ambev apresentacao 201210091 en
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2012
Joo Castro NevesChief Executive Officer
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Statements contained in this presentation may contain information that is foreflects management's current view and estimates of future economic circumconditions, company performance, and financial results. Any statements, expectaplans and assumptions contained in this presentations that do not describe histostatements regarding the declarations or payment of dividends, the directions ofthe implementation of principal operating and financing strategies and capital the factors or trends affecting financial condition, liquidity or results of operalooking statements and involve a number of risks and uncertainties. There is these results will actually occur. The statements are based on many assumpincluding general economic and market conditions, industry conditions, and oper
changes in such assumptions or factors could cause actual results to differ mateexpectations.
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3
LAST 15 YEARSIN REVIEW
BUILDINGBLOCKS FOTHE FUTUR
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TalentedPeople
Strong Culture
FinancialDiscipline(eg, ZBB)
ConsolidatingBrahma as #1
Brahma &Antarctica
mergersynergies
StrongerPortfolio &
Revenuemgmt
TradePrograms
IntegratingQuinsa &
Labatt
PreparingHILA for the
future
LeveragingScale (eg,
Directdistribution)
Creation of AmBevInternationalexpansion
Organic GrowthFocus
QuinsaTransaction
Labatt
Acquisition
HILA-exStart-ups
Ex
Our organic and non organic growth history has enabled us to bubusiness, with several learnings over time that have made us wh
-
7/30/2019 AMBEV Apresentacao 201210091 En
5/58Source: Company data. Information until 2006 BRGAAP, 2007-2011 IFRS
while delivering solid EBITDA growth and industry benchmark
EBITDA margin along the way...
8,7949,174
2007
10,3
2008 200
Consolidating Brahmaas #1
Creation ofAmBev
Internationalexpansion
Organic GrowthFocus
Bui
1997
662 667 9031,505 1,990
2,710 3,0724,537
6,3057,445
1998 1999 2000 2001 2002 2003 2004 2005 2006
21.1%
23.8%27.8% 28.7%
305%
37.0%35.4%
37.8% 39.5%42.3% 44.9%
44.3% 44
Grow
org
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-50%
450%
950%
1450%
1950%
2450%
2950%
1997 1998 1998 1999 1999 2000 2000 2001 2002 2002 2003 2003 2004 2005 2005 2006 2006 2007 2007 2008 2009 2009 2010 20
which has also led to a substantial increase in our share pricemarket capitalization, creating significant value for our sharehold
$ 5.3 biMarket cap
Source: Economatica, Bloomberg. US$.
Consolidating Brahmaas #1
Creation ofAmBev
Internationalexpansion
Organic GrowthFocus
Bu
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In a nutshell...
We have had a good run over the last15 years thanks mainly to
Talentedpeople, strongculture & mgmt
capabilities
Financialdiscipline &
focus onproductivity
M&A Strategy
... and, as a result, we hdelivered
Shval
Indusp
We are never fully satisfied
with our results...
CEBI
Organic growth,innovation &
brands
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LAST 15 YEARSIN REVIEW
BUILDINGBLOCKS FOTHE FUTUR
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Our current footprint give us an attractive combinof profitability and growth
Lead growth ofregion withprofitability
M
#
o
Opportunity forprofitable growth and
M&A
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Our Latin America South operations are a greaexample of non-organic and organic growth
Source: Company data.
LAS EBITDA (USD) & Margin
Organic growthJointcontrol Fullcontrol
212288
384475
552
803 871
998
1,240
45.9%45.9% 45.7%
32.6%
37.8%
40.4% 40.2%40.3%
43.5%
2003 2004 2005 2006 2007 2008 2009 2010 2011
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11
and we will keep pursuing our strategy of
driving industry growth
Sh
T
Pr
Inn
Full Brand Portfolio
0
10
20
30
40
50
60
70
80
90
100
Per Capita (Liters)
27
44
BEER
WINE
SOURCE: Beer (Ex Factory Volume). Wine:Bodegas Argentinas.
Argentinaexample
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Our current footprint give us an attractive combinof profitability and growth
Lead growth ofregion withprofitability
#
o
Opportunity forprofitable growth and
M&A
M
O C di t h d t t k L b t
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Our Canadian team has managed to take Labat
operation to a new level
Source: Company data.
Labatt EBITDA (CAD) & Margin
725
779
846872 869 881 860
41.5%
36.0%
38.5%40.1% 39.6% 38.6%
41.1%
2005 2006 2007 2008 2009 2010 2011
622
2004
29.8%
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and we are placing some big bets for the
coming years
Full brand portfolio acrossdemand landscape
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Our current footprint give us an attractive combinof profitability and growth
Opportunity forprofitable growth and
M&A
Lead growth ofregion withprofitability
#
o
M
CND i t ti i t k t d li id
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CND integration is on track to deliver our guidanUSD 190 million EBITDA for the first 12 months wmargin expansion
~UEBI
Central ACaribbea
ProcurementSavings
Business
Integration
RevenueManagement
LeveragingAmbevsscale & procurementtools
Sales team
Direct distribution centersZBB implementation
InnovationPremiumization
Integration opportunities
b fiti f M&A i t ti t k d
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benefiting from M&A integration track record a
top line growth initiatives in our other markets
Pack price stra
Innovation
Premium
Events platfo
Source: Company data.
EBITDA (USD MM) EBITDA MARGIN
212288
384475
552
803871
998
1,240
45.9%
45.9%45.7%
32.6%
37.8% 40.4%40.2%40.3%
43.5%
2003 2004 2005 2006 2007 2008 2009 2010 2011
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Our current footprint give us an attractive combinof profitability and growth
#
o
Opportunity forprofitable growth and
M&A
Lead growth ofregion withprofitability
M
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Lowest
incomeaverage
Changinmobility
Lower pconsum
Below a
market
N & NE till f f h i t th i f ll t ti
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N & NE still far from having met their full potentia
N&NE volumes growing ahead of industry, withrelevant market share opportunity
Source: Nielsen
-7.7%
-5.7%
-
2009 2010
10.7%
0.1%
3.4%
20.3%
4.1%
10.6%
2010 2011 1H12
BR Volume N & NE Volume
Source: Company data
Beer Volume Growth (% YoY) N & NE MS gap
B il di d l t t iti
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Brazils medium and long-term opportunitiesare still out there for the taking...
Commercial Strategies
Premium
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Win with domestic international porPremium
Premium volumes represent only about
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Premium volumes represent only about5% of industry volumes...
Opportunities to increase penetration driven
mainly by international brandsWeight within Premium
volumes (%)
Source: NielsenSource: Ipsos
Premium brands penetration(% of beer consumers)
99% 98% 91%
87%76
2010
13%
2009
9%
2008
2%
2007
1%2
Stella & Bud growing together to consolidate
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Stella & Bud growing together to consolidateour leadership in premium brands
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12
Source: Company data, Nielsen
Stella Vol.
3Q11 4Q11 1Q12
BUD MS(Premium
Brands)
Volume +67%(1H12)
Top 3 selling premiubrand in less than months after launc
Brazils medium and long term opportunities
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Brazils medium and long-term opportunitiesare still out there for the taking...
Commercial Strategies
B il
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Returnablerepresent mof our volum
Brazils on-paccounts foof beer volu
Higher aver
profitability
More friendthe environm
A twofold opportunity: boosting the on trade experie
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Source: Company data
Mobile event Sel focus)
Increase out-consumption
Improve consumptionexperienceRight brands at the rightprice point
Microevents
Franc
A twofold opportunity: boosting the on-trade experie
and reintroducing returnables into the off-
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and reintroducing returnables into the offthrough Pit Stops and the RGB 300 ml
More than 850 PitStops in 2012
Rolling out the RGB 300 ml will be key
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Rolling out the RGB 300 ml will be key
4% 4%
20%22%
25%30%
46%
54%
Jan Feb Mar Apr May Jun Jul Aug
Coverage during 2012 increasing fast, while investmentsproduction will support volume increase going forward
Source: Company dataSGJ
300mlCoverage(Off trade Key
accounts)
Production Footpri
2011
2012
Brazils medium and long-term opportunities
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Brazil s medium and long-term opportunitiesare still out there for the taking...
Commercial Strategies
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Relevmarket s
s
Tapping into new c& occas
Pack p
Innovation is here to stay and we want to
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Innovation is here to stay and we want togo beyond liquid & packaging...
Interactive guide to the besgo out with better prices, wmedia interface
Webstore that provides structureand materials for points of sale at agreat price by leveraging our scale
Connecting withCustomers Connecting with Cons
Brazils medium and long-term opportunities
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Brazil s medium and long term opportunitiesare still out there for the taking...
Commercial Strategies
A i t l
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Approximatelyhectoliters in
~R$1.5 billion in 201
Industry benprofitab
CS
EBITDA
Our strategy has been consistent and is
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Our strategy has been consistent and isbeginning to work
Innov
All these opportunities become targets that are
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pp gcascaded throughout the organization
Commercial Strategies
and we also continue to invest in the future
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Building blocks
World Cup
Legacy
People
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eop ePipeline
People pipeline is stronger than ever...
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p p p g
45 people
Average age of36
Average tenure of10
Succession plan for Top 140+ positionsAt least two or more successors ready within next two years
People Bets -- Clas
~200
~500
~6,000
~23,000
Partnership
and we also continue to invest in the future
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Building blocks
World CupLegacy
Management
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Management
Capabilities
... Financial discipline remains in our DNA: after over
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ZBB, we continue to find ways to reinvent ourselves
Since 2009 we have used e-auctions to purchase inmore than 20 categories of supplies, generating
savings of approximately 10%
1801,883
10,582
2009 2010 2011
Number of e-auctions
Source: Company data
~80% of capex of new malting facility in PassoFundo was bought through e-auction
and we will continue to focus on productivity
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execution excellence to overcome increasing co
New segmentation &
service level
Customer Service &Sales Support
Revised structure &processes
and we also continue to invest in the future
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Building blocks
World CupLegacy
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Skol continues to lead the way in terms of innovit t ith i di it l
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it connects with consumers: going digital
Source: Campany Data
Digital audience (# of fans) Relevant convers
2,556
2,408.209
7,435 884
2010 2011 YTD 2012
181,431 186,013143,570 162,371
2010 2011
Total SK Registers SK Ac
Generatingcontent
Guaran Antarctica is in great shape...
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Lovemark
g p
7.4
7.7
8.0
8.5
2008 2009 2010 2011
Consistent market sharegrowth (CSD market share)
1.20 1.24
1.671.92
2008 2009 2010 2011
Billion Dollar Brand
(Gross revenue)
GRB 290 Can 350 P500237 P600
GRB 1L 3.3L2L 2.25L1.5L1L 2.5L
Source: Nielsen
Source: Company data.
Affordability Consinvestme
and we also continue to invest in the future
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Building blocks
World CupLegacy
Beer Category
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50
ECONOMICCONTRIBUTION
HEALTH & WELLNESSCULTURE & BEHAVIOR RESPONSIBLE
CONSUMPTION
Beer Category
ENVIRONMENT
We have begun our journey towardsstrengthening beer culture in Brazil
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strengthening beer culture in Brazil...
7,000 m2 of Bohemia experience
Launched in May 2012
Beer history and brand foundation
Interactive production process withreal factory visit
Entertainment merging learning andfun
Variants production and exclusiveinnovations
360o campaign, mainly on digital
... as well as focusing on improving ourrelationship with key stakeholders
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relationship with key stakeholders
Petrleo ebiocombustveis
Setor automotivo
Metalurgia eSiderurgiaQumicos
Bens de capital
Minerais metlicos
Produtos de metal
Txteis e Vesturio
Borracha e Plstico
Celulose e Papel
Materiais eltricosInformtica
Farmacuticos
Couros
Mveis
Grfica
Fumo
Carvo mineral
1,5
1,7
1,9
2,1
2,3
2,5
2,7
0 20 40 60 80
Multiplier
Size of the industry R$ Bilho
Cold beveragerepresents 3%
GDP
Biggest GDP m
the economy
Relevance of the industries for the economy
Source: PWC, IBGE, BNDES, FGV
Generates ove(direct and ind
Food & Beverages
... as well as focusing on improving ourrelationship with key stakeholders
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relationship with key stakeholders
Recycling
CO2emissions
Water consumption
Waste recyclingindex = 99%
CO2 emission = 10%reduction
Water used in production= 3.5 L
Responsible
consumption prog
EnvironmentPublic Targets
and we also continue to invest in the future
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Building blocks
World CupLegacy
meanwhile, Brahma is investing behind soccer to connect wfans before, during and after the World Cup...
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, g p
RelevanceFans x Total - Population
Have a team90%
Fans x Total - Population
Follow theirteamsperformance
145
97% t
Genuine Cause (Brahma Fund) Digital
Part of the profit coming from sales of
Brahma is reverted for the teams asstructural investments
Brahma teams fan pages generating
content for each team individually
Trade initiativeson soccer and th
7.5 MM fans#1 Engagement Brazil
18 Fanpages
Source: BPT
60%
creating an enduring bond with fans,through Team Membership Programs
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g p g
Opportunitty
Create a MOVEMENT of thelargest companies in Brazil ,
generating benefits to fansthrough the consumption of theirproducts
350.000Membership
+ Members = + $$Comm
prov
Discounts
Strong link w/ fans
New Partners
Virtuous Cycle
Gearing up for World Cup2014: new Brahma
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advertising campaign...
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Q&A
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