Ambev S.A.

Good afternoon, and thank you for waiting. We would like to welcome everyone to Unbev's 2026 First Quarter Conference Call. Today with us, we have Mr. Carlos Lisboa, Unbev's CEO, and Mr. Guilherme Fleury, CFO and Investor Relations Officer. As a reminder, this conference presentation is available for download on our website, ri.unbev.com.br, as well as through the webcast link. We would like to inform you that this event is being recorded and all participants will be in a listen-only mode during the company's presentation. After Ambev's remarks are completed, there will be a Q&A session during which we kindly ask that each participating cell site analyst ask only one question. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Ambev. and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature, and unless otherwise stated, percentage changes refer to comparisons with 2025 first quarter results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Unbev's normal activities. As normalized figures or non-GAF measures, the company discloses the consolidated profit, EPS, operating profit, and EBITDA on a fully reported basis in the earnings release. Now, I will turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may begin your conference.

Good afternoon, everyone. And thank you for joining our first quarter earnings call. As we start the year, here's the message I would like you to take away today. In tough moments, great companies and cultures find a way to get stronger. And that is what this quarter begins to show. We entered this year in a better position than we started last year, despite the dynamic operating environment. From day one, we frame our mission around three priorities. Avoid disruptions, keep momentum, and build a stronger company. Last year was demanding, and that made the third objective the hardest to deliver. As a team, we embraced the challenge, elevated our marketing intelligence capabilities, and focused on what we could control, guided by our growth strategy. Within that context, Ambev delivered a solid start to the year. Total volumes were broadly flat, against the toughest comparison base of the year, while beer, referring to growth, up low single-digit. Net revenue grew high single-digit, supported by Net Revenue Project's little growth. And even with continued cost pressure, We delivered double digits EBITDA growth with market expansion of 60 base points, while net income grew by a low single digit. And that is what this quarter begins to show. We entered this year in a better position than we started last year, despite the dynamic operating environment. From day one, We frame our mission around three priorities. Avoid disruptions, keep momentum, and build a stronger company. Last year was demanding, and that made the third objective the hardest to deliver. As a team, we embraced the challenge, elevated our market intelligence capabilities, and focused on what we could control, guided by our growth strategies. Within that context, Ambev delivered a solid start to the year. Total volumes were broadly flat against the toughest comparison base of the year, while beer returned to growth up low single-digit. Net revenue grew high single-digit, supported by net revenue per hectolitre growth, and even With continued cost pressure, we delivered double digits EBITDA growth with margin expansion of 60 base points, while net income grew by a low single digit. The quarter also reflected solid operational cash flow generation and continued discipline in returning cash to shareholders. That is why the first quarter matters. First, It materializes the strengthening we've built over the past year, boosted by continued improvement of the beer industry across most of our footprint, coupled with our commercial momentum. Second, it delivers a balanced shape of P&L from top to bottom, being a solid first step for trading the kind of year we want to have. What gives us confidence is not only the quarter itself, but how it reflects the way our strategy is evolving across the company. Under Pillar 1, as the category captain, our mission is to lead, develop, and grow the beer industry, bridging the gap between the category's potential and actual consumption. Across our footprint, the mission is to continuously strengthen the core segment where many of our most loved brands sit, and which remains the foundation from which the category can expand, while continuing to build the segment shaping the future of beer. Premium, balanced choices, no alcohol, and flavored beer. In doing so, we are developing a more complete portfolio and broadening the reach of the category over time. Under Pillar 2, we are building a true digital ecosystem and becoming an even more outside-in organization. On the direct-to-consumer front, we are strengthening how we understand and address consumer needs so we can serve them better with the right products for the right occasions. On the B2B front, Data, insights, and digital tools are helping us support customers better, recommending the right portfolio and activation strategy for each point of sale, and ultimately driving stronger sell-out. By doing so, we allocate resources more efficiently, improve returns, and make Pillar 1 stronger. Under Pillar 3, we continue to build the muscle that makes the other two pillars scalable. The discipline we have built on revenue management, costs, expenses, cash generation, and resource allocation is what allows us to free up resources to reinvest behind our brands and strategic priorities while protecting profitability and improving return on invested capital over time. Our ambition is for these three pillars to evolve simultaneously and work as a flywheel, reinforcing one another and perpetuating our profitable growth journey. As we continue to implement our strategy across our footprint, the breadth of our results stand out. We deliver flat or positive net revenue growth in all of our business units. EBITDA grew across all of them, with margin expansion in 4 out of 5. Within that, let me turn to the main highlights across our markets. In Brazil Beer, the quarter had the toughest comparison base for the industry year on year. In this context, it still declined by mid single digit in the period, although improving sequentially versus the fourth quarter of last year. The distinction matters because the softness is explained much more by cyclical factors affecting occasions than about structural drivers. Fundamentals remain solid, and the weather continues to be the main drag, concentrated in the south and southeast, but with lower intensity than in previous quarters. As we said during our last call, What changed was not whether consumers wanted beer, but how often the right occasions happened. Within that context, Ambev outperformed commercially. Our volumes grew 1.2% in the quarter. Building on the progress achieved in the second half of last year, and we entered this year from a stronger commercial position, supported by continued market share progression. Brand equity also kept improving, reinforcing the link between stronger brands, better portfolio execution, and shared gains across all beer segments, according to our estimates. We continue to win where the category is expanding the most. Premium grew more than 20%, led by Stella Artois, Corona, and Original. Balance choices grew over 70% with Stella Pure Gold and Michelob Ultra more than doubling. No alcohol beer grew low kings with Corona Zero growing over 70% and Score Zero Zero gaining traction in the regions where it has been introduced, closing the quarter reaching double digits of the no alcohol segment mix. At the same time, our core, Plus value portfolio, although more exposed to weather and macro consumption dynamics, perform ahead of total industry, declining by low single digit. Even so, it continues to improve sequentially with a more balanced performance across brands and regions and gain market share versus last year. Beyond beer also continues to gain momentum. growing in the 20s, with our portfolio addressing unmet consumer needs on more occasions, led by Beats, Brutal Fruit, and our newest portfolio member, Flying Fish. Altogether, this is bringing to life the most complete portfolio we have ever had, one that allows us not only to sell more, but to sell more to more consumers on more occasions and create more value for longer. This portfolio supported a solid net revenue per actor leader performance, up 8.3% in the quarter. As we began to implement our revenue management agenda, our digital platform allowed us to manage prices, discounts, and mix with more precision and better returns. On the customer side, Biz Marketplace also continued to gain relevance. with around 75% of our customer base already buying through the platform, driving GMV to double, supported by continued expansion of 3P. And on the consumer side, Z Delivery remains a key activation stage for our brands and one of the major convenience platforms in Brazil, representing mid-single digits of our beer volumes in the country. In the quarter, GMV grew a high single digit, with 16 million orders delivered to 5 million monthly active users, of which around 80% are millennials and Gen Z. In essence, ZEG gives us a direct window into the future, and that is visible in our portfolio. Premium represents around mid-30s of volumes on the platform versus nearly mid-20s in Brazil Beer, while balance choices are around 50% above Brazil Beer average. More broadly, ZEA is becoming both a growth engine and a catalyst of transformation for the organization, helping us accelerate the digital data analytics and AI-driven culture. and improving how we understand consumers, develop our portfolio, and operate the business going forward. And everything that was said translated into a solid P&L. Top line grew 9.6% and EBITDA grew 7.6% despite cost headwinds from FX and commodities. In Brazil NAB, 2025 was marked by two distinct phases. In the first half, strong commercial execution and favorable pricing position supported solid volume performance and market share gains. In the second half, however, despite our consistent revenue management, market share performance came under pressure as that pricing relativity became less favorable. In the first quarter of this year, we cycled a tough comparison base, and although both relativity and market share improved sequentially, volumes were still down 3.9% versus last year, underperforming the industry. Regarding our portfolio, Guaraná brand equity reached all-time high at the end of 2025, significantly ahead of its market share. while our non-sugar portfolio grew in the mid-teens led by Guaraná Zero, Pepsi Black, and H2O. In the quarter, our discipline execution showed up in the P&L, with top-line growth of 1.8% and a bit up 16.4%, with 400 base points of margin expansion. In Argentina, the macroenvironment has become more stable, with lower inflation and less FX volatility than what we faced a year ago. That improvement, however, has not yet translated into a meaningful recovery in consumption. The beer industry remains soft in the first quarter, and the demand continues to reflect a cautious consumer environment. While the industry appears to have found a more stable level since Q4, we continue to believe in a gradual recovery. Within that context, our performance in Argentina continues to strengthen. Despite volumes declining by low single-digit, sell-out market share increased versus last year, supported by mega-brands equity and consistent execution. Above-court grew high single-digit, led by Stella Artois and Michelob Ultra. We remain focused on protecting our commercial position with a disciplined revenue management agenda, while continuing to invest behind our brands to reignite the category growth. And as we build momentum toward the FIFA World Cup, Kilmes and Michelob Ultra will be key consumer connection platform in the country. In the Dominican Republic, we had a solid start to the year. The consumption environment continued to improve, supported by a more constructive macro environment and healthier category dynamics. Beer continued to gain share of alcoholic beverage, helped by better price relativity. In that context, total volumes grew high single-digit, supported by disciplined commercial execution. Market share remained stable, and Presidente's brand health continued to strengthen, reaching all-time high levels. In Canada, the beer industry remained soft in the quarter, declining mid-single-digit, affected by a weak consumer backdrop and unfavorable weather conditions. Within that context, We maintain stable share in beer and continue to gain share in Beyond Beer, supported by momentum of our mega brands. In beer, Busch and Michelob Ultra were the top two fastest growing brands in the industry, while Mike's, Nurture and Cutwater led our market share gains in Beyond Beer. All in all, Despite volumes declining 2%, EBITDA grew 6.7% with 160 base points of margin expansion. With that, I will now turn it over to Fleury for financial highlights.

Thank you, Lisboa. Hello and good afternoon, everyone. We entered the year maintaining the same financial discipline that has guided us over the past quarters, to drive long-term value creation through our capital allocation framework. We delivered normalized EBITDA growth of 10.1%, translating to an increase of 0.3% in normalized net income. From an operating cash flow perspective, we delivered the strongest first quarter performance in the past 10 years, which not only allows us to continue investing, behind our brands, but also reinforces our commitment to return excess cash to shareholders over time, materialized through the execution of our ongoing share buyback program and our IOC announcements. So, let me walk you through the quarter in more details. On the operational side, normalized EBITDA reached 7.6 billion reais. with 60 basis points of margin expansion, supported by top-line performance and continued financial discipline. Consolidated cash cogs per hectolitre, excluding marketplace, increased 9% in the period, with Brazil beer up 14.6%, reflecting the expected pressure from effects and commodities headwinds, which should gradually ease starting in the second quarter, as previously anticipated. That said, we continue advancing on cost initiatives towards capturing efficiencies. Consolidated cash SG&A grew 4.8% in the quarter, with efficiencies coming mainly from distribution expenses, driven by operational leverage in Brazil beer. We continue to invest consistently behind our brands in the period, and consolidated sales and marketing grew 5.1%. Most importantly, I want to remember that our sales and marketing expenses tend to follow our mega-platforms events calendar, which this year includes the FIFA World Cup in Quarter 2. Looking at our financial performance, net financial expenses totaled R$ 1 billion, in the quarter, about R$ 200 million higher than last year, mainly driven by higher carry costs on derivative instruments. As a result, normalized net income reached R$ 3.8 billion, with a normalized EPS of R$ 0.24, growing 0.5% versus last year. Now, turning to cash flow generation. Cash flow from operating activities totaled R$ 3.2 billion in the quarter, an increase of R$ 2 billion year on year. This was mainly driven by improved working capital dynamics, particularly through better package and raw materials inventory management, as well as improvement in payables, mostly coming from a reduction in barley payments in the period and lower bonus payments following last year's performance. Cash flow used in investing activities totaled 2.4 billion reais, 1.6 billion reais higher than Q1-25, mainly coming from a 2 billion reais impact of the deconsolidation of assets previously reported as restricted cash in CAC, as per applicable accounting standards. For more details, Please refer to note 5.1 to our financial statements. Cash flow used in financing activities totaled R$ 1.2 billion, against R$ 8.8 billion year-on-year. reflecting the execution of our previous share buyback program and the timing of our 2024 dividends payout, which in 2025, together, consumed R$ 7.7 billion of our Q1 cash position. Under our priority to return excess cash to shareholders, We continue executing our ongoing share buyback program announced in October last year, and yesterday the Board of Directors approved the payment of R$ 1.2 billion related to the second tranche of the IOC declared in December of 2025 and a new IOC declaration of R$ 700 million to be paid by December 2026. In summary, we started the year with momentum. We will stay focused on what we can control while continue to invest in long-term value creation. At the same time, we remain mindful that the global geopolitical environment continues to be dynamic. Therefore, we are closely monitoring developments across all of our markets. And we maintain our Brazil beer cash cogs per hectolitre excluding marketplace guidance unchanged from 4.5% to 7.5% increase in 2026 and continue to pursue our ambition of expanding consolidated margin over time. With that, let me hand it back to Lisboa.