We are - Heineken

We are
HEINEKEN
Company Presentation 2013
| Heineken NV | Heineken Holding NV
HEINEKEN: A leading global brewer
with excellent growth platforms
Second largest brewer in the world by revenue1
A highly diversified emerging market footprint
Heineken®, the world’s leading international premium beer
 Heineken® available in 178 countries
 Highest beer brand equity in the world2
Diverse product portfolio
 More than 250 international, regional, local and specialty
beers and ciders
Leading brewer and largest beverage distributor in Europe
A broad geographic footprint
 Excellent spread of profits and cash flow
2
1 Inclusive of APB Pro-forma 2012
2 Millward Brown: BrandzTM Global Equity Study 2012
HEINEKEN through the years
A proud, independent global brewer
1864
1939
Gerard Adriaan
Heineken acquires
his first brewery
in Amsterdam,
Netherlands
HEINEKEN is
listed on the
Dutch Stock
Exchange
1865 –
1938
Import to Africa
and USA, expansion
in Western Europe
and entry into Asia
Pacific
3
2002 –
2007
2009
Expansion in
Central and
Eastern Europe
1940 –
2001
Expansion in
Africa, and
Americas
2008
Acquisition
of Scottish &
Newcastle
2010
The Heineken
Africa Foundation
is launched
2012
Acquisition of
FEMSA beer
business in
Mexico and Brazil
2009
Joint ownership of
India’s No. 1 brewer
United Breweries
Limited
2011
Acquisition of
five breweries
in Nigeria and
two in Ethiopia
Gained full
control of
Asia Pacific
Breweries
Diverse and balanced geographic footprint
Increasing exposure to developing markets
70+
250+
COUNTRIES
165
BREWERIES
50%
BRANDS
Group beer volume1
by region (2012)
OF GROUP
196mhl
OPERATING
PROFIT (BEIA)
85,000
GROUP BEER
FROM
DIRECT
VOLUME
DEVELOPING
EMPLOYEES
AME
13%
WE
22%
MARKETS
Americas
29%
CEE
25%
Asia Pac
11%
Group Operating profit (beia)2
by region (2012)
Operating Companies
WE
29%
AME
20%
Joint Venture
Export
CEE
11%
Licences
Americas
24%
Asia Pac
16%
4
1 Group beer volume is consolidated beer volume plus attributable share of volume from joint ventures and associates
2 Group operating profit (beia) is consolidated operating profit (beia) plus attributable share of operating profit (beia) from joint ventures
and associates. Excludes Head Office.
2012FY proforma (including APB from 1 January 2012)
Strong track record of growth
Consolidated Revenue (beia) in €m
CAGR: +6.4 %
Consolidated beer volume in mhl
CAGR: +8.1%
2012
172
2011
165
2010
18,383
2011
17,123
2010
146
16,133
2009
125
2009
14,701
2008
126
2008
14,319
Consolidated operating profit (beia)* in €m
CAGR: +9.8%
2012
Diluted EPS (beia)* in €
CAGR: +8.7 %
2,666
2012
2011
2,456
2011
2010
2,430
2010
2009
2008
5
2012
* 2010 and 2012 restated
1,967
1,834
2009
2008
2.89
2.70
2.58
2.15
2.07
Vision, mission and values
We are
We value
We want
A proud, independent,
global brewer committed
to surprising and exciting
consumers everywhere.
A passion for quality,
enjoyment of life, respect
for people and respect
for our planet.
To win in all markets
with Heineken®, and with
a full brand portfolio in
markets where we choose.
Business priorities
6
1
2
3
4
5
6
Grow
Heineken®
Brand
Consumerinspired,
customeroriented,
brand-led
Capture the
opportunities
in emerging
markets
Leverage the
benefits of
HEINEKEN’s
global scale
Drive
personal
leadership
Embed and
integrate
sustainability
Heineken® brand: Truly global reach
Heineken®: Celebrating 140 years in 2013
Heineken® share of IPS* in 2012
Heineken® outperforms
(Volume Growth, CAGR 2005-2012F)
4.7%
20%
5.4%
10%
3.0%
Beer Market
10%
6%
IPS*
5%
4%
3%
Heineken®
‘Open Your World’: Strong global activation
Design
7
Engagement
Source: Plato, July & August 2012
Beer market & IPS estimates for 2011 and 2012
*IPS = International Premium Segment (volume sold outside home market)
Innovation
Communication
3%
Other global brands driving value
Margin enhancing global brands
Global Brands Portfolio
Indicative price vs. Mainstream beer
(Index = 100)
8
Over 60% of Group beer volume from
developing markets
Profit from developing markets grew 7% organically in 2013HY
2013HY Developing markets:
Group beer volume split
2013HY:
% of total Group
Latin
America &
63%
Caribbean
49%
50%
35%
Asia
Pacific
15%
Europe
Africa
Middle
28%
51%
50%
Group beer
Group
Group
volume
revenue
operating
37%
East
22%
profit (beia)
Developing
9
Organic growth calculations assume HEINEKEN’s joint venture share of 41.9% of APB and 50% of APIPL prior to consolidation is maintained
through to 15 November 2013. Organic growth of consolidated volume, consolidated revenue and consolidated operating profit (beia)
excludes any impact from APB/APIPL. Organic growth on group volume and group financials includes an impact from APB/APIPL.
Developed
Drive personal leadership
Leverage Global Talent Pool

64 nationalities in senior management

Women represent 14% of senior
management

Foster an entrepreneurial and
accountability culture

New HEINEKEN Leadership model

140 nominated leaders completed
leadership development programmes
in 2012
10
Embed and integrate sustainability
PROTECTING WATER RESOURCES


REDUCING CO2 EMISSIONS
Reducing specific water

In the brewery by 40%
consumption by 25%

From fridges by 50%
Aiming for water compensation

From distribution by 20%
in water scarce and distressed
areas
SOURCING SUSTAINABLY


ADVOCATING RESPONSIBLE
Deliver 60% of raw materials
CONSUMPTION
in Africa via local sourcing

Aim for at least 50% of our main
raw materials supplied from
commitments

sustainable sources

Ongoing compliance to supplier
code procedure
Delivering on industry
Making responsible consumption
aspirations through Heineken®

Every market in scope has and
reports publicly on a measurable
partnership aimed at addressing
alcohol abuse
11
Africa Middle East
Thirteen #1 and four #2 positions
Beer market growth drivers:
 Supportive demographics and economic growth
 6 of the top 10 fastest growing economies
globally are in Africa1
 Emerging, brand-conscious middle class
A well balanced portfolio with strong local and
regional brands and growth in international premium
Heineken®, the leading IPS* brand (CAGR of 17% in
past 5 years)
Strong market positions in large and growing
markets across the region
47% of raw materials locally sourced with a target
to reach 60% by 2020
HEINEKEN Africa Foundation underpins a passion and
commitment to responsible growth in the region
12
Plato July and November 2012
(1) IMF, world economic outlook database
*IPS = International Premium Segment (volume outside home market)
44
41
9
29mhl
14,900
BREWERIES
EXPORT
MARKETS
JV’S/
ASSOC.
GROUP
DIRECT
BEER VOLUME EMPLOYEES
Regional beer market dynamics:
Beer market
Growth CAGR % (201120)
Per Capita
Consumption
Litres (2011)
IPS* CAGR%
(2011-20)
Population CAGR %
(2011-20)
4%
9
7%
2%
Regional financial performance:
2012FY (mhl/€m)
Organic growth
CAGR 2007-2012
Consolidated
beer volume
Revenue
EBIT
(beia)
Operating profit
(beia) margin
23.3
2,639
652
23.3%
+10%
+15%
+17%
Key beer brands
Americas
Attractive growth potential
in a large profit pool
Americas region represents the largest global beer
profit pool
Operate under a range of business models
Aim is to win in key markets and drive value growth
Strongly leverage on global marketing expertise
20
38
4
63mhl
BREWERIES
EXPORT
MARKETS
JV’S/
ASSOC.
GROUP
DIRECT
BEER VOLUME EMPLOYEES
Regional beer market dynamics:
Beer market
Growth CAGR % (201120)
Per Capita
Consumption
Litres (2011)
IPS* CAGR%
(2011-20)
Population CAGR %
(2011-20)
2%
61
4%
1%
Regional financial performance:
Focus on premiumisation and innovation
Mexico is the largest market for HEINEKEN in terms
of both volume and profitability
Value creation strategy delivering results in Mexico
Dos Equis, one of the fastest growing import brands
in USA
Heineken® brand in Brazil (CAGR of 59% in past 5
years)
13
Plato July and November 2012
*IPS = International Premium Segment (volume outside home market)
23,400
2012FY (mhl/€m)
Organic growth
CAGR 2007-2012
Consolidated
beer volume
Revenue
EBIT
(beia)
Operating profit
(beia) margin
53.1
4,523
748
14.7%
+1.4%
+3.6%
+12%
Key beer brands
Asia Pacific
Growing, dynamic beer market
with increasing premiumisation
Beer market growth drivers:



Young and growing population
Aspirational consumers and a growing middle
class
Strong economic growth
A premium-led portfolio comprising
strong local mainstream brands
Heineken® brand volume of 6.5mhl in 2012,
growing at a CAGR of 29% in last 5 years
Unparalleled opportunity in IPS:



Heineken® and Tiger® brands represent 34% of
IPS*
Maximise international potential of the Tiger®
brand
Capture potential of the developing and profitable
IPS in China and India
14
Plato July and November 2012
*IPS = International Premium Segment (volume outside home market)
25
7
4
29mhl
8,000
BREWERIES
EXPORT
MARKETS
JV’S/
ASSOC.
GROUP
DIRECT
BEER VOLUME EMPLOYEES
Regional beer market dynamics:
Beer market
Growth CAGR % (201120)
Per Capita
Consumption
Litres (2011)
IPS* CAGR%
(2011-20)
Population CAGR %
(2011-20)
3%
18
7%
1%
Regional financial performance:
2012FY (mhl/€m)
Organic growth
CAGR 2007-2012
Consolidated
beer volume
Revenue
EBIT
(beia)
Operating profit
(beia) margin
3.7
527
267
29.7%
+4.4%
+8.5%
+25%
Key beer brands
Central & Eastern Europe
Sustainable value growth focus
A large and diverse beer market with high per capita
consumption
A diverse product range and balanced portfolio of
markets
HEINEKEN has ten #1 and #2 positions
52
18
3
55mhl
BREWERIES
EXPORT
MARKETS
JV’S/
ASSOC.
GROUP
DIRECT
BEER VOLUME EMPLOYEES
Regional beer market dynamics:
Beer market
Growth CAGR % (201120)
Per Capita
Consumption
Litres (2011)
IPS* CAGR%
(2011-20)
Population CAGR %
(2011-20)
1%
61
5%
0%
Leading in innovation with the most complete
‘Radler’1 portfolio
Regional financial performance:
Strategic focus on revenue management and
2012FY (mhl/€m)
Organic growth
CAGR 2007-2012
long term value creation
Strong commercial execution through leveraging on
sales and brand marketing capabilities
Heineken® brand offers an exciting growth
opportunity
Margin enhancing Desperados brand available in 19
countries (CAGR of 20% past 3 years)
15
Plato – July and November 2012
1 Radler – mix of beer and natural juice, 2% ABV
*IPS = International Premium Segment (volume outside home market)
17,700
Consolidated
beer volume
Revenue
EBIT
(beia)
Operating profit
(beia) margin
47.3
3,280
349
9.9%
-1.5%
+1.5%
-2.8%
Key beer brands
Western Europe
Strong market positions
and cash generation
A large and resilient beer market, with a significant
profit pool
Strong leading positions across the region
Region has realised ~50% of HEINEKEN’s cost
savings1
Strong free operating cashflow generation
Focus on premiumisation, segmentation and
innovation
Leading in responsible consumption
Driving value in the on-premise channel through
innovation, strong local and global brand activation
Winning in the off-premise through strong
commercial execution and retailer partnerships
Proven track record in delivering consistent profit
growth
16
Plato May , July and November 2012
1 Fit2Fight (2006-2008) and TCM1 (2009-2011)
*IPS = International Premium Segment (volume outside home market)
26
17
0
45mhl
18,600
BREWERIES
EXPORT
MARKETS
JV’S/
ASSOC.
GROUP
DIRECT
BEER VOLUME EMPLOYEES
Regional beer market dynamics:
Beer market
Growth CAGR % (201120)
Per Capita
Consumption
Litres (2011)
IPS* CAGR%
(2011-20)
Population CAGR %
(2011-20)
0%
56
1%
0%
Regional financial performance:
2012FY (mhl/€m)
Organic growth
CAGR 2007-2012
Consolidated
beer volume
Revenue
EBIT
(beia)
Operating profit
(beia) margin
44.3
7,785
964
12.4%
-3.5%
-1.3%
+4.3%
Key beer brands
HEINEKEN’s shareholder structure
Heineken N.V. shares held by Heineken Holding N.V. equals
the number of shares issued by Heineken Holding N.V.
Holding companies
Greenfee B.V.
of Heineken family
88.55%
11.45%
L’Arche Green N.V.
51.083%
Heineken Holding N.V.
FEMSA
Free float
14.935%
33.982%
FEMSA
Free float
12.532%
37.463%
50.005%
Heineken N.V.
17
As at December 2012
Sponsored Level 1 ADR Programmes
Heineken N.V.
Heineken Holding N.V.
Bloomberg ticker: HEINY
ISIN: US4230123014
Cusip: 423012301
Exchange: OTC
Ratio: 2 ADRs: 1 Ordinary Share
Bloomberg ticker: HKHHY
ISIN: US4230081014
Cusip: 423008101
Exchange: OTC
Ratio: 2 ADRs: 1 Ordinary Share
Depositary bank: Deutsche Bank Trust Company Americas
ADR broker helpline:
+1 212 250 9100 (New York)
+44 207 547 6500 (London)
E-mail: adr@db.com
ADR website: www.adr.db.com
Depositary Bank’s local custodian: Deutsche Bank, Amsterdam
18
Contact Information
If you would like further information about HEINEKEN,
please visit our website at:
www.theHEINEKENcompany.com
HEINEKEN Registered Office:
Tweede Weteringplantsoen 21, 1017 ZD Amsterdam
P.O. Box 28, 1000 AA Amsterdam, The Netherlands
T: 31 (0) 20 523 9777
Investor enquiries:
T: +31 (0) 20 523 9590
or by email at: investors@heineken.com
Media enquiries
T: +31 (0) 20 523 9355
Sustainable development:
T: 31 (0) 20 523 9777
19
Disclaimer
This presentation contains forward-looking statements with regard to the financial
position and results of HEINEKEN’s activities. These forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ materially
from those expressed in the forward-looking statements.
Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s
ability to control or estimate precisely, such as future market and economic
conditions, the behaviour of other market participants, changes in consumer
preferences, the ability to successfully integrate acquired businesses and achieve
anticipated synergies, costs of raw materials, interest rate - and foreign exchange
fluctuations, change in tax rates, changes in law, changes in pension costs, the
actions of government regulators and weather conditions. These and other risk factors
are detailed in HEINEKEN’s publicly filed annual reports.
You are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this presentation. HEINEKEN does not undertake
any obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of these materials.
Market share estimates contained in this presentation are based on outside sources
such as specialised research institutes in combination with management estimates.
20