Heineken NV · EURONEXT:HEIA
Heineken NV — HEINEKEN Financial Markets Conference 2012
24 slides from Heineken NV's conference presentation, November 2012
Slide 1: Welcome
Welcome Nigeria | November 2012 Heineken N.V.
Slide 2: Supply Chain Excellence
Supply Chain Excellence Samson Aigbedo Head of Brewery Operations, Nigerian Breweries Nigeria | November 2012 Heineken N.V.
Slide 3: Agenda
Agenda Supply Chain Excellence 1 Supply Chain Structure and Footprint 2 Building World Class Supply Chain Capabilities 3 Performance Indicators 4 Use of Local Grains 3
Slide 4: Nigerian Breweries Supply Chain
Nigerian Breweries Supply Chain Supply Chain management Total 8 Breweries structure designed for: Clear responsibilities Effective management of 43% of raw Employing materials sourced >1,900 people Breweries, some of which locally in production are 1000km from HQ Clear ownership of decisions &
Slide 5: Brewery footprint & capacity distribution
Brewery footprint & capacity distribution Kakuri Kudenda 8 Brewery locations Brewery Brewery Ca. 15 mhl technical capacity Kudenda Brewery + 2 Malting Plants – 37MT Malting Plant Technical Capacity Onitsha (% Volume) Brewery 16% north south Ibadan Brewery 84% Ama Brewery (Enugu) Ota Brewery Ab
Slide 6: Leveraging on Sona acquisition/integration
Leveraging on Sona acquisition/integration Increase asset infrastructure footprint Strengthens position in emerging northern region of Nigeria Closer vicinity to our consumers Delivery cost advantage Introduction of additional 3 brands and 6 SKUs Incremental 3.3mhl of production capacity
Slide 7: Agenda
Agenda Supply Chain Excellence 1 Supply Chain Structure and Footprint 2 Building World Class Supply Chain Capabilities 3 Performance Indicators 4 Use of Local Grains 7
Slide 8: Supply Chain capabilities: TLC/BCS/TPM
Supply Chain capabilities: TLC/BCS/TPM The inseparable links Technical Delivering operational Learning Centre excellence: Improve efficiencies (TLC) Loss reduction/eradication Improve profitability People High performance + organisation Organisational Knowledge Healthy internal competition
Slide 9: Technical Learning Centre
Technical Learning Centre > 2,000 employees trained since 2005 The Technical Activities Results Learning Centre (TLC) Strong investment new Build required technical and continuous training knowledge Existence of well Develop managerial equipped/ funded TLC competencies Recruiting the best
Slide 10: Peer comparison/ benchmarking
Peer comparison/ benchmarking Brewery Comparison System (BCS) A global operational comparison system across all HEINEKEN operating companies Uniform definition of all Key Performance Indicators Consistent language and interpretation worldwide A company-wide platform for HMS Category KPI Unit
Slide 11: Total Productive Management (TPM)
Total Productive Management (TPM) Standard way of working: HEINEKEN’s management system to drive TPM Pillars improved sustainable performance and cost leadership by developing people and the organisation A structured step-by-step approach towards the achievement of operational excellence: Losses r
Slide 12: Agenda
Agenda Supply Chain Excellence 1 Supply Chain Structure and Footprint 2 Building World Class Supply Chain Capabilities 3 Performance Indicators 4 Use of Local Grains 12
Slide 13: Performance Indicators
Performance Indicators Extract loss (%) Productivity (HL/FTE) 12 6000 CAGR = 6.7% CAGR = -7.9% 10 5000 8 4000 6 3000 4 2000 2 1000 0 0 2009 2010 2011 YTD Jul-12 2009 2010 2011 YTD Jul-12 Extract Loss Productivity 13 Source: Nigerian Breweries
Slide 14: Performance Indicators
Performance Indicators Water Consumption (hl/hl) Electricity Consumption (Kwhr/hl) 8 9,9 CAGR = -9.3% CAGR = -1.1% 7 9,8 9,7 6 9,6 5 9,5 4 9,4 3 9,3 2 9,2 1 9,1 0 9 2009 2010 2011 YTD Jul-12 2009 2010 2011 YTD Jul-12 Water Consumption Electricity consumption 14 Source: Nigerian Breweries
Slide 15: Performance Indicators
Performance Indicators Energy Consumption (Mj/hl) OPI NONA 116 74 114 72 CAGR = -2.5% 112 CAGR = 4.2% 70 110 68 108 106 66 104 64 102 62 100 60 98 96 58 2009 2010 2011 YTD Jul-12 2009 2010 2011 YTD Jul-12 OPI NONA Energy consumption OPI = Overall Performance Indicator NONA = No Order No Activity 15
Slide 16: Nigerian Breweries already amongst best in class
Nigerian Breweries already amongst best in class OPI (%) Q2 2012 – Breweries of > 1.5mhl capacity 100 80 60 40 Nigerian Breweries plant 20 Breweries in other HEINEKEN 0 markets OPI (%) Q2 2012 – Breweries of between 0.75 & 1.5mhl capacity 90 80 70 60 50 40 30 20 Nigerian Breweries plant 10 Breweries
Slide 17: Quality and safety are key priorities
Quality and safety are key priorities Accidents (Nr/100FTE) Global Supply Chain Taste Test Score (%) 0,35 99 0,3 98,5 98 0,25 97,5 0,2 97 0,15 96,5 96 0,1 95,5 0,05 95 0 94,5 2009 2010 2011 YTD Jul-12 2009 2010 2011 YTD Jul-12 Target(%) Actual(%) Accidents Quality parameters and standards of all b
Slide 18: Investing in capacity ahead of anticipated demand
Investing in capacity ahead of anticipated demand Volume produced (mhl) Over the past 6 years, Nigerian Breweries has grown production volume by an CAGR% +12% average 12% per annum Output has been optimised though: Improved operational efficiency Loss reduction Volume in mhl Investment in
Slide 19: Agenda
Agenda Supply Chain Excellence 1 Supply Chain Structure and Footprint 2 Building World Class Supply Chain Capabilities 3 Performance Indicators 4 Use of Local Grains 19
Slide 20: Use of local grains: Sorghum
Use of local grains: Sorghum Nigeria is largest producer of food sorghum Sorghum has been particularly attractive because of its malting quality Nigerian Breweries has been using local grains for more than 15 years Availability as brewing raw material is guaranteed Nigerian Breweries has d
Slide 21: Active involvement in the local Sorghum value chain development
Active involvement in the local Sorghum value chain development Sorghum grains is sourced from the farmers and processed for brewing Spent grains (a byproduct from brewing) is converted to fertilizer – Earth Care The fertilizer goes to the farmer, who in turn grows more grains & sell to the br
Slide 22: Local grains development: Import vs Local
Local grains development: Import vs Local 43% 60% % Raw Material 57% 40% 2011 Target Import Local Based on kilogram extract –(KgE) 22
Slide 23: Summary
Summary Nigerian Breweries has an extensive brewery footprint with national coverage Supply chain structure and priorities closely aligned to achievement of Nigerian Breweries’ ambition Investment in continuous training to enhance employee capabilities and drive operational excellence Levera
Slide 24: Questions
Questions Nigeria | November 2012 Heineken NV
Heineken — HEINEKEN Financial Markets Conference 2012 on 6ix