INSTITUTIONAL PRESENTATION. May 2018

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Lynne Lewis
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1 INSTITUTIONAL PRESENTATION May 2018

Statements contained in this presentation may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions,

2 Statements contained in this presentation may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry conditions, company performance, and financial results. Any statements, expectations, capabilities, plans and assumptions contained in this presentations that do not describe historical facts, such as statements regarding the declarations or payment of dividends, the directions of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations are forward-looking statements and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

3 Billions AMBEV EBITDA (R$ MM) and EBITDA Margin Evolution % 20,148 50% CND 45% 42% 40% 35% % 24% 25% % - 15% Source: Company reports 3

4 AMBEV Today 2017 RESULTS EBITDA R$ % consolidated EBITDA R$ 20,148 MM EBITDA 42.1% EBITDA Margin Central America and the Caribbean 1,843 MM 9% Canada 2,047 MM 10% Latin America South 4,867 MM 24% Brazil 11,391 MM 57% Source: Company, 2017 figures 4

5 BRAZIL Biggest growth opportunity 2017 RESULTS EBITDA R$ % consolidated EBITDA Brazil 11,391 MM 57% Source: Company, 2017 figures 5

6 BRAZIL IN 16 YEARS Creating value in a sustainable way through the cycles 30% 25% 15 EBITDA R$ billion 20% 10 15% 10% 5 5% 0% 0-5% -10% EBITDA (R$ billion) Quarterly GDP YoY (%) -5 Sources: Company results, Bloomberg 6

7 STRUCTURAL GROWTH DRIVERS: POSITIVE DEMOGRAPHICS LDA Population to grow 1.4% CAGR in the next 5 years LDA+ Population (MM) CAGR 5 years 2018 to % % 3% 2% 1% 0% Source: IBGE, company estimates. 7

8 liters STRUCTURAL GROWTH DRIVERS: DISPOSABLE INCOME Brazil, land of disparities, significant room for per capita consumption growth despite short term pressure Beer per capita consumption vs. personal income Real disposable income growth (yoy %) 110 Brazil Average Brazilian States Regions in different maturity stages ,000 1,500 2,000 R$, monthly Source: IBGE 2014, Nielsen, company estimates,, UN, LCA 8

DIFFERENT STRATEGIES ACROSS THE COUNTRY Brazil s regions in different maturity stages INCREASE PENETRATION

MORE SOPHISTICATED REGION 1 REGION 2 REGION 3 Beer Styles Income per capita Classic Lager low / medium low

Beer volume per capita Alcohol Penetration low / medium low low / medium low medium / medium high medium /

9 DIFFERENT STRATEGIES ACROSS THE COUNTRY Brazil s regions in different maturity stages INCREASE PENETRATION MAKING BEER MORE AFFORDABLE INCREASE FREQUENCY AND DRIVE TRADE UP TO BE PRESENT IN NEW OCCASIONS MAKING BEER MORE SOPHISTICATED REGION 1 REGION 2 REGION 3 Beer Styles Income per capita Classic Lager low / medium low Classic Lager Easy Drinking Other Styles medium / medium high Classic Lager Easy Drinking Other Styles high Beer volume per capita Alcohol Penetration low / medium low low / medium low medium / medium high medium / medium high high high # occasions per year low / medium low medium / medium high high Source: Company estimates 9

10 MAIN GROWTH PLATFORMS IN BRAZIL Supporting our different strategies across the country DREAM: Bring people together for a better world Category Expansion Framework Excellence in Client Service Better World Live and Breathe: Dream, People and Culture 10

11 ENHANCING THE EQUITY OF OUR BRANDS Through relevant marketing platforms, key selling moments and packaging ELEVATE THE CORE CLASSIC LAGER EASY DRINKING CORE PLUS NON ALCOHOLIC BEVERAGES Providing the best trade up alternative aligned with mother brand positioning 11

12 DRIVING POSITIVE MIX Through a strong portfolio that addresses different consumer needs ACELERATE PREMIUM MARKET LEADER WITH A COMPLETE PORTFOLIO OF GLOBAL AND DOMESTIC BRANDS VOLUME CAGR LAST 7 YEARS DOUBLE DIGITS PREMIUM WEIGHT >10% 5% PREMIUM PREFERENCE >30% NON ALCOHOLIC BEVERAGES 12

13 BRAZIL: STRUCTURAL DRIVERS + SOLID GROWTH PLATFORMS Significant growth opportunities ahead of us Positive Demographics Disposable Income Growth Platforms Category Expansion Framework Excellence in Client Service Better World Live and Breathe: Dream, People and Culture Strong brands Local execution, global expertise AMBEV WELL POSITIONED TO CAPTURE THESE GROWTH OPPORTUNITIES Nimble and fast to react Complete portfolio mainstream to high end 13 Leading market share Talented and motivated people Unparalleled distribution footprint

14 LATIN AMERICA SOUTH 2017 RESULTS EBITDA R$ % consolidated EBITDA Latin America South 4,867 MM 24% Source: Company, 2017 figures 14

LATIN AMERICA SOUTH 14 years of profitable

Solid financial performance Great long term

cap High End 2nd player 49 liters per cap

2003 2017 LAS EBITDA (USD) Market leader 41

15 LATIN AMERICA SOUTH 14 years of profitable growth with great long term opportunities Solid financial performance Great long term opportunities supported by a complete portfolio approach 1,520 Market leader 35 liters per cap High End 2nd player 49 liters per cap Market leader 42 liters per cap Premium LAS EBITDA (USD) Market leader 41 liters per cap Market leader 29 liters per cap Mainstream Source: Company data, Plato Logic Limited 15

16 CENTRAL AMERICA AND THE CARIBBEAN 2017 RESULTS EBITDA R$ % consolidated EBITDA Central America and the Caribbean 1,843 MM 9% Source: Company, 2017 figures 16

CENTRAL AMERICA AND THE CARIBBEAN USD 1 billion EBITDA

(USD Million) 18 million HL beer market 50% market share

0 200.0 105 214 297 360 427 30% 20% 10% 100.0 - (100.

BILLION EBITDA OPPORTUNITY EBITDA Margin from -5% to

17 CENTRAL AMERICA AND THE CARIBBEAN USD 1 billion EBITDA opportunity through organic and non organic growth EBITDA (USD Million) 18 million HL beer market 50% market share % 40% Panama as of % 20% 10% (100.0) % -10% USD 1 BILLION EBITDA OPPORTUNITY EBITDA Margin from -5% to roughly 39% with room to expand Source: Company data and estimates. 17

18 CANADA 2017 RESULTS EBITDA R$ % consolidated EBITDA Canada 2,047 MM 10% Source: Company, 2017 figures 18

19 CANADA Solid EBITDA growth with strong cash conversion EBITDA - (CAD million) #1 in Canada #1 Core #1 Premium Import #1 Craft CAGR 2003 to % Fastest Growing Brand in Canada Fastest Growing Import Brand #1 Non Alcoholic Market leader with a WINNING PORTFOLIO from mainstream to high end and near beer #1 RTD #1 Cider Company #1 Radler Source: Company data and estimates. 19

operational performance with great long term opportunities, coupled with.

20 AMBEV CREATING LONG TERM VALUE TO SHAREHOLDERS R$ 20,148 MM EBITDA 42.1% EBITDA Margin Central America and the Caribbean Latin America South Strong operational performance with great long term opportunities, coupled with RESULTS EBITDA R$ % consolidated EBITDA Canada Brazil Source: Company, 2017 figures 20

21 A SOLID FINANCIAL DISCIPLINE Creating long term shareholder value EBITDA (R$ billion) + 5.1% WORKING CAPITAL (R$ billion) ROIC (%) 40% CASHFLOW FROM OPERATING ACTIVIES (R$ billion) % % Source: Company, 2017 figures 21

Statements contained in this presentation may contain information that is forward-looking and reflects management's current view and estimates of

September 2016 2016 Statements contained in this presentation may contain information that is forward-looking and reflects management's current view and estimates of future economic circumstances, industry