Geografia
LATIN AMERICA SOUTHFrom USD 200 million to USD1.5 billion EBITDA in 10 years
2014 RESULTS EBITDA R$% consolidated EBITDA
Latin America
South3,099 MM
17%Source: Company, 2014 figures
LATIN AMERICA SOUTH10 years of profitable growth with great long term opportunitiesSolid
financial performance
LAS EBITDA (USD)
Great long term opportunities...
2nd player 37 liters per cap
2nd player 48 liters per cap
Market leader36 liters per capMarket
leader33 liters per cap
Market leader28 liters per cap
Market leader42 litersper cap
2nd player 42 liters per cap
... supported by a complete portfolio approach
High End
Premium
Mainstream
212
Source: Company data, Euromonitor
1,319
2003
2014
CANADAWhat is newwith Corona?
2014 RESULTS EBITDA R$% consolidated EBITDA
Canada1,755 MM10%
Source: Company, 2014 figures
CENTRAL AMERICAAND CARIBBEANUSD 1 billionEBITDA potential
2014 RESULTS EBITDA R$% consolidated EBITDA
Central America
and Caribbean698 MM
4%
Source: Company, 2014 figures
9
… WITH REGIONAL OPPORTUNITIES TO REMAIN AS KEY PER CAPITAGROWTH DRIVERS HDI VS. TOTAL
PER CAPITA CONSUMPTION
NN
EE
10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.00.0
0.70
NNOO
0.65
0.60
Source: Company estimates
0.75
0.80
MMWW
SSEE SS
0.85
Perfil público
BRAZILStrong structural drivers + new consumer trends create big top line opportunities
Positive Demographics
Per Capita Growth
AMBEV WELL POSITIONED TO CAPTURE THESE
GROWTH OPPORTUNITIES
Strong brands
Local execution, global expertise Leading
market share
Talented and motivated people
Unparalleled distribution footprint
Complete portfolio mainstream to high end
Nimble and fast to react
10
Source: Roper 2013
Difficulty paying monthly bills
Difficulty paying off credit/debit 2049
2456
NEGATIVE EVENTS CONSUMER CONFIDENCE
2354
36
27 3011 12
3 22
Global (25) Brazil
Don´t Know
Not at all confident
Not very confidentMore confident than not
Very confident
66
67
52
54
41
19
2810
11
22
23
25
32
39
PURCHASE INTENT
Home
Fine Watch / Jewelry Special Vacation
Car / Other Vehicle
Home Appliances Homes Electronics Personal Electronics
CUTBACKS 44
5735
47
2640
2742
Dining out atrestaurantsGoing out
for entertainment (movies,s
ports events, concerts, etc.)
Household energyuse
Going out fora drink
GlobalBrazil
AND DESPITE THE SHORT TERM CHALLENGES…THE BRAZILIAN CONSUMER REMAINS CONFIDENT WITH THE FUTURE…
14
…AND IT ALL STARTS WITH HAVING THE BEST PRODUCTS TO THE VARIOUSTYPES OF CONSUMERS IN THEIR DIFFERENT NEED STATES
Source: Segmentation
Needstate
Consumer Type
Budweiser Market Share%
Taking Budweiser to a new level
during and after FWC
Strong increase since 2011 with
significant room for growth
ACCELERATE PREMIUMA complete portfolio and targeted execution to lead the segment
48.4%
28.3%22.9%
24.9%
13.2%21.9%
vs other Beer Markets
2010 2011 2012 2013 2014
4.9%
Premium Weight Brazil
7.5%
Source: Company estimates, Nielsen
Perfil produtos
19
… AND OUR TARGETED INNOVATION CONTINUES: BRAHMA 0.0…Refresh MyselfOut Of Home occasions
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2012 2013
Brahma 0.0 launch
Industry Non alcohol volumeNA MS
+6.7pp
Sep12
Sep13
Source: Nielsen
+33.6%
20
… AND OUR TARGETED INNOVATION CONTINUES: SKOL BEATSEXTREME Amp
UpNight
OutBeats relaunch Extreme launch
NEW
BOTTLE
NEW
LIQUID
6.9% ABV
25
Source: Nielsen
YTD´132012
41%
39%
20112010
13%9
%2009
Domestic
International
GROWTH HAS BEEN DRIVEN PRIMARILY BYINTERNATIONAL BRANDS…WEIGHT WITHIN PREMIUM
VOLUMES (%)
59%61
%77%87
%91%98
%99%
1%
2007
2%2008
23%
26
… ALLOWING US TO LEAD THE GROWTH AMONGINTERNATIONAL BRANDS
30
20 J08 J09 J10J11 J12 J13 M M J
40
50
60
70
51
48
67
29
41
59
Competition
Source: Nielsen Retail Index
28
… BUT THERE IS MORE TO COME WHEN WE LOOK AT THE NEEDSTATES OF THE BRAZILIAN CONSUMERAmp
UpIntern
ational PremiumBudweiserLead the international
Segment
YTD 12
YTD 13
+47%
29
OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILAR ANDCONTINUES TO DRIVE BETTER PERFORMANCE…FULL
PORTFOLIO
BLOCKBUSTERPROMOTIONS
DIGITALCONNECTIONS
INVESTING BEHIND
BRAND EQUITY
30
OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILAR ANDCONTINUES TO DRIVE BETTER PERFORMANCE…
2008 2009 2010 2011 2012 YTD 13
7,47,7
8,18,6
9,0
10,7
CLOSING GAPSTHROUGH
INNOVATIONConsistent Guaraná Antarctica
Market SHARE GROWTH
9,6
Oct 13
Source: Nielsen Source: Company data
INCREASING PRESENCE IN
New Categories
20132012
Volume OCT’13 YTD
2x
Investimentos
11
..AND SO DOES THE INDUSTRY THAT CONTINUES TO INVESTHEAVILY FOR THE FUTURECOLD
BEVERAGES INDUSTRY
CAPEX (BRL BILLION)
Source: CERVBRASIL, ABIR
Source: PWC, IBGE, BNDES, FGV
Cold beverages industry represents 3% of Brazil’s GDPGenerates over 3 millionjobs (direct and indirect)
Biggest GDP multiplier in theeconomy
2.02.2
6.27.5
7.9
Estratégias
Brazil‟s medium and long-term opportunities are still out
there for the taking...
Commercial Strategies
13
THE EXECUTION OF OUR COMMERCIAL STRATEGIES AND
THE CONTINUED FOCUS ON OUR CORE CAPABILITIES HAVE MADE (AND WILL CONTINUE TO MAKE) THE DIFFERENCE…
COMMERCIAL STRATEGIES BUILDING
BLOCKS
World Cup Legacy
Source: Company data. Information until 2006 BRGAAP, 2007-2011 IFRS
2012 was another year of EBITDA growth and EBITDA margin improvement
8,794 9,174
2007
10,361
2008 2009 2010
11,707
2011
13,141
Consolidating Brahma as #1
Creation of Ambev
International expansion
Organic Growth Focus
Building & Exercising Options
1997
662 667 903 1,505 1,9902,710 3,072
4,537
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% 44.7%
46.4%
2012
48.4%48.6%
15,679
Our current footprint give us an attractive combination of profitability and growth…
Lead growth of region with profitability
Mature yet highly profitable business
#1 organic growth
opportunity
Opportunity for profitable growth and
M&A
8
… and we will keep pursuing our strategy ofdriving industry growth with profitability Share of
Throat
Premium
Innovation
Full Brand Portfolio
10
0
20
30
40
50
80
70
60
90
100Per Capita (Liters)
27
44
BEERWINE
Source: Beer (Ex Factory Volume). Wine: Bodegas Argentinas.
Argentinaexample
… and we are placing some big bets for the coming years…
Full brand portfolio across demand landscape
Brazil‟s medium and long-term opportunities are still out
there for the taking...
Commercial Strategies
RELAX & BONDING
FOOD & SAVORMOOD SHIFT
SOCIAL CATALYST
Needstate
Occasion OUT OF
HOMEIN HOME
Sub Total OccasionGDPS Total Inc. Vol.´15
Consumer /
Channel
Consumer /
focused
Shopper /Channel
Σ MM Hl
Σ MM Hl
TT MM Hl
Opportunity: MM Hl
Opportunity: MM Hl
Opportunity: MM Hl
Opportunity: MM Hl
Need State Init.
Occasion Init.
ΣMM Hl
Σ MM Hl
Σ MM Hl
Σ MM Hl
Need State Init. Occasion Init.
Opportunity: MM HlNeed State Init. Occasion
Init.
Opportunity: MM HlNeed State Init.
Occasion Init.
Need State Init.
Occasion Init.
Need State Init. Occasion Init.
Opportunity: MM Hl
Need State Init. Occasion Init.
Opportunity: MM HlNeed State
Init.Occasion Init.
GROWTH DRIVERS: INNOVATIONQuantifying the opportunities and turning it into action
New liquids, new packaging, enhancing the consumer experience
Talented People
Strong Culture
Financial Discipline (eg, ZBB)
Consolidating Brahma as #1
Brahma &
Antarctica merger
synergies
Stronger Portfolio & Revenue
mgmt
TradePrograms
Integrating Quinsa &
Labatt
Preparing HILA for the
future
Leveraging Scale (eg,
Direct distribution)
Creation of AmBev International expansion
Organic Growth Focus
Quinsa Transaction
Labatt Acquisition
HILA-exStart-ups
Building & Exercising Options
Innovation & Brand building
Productivity & Cash
generation
Relationship & CSR
Our organic and non organic growth history has enabled us to build a winningbusiness, with several learnings over time that have made us who we are...