AB InBev Financial Results slide image

AB InBev Financial Results

As of 2010, senior employees are eligible for an annual long-term incentive to be paid out in Ambev LTI stock options (or, in the future, similar share-based instruments), depending on management's assessment of the employee's performance and future potential. No stock options were granted in 2022 and 2021. The total number of outstanding Ambev options developed as follows: Million options Options outstanding at 1 January Options issued during the year Options exercised during the year Options forfeited during the year Options outstanding at the end of December 2022 113.8 2021 127.3 (14.0) 99.8 (5.2) (8.3) 113.8 The range of exercise prices of the outstanding options is between 15.95 Brazilian real (3.06 US dollar) and 39.04 Brazilian real (7.48 US dollar) while the weighted average remaining contractual life is 4.3 years. Of the 99.7m outstanding options 63.9m options are vested at 31 December 2022. The weighted average exercise price of the Ambev options is as follows: Amounts in US dollar Options outstanding at 1 January Granted during the year Exercised during the year Forfeited during the year Outstanding at the end of December Exercisable at the end of December 2022 2021 3.57 3.81 2.36 4.33 4.53 3.72 3.57 3.86 3.79 The total number of outstanding Ambev RSUs developed as follows: Million RSUs 2022 2021 RSUS outstanding at 1 January 63.8 49.6 RSUS issued during the year 49.3 20.7 RSUS vested during the year (0.2) (5.0) RSUS forfeited during the year (3.1) (1.5) RSUs outstanding at the end of December 109.8 63.8 During 2022, a limited number of Ambev shareholders who are part of the senior management of AB InBev were given the opportunity to exchange Ambev shares against a total of 54 thousand AB InBev shares (2021: 3 thousand AB InBev shares) at a discount of 16.66% provided that they stay in service for another five years. The fair value of this transaction amounts to 1m US dollar (2021: less than 1m US dollar) and is expensed over the five years' service period. The fair values of the Ambev and AB InBev shares were determined based on the market price. BUDWEISER APAC SHARE-BASED COMPENSATION PROGRAM Discretionary Restricted Stock Units Plan In December 2019, Budweiser APAC set up a discretionary RSUs plan which allows for the offer of RSUs to certain employees in certain specific circumstances, at the discretion of the Board, e.g., as a special retention incentive. The RSUs vest after three to five years and in the event that an employee's service is terminated before the vesting date, special forfeiture rules apply. In 2022 and 2021, no RSUs were granted under this program. Share-Based Compensation Plan In March 2020, Budweiser APAC set up a program allowing for certain employees to invest some or all of their variable compensation in Budweiser APAC shares (Voluntary Shares). As an additional reward, employees who invest in Voluntary Shares also receive a company shares match of three matching shares for each Voluntary Share invested up to a limited total percentage of each employee's variable compensation. In 2022, Budweiser APAC issued 12.5m matching RSUs in relation to bonuses granted to Budweiser APAC employees with an estimated fair value of 39m US dollar (2021: 0.1m matching restricted stock units with an estimated fair value of less than 1m US dollar). 74
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