Transcription

1 MAY 2008

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6 EBITDA (R$MM) EBITDA margin 37.0% 35.4% 37.8% 39.5% 44.1% 42.3% 8, % 23.5% 22.6% 20.8% 20.4% 30.5% 28.6% 27.8% 28.7% 24.7% 23.8% 21.1% 4,535 6,305 7,445 2,710 3, ,505 1, to 1999 figures refer to Brahma only BR Gaap figures

7 Today, AmBev is the leader in 6 beer markets throughout the Americas... Brazil 67.0% Market Share (March 2008) Three leading brands within portfolio Skol is the third largest selling brand in the world Brahma is the fifth largest selling brand in the world Antarctica is the 20th largest selling brand in the world 70 million hectoliters sold in 2007 Canada Approx. 43.0% Market Share Broad portfolio 11.5 million hectoliters sold in 2007 Argentina Approx. 75% Market Share Leading brands (Quilmes and Brahma) Paraguay, Uruguay and Bolivia Leadership with Brahma, Pilsen and Paceña

8 ...and has a Strong Profitable CSD Operation... Operations in 5 countries Brazil Argentina Uruguay Peru Dominican Republic Largest PepsiCo bottler outside the US EBITDA margin of 37.1% in 2007 for the Brazilian operation

9 Revenue Breakdown by Segment 2007 EBITDA Breakdown by Segment 2007 CSD Brazil 10.7% -Malt & By products 0.9% CSD Brazil 9.0% Malt & Byproducts 0.8% HILA 17.1% Beer Brazil 51.7% HILA 12.9% Canada 17.7% Beer Brazil 59.6% Canada 19.5% Diversified Cash Generation 18% of EBITDA in hard currency (CAD)

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21 6,41 Extract Loss (%) 1,98 1,93 Energy Consumption (Heat kg/hl) 5,37 5,57 5,09 4,63 4,46 1,89 1,88 1,80 1,76 ACT 03 ACT 04 ACT 05 ACT 06 ACT 07 BGT 08 ACT 03 ACT 04 ACT 05 ACT 06 ACT 07 BGT 08 9,13 Electricity Consumption (KWH/HL) 4,88 Water Consumption (HL/HL) 8,89 8,82 8,89 8,72 4,42 4,18 4,30 4,18 8,48 3,95 ACT 03 ACT 04 ACT 05 ACT 06 ACT 07 BGT 08 ACT 03 ACT 04 ACT 05 ACT 06 ACT 07 BGT 08

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23 Pay-out R$ billion Buy backs Dividends 4,357 3,419 Operational Cash Flow R$ MM* Cash Flow 4,150 6,305 7,445 5,985 8,667 7,919 EBITDA * Cash generated from operations other than investing or financing

24 To be the best beer company in a better world Targets and results Social Responsibility Vision Mission Principles Meritocracy Ownership Consistency Long term commitment Candor Competitive Advantage Leadership development Career development Training

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27 Beer and Soft Drinks Start up operations Growth potential Beer EBITDA Margin % Market Share of 43% Beer and Soft Drinks Market Leader in Argentina, Bolivia, Paraguay and Uruguay EBITDA Margin % 2007 Sales Volumes 143 mm Hl EBITDA R$ 8.7 Billion EBITDA Margin 44.1% Beer 3 major brands EBITDA Margin % Market Share of 68.6% Soft Drinks and Nanc EBITDA Margin % Market Share of 17.5%

28 184.9 Net revenues per Hectoliter Beer AmBev (2006)* EBITDA Margin Beer AmBev (2006) 49.5% 51.7% 38.5% Canada Brazil Hila-ex Quinsa * FX conversion by 2006 year average -12.0% Canada Brazil Hila-ex Quinsa

29 101,0 95,3 95,3 66,1 25,3 24,223,0 22,7 18,3 16,214,9 6,3 5,5 2,8 0,8 Per Capita Consumption (2006) (Liters/hab/year) Germany Brazil Russia UK France Ukrania Venezuela Canada Nether. Czech Rep. Argentina Peru Chile Bolivia Uruguay Market Size (2006) (mm hl) 158,4 122,6 108,8 88,2 68,0 67,4 50,8 37,0 33,8 30,4 23,2 22,0 Czech Rep. Germany UK Venezuela Canada Russia Brazil Argentina Chile Bolivia Uruguay Peru * Exclude US and China

30 Channel Package 100% 100% 5% 90% 80% 30% 90% 80% 29% 20% 70% 70% 60% 80% 81% 60% 50% 40% 30% 70% 50% 40% 30% 71% 80% 95% 20% 20% 10% 20% 19% 10% 0% Brazil Canada Argentina 0% Brazil Canada Argentina On Premise Off Premise Returnable Non returnable

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33 Total Market (MM hl/year) Per Capita Consumption (l/year) Positive Trend 95.5 Positive Trend

34 Strong leader with 67.0% of market share (March 2008 figures) 70 million hl sold in leading brands: Skol, Brahma and Antarctica Leading premium brands: Bohemia and Original Seasonality: strong volumes on the 1Q and 4Q Seasonality: Sales Volumes AmBev Brazil Beer Volume (millions hl) Q 31.9% 30.7% 30.3% 31.2% Q 24.3% 23.2% 23.0% 23.1% Q 21.0% 22.2% 22.1% 21.6% 1Q 22.8% 23.9% 24.5% 24.1%

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37 Total Market (MM hl/year) Per Capita Consumption (l/year) Positive Trend Positive Trend

38 AmBev in Brazil CSD Market... With AmBev having increasing market influence 17.2% of market share in soft drinks (March 2008 figures) 24 million hl sold in 2007 (CSD & Nanc) Strong CSD second player Leading Guaraná brand Seasonality: strong volumes on the 4Q AmBev Brazil CSD&Nanc Volume (millions hl) Q 3Q 31.2% 31.1% 30.1% 31.9% 23.1% 23.2% 23.5% 22.0% Q 21.4% 22.2% 22.1% 22.1% 1Q 24.3% 23.5% 24.2% 24.0%

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40 Distribution Breakdown AmBev Brazil Direct Distribution (% of Total Brazilian Volume) 49.1% 51.0% Beer CSD 43.7% 36.9% Supermarkets 30.0% Restaurants 20.0% Small Bars 50.0% 55.0% Small Bars 25.0% Supermarkets Restaurants 20.0% 32.6%

41 Plant Footprint Brazil Beverage Plants Verticalized Plants

42 EBITDA (R$MM) EBITDA margin 34.4% EBITDA and EBITDA Margin Evolution Brazil Beer 46.0% 43.7% 42.0% 40.9% 36.8% 3, % 50.9% 4, ,166.0 CAGR 21.3% 2, , , , ,

43 EBITDA and EBITDA Margin Evolution Brazil CSD 33.7% 31.4% 29.3% % EBITDA (R$MM) EBITDA margin CAGR 39.1% % 18.5% %

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46 Stock has grown 450% since % 600% 500% 400% 300% 200% 100% 0% -100% Share Performance: actual* 450% 464% 251% -5% jan-00 jul-00 jan-01 jul-01 jan-02 jul-02 jan-03 jul-03 jan-04 jul-04 jan-05 jul-05 jan-06 jul-06 jan-07 jul-07 jan-08 AmBev preferred AmBev preferred ADR Bovespa S&P 500 * AMBV4 and ABV figures adjusted for split and stock bonus The content of this presentation is property of AmBev - American Beverage Company

47 FY 2007 R$ Million Beer Brazil CSD Nanc Others Total Canada HILA Total Volumes (000 hl) 70,125 24,483-94,608 11,507 36, ,916 Net Revenues 10,158 2, ,455 3,826 3,367 19,648 COGS (2,810) (977) (116) (3,903) (1,160) (1,483) (6,546) Gross Profit 7,348 1, ,552 2,666 1,884 13,102 SG&A (2,881) (573) (4) (3,458) (1,338) (1,063) (5,859) EBIT 4, ,094 1, ,243 Depr. and Amort ,424 EBITDA 5, ,014 1,537 1,115 8,667 % of Tot. EBITDA 59.6% 9.0% 0.8% 69.4% 17.7% 12.9% 100.0% EBITDA Margin 50.9% 37.1% 35.4% 48.3% 40.2% 33.1% 44.1% +6.8% +13.0% +14.1% +16.8% High Operational Leverage Figures in BR GAAP

48 Net Debt/ EBITDA EBITDA / Net Financial Expenses 1.1x 1.4x 1.0x 1.0x 0.9x N.M.* EBITDA / CAPEX EBITDA / Debt Refinancing Needs 4.5x 5.2x 5.3x 25.0x 3.6x 3.4x 9.0x 6.2x 33.2x 4.8x 6.4x >2012 Figures in BRGaap * In 2003 AmBev had R$93.1MM of Net Financial Revenues

49 S & P Highest Rating Among Brazilian Companies Investment Investment Grade Grade CD CC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA Fitch C CC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA+ Moody s C Ca Caa3 Caa2 Caa1 B3 B2 B1 Ba3 Ba2 Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 Aaa AmBev Brazil Sovereign

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51 Operations, People and Management Committee Shareholders Fiscal Committee Board of Directors Internal Audit Department Finance Committee Executive Management

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54 AmBev Brazil Beer +5.1% +4.6% +8.2% Original Bohemia +19.7% +38.3% +6.7% +28.3% +30.4% +44.4%

55 Brazil Argentina Bolivia Per Capita consumption (l/year)

56 BrazilBeer (R$) Brasil CSD (R$) Canada (CAD$) Cost Per Hectoliter

57 USD vs. Latam currencies since 2004 Country Risk since 2004* 20.0% 1, % 0.0% 1,400 1,200 1,000 Most markets reduced country risk (10.0%) (20.0%) (30.0%) Most Latam currencies appreciated against the USD (40.0%) 0 jan-04 abr-04 jul-04 out-04 jan-05 abr-05 jul-05 out-05 jan-06 abr-06 jul-06 out-06 jan-07 abr-07 jul-07 jan/04 abr/04 jul/04 out/04 jan/05 abr/05 jul/05 out/05 jan/06 abr/06 jul/06 out/06 jan/07 abr/07 jul/07 Argentina Brazil Bolivia Chile Mexico Paraguay Peru Uruguay Argentina Brazil Chile Ecuador Mexico Peru Uruguay Venezuela * Argentina country risk was around 5000 before June 2005

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