Heineken Nv · EURONEXT:HEIA
Heineken Nv — Deutsche Bank Global Consumer Conference 2014
29 slides from Heineken Nv's conference presentation, Jun 18, 2014
Slide 1: Deutsche Bank Global Consumer Conference
HEINEKEN DEUTSCHE BANK GLOBAL CONSUMER CONFERENCE 18 JUNE 2014 HEINEKEN NV | HEINEKEN HOLDING NV 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: HEINEKEN at a glance
HEINEKEN at a glance 70+ COUNTRIES 165 BREWERIES 250+BRANDS 195mhl GROUP BEER 57% OF GROUP OPERATING 85,000 DIRECT Group beer volume1 by region (2013) VOLUME1 PROFIT (BEIA)2 FROM EMPLOYEES WE AME DEVELOPING MARKETS 22% 14% Americas 28% CEE 25% Asia Pac 11% Group Operating profit (beia)2 by region (2
Slide 4: The leading premium global brewer with attractive growth platforms
The leading premium global brewer with attractive growth platforms 1 2 THE LEADING PREMIUM WORLD CLASS MARKETING & BEER & CIDER PORTFOLIO STRENGTH IN INNOVATION 3 4 GLOBAL REACH WITH STRONG RELENTLESSLY DRIVING COST ACCESS TO HIGH GROWTH MARKETS EFFICIENCIES Focus on driving sustainable medium-term
Slide 5: Powerful Priority Brand portfolio
Powerful Priority Brand portfolio The leading Tequila international Belgian The flavoured beer premium brand Abbey beer Independent brand The global Mexican 5 leader in cider
Slide 6: Heineken: Truly global premium beer in the strategic IPS segment
Heineken : Truly global premium beer ® in the strategic IPS segment Heineken® Volume Development Heineken® : #1 global IPS brand (CAGR: 2013F-2018F) with strongest brand equity 7,8 5.1% 7,6 7,4 Heineken® 7,2 7,0 Brand equity1 Stella Artois 6,8 2.1% 6,6 Budweiser Dos Equis Carlsberg Corona 6,4 Tiger
Slide 7: Six Competitive Advantages
Six Competitive Advantages Product Marketing Design campaigns Sponsorships Digital Innovation 7
Slide 8: Cider, another significant growth opportunity
Cider, another significant growth opportunity Complementary to beer business and leveraging with core Strongbow brand and other distinct cider offerings CIDER GROWING >2.5X FASTER THAN BEER Global cider category growth 26% CAGR% (2008-2013) 5% % of consumers Drinking Alcohol, that do not drink lager
Slide 9: Affligem – unique positioning in specialty beer segment
Affligem – unique positioning in specialty beer segment Specialities1: Fastest growing beer segment Belgian Abbey beer brand Volume: 2010 – 2014F CAGR % 6% 1000 year history and unique double fermentation 2% 4% Award winning recipe All beer Premium Premium Beer Specialty Unique positioning withi
Slide 10: Tiger and Dos Equis – Regional power brands
Tiger and Dos Equis – Regional power brands TIGER VOLUME IN ASIA PACIFIC ACCELERATED GROWTH OF DOS EQUIS CAGR 4.000 5.1 Mexico Volume: 33% 3.500 USA CAGR (2010-2013) 3.000 Total: 12% 4.0 2.500 Volume (kHL) 2.000 2.9 1.500 1.000 500 0 2011 2012 2013 10 Source: Canadean
Slide 11: Complemented with Local Brand Champions
Complemented with Local Brand Champions With strong positions within home markets Mexico Indonesia Nigeria UK Poland 14.5mhl 1.4mhl 3.8mhl 5.7mhl 2.2mhl 11
Slide 12: The leading premium global brewer with attractive growth platforms
The leading premium global brewer with attractive growth platforms 1 2 THE LEADING PREMIUM WORLD CLASS MARKETING & BEER & CIDER PORTFOLIO STRENGTH IN INNOVATION 3 4 GLOBAL REACH WITH STRONG RELENTLESSLY DRIVING COST ACCESS TO HIGH GROWTH MARKETS EFFICIENCIES Focus on driving sustainable medium-term
Slide 13: World class marketing and sponsorships with strong digital activation
World class marketing and sponsorships with strong digital activation AWARD-WINNING SPORTING EVENTS, SOCIAL AND DIGITAL MEDIA GLOBAL CAMPAIGNS MUSIC & FILM FESTIVALS #1 ON FACEBOOK 17.4M Heineken® 11.7M Budweiser 6.8M Stella Artois 6.8M Corona 1.7M Carlsberg (Number of Fans) 13 Facebook fans as at 3
Slide 14: Innovation contributing significantly to top line growth
Innovation contributing significantly to top line growth INNOVATION GENERATED €1.1 BILLION OF REVENUE IN 2013 Innovation rate1 Targeting new consumers through increased consumption occasions 2020 Target: 6% 5.9% 5.3% Leading innovating in draught beer to strengthen presence in on-trade 4.1% 3.0%
Slide 15: Radler – A highly successful innovation
Radler – A highly successful innovation 1.9m hl sold in 2013 As at end-2013 Radler Lemon was in 32 markets across all 5 regions One of the most successful largest innovations and an example of a local innovation going global Price point typically priced at index of 110-120 vs mother brand Radle
Slide 16: Innovating at home and in the on trade
Innovating at home and in the on trade Providing unique draft on trade draught proposition and unique at home self serve offer 16
Slide 17: Driving excellence in outlet execution
Driving excellence in outlet execution Partnering for growth with our customers TARGETED CHANNEL GLOBAL BRANDS STRATEGIES ACTIVATION BUILDING BUILDING SALES PARTNERSHIPS CAPABILITIES 17
Slide 18: The leading premium global brewer with attractive growth platforms
The leading premium global brewer with attractive growth platforms 1 2 THE LEADING PREMIUM WORLD CLASS MARKETING & BEER & CIDER PORTFOLIO STRENGTH IN INNOVATION 3 4 GLOBAL REACH WITH STRONG RELENTLESSLY DRIVING COST ACCESS TO HIGH GROWTH MARKETS EFFICIENCIES Focus on driving sustainable medium-term
Slide 19: HEINEKEN has leading positions in exciting, fast growing regions
HEINEKEN has leading positions in exciting, fast growing regions 2013 Developing markets split: % of total Group Group beer volume: 62% 49% 57% Americas 37% Asia Pacific Central & 17% Eastern 38% 51% 43% Africa Europe Middle East 26% 20% Group beer Group revenue Group operating volume profit (beia)1
Slide 20: Africa Middle East: Well placed to capture growth
Africa Middle East: Well placed to capture growth Fourteen #1 and four #2 positions Exciting beer market growth supported by favourable demographics and strong economic growth: TUNISIA LEBANON ALGERIA ISRAEL 1 A booming population: Incremental c. 200m people by 2018, with growth in LDA population
Slide 21: Asia Pacific: A dynamic, high growth region
Asia Pacific: A dynamic, high growth region HEINEKEN best placed to access regional growth opportunities HEINEKEN HAS LEADERSHIP IN THE LARGEST NUMBER OF MARKETS 1 APB successfully integrated in 2013 Number of #1 and #2 market positions in Asia-Pacific Region of growing importance to HEINEKEN: HEI
Slide 22: Accessing growth opportunities in the Americas
Accessing growth opportunities in the Americas led by IPS and local brand jewels BROAD & SEGMENT HEINEKEN AMERICAS LEADERSHIP POSITIONS EBIT (BEIA) (€M) Beer market growth supported by rising ORGANIC CAGR% +11% incomes and favourable demographics Acquisition of FEMSA Cerveza in 2010 has 790 accele
Slide 23: The leading premium global brewer with attractive growth platforms
The leading premium global brewer with attractive growth platforms 1 2 THE LEADING PREMIUM WORLD CLASS MARKETING & BEER & CIDER PORTFOLIO STRENGTH IN INNOVATION 3 4 GLOBAL REACH WITH STRONG RELENTLESSLY DRIVING COST ACCESS TO HIGH GROWTH MARKETS EFFICIENCIES Focus on driving sustainable medium-term
Slide 24: Focus on continued operating efficiencies
Focus on continued operating efficiencies TCM2 Regional Split: Cumulative savings (2012-2013): Cost management firmly embedded in business Other 14% Western Europe Disciplined cost management supports: Asia Pacific 28% Building global commercial capabilities 3% Sustained investment behind brands
Slide 25: HEINEKEN Global Business Services
HEINEKEN Global Business Services An important enabler of current TCM2 and future cost savings HEINEKEN GLOBAL PROCUREMENT (HGP): HEINEKEN GLOBAL SHARED SERVICES (HGSS): ROMANIA UK FRANCE IRELAND HUNGARY AUSTRIA HGP scope currently represents approx. two thirds of relevant global spend base BELGIUM
Slide 26: Enhancing profitability of recently acquired businesses
Enhancing profitability of recently acquired businesses 2008 SCOTTISH 2010 FEMSA 2012 ASIA PACIFIC & NEWCASTLE 1 CERVEZA2 BREWERIES3 Operating profit (beia) Operating profit (beia) Operating profit (beia) € million € million € million CAGR 2008-13 CAGR 2010-13 +18% +18% +14% 2008 2009 2010 2011 2012
Slide 27: Solid financial progress
Solid financial progress Consolidated revenue (beia) in €m Consolidated operating profit (beia)* in €m CAGR: +6.9% CAGR: +10.6% 2013 19,203 2013 2,941 2012 18,383 2012 2,666 2011 17,123 2011 2,456 2010 16,133 2010 2,430 2009 14,701 2009 1,967 Consolidated operating profit (beia) margin (%) Diluted E
Slide 28: Improving top-line growth momentum
Improving top-line growth momentum GROUP BEER VOLUME GROUP REVENUE ORGANIC GROWTH (%) ORGANIC GROWTH (%) 1.3% 3.4% 1.3% 0.5% -1.5% -2.5% -0.6% -3.4% -3.5% -1.0% 1Q13 2Q13 3Q13 4Q13 1Q14 1Q13 2Q13 3Q13 4Q13 1Q14 28 Group = consolidated results plus attributable share from joint ventures and associate
Slide 29: Summary
Summary Leading premium beer and cider portfolio Heineken® leading global brand in IPS Expansion of priority brands to capture consumer segmentation Best placed to win in growing cider category World class marketing and strength in innovation Expertise in premium brand development Uniquely
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