2013
Nelson Jamel
Chief Financial Officer
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 financial results. Any statements, expectations, capabilities,
plans and assumptions contained in this presentations that do not describe historical facts, such as
statements regarding the declarations or payment of dividends, the directions 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 forwardlooking statements 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.
2012 was another year of EBITDA growth and EBITDA margin improvement
Consolidating Brahma
as #1
Creation of
Ambev
International
expansion
Building & Exercising
Options
Organic Growth
Focus
48.6%
48.4%
46.4%
37.0%
27.8%
28.7%
37.8%
39.5%
42.3% 44.9%
44.3%
44.7%
11,707
15,679
13,141
10,361
35.4%
305%
8,794
23.8%
9,174
7,445
21.1%
6,305
4,537
662
667
1997
1998
903
1999
1,505 1,990
2000
2001
2,710
2002
3,072
2003
Source: Company data. Information until 2006 BRGAAP, 2007-2011 IFRS
2004
2005
2006
2007
2008
2009
2010
2011
2012
Our current footprint give us an attractive combination
of profitability and growth
Opportunity for
profitable growth and
M&A
Lead growth of
region with
profitability
Mature yet highly
profitable
business
#1 organic
growth
opportunity
Our Latin America South operations are a great
example of profitable growth
LAS EBITDA (USD) & Margin
Joint
control
Full
control
37.8%
40.4% 40.2%
43.5%
40.3%
45.9%
45.7% 45.9%
46.8%
1,413
1,240
998
32.6%
803
475
871
552
384
212
2003
288
2004
2005
Source: Company data.
2006
2007
2008
2009
2010
2011
2012
and we will keep pursuing our strategy of
driving industry growth with profitability
Argentina
Full Brand Portfolio
example
Share of
Throat
Premium
Innovation
100
90
Per Capita (Liters)
80
70
60
50
40
44
BEER
30
20
27
WINE
10
0
Source: Beer (Ex Factory Volume). Wine:
Bodegas Argentinas.
Our current footprint give us an attractive combination
of profitability and growth
Opportunity for
profitable growth and
M&A
Lead growth of
region with
profitability
Mature yet highly
profitable
business
#1 organic
growth
opportunity
Our Canadian team has managed to take Labatts
operation to a new level
Labatt EBITDA (CAD) & Margin
38.5%
40.1%
39.6%
38.6%
41.1%
41.5%
36.0%
846
29.8%
872
869
881
2008
2009
2010
41.9%
868
860
779
725
622
2004
2005
2006
Source: Company data.
2007
2011
2012
and we are placing some big bets for the coming years
Full brand portfolio across
demand landscape
Our current footprint give us an attractive combination
of profitability and growth
Opportunity for
profitable growth and
M&A
Lead growth of
region with
profitability
Mature yet highly
profitable
business
#1 organic
growth
opportunity
CND integration is on track & M&A opportunities remain
Integration opportunities
Procurement
Savings
Business
Integration
Revenue
Management
Leveraging Ambevs
scale & procurement
tools
Sales team
Direct distribution centers
ZBB implementation
Innovation
Premiumization
Central America +
Caribbean have
~US$ 1 billion
EBITDA potential
Our current footprint give us an attractive combination
of profitability and growth
Opportunity for
profitable growth and
M&A
Lead growth of
region with
profitability
Mature yet highly
profitable
business
#1 organic
growth
opportunity
Brazils medium and long-term opportunities are still out
there for the taking...
Commercial Strategies
Changing social
mobility landscape
Lowest per capita
income & highest
average growth
Lower per capita
consumption
Below average
market share
Domestic &
intl portfolio
6% of
volumes
17
Returnable glass bottles
represent more than 65%
of our volumes
Pack price strategy
More friendly to
the environment
Tapping into new consumer needs
& occasions
Relevant volume &
market share contribution
since 2008
Route-to-market
innovation
Approximately 31 million
hectoliters in volumes
~R$1.7 billion of EBITDA
in 2012
Industry benchmark
profitability
Over the last two years we have managed to grow the top line & EBITDA
despite tougher macro & industry realities...
Market
Share
68.7%
69.0%
70.1%
18.4%
68.5%
18.0%
17.3%
13.9%
12.5%
12.3%
10.9%
9.9%
10.7%
9.7%
0.1%
Volume growth vs. LY
... and challenge for 2013 is no different
Net revenue growth vs. LY
EBITDA growth vs. LY
2.5%
Source: Company data.
However, the year started tougher than expected...
Main findings
Volume
Food
inflation
4.0%
set/12
out/12
nov/12
IPCA
Lower
disposable
income
growth
-8.2%
1Q12 vs. LY
1Q13 vs. LY
Source: Company data; IBGE;
dez/12
jan/13
fev/13
mar/13
IPCA Food and Beverages
abr/13
... which means we will have to focus even more on
affordable packaging
Pack price strategy has
been successful
1 liter case (Industry Volume Weight)
and today we have
1 liter
more options than
before
550ml
300 ml
269 ml
Source: Nielsen Retail Index
... so we have quickly fine-tuned our commercial priorities
to improve volume performance in a profitable way...
1 liter
300 ml
Off-premise
More for less
+1,529%
15.5
RGB Weight
Lower out-of-pocket
+297%
+139%
+151%
+55%
+9.9%
+177%
+171%
+16%
+10.7%
4.6
+156%
+4.0%
+2.8%
+2.9%
+2.5%
+0.1%
2009
2010
2011
2011
+0.2%
2012
2012
-8.2%
Volume growth vs LY
1Q12
2Q12
3Q12
4Q12
Volume growth vs LY
Brazil Beer
Source: Company data.
1 liter
Brazil Beer
300 ml
1Q13
while also applying our financial discipline to adapt
our costs & expenses in the short term...
Right sizing
Cost-connect-win
Non-working money
and we also continue to invest in the future
World Cup
Legacy
Connecting with consumers before, during & after the
FIFA 2014 World Cup...
In order to build a strong soccer platform, we have developed relevant
assets ranging from local teams to the FIFA 2014 World Cup
Local Teams
Confederations
Cup
World Cup
Connecting with consumers before, during & after the
FIFA 2014 World Cup...
Local Teams
Confederations
Cup
World Cup
Since 2011 Brahma has been innovating on how to connect
with consumers through the sponsorship of local teams...
Structural Investments
Stadium Activation
Reaching out to fans via
digital media
Brand activation
... and is also leading an initiative to transform soccer in
Brazil...
Fan Membership Program
Program Evolution
(# of fans)
3 MM
1MM
495K
157K
Jan 13
Launch
May 13
Dec 13
Dream
Brand Activation
Connecting with consumers before, during & after the
FIFA 2014 World Cup...
Local Teams
Confederations
Cup
World Cup
FIFA Confederations Cup is unique opportunity to ramp up our
initiatives around brand equity, incremental volume & corporate image
as we get ready for 2014...
Innovation
Event highlights
Promo Pack
Confederations
Cup Special
Edition
June 15-30
16 matches
6 host cities
Zero Alcohol
Special Edition
Aluminum Bottle
Connecting with consumers before, during & after the
FIFA 2014 World Cup...
Local Teams
Confederations
Cup
World Cup
Making the most of our assets and execution with scale will
be key for the FIFA 2014 World Cup...
Micro Events
Event highlights
Focus Brands
June 12-July 13
64 matches
12 host cities
Gearing up for World Cup
2014: Brahma advertising
campaign...
Q&A
