AMBEV REPORTS 2017 THIRD QUARTER RESULTS UNDER IFRS

Transcription

1 Page 1 AMBEV REPORTS 2017 THIRD QUARTER RESULTS UNDER IFRS Sã Paul, Ambev S.A. [BOVESPA: ABEV3; NYSE: ABEV] annunces tday its results fr the 2017 third quarter. The fllwing perating and financial infrmatin, unless therwise indicated, is presented in nminal Reais and prepared accrding t Internatinal Financial Reprting Standards (IFRS), and shuld be read tgether with ur quarterly financial infrmatin fr the nine-mnth perid ended September 30, 2017 filed with the CVM and submitted t the SEC. Operating and Financial Highlights Tp line perfrmance: Tp line was up 9.6% in 3Q17, driven by a strng perfrmance in mst f ur peratins - Brazil (+9.7%); Latin America Suth (LAS) (+21.3%); and Central America and the Caribbean (CAC) (+7.5%) -, partially impacted by Canada (-3.6%). In Brazil, vlumes decline f 4.0% was mre than ffset by a healthy NR/hl grwth f 14.2%. In LAS, vlumes were up 4.5% and NR/hl rse by 16.1%. In CAC, NR/hl grew by 6.1% and, while rganic vlumes were flattish, reprted vlumes increased by 23.8%, as a result f the swap f assets carried ut with ABI and ur peratins in Panama. And, in Canada, vlumes were dwn 2.9%, affected by a weak industry, with NR/hl declining by 0.7%. Cst f Gds Sld (COGS): Our COGS increased by 8.1% in the quarter and, n a per hectliter basis, by 10.2%. Cash COGS (excluding depreciatin and amrtizatin) grew by 6.8% while, n a per hectliter basis, by 8.8%, mainly due t inflatinary pressures, higher cmmdities prices and unfavrable FX in LAS. Selling, General & Administrative (SG&A) expenses: SG&A and cash SG&A (excluding depreciatin and amrtizatin) was up 1.1% and up 1.5%, respectively, belw ur weighted average inflatin (arund 5.5%). EBITDA, Grss margin and EBITDA margin: Nrmalized EBITDA reached R$ 4,551.9 millin (+15.8%) in 3Q17, with grss margin f 60.6% (+60bps) and EBITDA margin f 40.1% (+220bps). Nrmalized Net Prfit and EPS: Nrmalized Net Prfit was R$ 3,236.6 millin in 3Q17, 1.2% higher than in 3Q16, as the EBITDA rganic grwth and the reductin f net financial expenses were partially impacted by: (i) the negative effect f currency translatin, driven by the appreciatin f the Brazilian Real, and (ii) a higher tax rate. Nrmalized EPS in the quarter was R$ 0.20 (+0.9%). Cash Generatin and CAPEX: Cash flw frm perating activities in 3Q17 was R$ 4,563.9 millin (+0.4%) while CAPEX reached R$ millin (-19.3%). Year t date, cash flw frm perating activities ttaled R$ 8,973.1 millin versus R$ 4,411.6 millin in the same perid f 2016, which is an increase f 103.4%. CAPEX year t date is declining by 26.2% t R$ 2.0 billin. Pay-ut and Financial discipline: In 2017, we have paid/annunced R$ 3.6 billin in dividends. As f September, 30 th 2017 ur net cash psitin was R$ 5,018.9 millin. Financial highlights - Ambev cnslidated % As % % As % R$ millin 3Q16 3Q17 Reprted Organic YTD16 YTD17 Reprted Organic Ttal vlumes 38, , % -2.0% 114, , % -0.2% Net sales 10, , % 9.6% 32, , % 7.5% Grss prfit 6, , % 10.5% 20, , % 3.2% Grss margin 59.8% 60.6% 80 bps 60 bps 62.8% 60.3% -250 bps -250 bps Nrmalized EBITDA 3, , % 15.8% 13, , % 1.5% Nrmalized EBITDA margin 38.2% 40.1% 190 bps 220 bps 41.5% 39.1% -240 bps -240 bps Prfit 3, % 8, , % Nrmalized prfit 3, , % 5, , % EPS (R$/shares) % % Nrmalized EPS % % Nte: Earnings per share calculatin is based n utstanding shares (ttal existing shares excluding shares held in treasury). This press release segregates the impact f rganic changes frm thse arising frm changes in scpe r currency translatin. Scpe changes represent the impact f acquisitins and divestitures, the start up r terminatin f activities r the transfer f activities between segments, curtailment gains and lsses and year ver year changes in accunting estimates and ther assumptins that management des nt cnsider as part f the underlying perfrmance f the business. Unless stated, percentage changes in this press release are bth rganic and nrmalized in nature. Whenever used in this dcument, the term nrmalized refers t perfrmance measures (EBITDA, EBIT, Prfit, EPS) befre exceptinal items adjustments. Exceptinal items are either incme r expenses which d nt ccur regularly as part f the nrmal activities f the Cmpany. They are presented separately because they are imprtant fr the understanding f the underlying sustainable perfrmance f the Cmpany due t their size r nature. Nrmalized measures are additinal measures used by management and shuld nt replace the measures determined in accrdance with IFRS as indicatrs f the Cmpany s perfrmance. Cmparisns, unless therwise stated, refer t the third quarter f 2016 (3Q16). Values in this release may nt add up due t runding.

2 Page 2 Management Cmments In 3Q17 we reached an inflectin pint, driven by a slid perfrmance in mst f ur markets. Cnslidated tp line was up 9.6% and EBITDA up 15.8%, with margin expansin f 220bps. Particularly fr Beer Brazil, we left 1H17 with a strengthened market psitin. As we started 2H17, we have been able t return t ur pattern f sustainable grwth. Our revenue management initiatives implemented during the quarter cntributed t an increase in tp line, with NR/hl rising by a rbust 15.8% that, alng with an imprved cst perfrmance, translated int EBITDA grwth f 25.7% and margin expansin f 540bps. Beer Brazil vlumes were dwn 5.4%, impacted by a still declining industry. Alng with that, this year we carried ut ur annual price adjustments during the third quarter, what resulted in a tugh cmparable base, due t the later timing f ur price adjustments last year. Fr the same reasn, this will represent an easy cmparable base in 4Q17. Year t date, vlumes declined by 1.1%, utperfrming the industry, that is falling arund 2.0%, accrding t Nielsen. During the quarter, we als cntinued t put effrts in ur plan, fcusing n ur cmmercial platfrms: Elevate the Cre Premium The whle Brahma family is revamped and standing ut n the shelves. Surveys cnducted with cnsumers demnstrated that Brahma s new Visual Brand Identity increased cnsumers purchase intentin by duble digits. The brand s preference is als trending up. The cre plus segment delivered anther quarter f ntable perfrmance, grwing duble digits, led by Brahma Extra, that launched a limited special editin f a Märzen Lager fr the Oktberfest. Premiumizatin is a trend that can be expected t cntinue t fster the beer categry. Premium vlumes ramped up during this quarter, with ur glbal brands prtfli, cmprised f Budweiser, Stella Artis and Crna, grwing duble digits. Near Beer In Hme Out Of Hme Skl Beats Senses kept n enhancing the equity f its mther brand and bnding with its cre target cnsumers delivering breakthrugh experiences, such as the Skl Beats Twer, an unprecedented festival that tk place in a building with fur flrs and eight different parties. An imprtant initiative t shape in hme cnsumptin has been the steady evlutin f ur market prgrams designed t the ff-trade channel. Such initiative has the purpse f elevating the beer categry in the ff-trade, imprving cnsumers shpping experience. We are evlving with the implementatin f ur 300ml returnable glass bttles strategy. Our minis are grwing year ver year with an increasingly ppularity. This is an imprtant step t bring affrdability t cnsumers with a higher prfitability. Ging ut with friends t enjy beer is part f the Brazilian culture. We are stepping up ur service level acrss the cuntry thrugh different initiatives and the use f new technlgy is playing an imprtant rle. We are using sales algrithms and develping ur B2B platfrm t imprve ur sales prcess, strengthen ur relatinship with ur custmers and, as a cnsequence, enhance cnsumers experience at the bar. This quarter was als marked by an imprtant event. Fr the first time, Ambev was the brewery that received the highest number f medals in the Wrld Beer Awards, a cmpetitin with the participatin f the best breweries in the wrld. We received in ttal 27 medals, an imprtant recgnitin that we have the greatest beers wrldwide.

3 Page 3 In CSD&NANC Brazil, the CSD industry is even mre challenging than the beer industry when hit by pressure n dispsable incme and discretinary spending, as cnsumers tend t trade dwn t pwder juices r tap water. In this envirnment, we delivered slightly psitive vlumes (+0.5%) in 3Q17 while the CSD industry is still declining. Nnetheless, ur results were temprarily affected by increased csts and investments ahead f the curve. We are nt pleased with ur peratinal results this quarter, but we are cnfident that we are taking the right initiatives t deliver a strnger perfrmance ging frward. Year t date, CSD&NANC vlumes declined by 4.5%, utperfrming the industry, that is falling arund 8.0%, accrding t Nielsen. Regarding ur internatinal peratins, in CAC, EBITDA increased by mre than 30%, with anther quarter f rbust margin expansin, als benefiting frm synergies frm the integratin f ur peratin in Panama. In LAS, we cntinue t have a great vlumes mmentum, especially in Argentina, as a result f an imprved macrecnmic envirnment, leading t tp line and EBITDA grwth f mre than 20%. And, in Canada, whilst ur market share grew in a psitive trend, ur results were heavily impacted by a pr summer seasn that led t an industry decline f lw single digit. Finally, it is imprtant t emphasize that ur reprted results include ur peratins in Panama and exclude ur frmer peratins in Clmbia, Peru and Ecuadr, which are treated as a scpe in ur CAC as LAS divisins, respectively. Lking at ur divisinal perfrmance highlights: Brazil. The Brazilian peratins delivered an EBITDA f R$ 2,377.3 millin (+17.4%) explained by a tp line grwth f 9.7% and a 260bps EBITDA margin expansin, reaching 39.4% in the quarter. Year t date, tp line increased by 2.0% while EBITDA declined by 10.4%, with margin cntractin f 540bps t 39.2%. In Beer Brazil, net revenue grew by 9.6% in the quarter. Vlumes were dwn 5.4%, affected by (i) a sft industry that declined arund 1.0%, accrding t Nielsen, as cnsumers cntinued t be pressured by the macrecnmic envirnment, and (ii) phasing, as price adjustments have been carried ut in 3Q17 when cmpared t 4Q16. Mre than ffsetting vlumes decline, NR/hl increased by a slid 15.8% and benefited frm the early timing f implementatin f ur price adjustments this year. In CSD&NANC Brazil, tp line grew by 10.2% in the quarter. Vlumes were slightly up (+0.5%), better than CSD industry that fell, accrding t Nielsen, arund 5.5%. NR/hl in CSD&NANC was up 9.6%, driven by ur revenue management initiatives implemented in 2Q17 and a psitive mix. Brazil cash COGS grew by 0.9% and, n a per hectliter basis, by 5.0%. Beer Brazil cash COGS/hl was slightly up (+0.8%). CSD&NANC Brazil cash COGS/hl grew by 26.3%, mainly impacted by a negative mix and sugar prices, that increased by almst 60% year ver year. Sugar represents arund 25% f CSD&NANC csts. Brazil cash SG&A was up 1.9%, belw inflatin, as a result f increased administrative expenses, partially ffset by lwer distributin and sales & marketing expenses, that benefited frm cst savings in ur nn-wrking mney and phasing and efficiency gains in ur wrking mney. Central America and the Caribbean (CAC). In 3Q17, EBITDA in CAC reached R$ millin (+31.6%), supprted by an increase in the tp line (+7.5%) and anther quarter f rbust EBITDA margin expansin (+840bps) t 40.8%. In US dllars, reprted EBITDA grew nce again mre than 35.0%. Year t date, tp line was up 6.6% and EBITDA up 22.7%, with margin expansin f 550bps t 38.3%. 3Q17 was anther quarter f remarkable results in the regin. Organic vlumes were flattish, affected by a severe hurricane seasn, while reprted vlumes increased by 23.8%, benefiting frm the recent swap f assets carried ut with ABI and ur peratins in Panama.

4 Page 4 The integratin with Panama is being executed as planned, with synergies and cst savings f mre than USD 10 millin captured year t date. Our business in the cuntry is als delivering a great perfrmance, with ur prtfli grwing at a fast pace, translating int market share gain. During 3Q17, we kept benefiting frm ur slid financial discipline, leveraging bth csts and expenses savings, leading t anther quarter f EBITDA margin expansin. Latin America Suth (LAS). In 3Q17, net revenue was up 21.3% while EBITDA in the regin reached R$ 1,101.8 millin (+22.8%), with an EBITDA margin expansin f 60bps t 45.3%. Year t date, tp line grew by 27.7% and EBITDA was up 24.2%, with margin cntractin f 120bps t 42.7%. Vlumes were up 4.5% in 3Q17, as the sftness f the CSD industry in the regin was mre than ffset by a strng perfrmance frm (i) beer in Argentina, that grew duble digits, supprted by the verall imprvement f the macrecnmic envirnment and favrable weather; (ii) Paraguay, due t the success f ur 340ml returnable glass bttle strategy, and (iii) ur high end prtfli, that cntinued t deliver a strng perfrmance, led by the glbal brands, that year t date grew duble digits in the regin. Our vlume perfrmance enabled us t achieve ur all-time high vlume mark fr beer in a third quarter in LAS. Whilst ur csts were still impacted by FX in Argentina, we were able t deliver EBITDA margin expansin, benefiting frm phasing f sales & marketing and administrative expenses. Canada. Tp line declined by 3.6% in the quarter with an EBITDA f R$ millin (-8.3%) and EBITDA margin cmpressin f 180bps t 34.6%. NR/hl was dwn 0.7%, driven by a negative package mix. Year t date, tp line was slightly dwn (-0.1%) while EBITDA increased by 1.8%, with margin expansin f 70bps t 33.5%. Vlumes were dwn 2.9% in 3Q17, driven by industry cntractin due t unfavrable weather and ne less selling day in the quarter. Despite the challenging envirnment, we maintained ur great market share mmentum, as ur main brands perfrmed particularly well, led by (i) Bud Light, that remained as the fastest grwing brand in in Canada, cupled with Bud Light Radler, a strng brand extensin meant fr a nn-traditinal beer ccasin, and (ii) Stella Artis, that is steadily grwing. Cash COGS in the quarter was affected by vlume absrptin as well as FX and cmmdity impacts, leading t EBITDA margin cmpressin.

5 Page 5 Outlk The third quarter marked an imprtant turn and the wrst is behind us. Brazil, ur largest market, is back n track. Ging frward, we expect t cntinue benefiting frm a healthy tp line and reduced csts in the cuntry, psting EBITDA grwth and margin recvery. Alng with that, we are cautiusly ptimistic with the beer industry perspective, mainly due t the reductin f unemplyment and increase f dispsable incme, what shuld als supprt us t cntinue delivering strng peratinal results. Regarding ur CSD&NANC business, in spite f the temprary pressures during this quarter, we will evlve ur cmmercial strategy, pushing urselves further t imprve ur perfrmance and resume grwth. In this cntext, we reiterate ur guidance that we expect cash COGS in Brazil t be flattish t lw single digit up in the secnd half f Finally, with respect t ur internatinal peratins, we will keep pursuing tp line and EBITDA margin pprtunities in CAC, remaining enthusiastic with the develpment f ur business in Panama. In LAS, we are cnfident in ur ability t deliver slid results and excited with the recvery f beer vlumes in Argentina. And, in Canada, we remain cmmitted t striving twards sustainable EBITDA grwth thrugh ur strng prtfli f brands and great market share mmentum.

6 Page 6 Ambev Cnslidated Incme Statement Cnslidated incme statement % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Net revenue 10, (214.2) 1, , % 9.6% Cst f gds sld (COGS) (4,215.5) (13.2) 84.6 (338.1) (4,482.1) 6.3% 8.1% Grss prfit 6, (129.6) , % 10.5% Selling, general and administrative (SG&A) (3,457.0) (35.6) 31.9 (38.8) (3,499.5) 1.2% 1.1% Other perating incme (4.1) (7.5) (76.5) % -22.4% Nrmalized perating incme (nrmalized EBIT) 3, (105.2) , % 17.3% Exceptinal items abve EBIT (15.1) (1.1) (0.9) (3.4) (20.5) 35.7% 22.6% Net finance results (722.6) (674.9) -6.6% Share f results f assciates (9.4) (4.5) -51.7% Incme tax expense (2,797.8) nm Prfit 3, % Attributable t Ambev hlders 3, % Attributable t nn-cntrlling interests % Nrmalized prfit 3, , % Attributable t Ambev hlders 3, , % Nrmalized EBITDA 3, (128.1) , % 15.8% (0.001) Cnslidated incme statement % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Net revenue 32, (2,311.2) 2, , % 7.5% Cst f gds sld (COGS) (12,070.4) (62.8) (1,772.6) (13,053.5) 8.1% 14.9% Grss prfit 20, (1,458.9) , % 3.2% Selling, general and administrative (SG&A) (10,546.6) (156.4) (287.8) (10,351.8) -1.8% 2.8% Other perating incme 1, (7.8) (295.7) % -27.7% Nrmalized perating incme (nrmalized EBIT) 10, (827.7) , % 0.5% Exceptinal items abve EBIT (43.6) (7.2) 9.1 (39.6) (81.3) 86.5% 92.0% Net finance results (2,793.8) (2,246.3) -19.6% Share f results f assciates (1.5) 1.8 nm Incme tax expense (3,356.8) nm Prfit 8, , % Attributable t Ambev hlders 7, , % Attributable t nn-cntrlling interests % Nrmalized prfit 5, , % Attributable t Ambev hlders 7, , % Nrmalized EBITDA 13, (975.9) , % 1.5%

7 Page 7 Ambev Cnslidated Results The cmbinatin f Ambev s peratins in Latin America Nrth (LAN), Latin America Suth (LAS) and Canada s business units, eliminating intercmpany transactins, cmprises ur cnslidated financial statements. The figures shwn belw are n an as-reprted basis. Vlume (millin hectliters) Q14 3Q15 3Q16 3Q17 Net revenues per HL (R$) COGS per HL (R$) Q14 3Q15 3Q16 3Q Q14 3Q15 3Q16 3Q17 Nrmalized EBITDA (R$ MM) Nrmalized EBITDA margin (%) , , , , % 50% 40% 47.5% 46.5% 38.2% 40.1% % Q14 3Q15 3Q16 3Q17 20% 10% 0% 3Q14 3Q15 3Q16 3Q17

8 Page 8 Ambev Cnslidated We delivered during the quarter R$ 11,362.3 millin f net revenue (+9.6%) and R$ 4,551.9 millin f nrmalized EBITDA (+15.8%). Year t date, ur net revenue ttaled R$ 32,872.1 millin (+7.5%) while ur EBITDA was f R$ 12,851.4 millin (+1.5%). Ambev results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 38, (771.8) 38, % -2.0% Net revenue 10, (214.2) 1, , % 9.6% Net revenue/hl (0.2) (5.6) % 11.7% COGS (4,215.5) (13.2) 84.6 (338.1) (4,482.1) 6.3% 8.1% COGS/hl (108.5) (11.0) (116.6) 7.4% 10.2% COGS excl. deprec.&amrt. (3,677.1) (10.9) 68.5 (244.9) (3,864.5) 5.1% 6.8% COGS/hl excl. deprec. &amrt (94.7) (8.3) (100.6) 6.2% 8.8% Grss prfit 6, (129.6) , % 10.5% Grss margin 59.8% 60.6% 80 bps 60 bps SG&A excl. deprec.&amrt. (3,147.9) (31.1) 25.2 (46.1) (3,199.9) 1.7% 1.5% SG&A deprec.&amrt. (309.2) (4.5) (299.6) -3.1% -2.4% SG&A ttal (3,457.0) (35.6) 31.9 (38.8) (3,499.5) 1.2% 1.1% Other perating incme (4.1) (7.5) (76.5) % -22.4% Nrmalized EBIT 3, (105.2) , % 17.3% Nrmalized EBIT margin 30.1% 32.0% 190 bps 210 bps Nrmalized EBITDA 3, (128.1) , % 15.8% Nrmalized EBITDA margin 38.2% 40.1% 190 bps 220 bps - (1.1) - (0.6) Ambev results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 114, , (191.8) 115, % -0.2% Net revenue 32, (2,311.2) 2, , % 7.5% Net revenue/hl (20.0) % 7.6% COGS (12,070.4) (62.8) (1,772.6) (13,053.5) 8.1% 14.9% COGS/hl (105.5) (15.5) (113.1) 7.3% 14.9% COGS excl. deprec.&amrt. (10,418.1) (54.2) (1,607.7) (11,322.8) 8.7% 15.7% COGS/hl excl. deprec. &amrt (91.0) (14.1) (98.1) 7.8% 15.6% Grss prfit 20, (1,458.9) , % 3.2% Grss margin 62.8% 60.3% -250 bps -250 bps SG&A excl. deprec.&amrt. (9,603.7) (140.2) (307.9) (9,465.7) -1.4% 3.3% SG&A deprec.&amrt. (942.9) (16.2) (886.1) -6.0% -2.2% SG&A ttal (10,546.6) (156.4) (287.8) (10,351.8) -1.8% 2.8% Other perating incme 1, (7.8) (295.7) % -27.7% Nrmalized EBIT 10, (827.7) , % 0.5% Nrmalized EBIT margin 33.5% 31.1% -240 bps -220 bps Nrmalized EBITDA 13, (975.9) , % 1.5% Nrmalized EBITDA margin 41.5% 39.1% -240 bps -240 bps

9 Page 9 Latin America Nrth (LAN) Our LAN regin includes Beer Brazil, CSD&NANC Brazil and Central America and the Caribbean (CAC) peratins. LAN EBITDA ttaled R$ 2,851.4 millin (+19.5%) in the quarter and R$ 8,202.5 millin (-6.2%) in the first nine mnths f LAN results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 28, (1,020.6) 27, % -3.6% Net revenue 6, (34.3) , % 9.4% Net revenue/hl (1.2) % 13.2% COGS (2,778.3) (78.2) 13.6 (69.0) (2,911.9) 4.8% 2.5% COGS/hl (98.6) (0.7) 0.5 (6.1) (104.9) 6.4% 6.2% COGS excl. deprec.&amrt. (2,367.7) (70.2) 9.6 (31.0) (2,459.4) 3.9% 1.3% COGS/hl excl. deprec. &amrt (84.0) (0.7) 0.3 (4.2) (88.6) 5.5% 5.0% Grss prfit 3, (20.7) , % 14.6% Grss margin 56.9% 59.5% 260 bps 270 bps SG&A excl. deprec.&amrt. (2,034.2) (81.1) 7.7 (23.9) (2,131.5) 4.8% 1.2% SG&A deprec.&amrt. (226.5) (9.8) (0.2) 23.5 (212.9) -6.0% -10.4% SG&A ttal (2,260.7) (90.9) 7.5 (0.4) (2,344.4) 3.7% 0.0% Other perating incme (4.0) (6.0) (83.7) % -24.7% Nrmalized EBIT 1, (19.1) , % 25.8% Nrmalized EBIT margin 27.0% 30.4% 340 bps 410 bps Nrmalized EBITDA 2, (23.0) , % 19.5% Nrmalized EBITDA margin 36.9% 39.6% 270 bps 350 bps - LAN results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 83, , (1,412.1) 83, % -1.7% Net revenue 20, (388.2) , % 2.6% Net revenue/hl (4.6) % 4.3% COGS (7,767.6) (241.8) (830.6) (8,671.6) 11.6% 10.4% COGS/hl (92.9) (0.9) 2.0 (11.5) (103.2) 11.2% 12.2% COGS excl. deprec.&amrt. (6,522.0) (213.5) (780.0) (7,371.8) 13.0% 11.6% COGS/hl excl. deprec. &amrt (78.0) (0.9) 1.7 (10.6) (87.8) 12.6% 13.5% Grss prfit 12, (219.8) (295.8) 12, % -2.3% Grss margin 61.6% 58.7% -290 bps -300 bps SG&A excl. deprec.&amrt. (6,037.5) (273.2) (6,176.3) 2.3% -0.9% SG&A deprec.&amrt. (680.9) (31.6) (660.1) -3.1% -6.0% SG&A ttal (6,718.4) (304.7) (6,836.4) 1.8% -1.4% Other perating incme 1, (4.8) (369.3) % -32.9% Nrmalized EBIT 6, (136.3) (566.6) 6, % -8.2% Nrmalized EBIT margin 34.0% 29.7% -430 bps -360 bps Nrmalized EBITDA 8, (170.9) (557.6) 8, % -6.2% Nrmalized EBITDA margin 43.5% 39.1% -440 bps -380 bps

10 Page 10 Ambev Brazil We delivered R$ 2,377.3 millin (+17.4%) f Nrmalized EBITDA in Brazil in the quarter, with an EBITDA margin f 39.4% (+260bps). Net revenue was up 9.7% in the quarter, with a vlume decline f 4.0% mre than ffset by a NR/hl increase f 14.2%. Cash COGS was up 0.9% while, n a per hectliter basis, up 5.0%. Cash SG&A grew by 1.9% in the quarter. Year t date, ur tp line was up 2.0%, cash COGS up 13.6%, cash SG&A up 0.2% and EBITDA dwn 10.4%, with an EBITDA margin cntractin f 540bps. Ambev Brazil results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 25, (1,020.3) 24, % -4.0% Net revenue 5, , % 9.7% Net revenue/hl % 14.2% COGS (2,362.2) - - (34.5) (2,396.7) 1.5% 1.5% COGS/hl (92.0) - - (5.2) (97.2) 5.7% 5.7% COGS excl. deprec.&amrt. (2,000.9) - - (17.4) (2,018.3) 0.9% 0.9% COGS/hl excl. deprec. &amrt (77.9) - - (3.9) (81.8) 5.0% 5.0% Grss prfit 3, , % 15.8% Grss margin 57.1% 60.3% 320 bps 320 bps SG&A excl. deprec.&amrt. (1,816.0) - - (35.1) (1,851.2) 1.9% 1.9% SG&A deprec.&amrt. (204.8) (185.1) -9.6% -9.6% SG&A ttal (2,020.8) - - (15.4) (2,036.3) 0.8% 0.8% Other perating incme (126.5) % -37.2% Nrmalized EBIT 1, , % 24.4% Nrmalized EBIT margin 26.5% 30.1% 360 bps 360 bps Nrmalized EBITDA 2, , % 17.4% Nrmalized EBITDA margin 36.8% 39.4% 260 bps 260 bps - Ambev Brazil results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 76, (1,476.9) 75, % -1.9% Net revenue 17, , % 2.0% Net revenue/hl % 4.0% COGS (6,439.4) - - (763.7) (7,203.1) 11.9% 11.9% COGS/hl (84.0) - - (11.8) (95.9) 14.1% 14.1% COGS excl. deprec.&amrt. (5,366.4) - - (731.3) (6,097.7) 13.6% 13.6% COGS/hl excl. deprec. &amrt (70.0) - - (11.1) (81.1) 15.9% 15.9% Grss prfit 10, (423.6) 10, % -3.9% Grss margin 62.8% 59.2% -360 bps -360 bps SG&A excl. deprec.&amrt. (5,336.8) - - (13.3) (5,350.0) 0.2% 0.2% SG&A deprec.&amrt. (609.8) (562.2) -7.8% -7.8% SG&A ttal (5,946.6) (5,912.3) -0.6% -0.6% Other perating incme 1, (399.3) % -35.8% Nrmalized EBIT 6, (788.7) 5, % -13.1% Nrmalized EBIT margin 34.9% 29.8% -510 bps -510 bps Nrmalized EBITDA 7, (803.8) 6, % -10.4% Nrmalized EBITDA margin 44.6% 39.2% -540 bps -540 bps

11 Page 11 Beer Brazil In 3Q17, EBITDA fr Beer Brazil was R$ 2,187.4 millin (+25.7%) with an EBITDA margin expansin f 540bps t 42.2%. Tp line grew by 9.6% in the quarter. Vlumes were dwn 5.4%, impacted by (i) a sft industry that declined arund 1.0%, accrding t Nielsen, as cnsumers cntinued t be pressured by the macrecnmic envirnment, and (ii) phasing, as price adjustments have been carried ut in 3Q17 when cmpared t 4Q16. Mre than ffsetting vlumes decline, NR/hl increased by a slid 15.8% and benefited frm the early timing f implementatin f ur price adjustments this year. Cash COGS/hl was up 0.8% in the quarter, while cash SG&A was dwn 1.4%. Year t date, Beer Brazil tp line was up 2.4%, cash COGS up 11.8%, cash SG&A dwn 1.7% and EBITDA dwn 5.8%, with an EBITDA margin cntractin f 370bps. Beer Brazil results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 19, (1,052.2) 18, % -5.4% Net revenue 4, , % 9.6% Net revenue/hl % 15.8% COGS (1,962.0) (1,913.5) -2.5% -2.5% COGS/hl (100.4) - - (3.1) (103.5) 3.1% 3.1% COGS excl. deprec.&amrt. (1,650.8) (1,573.8) -4.7% -4.7% COGS/hl excl. deprec. &amrt (84.5) - - (0.6) (85.1) 0.8% 0.8% Grss prfit 2, , % 18.1% Grss margin 58.6% 63.1% 450 bps 450 bps SG&A excl. deprec.&amrt. (1,612.2) (1,589.5) -1.4% -1.4% SG&A deprec.&amrt. (176.7) - - (0.9) (177.6) 0.5% 0.5% SG&A ttal (1,788.9) (1,767.1) -1.2% -1.2% Other perating incme (106.1) % -39.5% Nrmalized EBIT 1, , % 33.4% Nrmalized EBIT margin 26.4% 32.2% 580 bps 580 bps Nrmalized EBITDA 1, , % 25.7% Nrmalized EBITDA margin 36.8% 42.2% 540 bps 540 bps - 0.0% - 0.0% 0.0% 0.0% Beer Brazil results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 57, (600.0) 56, % -1.1% Net revenue 14, , % 2.4% Net revenue/hl % 3.5% COGS (5,195.4) - - (553.3) (5,748.7) 10.6% 10.6% COGS/hl (91.0) - - (10.8) (101.8) 11.8% 11.8% COGS excl. deprec.&amrt. (4,283.8) - - (503.5) (4,787.3) 11.8% 11.8% COGS/hl excl. deprec. &amrt (75.1) - - (9.7) (84.8) 12.9% 12.9% Grss prfit 9, (194.4) 9, % -2.0% Grss margin 64.8% 61.9% -290 bps -290 bps SG&A excl. deprec.&amrt. (4,703.8) (4,623.4) -1.7% -1.7% SG&A deprec.&amrt. (515.3) - - (0.3) (515.6) 0.1% 0.1% SG&A ttal (5,219.1) (5,139.0) -1.5% -1.5% Other perating incme (324.2) % -36.5% Nrmalized EBIT 5, (438.5) 4, % -8.4% Nrmalized EBIT margin 35.4% 31.7% -370 bps -370 bps Nrmalized EBITDA 6, (388.5) 6, % -5.8% Nrmalized EBITDA margin 45.1% 41.4% -370 bps -370 bps

12 Page 12 CSD & NANC Brazil In CSD&NANC Brazil, EBITDA was R$ millin (-33.3%) in 3Q16, with an EBITDA margin f 22.5% (- 1460bps). Net revenue was up 10.2% in the quarter. Vlumes grew by 0.5%, while the CSD industry declined arund 5.5%, accrding t Nielsen, as cnsumers cntinued t be pressured by a lw real dispsable incme trading dwn t lw cst pwder juices r even t tap water. NR/hl increased by 9.6% driven by ur revenue management initiatives implemented in 2Q17 and a psitive mix. Cash COGS/hl increased by 26.3%, mainly explained by higher cmmdities prices, especially sugar, and negative mix. Year t date, CSD&NANC Brazil tp line was dwn 0.7%, cash COGS up 21.0%, cash SG&A up 14.8% and EBITDA dwn 38.6%, with an EBITDA margin cntractin f 1600bps. CSD&Nanc Brazil results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 6, , % 0.5% Net revenue % 10.2% Net revenue/hl % 9.6% COGS (400.2) - - (83.0) (483.2) 20.8% 20.8% COGS/hl (65.1) - - (13.1) (78.2) 20.1% 20.1% COGS excl. deprec.&amrt. (350.1) - - (94.4) (444.5) 27.0% 27.0% COGS/hl excl. deprec. &amrt (56.9) - - (15.0) (71.9) 26.3% 26.3% Grss prfit (4.9) % -1.3% Grss margin 47.8% 42.8% -500 bps -500 bps SG&A excl. deprec.&amrt. (203.8) - - (57.9) (261.7) 28.4% 28.4% SG&A deprec.&amrt. (28.1) (7.4) -73.5% -73.5% SG&A ttal (231.9) - - (37.3) (269.2) 16.1% 16.1% Other perating incme (20.4) % -28.6% Nrmalized EBIT (62.6) % -30.4% Nrmalized EBIT margin 26.9% 17.0% -990 bps -990 bps Nrmalized EBITDA (94.6) % -33.3% Nrmalized EBITDA margin 37.1% 22.5% bps bps - 0.0% - 0.0% 0.0% 0.0% CSD&Nanc Brazil results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 19, (876.9) 18, % -4.5% Net revenue 2, (18.8) 2, % -0.7% Net revenue/hl % 3.9% COGS (1,244.0) - - (210.4) (1,454.4) 16.9% 16.9% COGS/hl (63.6) - - (14.3) (77.9) 22.4% 22.4% COGS excl. deprec.&amrt. (1,082.6) - - (227.8) (1,310.4) 21.0% 21.0% COGS/hl excl. deprec. &amrt (55.4) - - (14.8) (70.2) 26.7% 26.7% Grss prfit 1, (229.2) 1, % -17.3% Grss margin 51.5% 42.9% -860 bps -860 bps SG&A excl. deprec.&amrt. (633.0) - - (93.7) (726.6) 14.8% 14.8% SG&A deprec.&amrt. (94.5) (46.6) -50.6% -50.6% SG&A ttal (727.4) - - (45.8) (773.3) 6.3% 6.3% Other perating incme (75.1) % -33.2% Nrmalized EBIT (350.1) % -42.6% Nrmalized EBIT margin 32.0% 18.5% bps bps Nrmalized EBITDA 1, (415.3) % -38.6% Nrmalized EBITDA margin 42.0% 26.0% bps bps

13 Page 13 Central America and the Caribbean (CAC) Our peratins in CAC delivered an EBITDA f R$ millin (+31.6%) in the quarter, with an EBITDA margin f 40.8% (+840bps). Tp line increased by 7.5% in 3Q17, explained by flattish vlumes, driven by a severe hurricane seasn in the regin cupled with a NR/hl increase f 6.1%. On a reprted basis, vlumes were up 23.8%, benefitting frm the recent swap f assets carried ut with ABI and ur peratins in Panama. EBITDA perfrmance was als driven by ur slid cst management discipline, with cash SG&A declining by 5.2%, due t csts and expenses savings and a reductin in sales & marketing and administrative expenditures. Year t date, CAC tp line was up 6.6%, cash COGS up 4.2%, cash SG&A dwn 9.9% and EBITDA up 22.7%, with an EBITDA margin expansin f 550bps. The scpe change in CAC refers t the beginning f ur peratins in Panama as a result f the swap f assets carried ut with ABI n December 31 st, CAC results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ttal ('000 hl) 2, (0.3) 3, % 0.0% Net revenue (34.3) , % 7.5% Net revenue/hl (11.7) (11.1) % 6.1% COGS (416.1) (78.2) 13.6 (34.5) (515.2) 23.8% 8.3% COGS/hl (166.7) (11.2) (166.7) 0.0% 6.7% COGS excl. deprec.&amrt. (366.9) (70.2) 9.6 (13.6) (441.1) 20.2% 3.7% COGS/hl excl. deprec. &amrt (146.9) (4.4) (142.7) -2.9% 3.0% Grss prfit (20.7) % 6.9% Grss margin 55.7% 55.7% bps -30 bps SG&A excl. deprec.&amrt. (218.1) (81.1) (280.3) 28.5% -5.2% SG&A deprec.&amrt. (21.7) (9.8) (0.2) 3.8 (27.9) 28.4% -17.5% SG&A ttal (239.8) (90.9) (308.1) 28.5% -6.3% Other perating incme/expenses (0.9) (4.0) (6.0) nm nm Nrmalized EBIT (19.1) % 33.3% Nrmalized EBIT margin 30.1% 32.0% 190 bps 720 bps Nrmalized EBITDA (23.0) % 31.6% Nrmalized EBITDA margin 37.6% 40.8% 320 bps 840 bps (0.06) CAC results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ttal ('000 hl) 7, , , % 0.9% Net revenue 2, (388.2) , % 6.6% Net revenue/hl (14.0) (43.9) % 4.6% COGS (1,328.3) (241.8) (66.9) (1,468.5) 10.6% 5.0% COGS/hl (188.7) (6.2) (166.0) -12.0% 3.3% COGS excl. deprec.&amrt. (1,155.6) (213.5) (48.7) (1,274.2) 10.3% 4.2% COGS/hl excl. deprec. &amrt (164.2) (4.4) (144.0) -12.3% 2.7% Grss prfit 1, (219.8) , % 7.9% Grss margin 54.8% 56.2% 140 bps 70 bps SG&A excl. deprec.&amrt. (700.7) (273.2) (826.3) 17.9% -9.9% SG&A deprec.&amrt. (71.1) (31.6) 9.7 (4.9) (97.8) 37.5% 6.8% SG&A ttal (771.8) (304.7) (924.1) 19.7% -8.3% Other perating incme/expenses (4.8) nm nm Nrmalized EBIT (136.3) % 26.4% Nrmalized EBIT margin 28.7% 29.6% 90 bps 530 bps Nrmalized EBITDA 1, (170.9) , % 22.7% Nrmalized EBITDA margin 37.0% 38.3% 130 bps 550 bps

14 Page 14 Latin America Suth (LAS) LAS EBITDA grew 22.8% in 3Q17, reaching R$ 1,101.8 millin, with an EBITDA margin f 45.3% (+60bps). Vlumes grew by 4.5%, as the sftness f the CSD industry in the regin was mre than ffset by a strng perfrmance frm (i) beer in Argentina, that grew duble digits, supprted by the verall imprvement f the macrecnmic envirnment and favrable weather; (ii) Paraguay, due t the success f ur 340ml returnable glass bttle strategy, and (iii) ur high end prtfli, led by the glbal brands, that year t date grew duble digits in the regin. Tp line was up 21.3% in the quarter and NR/hl rse by 16.1%. Cash COGS/hl grew by 23.4%, mainly driven by inflatin and negative currency impact. Cash SG&A increased by 7.4%, belw inflatin, benefiting frm phasing f sales & marketing and administrative expenses. Year t date, LAS tp line was up 27.7%, cash COGS up 39.8%, cash SG&A up 21.7% and EBITDA up 24.2%, with an EBITDA margin cntractin f 120bps. The scpe change in LAS refers t the terminatin f ur peratins in Clmbia, Peru and Ecuadr result f the swap f assets carried ut with ABI n December 31 st, LAS results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 7,705.3 (227.4) , % 4.5% Net revenue 2,272.8 (95.8) (204.8) , % 21.3% Net revenue/hl (3.8) (26.2) % 16.1% COGS (850.9) (244.2) (959.7) 12.8% 31.1% COGS/hl (110.4) (26.8) (122.9) 11.3% 25.5% COGS excl. deprec.&amrt. (756.7) (201.7) (840.8) 11.1% 28.9% COGS/hl excl. deprec. &amrt (98.2) (21.8) (107.6) 9.6% 23.4% Grss prfit 1,421.8 (30.8) (134.4) , % 15.7% Grss margin 62.6% 60.6% -200 bps -290 bps SG&A excl. deprec.&amrt. (549.5) (36.9) (498.7) -9.3% 7.4% SG&A deprec.&amrt. (64.4) (52.9) -17.8% -3.0% SG&A ttal (613.9) (35.2) (551.6) -10.2% 6.3% Other perating incme/expenses 7.1 (0.0) (1.4) % 10.4% Nrmalized EBIT (93.6) % 21.9% Nrmalized EBIT margin 35.9% 38.2% 230 bps 20 bps Nrmalized EBITDA (110.0) , % 22.8% Nrmalized EBITDA margin 42.8% 45.3% 250 bps 60 bps - LAS results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 22,924.1 (627.2) - 1, , % 6.0% Net revenue 7,060.0 (265.3) (1,391.1) 1, , % 27.7% Net revenue/hl (3.2) (58.9) % 20.5% COGS (2,623.3) (949.4) (2,880.8) 9.8% 38.9% COGS/hl (114.4) (34.0) (121.9) 6.5% 31.1% COGS excl. deprec.&amrt. (2,319.2) (859.3) (2,563.6) 10.5% 39.8% COGS/hl excl. deprec. &amrt (101.2) (30.9) (108.5) 7.2% 31.9% Grss prfit 4,436.8 (83.3) (881.2) , % 21.4% Grss margin 62.8% 60.5% -230 bps -320 bps SG&A excl. deprec.&amrt. (1,730.4) (345.3) (1,624.1) -6.1% 21.7% SG&A deprec.&amrt. (205.5) (23.1) (175.9) -14.4% 12.2% SG&A ttal (1,935.9) (368.4) (1,800.0) -7.0% 20.7% Other perating incme/expenses (36.3) 0.8 (2.5) % % Nrmalized EBIT 2, (531.8) , % 24.3% Nrmalized EBIT margin 34.9% 35.9% 100 bps -100 bps Nrmalized EBITDA 2, (626.4) , % 24.2% Nrmalized EBITDA margin 42.1% 42.7% 60 bps -120 bps

15 Page 15 Canada In Canada, EBITDA was R$ millin, with an EBITDA margin cmpressin f 180bps, t 34.6%. Vlumes were dwn 2.9%, driven by industry cntractin due t unfavrable weather and ne less selling day in the quarter. Despite the challenging envirnment, we maintained ur great market share mmentum in the quarter, as ur main brands perfrmed particularly well, led by (i) Bud Light, that remained as the fastest grwing brand in Canada, cupled with Bud Light Radler, a strng brand extensin meant fr a nn-traditinal beer ccasin, and (ii) Stella Artis, that is steadily grwing. Tp line was dwn 3.6%, while NR/hl decreased by 0.7%, impacted by a negative package mix. Cash COGS/hl was up 5.2%, mainly affected by vlume absrptin as well as FX and cmmdity impacts, while cash SG&A decreased by 2.6%. Year t date, Canada tp line was flattish (-0.1%), cash COGS dwn 2.0%, cash SG&A up 1.0% and EBITDA up 1.8%, with an EBITDA margin expansin f 70bps. Canada results % As % R$ millin 3Q16 Scpe Translatin Grwth 3Q17 Reprted Organic Vlume ('000 hl) 2, (84.2) 2, % -2.9% Net revenue 1, (63.0) 1, % -3.6% Net revenue/hl (4.4) % -0.7% COGS (586.2) (24.8) (610.5) 4.1% 4.2% COGS/hl (198.8) (14.5) (213.2) 7.2% 7.3% COGS excl. deprec.&amrt. (552.7) (12.2) (564.3) 2.1% 2.2% COGS/hl excl. deprec. &amrt (187.4) (9.8) (197.0) 5.1% 5.2% Grss prfit 1, (87.9) 1, % -7.4% Grss margin 66.9% 64.7% -220 bps -270 bps SG&A excl. deprec.&amrt. (564.1) - (20.4) 14.7 (569.8) 1.0% -2.6% SG&A deprec.&amrt. (18.3) (18.0) (33.7) 84.0% 98.3% SG&A ttal (582.5) - (17.8) (3.3) (603.5) 3.6% 0.6% Other perating incme/expenses (4.6) - (0.1) % % Nrmalized EBIT (84.7) % -14.2% Nrmalized EBIT margin 33.7% 30.0% -370 bps -370 bps Nrmalized EBITDA (54.1) % -8.3% Nrmalized EBITDA margin 36.6% 34.6% -200 bps -180 bps - Canada results % As % R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 7, (112.9) 7, % -1.4% Net revenue 5, (531.9) (3.2) 4, % -0.1% Net revenue/hl (0.1) (68.4) % 1.4% COGS (1,679.5) (2.9) (1,501.0) -10.6% -0.4% COGS/hl (213.1) (0.1) 22.4 (2.1) (192.9) -9.4% 1.0% COGS excl. deprec.&amrt. (1,576.9) (2.8) (1,387.3) -12.0% -2.0% COGS/hl excl. deprec. &amrt (200.1) (0.1) (178.3) -10.9% -0.6% Grss prfit 3, (357.9) 4.2 3, % 0.1% Grss margin 67.2% 67.3% 10 bps 10 bps SG&A excl. deprec.&amrt. (1,835.8) (3.9) (18.4) (1,665.3) -9.3% 1.0% SG&A deprec.&amrt. (56.5) (0.0) (50.1) -11.3% -1.0% SG&A ttal (1,892.3) (4.0) (17.9) (1,715.4) -9.3% 0.9% Other perating incme/expenses (16.8) 0.5 (0.4) % % Nrmalized EBIT 1,526.3 (0.6) (159.6) 7.2 1, % 0.5% Nrmalized EBIT margin 29.8% 29.9% 10 bps 20 bps Nrmalized EBITDA 1,685.3 (0.5) (178.6) , % 1.8% Nrmalized EBITDA margin 32.9% 33.5% 60 bps 70 bps

16 Page 16 Other perating incme/(expense) Other perating incme ttaled R$ millin in 3Q17 (-22.4%), mainly driven by gvernment grants related t State VAT lng-term tax incentives that were dwn year ver year due t the expiratin f VAT Gvernment Grants Agreements in 4Q16. Other perating incme/(expenses) 3Q16 3Q17 YTD16 YTD17 R$ millin Gvernment grants/npv f lng term fiscal incentives (Additins t)/reversals f prvisins (18.3) (20.2) (47.1) (47.9) Net gain n dispsal f prperty, plant and equipment and intangible assets Net ther perating incme/(expenses) , Exceptinalitems During the third quarter we recrded an expense f R$ 20.5 millin in exceptinal items (as cmpared t R$ 15.1 millin in 3Q16). Exceptinal items 3Q16 3Q17 YTD16 YTD17 R$ millin Restructuring (14.3) (21.3) (34.7) (81.0) Csts f new acquisitin (0.8) (8.8) (1.1) Other exceptinal items (15.1) (20.5) (43.6) (81.3)

17 Page 17 Net finance results Net finance results ttaled an expense f R$ millin in 3Q17, including the exceptinal financial expense f R$ millin paid in cnnectin with the Brazilian Federal Tax Regularizatin Prgram (PERT), as detailed in the Prvisin fr incme tax & scial cntributin sectin (page 18). Excluding such exceptinal financial expense, net finance result ttaled an expense f R$ millin (cmpared t a R$ millin expense in 3Q16), being explained by: (i) Interest incme f R$ millin, driven by ur cash balance, mainly in Brazilian reais, US dllars and Canadian dllars; (ii) Interest expenses f R$ millin, that include a nn-cash accrual f arund R$ 145 millin related t the put ptin assciated with ur investment in the Dminican Republic; (iii) R$ 33.1 millin f lsses n derivative instruments, mainly related t the carry cst f ur FX hedges, primarily linked t ur COGS expsure in Brazil and Argentina. Lsses n derivative instruments have declined 88.4%, as a cnsequence f lwer carry csts and psitive results f equity swaps; (iv) Lsses n nn-derivative instruments f R$ 51.1 millin, mainly related t FX translatin; (v) Taxes n financial transactins f R$ 43.2 millin; and (vi) R$ millin f ther financial expenses. Net finance results 3Q16 3Q17 YTD16 YTD17 R$ millin Interest incme Interest expenses (408.4) (361.9) (1,127.3) (1,153.8) Gains/(lsses) n derivative instruments (287.2) (33.1) (1,169.7) (421.1) Gains/(lsses) n nn-derivative instruments 1.5 (51.1) (282.6) (230.8) Taxes n financial transactins (29.0) (43.2) (119.6) (114.8) Other financial incme/(expenses), net (138.7) (151.9) (522.4) (518.7) Exceptinal financial expenses (141.0) (141.0) Net finance results (722.6) (674.9) (2,793.8) (2,246.3) As f September 30 th, 2017 we held a net cash psitin f R$ 5,018.9 (up frm R$ 2,763.3 millin as f December 31 st, 2016). Cnslidated debt crrespnded t R$ 3,329.6 millin whereas cash and cash equivalents less bank verdrafts ttaled R$ 8,340.7 millin, up frm R$ 7,876.8 millin as f December 31 st, December 31 st 2016 September 30 th 2017 Debt Breakdwn Current Nn-current Ttal Current Nn-current Ttal Lcal Currency , , ,160.1 Freign Currency 2, , , ,169.6 Cnslidated Debt 3, , , , , ,329.6 Cash and Cash Equivalents less Bank Overdrafts 7, ,340.7 Current Investment Securities Net Debt/ (Cash) (2,763.3) (5,018.9)

18 Page 18 Prvisin fr incme tax & scial cntributin The weighted nminal tax rate in the quarter was 27.1%, similar t 26.9% f 3Q16. Effective tax rate was up in the quarter frm -32.4% t 95.3%, as we nt nly faced a tugh cmparable in 3Q16, but were als impacted by an exceptinal tax adjustment f R$ 2,974.1 millin linked t the Brazilian Federal Tax Regularizatin Prgram (PERT). As annunced n September 29 th, 2017, the Cmpany adhered t an special tax regularizatin prgram, invlving tax cntingencies that were under dispute, including cntingencies related t crprate incme tax. The ttal amunt t be paid is apprximately R$ 3.5 billin, f which apprximately R$ 1.0 billin will be paid in 2017 and the remainder will be paid in 145 mnthly installments starting frm January 2018, plus interests. Adjusted by this exceptinal tax adjustment, the effective tax rate was f -6.0%, driven by higher interest n sharehlders equity benefit. Incme tax and scial cntributin R$ millin 3Q16 3Q17 YTD16 YTD17 Prfit befre tax 2, , , ,907.9 Adjustment n taxable basis Nn-taxable net financial and ther incme (50.4) (74.6) (313.9) (242.6) Gverment grants (VAT) (375.5) (417.2) (1,099.6) (1,266.7) Share f results f assciates (1.8) Expenses nt deductible (93.8) Freign prfits taxed in Brazil (156.1) (134.5) 1, , , ,454.6 Aggregated weighted nminal tax rate 26.9% 27.1% 29.6% 27.8% Taxes nminal rate (468.5) (739.0) (2,320.5) (1,793.3) Adjustment n tax expense Tax benefit - interest n sharehlders' equity , ,649.0 Tax benefit - amrtizatin n tax bks Exceptinal item - Brazilian Federal Tax Regularizatin Prgram (2,974.1) (2,974.1) Other tax adjustments 1,179.5 (126.7) 1,278.7 (367.4) Incme tax and scial cntributin expense (2,797.8) (3,356.8) Effective tax rate -32.4% 95.3% -2.7% 42.4% Nrmalized effective tax rate -32.4% -6.0% -2.7% 4.8% Sharehlding structure The table belw summarizes Ambev S.A. s sharehlding structure as f September 30 th, Ambev S.A.'s sharehlding structure ON %Outs Anheuser-Busch InBev 9,726,265, % FAHZ 1,605,713, % Market 4,375,838, % Outstanding 15,707,817, % Treasury 9,798,254 TOTAL 15,717,615,419 Free flat BM&FBvespa 3,051,565, % Free flat NYSE 1,324,272, %

19 Page 19 Recnciliatin between nrmalized EBITDA & prfit Bth Nrmalized EBITDA and EBIT are measures used by Ambev s management t measure the Cmpany s perfrmance. Nrmalized EBITDA is calculated excluding frm Prfit the fllwing effects: (i) Nn-cntrlling interest, (ii) Incme Tax expense, (iii) Share f results f assciates, (iv) Net finance results, (v) Special items, and (vi) Depreciatin & Amrtizatin. Nrmalized EBITDA and EBIT are nt accunting measures under accunting practices in Brazil, IFRS r the United States f America (US GAAP) and shuld nt be cnsidered as an alternative t Prfit as a measure f peratinal perfrmance r an alternative t Cash Flw as a measure f liquidity. Nrmalized EBITDA and EBIT d nt have a standard calculatin methd and Ambev s definitin f Nrmalized EBITDA and EBIT may nt be cmparable t that f ther cmpanies. Recnciliatin - Prfit t EBITDA 3Q16 3Q17 YTD16 YTD17 Prfit - Ambev hlders 3, , ,212.5 Nn-cntrlling interest Incme tax expense (778.3) 2,797.8 (215.4) 3,356.8 Prfit befre taxes 2, , , ,907.9 Share f results f assciates (1.8) Net finance results , ,246.3 Exceptinal items Nrmalized EBIT 3, , , ,233.8 Depreciatin & amrtizatin - ttal , ,617.6 Nrmalized EBITDA 3, , , ,851.4

20 Page 20 Q Earnings Cnference Call Speakers: Language: Date: Time: Bernard Paiva Chief Executive Officer Ricard Rittes Chief Financial and Investr Relatins Officer English Octber 26 th, 2017 (Thursday) 13:00 (Brasília time) 11:00 (EST) Phne number: US participants + 1 (844) Internatinal participants + 1 (412) Cnference ID: Ambev Please call 15 minutes prir t the beginning f the cnference call. Webcast: The cnference call will als be transmitted live thrugh the Internet, available n Ambev s website: Playback: The cnference call replay thrugh internet will be available ne hur after cnclusin at Ambev s website at the same link abve. Fr Playback thrugh telephne: participants calling frm USA: +1 (877) / participants calling frm ther cuntries: +1 (412) / Cde: enter "1" t start the playback. Fr additinal infrmatin, please cntact the Investr Relatins team: Nicle Brink Andre Thmaz (+55 11) (+55 11) nicle.brink@ambev.cm.br andre.thmaz@ambev.cm.br ir.ambev.cm.br Statements cntained in this press release may cntain infrmatin that is frward-lking and reflects management s current view and estimates f future ecnmic circumstances, industry cnditins, cmpany perfrmance, and finance results. Any statements, expectatins, capabilities, plans and assumptins cntained in this press release that d nt describe histrical facts, such as statements regarding the declaratin r payment f dividends, the directin f future peratins, the implementatin f principal perating and financing strategies and capital expenditure plans, the factrs r trends affecting financial cnditin, liquidity r results f peratins, are frward-lking statements within the meaning f the U.S. Private Securities Litigatin Refrm Act f 1995 and invlve a number f risks and uncertainties. There is n guarantee that these results will actually ccur. The statements are based n many assumptins and factrs, including general ecnmic and market cnditins, industry cnditins, and perating factrs. Any changes in such assumptins r factrs culd cause actual results t differ materially frm current expectatins..