Latin America South

• LAS Overview

• LAS Strategy

Agenda

LAS: Latin America South

LAS represents 20% of ambev’s volume and around 15% of its EBITDA…

LAS OVERVIEW

Number one beer producer in Argentina, Paraguay, Bolivia and Uruguay and growing business in Chilean market

Recognized brand-power in all markets, with a solid portfolio

Pepsi bottler in Argentina, Bolivia and Uruguay

Most developed distribution system within the region

Bolivia Beer market (mm Hl): 3.7 Avg per capita (liters): 36.7

Paraguay Beer market (mm Hl): 2.4 Avg per capita (liters): 37.7

Uruguay Beer market (mm Hl): 1.0 Avg per capita (liters): 28.7

Argentina Beer market (mm Hl): 17.2 Avg per capita (liters): 44.1

Chile Beer market (mm Hl): 6.3 Avg per capita (liters): 34.7

… with a successful operation in 5 countries

Source: Internal as of 2010.

LAS Beer industry fundamentals

Low per capita consumption – Potential to grow

High sales mix through independent distributors, principally in Argentina and Bolivia

High proportion of returnable presentations

Small number of players / Few brands with high market share

Powerful local brands, no significant penetration of international brands with a few exceptions

Main competitor for ambev: SAB and CCU in Argentina, and CCU in Chile

LAS OVERVIEW

ARGENTINA 76% Market Share

Quilmes and Brahma mainstream brands Strong regional brands Norte and Andes

Stella Artois leading premium segment

BOLIVIA Paceña and Taquiña mainstream brands

Huari brand leading premium segment

PARAGUAY Brahma brand absolute market leader

Local brands Pilsen, Baviera Stella Artois leading premium segment

URUGUAY Leadership with Pilsen and Patricia

CHILE Growing market share with Brahma,

Becker and Baltica

LAS leads 4 of the 5 beer markets in which it operates…

LAS OVERVIEW

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

Operations in 3 countries

Argentina and Uruguay since Baesa acquisition

Bolivia bottling system acquired in 2009

EBITDA of US$ 121 MM in 2010

...and has consolidated a strong and synergized CSD operation

LAS OVERVIEW

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

MAINSTREAM

90-110%

VALUE

60-90%

LOW

60%

SUPER PREMIUM

400-600%

CORE PLUS 150-%

PREMIUM 180-30%

Exchange rate R$/USD = 1,67

Highlights of latest results in LAS

Volumes growing due to industry performance and market share gains or stability in every country

Increasing inflation, strategic revenue management and premium growth have resulted in opportunities to grow in NR/Hl

In the costs side, inflation, labor costs and raw materials have hit our results but we benefited from better fixed costs absorption and higher efficiencies

Regarding SG&A, higher labor costs have been partially offset by the ZBB control and rationalization projects implemented

Leading marketing strategy with focus on innovation, communication and support of mainstream and premium brands

High performance culture emphasizing ownership and meritocracy

Track-record of consistent margin enhancement driven by economies of scale, global business processes and financial discipline

Highlights of latest performance in LAS

Despite the strong industry slowdown, LAS delivered solid double-digit organic growth rates

LAS OVERVIEW

2008 2009 2010 2008 2009 2010

+15.4%

+16.1%

+21.4%

+15.7%

Revenues EBITDA

2008 2009 2010 2008 2009 2010

US$ 2,3 bn US$ 1,0 bn

Exchange rate R$/USD = 1,67

1.764

2003 2010

EBITDA (R$MM )

257

2003 2010

Exchange rate R$/USD : 3,01 (2003) and 1,67 (2010)

Reaching an all-time record US dollar EBITDA in 2010

LAS OVERVIEW

US$1 Billion

US$85 Million

• LAS Overview

• LAS STRATEGY

Agenda

LAS: Latin America South

o In order to comply with this role, we focus in the following three main initiatives:

o People Engagement is a “must” in order to have a sustainable business

Maximize profitability assuring our leadership position

LAS STRATEGY

Full Brand portfolio Share of Throat

Maximize operational efficiency

Full Trade programs portfolio

External regulatory environment pro-business

Share of Throat

Maximize operational efficiency

Full Trade programs portfolio

External regulatory environment pro-business

o In order to comply with this role, we focus in the following three main initiatives:

o People Engagement is a “must” in order to have a sustainable business

Maximize profitability assuring our leadership position

LAS STRATEGY

Full Brand portfolio

Full Brand Portfolio 2010 Price segment

LAS has a strong mainstream and premium portfolio in Argentina…

Source: Nielsen 2010 * Ex InBev brands (ICSA)

Super Premium

Premium

Mainstream

Value / Low

Low

Guinness

Corona

Heineken Warsteiner

Imperial*

Isenbeck Budweiser

CCU Regionals’

Schneider / Córdoba

Palermo / Bieckert*

Diosa

Río II/San Carlos

COMPETITORS

… and we keep developing our full portfolio strategy through innovation…

Premium Dark

Mainstream

Special Edition Anniversary

Ne

w L

abe

l

Ice Tower

Thermo Sensitive Label

Gift pack 120

Innovation: new liquids, new packaging, renewed communication

TV Spots

Thermo sensitive label & Quilmes line extensions

In Bolivia we have a strong presence in the different regions with solid local brands…

Paceña brand leading in main cities of La Paz and Santa Cruz, and Taquiña in Cochabamba.

Premium segment growing throughout the country with Huari brand.

98% of beer sold through independent distributors.

Among the top tax contributors to the national revenue service.

...in Paraguay we are still enjoying strong growth with our portfolio...

Our portfolio includes mainstream brands Pilsen and Ouro Fino, premium Baviera and our recently acquired Budweiser

More than 80% of sales volume in returnable presentations, mainly in 1 liter

Direct sales accounting for more than 50% of our sales

...we have been delivering high volumes growth in Uruguay, both in beer and soft drinks...

Strong portfolio with Pilsen and Patricia leading the market, complemented by regional Norteña and premium brands Zillertal and Stella Artois

Beer per capita strongly recovering since 2004 after some years of contraction

Returnable presentations accounting for more than 90%, mainly 1 liter

Strong recovery in market shares in CSD and good results with H2Oh!

...while Chile has been consistently growing in market share, reaching an all-time record

Brahma and Becker, our mainstream brands in a highly competitive market

With the premium segment expansion, we enjoyed good growth ratios through Stella Artois and dark Brahma launchings

Strong direct sales force to serve a complex geography

Renovation of images and labels in Bolivia and Paraguay

Share of Throat Full Brand portfolio

o In order to comply with this role, we focus in the following three main initiatives:

o People Engagement is a “must” in order to have a sustainable business

Maximize operational efficiency

External regulatory environment pro-business

Maximize profitability assuring our leadership position

LAS STRATEGY

Full Trade programs portfolio

24

Developing our full trade strategy with programs and targeted activations…

PROGRAMONPROGRAMON

SMK Q SHELVESSMK Q SHELVES

BEER COOLERSBEER COOLERS

SS Q SHELVESSS Q SHELVES

EVENTS ACTIVATIONEVENTS ACTIVATION

Summer

Winter

WorldCup

25

Self Service INNOVATION

Header with Back Light

Bottle Lighting in each shelf

Quality Improvement for price communication

… to be leaders at the POC, shaping beer category profile

Traditional

26

Supermarkets

Quality End of the Isle

Interactive Stopper Touch Screen

INNOVATION

Double Door Cooler with secuential Leds

Investing in state-of-the-art innovative shelves

Maximize operational efficiency

Full Trade programs portfolio

External regulatory environment pro-business

o In order to comply with this role, we focus in the following three main initiatives:

o People Engagement is a “must” in order to have a sustainable business

Full Brand portfolio Share of Throat

Maximize profitability assuring our leadership position

LAS STRATEGY

17,717,217,3

15,914,8

13,913,313,0

12,112,412,612,712,4

98 99 00 01 02 03 04 05 06 07 08 09 10

1.9% -1.0% -1.3% -2.1% 6.7% 2.9%

4.3% 6.5%

MM Hl.

7.5% 8.6%

Source: beer (ex factory volume) and own estimations

Argentina’s beer market has resumed the growth path...

35.4 35.7 35.0 34.2 33.1 35.0 35.6 36.8 P.C. 38.9 41.4 44.6

2.6% -0.3%

44.1 44.1

Beer Market

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Per Capita (Liters)

SOURCE: Beer (Ex Factory Volume). Wine: Bodegas Argentinas.

BEER WINE

... while continuing to outperform wine in share of throat...

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86 81 8169

6144 38 37 35 29

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Lite

rs

BEER WINE SPIRITS

… but still with room to keep growing in per capita terms

SOURCE: Wine Institute 2009 / LAS 2010

Beer, Wine & Spirits

+40/50 liters

Shinning performance of Stella in the premium…

Source: internal

2007 2008 2009 2010

+60%

+20%

+8%

Volume Growth

2007 2008 2010 2009

…with its globally known attributes

Promising outlook for super-premium brand Patagonia…

Super-premium brand brewed in Argentina,

Great performance since launch , fostering premium segment expansion

Targeted to high-end wine consumers

Patagonia Meals

And innovating through the development of varieties across the zone

o In order to comply with this role, we focus in the following three main initiatives:

o People Engagement is a “must” in order to have a sustainable business

Maximize operational efficiency

Full Trade programs portfolio

External regulatory environment pro-business

Full Brand portfolio Share of Throat

Maximize profitability assuring our leadership position

LAS STRATEGY

Q&A