AMBEV REPORTS 2017 FOURTH QUARTER AND FULL YEAR RESULTS UNDER IFRS

Transcription

1 Page 1 AMBEV REPORTS 2017 FOURTH QUARTER AND FULL YEAR RESULTS UNDER IFRS Sã Paul, Ambev S.A. [B3: ABEV3; NYSE: ABEV] annunces tday its results fr the 2017 furth quarter and full year. 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 financial infrmatin fr the twelve-mnth perid ended December 31, 2017 filed with the CVM and submitted t the SEC. Operating and Financial Highlights Tp line perfrmance: Tp line was up by a slid 14.7% in 4Q17, driven by grwth acrss all ur peratins: Brazil (+13.8%), Latin America Suth (LAS) (+22.6%), Central America and the Caribbean (CAC) (+15.0%), and Canada (+1.3%). In Brazil, vlumes were up 2.9% while NR/hl up 10.7%. In LAS, vlumes grew by a slid 5.8% and NR/hl rse by 15.9%. In CAC, NR/hl increased by 8.3% and, while rganic vlumes grew by 4.3%, reprted vlumes were up 30.1%, as a result f the swap f assets carried ut with Anheuser-Busch InBev SA (ABI) and ur peratins in Panama. And, in Canada, vlumes decline f 0.7% was mre than ffset by a NR/hl grwth f 1.9%. In the full year, net revenue increased by 9.6%, driven by grwth in Brazil (+5.6%), LAS (+26.1%) and CAC (+8.8%) and a flattish perfrmance in Canada (+0.2%). On a cnslidated basis, vlumes were up 0.9% and NR/hl grew by 8.5%. Cst f Gds Sld (COGS): In 4Q17, COGS and cash COGS (excluding depreciatin and amrtizatin) increased, respectively, by 9.3% and by 10.3%. On a per hectliter basis, COGS grew by 5.6% and cash COGS by 6.6%. In the full year, COGS and cash COGS were up 13.4% and 14.2%, respectively. On a per hectliter basis, COGS rse by 12.2% while cash COGS by 13.0%, mainly due t unfavrable FX in Brazil and LAS. Selling, General & Administrative (SG&A) expenses: In 4Q17, SG&A increased by 15.7% while cash SG&A (excluding depreciatin and amrtizatin) by 15.1%, mainly due t higher administrative csts. In the full year, SG&A and cash SG&A grew by 6.1% and 6.3%, respectively, in line with ur weighted average inflatin (arund 6.1%). EBITDA, Grss margin and EBITDA margin: Nrmalized EBITDA was R$ 7,296 millin (+22.0%) in the quarter, with grss margin and EBITDA margin expansin f 170bps and 290bps, respectively. In the full year, EBITDA was R$ 20,148 millin (+7.9%), with grss and EBITDA margins cntracting 130bps and 70bps, respectively. Net Prfit, Nrmalized Net Prfit and EPS: Net Prfit reached R$ 3,299 millin in the quarter, 31.7% belw 4Q16, while, n a nrmalized basis, Net Prfit grew by 23.2% t R$ 4,506 millin. In the full year, Net Prfit was dwn 40.0% t R$ 7,851 millin, while adjusted by exceptinal items, Net Prfit was up 2.1% t R$ 12,200 millin, as EBITDA increase and lwer net finance results were partially impacted by a higher effective tax rate. EPS was R$ 0.47 and Nrmalized EPS was R$ 0.74 in the full year. Cash Generatin and CAPEX: Cash flw frm perating activities reached R$ 8,901 millin in the quarter and R$ 17,874 millin in the full year, which represents an increase f 44.8% when cmpared t FY16. CAPEX ttaled R$ 1,166 millin in the quarter and R$ 3,204 in the full year, declining 22.5% year ver year. Pay-ut and Financial discipline: In 2017, we have returned R$ 8,482 millin t equity hlders in dividends and interests n capital. As f December 31 st, 2017 ur net cash psitin was R$ 7,812 millin. This figure des nt include the dividend payment f R$ 0.07 per share (apprximately R$ 1.1 billin) annunced n December 21 st, 2017, made as f February 22 nd, 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 furth quarter f 2016 (4Q16) r full year f 2016 (FY16). Values in this release may nt add up due t runding.

2 Page 2 Financial highlights - Ambev cnslidated R$ millin 4Q16 4Q17 Reprted Organic FY16 FY17 Reprted Organic Ttal vlumes 45, , % 3.4% 159, , % 0.9% Net sales 13, , % 14.7% 45, , % 9.6% Grss prfit 8, , % 17.3% 28, , % 7.5% Grss margin 65.0% 66.8% 180 bps 170 bps 63.4% 62.3% -110 bps -130 bps Nrmalized EBITDA 6, , % 22.0% 19, , % 7.9% Nrmalized EBITDA margin 45.6% 48.6% 300 bps 290 bps 42.7% 42.1% -60 bps -70 bps Prfit 4, , % 13, , % Nrmalized prfit 3, , % 11, , % EPS (R$/shares) % % Nrmalized EPS % % Nte: Earnings per share calculatin is based n utstanding shares (ttal existing shares excluding shares held in treasury). Management Cmments We ended 2017 with a slid furth quarter, delivering, n a cnslidated basis, tp line grwth f 14.7% and EBITDA f R$ 7,296 millin, which represents an increase f 22.0% versus 4Q16. In the full year, ur tp line grew by 9.6% and EBITDA reached R$ 20,148 millin (+7.9%). In 2017 we had imprtant achievements acrss the different gegraphies where we perate. In Brazil, ur beer business results steadily imprved thrughut the year. Particularly in 4Q17, ur strngest quarter, we managed t deliver a rbust tp line (+15.2%), benefited by a healthy NR/hl increase (+9.6%) cupled with slid vlumes (+5.1%) that cnsiderably utperfrmed a flattish industry. We als psted a strng cst perfrmance during the quarter, driving EBITDA grwth f 27.5% and margin expansin f 500bps. In the full year, Beer Brazil vlumes were up 0.7%, whereas the beer industry was slightly negative, due t a still weak cnsumer envirnment. In CSD & NANC Brazil, even thugh ur vlumes were dwn 3.7% in 4Q17, in line with the CSD industry, we were able t deliver tp line grwth f 6.7%, cntributing t EBITDA increase f 9.2% and margin expansin f 120bps t 52.7%. In the full year, ur vlumes declined by 4.3%, utperfrming the CSD industry. We are cnfident that the initiatives implemented under ur grwth platfrms have fueled ur evlutin in 2017, paving the way fr sustainable lng term grwth: Elevate the Cre In Octber 2017 Skl launched a new campaign extending the summer seasn and evking nce again the Desce Rednd slgan. The campaign cmprises eight different TV ads, new trade materials and a strng digital activatin and achieved a high recall, putting the brand in a psitive mmentum. Such mmentum was reinfrced by the remarkable activatins during Carnival, as in 2018 nce again Skl tk a leading rle and prmted the mst imprtant street parties in Brazil, such as Sã Paul, Salvadr, Recife and Bel Hriznte. Accelerate Premium Cnsumers are increasingly trading up and a cmplete prtfli f premium brands has prved t be key t capture all the pprtunities arising frm this trend. Our beer premium prtfli presented great results in 2017, increasing duble digits and accunting fr mre than 10% f ur beer vlumes. Budweiser was the leading brand f the premium segment fr the third cnsecutive year, grwing mre than 30% year ver year while cntinuing t build its cnnectin with cnsumers thrugh meaningful and impactful messages. Despite the pressure in the traditinal CSD industry, ur premium prtfli within the CSD & NANC, which cmprises Fusin, H20H!, Liptn, Gatrade and D Bem, delivered great results in H2OH! and Liptn grew by duble digits while Fusin by high single digit. Further, D Bem increased by mre

3 Page 3 than 100%, supprted by the launching f the new line D Bem Td Dia. The premium brands reached almst 10% f ur CSD & NANC vlumes in the full year. In Hme We have evlved with penetratin f returnable glass bttles in the ff-trade channel, bringing affrdability t cnsumers with a higher prfitability. In 2017, returnable glass bttles accunted fr 29% f ur beer vlumes in the retail (which includes supermarkets, small stre frmats, pit stps, amng thers), with the 300ml bttle, the main presentatin in this channel, grwing duble digits year ver year. Out Of Hme The n trade channel cntinues t be the mst relevant channel in Brazil. We have evlved with the segmentatin f this channel, t redesign and implement mre specific trade prgrams, increasing the effectiveness f ur investments and leveraging ur vlumes. Excellence in Client Service As a service riented cmpany, we acknwledge that enhancing ur relatinship with ur clients is an imprtant lever t drive sustainable grwth and, thus, a cnsistent evlutin f ur rute t market and f ur service level is at the cre f ur pririties. Better Wrld 2017 was als marked by the evlutin f ur Better Wrld platfrm. In the beginning f 2017, we launched AMA, a mineral water frm which 100% f the prfit in channeled t prjects fr access t ptable water in the semi-arid regin f Brazil. AMA already benefited mre than peple and has demnstrated great ptential t cntinue t grw. Regarding ur internatinal peratins, in CAC EBITDA increased rganically by mre than 25% in the quarter, with significant margin expansin. In LAS, we cntinued t have a great vlumes mmentum, especially in Argentina, translating nce again int tp line and EBITDA grwth f mre than 20%. And, in Canada, despite f the slid perfrmance f ur main brands in the cuntry, ur results were impacted by unfavrable weather that led t anther quarter f industry cntractin. 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. Tp line in Brazil was up 13.8% in the quarter, als benefited by the exclusin f the State VAT (ICMS) frm the Excise Taxes (PIS/COFINS) basis. EBITDA grew by 24.3% t R$ 4,471 millin and EBITDA margin expanded 430bps t 51.4%. In the full year, tp line was up 5.6%, as vlume decline f 0.6% was mre than ffset by a NR/hl increase f 6.2%. EBITDA reached R$ 11,391 millin (+0.6%), with an EBITDA margin f 43.2% (-220bps). In Beer Brazil, net revenue was up 15.2% in the quarter and 6.3% in the full year. Vlumes grew by 5.1% in 4Q17, while the industry was flattish. In the full year, vlumes were up 0.7%, whilst the industry was slightly negative, impacted by the adverse macrecnmic envirnment and by the retractin in dmestic cnsumptin, especially in the first half f the year. NR/hl grew by 9.6% in 4Q17, due t ur revenue management initiatives implemented in 3Q17. In the full year, NR/hl was up 5.6%.

4 Page 4 In CSD & NANC Brazil, tp line increased by 6.7% in the quarter and by 1.6% in the full year. Vlumes were dwn 3.7% in 4Q17, in line with the industry. In the full year, vlumes declined by 4.3%, less than the industry, as cnsumers cntinued t reduce CSD cnsumptin, trading dwn t water r lw cst pwder juices. NR/hl in CSD & NANC was up 10.8% in 4Q17, driven by ur revenue management initiatives implemented during the quarter. In the full year, NR/hl rse by 6.2%, als benefited by a psitive mix. Brazil Cash COGS was up 0.7% in 4Q17 while, n a per hectliter basis, dwn 2.2%. Beer Brazil cash COGS/hl was dwn 5.4%, mainly driven by favrable FX cupled with the evlutin f ur csts initiatives. Brazil CSD & NANC cash COGS/hl increased by 9.5%, as favrable FX was impacted by higher sugar prices that grew arund 35% year ver year. In the secnd half f 2017, Brazil cash COGS/hl was up 1.0%, in line with ur guidance f flattish t lw single digit up. In the full year, Brazil cash COGS and cash COGS/hl increased by 9.8% and 10.4%, respectively. Brazil cash SG&A Cash SG&A was up 19.9% in 4Q17, mainly due t higher administrative expenses as a result f variable cmpensatin accruals, partially ffset by belw inflatin sales & marketing expenses. In the full year, cash SG&A was up 5.5%. Central America and the Caribbean (CAC). In 4Q17, EBITDA in CAC reached R$ millin (+25.2%), supprted by anther quarter f tp line increase (+15.0%) and slid EBITDA margin expansin (+340bps) t 40.5%. In the full year, tp line rse by 8.8% and EBITDA reached R$ 1,842.9 millin (+23.3%), with an EBITDA margin f 38.9% (+500bps). In US dllars, reprted EBITDA grew by mre than 41.0% in the quarter and 34.5% in the full year, reaching almst USD millin. While still impacted by the severe hurricane seasn that affected the regin, we were able t deliver a slid rganic vlumes grwth f 4.3% in the quarter, driving a 1.9% vlumes increase in the full year. Reprted vlumes increased by 30.1% in 4Q17 and by 26.9% in FY17, benefiting frm the recent swap f assets carried ut with ABI and ur peratins in Panama. The integratin with Panama cntinued t be executed as planned and ur prtfli, that cmprises Atlas Glden Light and Stella Artis, amng ther brands, achieved great results during the year, cntributing t an expressive market share gain in the cuntry. Thrughut 2017, we benefited frm ur slid financial discipline, leveraging bth csts and expenses savings, leading t EBITDA margin expansin in the regin fr the fifth year in a rw. Latin America Suth (LAS). In 4Q17, net revenue was up 22.6% while EBITDA in the regin reached R$ 1,754.8 millin (+23.6%), with an EBITDA margin expansin f 30bps t 50.4%. In the full year, tp line grew by 26.1% and EBITDA was up 24.0%, reaching R$ 4,866.7 millin, with margin cntractin f 80bps t 45.2%. Vlumes were up 5.8% in 4Q17, driven by grwth in bth, beer and CSD & NANC businesses. Specifically fr beer, we had slid perfrmances in (i) Argentina, as a duble digits vlume grwth was supprted by ur cmplete prtfli in the cuntry, frm mainstream with Brahma, that grew mre than 20% year ver year, and Quilmes, with the launch f Quilmes Clásica, t premium, with Stella Artis and Patagnia; (ii) Paraguay, led by the successful implementatin f the 340ml returnable glass bttle strategy, and (iii) Uruguay, driven by an imprved executin and a strng industry. In the full year, vlumes increased by 5.9%, with beer vlumes in Argentina grwing duble digits. In 2017, ur vlume perfrmance enabled us t achieve ur all-time high vlume mark fr beer in LAS, supprted by all glbal brands that presented grwth versus last year. We delivered an EBITDA margin expansin in 4Q17, benefiting frm phasing f sales & marketing and administrative expenses while, in the full year, ur csts were impacted by FX in Argentina, leading t margin cntractin. Canada. Tp line grew by 1.3% in the quarter, with an EBITDA f R$ millin (-2.3%) and EBITDA margin cmpressin f 130bps t 35.0%. In the full year, tp line was slightly up (+0.2%) while EBITDA increased by 0.9%, reaching R$ 2,047.1 millin, with margin expansin f 20bps t 33.9%.

5 Page 5 Vlumes were dwn 0.7% in 4Q17, driven by a sft beer industry that was impacted by a pr weather. On the ther hand, ur main brands cntinued t deliver a slid perfrmance in the cuntry, led by Bud Light, Stella Artis, and by ur prtfli f lcal craft beers. In the full year, vlumes declined by 1.3%, impacted by the beer industry cntractin. Cash COGS in the quarter was affected by negative mix and peratinal deleverage, due t vlumes decline, driving EBITDA margin cmpressin. Nnetheless, in the full year, ur cst perfrmance enabled us t pst EBITDA margin expansin.

6 Page 6 Outlk 2017 was an imprtant year, in which we reached an inflectin pint, resuming grwth. Our perfrmance in the secnd half f the year indicates that we are n the right track t keep delivering slid results. As we mve t 2018, we expect a challenging first quarter fr Beer Brazil, especially in terms f vlumes, due t a hard cmparable in 1Q17, when we utperfrmed the industry by 5.5 percentage pints. In additin t that, the industry is expected t be heavily impacted by an earlier Carnival and pr weather. Nnetheless, we have a psitive utlk fr the rest f the year. Even thugh the cnsumer envirnment remains vlatile, lw inflatin, a declining unemplyment rate and a gradual increase in dispsable incme shuld be supprtive fr the industry as the year prgresses. On tp f that, we are cnfident that we have a pwerful prtfli and a rbust plan t further accelerate EBITDA grwth versus We believe Brazil cntinues t be a unique market, where we will keep striving twards grwth and prfitability. In this cntext, a cnsistent executin f ur grwth platfrms will cntinue t be f paramunt imprtance and, thus, ur fcus n leveraging ur prtfli thrugh innvatins and a cmplete 360 sales & marketing activatin, enhancing ur brands, accelerating premium vlumes, rute-t-market, amng ther initiatives, will all remain high n ur agenda. Within CSD & NANC, we are cmmitted t enhance ur cmmercial strategy, cnnecting with cnsumers thrugh relevant platfrms and strng brands, t drive sustainable tp line and EBITDA grwth. On the csts side, we will keep pushing urselves t pursue cst efficiencies. Further, while ur COGS will be impacted by higher cmmdities prices, especially aluminum, it will be benefited by favrable freign exchange. Our average implied freign exchange hedge rate fr 2018 is 3.16 BRL/USD, cmpared t 3.59 BRL/USD 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 the regin. In LAS, we are excited with the rebund f vlumes in Argentina, where we have a particularly psitive utlk fr 2018, being cnfident that we are well psitined t keep delivering strng results. And, in Canada, we remain cmmitted t pursue imprved results, supprted by ur strng brands and by ur leading market psitin.

7 Page 7 Ambev Cnslidated Incme Statement Cnslidated incme statement Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Net revenue 13, (264.1) 1, , % 14.7% Cst f gds sld (COGS) (4,607.6) (28.7) 74.0 (426.1) (4,988.3) 8.3% 9.3% Grss prfit 8, (190.1) 1, , % 17.3% Selling, general and administrative (SG&A) (3,630.0) (36.2) 37.1 (558.4) (4,187.5) 15.4% 15.7% Other perating incme (9.6) % 189.4% Nrmalized perating incme (nrmalized EBIT) 5, (162.6) 1, , % 24.2% Exceptinal items abve EBIT 1,177.9 (10.5) (1.0) (1,193.9) (27.4) % % Net finance results (908.2) (1,247.5) 37.4% Share f results f jint ventures (3.4) (4.9) 41.8% Incme tax expense (530.3) (1,722.5) nm Prfit 4, , % Attributable t Ambev hlders 4, , % Attributable t nn-cntrlling interests % Nrmalized prfit 3, , % Attributable t Ambev hlders 3, , % Nrmalized EBITDA 6, (175.1) 1, , % 22.0% - Cnslidated incme statement Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Net revenue 45, (2,575.4) 4, , % 9.6% Cst f gds sld (COGS) (16,678.0) (91.5) (2,198.7) (18,041.8) 8.2% 13.4% Grss prfit 28, (1,649.0) 2, , % 7.5% Selling, general and administrative (SG&A) (14,176.6) (192.6) (846.2) (14,539.3) 2.6% 6.1% Other perating incme 1, (17.4) 4.4 1, % 0.4% Nrmalized perating incme (nrmalized EBIT) 15, (990.3) 1, , % 8.1% Exceptinal items abve EBIT 1,134.3 (17.7) 8.1 (1,233.5) (108.7) % % Net finance results (3,702.0) (3,493.9) -5.6% Share f results f jint ventures (5.0) (3.1) -37.5% Incme tax expense (315.0) (5,079.3) nm Prfit 13, , % Attributable t Ambev hlders 12, , % Attributable t nn-cntrlling interests % Nrmalized prfit 11, , % Attributable t Ambev hlders 11, , % Nrmalized EBITDA 19, (1,150.9) 1, , % 7.9%

8 Page 8 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 4Q15 4Q16 4Q17 Net revenues per HL (R$) COGS per HL (R$) Q14 4Q15 4Q16 4Q Q14 4Q15 4Q16 4Q17 Nrmalized EBITDA (R$ MM) Nrmalized EBITDA margin (%) , , , , % 50% 40% 55.6% 52.4% 45.6% 48.6% % % 10% Q14 4Q15 4Q16 4Q17 0% 4Q14 4Q15 4Q16 4Q17

9 Page 9 Ambev Cnslidated We delivered during the quarter R$ 15,027.2 millin f net revenue (+14.7%) and R$ 7,296.1 millin f nrmalized EBITDA (+22.0%). In the full year, ur net revenue ttaled R$ 47,899.3 millin (+9.6%) while ur EBITDA was f R$ 20,147.6 millin (+7.9%). Ambev results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 45, , , % 3.4% Net revenue 13, (264.1) 1, , % 14.7% Net revenue/hl (R$) (5.6) % 10.8% COGS (4,607.6) (28.7) 74.0 (426.1) (4,988.3) 8.3% 9.3% COGS/hl (R$) (101.6) (5.7) (105.2) 3.5% 5.6% COGS excl. deprec.&amrt. (3,989.5) (26.3) 68.0 (407.7) (4,355.5) 9.2% 10.3% COGS/hl excl. deprec. &amrt (R$) (88.0) (5.7) (91.8) 4.4% 6.6% Grss prfit 8, (190.1) 1, , % 17.3% Grss margin 65.0% 66.8% 180 bps 170 bps SG&A excl. deprec.&amrt. (3,331.3) (32.2) 30.7 (493.1) (3,825.9) 14.8% 15.1% SG&A deprec.&amrt. (298.8) (4.1) 6.5 (65.2) (361.6) 21.0% 22.2% SG&A ttal (3,630.0) (36.2) 37.1 (558.4) (4,187.5) 15.4% 15.7% Other perating incme (9.6) % 189.4% Nrmalized EBIT 5, (162.6) 1, , % 24.2% Nrmalized EBIT margin 38.7% 41.9% 320 bps 320 bps Nrmalized EBITDA 6, (175.1) 1, , % 22.0% Nrmalized EBITDA margin 45.6% 48.6% 300 bps 290 bps - (10.5) Ambev results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 159, , , , % 0.9% Net revenue 45, (2,575.4) 4, , % 9.6% Net revenue/hl (R$) (15.8) % 8.5% COGS (16,678.0) (91.5) (2,198.7) (18,041.8) 8.2% 13.4% COGS/hl (R$) (104.4) (12.6) (110.8) 6.2% 12.2% COGS excl. deprec.&amrt. (14,407.6) (80.5) (2,015.4) (15,678.3) 8.8% 14.2% COGS/hl excl. deprec. &amrt (R$) (90.1) (11.6) (96.3) 6.8% 13.0% Grss prfit 28, (1,649.0) 2, , % 7.5% Grss margin 63.4% 62.3% -110 bps -130 bps SG&A excl. deprec.&amrt. (12,934.9) (172.3) (801.0) (13,291.6) 2.8% 6.3% SG&A deprec.&amrt. (1,241.7) (20.3) 59.3 (45.1) (1,247.7) 0.5% 3.7% SG&A ttal (14,176.6) (192.6) (846.2) (14,539.3) 2.6% 6.1% Other perating incme 1, (17.4) 4.4 1, % 0.4% Nrmalized EBIT 15, (990.3) 1, , % 8.1% Nrmalized EBIT margin 35.0% 34.5% -50 bps -40 bps Nrmalized EBITDA 19, (1,150.9) 1, , % 7.9% Nrmalized EBITDA margin 42.7% 42.1% -60 bps -70 bps

10 Page 10 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$ 5,031.3 millin (+24.4%) in the quarter and R$ 13,233.9 millin (+3.2%) in LAN results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 32, , % 3.0% Net revenue 8, (30.5) 1, , % 14.0% Net revenue/hl (R$) (0.9) % 10.4% COGS (3,102.8) (68.4) 10.7 (102.9) (3,263.4) 5.2% 3.3% COGS/hl (R$) (94.1) (0.1) 0.3 (0.3) (94.2) 0.1% 0.3% COGS excl. deprec.&amrt. (2,664.6) (60.5) 9.3 (65.4) (2,781.3) 4.4% 2.5% COGS/hl excl. deprec. &amrt (R$) (80.8) (0.2) (80.3) -0.6% -0.5% Grss prfit 5, (19.8) 1, , % 19.9% Grss margin 64.2% 67.6% 340 bps 340 bps SG&A excl. deprec.&amrt. (2,182.4) (88.9) 11.7 (434.5) (2,694.1) 23.4% 19.9% SG&A deprec.&amrt. (222.0) (9.6) 1.8 (43.2) (273.0) 22.9% 19.4% SG&A ttal (2,404.4) (98.5) 13.5 (477.7) (2,967.1) 23.4% 19.9% Other perating incme (4.2) % 157.0% Nrmalized EBIT 3, (10.5) , % 26.8% Nrmalized EBIT margin 38.4% 42.4% 400 bps 440 bps Nrmalized EBITDA 3, (13.7) , % 24.4% Nrmalized EBITDA margin 46.1% 49.9% 380 bps 410 bps - LAN results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 116, , (422.3) 118, % -0.4% Net revenue 28, (418.8) 1, , % 5.9% Net revenue/hl (R$) (3.5) % 6.3% COGS (10,870.4) (310.2) (933.5) (11,935.0) 9.8% 8.3% COGS/hl (R$) (93.2) (0.7) 1.5 (8.2) (100.6) 7.9% 8.7% COGS excl. deprec.&amrt. (9,186.7) (274.1) (845.4) (10,153.1) 10.5% 8.9% COGS/hl excl. deprec. &amrt (R$) (78.8) (0.7) 1.3 (7.4) (85.6) 8.7% 9.3% Grss prfit 18, (239.7) , % 4.4% Grss margin 62.4% 61.6% -80 bps -90 bps SG&A excl. deprec.&amrt. (8,219.8) (362.1) 90.2 (378.7) (8,870.4) 7.9% 4.4% SG&A deprec.&amrt. (902.9) (41.2) 11.6 (0.5) (933.0) 3.3% 0.1% SG&A ttal (9,122.8) (403.2) (379.2) (9,803.4) 7.5% 4.0% Other perating incme 1, (8.9) (109.5) 1, % -8.5% Nrmalized EBIT 10, (146.8) , % 3.2% Nrmalized EBIT margin 35.3% 33.8% -150 bps -90 bps Nrmalized EBITDA 12, (184.6) , % 3.2% Nrmalized EBITDA margin 44.3% 42.6% -170 bps -120 bps

11 Page 11 Brazil We delivered R$ 4,471.4 millin (+24.3%) f Nrmalized EBITDA in Brazil in the quarter, with an EBITDA margin f 51.4% (+430bps). Net revenue was up 13.8% in the quarter, with a vlume grwth f 2.9% cupled with a NR/hl increase f 10.7%. Cash COGS was up 0.7% while, n a per hectliter basis, dwn 2.2%. Cash SG&A grew by 19.9% in the quarter. In the full year, tp line was up 5.6%, cash COGS up 9.8%, cash SG&A up 5.5% and EBITDA up 0.6%, with an EBITDA margin cntractin f 220bps. Brazil results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 30, , % 2.9% Net revenue 7, , , % 13.8% Net revenue/hl (R$) % 10.7% COGS (2,632.4) - - (53.9) (2,686.4) 2.0% 2.0% COGS/hl (R$) (86.8) (86.0) -0.8% -0.8% COGS excl. deprec.&amrt. (2,259.8) - - (14.7) (2,274.6) 0.7% 0.7% COGS/hl excl. deprec. &amrt (R$) (74.5) (72.9) -2.2% -2.2% Grss prfit 5, , , % 20.0% Grss margin 65.6% 69.1% 350 bps 350 bps SG&A excl. deprec.&amrt. (1,944.6) - - (387.9) (2,332.4) 19.9% 19.9% SG&A deprec.&amrt. (193.4) - - (35.3) (228.7) 18.2% 18.2% SG&A ttal (2,137.9) - - (423.2) (2,561.1) 19.8% 19.8% Other perating incme % 136.3% Nrmalized EBIT 3, , % 26.4% Nrmalized EBIT margin 39.7% 44.0% 430 bps 430 bps Nrmalized EBITDA 3, , % 24.3% Nrmalized EBITDA margin 47.1% 51.4% 430 bps 430 bps - Brazil results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 106, (601.4) 106, % -0.6% Net revenue 24, , , % 5.6% Net revenue/hl (R$) % 6.2% COGS (9,071.8) - - (817.7) (9,889.5) 9.0% 9.0% COGS/hl (R$) (84.8) - - (8.2) (93.0) 9.6% 9.6% COGS excl. deprec.&amrt. (7,626.2) - - (746.0) (8,372.2) 9.8% 9.8% COGS/hl excl. deprec. &amrt (R$) (71.3) - - (7.4) (78.7) 10.4% 10.4% Grss prfit 15, , % 3.7% Grss margin 63.6% 62.5% -110 bps -110 bps SG&A excl. deprec.&amrt. (7,281.3) - - (401.1) (7,682.5) 5.5% 5.5% SG&A deprec.&amrt. (803.1) (790.9) -1.5% -1.5% SG&A ttal (8,084.5) - - (388.9) (8,473.4) 4.8% 4.8% Other perating incme 1, (181.4) 1, % -14.2% Nrmalized EBIT 9, , % 0.1% Nrmalized EBIT margin 36.4% 34.5% -190 bps -190 bps Nrmalized EBITDA 11, , % 0.6% Nrmalized EBITDA margin 45.4% 43.2% -220 bps -220 bps

12 Page 12 Beer Brazil In 4Q17, EBITDA fr Beer Brazil was R$ 3,788.5 millin (+27.5%) with an EBITDA margin expansin f 500bps t 51.2%. Tp line grew by 15.2% in the quarter. Vlumes grew by 5.1%, utperfrming the industry that was flattish. NR/hl rse by 9.6%, due t ur revenue management initiatives implemented in 3Q17. Cash COGS/hl was dwn 5.4%, benefiting frm favrable FX and the evlutin f ur csts initiatives, while cash SG&A was up 20.4%, due t higher administrative expenses impacted by variable cmpensatin accruals. In the full year, Beer Brazil tp line was up 6.3%, cash COGS up 8.1%, cash SG&A up 4.2% and EBITDA up 4.4%, with an EBITDA margin cntractin f 80bps. Beer Brazil results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 22, , , % 5.1% Net revenue 6, , % 15.2% Net revenue/hl (R$) % 9.6% COGS (2,144.5) - - (1.9) (2,146.3) 0.1% 0.1% COGS/hl (R$) (94.9) (90.3) -4.8% -4.8% COGS excl. deprec.&amrt. (1,826.0) (1,817.2) -0.5% -0.5% COGS/hl excl. deprec. &amrt (R$) (80.8) (76.5) -5.4% -5.4% Grss prfit 4, , % 22.8% Grss margin 66.6% 71.0% 440 bps 440 bps SG&A excl. deprec.&amrt. (1,710.8) - - (349.3) (2,060.0) 20.4% 20.4% SG&A deprec.&amrt. (166.0) - - (25.9) (191.9) 15.6% 15.6% SG&A ttal (1,876.8) - - (375.1) (2,251.9) 20.0% 20.0% Other perating incme nm nm Nrmalized EBIT 2, , % 31.3% Nrmalized EBIT margin 38.7% 44.1% 540 bps 540 bps Nrmalized EBITDA 2, , % 27.5% Nrmalized EBITDA margin 46.2% 51.2% 500 bps 500 bps - 0.0% - 0.0% 0.0% 0.0% Beer Brazil results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 79, , % 0.7% Net revenue 21, , , % 6.3% Net revenue/hl (R$) % 5.6% COGS (7,339.9) - - (555.2) (7,895.1) 7.6% 7.6% COGS/hl (R$) (92.1) - - (6.3) (98.4) 6.8% 6.8% COGS excl. deprec.&amrt. (6,109.8) - - (494.7) (6,604.5) 8.1% 8.1% COGS/hl excl. deprec. &amrt (R$) (76.7) - - (5.6) (82.3) 7.3% 7.3% Grss prfit 13, , % 5.6% Grss margin 65.3% 64.9% -40 bps -40 bps SG&A excl. deprec.&amrt. (6,414.6) - - (268.9) (6,683.4) 4.2% 4.2% SG&A deprec.&amrt. (681.3) - - (26.2) (707.5) 3.8% 3.8% SG&A ttal (7,095.9) - - (295.0) (7,390.9) 4.2% 4.2% Other perating incme (144.8) % -14.9% Nrmalized EBIT 7, , % 4.4% Nrmalized EBIT margin 36.4% 35.8% -60 bps -60 bps Nrmalized EBITDA 9, , % 4.4% Nrmalized EBITDA margin 45.4% 44.6% -80 bps -80 bps

13 Page 13 CSD & NANC Brazil In Brazil CSD & NANC, EBITDA was R$ millin (+9.2%) in 4Q17, with an EBITDA margin f 52.7% (+120bps). Net revenue was up 6.7% in the quarter. Vlumes were dwn 3.7%, in line with the industry, as cnsumers cntinued t reduce CSD cnsumptin, trading dwn t water r lw cst pwder juices. NR/hl in CSD & NANC was up 10.8%, driven by ur revenue management initiatives implemented during the quarter and a psitive mix. Cash COGS/hl increased by 9.5%, as favrable FX was impacted by higher sugar prices that grew arund 35% year ver year. Cash SG&A was up 16.5%, due t higher administrative expenses impacted by variable cmpensatin accruals. In the full year, CSD & NANC Brazil tp line was up 1.6%, cash COGS up 16.6%, cash SG&A up 15.3% and EBITDA dwn 21.0%, with an EBITDA margin cntractin f 1000bps. CSD&NANC Brazil results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 7, (288.0) 7, % -3.7% Net revenue 1, , % 6.7% Net revenue/hl (R$) % 10.8% COGS (488.0) - - (52.1) (540.0) 10.7% 10.7% COGS/hl (R$) (63.1) - - (9.4) (72.5) 14.9% 14.9% COGS excl. deprec.&amrt. (433.8) - - (23.6) (457.4) 5.4% 5.4% COGS/hl excl. deprec. &amrt (R$) (56.1) - - (5.3) (61.4) 9.5% 9.5% Grss prfit % 4.0% Grss margin 59.8% 58.3% -150 bps -150 bps SG&A excl. deprec.&amrt. (233.8) - - (38.6) (272.4) 16.5% 16.5% SG&A deprec.&amrt. (27.3) - - (9.4) (36.8) 34.4% 34.4% SG&A ttal (261.1) - - (48.1) (309.2) 18.4% 18.4% Other perating incme % 49.4% Nrmalized EBIT % 3.6% Nrmalized EBIT margin 44.8% 43.5% -130 bps -130 bps Nrmalized EBITDA % 9.2% Nrmalized EBITDA margin 51.5% 52.7% 120 bps 120 bps - 0.0% - 0.0% 0.0% 0.0% CSD&NANC Brazil results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 27, (1,164.9) 26, % -4.3% Net revenue 3, , % 1.6% Net revenue/hl (R$) % 6.2% COGS (1,731.9) - - (262.5) (1,994.4) 15.2% 15.2% COGS/hl (R$) (63.5) - - (12.9) (76.3) 20.3% 20.3% COGS excl. deprec.&amrt. (1,516.5) - - (251.3) (1,767.8) 16.6% 16.6% COGS/hl excl. deprec. &amrt (R$) (55.6) - - (12.1) (67.7) 21.8% 21.8% Grss prfit 2, (200.3) 1, % -9.8% Grss margin 54.2% 48.1% -610 bps -610 bps SG&A excl. deprec.&amrt. (866.8) - - (132.3) (999.1) 15.3% 15.3% SG&A deprec.&amrt. (121.8) (83.4) -31.5% -31.5% SG&A ttal (988.6) - - (93.9) (1,082.5) 9.5% 9.5% Other perating incme (36.6) % -12.0% Nrmalized EBIT 1, (330.7) 1, % -24.2% Nrmalized EBIT margin 36.1% 26.9% -920 bps -920 bps Nrmalized EBITDA 1, (358.0) 1, % -21.0% Nrmalized EBITDA margin 45.0% 35.0% bps bps

14 Page 14 Central America and the Caribbean (CAC) Our peratins in CAC delivered an EBITDA f R$ millin (+25.2%) in the quarter, with an EBITDA margin f 40.5% (+340bps). Tp line increased by 15.0% in 4Q17, as a result f a slid 4.3% vlume grwth and a NR/hl increase f 8.3%. On a reprted basis, vlumes were up 30.1%, benefitting frm the recent swap f assets carried ut with ABI and ur peratins in Panama. Cash COGS/hl grew by 6.6% and cash SG&A increased by 19.6%, impacted by higher administrative expenditures. In the full year, CAC tp line was up 8.8%, cash COGS up 6.4%, cash SG&A dwn 2.4% and EBITDA up 23.3%, with an EBITDA margin expansin f 500bps. 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 Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ttal ('000 hl) 2, , % 4.3% Net revenue 1, (30.5) , % 15.0% Net revenue/hl (R$) (13.0) (8.9) % 8.3% COGS (470.4) (68.4) 10.7 (49.0) (577.0) 22.7% 10.4% COGS/hl (R$) (178.7) (8.9) (168.5) -5.7% 5.0% COGS excl. deprec.&amrt. (404.8) (60.5) 9.3 (50.6) (506.7) 25.2% 12.5% COGS/hl excl. deprec. &amrt (R$) (153.8) (10.1) (148.0) -3.8% 6.6% Grss prfit (19.8) % 18.9% Grss margin 54.6% 58.3% 370 bps 180 bps SG&A excl. deprec.&amrt. (237.8) (88.9) 11.7 (46.6) (361.7) 52.1% 19.6% SG&A deprec.&amrt. (28.7) (9.6) 1.8 (7.9) (44.3) 54.5% 27.5% SG&A ttal (266.5) (98.5) 13.5 (54.5) (405.9) 52.3% 20.5% Other perating incme/expenses (4.2) nm nm Nrmalized EBIT (10.5) % 31.0% Nrmalized EBIT margin 29.4% 32.2% 280 bps 400 bps Nrmalized EBITDA (13.7) % 25.2% Nrmalized EBITDA margin 38.5% 40.5% 200 bps 340 bps CAC results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ttal ('000 hl) 9, , , % 1.9% Net revenue 3, (418.8) , % 8.8% Net revenue/hl (R$) (13.8) (34.1) % 5.5% COGS (1,798.6) (310.2) (115.8) (2,045.6) 13.7% 6.4% COGS/hl (R$) (186.0) (6.9) (166.7) -10.4% 3.7% COGS excl. deprec.&amrt. (1,560.4) (274.1) (99.4) (1,780.9) 14.1% 6.4% COGS/hl excl. deprec. &amrt (R$) (161.3) (5.9) (145.1) -10.1% 3.6% Grss prfit 2, (239.7) , % 10.8% Grss margin 54.7% 56.8% 210 bps 100 bps SG&A excl. deprec.&amrt. (938.5) (362.1) (1,187.9) 26.6% -2.4% SG&A deprec.&amrt. (99.8) (41.2) 11.6 (12.7) (142.1) 42.4% 12.8% SG&A ttal (1,038.3) (403.2) (1,330.0) 28.1% -0.9% Other perating incme/expenses (8.9) nm nm Nrmalized EBIT 1, (146.8) , % 27.6% Nrmalized EBIT margin 28.8% 30.3% 150 bps 500 bps Nrmalized EBITDA 1, (184.6) , % 23.3% Nrmalized EBITDA margin 37.3% 38.9% 160 bps 500 bps

15 Page 15 Latin America Suth (LAS) LAS EBITDA grew by 23.6% in 4Q17, reaching R$ 1,754.8 millin, with an EBITDA margin f 50.4% (+30bps). Vlumes were up 5.8% in 4Q17, driven by grwth in bth, beer and CSD & NANC businesses. Regarding beer, we had slid perfrmances in (i) Argentina, as duble digits vlume grwth was supprted by a great perfrmance acrss ur cmplete prtfli in the cuntry; (ii) Paraguay, led by the 340ml returnable glass bttle strategy, and (iii) Uruguay, driven by executin imprvements and a strng industry. Tp line was up 22.6% in the quarter and NR/hl rse by 15.9%. Cash COGS/hl grew by 29.2%, mainly driven by inflatin and negative currency impact. Cash SG&A increased by 6.2%, belw inflatin, benefiting frm phasing f sales & marketing and administrative expenses. In the full year, LAS tp line was up 26.1%, cash COGS up 38.9%, cash SG&A up 17.2% and EBITDA up 24.0%, with an EBITDA margin cntractin f 80bps. 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 Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 10,010.4 (149.5) , % 5.8% Net revenue 3,152.9 (43.9) (327.6) , % 22.6% Net revenue/hl (R$) (31.4) % 15.9% COGS (1,062.1) (313.1) (1,241.7) 16.9% 30.6% COGS/hl (R$) (106.1) (24.3) (119.0) 12.2% 23.5% COGS excl. deprec.&amrt. (927.2) (327.1) (1,132.9) 22.2% 36.6% COGS/hl excl. deprec. &amrt (R$) (92.6) (26.4) (108.6) 17.3% 29.2% Grss prfit 2,090.8 (4.2) (234.0) , % 18.7% Grss margin 66.3% 64.4% -190 bps -210 bps SG&A excl. deprec.&amrt. (695.5) (39.6) (623.6) -10.3% 6.2% SG&A deprec.&amrt. (66.1) (4.3) (60.1) -9.0% 7.1% SG&A ttal (761.5) (43.9) (683.7) -10.2% 6.3% Other perating incme/expenses (2.7) 0.6 (5.5) nm nm Nrmalized EBIT 1, (180.2) , % 27.5% Nrmalized EBIT margin 42.1% 45.5% 340 bps 170 bps Nrmalized EBITDA 1, (191.4) , % 23.6% Nrmalized EBITDA margin 48.4% 50.4% 200 bps 30 bps - LAS results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 32,934.5 (776.8) - 1, , % 5.9% Net revenue 10,212.9 (309.2) (1,718.8) 2, , % 26.1% Net revenue/hl (R$) (2.1) (50.5) % 19.0% COGS (3,685.4) (1,262.5) (4,122.6) 11.9% 36.4% COGS/hl (R$) (111.9) (31.0) (121.0) 8.2% 28.8% COGS excl. deprec.&amrt. (3,246.4) (1,186.4) (3,696.6) 13.9% 38.9% COGS/hl excl. deprec. &amrt (R$) (98.6) (29.5) (108.5) 10.1% 31.1% Grss prfit 6,527.5 (87.5) (1,115.2) 1, , % 20.5% Grss margin 63.9% 61.7% -220 bps -280 bps SG&A excl. deprec.&amrt. (2,425.8) (384.8) (2,247.7) -7.3% 17.2% SG&A deprec.&amrt. (271.6) (27.4) (236.0) -13.1% 10.9% SG&A ttal (2,697.4) (412.2) (2,483.7) -7.9% 16.6% Other perating incme/expenses (39.0) 1.4 (8.1) nm nm Nrmalized EBIT 3, (712.0) , % 25.4% Nrmalized EBIT margin 37.1% 39.0% 190 bps -20 bps Nrmalized EBITDA 4, (817.9) 1, , % 24.0% Nrmalized EBITDA margin 44.1% 45.2% 110 bps -80 bps

16 Page 16 Canada In Canada, EBITDA was R$ millin, with an EBITDA margin cmpressin f 130bps, t 35.0%. Vlumes were dwn 0.7% in 4Q17, driven by a sft beer industry that was impacted by a pr weather. On the ther hand, ur main brands cntinued t deliver a slid perfrmance in the cuntry, led by Bud Light, Stella Artis, and ur prtfli f lcal craft beers. Tp line was up 1.3%, while NR/hl increased by 1.9%, benefiting frm psitive mix and ur revenue management strategy. Cash COGS/hl was up 4.5%, mainly driven by a negative mix and peratinal deleverage, while cash SG&A rse by 4.2%, mainly due t higher administrative expenses. In the full year, Canada tp line was flattish (+0.2%), cash COGS dwn 0.8%, cash SG&A up 1.6% and EBITDA up 0.9%, with an EBITDA margin expansin f 20bps. Canada results Currency Organic R$ millin 4Q16 Scpe Translatin Grwth 4Q17 Reprted Organic Vlume ('000 hl) 2, (16.2) 2, % -0.7% Net revenue 1, , % 1.3% Net revenue/hl (R$) % 1.9% COGS (442.6) (0.1) (30.3) (10.1) (483.2) 9.2% 2.3% COGS/hl (R$) (186.6) (0.0) (12.9) (5.6) (205.1) 9.9% 3.0% COGS excl. deprec.&amrt. (397.7) (0.1) (28.4) (15.2) (441.3) 11.0% 3.8% COGS/hl excl. deprec. &amrt (R$) (167.6) (0.0) (12.1) (7.6) (187.3) 11.7% 4.5% Grss prfit % 0.7% Grss margin 67.1% 66.9% -20 bps -30 bps SG&A excl. deprec.&amrt. (453.4) (0.1) (35.6) (19.0) (508.2) 12.1% 4.2% SG&A deprec.&amrt. (10.7) (0.0) (0.1) (17.8) (28.6) 167.9% 166.9% SG&A ttal (464.1) (0.1) (35.7) (36.8) (536.8) 15.7% 7.9% Other perating incme/expenses (4.8) % % Nrmalized EBIT (0.0) 28.1 (23.9) % -5.5% Nrmalized EBIT margin 32.3% 30.1% -220 bps -210 bps Nrmalized EBITDA (0.0) 30.1 (11.2) % -2.3% Nrmalized EBITDA margin 36.5% 35.0% -150 bps -130 bps - Canada results Currency Organic R$ millin FY16 Scpe Translatin Grwth FY17 Reprted Organic Vlume ('000 hl) 10, (129.1) 10, % -1.3% Net revenue 6, (437.8) , % 0.2% Net revenue/hl (R$) (0.1) (43.2) % 1.5% COGS (2,122.1) (3.0) (2.7) (1,984.2) -6.5% 0.1% COGS/hl (R$) (206.9) (0.1) 14.2 (2.9) (195.8) -5.4% 1.4% COGS excl. deprec.&amrt. (1,974.6) (2.9) (1,828.6) -7.4% -0.8% COGS/hl excl. deprec. &amrt (R$) (192.6) (0.1) 13.1 (0.8) (180.4) -6.3% 0.4% Grss prfit 4, (294.2) , % 0.3% Grss margin 67.2% 67.2% bps bps SG&A excl. deprec.&amrt. (2,289.3) (4.1) (37.5) (2,173.5) -5.1% 1.6% SG&A deprec.&amrt. (67.2) (0.0) 5.7 (17.2) (78.7) 17.2% 25.7% SG&A ttal (2,356.4) (4.1) (54.7) (2,252.2) -4.4% 2.3% Other perating incme/expenses (21.6) 0.5 (0.4) % % Nrmalized EBIT 1,961.7 (0.7) (131.5) (16.7) 1, % -0.9% Nrmalized EBIT margin 30.4% 30.0% -40 bps -40 bps Nrmalized EBITDA 2,176.4 (0.5) (148.5) , % 0.9% Nrmalized EBITDA margin 33.7% 33.9% 20 bps 20 bps

17 Page 17 Other perating incme/(expense) Other perating incme ttaled R$ millin in 4Q17, which represents an increase f 189.4% cmpared t the same perid f previus year, mainly driven by an easy cmparable in 4Q16. In FY17, Other perating Incme ttaled R$ 1,217.3 millin, cmpared t R$ 1,223.0 millin last year. Other perating incme/(expenses) 4Q16 4Q17 FY16 FY17 R$ millin Gvernment grants/npv f lng term fiscal incentives , (Additins t)/reversals f prvisins (85.8) 34.9 (132.9) (12.9) Net gain n dispsal f prperty, plant and equipment and intangible assets Net ther perating incme/(expenses) , ,217.3 Exceptinalitems In 2017, we recrded an expense f R$ millin in exceptinal items mainly in cnnectin with restructuring csts, cmpared t an incme f R$ 1,134.3 millin in 2016, mstly explained by a nn-cash gain n stcks swap recrded in 4Q16 as a result f the swap agreement with Anheuser-Busch InBev SA (ABI) pursuant t which n December 31 st, 2016 the Cmpany transferred t AB InBev its businesses in Clmbia, Peru and Ecuadr, and AB InBev transferred its Panamanian business t the Cmpany. Exceptinal items 4Q16 4Q17 FY16 FY17 R$ millin Result frm exchange transactin f sharehldings 1, , Restructuring (45.1) (24.5) (79.8) (105.5) Csts f new acquisitin (20.9) (2.7) (29.8) (3.8) Other exceptinal items 4.0 (0.2) ,177.9 (27.4) 1,134.3 (108.7)

18 Page 18 Net finance results Net finance results ttaled an expense f R$ 1,247.5 millin in 4Q17. In the full year, net finance results ttaled an expense f R$ 3,493.9 millin, including tw exceptinal financial expenses that ttaled R$ millin, f which: (i) (ii) R$ millin, with n cash impact, related t freign exchange translatin lsses n intragrup lans that were histrically reprted in equity and were recycled t prfit and lss accunt in 4Q17, upn the reimbursement f these lans; and R$ millin was paid in cnnectin with the Brazilian Federal Tax Regularizatin Prgram (PERT), as detailed in the Prvisin fr incme tax & scial cntributin sectin (page 19). Excluding such exceptinal financial expenses, net finance result ttaled R$ millin in the quarter and R$ 2,517.1 millin in the full year (-32.0%), mainly driven by (i) interest expenses, which include the put ptin f ur investment in the Dminican Republic (arund R$ 600 millin in FY17), and (ii) lsses n derivative instruments. Net finance results 4Q16 4Q17 FY16 FY17 R$ millin Interest incme Interest expenses (416.1) (415.5) (1,543.4) (1,569.4) Gains/(lsses) n derivative instruments (291.9) (121.9) (1,461.6) (543.0) Gains/(lsses) n nn-derivative instruments (62.8) (111.9) Taxes n financial transactins (105.0) (64.9) (224.6) (179.7) Other financial incme/(expenses), net (400.7) (53.3) (923.2) (572.0) Exceptinal financial expenses (835.7) (976.8) Net finance results (908.2) (1,247.5) (3,702.0) (3,493.9) As f December 31 st, 2017 we held a net cash psitin f R$ 7,811.6 (up frm R$ 2,763.3 millin as f December 31 st, 2016). Cnslidated debt crrespnded t R$ 2,553.1 millin whereas cash and cash equivalents less bank verdrafts ttaled R$ 10,352.7 millin, up frm R$ 7,876.8 millin as f December 31 st, December 31 st 2016 December 31 st 2017 Debt Breakdwn Current Nn-current Ttal Current Nn-current Ttal Lcal Currency , , ,084.9 Freign Currency 2, , ,468.1 Cnslidated Debt 3, , , , , ,553.1 Cash and Cash Equivalents less Bank Overdrafts 7, ,352.7 Current Investment Securities Net Debt/ (Cash) (2,763.3) (7,811.6)

19 Page 19 Prvisin fr incme tax & scial cntributin The weighted nminal tax rate in the quarter was 31.3%, similar t 31.1% in 4Q16. In the full year, it was 29.2%, cmpared t 30.2% in FY16. The effective tax rate was up in the quarter frm 9.9% t 34.3%, due t (i) lwer interest n sharehlders equity, and (ii) an exceptinal nn-cash tax expense f apprximately R$ 510 millin related t tax effects f freign exchange variatin n intragrup lans, as detailed in the Net finance results sectin (page 18). In FY17, the effective tax rate was 39.3% versus 2.4% in FY16, as we nt nly faced a tugh cmparable, but were als impacted by anther exceptinal tax adjustment f R$ 2,784.7 millin linked t the Brazilian Federal Tax Regularizatin Prgram (PERT). As annunced n September 29 th, 2017, the Cmpany adhered t a 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$1.0 billin was already paid in 2017 and the remainder will be paid in 145 mnthly installments starting frm January 2018, plus interests. Adjusted by these tw exceptinal tax adjustments, the effective tax rate was 23.9% in the quarter and 12.8% in the full year. Incme tax and scial cntributin R$ millin 4Q16 4Q17 FY16 FY17 Prfit befre tax 5, , , ,929.8 Adjustment n taxable basis Nn-taxable net financial and ther incme (78.1) (68.3) (392.0) (310.9) Gverment grants (VAT) (428.9) (622.5) (1,528.6) (1,889.1) Share f results f jint ventures Expenses nt deductible (101.2) Freign prfits taxed in Brazil (63.3) , , , ,836.9 Aggregated weighted nminal tax rate 31.1% 31.3% 30.2% 29.2% Taxes nminal rate (1,543.5) (1,373.3) (3,864.0) (3,166.6) 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 (2,784.7) Other tax adjustments (584.9) 1,539.3 (952.3) Incme tax and scial cntributin expense (530.3) (1,722.5) (315.0) (5,079.3) Effective tax rate 9.9% 34.3% 2.4% 39.3% Nrmalized effective tax rate 9.9% 23.9% 2.4% 12.8% Sharehlding structure The table belw summarizes Ambev S.A. s sharehlding structure as f December 31 st, Ambev S.A.'s sharehlding structure ON %Outs Anheuser-Busch InBev 9,727,217, % FAHZ 1,605,713, % Market 4,377,289, % Outstanding 15,710,221, % Treasury 7,394,037 TOTAL 15,717,615,419 Free flat B3 3,094,708, % Free flat NYSE 1,282,581, %