SEPTEMBER 2007ri.ambev.com.br/arquivos/Ambev_ApresGeral_092007b_eng.pdf · 2010-09-25 · 1,200 1,400 1,600 j an/ 0 4 ab r / 04 ju l / 0 4 o u t/0 4 j an/ 0 5 ab r 05 ju l / 0 5 o

SEPTEMBER 2007

283 364 286 292 403 582 662 667903

1,5051,990

2,710

4,535

6,305

7,445

3,072

587

23.8%

27.8% 28.7%30.5%

37.0%35.4%

37.8%39.5%

42.3%

21.1%22.6%

26.6%

20.8%

23.5%

20.4%

28.6%

24.7%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

EBITDA (R$MM)

EBITDA margin

•1990 to 1999 figures refer to Brahma only

•BR Gaap figures

Canada22.1%

HILA15.7%

CSD Brazil10.3%

Beer Brazil51.4%

Malt & By-products

0.6%

Diversified Cash Generation20.1% of EBITDA in hard currency (CAD)

Revenue Breakdown by Segment2006

EBITDA Breakdown by Segment2006

Canada20.1%

HILA10.6%

CSD Brazil8.2%

Beer Brazil60.2%

Malt & By-products

0.9%

93.7%94.9%

95.8%96.5% 96.8%

98.0%

2001 2002 2003 2004 2005 2006

Energy Consumptionper unit produced (kwh/liter)

123.2113.8 108.7 109.1 107.8

2002 2003 2004 2005 2006

Reutilization of Industrial Wastes

Pay-out – R$ billion

1.32.3

1.8

1.6

1.80.4

2004 2005 2006

Buy backs

Dividends

2.9 2.7

3.6

5.985

4.1503.419

7.445

6.305

4.357

2004 2005 2006

Operational Cash FlowR$ MM* Cash Flow

EBITDA

* Cash generated from operations other than investing or financing

Olocar travessão

• Beer and Soft Drinks– Start up operations

–Growth potential

• Beer and Soft Drinks– Market Leader in Argentina, Bolivia, Paraguay and Uruguay

– EBITDA Margin 06 – 42.7%

• Sales Volumes – 134 mm Hl– EBITDA – R$ 7.4 Billion

– EBITDA Margin – 42.3%

• Beer– EBITDA Margin 06 – 38.6%

– Market Share of 43%

• Beer– 3 major brands

– EBITDA Margin 06 – 49.5%

– Market Share of 67.5%

• Soft Drinks and Nanc– EBITDA Margin 06 – 33.6%

– Market Share of 17.0%

184.9

47.363.063.3

Canada Brazil Hila-ex Quinsa

38.5%

49.5%

-12.0%

51.7%

Canada Brazil Hila-ex Quinsa

Net revenues perHectoliter Beer AmBev (2006)*

EBITDA Margin Beer AmBev (2006)

* FX conversion by 2006 year average

0,8

66,1

95,395,3101,0

25,3

2,85,56,318,3

22,714,916,2

23,024,2

Ger

man

y

Bra

zil

Rus

sia

UK

Fran

ce

Ukr

ania

Vene

zuel

a

Can

ada

Net

her.

Cze

ch R

ep.

Arg

entin

a

Peru

Chi

le

Bol

ivia

Uru

guay

Per Capita Consumption (2006)(Liters/hab/year)

Market Size (2006)(mm hl)

67,4

50,8

30,423,2

37,033,8

22,0

68,0

158,4

122,6

108,8

88,2

Cze

ch R

ep.

Ger

man

y

UK

Vene

zuel

a

Can

ada

Rus

sia

Bra

zil

Arg

entin

a

Chi

le

Bol

ivia

Uru

guay

Peru

* Exclude US and China

70%

20% 19%

30%

80% 81%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil Canada Argentina

On Premise Off Premise

Channel Package

71%80%

95%

29%20%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil Canada Argentina

Returnable Non returnable

50.8

49.2

47.4

45.4

47.447.8

48.3

2000 2001 2002 2003 2004 2005 2006

Per Capita Consumption(l/year)

84.7 84.9 85.3

82.7

87.3

91.5

95.5

2000 2001 2002 2003 2004 2005 2006

Total Market(MM hl/year)

Positive Trend Positive Trend

59.3 59.058.0

55.3

57.8

62.5

65.7

2000 2001 2002 2003 2004 2005 2006

AmBev Brazil Beer Volume(millions hl)

22.8% 23.9% 24.5%

21.0% 22.2% 22.1%

24.3% 23.2% 23.0%

30.7% 30.3%31.9%

2004 2005 2006

4Q

3Q

2Q

1Q

Seasonality: strong volumes on the 1Q and 4Q

♦ Strong leader with 68.3% of market share (October 2007 figures)

♦ 65 million hl sold in 2006

♦ 3 leading brands: Skol, Brahma and Antarctica

♦ Leading premium brands: Bohemia and Original

♦ Seasonality: strong volumes on the 1Q and 4Q

67.864.2

61.661.8

69.163.2

56.2

2000 2001 2002 2003 2004 2005 2006

Per Capita Consumption(l/year)

98.7

112.4

124.3

112.6 113.4119.5

127.6

2000 2001 2002 2003 2004 2005 2006

Total Market(MM hl/year)

Positive Trend

Positive Trend

17.218.5

19.618.8 19.1

20.322.1

2000 2001 2002 2003 2004 2005 2006

AmBev Brazil CSD&Nanc Volume (millions hl)

24.3% 23.5% 24.2%

21.4% 22.2% 22.1%

23.1% 23.2% 23.5%

31.1% 30.1%31.2%

2004 2005 2006

4Q

3Q

2Q

1Q

Seasonality: strong volumes on the 4Q

32.6%

36.9%

43.7%

49.1%51.0%

2002 2003 2004 2005 2006

AmBev Brazil Direct Distribution (% of Total Brazilian Volume)

Distribution Breakdown

30.0%

20.0%

50.0%

SmallBars

Supermarkets

Restaurants

Beer CSD

55.0%20.0%

25.0%Small Bars

Super-markets Restau-

rants

Beverage Plants

Verticalized Plants

Plant Footprint Brazil

EBITDA (R$MM)

EBITDA margin

1,339.5

1,774.7

2,425.0 2,500.0

2,900.4

3,731.4

4,478.6

34.4%36.8%

43.7%

40.9%42.0%

46.0%49.5%

2000 2001 2002 2003 2004 2005 2006

CAGR 22.3%

EBITDA and EBITDA Margin Evolution – Brazil Beer

EBITDA (R$MM)

EBITDA margin

77.7

184.4

245.9

429.1

517.6

607.7

8.0%

16.8%18.5%

29.3%

31.4%

33.7%

2001 2002 2003 2004 2005 2006

CAGR 50.9%

EBITDA and EBITDA Margin Evolution – Brazil CSD

Share Performance: 2000 - actual*

* AMBV4 and ABV figures adjusted for split and stock bonus

-100%

0%

100%

200%

300%

400%

500%

600%

jan-

00

jul-0

0

jan-

01

jul-0

1

jan-

02

jul-0

2

jan-

03

jul-0

3

jan-

04

jul-0

4

jan-

05

jul-0

5

jan-

06

jul-0

6

jan-

07

jul-0

7

473%

450%

263%

-1%

AmBev preferred ADR

AmBev preferred

S&P 500

Bovespa

Brazil

R$ Million Beer CSD Nanc Others Total

Volumes (000 hl) 65,655 22,072 - 87,727 10,963 35,676 134,366

Net Revenues 9,045 1,806 112 10,963 3,888 2,762 17,614

COGS (2,574) (878) (41) (3,492) (1,190) (1,266) (5,949)

Gross Profit 6,471 929 71 7,471 2,698 1,496 11,665

SG&A (2,550) (485) (3) (3,038) (1,415) (956) (5,409)

EBIT 3,922 443 67 4,433 1,283 541 6,256

Depr. and Amort. (557) (164) 0 (721) (216) (251) (1,188)

EBITDA 4,479 608 67 5,154 1,500 791 7,445

% of Tot. EBITDA 60.2% 8.2% 0.9% 69.3% 20.1% 10.6% 100.0%

EBITDA Margin 49.5% 33.6% 60.4% 47.0% 38.6% 28.6% 42.3%

Net income 2,806

Canada HILA Total

+6.0%High Operational Leverage

+81.5%

+10.7% +19.3%

Figures in BRGaap

0.4x

1.1x

1.4x

1.0x 1.0x

2002 2003 2004 2005 2006

3.6

5.8 5.8

6.9

2002 2003 2004 2005 2006

Net Debt/ EBITDA

EBITDA / CAPEX

EBITDA / Net Financial Expenses

N.M.*

4.3x

9.0x6.2x

2.3x4.8x

6.4x

33.2x

2007 2008 2009 2010 2011 2012 >2012

EBITDA 06 / Debt Refinancing Needs

5.2x

3.6x 3.4x

4.5x5.2x

2002 2003 2004 2005 2006

Figures in BRGaap

* In 2003 AmBev had R$93.1MM of Net Financial Revenues

S & PCCCD CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA

CCC CCC- CCC CCC+ B- B B+ BB- BB BB+ BBB- BBB BBB+ A- A A+ AA- AA AA+ AAA+

CaC Caa3 Caa2 Caa1 B3 B2 B1 Ba3 Ba2 Ba1 Baa3 Baa2 Baa1 A3 A2 A1 Aa3 Aa2 Aa1 Aaa

Fitch

Moody’s

AmBev Brazil Sovereign

Investment Grade

Investment Grade

Highest Rating

Among Brazilian

Companies

Operations, People andManagement Committee

Shareholders Fiscal Committee

Finance Committee

Boardof Directors Internal

Audit Department

Executive Management

2003 2004 2005 2006

+6.7%+28.3%

+19.7%

2003 2004 2005 2006

+30.4% +44.4%

+38.3%

2003 2004 2005 2006

+4.6%+8.2%

+5.1%

BohemiaOriginal

AmBev Brazil Beer

50.849.247.445.447.447.848.3

32.7 32.2 30.7 32.3 33.635.8 37.0

19.7 20.7 21.524.8

26.730.8

2000 2001 2002 2003 2004 2005 2006

Per Capita consumption (l/year)

Brazil

Argentina

Bolivia

47.242.9 42 39.839.241.242.7

45.3

60.156.5

2003 2004 2005 2006

Cost Per Hectoliter

BrazilBeer (R$)

Brasil CSD (R$)

Canada (CAD$)

(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

jan-

04

abr-

04

jul-0

4

out-0

4

jan-

05

abr-

05

jul-0

5

out-0

5

jan-

06

abr-

06

jul-0

6

out-0

6

jan-

07

abr-

07

jul-0

7

Argentina Brazil Bolivia Chile

Mexico Paraguay Peru Uruguay

USD vs. Latam currencies since 2004

Most Latam currencies

appreciated against the USD

Country Risk since 2004*

0

200

400

600

800

1,000

1,200

1,400

1,600

jan/

04

abr/0

4

jul/0

4

out/0

4

jan/

05

abr/0

5

jul/0

5

out/0

5

jan/

06

abr/0

6

jul/0

6

out/0

6

jan/

07

abr/0

7

jul/0

7

Argentina Brazil Chile Ecuador

Mexico Peru Uruguay Venezuela* Argentina country risk was around 5000 before June 2005

Most markets reduced country

risk

[email protected] 55-11-2122-1414

mailto:[email protected]

Documents

SEPTEMBER 2007ri.ambev.com.br/arquivos/Ambev_ApresGeral_092007b_eng.pdf · 2010-09-25 · 1,200 1,400 1,600 j an/ 0 4 ab r / 04 ju l / 0 4 o u t/0 4 j an/ 0 5 ab r 05 ju l / 0 5 o