Heineken Nv · EURONEXT:HEIA

Heineken Nv — Investor Day (March 2013)

46 slides from Heineken Nv's investor day presentation, Mar 25, 2013

  1. Slide 1: Welcome

    Welcome Welcome Welcome Welcome Welcome Welcome Welcome Welcome Welcome London | 25 March 2013 | Heineken NV

  2. Slide 2: A leading brewer in Central & Eastern Europe

    What’s Brewing Seminar A leading brewer in Central & Eastern Europe Jan Derck van Karnebeek President Central & Eastern Europe London | 25 March 2013 | Heineken NV

  3. Slide 3: 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

  4. Slide 4: Agenda

    Agenda HEINEKEN: Central & Eastern Europe 1 A large and diverse beer market 2 CEE: A key region for HEINEKEN 3 Strategic focus on driving profit growth 4 Key markets update 4

  5. Slide 5: Central & Eastern Europe: A large and diverse beer market

    Central & Eastern Europe: A large and diverse beer market1… Russia Belarus Poland Germany Czech Republic Slovakia Austria Hungary Romania Croatia Total beer consumption 2012 in mhl 600 Serbia 500 Bulgaria 400 Mac. 300 200 100 Greece 0 Total Europe North HEINEKEN Latin America CEE markets America 1 C

  6. Slide 6: …with varying levels of per capita consumption

    …with varying levels of per capita consumption Per capita consumption in HEINEKEN CEE countries (2012) 146 111 110 101 84 Average 82 litres per cap. 80 74 71 69 67 51 50 32 30 Slovakia Poland Belarus Germany Austria Czech Republic Romania Croatia Bulgaria Greece Hungary Macedonia Russia Serbia/Monte

  7. Slide 7: Rising incomes to enhance consumer spending power and future value growth

    Rising incomes to enhance consumer spending power and future value growth GDP per capita CAGR (2012-20) in HEINEKEN CEE countries 3.6% 3.6% 3.4% 3.4% 3.2% 3.0% 3.0% 2.7% 2.6% 2.4% 2.3% 2012-20 1.9% 1.9% CAGR 2% 1.6% Serbia Belarus Slovakia Romania Poland Germany Bulgaria Czech Republic Croatia Greec

  8. Slide 8: A well diversified volume and profit pool

    A well diversified volume and profit pool HEINEKEN CEE markets beer volume HEINEKEN CEE markets beer EBIT share share FY 2011(297 mhl) FY 2011 (US$3.6 billion) 3% Russia 6% 25% Russia 5% 32% Germany Germany 6% 8% Poland Poland Romania Romania 12% 8% Czech Republic Czech Republic Austria Austria 25%

  9. Slide 9: Agenda

    Agenda HEINEKEN: Central & Eastern Europe 1 A large and diverse beer market 2 CEE: A key region for HEINEKEN 3 Strategic focus on driving profit growth 4 Key markets update 9

  10. Slide 10: CEE represents a significant value opportunity for HEINEKEN

    CEE represents a significant value opportunity for HEINEKEN 2012: Consolidated Beer Volume split1 2012: Revenue split1 17% 26% 74% HEINEKEN CEE HEINEKEN CEE Other Regions 83% Other Regions 2012: Heineken® Brand Volume 2012: EBIT (beia) split 1 8% 11% HEINEKEN CEE HEINEKEN CEE 92% Other Regions 89% O

  11. Slide 11: HEINEKEN leading in #1 and #2 positions

    HEINEKEN leading in #1 and #2 positions Number of markets with #1 and #2 positions in HEINEKEN CEE1region 10 8 4 4 2 1 Heineken Carlsberg SAB MolsonCoors ABInBev Efes Company’s 14 11 5 7 2 1 Presence (no. of markets in HEINEKEN CEE region) 1 Based on markets in which HEINEKEN has direct brewery oper

  12. Slide 12: Leading market positions to shape regional growth strategy

    Leading market positions to shape regional growth strategy #4 #2 #2 > 31 #3 #1 #1 #2 #2 #1 #3 #3 #2 Operating Company #1 #2 Joint Venture #1 Export #2 1 In Germany, HEINEKEN operates under 2 business models: JV with BHI and direct distribution of some brands 12 Source: HEINEKEN, based on Nielsen and

  13. Slide 13: HEINEKEN has a balanced exposure to key regional markets

    HEINEKEN has a balanced exposure to key regional markets Group Beer Volume split (2012) EBIT (beia) split (2012) 26% 24% 349m€ Russia 55mHL EBIT 2% Poland 3% (beia) Romania 4% 21% Austria 8% Greece 12% Slovakia Croatia Other Markets 13

  14. Slide 14: HEINEKEN benefits from an unrivalled brand portfolio

    HEINEKEN benefits from an unrivalled brand portfolio Czech Austria Greece Poland Romania Russia Serbia Slovakia Others Republic Heineken® Heineken® Heineken® Heineken® Heineken® Amstel Heineken® INTERNATIONAL Heineken® Fischer Amstel Heineken® Paulaner Zlaty Bazant Desperados Zlaty Bazant Zlaty Baza

  15. Slide 15: HEINEKEN is winning in the market place

    HEINEKEN is winning in the market place Positive market share momentum1 70.0 18.0% 60.0 HEINEKEN’s CEE Group beer volume (mhl) 16.0% 14.0% 50.0 12.0% 40.0 10.0% 30.0 8.0% 6.0% 20.0 4.0% 10.0 2.0% 0.0 0.0% 2008 2009 2010 2011 2012 Group Beer Volume (mhl) HEINEKEN CEE market share 1Based on markets in

  16. Slide 16: Agenda

    Agenda HEINEKEN: Central & Eastern Europe 1 A large and diverse beer market 2 CEE: A key region for HEINEKEN 3 Strategic focus on driving profit growth 4 Key markets update 16

  17. Slide 17: CEE: Long term value creation opportunity

    CEE: Long term value creation opportunity Bubble represents size of the profit pool (₌ €500m) 100 90 Central & Eastern Europe North America 80 70 Per capita consumption 60 Western Latin America 2011 Europe 50 40 30 China 20 Africa 10 Asia (ex China) 0 0 5 10 15 20 25 EBIT/ hl (€) Source: Plato – Nov

  18. Slide 18: A strategic focus on revenue per hl growth

    A strategic focus on revenue per hl growth Revenue Management Strategic Drivers Global Mix and brands Innovation Brand and Portfolio management Outlet Execution, Modern Trade Capabilities Improving Revenue / hl and profitability 18

  19. Slide 19: Heineken® brand offers an exciting growth opportunity

    Heineken® brand offers an exciting Global brands Mix, Innovation growth opportunity Brands Execution Heineken® brand volume Heineken® brand volume (khl) as % of Group beer volume 3,000 Asia 2,500 WER 2,000 Americas 1,500 1,000 Africa 500 CEE 0 2008 2009 2010 2011 2012 0 5 10 15 20 25 Rest of CEE Gre

  20. Slide 20: Heineken®: Powerful activation and execution

    Heineken®: Powerful activation and execution  Global platforms & creation of local relevance  Scaling-up distribution (Numeric distribution everywhere)  Iconic trade visibility  Affordable Packaging Global Mix, 25cl and 40cl bottle launches brands Innovation Brands Execution 20

  21. Slide 21: Heineken® commercial

    Heineken® commercial Global brands Mix, Innovation Video Brands Execution 21

  22. Slide 22: Successful roll-out of Desperados

    Successful roll-out of Desperados Global Mix, brands Innovation Brands Execution  Available in 19 countries Desperados volume in CEE across CEE region Average price index is almost 600  2 times mainstream brands 500  Desperados Fuego line 400 extension recently launched in Germany khl 300 200 100

  23. Slide 23: Innovation is key to winning with consumers

    Innovation is key to winning with consumers Global Mix, brands Innovation Brands Execution Innovation rate1 Innovation volume in CEE 8,000 CAGR: +36% 12.3% 6,000 Khl 6.0% 4,000 5.3% 2,000 0 CEE FY2012 HEINEKEN 2020 Target 2010 2011 2012 Group FY2012 1 Innovation rate calculated as revenues generated

  24. Slide 24: 'Radlers' are a proven success story

    ‘Radlers’ are a proven success story Global Mix, brands Innovation Brands Execution Radler: An innovative mix of beer and natural lemon juice 2011 700 khl C R O A TI A SLOVAKIA 2009 2012 250 khl 1.400 khl A U S TR I A BELARUS HUNGARY BULGARIA CZECH MA C E D O N I A POLAND R O MA N I A RUSSIA SERBIA

  25. Slide 25: HEINEKEN has the most complete Radler portfolio

    HEINEKEN has the most complete Global Mix, brands Innovation Brands Radler portfolio Execution 25

  26. Slide 26: Radler commercial

    Radler commercial Global Mix, brands Innovation Brands COMMERCIAL (Warka and Ciuc) Execution 26

  27. Slide 27: Building winning portfolios in Poland

    Building winning portfolios in Poland Global Mix, brands Innovation Brands A complete brand offer to match consumer demand Execution International premium 130 180 Local premium 120 Mainstream 95 100 100 Lower Mainstream 85 85 27 Source: Nielsen, Price Index vs Ttl Beer Price, MAT 2012

  28. Slide 28: Developing leading local brands

    Developing leading local brands Global Mix, brands Innovation Brands Execution Gösser brand: Market share evolution in Austria 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2007 2008 2009 2010 2011 2012 28 Source: HEINEKEN

  29. Slide 29: Local brand commercial

    Local brand commercial Global Mix, brands Innovation Brands COMMERCIAL (Gosser) Execution 29

  30. Slide 30: It is all about execution!

    It is all about execution! Global Mix, brands Innovation Brands Execution Everyday …in a largely We win …and moments fragmented by deploying the right of truth... market… key assets… people ~30 million 414K 391K 156K 5,100 beers routed fridges draught beer sales consumed outlets installations people

  31. Slide 31: Excellent Outlet Execution

    Benchmarking and driving outlet execution Global Mix, brands Innovation Brands Execution Excellent Outlet Execution (EOE) Stage III Excellent Outlet Execution OpCo OpCo OpCo Stage II OpCo OpCo OpCo OpCo OpCo OpCo Stage I OpCo OpCo OpCo Low sell out drivers Towards sell out drivers Sell out drivers 0

  32. Slide 32: Execution commercial

    Execution commercial Global Mix, brands Innovation Brands Commercial (Festival activation) Execution 32

  33. Slide 33: Leading on price across the region

    Leading on price across Global Mix, brands Innovation Brands the region Execution Mar.’13 Jan.’13 Jan.’13 Feb.’13 Jan.’13 Feb.’13 Mar.’13 Jan.’13 Jan.’13 Feb.’13 Jan.’13 Jan.’13 Jan.’13 Price increases taken in Q1 Jan.’13 Jan.’13 20131 Low single digits Mid single digits High single 1 Price increase

  34. Slide 34: Fixed cost growth well below inflation

    Fixed cost growth well below inflation Key cost-focused programmes: HEINEKEN fixed cost base  Complexity reduction growing below inflation  Route to market optimisation  Management and support cost control 7.0%  Personnel cost management 4.9% 4.7% 5.0% 4.4% 4.0%  Review of other fixed costs 3.1

  35. Slide 35: Driving a high performance culture…

    Driving a high performance culture… Growing local senior management and talent CEE intra-regional promotions as % of CEE MT/ SM vacancies Investing in local senior 86% management and talents 35% 36% Investing in talent and leadership development programmes for future leaders 2011 2012 2013 CEE intra

  36. Slide 36: …whilst building engagement

    …whilst building engagement Increasing employee engagement 90 80 Employees feel more engaged 70 60 2010 Employees’ perception on Cooperation 2012 and Teamwork increased 50 Employees’ perception on Personal Development increased Culture of learning from each other Using collaborative sites for sharin

  37. Slide 37: Agenda

    Agenda HEINEKEN: Central & Eastern Europe 1 A Large and diverse beer market 2 CEE: A key region for HEINEKEN 3 Strategic focus on driving profit growth 4 Key markets update 37

  38. Slide 38: Austria

    Austria 2012 Total market size (mhl)* 9.2 Vienna World Ranking** #32 Consumption per capita (L)* 109.5 HEINEKEN market share*** 48.90% HEINEKEN market position*** #1 Revenue / HL High brewery *Source: Plato Logic Statistics, 2012 Nov **UBS Global Beer ; August 2012 38 *** AC Nielsen, 2012 November

  39. Slide 39: Austria: Solid value share and profit growth in a mature market

    Austria: Solid value share and profit growth in a mature market Brau Union Austria: Market share Brau Union Austria success factors: evolution per segment  Focus on beer culture 60% 59.0%  Strong brands  Continued innovation 55% 58.4%  Successful implementation of price increases 50%  Market sh

  40. Slide 40: Russia

    Russia 2012 Total market size (mhl)* 94.9 World Ranking** #4 Consumption per capita (L)* 66.5 Moscow HEINEKEN market share*** 13.40% HEINEKEN market position*** #4 Revenue / HL Low brewery *Source: Plato Logic Statistics, 2012 Nov **UBS Global Beer ; August 2012 40 *** AC Nielsen, 2012 November

  41. Slide 41: Russia: Positive volume and value growth momentum

    Russia: Positive volume and value growth momentum HEINEKEN Russia commercial focus: Market share evolution  Portfolio strategy per city 13,4% 100%  Heineken® and Amstel® premium brands 12,1% 90%  Innovation 80%  Increasing prices across the portfolio 70% 60% 50% HEINEKEN Russia EBIT (beia) 40% e

  42. Slide 42: Romania

    Romania 2012 Total market size (mhl)* 18.0 World Ranking** #23 Consumption per capita (L)* 84.1 Bucharest HEINEKEN market share*** 33.80% HEINEKEN market position*** #1 Revenue / HL Low brewery *Source: Plato Logic Statistics, 2012 Nov **UBS Global Beer ; August 2012 42 *** AC Nielsen, 2012 November

  43. Slide 43: Romania: Successful value creation in a highly competitive market

    Romania: Successful value creation in a highly competitive market Market share evolution HEINEKEN Romania success factors:  Strategic partnership with distributors  Strong brand portfolio management 33,8%  Radler and non-alcoholic beers  Excellent outlet execution programme  Tight cost control

  44. Slide 44: Summary

    Summary  CEE is, by volume, a very large beer region, with significant profit upside from rising disposable income  HEINEKEN is a leading regional brewer, with broad access to key markets and an unrivalled brand range  HEINEKEN is thus positioned to lead the region, with a focus on value creation

  45. Slide 45: Question & Answer

    Question & Answer Question Answer Question & Answer & Answer Question & Answer London | 25 March 2013 | Heineken NV

  46. Slide 46: Thank You

    Thank You Thank You Thank You Thank You Thank You Thank You Thank You Thank You Thank You London | 25 March 2013 | Heineken NV

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