Ambev Sa · BMFBOVESPA:ABEV3

Ambev Sa — Barclays conference 2012

13 slides from Ambev Sa's conference presentation, May 9, 2012

  1. Slide 1: Playing differently

    ambev 2012 Playing differently

  2. Slide 2: Forward-looking statements disclaimer

    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 assu

  3. Slide 3: Ambev Strategic Pillars

    Ambev Strategic Pillars Commercial Strategy Productivity • Liquid & Packaging Innovation • Cost/HI below inflation • Sports Platform • ZBB focus • Brand Health • Negative Working Capital • NENO & RGB strategies Relationship Relationship • Industry • Governments • Antitrust • NGO’s

  4. Slide 4: Productivity: strong costs control and packaging innovation

    Productivity: strong costs control and packaging innovation  Strong costs control increases  New packaging portfolio improves margin... productivity at lower costs... Average beer production cost vs inflation  1L RGB launch in 2008: 2008-2011 accumulated (%) • reduced costs of packaging 19% (arou

  5. Slide 5: Commercial Strategy: package innovation is an international trend

    Commercial Strategy: package innovation is an international trend  The beer industry is adopting this strategy around the world to increase product differentiation  Competitors in Brazil are also following this trend • http://www.kirinholdings.co.jp/english/company/business/overseas.html • http://

  6. Slide 6: Commercial Strategy: Ambev strategy focused on...

    Commercial Strategy: Ambev strategy focused on...  Marketing and product differentiation  Increase brand equity  Multiple choices to customers in a higher complex demand  Different consumption occasions  Several packaging solutions are a trend in consumer goods, including beverages SKOL: 2005:

  7. Slide 7: Commercial Strategy: several launches in the last years

    Commercial Strategy: several launches in the last years  Packaging portfolio varies according to brand positioning Brahma 1L RGB 1L RGB Fresh 1L RGB 300ml Brahma 300ml Fresh LN RGB RGB 473 ml Sleek Skol Brahma can 360 Copaço 1L RGB 1L RGB Bohemia Sub Zero Stella Bohemia Swiss Artois 1L Oaken Draft

  8. Slide 8: Commercial Strategy: beer market open to innovation

    Commercial Strategy: beer market open to innovation  Premium beer growing: new tastes  Brazilian market of premium beer is still being developed  Relevant growth in 2011 Premium Beer weight as a % of total Brazil beer revenues on premise 10,0% 9,5% 9,0% 8,5% 8,0% 7,5% 7,0% 6,5% 6,0% va l ue Sourc

  9. Slide 9: Commercial Strategy: beer market propicious to innovation

    Light beer 1975 Aluminium cans Ale bber Holiday Beer to innovation 7oz bottles Source: Lee-Smith e Grim (2003). Beerball Dark beer Slimbottle Bock beer Non-alcoholic beer  New products and packages Long neck Maltliquor Flavored beer Lager beer Low alcohol beer Packaged Draft countries, with positiv

  10. Slide 10: Commercial Strategy: First mover advantages

    Commercial Strategy: First mover advantages  Over the last few years, Ambev has been the first mover  1L RGB and 300 ml RGB are good examples  Competitors are catching up these strategies with some delay  Once trend is consolidated, competitors reach Ambev in terms of entry capacity 8,0% % POS t

  11. Slide 11: Commercial Strategy: First mover advantages

    Commercial Strategy: First mover advantages  Even with competitors growing 1L RGB as fast as Ambev, innovation has been a good strategy to improve financial performance 1L RGB market share as % of total Ambev Beer Brazil EBITDA companies’ sales - on premise, Brasil R$ millions After “t” months of l

  12. Slide 12: Commercial Strategy: creating new demand

    Commercial Strategy: creating new demand  1L RGB substantial lower price preserves 600ml RGB dynamics while boosting demand Prices 1L RGB and 600 ml RGB Share of 1L RGB – total market Brazil (R$/L) Brazil, % After “t” months of launch 5,5 12.0 5,0 10.0 % of total beer market 4,5 + than 50% 8.0 4,0

  13. Slide 13: Commercial Strategy: creating new demand

    Commercial Strategy: creating new demand  1L RGB strategy to lower income consumers  Penetration and individual consumption increasing with lower price solution  Classes D and E increasing consumption very fast, despite substantial movement of consumers to middle class (class C) Classes D and E a

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