Strategic Energy and Environmental Initiatives

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Strategic Energy and Environmental Initiatives Anheuser-Busch Companies, Inc. October 3, 2007 Blue Skyways Collaborative John Stier

Anheuser-Busch Companies

To brew, package and ship the freshest, highest quality beer in the world in the most responsible and efficient manner possible Mission

A Long History of Environmental Stewardship Improving efficiency, minimizing waste and supporting conservation efforts for more than 100 years - Spent grain recycled into cattle feed since 1890s - A-B Recycling Corporation formed in 1978 and now recycles more aluminum cans than we produce - World s largest operator of Bio-Energy Recovery Systems that convert nutrients from the brewing process into renewable fuel Started developing technology in 1985 - Leaders in animal rescue and rehabilitation More than 14 000 animals rescued More than 14,000 animals rescued since 1970

Leaders in Waste Reduction and Recycling Reduce packaging materials through light-weighting initiatives Recycle more than 99% of waste generated Recycle more than 5 billion pounds of materials a year Inducted into EPA s WasteWise Hall of Fame in 2005 for voluntary efforts to reduce waste, recycle and purchase recycled products

Using Water Efficiently US brewery water use has been cut by more than 20 percent since 1990 and by 5 percent in the last five years. Water usage per production unit 2002 2003 2004 2005 2006

Using Energy Efficiently US brewery energy use has been cut in half since the early 1970s and by 10 percent over the last five years. Fuel usage per production unit 2002 2003 2004 2005 2006

Greenhouse Gas Programs - U.S. EPA Climate Leaders Voluntary Program Engagement - California Climate Action Registry - U.S. EPA Landfill Methane Outreach Transportation Programs - U.S. EPA SmartWay Transport - National Biodiesel Board External Communications - Climate Disclosure Project - EHS Reporting

2010 Energy and Climate Change Goals 1% annual reduction in total energy use 5% reduction in greenhouse gases (2005 base) 15% of total fuel needs provided through renewable energy

Bio-Energy Recovery Systems provide a renewable energy source for the company Increasing Renewable Energy Use Evaluating other sources of renewable energy - Fuel crops - Biodiesel - Wood - Landfill Gas - Wind - Solar

Company-Owned Farms Re-use of water from the brewing process to grow crops Evaluating potential fuel crops for biodiesel and cellulosic conversion NutriTurf Renewable Fuel Test Crops Higher revenue than current feed crops E-grass (solid fuel) Canola, Camelina (biodiesel) JAX E-Grass FCL Canola

Fort Collins, Colorado - Full Circle Story - 70% of leftover brewery water sent to the farm Biodiesel - Trials for canola and camelina for bio-fuel processing - Crops/seed processed for oils and biodiesel blends - Biodiesel being used in farm equipment and brewery on-site trucks

Transportation Strategies Benchmarking with leading transportation companies and organizations Pilot strategies at A-B wholesalers l to expand use as we gain experience and identify viable sources of fuel - New York CNG conversion and heavy duty hybrid - Beach Cities, San Diego, Louisville, New York and Denver biodiesel

Supporting Communities Where We Operate Address key community environmental issues Involve employees and wholesalers Reach consumers through brand partnerships Manage our own land to benefit wildlife

Summary Anheuser-Busch has a long and rich history of environmental protection and wildlife preservation We continue to evaluate strategies to reduce our environmental impacts Our plan includes developing strategic partnerships within our communities and with leading organizations Learn more about our efforts at: www.abenvironment.com