Ambev Sa · BMFBOVESPA:ABEV3
Ambev Sa — BTG Pactual Conference 2012
34 slides from Ambev Sa's conference presentation, Feb 13, 2012
Slide 1: Ambev
ambev .
Slide 2: Forward-looking statements
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
Slide 3: Ambev Overview
Ambev Overview Brazil deep dive 3
Slide 4: Where we operate: countries through business units
Where we operate: 13 countries through 4 business units… CANADA Market Leader in Canada EBITDA Margin 10 - 41.1% 6 plants HILA EX BRAZIL Long-term strategy Market Leader in Brazil Growth potential EBITDA Margin 10 – 49.9% 5 plants 2nd player Soft Drinks and Nanc business LAS EBITDA Margin 10 – 47.8%
Slide 5: Regional breakdown of results
Regional breakdown: although majority of our results come from Brazil… … we have relevant profitability contributions from Canada and LAS 5 Sources: Company data
Slide 6: Our portfolio of Billion Dollar brands
Our portfolio is comprised of 4 “Billion Dollar” brands… # 4 brand in the # 7 brand in the world (volume) world (volume) # 14 brand in the world (volume) ... and other local jewels 6 Sources: Plato 2010
Slide 7: How we have grown over time
How we have grown over time: a mix of non- organic growth… LAN + LAS CANADA Brahma Ambev Quinsa Hila-Ex Canada 1989 1999 2002 2003 2004 7
Slide 8: Organic growth and operational leverage
… organic growth and operational leverage 8 Sources: Company data
Slide 9: Brazil business
Brazil business The largest market with ~1 million points of sale 68.9% Beer Market Share and 18.1% Soft Drinks Market Share (9M 2011) Very fragmented market: Distribution is key (~1 million points of sale, visited in avg. 1.5 x a week) Beer mostly consumed in on-premise outlets which represent ~65%
Slide 10: Strong operation in Latin America South
Strong operation in Latin America South A more premium market Beer and CSD&NANC business Bolivia Market Consumption: > 80% off premise & Beer market (mm Hl): 3.7 Avg per capita (liters): 36.1 > 90% returnable presentations Market Share: 97.0% (3Q11) More than 70% distributed through Paraguay indepen
Slide 11: Highly profitable operation in Canada
Highly profitable operation in Canada A more mature market Number one beer producer in Canada (40.7% Market Share in 3Q11) Nearly 58% of volume of the market consumed in Ontario & Quebec Highly regulated market (minimum prices) Each province is governed by different regulatory and ownership of distr
Slide 12: Dream-People-Culture platform
What we believe in: Dream-People-Culture platform DREAM To be the best beverage company in a better world Targets and results Social Responsibility PEOPLE Competitive Leadership development Advantage Career development Compensation Training CULTURE Consistency Ownership Principles Long term commitme
Slide 13: Brazil deep dive
Ambev Overview Brazil deep dive 13
Slide 14: Brazil Deep Dive
Brazil Deep Dive Market overview 2009-2011 – results and learnings 2012 and beyond 14
Slide 15: Market Overview
Market Overview ambev
Slide 16: Brazil beer market ranked #3 and growing faster than global average
Brazil Beer market is ranked #3 and has grown faster than global average... World Beer Market Country Volume (M Hl) 5y CAGR China 450 8,1% USA 244 0,2% Brazil 126 6,2% Russia 97 2,1% World 1851 3,2% 16 Sources: Plato 2010
Slide 17: Leadership position in the Brazilian beer market
We have a leadership position in the Brazilian Beer market... 2011 9M Average Market Share 2011 9M Average Share of Value 68.9% 73.5% 10.9% 9.4% 10.3% 8.9% 8.4% 6.9% 1.5% 1.2% 2011 9M Market Share per Brand 32.7% 19.3% 15.7% 9.6% 7.2% 4.6% 17 Sources: Nielsen
Slide 18: Leadership translates into a profitable beer business
And this leadership translates into a profitable beer business 2011 9M 2011 9M 2011 9M +12.7% +150bps -0.2% 18 Source: Company data
Slide 19: Soft drinks business track record of profitable growth
Our soft drinks business also shows a track record of profitable growth 2011 9M +40bps 2011 9M 2011 9M +5.6% +0.8% 19 Sources: Company data, Nielsen
Slide 20: 2009-2011 Results and Learnings
2009-2011 – Results and Learnings
Slide 21: 2009-2011 New and Old Initiatives
2009-2011 – New and “Old” Initiatives: creating options for the future Commercial Strategy Productivity • Liquid & Packaging Innovation • Cost/HI below inflation • Sports Platform • Sales force Execution • Brand Health • Negative Working Capital • NENO & RGB strategies Relationship Relationship • In
Slide 22: Commercial Strategy: Innovation Pipeline
Commercial Strategy - 2009-2011 Innovation Pipeline Brahma 1L Rollout Fresh 1L Rollout Rollout 300ml Brahma 300ml Fresh LN RGB RGB 473 ml Sleek Skol Brahma can 360 Copaço 1L RGB 1L Rollout Sub Zero Stella Bohemia Bohemia Artois 1L Oaken Swiss Budweiser Draft Original 300ml 22
Slide 23: Commercial Strategy: Focus on sports platform
Commercial Strategy – Focus on sports platform Strong Sports Agenda over the next years Copa America Olympics (London)/ Confed Cup World Cup (Brazil) Copa America Olympics (Argentina) World Cup Qualifying (Brazil) (Brazil) (Brazil) 2011 2012 2013 2014 2015 2016 Opportunity Size Ambev Assets 25% of t
Slide 24: Relationship
Relationship Social Environmental Legacy Cyan Legal Initiative Drinking Responsible LDA POC way to use program water Industry NGO Brahma at Governments programs Community Antitrust Association with NGOs Infrastructure, NGO´s professional training, culture and legal drinking to communities through so
Slide 25: 2012 and beyond
2012 and beyond ambev
Slide 26: 2012: How to achieve our results
2012: How to achieve our results OFF Trade ON Trade Premium Reach short-term economic Maintain balance and Influence results sustaining market share trends to keep results sustainable and brand-equity positions in the long term 26
Slide 27: Where we are going beyond 2012
Where we are going to beyond 2012... 27
Slide 28: Premium Beer
Premium Beer Huge gap against other developed countries and below word index Opportunity to develop Core Plus with an International Renowned % Weight in Overall Premium Brand 28 Sources: Nielsen and Plato
Slide 29: Argentina Case: delivering growth in the premium segment
Argentina Case: delivering growth in the premium segment # 1 international beer < 5 years after launch Market Share Ratio – Heineken:Stella 100% Stella Artois market 80% share in 2011 ~6% 60% 40% 20% 0% 2004 2005 2006 2007 2008 2009 2010 Heineken Stella Artois 29 Note: Market share figures are based
Slide 30: Where we are going beyond 2012
Where we are going to beyond 2012... 30
Slide 31: Per capita increase driven by income growth
Per capita increase driven by income growth 2011E 31 Source: Plato 2011E
Slide 32: Per capita consumption by Region
Per capita consumption by Region 29,8 48,7 64,8 80,4 74,9 65,4 Brazil 2010 Helped by minimum wage and social ... but still are underdeveloped when programs, Northeast and North regions beer compared to other regions in Brazil... market volume have grown ahead of other regions... 32 Source: LCA, Plat
Slide 33: Wrapping up: the plans in place
Wrapping up: we believe we have the people and the plans in place… Continue to focus on innovations (new news and rollouts) Lead the way in growing premium Keep investing in the fastest growing regions in the country (NENO) Maintain brand equity momentum Execute our pack price strategy … s
Slide 34: Q&A
Q&A ambev