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2013

Nelson Jamel
Chief Financial Officer

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 forwardlooking 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.

2012 was another year of EBITDA growth and EBITDA margin improvement
Consolidating Brahma
as #1

Creation of
Ambev

International
expansion

Building & Exercising


Options

Organic Growth
Focus

48.6%
48.4%
46.4%
37.0%
27.8%

28.7%

37.8%

39.5%

42.3% 44.9%

44.3%

44.7%

11,707

15,679
13,141

10,361

35.4%

305%

8,794

23.8%

9,174

7,445

21.1%

6,305
4,537

662

667

1997

1998

903
1999

1,505 1,990
2000

2001

2,710

2002

3,072

2003

Source: Company data. Information until 2006 BRGAAP, 2007-2011 IFRS

2004

2005

2006

2007

2008

2009

2010

2011

2012

Our current footprint give us an attractive combination


of profitability and growth
Opportunity for
profitable growth and
M&A

Lead growth of
region with
profitability

Mature yet highly


profitable
business

#1 organic
growth
opportunity

Our Latin America South operations are a great


example of profitable growth
LAS EBITDA (USD) & Margin
Joint
control

Full
control

37.8%

40.4% 40.2%

43.5%
40.3%

45.9%

45.7% 45.9%

46.8%
1,413

1,240
998

32.6%

803
475

871

552

384
212
2003

288

2004

2005

Source: Company data.

2006

2007

2008

2009

2010

2011

2012

and we will keep pursuing our strategy of


driving industry growth with profitability
Argentina
Full Brand Portfolio
example

Share of
Throat
Premium
Innovation

100
90

Per Capita (Liters)

80
70

60
50

40

44

BEER

30
20

27

WINE

10
0

Source: Beer (Ex Factory Volume). Wine:


Bodegas Argentinas.

Our current footprint give us an attractive combination


of profitability and growth
Opportunity for
profitable growth and
M&A

Lead growth of
region with
profitability

Mature yet highly


profitable
business

#1 organic
growth
opportunity

Our Canadian team has managed to take Labatts


operation to a new level
Labatt EBITDA (CAD) & Margin
38.5%

40.1%

39.6%

38.6%

41.1%

41.5%

36.0%
846

29.8%

872

869

881

2008

2009

2010

41.9%

868
860

779
725
622

2004

2005

2006

Source: Company data.

2007

2011

2012

and we are placing some big bets for the coming years

Full brand portfolio across


demand landscape

Our current footprint give us an attractive combination


of profitability and growth
Opportunity for
profitable growth and
M&A

Lead growth of
region with
profitability

Mature yet highly


profitable
business

#1 organic
growth
opportunity

CND integration is on track & M&A opportunities remain

Integration opportunities
Procurement
Savings

Business
Integration

Revenue
Management

Leveraging Ambevs
scale & procurement
tools

Sales team
Direct distribution centers
ZBB implementation

Innovation
Premiumization

Central America +
Caribbean have
~US$ 1 billion
EBITDA potential

Our current footprint give us an attractive combination


of profitability and growth
Opportunity for
profitable growth and
M&A

Lead growth of
region with
profitability

Mature yet highly


profitable
business

#1 organic
growth
opportunity

Brazils medium and long-term opportunities are still out


there for the taking...
Commercial Strategies

Changing social
mobility landscape
Lowest per capita
income & highest
average growth

Lower per capita


consumption

Below average
market share

Domestic &
intl portfolio

6% of
volumes

17

Returnable glass bottles


represent more than 65%
of our volumes

Pack price strategy

More friendly to
the environment

Tapping into new consumer needs


& occasions

Relevant volume &


market share contribution
since 2008

Route-to-market
innovation

Approximately 31 million
hectoliters in volumes

~R$1.7 billion of EBITDA


in 2012

Industry benchmark
profitability

Over the last two years we have managed to grow the top line & EBITDA
despite tougher macro & industry realities...
Market
Share

68.7%

69.0%

70.1%
18.4%

68.5%

18.0%
17.3%
13.9%

12.5%

12.3%
10.9%

9.9%

10.7%
9.7%

0.1%

Volume growth vs. LY

... and challenge for 2013 is no different

Net revenue growth vs. LY


EBITDA growth vs. LY

2.5%

Source: Company data.

However, the year started tougher than expected...


Main findings
Volume

Food
inflation

4.0%

set/12

out/12

nov/12
IPCA

Lower
disposable
income
growth

-8.2%

1Q12 vs. LY
1Q13 vs. LY

Source: Company data; IBGE;

dez/12

jan/13

fev/13

mar/13

IPCA Food and Beverages

abr/13

... which means we will have to focus even more on


affordable packaging
Pack price strategy has
been successful
1 liter case (Industry Volume Weight)

and today we have


1 liter
more options than
before
550ml
300 ml

269 ml

Source: Nielsen Retail Index

... so we have quickly fine-tuned our commercial priorities


to improve volume performance in a profitable way...
1 liter

300 ml

Off-premise

More for less


+1,529%

15.5

RGB Weight

Lower out-of-pocket
+297%

+139%

+151%

+55%
+9.9%

+177%

+171%

+16%

+10.7%

4.6

+156%

+4.0%
+2.8%

+2.9%

+2.5%
+0.1%

2009

2010

2011

2011

+0.2%

2012

2012

-8.2%

Volume growth vs LY

1Q12

2Q12

3Q12

4Q12

Volume growth vs LY
Brazil Beer
Source: Company data.

1 liter

Brazil Beer

300 ml

1Q13

while also applying our financial discipline to adapt


our costs & expenses in the short term...
Right sizing

Cost-connect-win
Non-working money

and we also continue to invest in the future

World Cup
Legacy

Connecting with consumers before, during & after the


FIFA 2014 World Cup...
In order to build a strong soccer platform, we have developed relevant
assets ranging from local teams to the FIFA 2014 World Cup

Local Teams

Confederations
Cup

World Cup

Connecting with consumers before, during & after the


FIFA 2014 World Cup...

Local Teams

Confederations
Cup

World Cup

Since 2011 Brahma has been innovating on how to connect


with consumers through the sponsorship of local teams...
Structural Investments

Stadium Activation

Reaching out to fans via


digital media

Brand activation

... and is also leading an initiative to transform soccer in


Brazil...
Fan Membership Program

Program Evolution
(# of fans)
3 MM

1MM

495K

157K

Jan 13
Launch

May 13

Dec 13

Dream

Brand Activation

Connecting with consumers before, during & after the


FIFA 2014 World Cup...

Local Teams

Confederations
Cup

World Cup

FIFA Confederations Cup is unique opportunity to ramp up our


initiatives around brand equity, incremental volume & corporate image
as we get ready for 2014...
Innovation
Event highlights

Promo Pack

Confederations
Cup Special
Edition

June 15-30

16 matches
6 host cities

Zero Alcohol

Special Edition
Aluminum Bottle

Connecting with consumers before, during & after the


FIFA 2014 World Cup...

Local Teams

Confederations
Cup

World Cup

Making the most of our assets and execution with scale will
be key for the FIFA 2014 World Cup...
Micro Events
Event highlights
Focus Brands

June 12-July 13
64 matches

12 host cities

Gearing up for World Cup


2014: Brahma advertising
campaign...

Q&A

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