AMBEV REPORTS 2017 SECOND QUARTER RESULTS UNDER IFRS

Transcription

1 Page 1 AMBEV REPORTS 2017 SECOND QUARTER RESULTS UNDER IFRS Sã Paul, Ambev S.A. [BOVESPA: ABEV3; NYSE: ABEV] annunces tday its results fr the 2017 secnd 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 six-mnth perid ended June 30 th, 2017 filed with the CVM and submitted t the SEC. Operating and Financial Highlights Tp line perfrmance: Tp line was up 4.8% in 2Q17, driven by grwth in all ur internatinal peratins: Latin America Suth (LAS) (+36.2%), Central America and the Caribbean (CAC) (+6.9%) and Canada (+1.4%), partially impacted by Brazil (-4.1%). In Brazil, vlumes declined by 4.7%, while NR/hl was up 0.7%. In CAC, rganic vlumes were up 1.6%, with a NR/hl grwth f 4.2%, while reprted vlumes increased by 26.2% as a result f the swap f assets carried ut with ABI and ur peratins in Panama. In LAS, vlumes grew by a slid 12.2% and NR/hl was up 21.4%. In Canada, vlumes were slightly dwn (-0.4%), while NR/hl grew by 1.8%. Cst f Gds Sld (COGS): Our COGS increased by 10.6% in the quarter and, n a per hectliter basis, by 11.6%. Cash COGS (excluding depreciatin and amrtizatin) grew by 11.2% while, n a per hectliter basis, by 12.2%, mainly due t inflatinary pressures and unfavrable FX in Brazil and LAS. Selling, General & Administrative (SG&A) expenses: SG&A was up 1.3% in 2Q17 while cash SG&A (excluding depreciatin and amrtizatin) up 1.7%, belw ur weighted average inflatin (arund 5.1%), due t efficiency gains in sales & marketing and cst savings in administrative expenses. EBITDA, Grss margin and EBITDA margin: Nrmalized EBITDA reached R$ 3,943.3 millin (-0.7%) in 2Q17, with grss margin f 60.6% (-200bps) and EBITDA margin f 38.4% (-210bps). Nrmalized Net Prfit and EPS: Nrmalized Net Prfit was R$ 2,141.5 millin in 2Q17, 2.4% lwer than in 2Q16, as the EBITDA rganic decline and the negative impact f currency translatin due t the appreciatin f the Brazilian Real were partially ffset by the reductin f net financial expenses. Nrmalized EPS in the quarter was R$ Cash Generatin and CAPEX: Cash generated frm perating activities in 2Q17 was 2,424.6 (+16.5%) while CAPEX reached 751 millin (-34.8%). Year t date, cash generated frm perating activities ttaled R$ 4,409.1 millin, cmpared t a negative balance f R$ millin in the same perid f CAPEX year t date is R$ 1.3 billin (-29.5%). Pay-ut and Financial discipline: Year t date, we have paid/annunced R$ 3.6 billin in dividends. As f June 30 th, 2017, ur net cash psitin was R$ 3,821.4 millin. Financial highlights - Ambev cnslidated R$ millin 2Q16 2Q17 Reprted Organic YTD16 YTD17 Reprted Organic Ttal vlumes 35, , % -1.1% 75, , % 0.8% Net sales 10, , % 4.8% 21, , % 6.5% Grss prfit 6, , % 1.4% 14, , % -0.2% Grss margin 62.5% 60.6% -190 bps -200 bps 64.2% 60.2% -400 bps -410 bps Nrmalized EBITDA 4, , % -0.7% 9, , % -4.6% Nrmalized EBITDA margin 40.5% 38.4% -210 bps -210 bps 43.2% 38.6% -460 bps -450 bps Prfit 2, , % 5, , % Nrmalized prfit 2, , % 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 special items adjustments. Special 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 secnd quarter f 2016 (2Q16). Values in this release may nt add up due t runding.

2 Page 2 Management Cmments Cnslidated tp line increased by 4.8% in 2Q17 while EBITDA declined 0.7% in the same perid. As anticipated, this was a bridge quarter, with ur results in Brazil still affected by expected headwinds in ur COGS that will dissipate in the secnd half f In Beer Brazil, we have utperfrmed the industry fr the secnd cnsecutive quarter in terms f vlumes, amid a still challenging plitical and macrecnmic envirnment. In this cntext, we cntinued t fcus n ur five cmmercial platfrms, activating the levers under ur cntrl, alng with a strng emphasis n ur peratinal excellence: Elevate the Cre With Skl and Antarctica we expanded the traditinal June Festivals f Sã Jã (Festas Juninas) frm the Nrtheast t ther regins f Brazil, creating a new Carnival and delivering breakthrugh experiences t cnsumers. Skl has been named by Millward Brwn/BrandZ the mst valuable brand in Latin America while Brahma, Antarctica and Bhemia were cnsidered, respectively, the third, sixth and eighth mst valuable brands in Brazil. Accelerate Premium Near Beer In Hme Out f Hme Premium vlumes increased by high teens in the quarter. Budweiser, which has prudly been brewed in an unique way fr 140 years, with water, malt, rice, hps and aged ver beechwd, cntinued t experience a gd mmentum, with a duble digit vlume grwth and preference trending up. Budweiser s campaign that featured Oscar Schmidt received the Glden Lin in Cannes Festival. Oscar Schmidt was authentic and became a legend. Budweiser rewrte this stry and, in partnership with ESPN and NBA, gt Oscar t play his first NBA game at the age f 59. Near beer cntinues t be an imprtant platfrm. As a cnsumer-centric rganizatin, we see this as an pprtunity t be clser t ur cnsumers in nn-traditinal beer ccasins, enhancing the equity f ur mther brands. The 300ml returnable glass bttles vlumes grew nce again duble digits year ver year, as we cntinued t evlve in its executin in the ff-trade channel, enhancing shppers experience. This is an imprtant initiative t drive affrdability t cnsumers in a prfitable way. We have been strengthening ur psitin in the n-trade channel with ur cmplete prtfli f brands cupled with ur initiatives t step up ur service level and be even clser t ur custmers. In CSD&NANC Brazil, while we underperfrmed the industry with ur verall vlumes declining 14.1%, we psted a healthy NR/hl increase f 6.6% driven by revenue management initiatives implemented during the quarter. Further, the nn-traditinal CSD business delivered a slid vlume grwth with Liptn, Fusin and D Bem. Year t date, CSD&NANC vlumes are utperfrming the industry. Finally, we are very pleased with the remarkable perfrmance f ur internatinal peratins in 2Q17. In CAC, EBITDA went up clse t 30%, with a rbust EBITDA margin expansin, benefiting frm slid vlumes, a strng revenue management strategy and phasing f sales & marketing and administrative expenses. In LAS, while we cntinued t be pressured n csts due t FX in Argentina, we had a significant vlume grwth, delivering tp line and EBITDA increase f mre than 30%. And, in Canada, we cntinue t have mmentum in the pursuit f balanced share and prfitability, with the highest quarterly market share in 19 years and a slid NR/hl that, alng with ur cst management initiatives, led t anther quarter f EBITDA grwth and margin expansin.

3 Page 3 Still with respect t ur internatinal peratins, it is imprtant t highlight 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 in mre detail: Brazil. Net revenue in Brazil was dwn 4.1% in 2Q17 and EBITDA dwn 15.7% t R$ 2,087.2 millin, with a margin f 39.2% (-540bps). In Beer Brazil, tp line declined by 3.3% in the quarter. The beer industry fell by 2.7% in 2Q17, accrding t Nielsen. Althugh we have been able t deliver vlumes perfrmance ahead f the industry, ur vlumes declined by 1.3%, as the mainstream segment cntinued t be pressured by the adverse and vlatile macrecnmic and plitical envirnments. Premium, n the ther hand, grew high teens year ver year. NR/hl was dwn 2.0% year ver year, driven, amng ther factrs, by a negative mix, as we cntinued t use ur full prtfli f packs and brands t drive affrdability t cnsumers, including the 300ml returnable glass bttles in the ff-trade channel, that grew duble digits in the quarter. On a sequential basis, NR/hl was slightly dwn (-0,2%), in line with the usual trend f NR/HL variatin frm the first t the secnd quarter. In CSD&NANC Brazil, net revenue was dwn 8.5% in 2Q17. Accrding t Nielsen, the CSD industry declined by 9.7% while ur verall vlumes decreased by 14.1%, as cnsumers cntinued t be pressured by a depressed dispsable incme, trading dwn t B brands, pwder juices r even t tap water. NR/hl in CSD&NANC was up 6.6%, driven by revenue management initiatives implemented during the quarter. Brazil cash COGS was up 4.6% while, n a per hectliter basis, up 9.8%, mainly due t FX impacts and inflatin. In the first half f 2017, cash COGS/hl increased by 22.3%, in line with ur guidance f duble digits grwth. Brazil cash SG&A was dwn 2.8%, due t (i) flattish distributin expenses, and (ii) a decline in administrative and sales & marketing expenses, as a result f cst savings in ur nn-wrking mney as well as phasing and efficiency gains in ur wrking mney. Central America and the Caribbean (CAC). In 2Q17, EBITDA in CAC reached R$ millin (+29,7%), supprted by a strng tp line perfrmance (+6.9%) and EBITDA margin expansin (+770bps) t 38.3%. In US dllars, reprted EBITDA grew clse t 35%. We cntinued t deliver slid results in the regin. Organic vlumes went up 1.6% n a tugh cmparable f +8.8% in 2Q16. On a reprted basis, vlumes increased by 26.2%, benefiting frm the recent swap f assets carried ut with ABI and ur peratins in Panama. In Dminican Republic, we further expanded the Presidente brand executin with micr events activatins that mre than dubled year t date when cmpared t the same perid f And in Guatemala, we cntinued with the Busch Light campaign and als launched the new VBI f Brahva, creating a cnsistent cmmercial cmmunicatin f the brand. We als benefited frm ur slid financial discipline in the regin, leveraging bth csts and expenses savings, as well as frm phasing f sales & marketing and administrative expenditures, leading t expansin f EBITDA margin fr anther quarter. Latin America Suth (LAS). In 2Q17, net revenue was up 36.2% while EBITDA in the regin reached R$ millin (+33.9%), with an EBITDA margin cmpressin f 60bps t 38.7%. Vlumes were up 12.2%, primarily driven by (i) Argentina, where we had a very strng vlume perfrmance, especially in beer that grew mre than 20% year ver year; (ii) Paraguay, where vlumes cntinued t trend up as a result f the success f ur 340ml returnable glass bttle strategy; and (iii) Uruguay, as executin imprvements cupled with a favrable weather enabled us t deliver duble digits vlume grwth in bth beer and CSD businesses.

4 Page 4 EBITDA margin in LAS cmpressed 60bps in the quarter, mainly due t a 50.2% cash COGS increase (+33.9% n a hectliter basis), impacted by FX in Argentina. Canada. Tp line increased by 1.4% in the quarter with an EBITDA f R$ millin (+3.9%) and EBITDA margin expansin f 90bps t 35.7%. NR/hl was up 1.8%. Vlumes were slightly dwn (-0.4%), driven by industry sftness due t unfavrable weather, almst fully ffset by share perfrmance frm ur diversified prtfli. Our main brands perfrmed particularly well, led by (i) Bud Light being the fastest grwing brand in 2Q17 in Canada, and (ii) the high end, with grwth frm Stella Artis and the craft prtfli helping us t achieve the highest quarterly market share figure recrded in 19 years. During the quarter, ur cst management discipline played nce again an imprtant rle, translating tpline grwth int EBITDA margin expansin. Outlk The Brazilian ecnmy is recvering at a slw pace, still representing a challenge fr the beer industry in the shrt term. We acknwledge the difficult reality, but we believe in ur strategy, remaining cautiusly ptimistic fr the secnd half f the year. Further, as we will nw begin cycling mre favrable net revenue per hectliter cmps, while cash COGS/hl will be between a flattish and lw single-digit increase, we expect t resume EBITDA grwth. With that in mind, we will cntinue t put effrts in ur plan, fcusing n ur cmmercial platfrms in Brazil and pursuing cst savings and efficiency gains t psitively impact ur prfitability. Finally, having peratins utside f Brazil has already prved t be an imprtant asset. Ging frward, we cntinue t see significant tp line and EBITDA margin expansin ptential in ur peratins in CAC. In LAS, we remain cnfident in ur ability t deliver slid tp line and EBITDA, supprted by strng brands, in spite f the macr challenges in the regin. In Canada, we remain ptimistic that that we have the right prtfli that, alng with ur peratinal discipline, will cntinue t yield sustainable grwth acrss the cuntry.

5 Page 5 Ambev Cnslidated Incme Statement Cnslidated incme statement Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Net revenue 10, (723.9) , % 4.8% Cst f gds sld (COGS) (3,894.6) (21.6) (405.0) (4,048.2) 3.9% 10.6% Grss prfit 6, (450.9) , % 1.4% Selling, general and administrative (SG&A) (3,492.9) (61.1) (45.4) (3,371.4) -3.5% 1.3% Other perating incme (3.9) (0.3) (104.4) % -31.6% Nrmalized perating incme (nrmalized EBIT) 3, (223.2) (57.9) 3, % -1.7% Exceptinal items abve EBIT (22.2) (15.9) (32.1) 44.4% 73.3% Net finance results (899.9) (698.8) -22.3% Share f results f assciates nm Incme tax expense (226.6) (220.5) -2.7% Prfit 2, , % Attributable t Ambev hlders 2, , % Attributable t nn-cntrlling interests % Nrmalized prfit 2, , % Attributable t Ambev hlders 2, , % Nrmalized EBITDA 4, (272.1) (28.9) 3, % -0.7% Cnslidated incme statement Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Net revenue 21, (2,097.0) 1, , % 6.5% Cst f gds sld (COGS) (7,854.9) (49.6) (1,434.5) (8,571.3) 9.1% 18.5% Grss prfit 14, (1,329.3) (23.7) 12, % -0.2% Selling, general and administrative (SG&A) (7,089.6) (120.8) (249.0) (6,852.3) -3.3% 3.6% Other perating incme (0.3) (219.1) % -30.3% Nrmalized perating incme (nrmalized EBIT) 7, (722.5) (491.9) 6, % -6.3% Exceptinal items abve EBIT (28.5) (6.1) 10.1 (36.2) (60.8) 113.5% 129.4% Net finance results (2,071.2) (1,571.4) -24.1% Share f results f assciates % Incme tax expense (563.0) (559.0) -0.7% Prfit 5, , % Attributable t Ambev hlders 4, , % Attributable t nn-cntrlling interests % Nrmalized prfit 5, , % Attributable t Ambev hlders 4, , % Nrmalized EBITDA 9, (847.8) (432.4) 8, % -4.6%

6 Page 6 Ambev Cnslidated Results The cmbinatin f Ambev s peratins in Latin America Nrth (LAN), 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 2Q15 2Q16 2Q17 Net revenues per HL (R$) COGS per HL (R$) Q14 2Q15 2Q16 2Q Q14 2Q15 2Q16 2Q17 Nrmalized EBITDA (R$ MM) Nrmalized EBITDA margin (%) , , , , % 50% 40% 40.7% 41.6% 40.5% 38.4% % % 10% Q14 2Q15 2Q16 2Q17 0% 2Q14 2Q15 2Q16 2Q17

7 Page 7 Ambev Cnslidated We delivered during the quarter R$ 10,268.0 millin f net revenue (+4.8%) and R$ 3,943.3 millin f Nrmalized EBITDA (-0.7%). Ambev results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 35, (384.8) 35, % -1.1% Net revenue 10, (723.9) , % 4.8% Net revenue/hl (20.3) % 5.9% COGS (3,894.6) (21.6) (405.0) (4,048.2) 3.9% 10.6% COGS/hl (109.2) (12.5) (113.5) 4.0% 11.6% COGS excl. deprec.&amrt. (3,337.7) (19.1) (367.8) (3,482.1) 4.3% 11.2% COGS/hl excl. deprec. &amrt (93.6) (11.3) (97.6) 4.4% 12.2% Grss prfit 6, (450.9) , % 1.4% Grss margin 62.5% 60.6% -190 bps -200 bps SG&A excl. deprec.&amrt. (3,166.1) (55.3) (54.0) (3,065.4) -3.2% 1.7% SG&A deprec.&amrt. (326.9) (5.8) (306.0) -6.4% -2.7% SG&A ttal (3,492.9) (61.1) (45.4) (3,371.4) -3.5% 1.3% Other perating incme (3.9) (0.3) (104.4) % -31.6% Nrmalized EBIT 3, (223.2) (57.9) 3, % -1.7% Nrmalized EBIT margin 32.0% 29.9% -210 bps -210 bps Nrmalized EBITDA 4, (272.1) (28.9) 3, % -0.7% Nrmalized EBITDA margin 40.5% 38.4% -210 bps -210 bps (0.4) Ambev results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 75, , % 0.8% Net revenue 21, (2,097.0) 1, , % 6.5% Net revenue/hl (27.2) % 5.6% COGS (7,854.9) (49.6) (1,434.5) (8,571.3) 9.1% 18.5% COGS/hl (103.9) (17.9) (111.4) 7.2% 17.4% COGS excl. deprec.&amrt. (6,741.0) (43.2) (1,362.7) (7,458.3) 10.6% 20.5% COGS/hl excl. deprec. &amrt (89.1) (17.0) (96.9) 8.7% 19.3% Grss prfit 14, (1,329.3) (23.7) 12, % -0.2% Grss margin 64.2% 60.2% -400 bps -410 bps SG&A excl. deprec.&amrt. (6,455.8) (109.0) (261.8) (6,265.8) -2.9% 4.1% SG&A deprec.&amrt. (633.7) (11.7) (586.5) -7.4% -2.1% SG&A ttal (7,089.6) (120.8) (249.0) (6,852.3) -3.3% 3.6% Other perating incme (0.3) (219.1) % -30.3% Nrmalized EBIT 7, (722.5) (491.9) 6, % -6.3% Nrmalized EBIT margin 35.2% 30.7% -450 bps -430 bps Nrmalized EBITDA 9, (847.8) (432.4) 8, % -4.6% Nrmalized EBITDA margin 43.2% 38.6% -460 bps -450 bps

8 Page 8 Latin America Nrth (LAN) Our LAN regin includes Beer Brazil, CSD&NANC Brazil and CAC peratins. LAN EBITDA fr the quarter ttaled R$ 2,519.1 millin (-10.1%). LAN results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 26, (1,104.2) 25, % -4.2% Net revenue 6, (119.7) (159.7) 6, % -2.4% Net revenue/hl (4.6) % 1.8% COGS (2,504.4) (77.0) 50.9 (100.7) (2,631.3) 5.1% 4.0% COGS/hl (94.6) (0.8) 2.0 (7.9) (101.4) 7.2% 8.4% COGS excl. deprec.&amrt. (2,093.3) (67.8) 43.5 (90.9) (2,208.5) 5.5% 4.3% COGS/hl excl. deprec. &amrt (79.1) (0.8) 1.7 (6.9) (85.1) 7.6% 8.7% Grss prfit 4, (68.8) (260.4) 3, % -6.5% Grss margin 61.7% 59.2% -250 bps -260 bps SG&A excl. deprec.&amrt. (1,962.1) (96.9) (1,940.5) -1.1% -5.1% SG&A deprec.&amrt. (236.4) (10.8) (225.4) -4.7% -7.8% SG&A ttal (2,198.6) (107.7) (2,165.9) -1.5% -5.4% Other perating incme (3.5) 0.6 (135.2) % -38.3% Nrmalized EBIT 2, (46.3) (277.0) 1, % -12.7% Nrmalized EBIT margin 33.4% 29.0% -440 bps -350 bps Nrmalized EBITDA 2, (57.3) (285.1) 2, % -10.1% Nrmalized EBITDA margin 43.3% 39.0% -430 bps -340 bps - LAN results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 55, , (391.5) 56, % -0.7% Net revenue 13, (353.9) (67.6) 13, % -0.5% Net revenue/hl (6.3) % 0.2% COGS (4,989.3) (163.6) (761.5) (5,759.7) 15.4% 14.8% COGS/hl (89.9) (1.1) 2.8 (14.2) (102.4) 13.9% 15.6% COGS excl. deprec.&amrt. (4,154.3) (143.3) (748.9) (4,912.4) 18.3% 17.4% COGS/hl excl. deprec. &amrt (74.9) (1.0) 2.4 (13.8) (87.4) 16.7% 18.2% Grss prfit 8, (199.2) (829.1) 8, % -9.1% Grss margin 63.9% 58.3% -560 bps -570 bps SG&A excl. deprec.&amrt. (4,003.3) (192.0) (4,044.8) 1.0% -1.9% SG&A deprec.&amrt. (454.4) (21.8) (447.1) -1.6% -4.0% SG&A ttal (4,457.7) (213.8) (4,492.0) 0.8% -2.1% Other perating incme (285.6) % -36.3% Nrmalized EBIT 5, (117.2) (1,015.8) 4, % -19.6% Nrmalized EBIT margin 37.2% 29.4% -780 bps -720 bps Nrmalized EBITDA 6, (147.9) (1,022.0) 5, % -15.7% Nrmalized EBITDA margin 46.6% 38.8% -780 bps -720 bps

9 Page 9 Ambev Brazil In 2Q17, we delivered R$ 2,087.2 millin (-15.7%) f Nrmalized EBITDA in Brazil, with an EBITDA margin f 39.2% (-540bps). Net revenue was dwn 4.1%, with vlumes declining by 4.7% and NR/hl increasing by 0.7%. Cash COGS was up 4.6%, driven by vlume decline and a 9.8% increase in cash COGS/hl. SG&A (excluding depreciatin and amrtizatin) was dwn 2.8% in the quarter. Ambev Brazil results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 24, (1,143.0) 22, % -4.7% Net revenue 5, (227.6) 5, % -4.1% Net revenue/hl % 0.7% COGS (2,064.2) - - (77.7) (2,141.9) 3.8% 3.8% COGS/hl (85.6) - - (7.6) (93.2) 8.9% 8.9% COGS excl. deprec.&amrt. (1,703.3) - - (78.5) (1,781.9) 4.6% 4.6% COGS/hl excl. deprec. &amrt (70.6) - - (6.9) (77.5) 9.8% 9.8% Grss prfit 3, (305.3) 3, % -8.8% Grss margin 62.8% 59.8% -300 bps -300 bps SG&A excl. deprec.&amrt. (1,726.2) (1,677.1) -2.8% -2.8% SG&A deprec.&amrt. (207.7) (189.0) -9.0% -9.0% SG&A ttal (1,934.0) (1,866.1) -3.5% -3.5% Other perating incme (133.1) % -37.6% Nrmalized EBIT 1, (370.5) 1, % -19.4% Nrmalized EBIT margin 34.4% 28.9% -550 bps -550 bps Nrmalized EBITDA 2, (390.1) 2, % -15.7% Nrmalized EBITDA margin 44.6% 39.2% -540 bps -540 bps - Ambev Brazil results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 50, (456.6) 50, % -0.9% Net revenue 11, (191.5) 11, % -1.6% Net revenue/hl (1.7) % -0.7% COGS (4,077.2) - - (729.2) (4,806.4) 17.9% 17.9% COGS/hl (80.1) - - (15.2) (95.2) 19.0% 19.0% COGS excl. deprec.&amrt. (3,365.5) - - (713.9) (4,079.4) 21.2% 21.2% COGS/hl excl. deprec. &amrt (66.1) - - (14.7) (80.8) 22.3% 22.3% Grss prfit 7, (920.7) 6, % -11.9% Grss margin 65.5% 58.6% -690 bps -690 bps SG&A excl. deprec.&amrt. (3,520.7) (3,498.9) -0.6% -0.6% SG&A deprec.&amrt. (405.0) (377.2) -6.9% -6.9% SG&A ttal (3,925.7) (3,876.0) -1.3% -1.3% Other perating incme (272.9) % -35.2% Nrmalized EBIT 4, (1,143.9) 3, % -25.0% Nrmalized EBIT margin 38.8% 29.6% -920 bps -920 bps Nrmalized EBITDA 5, (1,156.4) 4, % -20.3% Nrmalized EBITDA margin 48.2% 39.1% -910 bps -910 bps

10 Page 10 Beer Brazil In 2Q17, EBITDA fr Beer Brazil was R$ millin (-13.0%) with an EBITDA margin cmpressin f 460bps t 40.8%. Net revenue was dwn 3.3% in the quarter. The beer industry declined by 2.7%, accrding t Nielsen and, even thugh we have utperfrmed the industry, ur vlumes decreased by 1.3%, as the mainstream segment cntinued t be pressured by adverse and vlatile macrecnmic and plitical envirnments. Premium, n the ther hand, grew high teens in the quarter. NR/hl decreased by 2.0%, driven, amng ther factrs, by a negative mix, as we cntinued t use ur full prtfli f packs and brands t drive affrdability t cnsumers, including the 300ml returnable glass bttles in the ff-trade channel, that grew duble digits in the quarter. On a sequential basis, NR/hl was slightly dwn (-0,2%), in line with the usual trend f NR/HL variatin frm the first t the secnd quarter. Cash COGS/hl increased by 7.1%, driven by verall inflatin and FX negative impact, partially ffset by cmmdities prices. Cash SG&A was dwn 3.8% as a result f (i) flattish distributin expenses, and (ii) a decline in administrative and sales & marketing expenses. Beer Brazil results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 17, (229.5) 17, % -1.3% Net revenue 4, (155.2) 4, % -3.3% Net revenue/hl (5.4) % -2.0% COGS (1,634.0) - - (87.3) (1,721.3) 5.3% 5.3% COGS/hl (92.5) - - (6.2) (98.8) 6.7% 6.7% COGS excl. deprec.&amrt. (1,335.5) - - (76.2) (1,411.7) 5.7% 5.7% COGS/hl excl. deprec. &amrt (75.6) - - (5.4) (81.0) 7.1% 7.1% Grss prfit 3, (242.5) 2, % -7.9% Grss margin 65.2% 62.1% -310 bps -310 bps SG&A excl. deprec.&amrt. (1,514.7) (1,457.3) -3.8% -3.8% SG&A deprec.&amrt. (179.5) (170.3) -5.1% -5.1% SG&A ttal (1,694.2) (1,627.6) -3.9% -3.9% Other perating incme (104.2) % -36.9% Nrmalized EBIT 1, (280.1) 1, % -16.9% Nrmalized EBIT margin 35.2% 30.3% -490 bps -490 bps Nrmalized EBITDA 2, (278.2) 1, % -13.0% Nrmalized EBITDA margin 45.4% 40.8% -460 bps -460 bps - 0.0% - 0.0% 0.0% 0.0% Beer Brazil results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 37, , % 1.2% Net revenue 10, (94.6) 9, % -0.9% Net revenue/hl (5.7) % -2.1% COGS (3,233.4) - - (601.8) (3,835.2) 18.6% 18.6% COGS/hl (86.2) - - (14.8) (101.0) 17.2% 17.2% COGS excl. deprec.&amrt. (2,633.0) - - (580.5) (3,213.4) 22.0% 22.0% COGS/hl excl. deprec. &amrt (70.2) - - (14.4) (84.6) 20.6% 20.6% Grss prfit 6, (696.4) 6, % -10.3% Grss margin 67.7% 61.3% -640 bps -640 bps SG&A excl. deprec.&amrt. (3,091.6) (3,033.9) -1.9% -1.9% SG&A deprec.&amrt. (338.6) (338.0) -0.2% -0.2% SG&A ttal (3,430.2) (3,371.9) -1.7% -1.7% Other perating incme (218.2) % -35.2% Nrmalized EBIT 3, (856.4) 3, % -21.6% Nrmalized EBIT margin 39.6% 31.4% -820 bps -820 bps Nrmalized EBITDA 4, (835.6) 4, % -17.0% Nrmalized EBITDA margin 49.0% 41.0% -800 bps -800 bps

11 Page 11 CSD & NANC Brazil In Brazil CSD&NANC, EBITDA was R$ millin (-32.6%) in the 2Q17, with an EBITDA margin f 29.7% (- 1070bps). Net revenue was dwn 8.5%. Accrding t Nielsen, the CSD&NANC industry declined by 9.7% while ur vlumes decreased by 14.1%, as cnsumers cntinued t be pressured by a depressed dispsable incme, trading dwn t B brands, pwder juices r even t tap water. NR/hl was up 6.6%, driven by ur revenue management initiatives implemented during the quarter. Cash COGS/hl increased by 17.2%, impacted by inflatin, FX and cmmdity prices. Cash SG&A was up 3.9%, led by an increase in sales & marketing and higher distributin expenses, due t the revisin f cst allcatin between the Beer and CSD&NANC businesses t better reflect the CSD&NANC peratins. CSD&Nanc Brazil results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 6, (913.5) 5, % -14.1% Net revenue (72.4) % -8.5% Net revenue/hl % 6.6% COGS (430.2) (420.6) -2.2% -2.2% COGS/hl (66.6) - - (9.2) (75.8) 13.9% 13.9% COGS excl. deprec.&amrt. (367.8) - - (2.3) (370.2) 0.6% 0.6% COGS/hl excl. deprec. &amrt (56.9) - - (9.8) (66.7) 17.2% 17.2% Grss prfit (62.8) % -14.9% Grss margin 49.5% 46.0% -350 bps -350 bps SG&A excl. deprec.&amrt. (211.5) - - (8.3) (219.8) 3.9% 3.9% SG&A deprec.&amrt. (28.3) (18.7) -33.8% -33.8% SG&A ttal (239.8) (238.5) -0.5% -0.5% Other perating incme (28.9) % -40.3% Nrmalized EBIT (90.4) % -35.8% Nrmalized EBIT margin 29.7% 20.9% -880 bps -880 bps Nrmalized EBITDA (111.9) % -32.6% Nrmalized EBITDA margin 40.4% 29.7% bps bps - 0.0% - 0.0% 0.0% 0.0% CSD&Nanc Brazil results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 13, (908.8) 12, % -6.8% Net revenue 1, (96.9) 1, % -5.4% Net revenue/hl % 1.5% COGS (843.8) - - (127.4) (971.2) 15.1% 15.1% COGS/hl (63.0) - - (14.8) (77.7) 23.5% 23.5% COGS excl. deprec.&amrt. (732.5) - - (133.4) (865.9) 18.2% 18.2% COGS/hl excl. deprec. &amrt (54.7) - - (14.7) (69.3) 26.8% 26.8% Grss prfit (224.3) % -23.5% Grss margin 53.1% 43.0% bps bps SG&A excl. deprec.&amrt. (429.2) - - (35.7) (464.9) 8.3% 8.3% SG&A deprec.&amrt. (66.4) (39.2) -41.0% -41.0% SG&A ttal (495.5) - - (8.5) (504.1) 1.7% 1.7% Other perating incme (54.7) % -35.3% Nrmalized EBIT (287.5) % -46.8% Nrmalized EBIT margin 34.2% 19.2% bps bps Nrmalized EBITDA (320.7) % -40.5% Nrmalized EBITDA margin 44.0% 27.7% bps bps

12 Page 12 Central America and the Caribbean (CAC) Our peratins in the Central America and the Caribbean delivered an EBITDA f R$ millin (+29.7%) in the quarter, with an EBITDA margin f 38.3% (+770 bps). Our tp line increased by 6.9% in 2Q17, explained by a 1.6% vlume rganic grwth cupled with a NR/hl increase f 4.2%. On a reprted basis, vlumes were up 26.2%, benefitting frm the recent swap f assets carried ut with ABI and ur peratins in Panama. In Dminican Republic, we further expanded the Presidente brand executin thrugh new clers and marketing materials alng with micr events activatin that mre than dubled year t date when cmpared t the same perid f In Guatemala, we cntinued with the Busch Light campaign and als launched the new VBI f Brahva, creating a cnsistent cmmercial cmmunicatin f the brand. EBITDA perfrmance was als driven by ur slid cst management discipline, with cash SG&A declining 21.6%, due t bth csts and expenses savings, as well as t phasing f sales & marketing and administrative expenditures. 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 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ttal ('000 hl) 2, , % 1.6% Net revenue (119.7) , % 6.9% Net revenue/hl (14.4) (40.4) % 4.2% COGS (440.3) (77.0) 50.9 (23.0) (489.4) 11.2% 5.2% COGS/hl (187.4) (5.5) (165.1) -11.9% 2.9% COGS excl. deprec.&amrt. (390.0) (67.8) 43.5 (12.4) (426.6) 9.4% 3.2% COGS/hl excl. deprec. &amrt (166.0) (2.1) (143.9) -13.3% 1.3% Grss prfit (68.8) % 8.3% Grss margin 55.1% 56.6% 150 bps 70 bps SG&A excl. deprec.&amrt. (235.9) (96.9) (263.4) 11.7% -21.6% SG&A deprec.&amrt. (28.7) (10.8) 3.5 (0.4) (36.4) 27.0% 1.4% SG&A ttal (264.6) (107.7) (299.8) 13.3% -19.1% Other perating incme/expenses (1.8) (3.5) 0.6 (2.0) (6.7) nm 115.2% Nrmalized EBIT (46.3) % 34.1% Nrmalized EBIT margin 28.0% 29.5% 150 bps 710 bps Nrmalized EBITDA (57.3) % 29.7% Nrmalized EBITDA margin 36.0% 38.3% 230 bps 770 bps (0.08) CAC results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ttal ('000 hl) 4, , , % 1.4% Net revenue 1, (353.9) , % 6.2% Net revenue/hl (15.6) (61.5) % 3.8% COGS (912.1) (163.6) (32.3) (953.3) 4.5% 3.5% COGS/hl (200.8) (3.5) (165.6) -17.5% 1.7% COGS excl. deprec.&amrt. (788.8) (143.3) (35.1) (833.1) 5.6% 4.4% COGS/hl excl. deprec. &amrt (173.7) (4.2) (144.7) -16.7% 2.4% Grss prfit 1, (199.2) , % 8.4% Grss margin 54.4% 56.4% 200 bps 110 bps SG&A excl. deprec.&amrt. (482.5) (192.0) (546.0) 13.1% -12.0% SG&A deprec.&amrt. (49.4) (21.8) 9.9 (8.7) (70.0) 41.6% 17.5% SG&A ttal (532.0) (213.8) (615.9) 15.8% -9.2% Other perating incme/expenses (12.7) % nm Nrmalized EBIT (117.2) % 22.9% Nrmalized EBIT margin 28.0% 28.3% 30 bps 440 bps Nrmalized EBITDA (147.9) % 18.4% Nrmalized EBITDA margin 36.6% 37.0% 40 bps 420 bps

13 Page 13 Latin America Suth (LAS) LAS EBITDA increased by 33.9% in 2Q17 t R$ millin, with an EBITDA margin decrease f 60 bps, t 38.7%. Our vlumes grew by 12.2%, mainly driven by (i) Argentina, where we had a very strng vlume perfrmance, especially in beer that grew mre than 20% year ver year; (ii) Paraguay, where vlumes cntinued t trend up as a result f the success f ur 340ml returnable glass bttle strategy; and (iii) Uruguay as executin imprvements cupled with a favrable weather enabled us t deliver duble digits vlume grwth in bth beer and CSD businesses. Tp line was up 36.2% with a NR/hl increase f 21.4%. Cash COGS grew by 50.2% while, n a hectliter basis, by 33.9%, mainly driven by higher inflatin and negative currency impact. Cash SG&A increased by 28.8%, adversely impacted by inflatinary pressures mainly in Argentina. The scpe change in LAS refers t the terminatin f ur peratins in Clmbia, Peru and Ecuadr as a result f the swap f assets carried ut with ABI n December 31 st, LAS results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 6,201.8 (202.5) , % 12.2% Net revenue 1,813.4 (81.7) (273.0) , % 36.2% Net revenue/hl (3.7) (40.6) % 21.4% COGS (728.1) (304.6) (861.2) 18.3% 45.3% COGS/hl (117.4) (33.1) (128.0) 9.0% 29.5% COGS excl. deprec.&amrt. (621.3) (286.9) (758.8) 22.1% 50.2% COGS/hl excl. deprec. &amrt (100.2) (32.3) (112.7) 12.6% 33.9% Grss prfit 1,085.4 (25.8) (157.4) , % 30.5% Grss margin 59.9% 58.7% -120 bps -260 bps SG&A excl. deprec.&amrt. (511.6) (135.3) (527.5) 3.1% 28.8% SG&A deprec.&amrt. (70.8) (7.9) (62.6) -11.6% 12.0% SG&A ttal (582.4) (143.2) (590.1) 1.3% 26.7% Other perating incme/expenses (15.7) (0.4) (0.7) % % Nrmalized EBIT (69.3) % 40.0% Nrmalized EBIT margin 26.9% 30.8% 390 bps 80 bps Nrmalized EBITDA (95.9) % 33.9% Nrmalized EBITDA margin 36.7% 38.7% 200 bps -60 bps - LAS results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 15,218.8 (399.8) - 1, , % 6.8% Net revenue 4,787.3 (169.5) (1,186.4) 1, , % 30.7% Net revenue/hl (2.9) (75.0) % 22.5% COGS (1,772.3) (705.3) (1,921.1) 8.4% 42.6% COGS/hl (116.5) (37.5) (121.4) 4.3% 33.6% COGS excl. deprec.&amrt. (1,562.4) (657.6) (1,722.9) 10.3% 45.1% COGS/hl excl. deprec. &amrt (102.7) (35.3) (108.9) 6.1% 35.9% Grss prfit 3,015.0 (52.5) (746.8) , % 24.1% Grss margin 63.0% 60.4% -260 bps -330 bps SG&A excl. deprec.&amrt. (1,180.8) (308.3) (1,125.5) -4.7% 28.2% SG&A deprec.&amrt. (141.1) (24.9) (123.0) -12.9% 19.0% SG&A ttal (1,322.0) (333.2) (1,248.4) -5.6% 27.2% Other perating incme/expenses (43.4) 0.9 (1.1) % % Nrmalized EBIT 1, (438.2) , % 25.5% Nrmalized EBIT margin 34.5% 34.8% 30 bps -150 bps Nrmalized EBITDA 2, (516.4) , % 25.0% Nrmalized EBITDA margin 41.8% 41.4% -40 bps -190 bps

14 Page 14 Canada In Canada, we delivered R$ millin f EBITDA (+3.9%), while ur EBITDA margin increased 90bps t 35.7%. Tp line was up 1.4%, as vlume decline was mre than ffset by a net revenue per hectliter grwth f 1.8% year ver year. Vlumes were slightly dwn (-0.4%), driven by industry sftness due t unfavrable weather almst fully ffset by cntinued slid brand perfrmance. Bud Light led the way as the fastest grwing brand in Canada while the high end segment benefited frm a strng perfrmances by Stella Artis and ur craft prtfli, helping us t achieve the highest quarterly market share figure since Cash COGS decreased by 1.6% and, n a per hectliter basis, by 1.2%, primarily driven by cst absrptin frm increased prductin as well as cst efficiencies within ur imprted prtfli. Canada results Currency Organic R$ millin 2Q16 Scpe Translatin Grwth 2Q17 Reprted Organic Vlume ('000 hl) 2, (11.1) 2, % -0.4% Net revenue 2, (331.3) , % 1.4% Net revenue/hl (0.5) (110.9) % 1.8% COGS (662.1) (0.5) (555.7) -16.1% 0.0% COGS/hl (221.1) (0.7) (186.1) -15.8% 0.3% COGS excl. deprec.&amrt. (623.1) (0.5) (514.9) -17.4% -1.6% COGS/hl excl. deprec. &amrt (208.1) (172.4) -17.1% -1.2% Grss prfit 1, (224.7) , % 2.2% Grss margin 67.4% 67.9% 50 bps 50 bps SG&A excl. deprec.&amrt. (692.3) (0.1) (18.9) (597.4) -13.7% 2.7% SG&A deprec.&amrt. (19.6) (1.9) (18.0) -8.4% 9.5% SG&A ttal (711.9) (0.1) (20.8) (615.4) -13.6% 2.9% Other perating incme/expenses (5.7) 0.1 (0.2) % % Nrmalized EBIT (107.5) % 2.5% Nrmalized EBIT margin 32.0% 32.3% 30 bps 40 bps Nrmalized EBITDA (118.8) % 3.9% Nrmalized EBITDA margin 34.9% 35.7% 80 bps 90 bps - Canada results Currency Organic R$ millin YTD16 Scpe Translatin Grwth YTD17 Reprted Organic Vlume ('000 hl) 4, (28.7) 4, % -0.6% Net revenue 3, (556.7) , % 1.8% Net revenue/hl (0.3) (113.3) % 2.4% COGS (1,093.3) (2.9) (890.5) -18.5% -2.9% COGS/hl (221.6) (0.1) (181.2) -18.2% -2.4% COGS excl. deprec.&amrt. (1,024.3) (2.8) (823.0) -19.7% -4.3% COGS/hl excl. deprec. &amrt (207.6) (0.1) (167.4) -19.4% -3.7% Grss prfit 2, (383.3) , % 4.1% Grss margin 67.3% 68.8% 150 bps 150 bps SG&A excl. deprec.&amrt. (1,271.7) (3.9) (33.2) (1,095.5) -13.9% 2.6% SG&A deprec.&amrt. (38.2) (0.0) (16.4) -57.0% -48.6% SG&A ttal (1,309.9) (4.0) (14.6) (1,111.9) -15.1% 1.1% Other perating incme/expenses (12.2) 0.5 (0.4) % % Nrmalized EBIT (0.6) (167.1) % 9.9% Nrmalized EBIT margin 27.8% 29.9% 210 bps 220 bps Nrmalized EBITDA 1,037.4 (0.5) (183.5) % 8.2% Nrmalized EBITDA margin 31.0% 32.9% 190 bps 200 bps

15 Page 15 Other perating incme/(expense) Other perating incme ttaled R$ millin in 2Q17 (-32.8%), mainly driven by gvernment grants related t State VAT lng-term tax incentives that were dwn year ver year due t (i) the expiratin f VAT Gvernment Grants Agreements in 4Q16, and (ii) revenue gegraphic mix. Other perating incme/(expenses) 2Q16 2Q17 YTD16 YTD17 R$ millin Gvernment grants/npv f lng term fiscal incentives (Additins t)/reversals f prvisins (6.6) (17.2) (28.9) (27.7) Net gain n dispsal f prperty, plant and equipment and intangible assets Net ther perating incme/(expenses) (5.4) Exceptinalitems During the secnd quarter we recrded an expense f R$ 32.1 millin in exceptinal items (as cmpared t R$ 22.2 millin in 2Q16). Exceptinal items 2Q16 2Q17 YTD16 YTD17 R$ millin Restructuring (14.2) (31.7) (20.5) (59.7) Csts f new acquisitin (8.0) (0.4) (8.0) (1.1) Other exceptinal items (22.2) (32.1) (28.5) (60.8)

16 Page 16 Net finance results Net finance results ttaled an expense f R$ millin in 2Q17 (cmpared t a R$ millin expense in 2Q16), 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$ 150 millin related t the put ptin assciated with ur investment in the Dminican Republic; (iii) R$ 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 69.6%, as expected, as a cnsequence f lwer carry csts; (iv) Lsses n nn-derivative instruments f R$ millin, mainly related t FX translatin; and (v) R$ millin f ther financial expenses. Net finance results 2Q16 2Q17 YTD16 YTD17 R$ millin Interest incme Interest expenses (357.9) (389.6) (718.9) (791.9) Gains/(lsses) n derivative instruments (465.2) (141.3) (882.6) (387.9) Gains/(lsses) n nn-derivative instruments (38.8) (101.2) (284.1) (179.6) Taxes n financial transactins (47.3) (33.6) (90.6) (71.6) Other financial incme/(expenses), net (94.3) (150.7) (383.7) (366.8) Net finance results (899.9) (698.8) (2,071.2) (1,571.4) As f June 30 th, 2017 we held a net cash psitin f R$ (up frm R$ 2,763.3 millin as f December 31 st, 2016). Cnslidated debt crrespnded t R$ 4,917.6 millin whereas cash and cash equivalents less bank verdrafts ttaled R$ 8,730.3 millin, up frm R$ 7,876.8 millin as f December 31 st, December 31 st, 2016 June 30 th, 2017 Debt Breakdwn Current Nn-current Ttal Current Nn-current Ttal Lcal Currency , , ,373.6 Freign Currency 2, , , ,544.0 Cnslidated Debt 3, , , , , ,917.6 Cash and Cash Equivalents less Bank Overdrafts 7, ,730.3 Current Investment Securities Net Debt/ (Cash) (2,763.3) (3,821.4)

17 Page 17 Prvisin fr incme tax & scial cntributin Effective tax rate was 9.4% in line with 2Q16, as a lwer weighted nminal rate f 26.4% (versus 29.5% in 2Q16) was adversely impacted by a ne-time tax adjustment. Year t date, ur effective tax rate is 11.2% cmpared t 10.0% in the first half f The table belw shws the recnciliatin fr incme tax and scial cntributin prvisin. Incme tax and scial cntributin R$ millin 2Q16 2Q17 YTD16 YTD17 Prfit befre tax 2, , , ,973.6 Adjustment n taxable basis Nn-taxable net financial and ther incme (133.6) (63.2) (263.6) (168.0) Gverment grants (VAT) (383.0) (415.0) (724.1) (849.4) Share f results f assciates (0.4) (5.3) (7.8) (6.3) Expenses nt deductible (59.5) Freign prfits taxed in Brazil (289.7) 1,008.1 (254.9) 2, , , ,725.5 Aggregated weighted nminal tax rate 29.5% 26.4% 30.3% 28.3% Taxes nminal rate (772.6) (398.7) (1,852.0) (1,054.3) Adjustment n tax expense Tax benefit - interest n sharehlders' equity , Tax benefit - amrtizatin n tax bks Other tax adjustments 85.2 (237.1) 99.3 (240.7) Incme tax and scial cntributin expense (226.6) (220.5) (563.0) (559.0) Effective tax rate 9.4% 9.4% 10.0% 11.2% Sharehlding structure The table belw summarizes Ambev S.A. s sharehlding structure as f June 30 th, Ambev S.A.'s sharehlding structure ON %Outs Anheuser-Busch InBev 9,726,265, % FAHZ 1,605,582, % Market 4,375,329, % Outstanding 15,707,176, % Treasury 10,438,917 TOTAL 15,717,615,419 Free flat BM&FBvespa 3,042,693, % Free flat NYSE 1,332,635, %

18 Page 18 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 2Q16 2Q17 YTD16 YTD17 Prfit - Ambev hlders 2, , , ,212.3 Nn-cntrlling interest Incme tax expense Prfit befre taxes 2, , , ,973.6 Share f results f assciates (0.4) (5.3) (7.8) (6.3) Net finance results , ,571.4 Exceptinal items Nrmalized EBIT 3, , , ,599.5 Depreciatin & amrtizatin - ttal , ,700.0 Nrmalized EBITDA 4, , , ,299.5

19 Page 19 Q Earnings Cnference Call Speakers: Language: Date: Time: Bernard Paiva Chief Executive Officer Ricard Rittes Chief Financial and Investr Relatins Officer English July 27 th, 2017 (Thursday) 12:00 (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.

20 Page 20 Ambev - Segment financial infrmatin Organic results Ambev Brazil Beer Brazil CSD & NANC Brazil Ttal Ambev Brazil 2Q16 2Q17 % 2Q16 2Q17 % 2Q16 2Q17 % Vlumes (000 hl) 17,660 17, % 6,462 5, % 24,122 22, % R$ millin Net sales 4, , % % 5, , % % f ttal 45.3% 44.3% 8.2% 7.6% 53.5% 51.9% COGS (1,634.0) (1,721.3) 5.3% (430.2) (420.6) -2.2% (2,064.2) (2,141.9) 3.8% % f ttal 42.0% 42.5% 11.0% 10.4% 53.0% 52.9% Grss prfit 3, , % % 3, , % % f ttal 47.3% 45.4% 6.5% 5.8% 53.8% 51.2% SG&A (1,694.2) (1,627.6) -3.9% (239.8) (238.5) -0.5% (1,934.0) (1,866.1) -3.5% % f ttal 48.5% 48.3% 6.9% 7.1% 55.4% 55.4% Other perating incme/(expenses) % % % % f ttal 85.3% 80.1% 21.7% 19.3% 107.0% 99.4% Nrmalized EBIT 1, , % % 1, , % % f ttal 49.9% 44.8% 7.6% 5.3% 57.5% 50.1% Nrmalized EBITDA 2, , % % 2, , % % f ttal 50.7% 47.1% 8.2% 5.9% 58.9% 52.9% % f net sales Net sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% COGS -34.8% -37.9% -50.5% -54.0% -37.2% -40.2% Grss prfit 65.2% 62.1% 49.5% 46.0% 62.8% 59.8% SG&A -36.0% -35.8% -28.2% -30.6% -34.8% -35.0% Other perating incme/(expenses) 6.0% 3.9% 8.4% 5.5% 6.4% 4.2% Nrmalized EBIT 35.2% 30.3% 29.7% 20.9% 34.4% 28.9% Nrmalized EBITDA 45.4% 40.8% 40.4% 29.7% 44.6% 39.2% Per hectliter - (R$/hl) Net sales % % % COGS (92.5) (98.8) 6.7% (66.6) (75.8) 13.9% (85.6) (93.2) 8.9% Grss prfit % % % SG&A (95.9) (93.4) -2.7% (37.1) (43.0) 15.8% (80.2) (81.2) 1.3% Other perating incme/(expenses) % % % Nrmalized EBIT % % % Nrmalized EBITDA % % % Ambev - Segment financial infrmatin Organic results LAS CAC Canada Ambev Operatins Operatins Operatins Cnslidated 2Q16 2Q17 % 2Q16 2Q17 % 2Q16 2Q17 % 2Q16 2Q17 % Vlumes (000 hl) 6,202 6, % 2,350 2, % 2,995 2, % 35,668 35, % R$ millin Net sales 1, , % , % 2, , % 10, , % % f ttal 17.5% 20.3% 9.5% 11.0% 19.6% 16.8% 100.0% 100.0% COGS (728.1) (861.2) 45.3% (440.3) (489.4) 5.2% (662.1) (555.7) 0.0% (3,894.6) (4,048.2) 10.6% % f ttal 18.7% 21.3% 11.3% 12.1% 17.0% 13.7% 100.0% 100.0% Grss prfit 1, , % % 1, , % 6, , % % f ttal 16.7% 19.7% 8.3% 10.3% 21.1% 18.9% 100.0% 100.0% SG&A (582.4) (590.1) 26.7% (264.6) (299.8) -19.1% (711.9) (615.4) 2.9% (3,492.9) (3,371.4) 1.3% % f ttal 16.7% 17.5% 7.6% 8.9% 20.4% 18.3% 100.0% 100.0% Other perating incme/(expenses) (15.7) % (1.8) (6.7) 115.2% (5.7) % % % f ttal -4.7% 3.1% -0.5% -3.0% -1.7% 0.6% 100.0% 100.0% Nrmalized EBIT % % % 3, , % % f ttal 14.7% 20.9% 8.3% 10.8% 19.6% 18.2% 100.0% 100.0% Nrmalized EBITDA % % % 4, , % % f ttal 15.8% 20.5% 8.4% 11.0% 16.9% 15.7% 100.0% 100.0% % f net sales Net sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% COGS -40.1% -41.3% -44.9% -43.4% -32.6% -32.1% -37.5% -39.4% Grss prfit 59.9% 58.7% 55.1% 56.6% 67.4% 67.9% 62.5% 60.6% SG&A -32.1% -28.3% -27.0% -26.6% -35.1% -35.6% -33.7% -32.8% Other perating incme/(expenses) -0.9% 0.3% -0.2% -0.6% -0.3% 0.1% 3.2% 2.2% Nrmalized EBIT 26.9% 30.8% 28.0% 29.5% 32.0% 32.3% 32.0% 29.9% Nrmalized EBITDA 36.7% 38.7% 36.0% 38.3% 34.9% 35.7% 40.5% 38.4% Per hectliter - (R$/hl) Net sales % % % % COGS (117.4) (128.0) 29.5% (187.4) (165.1) 2.9% (221.1) (186.1) 0.3% (109.2) (113.5) 11.5% Grss prfit % % % % SG&A (93.9) (87.7) 13.0% (112.6) (101.1) -16.6% (237.7) (206.1) 3.3% (97.9) (94.5) 2.4% Other perating incme/(expenses) (2.5) % (0.8) (2.3) 88.1% (1.9) % % Nrmalized EBIT % % % % Nrmalized EBITDA % % % %