Heineken Nv · EURONEXT:HEIA
Heineken Nv — Barclays Back-to-School Consumer Conference 2013
25 slides from Heineken Nv's conference presentation, Sep 4, 2013
Slide 1: Building Strong Growth Platforms
Barclays Back-to-School BUILDING STRONG GROWTH PLATFORMS Consumer Conference Jean François van Boxmeer Chairman of the Executive Board/CEO 1 4 September 2013 | 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: Diverse and Balanced Geographic Footprint
DIVERSE AND BALANCED GEOGRAPHIC FOOTPRINT 70+ 165 250+ COUNTRIES BREWERIES BRANDS 196mhl 50% 85,000 GROUP BEER OF GROUP DIRECT VOLUME OPERATING PROFIT EMPLOYEES (BEIA) FROM DEVELOPING MARKETS 3
Slide 4: Diverse and Balanced Geographic Footprint by Region
DIVERSE AND BALANCED GEOGRAPHIC FOOTPRINT GROUP BEER VOLUME1 GROUP OPERATING PROFIT BY REGION (2012) (BEIA)2 BY REGION (2012) AME AME WE 13% 20% WE 22% 29% Americas CEE 29% CEE 11% Americas 25% 24% Asia Pac Asia Pac 16% 11% 1 Group beer volume is consolidated beer volume plus attributable share of v
Slide 5: Strong Growth Track Record
STRONG GROWTH TRACK RECORD CONSOLIDATED BEER VOLUME CONSOLIDATED REVENUE (BEIA) MHL CAGR: +8.1% €M CAGR: +6.4% 2012 172 2012 18,383 2011 165 2011 17,123 2010 146 2010 16,133 2009 125 2009 14,701 2008 126 2008 14,319 CONSOLIDATED OPERATING PROFIT(BEIA)* DILUTED EPS (BEIA)* €M CAGR: +9.8% € CAGR: +8.7
Slide 6: Our Strategic Priorities
OUR STRATEGIC PRIORITIES 1 Grow 2 Consumer-inspired, Heineken ® customer-oriented, Brand brand-led 3 Capture the 4 Leverage the benefits opportunities in of HEINEKEN’s emerging markets global scale 5 Drive 6 Embed and personal integrate leadership sustainability 6
Slide 7: Heineken: A Competitive Advantage
Heineken : ® A COMPETITIVE ADVANTAGE Highest beer brand equity in the world 1 Heineken® OUTPERFORMS IPS Outperforming IPS, which is (VOLUME GROWTH, CAGR 2005-2012F) outperforming the beer market 5.4% 4.7% Leading brand in IPS with over 20% share of segment 3.0% World class marketing Beer Mar
Slide 8: Heineken: Attractive Growth Prospects for IPS in Developing Markets
Heineken : ATTRACTIVE ® GROWTH PROSPECTS FOR IPS IN DEVELOPING MARKETS REGIONAL BEER MARKET AND IPS DEVELOPMENT: 2012-2022F CAGR % 7.4% 4.9% 4.1% 4.2% 3.4% 3.1% 1.3% 1.4% 0.8% -0.1% Europe Asia Pacific Africa Middle East Latin America USA/ Canada Beer Market IPS Source: Canadean, August 2013 8 (IPS:
Slide 9: Heineken: Successful Global Activation
Heineken : SUCCESSFUL ® GLOBAL ACTIVATION COMMUNICATION/ DESIGN/ ENGAGEMENT SPONSORSHIP INNOVATION 9
Slide 10: Legends Campaign "The Voyage"
LEGENDS CAMPAIGN “THE VOYAGE” 10
Slide 11: Winning with Global Customers
WINNING WITH GLOBAL CUSTOMERS 2012 VOLUME GROWTH % Successful pan-European 8.0% activation of UEFA Champions League with global customers 3.1% 0.9% Total Europe Off Premise International In-store activation across 17 markets in 8,000 stores 11
Slide 12: Other Global Brands Driving Value
OTHER GLOBAL BRANDS DRIVING VALUE GLOBAL PROGRAMMES* MARGIN ENHANCING AS A PROPORTION GLOBAL BRANDS OF GROUP BEER VOLUME Global Brands Portfolio Indicative price index vs. Mainstream (Base = 100) 2012FY: Organic volume growth Global Programmes Other 44% 56% Mainstream Amstel Premium Heineken® Strong
Slide 13: Leveraging Global Innovation Capabilities to Drive Sustainable Growth
LEVERAGING GLOBAL INNOVATION CAPABILITIES TO DRIVE SUSTAINABLE GROWTH 13
Slide 14: Leveraging Global Innovation Capabilities to Drive Sustainable Growth
LEVERAGING GLOBAL INNOVATION CAPABILITIES TO DRIVE SUSTAINABLE GROWTH 2020 6.0% Target 5.3% 4.1% 3.0% 2010 2011 2012 2013HY 1 From 1 January 2013, the innovation rate is calculated as revenues generated from innovations (introduced in the past 40 quarters for a new category, 20 quarters for a new br
Slide 15: Heineken Has a Well Diversified Developing Market Footprint
HEINEKEN HAS A WELL DIVERSIFIED DEVELOPING MARKET FOOTPRINT Profit from developing markets grew 7% organically* in H1 2013 % of Total Group1 Developing markets split1: Group beer volume Latin 63% 49% 50% America & Caribbean 35% 51% 50% Asia Pacific Europe 37% 15% 28% Africa Middle East Group beer vo
Slide 16: APB Provides Direct Access to an Exciting Growth Region
APB PROVIDES DIRECT ACCESS TO AN EXCITING GROWTH REGION 1 LAOS MONGOLIA #2 #2 THAILAND CHINA 3 #1 #2 1 CAMBODIA VIETNAM #2 1 #2 5 SRI LANKA 1 1 PAPUA NEW GUINEA #2 1 #1 1 MALAYSIA 2 SOLOMON ISLANDS #1 2 1 #1 SINGAPORE NEW CALEDONIA #1 #1 1 INDONESIA NEW ZEALAND #1 Broad market leadership #2 Leadersh
Slide 17: Tiger
7 IT’S TIME:TO PLAY AT TIGERGAMETIME.COM.SG C2" ee as HEINEKEN
Slide 18: Africa: Strong Growth Fundamentals
AFRICA: STRONG GROWTH FUNDAMENTALS KEY HIGHLIGHTS: US$3.6 trillion collective GDP by 2020 Average annual growth of 6% to 2020 326 million Africans with discretionary income 50% Africans living in cities by 2030 1.1 billion Africans of working age by 2040 Beer market 1 164 million hectoli
Slide 19: Building a Winning Portfolio in Mexico
BUILDING A WINNING PORTFOLIO IN MEXICO… Consolidating our mainstream offering whilst developing premium Tecate on track to become largest selling beer brand in Mexico in 2-3 years Igniting additional sources of growth through Dos Equis and Indio Strengthening our regional market positions thro
Slide 20: Delivering on Our Value Growth Strategy
…WHILST DELIVERING ON OUR VALUE GROWTH STRATEGY On track to double operating profit in 5 years since acquisition MEXICO: GROWTH 2010 – 2012 +2.5x +2.0x Volume Revenue Operating profit (beia) 20
Slide 21: Europe: A Strategic Focus on Long-Term Value Creation
EUROPE: A STRATEGIC FOCUS ON LONG-TERM VALUE CREATION CENTRAL & EASTERN EUROPE: GLOBAL MIX AND REVENUE PER HL ORGANIC GROWTH DEVELOPMENT BRANDS INNOVATION 5% BRAND AND PORTFOLIO 4% MANAGEMENT 3% OUTLET EXECUTION, MODERN TRADE 2% CAPABILITIES 1% 0% 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 IMPR
Slide 22: Leverage the Benefits of Heineken's Global Scale
LEVERAGE THE BENEFITS OF HEINEKEN’S GLOBAL SCALE TCM2 COST SAVING TARGET RAISED TO €625M Global Business Global Developing Commercial Services Supply Chain Capabilities MARKETING 1,700 participants 6 Master Classes Financial Shared Services Total Productive SALES Global Procurement Managem
Slide 23: 2013 Full Year Outlook
2013 FULL YEAR OUTLOOK HEINEKEN expects: No material change to underlying trading conditions across the majority of its markets Marketing and selling expenses to remain broadly stable in 2013 (2012: 12.2%) Input cost prices to increase slightly (excluding currency impact) Targeted 3-year TCM
Slide 24: Summary
SUMMARY We are driving We are investing in We are leveraging Heineken® as a our global brand global innovation competitive portfolio to drive capabilities to deliver advantage increased value sustainable growth We are winning with We have transformed We are leveraging global customers our future gro
Slide 25: Question & Answer
QUESTION & ANSWER 25 4 September 2013 | Heineken NV | Heineken Holding NV
Heineken — Barclays Back-to-School Consumer Conference 2013 on 6ix