Heineken Nv · EURONEXT:HEIA
Heineken Nv — Barclays Back To School Conference 2014
26 slides from Heineken Nv's conference presentation, Sep 3, 2014
Slide 1: Barclays Back To School Conference
HEINEKEN Barclays Back To School Conference Heineken NV / Heineken Holding NV 3 September 2014
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: Strong performance in recent H1 results
Strong performance in recent H1 results Organic Mhl/€m 2014H1 2013H1 Change (%) Group revenue 10,196 10,339 4.6 Group revenue/hl (€) 90 93 1.5 Group operating profit 1,560 1,448 13 Group operating profit (beia) margin 15.3% 14.0% Consolidated Revenue 9,274 9,354 4.8 Consolidated operating profit (be
Slide 4: The leading premium global brewer with sustainable growth platforms
The leading premium global brewer with sustainable growth platforms 1 2 A BROAD PREMIUM PORTFOLIO, COOL MARKETING, INNOVATION LED BY Heineken ® & COMMERCIAL EXECUTION 3 4 DRIVING COST EFFICIENCIES GLOBAL REACH ENABLES BALANCED GROWTH 5 BREW A BETTER WORLD Generate sustainable medium-term top-line gr
Slide 5: Powerful Priority Brand portfolio
Powerful Priority Brand portfolio The leading Tequila international Belgian The flavoured beer premium brand Abbey beer Independent brand The global Mexican 5 leader in cider
Slide 6: Heineken: Truly global premium beer in the strategic IPS segment
Heineken : Truly global premium beer ® in the strategic IPS segment Volume Development Heineken® : #1 global IPS brand 5 year CAGR with strongest brand equity 7.8 5.1% 7.6 7.4 Heineken® 7.2 7.0 Brand equity1 Stella Artois 6.8 2.1% 6.6 Budweiser Dos Equis Carlsberg Corona 6.4 Tiger 6.2 6.0 0% 5% 10%
Slide 7: Six Competitive Advantages
Six Competitive Advantages Product Marketing Design campaigns Sponsorships Digital Innovation 7
Slide 8: New Global campaign
Placeholder The City New Global campaign 8
Slide 9: Tapping into key growth opportunities
Tapping into key growth opportunities Cider complementary to beer business and Affligem addressing the craft beer taste quest CIDER GROWING >2.5X SPECIALITIES1: FASTER THAN BEER FASTEST GROWING BEER SEGMENT 5% Global cider category growth CAGR% (2008-2013) Volume: 2010 – 2014F CAGR % 6% 4% 2% All be
Slide 10: Tiger and Dos Equis – Regional power brands
Tiger and Dos Equis – Regional power brands TIGER VOLUME IN ASIA PACIFIC ACCELERATED GROWTH OF DOS EQUIS CAGR 4,000 5.1 Mexico Volume: 33% 3,500 USA CAGR (2010-2013) 3,000 Total: 12% 4.0 2,500 Volume (kHL) 2,000 2.9 1,500 1,000 500 0 2011 2012 2013 10 Source: Canadean
Slide 11: Dos Equis
Placeholder Dos Equis HEINEKEN
Slide 12: Complemented with Local Brand Champions
Complemented with Local Brand Champions With strong positions within home markets Mexico Indonesia Nigeria UK Poland 14.5mhl 1.4mhl 3.8mhl 5.7mhl 2.2mhl 12
Slide 13: The leading premium global brewer with sustainable growth platforms
The leading premium global brewer with sustainable growth platforms 1 2 A BROAD PREMIUM PORTFOLIO, COOL MARKETING, INNOVATION LED BY Heineken ® & COMMERCIAL EXECUTION 3 4 DRIVING COST EFFICIENCIES GLOBAL REACH ENABLES BALANCED GROWTH 5 BREW A BETTER WORLD Generate sustainable medium-term top-line gr
Slide 14: Cool marketing and prestigious sponsorships with strong digital activation
Cool marketing and prestigious sponsorships with strong digital activation AWARD-WINNING SPORTING EVENTS, SOCIAL AND DIGITAL MEDIA GLOBAL CAMPAIGNS MUSIC & FILM FESTIVALS #1 ON FACEBOOK 18.1M Heineken® 12.2M Budweiser 7.2M Stella Artois 7.0M Corona 1.9M Carlsberg (Number of Fans) 14 Facebook fans as
Slide 15: Innovations contributing significantly to top line growth
Innovations contributing significantly to top line growth INNOVATION RATE1 7.4% 2020 Target: 6% 5.9% 5.3% 4.1% 3.0% 2010 2011 2012 2013 2014HY 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 qu
Slide 16: Driving excellence in outlet execution
Driving excellence in outlet execution Partnering for growth with our customers TARGETED CHANNEL GLOBAL BRANDS STRATEGIES ACTIVATION BUILDING BUILDING SALES PARTNERSHIPS CAPABILITIES 16
Slide 17: The leading premium global brewer with sustainable growth platforms
The leading premium global brewer with sustainable growth platforms 1 2 A BROAD PREMIUM PORTFOLIO, COOL MARKETING, INNOVATION LED BY Heineken ® & COMMERCIAL EXECUTION 3 4 DRIVING COST EFFICIENCIES GLOBAL REACH ENABLES BALANCED GROWTH 5 BREW A BETTER WORLD Generate sustainable medium-term top-line gr
Slide 18: TCM2 Cost Savings Delivered Early, In-Full
TCM2 Cost Savings Delivered Early, In-Full Ongoing cost savings expected to contribute to future margin expansion Completion of TCM2 programme Committed to driving further cost savings: (2012-2014HY): €637 million TMC2 Functional Split Ongoing productivity improvements in Supply Support 18% Chain
Slide 19: The leading premium global brewer with sustainable growth platforms
The leading premium global brewer with sustainable growth platforms 1 2 A BROAD PREMIUM PORTFOLIO, COOL MARKETING, INNOVATION LED BY Heineken ® & COMMERCIAL EXECUTION 3 4 DRIVING COST EFFICIENCIES GLOBAL REACH ENABLES BALANCED GROWTH 5 BREW A BETTER WORLD Generate sustainable medium-term top-line gr
Slide 20: HEINEKEN at a glance
HEINEKEN at a glance 70+ COUNTRIES 165 BREWERIES 250+ BRANDS 195mhl GROUP BEER 57% OF GROUP OPERATING 85,000DIRECT Group beer volume1 by region (2013) VOLUME1 PROFIT (BEIA)2 FROM EMPLOYEES WE AME DEVELOPING MARKETS 22% 14% Americas 28% CEE 25% Asia Pac 11% Group Operating profit (beia)2 by region (2
Slide 21: Mexico
Mexico Delivering value growth and significant margin expansion REVENUE1 OPERATING PROFIT OPERATING PROFIT (BEIA) • Mexico positive market dynamics - 2010-2013 (BEIA)1 2010-2013 MARGIN2 2010-2013 €M €M €M economic outlook; growing middle class; increasing urbanisation CAGR +6% CAGR +21% 18.2% • Pric
Slide 22: Nigeria
Nigeria A diverse brand portfolio competing in different segments and beverage categories Priorities for action to win with Nigeria Strong organic growth momentum (indexed to 2009) CAGR% Creation of one merged HEINEKEN 11% 1 10% company in Nigeria 6% Optimising portfolio coverage and 2 ensuring effe
Slide 23: Asia Pacific: A dynamic, high growth region
Asia Pacific: A dynamic, high growth region HEINEKEN best placed to access regional growth opportunities HEINEKEN HAS LEADERSHIP IN THE LARGEST NUMBER OF MARKETS 1 APB successfully integrated in 2013 Number of #1 and #2 market positions in Asia-Pacific Region of growing importance to HEINEKEN: HEI
Slide 24: The leading premium global brewer with sustainable growth platforms
The leading premium global brewer with sustainable growth platforms 1 2 A BROAD PREMIUM PORTFOLIO, COOL MARKETING, INNOVATION LED BY Heineken ® & COMMERCIAL EXECUTION 3 4 DRIVING COST EFFICIENCIES GLOBAL REACH ENABLES BALANCED GROWTH 5 BREW A BETTER WORLD Generate sustainable medium-term top-line gr
Slide 25: 5. Brew a Better World (BaBW)
5. Brew a Better World (BaBW) Six key priority areas supporting the Business Agenda through CSR Energy Water Sourcing Responsible Communities Health Consumption & Safety • Reducing energy • Protecting water • Addressing • Advocate • Inclusive growth • Health and Safety (CO2) Emissions resources sust
Slide 26: Summary
Summary Broad premium portfolio led by Heineken® Heineken® leading global brand in IPS Expansion of priority brands to capture consumer segmentation Best placed to win in growing cider category Cool marketing, innovation and commercial execution Expertise in premium brand development Uniqu