Slide 1: Full Year 2015 Results HEINEKEN N.V.
FULL YEAR 2015 RESULTS HEINEKEN N.V. Strong performance delivering on strategy Jean-François van Boxmeer CHAIRMAN OF THE EXECUTIVE BOARD/CEO AMSTERDAM, 10 FEBRUARY 2016 1
Slide 2: Disclaimer
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 forwar
Slide 3: 2015 Key Highlights
2015 Key Highlights Strong performance delivering on strategy Organic revenue +3.5% with rev/hl up +1.3% Consolidated beer volume +2.3% organically with growth from Americas, Asia Pacific and Europe more than offsetting weaker volume in Africa Middle East & Eastern Europe Heineken® volume +3.5
Slide 4: Diversified Footprint Driving Balanced Growth
Diversified Footprint Driving Balanced Growth 2015 FY Organic growth % AFRICA MIDDLE EAST & HEINEKEN NV AMERICAS ASIA PACIFIC EUROPE EASTERN EUROPE Consolidated beer volume 2.3 -2.0 5.1 6.3 1.3 Revenue per hl 1.3 4.3 3.1 -2.1 -0.2 Revenue 3.5 2.7 8.5 4.1 1.4 Operating profit (beia) 6.9 -11 15 9.7 7.
Slide 5: Heineken: Volume Growth Across All Regions
Heineken : Volume Growth Across All Regions ® Heineken® volume in the premium segment +3.5% Double digit growth in Brazil, CCU markets, the UK, South Africa and Mexico Volume growth in Vietnam and continued improvement in the US Successful UEFA Champions League, James Bond and Rugby World Cu
Slide 6: Innovations Contributed €1.9bn of Revenue
Innovations Contributed €1.9bn of Revenue Innovation Rate of 9.2% LEADING IMPROVING Innovation rate1 9.2% INNOVATION DRAUGHT 7.7% IN CIDER 5.9% 5.3% 4.1% 2011 2012 2013 2014 2015 Innovation revenue €1.9bn LOW/NO ALCOHOL CRAFT/VARIETY 28% CAGR €0.7bn 2011 2015 1 The innovation rate is calculated as r
Slide 7: Delivering Further Margin Expansion
Delivering Further Margin Expansion In line with full year 2015 guidance +23bps +46bps 16.5% 16.2% -23bps 2014FY operating margin(beia) Dilutive impact Empaque Underlying improvement 2015FY operating margin(beia) • Delivered in a balanced way through effective revenue management, continued focus on
Slide 8: Full Year 2015 Results HEINEKEN N.V.
FULL YEAR 2015 RESULTS HEINEKEN N.V. Laurence Debroux MEMBER OF THE EXECUTIVE BOARD/CFO AMSTERDAM, 10 FEBRUARY 2016 8
Slide 9: Financial Overview
Financial Overview Key Financials Mhl/€m unless otherwise stated 2015FY 2014FY Total Change (%) Organic Change (%) Revenue 20,511 19,257 6.5 3.5 Operating profit (beia) 3,381 3,129 8.1 6.9 Operating profit (beia) margin 16.5% 16.2% 23bps Net profit (beia) 2,048 1,758 16 16 Net profit 1,892 1,516 25
Slide 10: Revenue: +3.5% Organic Growth
Revenue: +3.5% Organic Growth Organic growth +3.5% +2.2% 1.3% €m +2.5% €m 0.5% 19,257 20,511 FY14 Revenue Consolidation impact Currency translation Total volume Rev/hl FY15 Revenue 10
Slide 11: Operating Profit (beia) OG +6.9%
Operating Profit (beia) OG +6.9% +6.9% €m €m +3.3% -2.1% 3,129 3,381 2014FY Operating profit (beia) Consolidation impact Currency translation Organic growth 2015FY Operating profit (beia) 11
Slide 12: Diluted EPS (beia) €3.57, +17%
Diluted EPS (beia) €3.57, +17% EPS +17% +€0.50 +€0.12 -€0.10 €3.05 €3.57 2014FY Diluted EPS (beia) Consolidation impact Currency translation Organic growth 2015FY Diluted EPS (beia) 12
Slide 13: Strong Free Operating Cash Flow
Strong Free Operating Cash Flow Cumulative working capital contribution to cash flow1 €m unless otherwise stated 2015FY 2014FY vs. LY (€ million) 800 Cash flow from operations 700 4,280 4,279 +1 600 (before change in working capital) 500 400 300 Change in working capital 371 27 +344 200 100 0 Capita
Slide 14: Financial Guidance for FY 2016
Financial Guidance for FY 2016 Assuming spot rates as of 4 February 2016 the calculated negative currency translational impact would be approximately €60 million at consolidated operating profit (beia), and €35 million at net profit (beia) Average interest rate of c.3.3% (2015: 3.3%) Effective
Slide 15: Summary
Summary Strong performance in FY2015 demonstrating successful delivery of strategy Continued focus on strategic priorities: Driving innovation, excellence in execution and investing in our brands More agile responding to consumer needs and more cost effective Confident that 2016 will deliv
Slide 16: Appendix
FULL YEAR 2015 RESULTS HEINEKEN N.V. Appendix 16
Slide 17: Africa Middle East & Eastern Europe
Africa Middle East & Eastern Europe More challenging trading backdrop impacting results Mhl/€m 2015FY 2014FY Total Change (%) Organic Change (%) Revenue 3,263 3,189 2.3 2.7 Revenue/hl (in €) 76 74 2.8 4.3 Operating profit (beia) 579 671 -14 -11 Operating profit (beia) margin 17.7% 21.0% -330bps Tota
Slide 18: Americas
Americas Portfolio strategy driving impressive revenue and profit growth Mhl/€m 2015FY 2014FY Total Change (%) Organic Change (%) Revenue 5,159 4,631 11 8.5 Revenue/hl (in €) 90 85 5.7 3.1 Operating profit (beia) 904 780 16 15 Operating profit (beia) margin 17.5% 16.8% 70bps Total volume 57.5 54.6 5
Slide 19: Asia Pacific
Asia Pacific Strong performance even after more challenging 2H Mhl/€m 2015FY 2014FY Total Change (%) Organic Change (%) Revenue 2,483 2,088 19 4.1 Revenue/hl (in €) 122 112 9.7 -2.1 Operating profit (beia) 702 550 28 9.7 Operating profit (beia) margin 28.3% 26.3% 200bps Total volume 20.3 18.7 8.4 6.
Slide 20: Europe
Europe Premiumisation driving good profit performance Mhl/€m 2015FY 2014FY Total Change (%) Organic Change (%) Revenue 10,227 9.760 4.8 1.4 Revenue/hl (in €) 100 99 1.1 -0.2 Operating profit (beia) 1,196 1,109 7.8 7.3 Operating profit (beia) margin 11.7% 11.4% 30bps Total volume 95.2 91.8 3.7 1.4 of
Slide 21: Material Acquisitions in 2015
Material Acquisitions in 2015 Current shareholding Completion date percentage 95.8%* (73.3% in October Desnoes & Geddes, Jamaica 7 October 2015 2015) Guinness Anchor Berhad, Malaysia 51% (indirectly) 7 October 2015 97.5%* (53.4% in October Pivovarna Lasko d.d, Slovenia 15 October 2015 2015) Lagunita
Slide 22: US Dollar Hedging
US Dollar Hedging Position Impact versus previous year Net inflow Hedged Year In USD mln Part** Hedged Rate*** Year Net Profit 2013A 556 556 1.31 2013A 11 2014A 553 553 1.31 2014A 0 2015A 567 567 1.30 2015A 4 2016F 513 438 1.16 2016F* 37 2017F 501 134 1.13 2017F* 18 * Impact on open positions calcul