Welcome, and thank you for attending CCU's First Quarter 2026 conference call. Today with me are Mr.

Felipe Dubernet, Chief Financial Officer; Mr. Diego Munisaga, Financial Planning and Investor Relations Manager; and Mrs.

Carolina Burgos, Senior Investor Relations Analyst. You have received a copy of the company's consolidated first quarter 2026 earnings release.

The call, as usual, will start by reviewing our overall results, and then, we will move on to a Q&A session. Before we begin, please take note of the following statement: Statements that we will make in this call that relate to CCU's future financial results are forward-looking statements which, of course, involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ.

These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU's annual report and in Form 20-F recently filed with the US Securities and Exchange Commission, and of course the annual report that's also available on the CMF and our website. It's now my pleasure to introduce our CFO, Mr.

Felipe Dubernet.

Thank you, Claudio, and thank you all for joining the call today. We started 2020-- the year 2026 with a strong set of results in Chile, our main operating segment, while we continue to face a soft consumption environment in Argentina and a particularly weak business context in the wine business.

In terms of financial results, consolidated EBITDA was flat versus last year, growing 0.1%, as the robust 13.7% EBITDA growth in the Chile operating segment was offset by contraction of 18.6% and 50.1% in the International Business and Wine operating segment, respectively. In the quarter, consolidated net sales were flat, growing 0.2%, explained by 1.8% higher volume, almost fully offset by 1.5% lower average prices in Chilean pesos.

Consolidated volumes were driven by a 3.9% expansion in the Chile operating segment, more than offsetting the decreases of 1.7% and 5.9% in the International Business and Wine operating segments, respectively. Lower average prices in Chilean pesos were mostly due to a negative currency translation effect in Argentina, coming from the 28.7% depreciation of the Argentine peso against the US dollar, being partially compensated by revenue management initiatives.

Gross profit grew by 1.4%, and gross margin improved 55 basis points, mainly due to lower direct cost and efficiencies. MSD&A expenses were practically flat in Chilean pesos, offsetting with efficiencies, overhead expenses' pressures, and restructuring costs in Argentina.

As a percentage of net sales, MSD&A grew 23 basis points. In all, EBITDA margin was stable at 16.1%.

Net income was down 6.8% from last year. In terms of our operating segment, in Chile, top line expanded 3.9%, explained by higher volumes as average prices were flat.

Higher volumes were driven by high-single-digit growth of non-alcoholic categories, and overall market share gains in alcoholic and non-alcoholic categories. Alcohol products, which encompasses in this segment beer and spirits, decreased low-single digits, although flavored low-alcohol ready-to-drink products volumes grew low-double digits.

Flat average prices were a consequence of a mix effect in the portfolio, mainly due to the growth in non-alcoholic, particularly in water. Gross profit increased 10.2%, and gross margin rose to 278 basis points compared to last year, mainly driven by lower cost coming from the 8.1% appreciation of the Chilean peso against the US dollar, impacting favorably our US dollar-denominated cost, and efficiency gains in procurement and manufacturing costs, partially offset by higher aluminum prices.

MSD&A expenses as percentage of net sales grew 31 basis points. All together, EBITDA increased 13.7%, and EBITDA margin was up by 173 basis points, reaching 20.0% EBITDA margin.

In the International Business operating segment, net sales recorded a 6.7% decrease, driven by 5.1% lower average prices in Chilean pesos and a 1.7% contraction in volumes. Lower average prices in Chilean pesos were a consequence of a negative currency translation effect in Argentina and negative mix effect, partially offset by price actions in line with inflation on a year-to-date basis, although still lagging annual inflation in this country.

Volumes in this segment were below last year, explained by Argentina to a mid-single-digit contraction in beer in a stable market share scenario, partially offset by a low-single-digit increase in the non-alcoholic category. As a result of the challenging scenario in Argentina, gross profit contracted 10.7% in Chilean pesos, and gross margin decreased by 218 basis points due to cost pressures.

MSD&A expenses as a percentage of net sales decreased 54 basis points due to efficiencies. In all, EBITDA contracted an 18.7-- 18.6%.

Excluding the before-mentioned restructuring costs in Argentina, EBITDA would have contracted a 10.4%. The Wine operating segment posted a top-line drop of 7.2%, mostly driven by 5.9% lower volumes and 1.4% lower average prices.

Weaker volumes were explained by a contraction in both exports and our domestic market, in line with the industry. The lower average prices were mostly as a result of the appreciation of the Chilean peso against the US dollar, and its unfavourable impact on export revenues together with mix effect, partially offset by revenue management initiatives in domestic market.

Gross profit was down 21.8%, and gross margin deteriorated by 589 basis points, mostly due to higher cost of wine. MSD&A expenses as percentage of net sales were flat.

All together, EBITDA decreased a 50.1%, and EBITDA margin was down 508 basis points. Regarding our main joint venture and associated business in Colombia, we posted mid-teens volume growth during the quarter, continuing on a positive path of building business scale.

We are focused on building brand equity to enhance profitable growth in the future in this country. Now, I will be glad to answer any question you may have.

Hi. Good morning, everyone.

Thanks for taking my questions. The first one is related to Chile, if you can explain or give us some color of what were the drivers of the high-single-digit growth of non-alcoholic drinks.

Oh, and how do you expect volume to behave in the quarters ahead? That's the first one.

Fernando. Would you like to make me the second question right now?

You have two questions.

Okay? Sure.

The second question is regarding the solid gross margin expansion that you deliver this quarter, how are you thinking about costs the remaining of the year considering the volatility of aluminum prices and the strength of the Chilean peso? Both questions are related to Chile.

Okay. Thank you, Fernando, for your question.

First, your first question regarding the the the good expansion we have we have had on on the non-alcoholic category, I would say that there are differences between products in terms of growth. As soft drinks in Chile, we have a high per capita consumption compared to the rest of Latin America.

This category particularly grew something flat or or very low single digit. However, the the the rest of of the categories show a very good growth, especially driven by water.

This is, I think, is more related to consumer trends, some innovations we have had, and continue growth of enhanced water or flavored water with natural juices, such as the Mas brand, huh? In fact, in in in in all this category of water that also encompasses the enhanced water, we grew double digit, huh?

There are other other liquids that regain growth, such as juices, growing mid-single digit. Also all the functional ones that we could highlight energy drinks and sport drinks.

I would say very low growth in in soft drinks. However, very high growth in all the rest of the portfolio, and is more related to consumer trends, I would say, this particularly very good growth in the non-alcoholic category in Chile.

Going forward, I would say we I is is difficult to do forecast, especially when the consumer is under pressure given, increases in oil, inflationary pressures. It's difficult to to say how this would evolve going forward, because as as particularly in Chile, oil prices, gasoline prices were passed through the consumer very quickly.

As you mentioned linking with your second question, is a very volatile scenario not only for us in terms of input costs, but also for the consumer in terms of how its own cost would evolve, and this could impact our demand of of products, huh? Far, very good results in the non-alcoholic category.

Regarding input costs, I would highlight that is not only aluminum, but also oil prices that impact our distribution distribution costs, huh? These I I would say are the main drivers of higher input costs that currently we are having, linked also with all the plastic-related packaging materials, such as PET, polyethylene, and and and and and polypropylene that we use especially for for packaging.

As you mentioned, we delivered a solid gross margin in in in Chile driven by, of course, the appreciation of the of the Chilean peso, but also efficiencies in in manufacturing and in in procurement. Going forward, I would say every day is Today, I I saw Bloomberg, and oil prices were down 5%, but maybe in a week we we could have plus 5%.

It's very volatile, huh? However, we have took actions since the beginning of this rally on on on on prices, especially as you mentioned aluminum, but also oil, and we have in in in end of March, April, increased prices across the portfolio.

Great. Thank you, Felipe.

Good afternoon, Felipe and the rest of the team. I had two questions.

The first concern is about Chile EBITDA margin. Are there any effect that can be repeatable for the rest of the year?

Are this level sustainable for the remaining of 2026? The second question is regarding Argentina.

Do you expect a recovery in volumes in the coming quarters?

Yeah. Regarding EBITDA margin, as you mentioned, yeah, we have had a nice expansion in terms of EBITDA margin, because we had overall better prices than last year in all the categories.

We suffered from mix effect, huh? That's is logical.

When you sell more non-alcoholic than alcoholic products, of course, we have an impact on price per hectoliter, okay? Also, unit cost help us during first quarter.

Going forward, your question, I repeat what I have answered to Fernando Olvera in the previous question. At the end, we are suffering from a very volatile scenario.

We are trying to do everything to compensate these new input costs, but we need to be careful because it's a balance between volume and price. As I mentioned, we have increased prices in Chile end of March, beginning of April in all the categories, and also we are searching for additional efficiencies in order to compensate the effects.

It's very volatile, and it's too early. Until the conflict is not reaching an end, and still we are suffering with this volatility in oil prices, and also aluminum prices, and other packaging materials, as I said, is difficult to do a proper forecast.

Of course, we have scenarios internally that so far with the price increases we did, more or less we are able to compensate. However, as I mentioned, we could face, or we could find a more soft consumer in terms of that the consumer not only consume or buy our products, but has other needs, for example, to run the car, and now is paying more for the gasoline for his car.

We need to be very careful. Regarding Argentina volumes, yeah, the first quarter, I would say, was soft, still soft.

We decreased our volumes in non-alcoholic, as we mentioned, in mid-single digit. However, the first quarter of last year was a very high comp.

In the following quarters, I'm sure we'll be seeing a growth when you compare quarter two against quarter two, quarter three against quarter three, and quarter four against quarter four. This is related because the last nine months of last year were particularly weak in Argentina.

Now, I think we face a more stable macroeconomic situation. However, with a lot of inflationary pressures, I would say.

We have high inflation in Argentina. We have been able so far to increase prices in line with inflation, as we kept a lag from last year.

Last year, our prices increases were below inflation. Overall, in Argentina, I would say we have more favorable comps.

However, we don't see an extraordinarily good recovery. However, it's more stable so far, okay?

Thank you, Felipe. I have a follow-up question.

Can you give us a sensitivity in EBITDA according to the volatility in oil prices? Yeah.

I would say in terms of the impact on oil prices, we have direct effects that are completely direct because all the contracts and the drivers are particularly linked to oil prices, such as distribution costs. This has significant impact, and other costs such as glass, that is very energy intensive.

I would say that each $30 per barrel of oil increase, we are talking something like $30 million, huh? Direct impact of oil prices, huh?

This could be compensated, on the other hand, by the appreciation of the Chilean peso, huh? Each 1% of appreciation of the Chilean peso is about $4,000 $4 million, huh?

If we have 10% of appreciation of the Chilean peso, we are talking about significant margin to compensate. These are theoretical effects, because at the end, it will depend how this would evolve in terms of the volatility we are seeing today.

Thank you, Felipe.

Hi. Thanks for taking my question again.

I have just a quick one regarding the wine business, if you can share what is your outlook for the remaining of the year, and if you have seen any sign that suggest volume stabilization or even a recovery of the market.

Thank you, Fernando. I would say overall, the wine consumption in the world, Chile is not the exception, huh?

Also, overall in the world, wine consumption is declining, huh? At the end, we need to do things differently, to enhance innovation, and to focus on key markets and key products or key brands, especially in the domestic market.

The outlook going forward, I would say the export business is different than the domestic one. I think the domestic one will continue to experience a decline on that.

This could be transferred, this consumption, to beer consumption or to other kind of alcoholic beverage, such as the low-alcohol, ready-to-drink, flavored alcoholic products, huh? It's a switch of the consumer.

I would say the outlook is not positive in our view, because at the end, we are experiencing what the world is experiencing in terms of this particular category. However, there are opportunities in the export market, as there would be certainly consolidation in the industry.

Also, we have enough scale to operate in different markets in the export business, huh? Because at the end, in terms of market share of our exports of the total Chilean wine that is an overall brand in the world, I would say we will be growing, huh?

In the domestic, I would say is more a declining. However, focusing on more profitable products and on innovation.

Okay.

Felipe, in that regard, have you consider selling the wine business?

No, because it has synergies, especially in the domestic market. As I said, the export business will be growing its profitability and market share.

Also, consider that the wine business particularly this year is very affected by cyclical wine costs, huh? The last harvest was almost normal, let's say.

However, this year we have a particularly perfect storm: so lower consumption globally, as I said, and particularly in the domestic business, but we have a very high market share, I would say as I said, strategy is to focus more on a more profitable portfolio, doing efficiencies, and because in the route to market, we have synergies so far.

Okay. Oh, great.

Thank you, Felipe.

Hello, Santiago. Thank you for the question.

As we stated in the press release, we made the disclosure between how much was the growth between alcoholic and non-alcoholic. Particularly in non-alcoholic, we grew high-single digit, and in alcohol products, we declined a low-single digit.

This is what we can say. On the other hand, particularly in Chile, we gained both alcoholic and non-alcoholic product market share.

In the other important market that is Argentina, we also stated that we decreased the alcohol volumes by mid-single digit. On the other hand, we grew the non-alcoholic portfolio by low-single digit.

That's the disclosure.

Thank you all for attending this conference call. In summary, during first quarter of 2026, we delivered a robust performance in Chile, our main operating segment, and faced challenging business environment still in Argentina, and particularly in the wine business.

Looking forward, we will continue working under the execution of CCU's 2025-2027 strategic plan, and its three pillars: profitability, growth, and sustainability, which will be track crucial to face the singular moment that the global economy is going through given current geopolitical conflicts which have materially increased costs globally, increasing inflationary pressures. Our company is not exempt from this, forcing us to act with caution and deploy our resiliency and our adaptation capacity to navigate this uncertain and volatile scenario.

Regarding this, CCU already took at the end of the quarter the quarter proactive actions of revenue management initiatives, and will continue reinforcing efficiency efforts and managing capex priorities. All of these initiatives aim to offset the negative impact of the current scenario.

Thank you all, and I wish you a wonderful afternoon.