Heineken Nv · EURONEXT:HEIA
Heineken Nv — Q2 2021 Earnings Presentation
21 slides from Heineken Nv's earnings presentation, Jul 30, 2021
Slide 1: 2021 Half Year Results
Heineken N.V. 2021 Half Year Results Dolf van den Brink, CEO Harold van den Broek, CFO Amsterdam | August 2, 2021 | Heineken N.V.
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: Dolf van den Brink, CEO and Chairman of the Executive Board
Dolf van den Brink CEO and Chairman of the Executive Board 2
Slide 4: Heineken through the pandemic
Heineken through the pandemic
Slide 5: HEINEKEN growth algorithm
HEINEKEN growth algorithm NAVIGATE THE CRISIS Superior growth BUILD THE FUTURE Our unique strengths Raise the bar on Long-term value creation & opportunities Sustainability & Accelerated Responsibility and Continuous investments People strategy productivity & sharper improvements resource allocation
Slide 6: HY 2021 Highlights
HY 2021 Highlights Net Revenue (beia) OG Net Revenue (beia) OG per hl Very strong performance, seizing the opportunity as restrictions lifted and +14.1% +5.5% adapting swiftly where restrictions renewed. Consolidated Beer Volume OG Heineken® Volume +9.6% +19.6% Heineken® performance remarkably stron
Slide 7: AMEE Region
AMEE Region Net Revenue (beia) OG Operating Profit (beia) OG +30.4% +190.2% Price Mix on constant geographic Beer Volume OG basis +16.8% +9.5% Volume recovery ahead of 2019 driven by Nigeria, the DRC, Ivory Coast, Burundi, Rwanda and Lebanon. Strong recovery in NIGERIA, ahead of the market. Premium
Slide 8: Americas Region
Americas Region Net Revenue (beia) OG Operating Profit (beia) OG +25.7% +85.7% Price Mix on constant geographic Beer Volume OG basis +16.7% +9.4% MEXICO grew mid-thirties, ahead of 2019. Launched Dos Equis Ultra Lager. SIX accelerated its growth. In BRAZIL outperforming in premium and mainstream. He
Slide 9: APAC Region
APAC Region Net Revenue (beia) OG Operating Profit (beia) OG +5.4% +15.9% Price Mix on constant geographic Beer Volume OG basis -1.0% +3.0% VIETNAM grew slightly, but strongly impacted last months. Mainstream grew mid-teens led by Larue and Bia Viet. CHINA strong double-digit Heineken® growth, led b
Slide 10: Exciting news from India!
Exciting news from India! A market with huge potential! 1.4 billion people consuming <2 litres per capita Fast growing middle-class UBL – the market leader in India Century old legacy Iconic brands, led by Kingfisher Robust production and distribution network A top OpCo @ HEINEKEN • Integr
Slide 11: Europe Region
Europe Region Net Revenue (beia) OG Operating Profit (beia) OG +3.0% +359.1% Price Mix on constant geographic Beer Volume OG basis +3.2% +0.8% ON-TRADE showing signs of recovery in Q2, but still c.50% below 2019 in H1. OFF-TRADE growing ahead of 2019, driven by premium. Outperformed the market in It
Slide 12: Heineken®: Remarkable performance
Heineken®: Remarkable performance Heineken® 0.0 grew c.40% and is now Heineken® volume available in 95 markets +19.6% vs 2020 Heineken® volume Heineken® Silver more than quadrupled its volume, driven by strong growth in Vietnam +16.7% vs 2019 and China Double-digit growth markets >50 Heineken® spons
Slide 13: Big strides to become the Best Connected Brewer
Big strides to become the Best Connected Brewer B2B PLATFORMS € 1 billion in digital sales value in H1, more than 2x last year >200k customers connected from traditional channels, >4x vs LY Now spanning 30 countries D2C PLATFORMS Beerwulf c.60% net revenue growth, driven by strong growth of
Slide 14: Operationalising our 2030 BaBW vision
Operationalising our 2030 BaBW vision ENVIRONMENT ENVIRONMENT SOCIAL RESPONSIBLE CARBON IN BRAZIL CARBON IN INDONESIA AMSTEL IN BRAZIL WAZE AT HUSA • Brazil’s breweries will reach • Indonesia’s breweries will use • 10% of Amstel Brazil’s media • HUSA partnered with Waze on carbon neutrality by 2023
Slide 15: Harold van den Broek, CFO
Harold van den Broek CFO/Member of the Executive Board 14
Slide 16: Agile in the recovery
Agile in the recovery Net revenue (beia): 14.1% organic increase Organic increase €1,300m 6.1% 0.1% €m +8.2% +5.5% 9,971 Volume OG Net rev/hl OG 9,243 HY 2020 Total volume Net rev/hl Currency Consolidation HY 2021 Net revenue translation impact Net revenue (beia) (beia) 15
Slide 17: Profit more than doubled
Profit more than doubled Operating profit (beia): +109.3% organic increase 101 1 904 1,628 827 HY 2020 Organic growth Currency Consolidation HY 2021 Operating translation impact Operating profit (beia) profit (beia) 16
Slide 18: Accelerated investments enabled by productivity improvements
Accelerated investments... …Enabled by productivity improvements DIGITAL & TECHNOLOGY ORGANISATIONAL REDESIGN Accelerated deployment of B2B platforms More than half of the benefit realised Continued standardisation of ERP landscape Head-office redesign implemented April 1 SUSTAINABILITY & RESPONSIBI
Slide 19: Other key financial metrics
Other key financial metrics €m unless otherwise stated - Beia HY 2021 HY 2020 Vs. LY Operating Profit 1,628 827 +109.3% Share of profit 96 21 +379.6% Net Interest income & expenses -201 -232 +9.9% Other net finance income & expenses -53 -65 +7.0% Net Profit 896 227 +320.3% ETR 30.9% 43.2% -1229bps E
Slide 20: Cash flow recovery driven by cash from operations
Cash flow recovery driven by the cash from operations €m 13 213 650 384 809 848 €m HY 2020 Cash flow from Working capital Capex 2 Interest, dividend HY 2021 FOCF operations1 & income tax FOCF 1. Cash flow from operations before changes in working capital and after provisions and post-retirement obli
Slide 21: Outlook
Outlook Theme continues: cautious on outlook, agile in recovery. Pandemic to continue to impact the rest of this year. Headwinds in input costs expected in 2nd half, and a material impact from commodity costs in 2022. Assertive pricing, revenue and cost management to mitigate. Increase our marketing