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2013
JOO CASTRO NEVESChief Executive Officer
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Statements contained in this presentation may contain information that is forwreflects management's current view and estimates of future economic circum
conditions, company performance, and financial results. Any statement
capabilities, plans and assumptions contained in this presentations that do not d
facts, such as statements regarding the declarations or payment of dividends,
future operations, the implementation of principal operating and financing strat
expenditure plans, the factors or trends affecting financial condition, liquid
operations are forward-looking statements and involve a number of risks and unc
is no guarantee that these results will actually occur. The statements are assumptions and factors, including general economic and market conditions, ind
and operating factors. Any changes in such assumptions or factors could cause
differ materially from current expectations.
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AGENDABrazil: #1 Organic Growth Opportunity
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AGENDABrazil: #1 Organic Growth Opportunity
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BRAZIL HAS IMPROVED CONSIDERABLY IN THE LAST DECAREMAINS AS A COUNTRY OF DISPARITIES
Higher Index: 0,82So Caetano do Sul (SP)
Lower Index: 0,21Aroeiras (PI)
Source: PNUD, 2012 (Programa das Naes Unidas para o Desenvolvimento)
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CONSIDERABLE SOCIAL MOBILITY HAS DRIVEN (AND SHOUCONTINUE TO DRIVE) INCREASING CONSUMPTION
Source: LCA, BCGA/B: >5K R$ C1: 2,5K 5K R$ C2/D: 0,5K - 2,5K R$
%
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AS SOCIAL & ECONOMIC INDICATORS EVOLVED, BEER PER CACONSUMPTION & SHARE OF THROAT HAVE BEEN POSITIVELY
BRAZILIAN BEER SOT
Source: Euromonitor
87.1%87.7%
88.8%
89
2008 2009 2010 2
PER CAPITA (L)
Source: Plato
57.7 60.865.4
67.0 68.5
2008 2009 2010 2011 2012
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WITH REGIONAL OPPORTUNITIES TO REMAIN AS KEY PEGROWTH DRIVERS
Source: Company estimates
HDI VS. TOTAL PER
CAPITA CONSUMPTION
NO
NE
SEMW SS
NO
NE
10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.00.0
0.70
0.65
0.60
0.75
0.80
SEMW
0.85
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AND DESPITE THE SHORT TERM CHALLENGES
Source: Roper 2013
NEGATIVE EVENTS
Difficulty paying monthly bills
Difficulty paying off credit/debit 20 49
2456
CONSUMER CONFIDENCE
23
54
36
27 30
1211
3 22
Global (25) Brazil
PURCHASE INTENT
19
2810
11
22
23
25
Home
Fine Watch / Jewelry
Special Vacation
Car / Other Vehicle
Home Appliances
Homes Electronics
Personal Electronics
CUTBACKS44
57
3547
2640
2742
Dining out atrestaurants
Going out for entertainment (movies,sports events, concerts, etc.)
Household energyuse
Going out fora drink
Global
Brazil
THE BRAZILIAN CONSUMER REMAINS CONFIDENT WITH TH
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..AND SO DOES THE INDUSTRY THAT CONTINUES TO INVEHEAVILY FOR THE FUTURE
COLD BEVERAGES
INDUSTRY CAPEX(BRL BILLION)
Source: CERVBRASIL, ABIR
Cold bev
represe
GDP
Biggest
econom
Source: PWC, IBGE, BNDES,
Generat
jobs (dir
2.02.2
6.27.5
7.9
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AGAINST THIS BACKDROP, WE HAVE MANAGED TO DELIVERESULTS UNDER DIFFERENT AND CHANGING SCENARIOS
Source: Company data
INDUSTRY
GROWTH VS. LY
NET REVENUE
GROWTH VS. LY
EBITDA GROWTH
VS. LY
8.0%
12.5%
10.9%
2009
8.5%
18.4%18.0%
2010
13.9%
9.7%
3.2%
12.3%
2012
48.8% 49.9%
17.3%
9.7%
1.8%
2011
52.4% 53.2%EBITDA
ma
rgin
Brazil Beer
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THE EXECUTION OF OUR COMMERCIAL STRATEGIES AND TCONTINUED FOCUS ON OUR CORE CAPABILITIES HAVE MAWILL CONTINUE TO MAKE) THE DIFFERENCE
COMMERCIAL STRATEGIES BUILDING BLOC
World upLegacy
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AND IT ALL STARTS WITH HAVING THE BEST PRODUCTS TO THE VTYPES OF CONSUMERS IN THEIR DIFFERENT NEED STATES
Source: Segmentation
Needstate
Consumer Type
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INNOVATION AND PREMIUM WILL BE KEY DRIVERS TO CAPOPPORTUNITIES ACROSS THE DEMAND LANDSCAPE...
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INNOVATION AND PREMIUM WILL BE KEY DRIVERS TO CAPOPPORTUNITIES ACROSS THE DEMAND LANDSCAPE...
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AND OUR TARGETED INNOVATION CONTINUES: BRAHMA
Refresh Myself
Out Of Home occasions
Brahma 0.0 launch
Jan Feb Mar Apr May Jun Jul AugSep Oct NovDec
2012 2013
Industry Non alcohol volume NA MS
+6.7pp
Sep12 Sep13
Source: Nielsen
+33.6%
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AND OUR TARGETED INNOVATION CONTINUES: SKOL BEEXTREME
Amp Up
Night Out
Beats relaunchExtreme launch
NEW BOTTLE
NEW LIQUID
6.9% ABV
INNOVATION AND PREMIUM WILL BE KEY DRIVERS TO CAP
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INNOVATION AND PREMIUM WILL BE KEY DRIVERS TO CAPOPPORTUNITIES ACROSS THE DEMAND LANDSCAPE...
O C S A C AS G G
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PREMIUM PRODUCTS HAVE BEEN INCREASING WEIGHT IN CONSUMER PRODUCTS CATEGORIES
19.420.1
22.3
2012 20132011
Yogurt
10.2
10.610.9
2012 20132011
Biscuit
19.420.1
22.3
2012 20132011
Vodka
30.630.8
20122011
Cleaner
WHICH HAS ALSO BEEN THE CASE FOR BEER WITH VOL
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WHICH HAS ALSO BEEN THE CASE FOR BEER, WITH VOLSHOWING STEADY INCREASE SINCE 2011
4.1%
4.7%
5.5%5.5%4.8%
4.1%
2008 2009 2010 2011 2012 2013 YTD
WHILE DATA SHOWS THERE IS STILL PLENTY OF ROOM F
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WHILE DATA SHOWS THERE IS STILL PLENTY OF ROOM F
Premium weight vs. Other beer markets
48.4%
28.3%
24.9%
22.9% 21.9%
13.2%
SouthEast
Premium Vol. Mix
0.76 0.75 0.75 0.68 0.66
High HDI LOWHDI
Remiumvol.Mix
Source: Company Data
South
MidleWest
North
NorthEast
7.5 %
5.6 %
4.3 %
1.6 %2.7 %
HDI
Premium brand preference
5.5 %
19.1 %
Premium Vol Mix Premium Pref
SouthEast
GROWTH HAS BEEN DRIVEN PRIMARILY BY
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Source: Nielsen
YTD132012
41%39%
20112010
13%9%
200920082007
Domestic International
GROWTH HAS BEEN DRIVEN PRIMARILY BYINTERNATIONAL BRANDS
WEIGHT WITHIN PREMIUM VOLUMES (%)
59%61%77%87%91%98%99%
1% 2%23%
ALLOWING US TO LEAD THE GROWTH AMONG
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ALLOWING US TO LEAD THE GROWTH AMONGINTERNATIONAL BRANDS
J08 J09 J10 J11 J12 J13 M M
20
30
40
50
60
70
51
48
67
29Com
Source: Nielsen Retail Index
BUT THERE IS MORE TO COME WHEN WE LOOK AT THE
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BUT THERE IS MORE TO COME WHEN WE LOOK AT THE STATES OF THE BRAZILIAN CONSUMER
Savor the Moment
Ritual & Specialties
Activate Stella ArtoisChalice & Fine dinings
Bohemia(harmonization & specialties)
BUT THERE IS MORE TO COME WHEN WE LOOK AT THE
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BUT THERE IS MORE TO COME WHEN WE LOOK AT THE STATES OF THE BRAZILIAN CONSUMER
Amp Up
International Premium
BudweiserLead the international Segment
YTD12
YTD13
+47%
OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILA
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OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILACONTINUES TO DRIVE BETTER PERFORMANCE
FULL PORTFOLIO
B
INVESTING BEHINDBRAND EQUITY
OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILA
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OUR APPROACH IN NON-ALCOHOLIC BEVERAGES IS SIMILACONTINUES TO DRIVE BETTER PERFORMANCE
CLOSING GAPSTHROUGH INNOVATION
2008 2009 2010 2011 2012 YTD 13
7,47,7
8,1
8,6
9,09,6
10,7
Consistent Guaran Antarctica
Market SHARE GROWTH
Oct 13
Source: Nielsen Source: Company data
INCREASING PRESNew Catego
2012
Volume OCT13 YT
2x
AGENDA
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AGENDABrazil: #1 Organic Growth Opportunity
CONNECTING WITH CONSUMERS BEFORE DURING & AFTE
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CONNECTING WITH CONSUMERS BEFORE, DURING & AFTE2014 WORLD CUP...
In order to build a strong soccer platform, we have developed relevranging from local teams to the FIFA 2014 World Cup
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SINCE 2011 BRAHMA HAS BEEN INNOVATING ON HOW TO
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SINCE 2011 BRAHMA HAS BEEN INNOVATING ON HOW TO WITH CONSUMERS THROUGH THE SPONSORSHIP OF LOCA
STRUCTURAL INVESTMENTS
STADIUM ACTIVATION
REACHING OUT TO FANSVIA DIGITAL MEDIA
BRAN
... AND IS ALSO LEADING AN INITIATIVE TO TRANSFORM S
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... AND IS ALSO LEADING AN INITIATIVE TO TRANSFORM SIN BRAZIL...
Program Evolution(# of fans)
BRAN
157K
Jan 13
Launch
Oct13
600K
Dream
3MM
Fan Membership Program
CONNECTING WITH CONSUMERS BEFORE, DURING & AFTE
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,2014 WORLD CUP...
FIFA CONFEDERATIONS CUP WAS A UNIQUE OPPORTUNITY TO RAMPINITIATIVES AROUND BRAND EQUITY INCREMENTAL VOLUME & COR
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INITIATIVES AROUND BRAND EQUITY, INCREMENTAL VOLUME & CORIMAGE AS WE GET READY FOR 2014...
INNOVATIO
Zero
Alcohol Special EditionAluminum Bottle
Promo
EVENT HIGHLIGHTS
JUNE 15-30
16 MATCHES
6 HOST CITIES
CONNECTING WITH CONSUMERS BEFORE, DURING & AFTE
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Stadium
Media
Airports
Experienti
Off TradeOn Trade
CSR
,2014 WORLD CUP...
CONNECTING WITH CONSUMERS BEFORE, DURING & AFTE
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2014 WORLD CUP...
In order to build a strong soccer platform, we have developed relevranging from local teams to the FIFA 2014 World Cup
MAKING THE MOST OF OUR ASSETS AND EXECUTION WITH
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WILL BE KEY FOR THE FIFA 2014 WORLD CUP...
EVENT
HIGHLIGHTS
JUNE 12 JULY 13
64 MATCHES
12 HOST CITIES
FOCUS
BRANDS
MEV
WORLD CUP FOR ALL
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WORLD CUP FOR ALL
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Q&A
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