Heineken Nv · EURONEXT:HEIA
Heineken Nv — Barclays Global Consumer Staples Conference 2016
19 slides from Heineken Nv's conference presentation, Sep 6, 2016
Slide 1: HEINEKEN: Delivering on Strategy
HEINEKEN: Delivering on Strategy BARCLAYS GLOBAL CONSUMER STAPLES CONFERENCE, 6 SEPTEMBER 2016 Jean-François van Boxmeer Chairman of the Executive Board / CEO Heineken NV / Heineken Holding NV
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: Agenda
Agenda HEINEKEN: Delivering on strategy Strategic transformation at HEINEKEN Six business priorities Strategy delivering results 2
Slide 4: Strategic transformation at HEINEKEN
Strategic transformation at HEINEKEN 2000-2015 Transformed geographic footprint Diversified business - not dependent on one sole geography Increased exposure to higher growth markets: 61% of profits delivered by developing markets in 2015 vs 20% in 2010 Evolved strategy for developed markets
Slide 5: Agenda
Agenda HEINEKEN: Delivering on strategy Strategic transformation at HEINEKEN Six business priorities Strategy delivering results 4
Slide 6: Six business priorities
Six business priorities 1 4 Win in premium led Be commercially assertive by Heineken® brand 2 5 Shape the cider category Drive End2End productivity 3 6 Lead by cool marketing Brewing a Better World and innovation 5
Slide 7: Win in premium led by Heineken
Win in premium led by Heineken ® Heineken® the only truly Other International brands Global brand in the world Heineken® In +170 markets 14% of HEINEKEN volume 20-year CAGR c. 5% Desperados – tequila flavoured beer Tiger – Born in Singapore, the iconic Asian beer brand Strongbow – the global l
Slide 8: Heineken Formula 1
Heineken® Formula 1 Video HEINEKEN
Slide 9: Shape the cider category
Shape the cider category Drive the cider category and Capturing new Consumers Full cider maximise the cider opportunity through cider brand portfolio Category expected to growth 2x level of beer 2015-2020 with 4% CAGR Opportunity to leverage skill set as global market 26%* 51%* leader in cider,
Slide 10: Lead by cool marketing
Lead by cool marketing Consumer-inspired, customer-oriented and brand-led Brand building Award-winning Sporting events, investments global campaigns music & film festivals Marketing & Selling (M&S) Spend (€ billion) 3.0 13.4% 12.6% 12.7% 2.5 12.2% 12.8% 12.4% 2.0 11.7% 11.3% 1.5 1.0 0.5 0.0 2008 200
Slide 11: Innovation contributed €1.1bn of revenue in 1H16
Innovation contributed €1.1bn of revenue in 1H16 Innovation Rate of 10.5% Innovation rate1 Leading innovation in cider Seizing the low/no alcohol opportunity 10.5% 8.6% 7.4% 5.3% 5.9% 4.1% 11HY 12HY 13HY 14HY 15HY 16HY Innovation revenue Satisfying the need Innovating in draught for craft & variety
Slide 12: Campaigns strengthened by leading capabilities in social and digital media
Campaigns strengthened by leading capabilities in social and digital media Digital transformation Engaging storytelling content and #1 on Digital media investment more than connecting global campaigns facebook doubled between 2012 and 2015 21.6M Heineken® Significant increase in investment with
Slide 13: Be commercially assertive: EOE
Be commercially assertive: EOE To win in the point of sale on a daily basis Based on 8 Sales Force Technology Execution Principles Empowering the Sales 1. Leadership Representatives to focus on 2. Alignment Excellent Outlet Execution 3. 100% data Providing one global way of working 4. Focus & Si
Slide 14: Drive End2End productivity
Drive End2End productivity Leveraging global scale to deliver increased efficiencies New financial shared service centres: Mexico, China, Singapore and Brazil Global procurement delivering efficiencies: 63 countries supported 2,700 procurement led cost reduction projects Delivering trans
Slide 15: Brewing a Better World
Brewing a Better World Protecting Advocate Responsible Sourcing Sustainably Consumption Water Resources 2020 Target 2020 Target 2020 Target Specific water Reduce to 3.5 hl/hl for group Local sourcing 60% of raw Industry Deliver global industry consumption average and to 3.3 hl/hl for in Africa mater
Slide 16: Agenda
Agenda HEINEKEN: Delivering on strategy Strategic transformation at HEINEKEN Six business priorities Strategy delivering results 15
Slide 17: Delivering margin expansion
Delivering margin expansion Commitment to medium term margin guidance c.40bps 23bps In 2015 margin expansion negatively 90bps 60bps 16.2% 16.5% impacted by 23bps from the disposal of 40bps 15.3% EMPAQUE 14.7% 14.3% Year on year margin expansion improvement of around 40 bps reiterated for 2016 2011 2
Slide 18: HEINEKEN strategy to create value
HEINEKEN strategy to create value Revenue & Market Share Growth Focus on premium segment to drive top line growth and market share Return on Sales Commitment to medium term margin guidance Revenue & Market Share Focus on driving costs and efficiencies throughout the business Growth RONA Focu
Slide 19: Summary
Summary Recent years have shown further positive evolution at HEINEKEN The company has six clear business priorities to focus on and drive future growth HEINEKEN strategy is working and delivering positive results Long term value creation is at the heart of our strategy and management of the
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