Institutional Presentation

This presentation was prepared for informational purposes only and should not be considered as a solicitation or offer to buy or sell any securities of the
Company, or as advice or recommendation of any nature. This presentation is not intended to be comprehensive, or to contain all the information that
Ambev’s shareholders might need. No decisions on investment, disposal or any other financial decisions or actions shall be made solely on the basis of the
information contained herein.
This presentation segregates the impact of organic changes from those arising from changes in scope or currency translation. Scope changes represent the
impact of acquisitions and divestitures, the start up or termination of activities or the transfer of activities between segments, curtailment gains and losses and
year over year changes in accounting estimates and other assumptions that management does not consider as part of the underlying performance of the
business. Organic growth and normalized numbers are presented applying constant year-over-year exchange rates to exclude the impact of the movement
of foreign exchange rates.
Unless stated, percentage changes in this presentation are both organic and normalized in nature. Whenever used in this document, the term “normalized”
refers to performance measures (EBITDA, EBIT, Profit, EPS) before special items adjustments. Special items are either income or expenses which do not occur
regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying
sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management and should not
replace the measures determined in accordance with IFRS as indicators of the Company’s performance. Comparisons, unless otherwise stated, refer to the full
year of 2017. Values in this presentation may not add up due to rounding.
Statements contained in this presentation may contain information that is forward-looking and reflects management’s current view and estimates of future
economic circumstances, industry conditions, Company performance, and finance results. Any statements, expectations, capabilities, plans and assumptions
contained in this presentation that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of
future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial
condition, liquidity or results of operations, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and
involve a number 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 and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could
cause actual results to differ materially from current expectations.
Ambev
EBITDA (R$ MM) and EBITDA Margin Evolution
25,0 55%
Billions

21,099
50%

20,0

45%

CND
42%
40%

15,0

35%

10,0

30%

24%
25%

5,0

20%

662
- 15%

Sources: Company reports

Ambev Today
Canada
2,152 MM
10%

Central
2018 America
RESULTS and the
Caribbean Brazil
EBITDA R$
% consolidated 2,290 MM 11,763 MM
EBITDA 11% 56%

R$ 21,099 MM Latin
EBITDA America
42,0% South
EBITDA Margin 4,894 MM
23%
Brazil

2018
RESULTS BEER
EBITDA R$
% consolidated 10,350 MM
EBITDA 49%

NAB
1,413 MM
7%
Brazil
Creating value in a sustainable way through the cycles
EBITDA R$ billion

EBITDA (R$ billion) Quarterly GDP YoY (%)

Sources: Company results, Bloomberg

Structural growth drivers: Positive demographics
LDA Population to grow 1.0% CAGR in the next 5 years

LDA+ Population (MM)

CAGR 5 years
200 2020 to 2025
180

172 173
165 167 168 169 171
160
160 162 163
156 158
140
145 148 150 152 154
120
139 141 143

100

80

60

40

20

0
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: IBGE, company estimates.

Structural growth drivers: Disposable Income
Brazil, land of disparities, significant room for per capita
consumption growth despite short term pressure
Beer per capita consumption vs. personal income Real disposable income growth (yoy %)

12
liters

110
6

0
90 Regions in
-6
different
maturity
70
stages
Consumer Confidence
50 Brazil Average
140
Brazilian States
120
30
100

80
10
500 1.000 1.500 2.000 60

R$, monthly

Source: IBGE 2014, Nielsen, company estimates, , UN, LCA, FGV

 Category Framework & Portfolio Strategy
Category Expansion Framework Market Maturity Model*

Low Maturity Middle Maturity High Maturity

Premiumization
Czech
Republic
Germany
Lager Latvia Austria
Slovakia Slovenia

Per Capita Consumption drinks

Poland United Kingdom
Finland
Other Bulgaria
Portugal Denmark

Flavored Easy Classic

Australia
beer romania Spain United States
Switzerland

drinking Croatia Belgium France

styles South Africa
Belarus Hungary Canada
Panama Japan Netherlands
Brazil Russia Italy
Argentina
Chile Greece
ParaguayUkraine
Georgia Uruguay
China Bosnia and Herzegovina Serbia
Venezuela Cuba Mexico
Viet Nam Laos
Dominican Republican
Bolivia Peru
Affordability Honduras
Angola
Sri Lanka
Ecuador Colombia Costa Rica Singapore Taiwan
India Uzbekistan
Nigeria El Salvador
Cambodia Cameroon
Kenya
Turkey
Tanzania
Ethiopia

Market Maturity Score

We use the Category Expansion Framework and the Market Maturity model
to define the correct portfolio mix and strategies for each region
*Market maturity model updated 2017 – Canback, WHO, Plato, Euromonitor, Canadean
Strategic Platforms
Category Framework & Portfolio Strategy

Premiumize
Sustainability
at Scale

Differentiate Drive Operational

the Core Excellence

Drive Smart Business Transformation

Affordability Enabled by Technology

Lead Innovation
Premiumize at Scale
We are certain that the premium market is a portfolio strategy
Differentiate the Core
We made transformational investments in our core segment in the past years

Family Family
Drive Smart Affordability
Tackling affordability with relevant brands and without disrupting profitability

PACKAGING REGIONAL BRANDS

 Sustainability 2025 Goals
Smart Climate Circular
Water agriculture action packaging Entrepreneurship

% % % %
of our of our of our of our of our
communities direct farmers purchased products entrepreneurs
electricity
in high-stress areas will will be skilled, will be from renewable will be in will be skilled with the
have measurably connected, and sources and a 25% packaging that is necessary tools to
improved water financially reduction in CO2 emissions returnable or made evolve
availability and quality empowered across our value chain from majority
(science-based) recycled content
LAS

2018
RESULTS
EBITDA R$
% consolidated
EBITDA

Latin
America
South
4,894 MM
23%
 LAS
15 years of profitable growth with great long term opportunities

Solid financial Great long term ... supported by a complete

performance opportunities... portfolio approach

Market leader
35 liters
per cap

Premium
1.350
Market leader
48 liters
per cap
2nd player
51 liters
per cap
Core Plus
212

2003 2018 Market leader

34 liters
Market leader per cap
46 liters
LAS EBITDA (USD) per cap
Mainstream

Source: Company data, Plato Logic Limited

CAC

Central
2018 America
RESULTS and the
Caribbean
EBITDA R$
% consolidated 2,290 MM
EBITDA 11%
 CAC
USD 1 billion EBITDA opportunity through organic and non organic growth
EBITDA (USD Million)
Organic volume
growth in the
last 9 years 700,0

630
50%

600,0 576
40%

500,0

427 30%

360
Premium is
400,0

20%
297
300,0

an opportunity 200,0
214
10%

105
00%
100,0

- -10%

2012 2013 2014 2015 2016 2017 2018

USD 1 BILLION
EBITDA EBITDA Margin from -5% to more than
39% with room to expand
OPPORTUNITY

Source: Company data and estimates.

Canada
Canada
2,152 MM
10%

2018 Market leader with

a WINNING PORTFOLIO
RESULTS from mainstream to
EBITDA R$
% consolidated high end and
EBITDA Ready to Drink
A solid financial discipline
Creating long term shareholder value

EBITDA (R$ billion) Working Capital (R$ billion)

2013 2014 2015 2016 2017 2018

22,2 20,1 21,1

17,5 18,3 19,5 -8,0
-10,8 -11,0
-12,8 -14,3
-15,4

2013 2014 2015 2016 2017 2018

ROIC (%) Cashflow From Operating Activies (R$ billion)

25,00 23,6
40% 17,9 17,9
20,00
15,3 15,9
15,00 12,3
30% 10,00

5,00

20% -

2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018

Source: Company, 2018 figures

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