Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2016
26 slides from Heineken Nv's conference presentation, May 11, 2016
Slide 1: HEINEKEN Asia Pacific: Delivering strong growth momentum
HEINEKEN FINANCIAL MARKETS CONFERENCE 2016 HO CHI MINH CITY, VIETNAM HEINEKEN Asia Pacific Delivering strong growth momentum Frans Eusman Regional President Asia Pacific Ho Chi Minh City, Vietnam | May 11-12, 2016 | Heineken NV
Slide 2: Agenda
Agenda HEINEKEN Asia Pacific — delivering strong growth momentum Asia Pacific: Important region for HEINEKEN Asia Pacific: Attractive and growing markets HEINEKEN’s brand priorities in Asia Pacific HEINEKEN ideally positioned to capture opportunities 1
Slide 3: Integration of Asia Pacific Breweries in 2012 paved the way for strong growth
Integration of Asia Pacific Breweries in 2012 paved the way for strong growth Connect APB & Stabilise base Build a winning Achieve potential Support mindset HEINEKEN business team synergies shift Strong business performance Increasing significance Establishing a diversified Delivering Strong Growth
Slide 4: The region is delivering strong top and bottom line growth
The region is delivering strong top and bottom line growth… Solid volume growth Sustained revenue growth Revenue, €m Volume, mhl 20.3 2,483 18.0 18.7 2,088 2,037 2013 2014 2015 2013 2014 2015 Strong profit momentum1 Above average operating profit margin (beia) Operating profit margin EBIT (beia), €m
Slide 5: And increasing importance to HEINEKEN group
…And increasing importance to HEINEKEN group The Asia Pacific region’s contribution to HEINEKEN’s operating profit (beia) is growing ASIA PACIFIC 18% 21% WE 27% Europe 35% AME AMEE CEE 21% 17% 10% Americas Americas 24% 27% Consolidated Operating profit (beia) 2013 Consolidated Operating profit (beia
Slide 6: Agenda
Agenda HEINEKEN Asia Pacific — delivering strong growth momentum Asia Pacific: Important region for HEINEKEN Asia Pacific: Attractive and growing markets HEINEKEN’s brand priorities in Asia Pacific HEINEKEN ideally positioned to capture opportunities 5
Slide 7: Strong fundamentals underpin future growth potential
Strong fundamentals underpin future growth potential Large young population Growing urbanization Increasing affluence % Population under the age of 35 (2015) % Urban population % of world middle class population 74% 73% 73% 24% 36% 60% 58% 54% 55% 22% 40% 36% 54% 28% EU Asia Pacific1 EU Asia Pacific
Slide 8: Significant headroom to grow per capita consumption
Significant headroom to grow per capita consumption Per Capita Beer Consumption 2015 (litres per annum) 74.3 66.8 EU average 69.9 48.9 45.0 41.4 41.4 40.0 38.6 27.0 23.2 Asia Pacific 20.9 average 29.4 11.3 10.9 5.8 2.0 0.7 Australia New South Japan Vietnam Laos China Cambodia Thailand Taiwan Singapo
Slide 9: Combined with a compelling premium segment opportunity
Combined with a compelling premium segment opportunity Premium segment growth in Asia Pacific Premium segment share low in large markets, significantly higher than the rest of world offering significant upside for growth EU Premium segment volume CAGR (2011-15) 50% Premium segment share of total bee
Slide 10: Agenda
Agenda HEINEKEN Asia Pacific — delivering strong growth momentum Asia Pacific: Important region for HEINEKEN Asia Pacific: Attractive and growing markets HEINEKEN’s brand priorities in Asia Pacific HEINEKEN ideally positioned to capture opportunities 9
Slide 11: Win in Premium, led by Heineken
Win in Premium, led by Heineken ® Leverage Heineken® global platforms & make them locally relevant in Asia Pacific Execute Heineken® global and regional platforms at scale 7th consecutive global partnership with “James Bond” activated by 19 markets in Asia Pacific Champions League Trophy Tour in
Slide 12: Win in Premium, led by Heineken: accelerate innovation
Win in Premium, led by Heineken ® Accelerate innovation to attract new consumers & open up new occasions Innovation is a priority for the Heineken® brand globally and in Asia Pacific Launched the SUB in China - Premiumise “At home” beer occasions and open up a new ecommerce route to market Heine
Slide 13: Win in Premium, led by Heineken: grow penetration
Win in Premium, led by Heineken ® Grow Heineken® penetration by maximising brand presence in key markets Heineken® has a strong brand presence across the Asia Pacific region Continue to focus on Route to Market, Channel Strategy and ensuring excellent outlet execution Pack and price strategy by
Slide 14: Tiger: The iconic Asian beer brand
Tiger: The iconic Asian beer brand Brewed with pride since Beer with bite 1932 World Award winning with a variety of Acclaimed Beer external awards Win in Establish tiger as the leading Premium Asian beer in the world 13
Slide 15: Tiger: The entrepreneurial spirit
Tiger: The entrepreneurial spirit • Tiger embodies the entrepreneurial spirit that makes Asia cool today • Asia is no longer the factory of the world. Asia is a center of innovation, technology and creativity • Young millennials globally aspire to the dynamism of modern Asia 14
Slide 16: Strong in its heartland and also standing out internationally
Strong in its heartland and also standing out internationally Tiger Beer Volume Growth (YoY) Top 10 International beer brands* 24% Rank Brand Growth+ 1 Heineken® 3% 10% 2 Budweiser 3% 3 Corona 5% 4 Carlsberg 3% 5 Tuborg 7% 6 Stella Artois 1% 7 Guinness -3% 8 Amstel 2% 9 Tiger 24% 10 Modelo 19% 2013
Slide 17: Tiger extends portfolio as complementary to Heineken
Tiger extends portfolio as complementary to Heineken ® Modern Premium Recruiting Young Millennials Typical Price Index below 140* Younger consumer group than Heineken® Affordable premium yet highly aspirational Value and purpose over price and status Own brand identity, no longer just a
Slide 18: Tiger brand further excites consumers through innovation
Tiger brand further excites consumers through innovation Reinforcing Asian origin Tiger Black Amber lager brewed with black rice Tiger Crystal Classic light lager brewed at -1°C Tiger White Asia’s wheat beer — launched in Malaysia COASTER — the world’s first crowd sourced movie made fr
Slide 19: Agenda
Agenda HEINEKEN Asia Pacific — delivering strong growth momentum Asia Pacific: Important region for HEINEKEN Asia Pacific: Attractive and growing markets HEINEKEN’s brand priorities in Asia Pacific HEINEKEN ideally positioned to capture opportunities 18
Slide 20: HEINEKEN has a unique footprint in the region
HEINEKEN has a unique footprint in the region Best placed to access regional growth opportunities Mongolia #2 HEINEKEN HAS LEADERSHIP IN THE LARGEST NUMBER OF MARKETS 1 Laos #2 Number of #1 and #2 market positions in Asia-Pacific (by volume) China China #2 #2 in Super Premium Thailand HEINEKEN 15 #1
Slide 21: Winning brand portfolio, well positioned to capture premium opportunity
Winning brand portfolio, well positioned to capture premium opportunity Premium is driving profitability HEINEKEN Asia Pacific: Group beer volume and EBIT (beia) by segment (2015) China Vietnam Singapore Indonesia Cambodia India Malaysia 1 39% Premium 62% 61% Mainstream 38% Volume EBIT (beia) Mainst
Slide 22: Key markets: China and India
3 breweries Key markets: compare & contrast 21 own breweries 8 contract breweries CHINA: premium focus INDIA: investing to drive higher profitability for the long-term Market characteristics Market characteristics Beer PCC is 40L Beer PCC is slightly below 2L 2015 beer market size 550mhl 201
Slide 23: Key markets: Indonesia and Malaysia
Key markets: compare & contrast 2 breweries & 1 non alcoholic beverage plant 1 brewery INDONESIA: market MALAYSIA: Consolidating evolving post regulation strong market position Market characteristics Market characteristics Beer PCC 0.7L Beer PCC 5.8L 2015 beer market size 1.8mhl 2015 beer ma
Slide 24: Key markets: Cambodia and Vietnam
Key markets: compare & contrast 1 brewery 5 breweries CAMBODIA: Growing market VIETNAM: Attractive market with an with strong fundamentals exciting premiumisation opportunity Market characteristics Market characteristics Beer PCC 38.6L Beer PCC 41.4L 2015 beer market size 6.1mhl 2015 beer ma
Slide 25: Vietnam: HEINEKEN structure
Vietnam: HEINEKEN structure Two operating companies and five breweries Hanoi 100% 100% Brewery Da Nang 100% Brewery Quang Nam 100% Brewery 60% Hoc Mon 100% 40% Brewery Tien Giang 100% Brewery 24 SATRA: Saigon Trading Group is a State Owned Enterprise with 70 subsidiaries and JVs headquartered in Ho
Slide 26: Summary
Summary Asia Pacific is an important region for HEINEKEN which has seen impressive growth post the APB transaction. Long history & expertise in the region an advantage The region benefits from strong fundamentals which will drive future beer market growth HEINEKEN’s brand portfolio provides an
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