risks described herein.
AB InBev may not be able to recruit or retain key personnel and successfully manage them, which could disrupt AB InBev's
business and have an unfavorable material effect on AB InBev's financial position, its income from operations and its
competitive position.
Although AB InBev maintains insurance policies to cover various risks, it also uses self-insurance for most of its insurable
risks. Should an uninsured loss or a loss in excess of insured limits occur, this could adversely impact AB InBev's business,
results of operations and financial condition.
AB InBev's ordinary shares currently trade on Euronext Brussels in euros, the Johannesburg Stock Exchange in South
African rand, the Mexican Stock Exchange in Mexican pesos and its ordinary shares represented by American Depositary
Shares (the "ADSS") trade on the New York Stock Exchange in U.S. dollars. Fluctuations in the exchange rates between
the euro, the South African rand, the Mexican peso and the U.S. dollar may result in temporary differences between the
20View entire presentation