Result of a merger between the American brewing company Anheuser Busch and the Belgian InBev

2. Result of a merger between the American brewing company Anheuser Busch and the Belgian InBev

3. Worlds largest brewing company, as well as one of the top 5 companies producing consumer products • The companies 36 billion dollar revenue comes from its three worldwide flagship brands • As well as over 200 local and regional beer brands

4. Income Statement

5. Observations • Massive drop in net income in 2008 • Surprisingly not due to reduced revenue from the financial crisis, but rather from unusual expenses incurred due to restructuring after the merger • Massive growth from 2008 to 2009 • Revenue up 55% ($23 billion – $36 billion) • Fairly stable figures between 2009 and 2010 • Continued growth in revenue, while COGS dropped slightly • The only negative is the slight loss in Minority Interest

6. Balance Sheet

7. Observations • The balance sheet is a bit more worrying • Of $114 billion in assets, $75 billion are Goodwill and other Intangible assets • Tangible assets are less than the company’s debts • Current Assets less than Current Liabilities • Debt to Equity has been very high in recent years • Peaked in 2008 at 4.06 • AB InBev has been successful in managing this debt • Down to 2.24 in 2010

8. CEO’s Comments • Closed 2010 with 4.4% growth in revenue • This is not entirely accurate, he is actually talking about profits here • Grew or maintained market share across the board • Lost 1 point in the share of US market, due to underrepresentation in the high-end beer market, the fastest growing segment • The plan to reduce the price gap between sub-premium and premium beers, in order to initiate trading up seems like a promising way to make up this loss in the future

9. For Investors • AB InBev’s has shown growth in the past several years, and an ability to maintain success in times of financial uncertainty • There are also risks • Recent growth has been financed by significant amounts of debt • Although the company has been successful in managing this debt so far, there is no guarantee that it will not become problematic • It is generally the policy of the company to issue dividends, but this did not happen in 2010

10. The Verdict • Investors for whom dividends are very important should be aware that this may not necessarily happen, but for the mid-high risk investor, AB InBev shows great prospects, and a good chance of high return on investment

11. The Coca-Cola Company Ashot Manukyan

12. Introduction • World’s largest non-alcoholic beverage company • Sold from 1886 • 500 beverage brands (examples) • 200 countries • 1.7 billion servings

13. Income Statement • Constant growth in Revenue (06,07,08) • Decrease in revenue in 2009 • Increase in revenue in 2010 • Balanced Net Income till 2010 • Increase in Profit margin

14. Balance Sheet • Increase in Total liabilities • Increase in Total Assets • Increase in liability => Increase in debt to asset ratio

15. Investments $2 Billion in China and India • Sprite, Maaza • 25000 Workers • $1billion before • 54% of Chinese market • More Consumers • $1.6billion before

16. For the Investors • After major investments… • Quarterly paid dividends ($0.47) • Fast growing company • Expecting higher revenues • Expanding in India, China, Russia

17. PepsiCo International Hayk Bunatyan

18. Introduction • Second largest beverage and food business • Founded in 1965 • Sold in over 200 countries • Several hundred brands

19. Income Statement • Increase in revenues from $43,323 to $57,838 millions. 25.2% growth. • Increase in net income from $5,946 to $6,320

20. Balance sheet • Increase in total assets from $39,848 to $68,153. • Increase in total liabilities from $22,406 to $46,677 millions. • Debt to assets ratio increases because of big number of debts.

21. The company is growing • PepsiCo bought all Wimm-Bill-Dann shares. • Biggest beverage and food business in Russia. • Largest market outside of the Unites States is in Russia.