UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ¨ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ¨ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF ...

Group 1: AT&T (T) - AT&T is viewed as a viable investment for those believing in its future growth despite current stagnation [2] - The company reported higher-than-expected revenues and added more postpaid customers than anticipated, although it missed earnings by a few cents [2] - AT&T offers a dividend yield of 6.5%, providing passive income for investors [2] Group 2: Ambev (ABEV) - Ambev's stock is currently trading at approximately $2.50, with analysts projecting a target price of $3.43 and potential for price appreciation [3][4] - The company offers a dividend yield just above 5%, making it attractive for income-focused investors [3] - Ambev has shown rapid revenue growth over the past three years and is financially secure, ranking higher than 79% of its competitors in the brewery sector [4] Group 3: Kinder Morgan (KMI) - Kinder Morgan operates critical pipeline transportation infrastructure in the energy sector and has a current dividend yield of 6.8% [5] - The company anticipates paying $1.15 per share in dividends this year and expects to maintain yields above 6% in 2024 [5] - Despite a decline in earnings and distributable cash flow by 10% and 4% respectively in the fourth quarter, investors are betting on potential instability in energy markets to drive prices higher [6]

Group 1: Planet Labs (PL) - Planet Labs focuses on Earth observability, providing detailed satellite imagery to various clients, including government and commercial sectors [2][3] - The company has a significant cash reserve of over $300 million and is experiencing rising revenues, indicating potential for future growth despite not yet being consistently profitable [3] Group 2: Ambev (ABEV) - Ambev is Brazil's largest beer brewing company, with a strong market presence in Brazil and other Latin American countries, benefiting from growth opportunities in emerging markets [4][5] - The company operates under Anheuser-Busch InBev but has maintained a strong position, avoiding political controversies and holding a net cash position, providing flexibility in a volatile economy [5] Group 3: Traeger (COOK) - Traeger designs and distributes wood pellet barbecue grills, capitalizing on the growing trend of home grilling, particularly among younger consumers [6][7] - After overexpansion and subsequent operating losses, Traeger is expected to return to profitability, with inventory levels normalizing and shares significantly down from their 2021 peak [7]

Core Viewpoint - The article discusses how certain companies with strong balance sheets are well-positioned to thrive despite rising interest rates, contrasting them with more speculative and debt-laden firms that face existential risks due to these economic conditions [1]. Group 1: Companies with Strong Balance Sheets - Alphabet (GOOGL) has $120 billion in cash and short-term investments against $12 billion in long-term debt, potentially benefiting from higher interest rates through treasury bonds yielding 4%, which could generate about $5 billion annually [2]. - Franco-Nevada Corp. (FNV) has no debt and has seen its stock rise over 600% since 2007, although it faces challenges due to a mine shutdown in Panama. The price of precious metals is increasing, suggesting potential for FNV shares to trend higher [4][5]. - Corteva (CTVA) has virtually no net debt and is trading at around 17 times forward earnings, making it an attractive investment opportunity despite a 25% decline in stock price over the past year [6]. - Ambev (ABEV) operates without debt and offers a greater than 5% dividend yield, trading at 15 times forward earnings, positioning it as a steady stock in a defensive industry [7][8]. - Old Dominion Freight Line (ODFL) has only $60 million in long-term debt and focuses on less-than-truckload services, resulting in a stock price increase of over 900% in the past decade [9]. - EPAM Systems (EPAM) has no debt and a large cash balance, allowing it to adapt to geopolitical changes and continue growth in affordable IT solutions [10][11]. Group 2: Market Dynamics - Tradeweb Markets (TW) has benefited from the shift to online bond trading, experiencing a 28% growth in average daily volume for 2023, including a 43% rise in December trading volumes, making it a resilient stock amid interest rate fluctuations [12][13].

Ambev S.A. (NYSE:ABEV) Q3 2023 Earnings Conference Call October 31, 2023 11:30 AM ET Company Participants Jean Jereissati – Chief Executive Officer Lucas Lira – Chief Financial, Investor Relations and Shared Services Officer Conference Call Participants Isabella Simonato – Bank of America Robert Ottenstein – Evercore Thiago Duarte – BTG Pactual Ben Theurer – Barclays Felipe Ucros – Scotiabank Alan Alanis – Santander Operator Good morning, good afternoon, and thank you for waiting. We would like to welcome e ...

Financial Performance Highlights - Ambev's net revenue increased by 19% in 3Q23 and 22% in 9M23[7] - Normalized EBITDA grew by 44% in 3Q23, or 31% excluding Argentina, and 40% in 9M23, or 23% excluding Argentina[7] - Gross Margin and EBITDA Margin increased by 210 bps and 560 bps respectively in 3Q23, and 230 bps and 400 bps respectively in 9M23[7] - Cash Flow from Operating Activities increased by R$1.8 billion (nominal) in 3Q23 and R$1.9 billion (nominal) in 9M23[7] Regional Performance - CAC (presumably a region) experienced a volume increase of 13.6%, NR/hl (Net Revenue per hectoliter) increase of 7.6%, EBITDA increase of 62.3%, and EBITDA Margin increase of 940 bps[27] - Canada saw a volume decrease of 13.1%, NR/hl increase of 6.7%, EBITDA increase of 3.5%, and EBITDA Margin increase of 310 bps[37] Brand Performance - Premium and super premium beer volume experienced low teens growth[8] - Value beer volume decreased by 40's%[8] Digital Initiatives - Annualized GMV (Gross Merchandise Value) increased by 30% year-over-year[38] - BEES customer on marketplace increased by 80%[38] - SKU (Stock Keeping Unit) / POC (Proof of Concept) increased by 21% year-over-year[38] - MAU (Monthly Active Users) reached 4.7 million[38] - GMV increased by 8% year-over-year[38] - Awareness increased by 25% year-over-year[38]

Financial Performance - Normalized EBITDA increased by 43.7%, with significant growth in Latin America South (LAS) at 93.9% and Central America and the Caribbean (CAC) at 62.3%[3] - Cash flow from operating activities rose by 29.7% compared to R$ 6,109.4 million in 3Q22, driven by Normalized EBITDA growth and improved working capital performance[4] - Net revenue grew by 19.3%, marking the 13th consecutive quarter of double-digit growth, with net revenue per hectoliter increasing by 21.7%[9] - Normalized profit increased by 25.1% to R$ 4,038.9 million, supported by lower financial expenses due to reduced hedging costs[6] - The gross margin expanded by 210 basis points, while the Normalized EBITDA margin expanded by 560 basis points, indicating improved profitability[10] - Year-to-date net revenue increased by 21.9%, with Normalized EBITDA up by 39.6% and gross margin expansion of 230 basis points[9] - The company reported a normalized EBITDA margin of 26.1% for Q3 2023, reflecting a 740 basis points improvement year-over-year[14] - Normalized Operating Profit for Q3 2023 was R$ 347.9 million, with a margin of 19.3%[16] - The company reported a normalized operating margin of 19.0% for YTD23, reflecting a 260 basis point improvement[16] - The company reported a normalized operating profit margin of 20.4% for YTD 2023, a decrease of 10 basis points year-over-year[17] - The company reported a normalized EBITDA of R$ 6,584.3 million in Q3 2023, with a margin of 32.4%, up 520 bps year-over-year[26] - The company reported a profit of R$10,114.3 million for YTD23, up from R$9,491.1 million in YTD22[40] Volume and Market Performance - Total volume in Brazil was nearly flat at -0.1%, with beer volume declining by 1.1% and non-alcoholic beverages (NAB) growing by 2.8%[2] - Zé Delivery achieved 4.7 million Monthly Active Users (MAU), a 9% increase compared to 3Q22, with Gross Merchandise Value (GMV) growing by 32% year-over-year[9] - The company experienced a volume recovery in Brazil NAB, driven by health and wellness brands and enhanced distribution through BEES[15] - Brazil Beer segment's net revenue for year-to-date 2023 was R$ 27,533.3 million, with a 9.9% organic growth[14] - The total volume sold in Q3 2023 was 31,425.0 thousand hectoliters, a slight decrease of 0.1% compared to Q3 2022[17] - The company achieved organic growth of 607.8 million liters in Brazil NAB for YTD23, representing a 2.6% increase[16] - In Latin America South (LAS), normalized EBITDA grew by 98.7% year-to-date, with net revenue increasing by 72.9% despite a volume decline of 6.2%[21] - In Argentina, net revenue increased by 73.3%, with net revenue per hectoliter rising by 91.4%, driven by revenue management initiatives[21] - In Paraguay, volumes grew by mid-single digits, with premium brands, particularly Bud 66, gaining market share[21] - In Chile, the company gained market share, with above core brands led by Budweiser and Stella[21] - In Bolivia, Paceña continued to grow volumes, particularly in 269ml cans and 710ml returnable glass bottles[21] Cost and Margin Analysis - In Q3 2023, net revenue per hectoliter was R$ 399.8, reflecting a 6.4% organic growth, while Cash COGS per hectoliter was R$ (176.0), indicating a -1.9% organic decline[14] - The gross profit margin for Q3 2023 was 46.4%, a 340 basis points increase compared to the previous year[14] - Gross profit margin decreased by 90 basis points to 40.9% in 3Q23[16] - The gross profit margin increased to 48.4% in Q3 2023, up 270 basis points from the previous year[17] - The gross profit margin improved to 49.7% in Q3 2023, up from 48.3% in Q3 2022[45] - The percentage of total COGS increased to 46.1% in YTD23 from 44.0% in YTD22, indicating rising costs[47] Strategic Initiatives and Future Outlook - The company is focused on sustainability, with 5,100 partnering bars and restaurants now using photovoltaic electricity, contributing to zero carbon emissions[11] - The fourth quarter is expected to show continued growth and profitability, with consolidated Normalized EBITDA organic performance anticipated to exceed the 17.1% growth achieved in 2022[9] - The company anticipates continued growth in the Brazilian market, driven by new product launches and market expansion strategies[45] - Future outlook includes a focus on organic growth strategies and potential market expansion initiatives[22] - The company is actively pursuing new product development and technological advancements to enhance its market position[24] - The company aims to continue expanding its market presence and investing in new product development to drive future growth[47] Financial Position and Debt - The company reported a net debt of R$ 2,836.2 million as of September 30, 2023, with a total consolidated debt of R$ 3,717.7 million[31] - The effective tax rate for Q3 2023 was 1.1%, with an income tax and social contribution expense of R$ (44.7) million[32] - The company reported a net increase in cash and cash equivalents of R$5,310.8 million for Q3 2023, compared to R$3,534.0 million in Q3 2022, marking a growth of 50.4%[53] - Cash flow used in investing activities for YTD 2023 was R$3,509.2 million, a significant increase from R$1,648.9 million in YTD 2022[53] - The company paid dividends and interest on shareholders' equity amounting to R$125.4 million in Q3 2023, up from R$117.6 million in Q3 2022, reflecting a growth of 6.6%[53] Shareholder Information - The company’s shareholding structure shows Anheuser-Busch InBev holding 61.8% of shares as of September 30, 2023[34] - The number of basic shares outstanding remained stable at approximately 15,745.5 million in Q3 2023 compared to 15,741.6 million in Q3 2022[51]

Ambev S.A. (NYSE:ABEV) Q2 2023 Results Conference Call August 3, 2023 11:30 AM ET Company Participants Jean Jereissati - Chief Executive Officer Lucas Lira - Chief Financial and Investor Relations Officer Conference Call Participants Lucas Ferreira - JPMorgan Thiago Duarte - BTG Pactual Carlos Laboy - HSBC Isabella Simonato - Bank of America Alan Alanis - Santander Thiago Bortoluci - Goldman Sachs Rodrigo Alcantara - UBS Operator Good morning, good afternoon, and thank you for waiting. We would like to welc ...

Q2 2023 Performance Overview Ambev achieved strong Q2 2023 financial results with double-digit revenue and EBITDA growth, margin expansion, and progress in sustainability initiatives [Financial & Operational Highlights](index=2&type=section&id=Financial%20%26%20Operational%20Highlights) Ambev delivered strong Q2 2023 financial performance with **20.0%** organic net revenue and **34.2%** normalized EBITDA growth, alongside margin expansion Ambev Consolidated Financial Highlights - Q2 2023 (Organic Growth) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 17,989.0 | 18,898.1 | +20.0% | | Gross Profit | 8,614.7 | 9,262.5 | +24.5% | | Normalized EBITDA | 5,538.1 | 5,275.2 | +34.2% | | Normalized Profit | 3,085.8 | 2,681.0 | -13.1% (Reported)¹ | | Normalized EPS (R$/share) | 0.19 | 0.16 | -13.6% (Reported) | - ¹**Normalized Profit** in 2Q22 was positively impacted by a one-off **tax credit** of **R$1,233.7 million** in Brazil. Excluding this, **Normalized Profit** would have grown by **18.0%** in Q2 2023[7](index=7&type=chunk) - Total organic **volume** decreased by **2.2%**, with declines in Brazil (Beer **-2.5%**, NAB **-2.2%**), CAC (**-2.8%**), and Canada (**-6.2%**), partially offset by growth in LAS (**+0.6%**)[3](index=3&type=chunk) - **Normalized EBITDA** grew across all business units: LAS (**+109.8%**), Brazil Beer (**+29.7%**), Brazil NAB (**+24.9%**), CAC (**+7.9%**), and Canada (**+4.1%**), driven by top-line performance and lower cost pressures[4](index=4&type=chunk) - **Cash flow from operating activities** increased by **55.1%** year-over-year, driven by reductions in inventory and improvements in receivables[5](index=5&type=chunk) [Management Comments](index=3&type=section&id=Management%20Comments) Management reported a resilient quarter with double-digit top-line and bottom-line growth, margin expansion, and an improved Brazil Beer COGS/hl forecast - The company achieved a **300 bps** expansion in **Normalized EBITDA margin** and a **170 bps** expansion in **gross margin** during the quarter[10](index=10&type=chunk) - In Brazil, premium and super premium beer brands grew volumes in the **mid-thirties**, gaining **market share** in the segment[10](index=10&type=chunk) - The full-year guidance for Brazil Beer Cash COGS/hl (excluding non-Ambev marketplace products) is now expected to increase between **2.5%** and **5.5%**, an improvement due to lower inflation and favorable commodity prices[10](index=10&type=chunk) - The company reiterates its ambition to deliver better organic **Normalized EBITDA growth** in 2023 than the **17.1%** achieved in 2022, while also expanding **gross** and **EBITDA margins**[10](index=10&type=chunk) [Sustainability Initiatives](index=4&type=section&id=Sustainability%20Initiatives) Ambev advanced its sustainability agenda through social inclusion programs, CO2 emission reductions, and an AI-powered tool for smart drinking - Launched "Fundo Bora Cultura Preta" with **R$ 7.0 million** to boost black entrepreneurs in culture and entertainment[12](index=12&type=chunk) - Reduced over **3.7 thousand tons** of **CO2 emissions** by refurbishing or replacing coolers at over **46,000 points of contact (POCs)**[12](index=12&type=chunk) - Introduced "Flow Voice," an **AI solution** that identifies alcohol consumption through voice to support moderation and safety efforts[14](index=14&type=chunk) Key Markets Performance Key markets showed varied Q2 2023 performance, with strong revenue and EBITDA growth in Brazil and LAS, despite volume declines in other regions [Brazil](index=6&type=section&id=Brazil) Brazil's Q2 2023 segment achieved **9.7%** organic net revenue growth and **29.0%** Normalized EBITDA increase, despite a **2.5%** volume decline Brazil Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 29,491.1 | 28,767.3 | -2.5% | | Net Revenue | 9,452.3 | 10,366.0 | +9.7% | | Normalized EBITDA | 2,999.6 | 2,679.1 | +29.0% | | Normalized EBITDA Margin | 31.7% | 25.8% | +380 bps | [Brazil Beer](index=6&type=section&id=Brazil%20Beer) Brazil Beer's Q2 2023 organic net revenue grew **10.1%** and Normalized EBITDA surged **29.7%**, despite a **2.5%** volume decline Brazil Beer Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 21,944.0 | 21,386.8 | -2.5% | | Net Revenue | 7,912.9 | 8,710.7 | +10.1% | | Normalized EBITDA | 2,574.0 | 2,302.6 | +29.7% | | Normalized EBITDA Margin | 32.5% | 26.4% | +400 bps | [Brazil NAB (Non-Alcoholic Beverages)](index=7&type=section&id=Brazil%20NAB%20%28Non-Alcoholic%20Beverages%29) Brazil NAB reported **7.5%** organic net revenue growth and **24.9%** Normalized EBITDA increase in Q2 2023, despite a **2.2%** volume decline Brazil NAB Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 7,547.1 | 7,380.5 | -2.2% | | Net Revenue | 1,539.4 | 1,655.4 | +7.5% | | Normalized EBITDA | 425.6 | 376.5 | +24.9% | | Normalized EBITDA Margin | 27.6% | 22.7% | +310 bps | - The Pepsi cola brand family grew volumes by **mid-single digits**, with Pepsi Black more than doubling its volumes versus Q2 2022[18](index=18&type=chunk) [Central America and the Caribbean (CAC)](index=9&type=section&id=Central%20America%20and%20the%20Caribbean%20%28CAC%29) CAC region showed sequential improvement in Q2 2023, with **7.9%** Normalized EBITDA growth and **4.8%** organic net revenue, despite a **2.8%** volume decline CAC Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 3,041.2 | 2,957.6 | -2.8% | | Net Revenue | 2,223.9 | 2,473.5 | +4.8% | | Normalized EBITDA | 799.5 | 920.2 | +7.9% | | Normalized EBITDA Margin | 36.0% | 37.2% | +100 bps | [Latin America South (LAS)](index=10&type=section&id=Latin%20America%20South%20%28LAS%29) LAS delivered exceptional Q2 2023 performance with **82.1%** organic net revenue growth and **109.8%** Normalized EBITDA increase, despite macroeconomic challenges LAS Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 6,929.5 | 6,969.8 | +0.6% | | Net Revenue | 3,449.0 | 3,266.0 | +82.1% | | Normalized EBITDA | 904.6 | 837.9 | +109.8% | | Normalized EBITDA Margin | 26.2% | 25.7% | +380 bps | [Canada](index=11&type=section&id=Canada) Canada's Q2 2023 Normalized EBITDA grew **4.1%** with margin expansion, despite a **6.2%** volume decline and flat organic net revenue due to a soft industry Canada Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Volume ('000 hl) | 2,779.9 | 2,607.4 | -6.2% | | Net Revenue | 2,863.8 | 2,792.5 | 0.0% | | Normalized EBITDA | 834.5 | 838.1 | +4.1% | | Normalized EBITDA Margin | 29.1% | 30.0% | +120 bps | Consolidated Financial Results Consolidated Q2 2023 results show strong organic revenue and EBITDA growth and margin expansion, offset by increased finance losses [Consolidated Performance](index=12&type=section&id=Consolidated%20Performance) Ambev's consolidated Q2 2023 organic net revenue grew **20.0%** and Normalized EBITDA increased **34.2%**, with margin expansion, despite negative profit impacts Ambev Consolidated Performance - Q2 2023 (Organic) | Metric | 2Q22 (R$ million) | 2Q23 (R$ million) | Organic Change (%) | | :--- | :--- | :--- | :--- | | Net Revenue | 17,989.0 | 18,898.1 | +20.0% | | Gross Profit | 8,614.7 | 9,262.5 | +24.5% | | Normalized Operating Profit | 4,068.5 | 3,571.3 | +34.3% | | Normalized EBITDA | 5,538.1 | 5,275.2 | +34.2% | | Gross Margin | 47.9% | 49.0% | +170 bps | | Normalized EBITDA Margin | 30.8% | 27.9% | +300 bps | [Other Operating Income/Expenses](index=13&type=section&id=Other%20Operating%20Income%2FExpenses) Other operating income significantly decreased in Q2 2023 to **R$ 396.4 million**, primarily due to the absence of prior-year extemporaneous tax credits Breakdown of Other Operating Income/(Expenses) (R$ million) | Item | 2Q22 | 2Q23 | | :--- | :--- | :--- | | Government grants/NPV of long term fiscal incentives | 321.4 | 386.0 | | Credits/(debits) taxes extemporaneous | 922.1 | - | | Gain/(loss) on disposal of assets | 12.5 | 14.5 | | **Total** | **1,239.4** | **396.4** | [Exceptional Items](index=13&type=section&id=Exceptional%20Items) Exceptional items resulted in a **R$ 123.4 million** loss in Q2 2023, primarily due to increased legal fees related to a court decision - **Exceptional items** include restructuring expenses, COVID-19 related costs, and legal fees[31](index=31&type=chunk) Breakdown of Exceptional Items (R$ million) | Item | 2Q22 | 2Q23 | | :--- | :--- | :--- | | Restructuring | (25.4) | (28.4) | | Legal fees | - | (94.7) | | Other | (5.8) | (0.3) | | **Total** | **(31.2)** | **(123.4)** | [Net Finance Results](index=14&type=section&id=Net%20Finance%20Results) Net finance results for Q2 2023 were a **R$ 1,073.5 million** loss, significantly increasing due to higher losses on derivative and non-derivative instruments Net Finance Results Breakdown (R$ million) | Item | 2Q22 | 2Q23 | | :--- | :--- | :--- | | Interest income | 756.8 | 521.4 | | Interest expenses | (559.7) | (659.6) | | Gains/(losses) on derivative instruments | (846.0) | (462.3) | | Gains/(losses) on non-derivative instruments | (110.3) | (318.5) | | Hyperinflation Argentina | 451.2 | 102.8 | | Other | (187.5) | (257.4) | | **Net finance results** | **(495.5)** | **(1,073.5)** | - Losses on **derivative instruments** were mainly due to hedging carry costs for FX exposure of **US$ 428.3 million** in Argentina (approx. **114%** carry cost) and **US$ 2.0 billion** in Brazil (approx. **6.2%** carry cost)[33](index=33&type=chunk) [Debt and Taxation](index=15&type=section&id=Debt%20and%20Taxation) Ambev maintained a strong **net cash position** of **R$ 8,334.3 million** as of June 30, 2023, with an effective tax rate of **-9.5%** in Q2 2023 [Debt Breakdown](index=15&type=section&id=Debt%20Breakdown) As of June 30, 2023, Ambev's total consolidated debt was **R$ 3,992.3 million**, resulting in a **net cash position** of **R$ 8,334.3 million** Debt Position (R$ million) | Item | Dec 31, 2022 | June 30, 2023 | | :--- | :--- | :--- | | Consolidated Debt | 3,770.7 | 3,992.3 | | Cash and Cash Equivalents | 14,852.1 | 12,013.1 | | Current Investment Securities | 454.5 | 313.5 | | **Net debt/(cash)** | **(11,535.9)** | **(8,334.3)** | [Provision for Income Tax](index=15&type=section&id=Provision%20for%20Income%20Tax) Q2 2023 income tax provision was a **R$ 225.8 million** benefit, leading to a **-9.5%** effective tax rate, influenced by tax benefits Effective Tax Rate Reconciliation | Metric | 2Q22 | 2Q23 | | :--- | :--- | :--- | | Aggregated weighted nominal tax rate | 30.6% | 24.3% | | Income tax and social contribution expense (R$ million) | (474.6) | 225.8 | | **Effective tax rate** | **13.4%** | **-9.5%** | [Consolidated Financial Statements](index=24&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of **R$ 133,294.4 million** and total equity of **R$ 86,366.0 million** as of June 30, 2023 Key Balance Sheet Figures (R$ million) | Item | Dec 31, 2022 | June 30, 2023 | | :--- | :--- | :--- | | Total Assets | 137,958.1 | 133,294.4 | | Total Liabilities | 54,630.3 | 46,928.4 | | Total Equity | 83,327.8 | 86,366.0 | Key Cash Flow Figures - YTD 2023 (R$ million) | Item | YTD22 | YTD23 | | :--- | :--- | :--- | | Cash flow from operating activities | 2,722.0 | 2,839.4 | | Cash flow used in investing activities | (2,259.5) | (2,299.1) | | Cash flow from financing activities | (2,731.1) | (2,722.9) | Other Information This section details Ambev's shareholding structure, hyperinflation accounting impact in Argentina, and reconciliation of non-IFRS measures [Shareholding Structure](index=16&type=section&id=Shareholding%20Structure) As of June 30, 2023, Ambev S.A.'s shareholding structure was majority-controlled by Anheuser-Busch InBev (**61.8%**), with **28.0%** public float Ambev S.A. Shareholding Structure (as of June 30, 2023) | Shareholder | % Outstanding | | :--- | :--- | | Anheuser-Busch InBev | 61.8% | | FAHZ | 10.2% | | Market | 28.0% | | **Total Outstanding** | **100.0%** | [Financial Reporting in Hyperinflationary Economies (Argentina)](index=17&type=section&id=Financial%20Reporting%20in%20Hyperinflationary%20Economies%20%28Argentina%29) Due to Argentina's hyperinflation, **IAS 29** accounting was applied, resulting in a **R$ 102.8 million** positive finance adjustment but a **R$ 276.3 million** negative profit impact - The application of **IAS 29** is required as Argentina's three-year cumulative inflation rate exceeded **100%**[39](index=39&type=chunk) Impact of Hyperinflation Accounting (IAS 29) in Q2 2023 (R$ million) | Metric | Total Impact | | :--- | :--- | | Revenue | 15.9 | | Normalized EBITDA | 13.0 | - The overall impact on Q2 2023 **profit** was negative **R$ 276.3 million**, and the impact on **EPS** was negative **R$ 0.01**[39](index=39&type=chunk) [Reconciliation of Non-IFRS Measures](index=19&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section reconciles Normalized EBITDA, a non-IFRS measure, to reported profit, providing transparency on management's performance metrics Reconciliation from Profit to Normalized EBITDA - Q2 2023 (R$ million) | Item | Amount | | :--- | :--- | | Profit | 2,597.8 | | (+) Income tax expense | (225.8) | | (+) Net finance results | 1,073.5 | | (+) Share of results of joint ventures | 2.4 | | (+) Exceptional items | 123.4 | | **Normalized Operating Profit** | **3,571.3** | | (+) Depreciation & amortization | 1,703.9 | | **Normalized EBITDA** | **5,275.2** |

Ambev S.A. (NYSE:ABEV) Q1 2023 Earnings Conference Call May 4, 2023 11:30 AM ET Company Participants Jean Jereissati – Chief Executive Officer Lucas Lira – Chief Financial and Investor Relations Officer Conference Call Participants Lucas Ferreira – JPMorgan Camila Azevedo – UBS Thiago Duarte – BTG Pactual Carlos Laboy – HSBC Isabella Simonato – Bank of America Ben Theurer – Barclays Gustavo Troyano – Itaú BBA Operator Good morning, good afternoon and thank you for waiting. We would like to welcome everyone ...