AB InBev Financial Results
The WACC applied in US dollar nominal terms were as follows:
Cash-generating unit
Colombia
Rest of Middle Americas
South Africa
Rest of Africa
Rest of Asia Pacific
31 December 2022
31 December 2021
8%
6%
9%
10%
9%
8%
15%
10%
7%
6%
Sensitivity to change in key assumptions
During its valuation, the company ran sensitivity analysis for key assumptions including the weighted average cost of capital
and the terminal growth rate, in particular for the valuations of Colombia, South Africa and Rest of Africa cash-generating
units that show the highest invested capital to EBITDA multiple.
In the sensitivity analysis performed by management during the annual impairment testing in 2022, an adverse change of
1% in WACC or terminal growth rate would not cause a cash-generating unit's carrying amount to exceed its recoverable
amount. While a change in the estimates used could have a material impact on the calculation of the fair values and trigger
an impairment charge, the company, based on the sensitivity analysis performed is not aware of any reasonably possible
change in a key assumption used that would cause a cash generating unit's carrying amount to exceed its recoverable
amount.
Although AB InBev believes that its judgments, assumptions and estimates are appropriate, actual results may differ from
these estimates under different assumptions or market or macro-economic conditions.
15. Intangible assets
Million US dollar
31 December 2022
Brands
Commercial
intangibles
Software
Other
Total
Acquisition cost
Balance at end of previous year
Effect of movements in foreign exchange
Acquisitions and expenditures
38 409
2 832
3 437
337
45 015
(568)
(22)
(114)
(47)
11
221
497
249
Disposals through sale and derecognition
Disposals through the sale of subsidiaries
(93)
(1058)
(272)
(15)
(751)
978
(1437)
(19)
53
502
(171)
37 741
2 026
4 050
354
365
44 170
Transfer (to)/from other asset categories
and other movements
Balance at end of period
Amortization and impairment losses
Balance at end of previous year
Effect of movements in foreign exchange
Amortization
Impairment
Disposals through sale and derecognition
Disposals through the sale of subsidiaries
Transfer to/(from) other asset categories
and other movements
Balance at end of period
Carrying value
at 31 December 2021
at 31 December 2022
31 December
2021
Total
45 885
(1289)
760
(98)
(3)
(240)
45 015
(89)
(2082)
(2 381)
(33)
1
18
77
4
(4585)
100
(4 358)
192
(141)
(479)
(27)
(647)
(644)
(3)
(1)
(4)
(176)
1 058
271
10
1 339
73
3
(88)
(100)
(1 247)
(62)
(2)
(2 577)
(49)
(164)
(3 961)
326
(4585)
38 320
37 652
750
779
1 056
1 473
304
305
40 430
40 430
40 209
In 2022, the company recognized (4)m US dollar impairment on intangibles compared to (176)m US dollar in 2021 when
the company recognized an impairment following the cessation of the activities of Bedford Systems, a 70%-owned
subsidiary of the company and joint venture with Keurig Dr. Pepper. Please refer to Note 8 Non-underlying items.
AB InBev is the owner of some of the world's most valuable brands in the beer industry. As a result, brands and certain
distribution rights are expected to generate positive cash flows for as long as the company owns the brands and distribution
1 The transfer (to)/from other asset categories and other movements mainly relates to transfers from assets under construction to their respective asset
categories, to the separate presentation in the statement of financial position of intangible assets held for sale in accordance with IFRS 5 Non-current assets
held for sale and discontinued operations and to the restatement of non-monetary assets under hyperinflation accounting in line with IAS 29 Financial reporting
in hyperinflationary economies.
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