AMBEV Apresentacao 201210091 En

7/30/2019 AMBEV Apresentacao 201210091 En

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2012

Joo Castro NevesChief Executive Officer


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Statements contained in this presentation may contain information that is foreflects management's current view and estimates of future economic circumconditions, company performance, and financial results. Any statements, expectaplans and assumptions contained in this presentations that do not describe histostatements regarding the declarations or payment of dividends, the directions ofthe implementation of principal operating and financing strategies and capital the factors or trends affecting financial condition, liquidity or results of operalooking statements and involve a number of risks and uncertainties. There is these results will actually occur. The statements are based on many assumpincluding general economic and market conditions, industry conditions, and oper

changes in such assumptions or factors could cause actual results to differ mateexpectations.


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3

LAST 15 YEARSIN REVIEW

BUILDINGBLOCKS FOTHE FUTUR


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TalentedPeople

Strong Culture

FinancialDiscipline(eg, ZBB)

ConsolidatingBrahma as #1

Brahma &Antarctica

mergersynergies

StrongerPortfolio &

Revenuemgmt

TradePrograms

IntegratingQuinsa &

Labatt

PreparingHILA for the

future

LeveragingScale (eg,

Directdistribution)

Creation of AmBevInternationalexpansion

Organic GrowthFocus

QuinsaTransaction

Labatt

Acquisition

HILA-exStart-ups

Ex

Our organic and non organic growth history has enabled us to bubusiness, with several learnings over time that have made us wh


5/58Source: Company data. Information until 2006 BRGAAP, 2007-2011 IFRS

while delivering solid EBITDA growth and industry benchmark

EBITDA margin along the way...

8,7949,174

2007

10,3

2008 200

Consolidating Brahmaas #1

Creation ofAmBev

Internationalexpansion

Organic GrowthFocus

Bui

1997

662 667 9031,505 1,990

2,710 3,0724,537

6,3057,445

1998 1999 2000 2001 2002 2003 2004 2005 2006

21.1%

23.8%27.8% 28.7%

305%

37.0%35.4%

37.8% 39.5%42.3% 44.9%

44.3% 44

Grow

org


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-50%

450%

950%

1450%

1950%

2450%

2950%

1997 1998 1998 1999 1999 2000 2000 2001 2002 2002 2003 2003 2004 2005 2005 2006 2006 2007 2007 2008 2009 2009 2010 20

which has also led to a substantial increase in our share pricemarket capitalization, creating significant value for our sharehold

$ 5.3 biMarket cap

Source: Economatica, Bloomberg. US$.

Consolidating Brahmaas #1

Creation ofAmBev

Internationalexpansion

Organic GrowthFocus

Bu


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In a nutshell...

We have had a good run over the last15 years thanks mainly to

Talentedpeople, strongculture & mgmt

capabilities

Financialdiscipline &

focus onproductivity

M&A Strategy

... and, as a result, we hdelivered

Shval

Indusp

We are never fully satisfied

with our results...

CEBI

Organic growth,innovation &

brands


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LAST 15 YEARSIN REVIEW

BUILDINGBLOCKS FOTHE FUTUR


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Our current footprint give us an attractive combinof profitability and growth

Lead growth ofregion withprofitability

M

#

o

Opportunity forprofitable growth and

M&A


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Our Latin America South operations are a greaexample of non-organic and organic growth

Source: Company data.

LAS EBITDA (USD) & Margin

Organic growthJointcontrol Fullcontrol

212288

384475

552

803 871

998

1,240

45.9%45.9% 45.7%

32.6%

37.8%

40.4% 40.2%40.3%

43.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011


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11

and we will keep pursuing our strategy of

driving industry growth

Sh

T

Pr

Inn

Full Brand Portfolio

0

10

20

30

40

50

60

70

80

90

100

Per Capita (Liters)

27

44

BEER

WINE

SOURCE: Beer (Ex Factory Volume). Wine:Bodegas Argentinas.

Argentinaexample


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#

o


M&A

M

O C di t h d t t k L b t


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Our Canadian team has managed to take Labat

operation to a new level


Labatt EBITDA (CAD) & Margin

725

779

846872 869 881 860

41.5%

36.0%

38.5%40.1% 39.6% 38.6%

41.1%

2005 2006 2007 2008 2009 2010 2011

622

2004

29.8%


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and we are placing some big bets for the

coming years

Full brand portfolio acrossdemand landscape


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M&A


#

o

M

CND i t ti i t k t d li id


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CND integration is on track to deliver our guidanUSD 190 million EBITDA for the first 12 months wmargin expansion

~UEBI

Central ACaribbea

ProcurementSavings

Business

Integration

RevenueManagement

LeveragingAmbevsscale & procurementtools

Sales team

Direct distribution centersZBB implementation

InnovationPremiumization

Integration opportunities

b fiti f M&A i t ti t k d


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benefiting from M&A integration track record a

top line growth initiatives in our other markets

Pack price stra

Innovation

Premium

Events platfo


EBITDA (USD MM) EBITDA MARGIN

212288

384475

552

803871

998

1,240

45.9%

45.9%45.7%

32.6%

37.8% 40.4%40.2%40.3%

43.5%

2003 2004 2005 2006 2007 2008 2009 2010 2011


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#

o


M&A


M


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Lowest

incomeaverage

Changinmobility

Lower pconsum

Below a

market

N & NE till f f h i t th i f ll t ti


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N & NE still far from having met their full potentia

N&NE volumes growing ahead of industry, withrelevant market share opportunity

Source: Nielsen

-7.7%

-5.7%

-

2009 2010

10.7%

0.1%

3.4%

20.3%

4.1%

10.6%

2010 2011 1H12

BR Volume N & NE Volume

Source: Company data

Beer Volume Growth (% YoY) N & NE MS gap

B il di d l t t iti


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Brazils medium and long-term opportunitiesare still out there for the taking...

Commercial Strategies

Premium


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Win with domestic international porPremium

Premium volumes represent only about


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Premium volumes represent only about5% of industry volumes...

Opportunities to increase penetration driven

mainly by international brandsWeight within Premium

volumes (%)

Source: NielsenSource: Ipsos

Premium brands penetration(% of beer consumers)

99% 98% 91%

87%76

2010

13%

2009

9%

2008

2%

2007

1%2

Stella & Bud growing together to consolidate


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Stella & Bud growing together to consolidateour leadership in premium brands

1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12

Source: Company data, Nielsen

Stella Vol.

3Q11 4Q11 1Q12

BUD MS(Premium

Brands)

Volume +67%(1H12)

Top 3 selling premiubrand in less than months after launc

Brazils medium and long term opportunities


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Brazils medium and long-term opportunitiesare still out there for the taking...


B il


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Returnablerepresent mof our volum

Brazils on-paccounts foof beer volu

Higher aver

profitability

More friendthe environm

A twofold opportunity: boosting the on trade experie


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Mobile event Sel focus)

Increase out-consumption

Improve consumptionexperienceRight brands at the rightprice point

Microevents

Franc

A twofold opportunity: boosting the on-trade experie

and reintroducing returnables into the off-


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and reintroducing returnables into the offthrough Pit Stops and the RGB 300 ml

More than 850 PitStops in 2012

Rolling out the RGB 300 ml will be key


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Rolling out the RGB 300 ml will be key

4% 4%

20%22%

25%30%

46%

54%

Jan Feb Mar Apr May Jun Jul Aug

Coverage during 2012 increasing fast, while investmentsproduction will support volume increase going forward

Source: Company dataSGJ

300mlCoverage(Off trade Key

accounts)

Production Footpri

2011

2012

Brazils medium and long-term opportunities


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Brazil s medium and long-term opportunitiesare still out there for the taking...



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Relevmarket s

s

Tapping into new c& occas

Pack p

Innovation is here to stay and we want to


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Innovation is here to stay and we want togo beyond liquid & packaging...

Interactive guide to the besgo out with better prices, wmedia interface

Webstore that provides structureand materials for points of sale at agreat price by leveraging our scale

Connecting withCustomers Connecting with Cons

Brazils medium and long-term opportunities


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Brazil s medium and long term opportunitiesare still out there for the taking...


A i t l


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Approximatelyhectoliters in

~R$1.5 billion in 201

Industry benprofitab

CS

EBITDA

Our strategy has been consistent and is


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Our strategy has been consistent and isbeginning to work

Innov

All these opportunities become targets that are


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pp gcascaded throughout the organization


and we also continue to invest in the future


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Building blocks

World Cup

Legacy

People


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eop ePipeline

People pipeline is stronger than ever...


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p p p g

45 people

Average age of36

Average tenure of10

Succession plan for Top 140+ positionsAt least two or more successors ready within next two years

People Bets -- Clas

~200

~500

~6,000

~23,000

Partnership



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Building blocks

World CupLegacy

Management


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Management

Capabilities

... Financial discipline remains in our DNA: after over


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ZBB, we continue to find ways to reinvent ourselves

Since 2009 we have used e-auctions to purchase inmore than 20 categories of supplies, generating

savings of approximately 10%

1801,883

10,582

2009 2010 2011

Number of e-auctions


~80% of capex of new malting facility in PassoFundo was bought through e-auction

and we will continue to focus on productivity


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execution excellence to overcome increasing co

New segmentation &

service level

Customer Service &Sales Support

Revised structure &processes



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Building blocks

World CupLegacy


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Skol continues to lead the way in terms of innovit t ith i di it l


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it connects with consumers: going digital

Source: Campany Data

Digital audience (# of fans) Relevant convers

2,556

2,408.209

7,435 884

2010 2011 YTD 2012

181,431 186,013143,570 162,371

2010 2011

Total SK Registers SK Ac

Generatingcontent

Guaran Antarctica is in great shape...


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Lovemark

g p

7.4

7.7

8.0

8.5

2008 2009 2010 2011

Consistent market sharegrowth (CSD market share)

1.20 1.24

1.671.92

2008 2009 2010 2011

Billion Dollar Brand

(Gross revenue)

GRB 290 Can 350 P500237 P600

GRB 1L 3.3L2L 2.25L1.5L1L 2.5L

Source: Nielsen


Affordability Consinvestme



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Building blocks

World CupLegacy

Beer Category


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50

ECONOMICCONTRIBUTION

HEALTH & WELLNESSCULTURE & BEHAVIOR RESPONSIBLE

CONSUMPTION

Beer Category

ENVIRONMENT

We have begun our journey towardsstrengthening beer culture in Brazil


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strengthening beer culture in Brazil...

7,000 m2 of Bohemia experience

Launched in May 2012

Beer history and brand foundation

Interactive production process withreal factory visit

Entertainment merging learning andfun

Variants production and exclusiveinnovations

360o campaign, mainly on digital

... as well as focusing on improving ourrelationship with key stakeholders


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relationship with key stakeholders

Petrleo ebiocombustveis

Setor automotivo

Metalurgia eSiderurgiaQumicos

Bens de capital

Minerais metlicos

Produtos de metal

Txteis e Vesturio

Borracha e Plstico

Celulose e Papel

Materiais eltricosInformtica

Farmacuticos

Couros

Mveis

Grfica

Fumo

Carvo mineral

1,5

1,7

1,9

2,1

2,3

2,5

2,7

0 20 40 60 80

Multiplier

Size of the industry R$ Bilho

Cold beveragerepresents 3%

GDP

Biggest GDP m

the economy

Relevance of the industries for the economy

Source: PWC, IBGE, BNDES, FGV

Generates ove(direct and ind

Food & Beverages

... as well as focusing on improving ourrelationship with key stakeholders


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relationship with key stakeholders

Recycling

CO2emissions

Water consumption

Waste recyclingindex = 99%

CO2 emission = 10%reduction

Water used in production= 3.5 L

Responsible

consumption prog

EnvironmentPublic Targets



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Building blocks

World CupLegacy

meanwhile, Brahma is investing behind soccer to connect wfans before, during and after the World Cup...


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, g p

RelevanceFans x Total - Population

Have a team90%

Fans x Total - Population

Follow theirteamsperformance

145

97% t

Genuine Cause (Brahma Fund) Digital

Part of the profit coming from sales of

Brahma is reverted for the teams asstructural investments

Brahma teams fan pages generating

content for each team individually

Trade initiativeson soccer and th

7.5 MM fans#1 Engagement Brazil

18 Fanpages

Source: BPT

60%

creating an enduring bond with fans,through Team Membership Programs


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g p g

Opportunitty

Create a MOVEMENT of thelargest companies in Brazil ,

generating benefits to fansthrough the consumption of theirproducts

350.000Membership

+ Members = + $$Comm

prov

Discounts

Strong link w/ fans

New Partners

Virtuous Cycle

Gearing up for World Cup2014: new Brahma


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advertising campaign...


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Q&A

Documents

AMBEV Apresentacao 201210091 En