Ambev S.A.

Good afternoon and thank you for waiting. We would like to welcome everyone to Unbev's 2026 second 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 has been recorded and all participants will be in listen-only mode during the company's presentation. After Embev's remarks are completed, there will be a Q&A session during which we kindly ask that each participating sell-side analyst ask one-on-one question. Before proceeding, let me mention that forward-looking statements are be made under the safe harbor of the Securities Litigation Reform Act in 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 the future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industrial conditions and other operating factors could also affect the future results of Unbev and could cause results to differ materially from those expressed in such forelooking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during the day's call are both organic and normalized in nature, and unless otherwise stated, preceded changes refer to comparison with 2025 second 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 MBEV's normally activities. As normalized figures are noon gap measures, the company disclosed the consolidated profit , operating profit and EBITDA on a fully reported basis in the early release. Now, I will turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may be in your conference.

Good afternoon, everyone, and thank you for joining our second quarter earnings call. Across our footprint, football is part of our culture, one of the strongest passion points that bring people together. And beer has a unique role in creating such special moments. I want to congratulate all the national teams from our markets that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding execution across Ambev's footprint. Moments like these are also where our company stands out. The World Cup is one of the toughest execution tests in our industry. The challenge goes beyond activating a campaign. It is about turning a tournament into a semester-long platform, activating a portfolio rather than a single brand, and connecting consumers and customers across countries, channels, and millions of points of sale while building engagement that lasts beyond the final whistle. Across our markets, our brands were among those most associated with the event. We did not just take part of the World Cup, we helped shape the category through it. While the World Cup has come to an end, our own game has only reached halftime. Ambev's performance continued to strengthen in the second quarter, with its quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year-over-year, with beer up mid-single digits. Discipline revenue management and resource allocation supported net revenue growth of 6% and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands. As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the first half provides a broader view. Total volumes grew 0.7%, with beer volumes growing well ahead of the total. Net revenue grew 7%, normalized EBITDA increased 10%, implying 1.3 times operational leverage, and normalized EPS also grew 10%. Operating cash flow reached R$8 billion, one of Ambev's highest first-half levels. As we enter the second half, we are building a business with stronger foundations and designed to deliver compound profitable growth over time. Behind this progress is our three-pillar growth strategy. Starting with pillar one, lead and grow the category. This quarter, we advance on both dimensions. On LEED, we strengthen both brand equity and market share across our five largest markets. On GROW, share gains and improving industry conditions support BIOVOLUME growth in markets that represent over 80% of our volumes. Mainstream continue to improve sequentially, with volumes only slightly below last year. We continue to lead the high growth segments with a broad and complementary portfolio. Premium remained a key growth engine, growing nearly 20%. Balance choices grew more than 60%, no-alcohol beer grew around 20%, and flavored beer and RTDs maintained momentum. Michelob Ultra shows how we scale a relevant consumer proposition across markets. It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers seeking a more active and balanced lifestyle. This takes us to pillar two, digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity. Bees enable us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth. It is not just a technical backbone, but an execution powerhouse that creates efficiencies and improves how we operate every day. We breed demand faster and more accurately, help customers increase sell-out through better recommendations, and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow, as reflected in the continued improvement in our NPS. On BEV, BEE's marketplace GMV grew around 60% in both the second quarter and the first half. In the first half, gross margin expanded 6.7 percentage points year-over-year, reaching 22%. In Brazil, marketplace GMV doubled in the first half, with 3P as the main driver. And under PILA III, optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities, investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders. In the quarter, we stepped up investments behind our brands, while expanding Normalize a Bit the Margin by 80 base points. That discipline, together with solid cash generation, allowed us to advance our share-by-back program and announce an additional IOC distribution this quarter. Together, the three pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable, profitable growth. Before moving to our key markets, let me highlight the breadth of our performance. In both the second quarter and the first half, beer volumes grew or remained broadly stable in seven of our ten largest markets, while net revenue and EBITDA grew across all business units, showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer, continued commercial momentum supported another solid quarter. The beer industry continued to improve sequentially. According to Nielsen, sell-out improved from a high single-digit decline in the second half of 2025 and mid-single-digit decline in the first quarter to a slight decline in Q2. Nielsen's measurement calendar ended around June 20, capturing only the early part of the World Cup period. Extending the analysis through month-end and across our broader coverage, we estimate that the industry was slightly positive in the quarter. The World Cup created incremental demand across channels and regions. Nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024. On a two-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment. Through that, our business continued to outperform. Market share expanded year over year for the fourth consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across mainstream, premium, balanced choices and beyond beer. Brand equity continued to improve while price relativity remained broadly stable versus last year. This quarter marked one full year since we regained leadership in premium, with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture, with each brand anchored to distinct consumer need states. Original for authenticity and simplicity, Stella Artois for quiet luxury, Corona for the outdoors and natural living, and Michelob Ultra for an active and balanced lifestyle. The recent announcement of Spaten Pro takes this architecture into a new space, combining premium credentials with zero alcohol and 10 grams of protein to expand balanced choices into new occasions. Balanced choices volumes doubled versus last year, while no alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single-digit decline in the first quarter. Together, improving industry conditions and market share progression supported 5% beer volume growth. Serving this portfolio across more than 1 million points of sale requires precision at scale. Our digital ecosystem provides that capability. Through Bees, we improved assortment, placed the right SKUs in each outlet, and activated our World Cup platform nationwide. Beer distribution grew more than 6%, with returnable bottles up over 4%, and premium over 20%. On the consumer side, Zé Delivery GMV grew 16% versus last year, while others more than doubled on the Brazilian national team matchdays. Zé also gave us a real-time view of where the category is heading. Premium already represent 35% of beer volumes on the platform, while balanced choices reached approximately 7%, nearly twice the weight in Brazil beer. This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands. In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected and volumes declined 4.4% in the quarter. Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus the first quarter. By the end of the first half, we had also cycled the toughest comparison base of the year. Market share progressed sequentially, approaching historical levels by the quarter end as price relativity pressures eased. Throughout the period, we continue investing behind our brands to regain momentum while maintaining disciplined revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth with more than 300 base points of margin expansion in both the quarter and the first half. In last, we had two distinct realities within this quarter. In Bolivia, temporary social unrest and road blockades disrupted mobility and logistics for much of the period, leading to a double-digit volume decline. The situation has since normalized and our operations are running normally. Argentina, by contrast, was a highlight. Our bill of volumes grew low single-digit, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry and the national team's World Cup performance. Premium grew high single-digit, led by Stella Artois and Corona. Balance choices reach a mid-single-digit mix of our beer volumes, supported by the launch of Michelob Ultra and Stella Pure Gold. Mainstream was broadly stable, with Kilmes strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil, scaling premium and developing balanced choices while continuing to strengthen mainstream. In the Dominican Republic, our business delivered mid-single-digit volume growth in the quarter, despite adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop in healthy price relativity versus other alcoholic beverages. Beer continued to gain share within alcoholic beverage, and our volumes grew high single digits in the first half. Premium grew more than 40%, led by Corona and Michelob Ultra, while mainstream grew low single digits, supported by Presidente and The One in the first half. Presidente's brand equity remains strong, reinforcing its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continue to outperform in a dynamic environment. The beer industry declined low single-digit as unfavorable weather and softer consumer demand weighted on performance. Trends nevertheless improved from the first quarter, supported by FIFA World Cup occasions. We gained market share in both beer and beyond beer. Within Beer, Michelob Ultra continued to lead the development of balanced choices, while Bush strengthened our mainstream performance. In Beyond Beer, Mike's Anchored Water remained important growth drivers. As a result, Canada delivered low single-digit top-line growth alongside low to mid-single-digit EBITDA growth and margin expansion in both the quarter and the first half. With that, I will now turn it over to Fleury for the financial highlights.

Thank you, Lisboa. Hello and good afternoon, everyone. As we close the first half of the year, our financial performance reflects the mindset that has guided us over the past quarters to create value through disciplined resource allocation, focusing on what we can control. In the first half of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income. Stated EBITDA grew 2.5% and stated net income increased by 11.6% in the period. From a cash flow perspective, our first half performance allowed us to continue executing our capital allocation priorities of investing in the organic growth of our business while also returning excess cash to shareholders over time. The first half performance was supported by another quarter of consistent execution of our growth strategy. Now, let me walk you through the second quarter highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching R$6.4 billion, with 80 basis points of margin expansion. This reflects disciplined decisions across costs, expenses, and revenue management, allowing us to expand both gross margin and EBITDA margin, while stepping up investments behind our brands during the FIFA World Cup. Consolidated, cash cogs per hectolitre, excluding marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the first half of the year, Brazil beer cash cogs per hectolitre, excluding marketplace products, increased by 9.7%, while our full-year guidance remains unchanged at between 4.5% and 7.5%. Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup. As we mentioned during our first quarter earnings call, these expenses tend to follow the timing of our MAG events calendar, and Q2 reflected that. Distribution expenses also increase in the period, mostly due to volume performance as well as one-off expenses in loss as part of restructuring initiatives in Argentina. Taken together, these results illustrate how we think about resource allocation. Our cost PMO initiative that started last year is based on a continuous improvement mindset, together with choices to focus on growing return on invested capital, ultimately freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the second half of last year, creating a potentially tougher comparison base going forward. Now moving to below EBITDA lines. Net financial expenses totaled R$ 486 million in the quarter, a 50% reduction versus the same period of last year, mainly explained by two positive non-cash factors in the non-derivative instruments line. First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company. These reserves were built to secure liquidity to meet expected foreign currency obligations, including payments to certain suppliers and dividends remittances. Second, A positive effect that came from other markets where local currencies were more stable during the quarter resulting lower conversion losses on monetary balances compared to last year. On the Bolivia devaluation, it is worth noting that our consolidated income statement reflects average monthly effects rates as required under the applicable accounting standards. As a result, going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results. Turning to income taxes, our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in the second quarter of 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes. In the first six months of the year, our ETR was 20.6%, broadly in line with the 20.3% recorded in the first half of 2025. As a result, both normalized and stated net income reached about R$ 3.5 billion, increasing 23.3% and 24.5% respectively versus last year. Normalized and stated earnings per share reached 22 cents of Brazilian Reais, representing, respectively, a 24.2% and 25.4% increase versus last year. Now, turning to cash flow generation, let's go beyond the quarter and look at our performance in the first half of the year. Cash flow from operating activities totaled R$ 7.9 billion, an increase of R$ 3.6 billion, representing over 80% improvement versus the same period of last year. This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled R$ 3.3 billion, 1.5 billion reais higher than in the first half of 2025, primarily reflecting the deconsolidation of assets previously reported as restricted cash in CAC, as disclosed in our first quarter's financial statement, partially offset by lower CAPEX investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades, capacity expansion, innovation capabilities, the expansion of our commercial assets base and our technology infrastructure, all aimed at supporting long term value creation. Cash flow used in financing activities totaled R$ 5.7 billion, R$ 7.1 billion below last year, mainly explained by our R$ 6.7 billion 2024 dividend payout in early 2025. This cash flow performance supports our shareholders' agenda already demonstrated this year through 1. The execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly R$ 3.2 billion cash disbursement until July. 2. The R$ 4.2 billion 2025 IOC payment announcements before withholding tax to be fully paid by October 6th. And three, the 2026 IOC declarations of 1.8 billion reais made so far this year before withholding tax to be paid by December. Altogether, such events represent 5.9 billion reais returned to our shareholders on a pre-tax cash basis, as announced until the date of this report. Now, back to you, Lisboa.