Welcome, and thank you for attending CCU's Second Quarter 2026 Conference Call. Today with me are Mr.

Eduardo Ffrench-Davis, Chief Executive Officer, Mr. Felipe Dubernet, Chief Financial Officer, and Mr.

Diego Munisaga, Financial Planning and Investor Relations Manager. You have received a copy of the company's consolidated second quarter 2026 earnings release.

As usual, the call will start by reviewing our overall results, and then we will move on to a question-and-answer session. Before we begin, please take note of the following statements.

Statements made in this call that relate to CCU's future financial results and forward-looking statements, which involve known and unknown risks and uncertainties that could cause our actual performance or results to materially differ. These statements should be taken in conjunction with the additional information about risks and uncertainties set forth in CCU's annual report submitted to the CMF and in our Form 20-F filed with the US Securities and Exchange Commission, both documents available on our website.

It is now my pleasure to introduce our CEO, Mr. Eduardo Ffrench-Davis.

Thank you very much, Claudio, and thank you all for joining us today. It is my pleasure to share with you our second quarter 2026 financial results for the first time as CEO of CCU, a company in which I have worked for more than 20 years, and I am proud to lead at a time that we need to look to the future with a strength and conviction that has always characterized us as we face a particularly challenging context.

Nonetheless, we have always shown a longstanding track record of adaptability and, for sure, execution. Therefore, to continue successfully shaping our future, I would like to mention some relevant changes that we have defined.

We have defined the strategy Vamos por Más, which is built on our four main pillars. First, the first pillar: increase our focus on businesses; the second one: boost operational synergies; the third one: act with greater agility; and fourth one: accelerate our transformation.

These pillars are oriented to generate growth and to respond to the new demands and challenges of the market. To support this strategy, we will execute changes in our organizational structure as well as strengthening our internal processes and capabilities to remain at the cutting edge of new trends while enhancing our technological transformation.

This transition will be implemented gradually throughout this year, with our main focus being to ensure operational continuity and, for sure, performance. I am confident in the commitment that has always characterized all the CCU employees, and together we will prepare CCU to successfully navigate current and future challenges.

Regarding our second quarter performance, CCU delivered a solid 59.4% consolidated EBITDA expansion, mostly driven by a robust set of results in our main operating segment, Chile, which expanded EBITDA 26.2%. The International Business operating segment also contributed to a higher EBITDA by posting a 25.8% lower EBITDA loss as we continue facing a soft consumption environment in Argentina.

On the other hand, the Wine operating segment contracted EBITDA by 61.9%, sharply impacted by unfavorable trends for the wine category globally and a higher cost of wine. I will now pass the call to our CFO, Felipe Dubernet, who will give you further details about our performance by operating segment during this quarter.

Felipe.

Thank you, Eduardo, and good morning, everybody. Consolidated net sales grew 4.8%, almost fully explained by 6.4% higher average prices in CLP as volume declined 1.5%.

Higher prices in Chilean pesos were mostly a consequence of revenue management initiatives in all our operating segments. In terms of volumes, the 2.5% increase in the Chile operating segment was offset by decreases of 7.4% and 13.7% in International Business and Wine operating segments, respectively.

Gross profit grew 6.8%, and gross margin improved 76 basis points. MSD&A expenses rose 3.3% due to higher distribution expenses associated with higher oil prices during the quarter and restructuring expenses in Argentina and in the Wine operating segment.

This was partially offset through ongoing efficiencies initiatives, mainly in logistics. As a percentage of net sales, MSD&A expenses decreased 62 basis points.

In all, EBITDA grew 59.4%. Regarding net income, we recorded a higher loss from second quarter of 2025, mostly due to a non-recurring negative effect of 6,068 million Chilean pesos from an impairment loss related to our business in Bolivia and lower income taxes in second quarter of 2025 coming from a non-recurring positive tax effect in Argentina.

In terms of our segment, the Chile operating segment expanded top line by 1.5%, explained by 2.5% higher volumes, gaining overall market share versus same quarter of last year, partially offset by 1% decrease in average prices in Chilean pesos. During the quarter, the non-alcoholic categories grew mid-single digits, outweighing the low-single-digit decline in alcoholic categories, which encompasses beer and spirits.

Flavored low-alcohol ready-to-drink products led by brands such as Stones in beer, Mistral Ice and Canta Calao in spirits continue to show excellent results, with volume growing double digits in the quarter and representing 8% 8.3% of total alcohol in this segment as of June 2026. Average prices contracted due to mix effect in the portfolio, partially offset by revenue management initiatives in all categories.

Gross profit increased 9.4%, mainly driven by lower direct costs, mostly coming from the 5% appreciation of the Chilean pesos against the US dollar, impacting favorably our US dollar-denominated costs, partially offset by higher aluminum prices. MSD&A expenses grew 3.5%, below inflation, although as a percentage of net sales increased 71 basis points due to expenses pressures coming from higher distribution costs, partially offset by efficiencies.

All together, EBITDA recorded a 26.2% increase, and EBITDA margin expanded 264 basis points. I would like to mention that during the quarter, CCU acquired a 49% equity interest that Nestlé Chile held in our subsidiary Aguas CCU-Nestlé Aguas CCU-Nestlé.

After this acquisition, CCU reached 100% ownership in this subsidiary, allowing us to further consolidate our leadership in a steadily growing water industry in Chile, which is expanding low double digit as of June 2026. Following this transaction, we will maintain our strategic relationship with Nestlé, continuing the distribution of the ready-to-drink coffee-based beverage products and water brands in Chile.

In the International Business operating segment, net sales increased 15.7%, driven by 24.9% higher average prices in Chilean pesos, partially offset by a 7.4% contraction in volumes. Higher average prices in Chilean pesos was due to revenue management initiatives, mainly with price actions in Argentina in line with inflation.

Volumes in this segment were below last year, mainly explained by Argentina due to a high-single-digit contraction in beer and water industries, and a difficult business scenario in Bolivia, marked by social unrest and roadblocks that disrupted our operations. Gross profit increased 20.8%.

MSD&A expenses grew 7.6%, and as a percentage of net sales decreased 460 basis points. EBITDA resulted in a 20 in 25.8% lower loss versus second quarter 2025.

During the quarter, we incurred in restructuring expenses in Argentina by 1,408 million Chilean pesos. The Wine operating segment posted a top-line drop of 14.1%, mostly driven by 13.7% decrease in volumes, as average prices contracted 0.5%.

Lower volumes were driven by industry contraction in export and domestic market in Chile. The decline in average prices were lower due to a negative mix effect in the portfolio and stronger Chilean peso against the US dollar, which impacted negatively export revenues.

These effects were partially offset by revenue management initiatives. Gross profit fell 26.9%, mostly due to cost pressures from a higher cost of wine, partially offset by efficiencies in manufacturing.

MSD&A expenses dropped 3.7%, mostly due to the lower business scale. All together, EBITDA decreased 61.9%.

During the quarter, we incurred in restructuring expenses amounting 1,633 million Chilean pesos. To navigate the difficult scenario in the wine business, we will continue pursuing efficiencies and keep developing a strategy of accelerating high-margin innovation.

In this regard, as of June 2026, flavored low-alcohol ready-to-drink products based on wine almost doubled versus last year, mostly driven by the launch of the single-serve can version of our brand Gato Selección Dulce, among other brands, backed by our multicategory production capabilities. Regarding our main joint venture and associated business in Colombia, we posted mid-teens volume growth during the quarter.

We are focused on that country on building brand equity and scale to enhance profitable growth in the future. Now we will be glad to answer any question you may have.

Thank you, operator. Hola, Eduardo, Felipe, and team.

Thank you for the space for questions. I have two very quick ones, if I may.

The first one, wanted to see if maybe you could elaborate a little bit on how you see the competitive environment in Chile, especially on the soft drink market, anything that has changed the last couple of months, and maybe how do you see the rest of the year. Then the second one, in terms of alcoholic, especially beer in Argentina, we saw volumes continue to be pressured despite the sporting events this quarter.

I wanted to see if you could break down for us what do you expect for the rest of the year and if there was a positive impact or not given the sporting event in the country. Thank you.

Thank you, Alejandro. I will take the first question from Chile.

Thank you for both questions. In terms of competitive environment in Chile, especially in the soft drinks, always this is a very mature category compounded by different segments.

Actually, we operate nine segments within that macro-category, and always it has always been very competitive. We believe that the trends will continue.

All the better-for-you products, all the healthy products, such as waters, flavored waters, juices, functional products, are growing, and we will see that they are continuing growing. We have a strong position in terms of market share in those categories, and we will invest in those categories in order to get more innovations and to push the mix on both categories.

Within the CSD categories, we are doing a great job with Pepsi within the cola segment and with strong brands in the flavor subsegment as well. We believe that the soft drinks will continue growing, mainly through better-for-you products, which we believe that we have a very, very strong position.

The second question, the beer in Argentina, I will pass that question to Felipe now.

Hello, Alejandro. The second quarter, as you noticed, the beer industry contraction was high single digit.

However, we are comparing a particularly, let's say, high comparison base in the second quarter of last year. As maybe in quarter three, volume collapsed as this is in line with significant rise on interest rates in Argentina, unemployment due to all the macroeconomic adjustments that were done in Argentina last year.

We should look or see a recovery in volumes in second half of 2026: one, because of the comparison base on quarter three, on the one hand; but also, what we are seeing now is a continuous improvement in volume trends in Argentina since March as if we seasonally adjust the volumes in Argentina, we are seeing a recovery month on month since March. A more stable macroeconomic scenario in terms of inflation and devaluation in Argentina yet has not translated to a more dynamic consumption environment.

However, everything is volatile, and this is a forward-looking that I cannot ensure to you. We should see a more robust consumption environment towards the end of the year as we have seen, let's say, some good signs since March in terms of improvement of volumes.

Thank you, Alejandro.

That was super clear. Thank you, Eduardo and Felipe.

Hi. Good morning.

Thanks for taking my questions, and congratulations, Eduardo, for the appointment. My first question is related to the strategic plan that you mentioned in your initial remarks.

Maybe if you can give some color of what are some of the targets that you are planning to achieve with this new strategic plan in the medium term, that would be great. My second question is related to Chile, how do you expect consumption to behave the remaining of the year, and maybe if you could share some initial thoughts about 2027 concerning the mega reform approved by the government?

Thank you.

Hi, Fernando. Thank you for your message and, of course, for your questions.

I am very optimism for the future, I will ask you both questions. The first one around the new strategy, for sure, this new strategy will be as our new strategic plan.

We are going to create a new strategic plan based on two main things. The first one, it's going to be a four-year plan looking forward to the 2030 and setting some KPIs for that year.

The second thing is we are going to interrupt the current strategic plan to create a new one, and this new strategic plan is based on the Estrategia Vamos por Más that I talk on the beginning of this presentation. This estrategia is based basically in four main pillars, and I will explain a little bit more further on these pillars.

The first one is to focus on businesses, which is not mean that we haven't had focus on business, but we will strengthen our focus in our businesses, separating or differentiating our core businesses with our high-potential businesses. We are going to go deep in our multicategory strategy with focus on each single category, leading distinct consumption occasions and growing volume and margin across all our operations.

We are going to be very focused on consumer occasions and to go deeper in those occasions and satisfy consumers in different places, times with our multicategory portfolio, which is something that we really believe that is very strong. The second one is operational synergies.

We will reach greater productivity and efficiencies leveraging our multicategory strength and the reduction of redundancies. We are looking for the whole company.

We have done a first single synergy in wines and liquors especially in the domestic Chilean market, but we have several more things to come in order to get more synergies leveraging our multicategory spirits and occasions. The third one is agility.

We will implement a greater autonomy to respond to the market. We are living in a very volatile market with accelerated changings, and we want to be more agile in order to respond those changes.

Less operational frictions, we have called peajes, or toll booths, and a real-time control in our operations with leaner and more connected structures. The fourth one is transformation.

We are doing some transformation, especially with digital tools in sales, for example, with Cúspide in our logistic and planning, integrating new tools, peoples, and tools, structures, and processes, and in industrial in our facilities as well, but we will go deep on that with an architecture based on a new processes and technologies, putting the digital transformation as the number one enabler of synergies and, mainly, growth. That is answering your first question, Fernando.

Obviously, more is coming on our strategic plan, and for sure, I cannot say anymore. This is the main mindset that we are creating in order to have a new strategic plan focused on profitable growth based on our main capabilities.

The second question is about per capita consumption or volumes trends in Chile. Of course, we received the Imacec yesterday, actually, and was a good thing, but obviously, we cannot say that as a country we are ready to grow as we have done in the past.

We still believe that our categories are facing a new trend. For sure, we cannot avoid the downtrend that we are facing with alcohol, but we believe that our categories, with innovation, with certain things, we can turn around that situation.

The wine situation, it's a global one, but we have seen some early stages of green grass with, for example, Bliss, it's a ready-to-drink products. We launched our new wine ready-to-drink products, I don't know, one month ago, and it has been very, very successful.

We believe that we can turn around this alcohol downtrend in the domestic market. On the non-alcoholic business, as I mentioned before, we see that our portfolio, better-for-you portfolio based on waters, flavored waters, juices and nectars, and functional, we are number one in all of those categories.

We believe that will continue growing, integrating new consumer occasions and satisfying consumer needs that are eager for more alternatives, and not only based on CSDs. We believe that in terms of per capita consumption will be a second semester in order to see how the economy is turning around in a positive way, but we believe our portfolio, it's prepared to turn around the situation that we faced on the first semester.

Let me complement what Eduardo has said regarding tax reform. I think it's a good news for the country the approval of the new tax reform reducing corporate taxes in Chile.

When will this come to more consumption is something that we cannot predict. However, in the long term, it's a good news for the country to boost investment in the country, to boost employment.

Of course, this could boost the consumption for our products. As there are many variables or many other inputs that are key for the level of consumptions.

Fernando, thank you.

Okay. Thank you both for the answer.

Thanks, operator, and good afternoon, Eduardo, Felipe, and team. Thanks for the space.

Eduardo, congrats on the new role. Great to meet you.

Perhaps a few follow-ups on the new strategy and the upcoming midterm plan that you're still working on. I realize you're still working on the plan, it's probably a little too early to have definitive answers on this.

Perhaps you can give us some initial thoughts on three things that I'm curious about. The first one is hedging.

CCU has stood out within the publicly traded industry as one of the only companies that doesn't hedge, right? There's some chatter in the market that this generates different pricing needs than your competitors.

Just wondering if within your strategy there are any changes that you plan to make around this or perhaps bring to the board for potential changes. The second side is wine.

Obviously, it seems like you're already doing some restructure in there and you're innovating quite a bit. Wondering if there's a bigger transformation around the approach and the strategy that you guys have had towards the wine segment.

Perhaps whether you'll try to accelerate premiumization or any other things that you plan to change there. Then the last one is for Colombia where you guys have had a decent performance this quarter.

Just wondering if there are any changes that you plan on that side of the business. Thank you.

Hi, Felipe. Thank you for your question.

Three main questions, I will pass the first one to Felipe Dubernet, and the second one and the third one I am going to respond directly.

Hello, Felipe. How are you?

No, our policy regarding hedging of commodities or exchange rate remain unchanged. This is a policy that is reviewed every year by the board of CCU, but as of today, remain unchanged.

Now Eduardo will answer you the question regarding the two important businesses as wine and Colombia.

Regarding wine, for sure, we are facing an important trend globally. We are an important player in Chile, for sure, and at the same time, we're an important player outside in the export.

We're doing, I think, two main things. The third one is not only integrating liquors, which we have an important ammunition or power in Chile with the wines in order to get synergies, but also we are doing this in order to fulfill consumer needs that we believe that are coming together.

Today, the consumer is not only choosing product by product, it's choosing based on consumer occasions. We believe that together in Chile with portfolio combining wines and spirits, we can satisfy better to our consumer and, for sure, increase volumes due that strategy.

In terms of global export, we are focusing our main capabilities on VSPT on exports, increase our footprint outside, getting more markets within the company, and basically, strengthen our position in terms of production, getting synergies and efficiencies from there. We are adjusting some pieces.

For sure, we're facing a very important global trend. We believe that we can start in turning around that situation with this strategy.

For sure, we have to see how it's evolved, but we are taking decisions around that business now. In Colombia, we still believe that we have a very, very important, or plenty of space to grow over there.

Colombia is an interesting country. It's facing a change in his government now.

For sure, we are living a very, very good momentum in Colombia. We are double-digit growth with beer and Malta over there, and we are plenty of innovation and a new strategy setting up to Colombia in order to get more of this country.

Colombia, for us, in this strategy Vamos por Más, is a core country for us. We are there to grow, and we are there to win some battles.

We are going to strengthen our position in Colombia, and we believe that we can create momentum, or continue the momentum that we are facing on that latitude.

Great for that color. Maybe if I can do one follow-up on the cost of wine, less strategic.

You did mention that the cost of wine had increased, and I thought that kind of stood out in stark contrast to what Concha y Toro reported, where they're having much lower cost of wine on a very strong harvest. Just wondering why you think there's a difference.

Perhaps it has to do with the regions, different climate in different regions, maybe what the suppliers of grapes that you guys use. Just wondering if you can comment a little about that differential.

Thank you.

Thank you, Felipe, for the follow-up question. I pass this to Felipe Dubernet.

Okay. Yes, Felipe, regarding the wine cost, as this year, we are facing a particularly unfavorable input costs in term of wine cost in our P&L as the whole industry.

As you mentioned a competitor also, we have had a positive wine harvest this year that will reduce, going forward, our cost of wine, as we reduce, of course, inventory levels that are depending on how we evolve in the volumes. We see in a business that is suffering a lot, not only in consumption, but also in input cost side, in the exchange rate side for our export business, this year a lot.

At least we are seeing some green grass in the horizon now with the input cost of wine going forward. As I said, will depend on how we deplete our inventories going forward.

Very clear. Thanks for that color.

Thank you very much, operator. Good afternoon, everyone.

Olá, Eduardo, Felipe, Claudio. Eduardo, first of all, congrats on the new role, wishing you the best of luck and wishing to continue the conversation with you.

Thank you for the opportunity to ask questions. I think my very one question is for you, Eduardo.

Once you take the CEO role and evaluate the situation in Chile more broadly, how satisfied would you say you are with the price points and price sensitivities, price relativities in each of the categories in Chile? Do you think there is any particular segment that needs a more focused targeted shift or a strategic pivot in the next six months?

Related to this, how should inflation and oil prices particularly impact your pricing decisions particularly for the second half of the year? I know you have already implemented a price adjustment.

How much of your underlying cost inflation is covered with this? Thank you very much.

Hi, Thiago. Thank you for for your message and and for and for your questions.

As you as you see in the presentation, we we have a very strong results in Chile. Chile, mainly through the different categories from from the two categories, keeping our momentum and in market share with the beer category and improving our prices and the excellent development of a non-alcoholic business, improving our market shares and and improving our our our prices, we are facing a a very good position regarding the the the second semester.

In that terms, obviously, there are always opportunities in terms in terms of of pricing. Consumers are are less willing now to take list prices, increase on list prices, as we have done in in several companies have done in the past.

New technologies and new strategies are are have we have to put in in place. In our new strategy, revenue growth management is is is a is a important has an important role in our strategy.

Obviously, revenue growth management is is a is a huge area that we can we can go deep-dive, but there are several initiatives, like for example, let me put an example, the TPO initiatives, trade promotion optimization within the modern trade, and several and and use of algorithm algorithms. We have a proprietary algorithms called SELV, which is helping us our our revenue growth management in traditional trade that we have we can help us to drive price without hitting the consumers and and hitting all the places at the same places and SKUs at the same time.

Technology, processes, and intelligent based on algorithms will help us to improve our mix, not only driven by prices, but also driven by channel and format or pack types mix. I am I'm confident that we have done a very good job on prices within the first semester, and we will continue with new tools doing a greater job on the second one.

Very helpful. Thank you very much.

Can you hear me?

Okay. Sorry about that.

Hi, Eduardo, Felipe. Eduardo, congrats on the new role.

I have a question on the Nestlé transaction, the water transaction in Chile. One, it's pretty hefty transaction from a financial standpoint, I'm wondering how you're thinking about sort of leverage heading into 2027, how you're thinking about the dividends into 2027.

That's one aspect of the question. The other is sort of whether it changes the operating model for that business specifically.

I'm guessing the answer's no, but maybe on brands, maybe does a 100 100% ownership, does that give you more flexibility on brand strategy and water specifically? If you could speak to any specific changes on the back of that transaction.

Thank you.

Hi, Alvaro. Thank you for your message.

Regarding that question, let me answer it with the strategy. As the water business is growing a lot.

Within the water business, we have different kind of products. We have mineral waters, which satisfies certain part of the consumers; purified waters, which compete directly with tap water, actually; and flavored waters.

Our strategy remains the same, but with this acquisition, we are going to strengthen certain part of that strategy. We will continue creating momentum with Cachantun as a number one mineral water within the country.

As you may notice, we have launched several innovations with Cachantun, Strong Gas Cachantun, the black one, has been a very, very successful, not only competing against water business, but also getting momentum and getting consumer occasions from CSDs, which is something that is very interesting in terms of the water penetration. We will continue with that.

Regarding the flavored water, you have seen that flavors are growing, different SKU are growing, different pack types or PPA strategies are getting momentums as well. We have launched several innovations, especially with gas, and they are creating, again, an important growth coming from different categories and not only coming from the water categories.

Finally, purified water, we switch our strategy from Nestlé Pura Vida, Nestlé Pure Life, which was a license fee coming from Nestlé, to our Manantial brand. Manantial has done a very, very great job.

Now we are incrementing our market share in a sustainable manner and with a strong numbers against our competitors, and at the same time, taking volumes from tap water, which is, in Chile at least, is a huge, huge undercover market. We believe that with this acquisition, we will make more agile our decisions around the water business, and we will on growth.

Regarding leverage questions, I will pass the question to Felipe Dubernet.

Hello. How are you, Alvaro?

The leverage, as you notice, increased from 1.7 last quarter to 2.4 this quarter. This is due because we used the cash we had on hand that came from the issuance of the 144A international bond within 2022.

It was very good proceed of the money, this acquisition, because it's accretive, on the one hand, it would further enhance our net income going forward as we will have 100% a 100% net income from this business. Going forward, at the end, as we see if we could see a recovery going forward in Argentina, that has a terrible second half on last year, and to grow on strong results we are delivering in Chile, we should converge towards the middle of the range that we have defined between 1.5, 2.5 net financial debt-EBITDA going forward.

Certainly in quarter four, or not certainly, but we look that with good perspective of reducing the leverage. Regarding dividend policy, as maybe you know and is in the financial statement, the policy in CCU is to distribute at least 50% of net income, and this is maintained in this coming exercise or coming in this year.

For 2027, we need to wait until the shareholder meeting, which is typically in April, if these policies change or not. The policy remains the same: to distribute 50% of the net income, at least.

Great. Wonderful.

Thank you very much.

Good afternoon, guys. Thanks for taking my my my question.

Just to touch basis again on on Argentina, I guess the the the answer was very clear, right, from from a macro perspective and totally get it. It's it's hard for us to to predict, right, what what to expect in the second half.

Still was not a clear for me the the share the share performance, right, when when when when look at your number and and and other brewers, right? Just wondering if you can help me understand what you attribute this share performance we observe during the quarter, specifically in beer, right?

If you can give us granularity on portfolio, the brands, Heineken portfolio and your own brands. What are you planning to to to do in order to revert that share-wise again in into the second half?

Very quickly would be on on to when and and what to expect, right, the the launch of Heineken 0.0, if any, following the launch in in Brazil. If it would be fair to assume anytime soon could be in Argentina as well?

Those would be my questions. Thank you.

Hi, Rodrigo. This is Eduardo.

Thank you for your both questions. The first one regarding the market share in Argentina, well, we have a Nielsen numbers, and we see our market share in Argentina year to date growing a little bit, but flat in that terms.

For sure, we are eager for more as our strategy is saying, and we believe that our new strategy that we are trying to put in place in Argentina for the next year will get a little bit more market share. We have a very strong national brands, but also we have a very interesting local brands in Argentina that they are doing or could be do a greater job region by region.

At least our numbers say that we're stable in terms of market share in Argentina, and actually gaining a little bit on value market share, comparing the volume market share, because, as Felipe mentioned in the presentation, we have done several price increase during the last quarter. Regarding the Heineken 0.0, for sure, we have a very strong pipeline in terms of innovation.

Heineken 0.0 is trying to reach consumer occasions that are not satisfied by the typical normal beer products that are in the market. In Brazil is doing a great job, and we are seeing to integrate that innovation in several operations within our businesses in CCU, not only in Argentina, but in other places as well.

News are coming soon.

Excellent. Thank you.

Thank you, guys.

Hello?

I got two questions about the Colombian market. The first one is: the current expectation for Colombia to continue delivering mid-teens growth, or are there any anticipated changes to the growth trajectory moving forward?

The second one is, as part of the Vamos por Más strategy, that is Colombia one of the core countries, and this strategy aims to deliver higher quality and more profitable growth, should we expect Colombia to continue relying primarily on the value segment as the growth driver, or will there be a stronger strategy focus on premium brands moving forward?

Hi, Maria. Thank you for the two questions.

Regarding the first one, for sure, it's difficult now to predict. It has always been difficult to predict the future, but now in Colombia it's more difficult because governments are changing.

We will see how is this new government set up in Colombia. Regarding of that, Colombia is definitely a place that we believe that we have plenty space for growth.

We truly believe in that market. Obviously, we have a furious competition over there, but we believe that we have built a strong brands, and certain parts of Colombia, we are doing really, really well, for example, in Cartagena.

We believe in Colombia. We don't know if the market, the industry will grow at the same pace that we have done in this last quarter, but we believe into increase our competitive position over there.

In terms of our portfolio, Colombia is a very mainstream portfolio compared other regions or other countries within Latin America, and it's dominated by our competitor over there. We believe that the way that we can improve our profitability over there is to compete asymmetric with a different portfolio.

We will increase our portfolio in terms of different brands, setting different places and trying to reach profitability with that strategy on the future.

Hello, Eduardo, Felipe, Claudio. Thanks for the space.

Just one two questions regarding distribution expenses. This quarter remained a source of pressure despite some efficiency initiatives already underway.

If you could explain which components are driving the increase, such as fuel, labor, freight utilization, etc. In relation with that, which business process are the first targets for your digital investment, and I would like to hear from you, what do you expect the most tangible benefits, whether either sales effectiveness, demand forecasting, procurement, manufacturing, logistics from this investment digital?

Thank you.

Okay. Hello, Kevin.

We have some trouble with the system here, but we solved it. I'm Felipe.

I will take your first question. We had some noise problems, but I think you were wondering about how oil and distribution expenses are impacting our P&L.

I will take this part of the question. The second part regarding the future, Eduardo will take it.

As you notice, we built a KPI that is total expenses. This include production costs, distribution costs, or MSD&A as a whole.

Despite the higher distribution costs because of oil pressures we had, we have been able to reduce our overall expenses over net sale by 56 basis points as in a consolidated basis, which is very good, and keep our expenses below Chilean inflation, 3.8%. Chilean inflation in the period is 4.2%.

In my view, this is good, because at the same time, we were investing more, especially in Chile, behind our brands, that is building the future. At the end, having this external pressure of oil in distribution costs on the one side, but on the other side, higher level of inflation, but on the other side, being able to invest more for the future for our brands, I think is the perfect equation for a company like us, and this was particularly good this quarter.

If you look and we are implementing efficient initiative in all key aspects of the business, with good results mostly in logistics, that in his previous role was led by Eduardo, as he was the head of the non-alcoholic business and the logistics in Chile. Also, I forgot to mention that we have restructuring costs in two business that are suffering, such as Argentina and the wine business, that if we exclude those effects, our total expenses in a consolidated basis will be around 3% growth, this is much less than inflation.

Of course, and then I will pass to Eduardo, looking at the future, we need to improve our margins, that's sure, especially going towards our pre-pandemic margins that we had, and this needs more efforts in terms of synergies and efficiencies. Eduardo will make a commentary on that.

Thank you, Felipe. Yes, Kevin.

Of course, within the new strategy that we have presented, Vamos por Más, transformation is a key pillar, not only for getting efficiencies and improve our EBITDA margin, but also to be the fuel for or enabler for growth, for top-line growth, which is something that this kind of business needs in order to be better, stronger, and with higher margin as well. Digital transformation, as Felipe has mentioned, has been very, very successful, not only with low-hanging fruits initiatives, but also some Stage 1 initiatives.

We have done it silos by silos now. The future and the new structures that we are setting up, it's going to integrate all the transformation activities.

Because if I am making a transformation in logistics in order to improve our logistics system, it's not 100% connected with sales transformation, sometimes there are inefficiencies between them. The new structure and the new strategy, Vamos por Más, is going to integrate the end-to-end value chain and set a proper structure in order to get that transformation, an end-to-end system, and also integrate IT and AI capabilities within that structure at the same time.

We are going to be more agile and penetrate silos and be end-to-end in order to get that transformation. Of course, there are plenty of examples for that, but real-time control, now, for example, control towers in logistics, planning, commercial, industrial, are for example a key system that we are going to put in place in order to get real-time synergies.

Because when you are managing, for example, an efficiency on a line, but you are looking back that numbers one month with one month, you cannot make the necessary adjustment to get the efficiencies of real time. It's just an example.

Obviously, more things to come, but on the future is a key point of our strategy.

Thank you.

Thank you. Thank you all.

Thank you, operator. Thank you all the people who has listened this Q&A session and listened the presentation.

Thank you for the people who has done the question itself. I am very optimism.

I'm very eager for more. In this new role in CCU, I've been here 20 21 years.

I born in this company, but I'm looking with several challenges and optimism the future. Finally, we have to navigate these current challenges and volatile business context, and keep projecting CCU's future.

We will act with more agility and more focus while delivering synergies and efficiencies across all our operating segments, together with the strengthening of our portfolio to adapt to new consumer trends by growing in high-margin innovation category is key for our plan. Working with collaboration, we will be prepared with the strength for our 2027 and 2030 strategic plan, with more focus, more synergies, more agility, and more transformation.

Vamos por Más. Thank you very much for your attendance, and see you in the next chapter.