Heineken Nv · EURONEXT:HEIA
Heineken Nv — FY2022 Earnings Presentation
25 slides from Heineken Nv's earnings presentation, Feb 15, 2023
Slide 1: Heineken N.V. 2022 Full Year Results
Heineken N.V. 2022 Full Year Results Dolf van den Brink, CEO Harold van den Broek, CFO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based on current expectations and assumptions with regard to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may
Slide 3: EverGreen
EverGreen Strategic Priorities Growth Algorithm Green Diamond Growth ① SHAPE THE FUTURE OF BEER & BEYOND Capital Profitability ② DIGITAL efficiency ③ PRODUCTIVITY Sustainability & ④ SUSTAINABILITY Responsibility ⑤ PEOPLE What we focus on How we create value How we measure success 3
Slide 4: Strong results in a challenging and volatile environment
Strong results in a challenging and volatile environment Balanced growth and ahead of the beer category Growth in the majority of our markets Top-line and profits fully recovered ahead of 2019 Capital Profitability efficiency €1.7 billion of gross savings, well on-track to deliver €2bn+ by 202
Slide 5: FY 2022 Financial Highlights
FY 2022 Financial Highlights Net Revenue (beia) OG Net Revenue (beia) OG per hl +21.2% +13.9% Total Volume OG Heineken® Volume (exc. Russia) +6.4% +14.5% Operating Profit (beia) OG Operating Profit Margin (beia) +24.0% 15.7% (+10bps) Net Profit (beia) OG Diluted EPS (beia) EUR +30.7% 4.92 5
Slide 6: Premium-led recovery and regained momentum
Premium-led recovery and regained momentum Organic growth versus 2019 31,5% 17,6% 15,6% 11,2% 2,7% -0,4% Total Beer Premium Heineken® Net revenue Operating profit volume volume beer volume volume (beia) (beia) 6
Slide 7: AMEE Region
AMEE Region Net Revenue (beia) OG Price Mix Nigeria assertive pricing to mitigate inflation. +21.8% +19.7% Outperforming the market, led by our premium brands Tiger, Desperados and Heineken®. Ethiopia growth significantly ahead of the market. Sustaining #1 position, ``` led by our mainstream portfol
Slide 8: Americas Region
Americas Region Mexico growth led by revenue management and Net Revenue (beia) OG Price Mix premiumisation. Premium led by Amstel ULTRA, +15.2% +15.6% Bohemia and Heineken®. Six stores >16,000. Brazil outperformed the market, led by Heineken ® and Amstel, reaching record market share positions at th
Slide 9: APAC Region
APAC Region Vietnam strong recovery in H2, outperforming the Net Revenue (beia) OG Price Mix market, led by premium with Heineken® Silver and +37.4% +12.6% Tiger Crystal. Bia Viet grew more than 60%. India volume recovered ahead of 2019. Premium outperformed, led by Kingfisher Ultra. Heineken® Silve
Slide 10: Europe Region
Europe Region On-trade grew in the low-thirties, remaining Net Revenue (beia) OG Price Mix below 2019 by a high-single-digit. +19.2% +11.8% Off-trade beer volume declined by a mid-single- digit and is ahead of 2019 by a mid-single-digit. Premium beer volume outperformed, boosted Operating Profit by
Slide 11: Heineken continued strong momentum
Heineken continued strong momentum ® Heineken® Silver Strong volume growth Heineken® 0.0 #1 launch in FMCG +14.5% +8.8% in Europe in 2022 (excl. Russia) (excl. Russia) Most Awarded Food & Drink Brand Cannes 2022 Double-digit growth Heineken® Silver >50 >2x #1 markets Fastest Rollout into 25 addition
Slide 12: Balanced growth between volume and value
Balanced growth between volume and value PriceMix 50% 50% Volume PriceMix +23% PriceMix Volume +54% Net Revenue (beia) Net Revenue (beia) Vs 2021 Vs 2021 Volume PriceMix +36% +20% Volume Net Revenue (beia) Net Revenue (beia) PriceMix Vs 2019 Volume Vs 2019 12
Slide 13: Continuing to invest with quality behind our portfolio
Continuing to invest with quality behind our portfolio Marketing & Selling Expenses as % of Net Revenue (beia) Marketing & Selling Expenses (€b) 11,0% 2.6 2.7 9,5% 9,5% 2.1 2019 2021 2022 2019 2021 2022 % Consumer-facing >70% 69% 67% 13
Slide 14: GMV from eB2B platforms
GMV 9.2 From 40 eB2B platforms… In €bn GMV = Gross Merchandise Value. Figure refers to FY 2022 Launching soon! 14
Slide 15: Building momentum on Brew a Better World
Building momentum on Brew a Better World Environmental Social Responsible -18% >99% 1.2bn carbon in production* direct employees earn unique consumers reached vs 2018 (2021: -16%) at least a fair wage via Heineken® responsible *absolute, scope 1&2 consumption campaigns 3.0 hl/hl 27% 46% average wate
Slide 16: EverGreen Growth Algorithm
EverGreen Growth Algorithm Strengths & Long-term value opportunities Sustainability creation Responsibility People 16
Slide 17: Double-digit growth from volume recovery and inflation-led pricing
Double-digit growth from volume recovery and inflation-led pricing Net Revenue (beia): +21.2% organic increase Organic increase €4,642m 2.6% 7.2% €m +13.9% Net rev/hl OG 28,694 +6.4% Volume OG 21,901 FY 2021 Total volume Net rev/hl Currency Consolidation FY 2022 Net revenue translation impact Net re
Slide 18: Strong profit growth delivery versus 2021
Strong profit growth delivery versus 2021 Operating Profit (beia): +24.0% organic increase 12 258 818 4,502 3,414 FY 2021 Organic growth Currency Consolidation FY 2022 Operating profit translation impact Operating profit (beia) (beia) 18
Slide 19: Other key financial metrics
Other key financial metrics €m unless otherwise stated - Beia FY 2022 FY 2021 vs LY¹ Operating Profit 4,502 3,414 +24.0% Share of Profit 263 238 +12.1% Net Interest Income & Expenses -380 -403 +6.8% Other Net Finance Income & Expenses -63 -94 +12.3% Net Profit 2,836 2,041 +30.7% ETR 27.7% 29.9% -221
Slide 20: FOCF delivery vs 2021
FOCF delivery vs 2021 743 1,277 421 €m 218 €m 2,514 2,409 FY 2021 Cash flow from Working capital Capex 2 Interest, dividend FY 2022 FOCF operations1 & income tax FOCF 1. Cash flow from operations before changes in working capital and after provisions and post-retirement obligations 2. Cash flow (use
Slide 21: Pricing & Gross Savings offset the deep impact from inflation
Pricing & Gross Savings offset the deep impact from inflation Operating Profit (Beia) Operating Profit (Beia) ’22 vs ’19 Indicative change +0.5bn +0.5bn €bn €bn c.4.3 Price Mix Inflation and c.5.0 4.5 transactional FX 4.0 3.4 2.4 c.1.7 Gross Savings Re-investments1 c.0.5 2019 2020 2021 2022 1. Mainl
Slide 22: Outlook 2023
Outlook 2023 EverGreen strategy on-track. Further progress expected towards driving growth with commensurate investments. Stable to modestly growing volume, increasing in developing markets and declining in Europe. Input costs increase in the high teens per hectoliter and significantly higher energy
Slide 23: Other elements to highlight for 2023
Other elements to highlight for 2023 Net profit growth in line or Consolidation of Distell Transfer of ownership below operating profit growth & Namibian Breweries in Russia Average effective interest rate Hearings by Competition We aim to reach an agreement in (beia) of around 3.1% (2022: 2.8
Slide 24: On-track to deliver superior, balanced long-term value
On-track to deliver superior, balanced long-term value Superior & balanced growth Step up investment Capex <9% net revenue (beia) Growth Improve capital efficiency Capital Profitability efficiency €400 Million p.a. Gross Sustainability & Savings Responsibility Net zero emissions in produ
Slide 25: Q&A
Q&A 25