Apresentacao Institucional Conferencia BTG 13feb12

7/28/2019 Apresentacao Institucional Conferencia BTG 13feb12

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2012


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Statements contained in this presentation may contain information that is forward-lookingand reflects management's current view and estimates of future economic circumstances,industry conditions, company performance, and financial results. Any statements,expectations, capabilities, plans and assumptions contained in this presentations that do notdescribe historical facts, such as statements regarding the declarations or payment of

dividends, the directions of future operations, the implementation of principal operating andfinancing strategies and capital expenditure plans, the factors or trends affecting financialcondition, liquidity or results of operations are forward-looking statements and involve anumber of risks and uncertainties. There is no guarantee that these results will actually occur.The statements are based on many assumptions and factors, including general economic andmarket conditions, industry conditions, and operating factors. Any changes in suchassumptions or factors could cause actual results to differ materially from currentexpectations.


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Ambev Overview

Brazil deep dive

3


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Where we operate: 13 countries through 4

business units

and we have a world

EBITDA Margin benchmark

LAS

Market Leader in Argentina, Bolivia,Paraguay and Uruguay

2nd player in Chile

EBITDA Margin 10 45.7%

25 plants

HILA EX

Long-term strategy

Growth potential5 plants

BRAZIL

Market Leader in Brazil

EBITDA Margin 10

49.9%2nd player Soft Drinks and Nancbusiness

EBITDA Margin 10 47.8%

37 plants

CANADA

Market Leader in Canada

EBITDA Margin 10 - 41.1%6 plants

2010 consolidated figures:Sales Volumes 165.1 mm HlEBITDA R$ 11.7 billionEBITDA Margin 46.4%

Market cap BRL 179.4 billion(USD 104.1 billion) @09-Feb-12

4 Sources: Company data, Nielsen, Bloomberg


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Regional breakdown: although majority of our

results come from Brazil

we have relevant profitability

contributions from Canada and LAS

5 Sources: Company data


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... and other local jewels

Our portfolio is comprised of 4 Billion Dollar

brands

# 4 brand in the

world (volume)

6 Sources: Plato 2010

# 14 brand in the

world (volume)

# 7 brand in the

world (volume)


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How we have grown over time: a mix of non-

organic growth

Ambev1999

Quinsa2002

Hila-Ex2003

Canada2004

LAN

LAS

CANADA

+

Brahma1989

7


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organic growth and operational

leverage

8Sources: Company data


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The largest market with ~1 million points of sale

68.9% BeerMarket Share and 18.1% Soft Drinks Market Share (9M 2011)

Very fragmented market: Distribution is key (~1 million points of sale, visited in avg.1.5 x a week)

Beer mostly consumed in on-premise outlets which represent ~65% of volume

- Main presentation: 600 ml returnable glass bottles

Supermarkets accounts for approx. 35% of volume

- Main presentation is 350 ml aluminum cans

Different realities within the same country

- Beer preference / Per Capita / Population

75 Distribution Centers (>60% volume)

174 Third Party Distributors

37 Plants~28,000 employees

Brazil business

9Sources: Nielsen, Company data


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Bolivia

Beer market (mm Hl): 3.7

Avg per capita (liters): 36.1

Market Share: 97.0% (3Q11)

Paraguay




Uruguay




ArgentinaBeer market (mm Hl): 17.9



Chile




Source: Plato 2010, Company estimates, Nielsen

Strong operation in Latin America South

10

Beer and CSD&NANC business

Market Consumption: > 80% off premise &

> 90% returnable presentations

More than 70% distributed through

independent distributors

Market growth based on premium,

specialties and innovation

~7,000 employees

24 plants

A more premium market

USD CAGR

24,8%

LAS EBITDA


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Number one beer producer in Canada (40.7% Market Share in 3Q11)

Nearly 58% of volume of the market consumed in Ontario & Quebec

Highly regulated market (minimum prices)

Each province is governed by different regulatory and ownership ofdistribution and retail systems

High contribution margin: 7% of Ambev volume and 13% of total EBITDA

~3,000 employees

6 plants

Highly profitable operation in CanadaA more mature market

11

622

725

779

846 872 869881

2004 2005 2006 2007 2008 2009 2010

Labatts EBITDA (CAD MM)


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DREAM

To be the best beverage company in a better world

Targets and results

Social Responsibility

PEOPLE

CompetitiveAdvantage

Compensation

Leadership development

Career development

Training

CULTURE

Consistency

Principles

Meritocracy

Ownership

Long term commitment

Candor

What we believe in:Dream-People-Culture platform

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13

Ambev Overview

Brazil deep dive


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14

Brazil Deep Dive

Market overview

2009-2011 results and learnings

2012 and beyond


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Market Overview


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Brazil Beer market is ranked #3 and has grown

faster than global average...

Sources: Plato 2010

World Beer Market

Country Volume (M Hl) 5y CAGR

China 450 8,1%

USA 244 0,2%

Brazil 126 6,2%

Russia 97 2,1%

World 1851 3,2%

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We have a leadership position in the Brazilian

Beer market...

Sources: Nielsen17

68.9%

10.9%

10.3%

8.4%

1.5%

2011 9M Average Market Share 2011 9M Average Share of Value

2011 9M Market Share per Brand32.7%

19.3%15.7%

9.4%

73.5%

8.9%

6.9%

1.2%

9.6%7.2% 4.6%


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And this leadership translates into a profitable

beer business

18 Source: Company data

2011 9M

-0.2%

2011 9M

+12.7%

2011 9M

+150bps


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Our soft drinks business also shows a track

record of profitable growth

Sources: Company data, Nielsen19

2011 9M

+40bps

2011 9M

+0.8%

2011 9M

+5.6%


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2009-2011

Results and Learnings


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2009-2011 New and Old Initiatives: creating

options for the future

Commercial Strategy

Liquid & Packaging Innovation Sports Platform

Brand Health

NENO & RGB strategies

Productivity

Cost/HI below inflation Sales force Execution

Negative Working Capital

Relationship

Industry

Governments

Antitrust

NGOs

Relationship

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Commercial Strategy -

2009-2011 Innovation Pipeline

1L Rollout

300ml

RGBSleek

can

Bohemia

OakenBohemia

Swiss

Draft

Original

300ml

Stella

Artois 1L

1L Rollout

Sub Zero

1L Rollout

300ml

RGB

Brahma

FreshRollout

Brahma

Fresh LN

Skol

360473 ml

Budweiser

22

1L RGB

Brahma

Copao


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Copa America

(Argentina)

2011

Olympics (London)/

World Cup Qualifying

2012

Confed Cup

(Brazil)

2013

World Cup (Brazil)

2014

Copa America

(Brazil)

2015 2016

Olympics

(Brazil)

25% of total

beer amountsold in Brazil

are related to

sports

occasions

Media Pack Globo TV FIFA CBF Americas Cup

5 Players +

National Coach Engenho Stadium -

RJ

26 local

Teams

Strong Sports Agenda over the next years

Opportunity Size Ambev Assets

13%

12%

Commercial Strategy Focus on sports platform

23 Source: Company data


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Social Environmental Legacy

Brahma at

Community

Cyan

Initiative

+ID

Ambev

Recycling

NGO

programs

Legal

Drinking

Infrastructure,

professional training,

culture and legal

drinking to communities

through soccer

Responsible

way to use

water

LDA drinking program

LDA POC

program

Association with

NGOs

Recycling platform

in stadiums

IndustryGovernments

Antitrust

NGOs

Relationship

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2012 and beyond


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Reach short-term economicresults sustaining market share

and brand-equity positions

Maintain balance and Influencetrends to keep results sustainable

in the long term

2012: How to achieve our results

OFF Trade

ON Trade

Premium

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Where we are going to beyond 2012...

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Premium Beer

Sources: Nielsen and Plato

Huge gap against other

developed countries and

below word index

Opportunity to develop

Core Plus with an

International Renowned

Brand

28

% Weight in Overall Premium


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0%

20%

40%

60%

80%

100%

2004 2005 2006 2007 2008 2009 2010

Heineken Stella Artois

# 1 international beer < 5 years after launch

Market Share Ratio Heineken:Stella

Note: Market share figures are based upon each brands contribution (in Hl) to the overall market volume.

Stella Artois market

share in 2011 ~6%

Argentina Case: delivering growth in the premium segment

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Where we are going to beyond 2012...

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Per capita increase driven by income growth

Source: Plato 2011E31

2011E


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Per capita consumption by Region

Helped by minimum wage and social

programs, Northeast and North regions beer

market volume have grown ahead of other

regions...

... but still are underdeveloped when

compared to other regions in Brazil...

Source: LCA, Plato, Internal data and calculation

80,4

48,7

29,8

64,8

74,965,4

32

Brazil

2010


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Continue to focus on innovations (new news and rollouts)

Lead the way in growing premium

Keep investing in the fastest growing regions in the

country (NENO)

Maintain brand equity momentum

Execute our pack price strategy

Wrapping up: we believe we have the people and

the plans in place

so its time to focus on execution


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Q&A

Documents

Apresentacao Institucional Conferencia BTG 13feb12