Slide 1: Full year 2013 results Heineken N.V.
Full year 2013 results Heineken N.V. Jean François van Boxmeer Chairman of the Executive Board/ CEO 12 February 2014 | Heineken 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: 2013 Group highlights
2013 Group highlights Continued progress against strategic priorities in a challenging year Group revenue +1.3%; +0.1% organically: Group revenue per hectolitre +2.7% Improved second half volume performance in Western Europe and Africa Middle East regions Group operating profit (beia) +2.8%;
Slide 4: Regional review
Regional review 2013 CONSOLIDATED FINANCIALS ORGANIC GROWTH % Africa Americas Asia Pacific Central & Western Middle East Eastern Europe Europe Beer volume - -2.1 3.2 -6.4 -4.1 Revenue 1.5 1.7 5.3 -2.1 -2.2 Revenue per HL 4.6 3.6 2.8 4.0 1.6 Operating profit (beia) 2.7 5.3 3.4 -13 -4.7 4
Slide 5: Sustained growth of APB
Sustained growth of APB APB: 2013 proforma organic growth Tiger brand: Proforma organic volume growth 14% APB acquisition +30% yoy 7% CAGR +18% Volume Operating 2009 2010 2011 2012 2013 profit (beia) 5
Slide 6: Mexico delivering impressive top-line and profit growth
Mexico delivering impressive top-line and profit growth Revenue1 Operating Operating 2010-2013 profit (beia)1 profit (beia) €M 2010-2013 margin2 €M 2010-2013 €M CAGR +6% CAGR +21% 18.2% 12.9% 2010 2013 2010 2013 2010 2013 1 Includes domestic beer operations only 6 2 Includes domestic beer and export
Slide 7: Improved performance trend in 2013 H2
Improved performance trend in 2013 H2 Driven by Western Europe and Africa Middle East regions Group organic development (%) 2013H1 2013H2 Africa Middle East -1.2 +0.6 Americas -1.8 -2.1 Asia Pacific +5.1 +3.3 Central & Eastern Europe -5.3 -6.6 Western Europe -8.0 -0.3 Group beer volume total -3.5 -2
Slide 8: Innovation contributed €1.1bn of revenues
Innovation contributed €1.1bn of revenues Innovation rate1 of 5.9% versus 5.3% in 2012 ‘Radler’ beers available in 5 regions New variants Draught beer systems New cider flavours (on and off premise) 1 From 1 January 2013, the innovation rate is calculated as revenues generated from innovations (intr
Slide 9: Heineken®: Clear leadership in IPS
Heineken®: Clear leadership in IPS Heineken® twice as large as nearest competitor brand in IPS Heineken® volume declined 1.8%, including an Heineken® share of IPS1 (2013) impact from destocking in France and the U.S. 20% Strong performances in developing markets of Nigeria, South Africa, Russia,
Slide 10: Prioritised actions for 2014
Prioritised actions for 2014 1 Invest in higher marketing spend to strengthen market positions 2 Drive innovation to support category growth 3 Capitalise on premium segment growth with Heineken® and other global brands 4 Increase capital expenditure in developing markets 5 Restructuring and other co
Slide 11: 2014 Full Year Outlook
2014 Full Year Outlook HEINEKEN expects: A gradual recovery in the global economy to underpin improved trading conditions in several key markets and an improved organic volume performance trend versus 2013. Revenue management initiatives to drive higher revenue per hl, albeit at a more modest le
Slide 12: Full year 2013 results Heineken N.V.
Full year 2013 results Heineken N.V. René Hooft Graafland Member of the Executive Board/ CFO 12 February 2014 | Heineken NV
Slide 13: Financial overview
Financial overview Total Change Organic Mhl/€m 2013 2012 (%) Change (%) Group revenue 21,255 20,984 1.3 0.1 Group revenue/hl (€) 92 90 2.3 2.7 Group operating profit 3,192 3,106 2.8 0.6 Group operating profit (beia) margin 15.0% 14.8% +20bps Consolidated revenue 19,203 18,383 4.5 -0.9 Consolidated o
Slide 14: Group revenue organic growth +0.1%
Group revenue organic growth +0.1% Consolidation impact from APB +€1,531 million Revenue in €m Group: organic +0.1% 21,255 20,984 +7.5% 2,601 2,052 +2.6% -2.1% -3.5% 19,203 18,383 2012 Revenue Consolidation impact Currency translation Total cons. volume Consol. rev/hl 2013 Revenue Consolidated Attri
Slide 15: Group operating profit (beia) organic growth +0.6%
Group operating profit (beia) organic growth +0.6% Consolidation impact from APB +€385 million Operating profit (beia) in €m Group: organic +0.6% 3,192 3,106 +12.5% 440 251 -1.5% -0.7% 2,941 2,666 2012 Op. profit (beia) Consolidation impact Currency translation Organic 2013 Op. profit (beia) Consoli
Slide 16: Net profit (beia) declined 2% organically
Net profit (beia) declined 2% organically Net profit (beia) in €m 1,661 +17 -40 1,585 -20 -33 2012 Net profit (beia) Impact of revised IAS19 Consolidation impact Currency translation Organic 2013 Net profit (beia) restated* *2012 restated for IAS19 2012 EIA includes €1,486 million revaluation gain r
Slide 17: TCM2: Accelerating cost efficiencies
TCM2: Accelerating cost efficiencies Cumulative TCM2 savings of €496m; expect to achieve targeted €625m savings during 2014 TCM2 savings of €300m in 2013 Global Business Services (GBS) TMC2 Functional Split: 2013 Key enabler of cost savings HEINEKEN Procurement Group (HGP) driving Support consid
Slide 18: Higher capital investment to drive future growth
Higher capital investment to drive future growth Committed to reducing net debt/EBITDA (beia) to below 2.5x by end-2014 Increasing investments …whilst continuing to deleverage in developing markets… to optimise financial flexibility Capital Expenditure as a % of Revenue1 Net Debt/EBITDA (beia) ratio
Slide 19: Compelling growth platforms
Compelling growth platforms Drivers of sustainable revenue and profit growth 1 Highly diversified and growing developing market footprint 2 Clear leadership in growing premium segment with Heineken® 3 Proven innovation capabilities 4 Sustained high investment in marketing and capital expenditure 5 T
Slide 20: Question & Answer
Question & Answer Question Answer Question & Answer & Answer Question & Answer 12 February 2014 | Heineken NV
Slide 21: Africa Middle East
Africa Middle East Investments in brands and new capacity to support future growth CONSOLIDATED GROUP Total Organic Total Organic Mhl/€m 2013 Change (%) Change (%) 2013 Change (%) Change (%) Revenue 2,554 -3.2 1.5 3,072 -3.6 Revenue/hl (in €) 87 -0.3 4.6 87 -1.2 Operating profit (beia) 607 -1.8 2.7
Slide 22: Americas
Americas Solid results in a challenging environment CONSOLIDATED GROUP Total Organic Total Organic Mhl/€m 2013 Change (%) Change (%) 2013 Change (%) Change (%) Revenue 4,495 -0.6 1.7 5,315 1.3 Revenue/hl (in €) 86 2.8 3.6 88 2.8 Operating profit (beia) 719 6.1 5.3 837 4.1 Operating profit (beia) mar
Slide 23: Asia Pacific
Asia Pacific Strong operational performance; APB successfully integrated CONSOLIDATED GROUP Total Organic Total Organic Mhl/€m 2013 Change (%) Change (%) 2013 Change (%) Change (%) Revenue 2,037 >100 5.3 2,394 60 Revenue/hl (in €) 113 -9.8 2.8 102 19 Operating profit (beia) 536 >100 3.4 580 48 Opera
Slide 24: Central & Eastern Europe
Central & Eastern Europe A continued challenging trading environment CONSOLIDATED GROUP Total Organic Total Organic Mhl/€m 2013 Change (%) Change (%) 2013 Change (%) Change (%) Revenue 3,097 -5.6 -2.1 3,453 -5.1 Revenue/hl (in €) 66 - 4.0 66 1.5 Operating profit (beia) 290 -13 -13 321 -12 Operating
Slide 25: Western Europe
Western Europe Improved top-line performance in the second half of the year CONSOLIDATED GROUP Total Organic Total Organic Mhl/€m 2013 Change (%) Change (%) 2013 Change (%) Change (%) Revenue 7,456 -4.2 -2.2 7,456 -4.2 Revenue/hl (in €) 124 0.8 1.6 124 0.8 Operating profit (beia) 853 -9.9 -4.7 853 -
Slide 26: US Dollar Hedging
US Dollar Hedging POSITION IMPACT Net inflow Hedged Hedged Year In USD mln Part** Rate*** Year Net Profit 2011A 703 703 1.35 2011A 2 2012A 696 696 1.36 2012A -4 2013A 556 556 1.31 2013A 11 2014F 537 468 1.31 2014F* 0 2015F 555 161 1.35 2015F* -11 * Impact on open positions calculated by comparing sp
Slide 27: Impact of revised IAS19 on financials
Impact of revised IAS19 on financials 2012 F I N A N C I AL 2012 2013 Impact1 (€ million) IMPACT RESTATED (€ million) EBIT (beia) +6 2,918 EBIT (beia) -47 Consol. operating profit (beia) +6 2,666 Consol. operating profit (beia) -47 ‘Other Net Finance Costs’ -51 ‘Other Net Finance Costs’ -6 Taxation