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 companys compliance burden and risks. Additionally, AB InBevs inability to meet its compliance obligations under EU emissions trading regulations may
also have an adverse impact on AB InBevs business and results of operations.
AB InBevs 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 InBevs costs,
earnings, financial condition, production level and ability to operate its business. AB InBevs 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
InBevs 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 InBevs 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 InBevs operations and their increasingly
significant contribution to the companys 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 InBevs
third-party partners, including suppliers and distributors, and those of others on which they rely, 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 InBevs or its customers sensitive data. Compliance with, and changes to, laws and regulations concerning privacy, cybersecurity, and data protection, could result in significant expense, and AB InBev
may be required to make additional investments in security technologies. 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 InBevs 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 InBevs confidential data or strategic
information and appropriated such information or made such information public, this could harm AB InBevs 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 InBevs business, results of operations, cash flows or financial condition.
AB InBevs business and operating results could be negatively impacted by natural, social, technical, physical or other disasters, including public
health crises and global pandemics. AB InBevs 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 the restrictions
implemented in response to the COVID-19 pandemic, the extent to which the COVID-19 pandemic may continue to impact the companys financial condition and operations depends on factors beyond AB InBevs 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 InBevs business and have an
unfavorable material effect on AB InBevs 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 InBevs business, results of
operations and financial condition.
AB InBevs 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 value of AB InBevs ordinary shares trading in different currencies, and between its ordinary shares and its ADSs, which may
result in heavy trading by investors seeking to exploit such differences.
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