2012

Joo Castro Neves

Chief Executive 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.

LAST 15 YEARS IN REVIEW

3

BUILDING BLOCKS FOR THE FUTURE

Our organic and non organic growth history has enabled us to build a winning business, with several learnings over time that have made us who we are...

Consolidating Brahma as #1

Creation of AmBev

International expansion

Organic Growth Focus

Building & Exercising Options

Talented People

Brahma & Antarctica merger synergies Stronger Portfolio & Revenue mgmt Leveraging Scale (eg, Direct distribution)

Quinsa Transaction

Trade Programs

Innovation & Brand building

Strong Culture

Labatt Acquisition

Integrating Quinsa & Labatt

Productivity & Cash generation

Financial Discipline (eg, ZBB)

HILA-ex Start-ups

Preparing HILA for the future

Relationship & CSR

 while delivering solid EBITDA growth and industry benchmark EBITDA margin along the way...
Consolidating Brahma as #1 Creation of AmBev International expansion Organic Growth Focus Building & Exercising Options

48.4% 46.4% 37.0% 27.8% 23.8% 28.7% 305% 37.8% 35.4% 39.5% 42.3% 44.9% 44.3% 44.7%

11,707 10,361 8,794 9,174

13,141

7,445
6,305
21.1%

4,537 1,505 1,990

2000 2001

2,710

3,072

Growth coming organically

662
1997

667
1998

903
1999

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

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

 which has also led to a substantial increase in our share price and market capitalization, creating significant value for our shareholders
Consolidating Brahma Creation of AmBev as #1
2950%

International expansion

Organic Growth Focus

Building & Exercising Options

ABV
2450%

1950%

1450%

$ 110.9 bi Market cap

950%

450%

$ 5.3 bi Market cap

SPX
-50% 1997 1998 1998 1999 1999 2000 2000 2001 2002 2002 2003 2003 2004 2005 2005 2006 2006 2007 2007 2008 2009 2009 2010 2010 2011 2012 2012

Source: Economatica, Bloomberg. US$.

In a nutshell...
We have had a good run over the last 15 years thanks mainly to
Talented people, strong culture & mgmt capabilities

... and, as a result, we have delivered

Shareholder value creation

M&A Strategy

Industry benchmark profitability Financial discipline & focus on productivity

Organic growth, innovation & brands

Consistent EBITDA growth

We are never fully satisfied with our results...

LAST 15 YEARS IN REVIEW

8

BUILDING BLOCKS FOR THE FUTURE

Our current footprint give us an attractive combination of profitability and growth

Opportunity for profitable growth and M&A Mature yet highly profitable business

Lead growth of region with profitability

#1 organic growth opportunity

Our Latin America South operations are a great example of non-organic and organic growth
LAS EBITDA (USD) & Margin
Joint control Full control

Organic growth

40.4% 40.2% 37.8% 32.6%

40.3%

43.5%

45.9% 45.7% 998

45.9% 1,240

803 475 384 552

871

212
2003

288

2004

2005

2006

2007

2008

2009

2010

2011

Source: Company data.

 and we will keep pursuing our strategy of driving industry growth Argentina Full Brand Portfolio example

Share of Throat Premium

Innovation
100 90 80
70

Per Capita (Liters)

60
50

40 30 20 10
0

44

BEER
27

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

11

Our current footprint give us an attractive combination of profitability and growth

Opportunity for profitable growth and M&A Mature yet highly profitable business

Lead growth of region with profitability

#1 organic growth opportunity

Our Canadian team has managed to take Labatts operation to a new level
Labatt EBITDA (CAD) & Margin
40.1%
38.5% 36.0% 29.8% 779 725 622 846 872 869 881 860 39.6% 38.6%

41.1%

41.5%

2004

2005

2006

2007

2008

2009

2010

2011

Source: Company data.

 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 Mature yet highly profitable business

Lead growth of region with profitability

#1 organic growth opportunity

CND integration is on track to deliver our guidance of USD 190 million EBITDA for the first 12 months with margin expansion
Integration opportunities
Procurement Savings

Leveraging Ambevs scale & procurement tools

Business Integration

Sales team Direct distribution centers ZBB implementation

Central America + Caribbean have ~US$ 1 billion EBITDA potential

Revenue Management

Innovation Premiumization

 benefiting from M&A integration track record and top line growth initiatives in our other markets

Pack price strategy Innovation

45.9% 40.3% 45.9% 45.7%1,240 43.5% 37.8% 40.4%40.2% 998 871 32.6% 803 384 475 552

Premium Events platform

212
2003

288
2004

2005

2006

2007

2008

2009

2010

2011

EBITDA (USD MM)

EBITDA MARGIN

Source: Company data.

Our current footprint give us an attractive combination of profitability and growth

Opportunity for profitable growth and M&A Mature yet highly profitable business

Lead growth of region with profitability

#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

N & NE still far from having met their full potential

N&NE volumes growing ahead of industry, with relevant market share opportunity
Beer Volume Growth (% YoY)
20.3%

N & NE MS gap vs BR MS

10.7%

10.6%

-3.8% -5.7%

-3.1%

4.1% 0.1%
2010
BR Volume
Source: Company data

3.4%

-7.7%
1H12
N & NE Volume
Source: Nielsen

2011

2009

2010

2011

1H12

Brazils medium and long-term opportunities are still out there for the taking...
Commercial Strategies

Win with domestic

Premium

international portfolio

Premium volumes represent only about 5% of industry volumes...

Opportunities to increase penetration driven mainly by international brands
Premium brands penetration (% of beer consumers) Weight within Premium volumes (%)

Domestic
99% 98% 91% 87% 76%

1%
2007

2%
2008

9%
2009

13%
2010

24%

International

2011

Source: Ipsos

Source: Nielsen

Stella & Bud growing together to consolidate our leadership in premium brands
BUD MS Stella Vol.
(Premium Brands)

1Q10

2Q10

3Q10

4Q10

1Q11

2Q11

3Q11

4Q11

1Q12

2Q12

3Q11

4Q11

1Q12

2Q12

Volume +67% (1H12)

Top 3 selling premium brand in less than 6 months after launch

Source: Company data, Nielsen

Brazils medium and long-term opportunities are still out there for the taking...
Commercial Strategies

Brazils on-premise channel accounts for more than 60% of beer volume

Returnable glass bottles represent more than 65% of our volumes

Higher average profitability More friendly to the environment

A twofold opportunity: boosting the on-trade experience Microevents

Mobile event structure (CSel focus) Increase out-of-home consumption

Source: Company data

Franchise
Improve consumption experience Right brands at the right price point

 and reintroducing returnables into the off-trade through Pit Stops and the RGB 300 ml

More than 850 Pit Stops in 2012

Rolling out the RGB 300 ml will be key

Coverage during 2012 increasing fast, while investments in production will support volume increase going forward
Production Footprint - 2012
300ml Coverage
(Off trade Key accounts)

54% 46%

30% 20% 22% 25%

4%
Jan

4% Rio de Janeiro
Feb Mar Apr May Jun Jul Aug

2011
So Paulo

Source: Company data

2012

Guarulhos Jacare

Brazils medium and long-term opportunities are still out there for the taking...
Commercial Strategies

Tapping into new consumer needs & occasions Relevant volume & market share contribution since 2008

Pack price strategy

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

Connecting with Customers Connecting with Consumers

Webstore that provides structure and materials for points of sale at a great price by leveraging our scale

Interactive guide to the best places to go out with better prices, with social media interface

Brazils medium and long-term opportunities are still out there for the taking...
Commercial Strategies

Approximately 30 million hectoliters in volumes ~R$1.5 billion of EBITDA in 2011 Industry benchmark profitability EBITDA CSD & Nanc

Our strategy has been consistent and is beginning to work

Innovation

All these opportunities become targets that are cascaded throughout the organization
Commercial Strategies

 and we also continue to invest in the future

Building blocks

World Cup Legacy

People Pipeline

People pipeline is stronger than ever...

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

Partnership
~200 ~500 ~6,000

People Bets -- Class of 2012

45 people

Average age of 36
Average tenure of 10

~23,000

 and we also continue to invest in the future

Building blocks

World Cup Legacy

Management

Capabilities

... Financial discipline remains in our DNA: after over 12 years of ZBB, we continue to find ways to reinvent ourselves
Since 2009 we have used e-auctions to purchase in more than 20 categories of supplies, generating savings of approximately 10%
Number of e-auctions

10,582

1,883 180
2009 2010 2011

~80% of capex of new malting facility in Passo Fundo was bought through e-auction
Source: Company data

 and we will continue to focus on productivity and execution excellence to overcome increasing complexity

Revised structure & processes

New segmentation & service level

Customer Service & Sales Support

 and we also continue to invest in the future

Building blocks

World Cup Legacy

Skol continues to lead the way in terms of innovating in how it connects with consumers: going digital #2 Brazilian
brand in number of fans

Digital audience (# of fans)

Relevant conversations
1,169,609 1,158,584

7,435 884

Generating content

2,408.209

181,431

143,570

186,013

162,371

2,556 2010 2011 YTD 2012

2010

2011 Total SK Registers

2012 SK Active Registers

Source: Campany Data

Guaran Antarctica is in great shape...

Consistent market share growth (CSD market share)
8.9

Lovemark

Digital platform

8.5 8.0 7.7 7.4

2008

2009 2010 Source: Nielsen

2011

YTD 2012

Affordability
Billion Dollar Brand (Gross revenue)
1.67 1.20 1.24
GRB 1L 1L 1.5L 2L 2.25L 2.5L 3.3L

Consistent investment (SOV)

1.92

2008

2009

2010

2011
237 GRB 290 Can 350 P500 P600

Source: Company data.

 and we also continue to invest in the future

Building blocks

World Cup Legacy

Beer Category

CULTURE & BEHAVIOR

RESPONSIBLE CONSUMPTION

ECONOMIC CONTRIBUTION

HEALTH & WELLNESS

ENVIRONMENT

BEER KNOWLEDGE

50

We have begun our journey towards strengthening beer culture in Brazil...

7,000 m2 of Bohemia experience Launched in May 2012 Beer history and brand foundation

Interactive production process with real factory visit

Entertainment merging learning and fun Variants production and exclusive innovations 360o campaign, mainly on digital

... as well as focusing on improving our relationship with key stakeholders

Cold beverages industry represents 3% of Brazils GDP
Relevance of the industries for the economy
2,7

Food & Beverages

Fumo Couros Setor automotivo Borracha e Plstico Bens de capital Metalurgia e Siderurgia Celulose e Papel Qumicos

2,5

Generates over 3 million jobs (direct and indirect)

2,3

Multiplier

Petrleo e biocombustveis

2,1

Materiais eltricos Carvo mineral Produtos de metal Informtica Mveis Txteis e Vesturio Minerais metlicos

Biggest GDP multiplier in the economy

1,9

1,7

Grfica

Farmacuticos

1,5 0 20 40 Size of the industry 60 R$ Bilho 80

Source: PWC, IBGE, BNDES, FGV

... as well as focusing on improving our relationship with key stakeholders

Environment

Public Targets
Recycling
Waste recycling index = 99%

Responsible consumption programs

CO2 emissions
CO2 emission = 10% reduction

Water consumption
Water used in production = 3.5 L

 and we also continue to invest in the future

Building blocks

World Cup Legacy

 meanwhile, Brahma is investing behind soccer to connect with fans before, during and after the World Cup...
Relevance
Fans x Total - Population

Fans x Total - Population

Assets
34 teams 145 million fans 97% total Brazilian fans

60% 90%
Have a team
Source: BPT

Follow their teams performance

Genuine Cause (Brahma Fund)

Part of the profit coming from sales of Brahma is reverted for the teams as structural investments

Digital
Brahma teams fan pages generating content for each team individually
18 Fanpages 7.5 MM fans #1 Engagement Brazil

Trade
Trade initiatives at points of sale focused on soccer and thematic cans distribution

 creating an enduring bond with fans, through Team Membership Programs

Opportunitty
350.000 Membership

Create a MOVEMENT of the largest companies in Brazil , generating benefits to fans through the consumption of their products

Membership

= DISCOUNT
Strong link w/ fans

Virtuous Cycle
Commercial advantages, provided by industry

+ Members = + $$

New Partners

Discounts

Gearing up for World Cup 2014: new Brahma advertising campaign...

Q&A