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Heineken Nv — HEINEKEN Financial Markets Conference 2016

21 slides from Heineken Nv's conference presentation, May 11, 2016

  1. Slide 1: HEINEKEN: Delivering on strategy

    HEINEKEN FINANCIAL MARKETS CONFERENCE 2016 HO CHI MINH CITY, VIETNAM HEINEKEN: Delivering on strategy Jean-François van Boxmeer Chairman of the Executive Board / CEO Ho Chi Minh City, Vietnam | May 11-12, 2016 | Heineken NV

  2. Slide 2: Agenda

    Agenda HEINEKEN: Delivering on strategy Update on evolution at HEINEKEN Six business priorities Strategy delivering results 1

  3. Slide 3: Update on evolution at HEINEKEN

    Update on evolution at HEINEKEN Key indicators demonstrating further progress  Commitment to external financial target  Medium term margin expansion guidance of around 40bps annually  Enhanced organisational skill set with external talent  New Chief Human Resources Officer (May 2014)  New Execu

  4. Slide 4: M&A - bolt on transactions to add value

    M&A - bolt on transactions to add value Current Company Strategic deals improving footprint shareholding Completion date percentage Partnership with Lagunitas, strong US position in the fast Lagunitas Brewing growing IPA craft segment. Opportunity to expand through 50% 15 October 2015 Company, US HE

  5. Slide 5: Agenda

    Agenda HEINEKEN: Delivering on strategy Update on evolution at HEINEKEN Six business priorities Strategy delivering results 4

  6. Slide 6: Six business priorities

    Six business priorities 1 4 Win in premium led Be commercially assertive by Heineken® brand 2 5 Shape the Cider category Drive End2End productivity 3 6 Lead by cool marketing Brewing a Better World and innovation 5

  7. Slide 7: Win in premium led by Heineken

    Win in premium led by Heineken ® Heineken® the leading International premium Premium Local brands: international brand brands powerbrands premium extensions Heineken®  In +170 markets  The only truly international premium brand Birra Moretti Le Regionali  Global roll out  14% of HEINEKEN volume

  8. Slide 8: Complemented by successful brand portfolios

    Complemented by successful brand portfolios Established local and regional brands to drive scale and premiumisation Mexico Nigeria Russia Poland UK USA Vietnam France Brazil Indonesia Heineken® Heineken® Desperados Heineken® Heineken® Heineken® Desperados Heineken® Amstel Amstel Light Heineken® INTE

  9. Slide 9: Shape the Cider category

    Shape the Cider category Drive the Cider category and Capturing new Consumers Full Cider maximise the cider opportunity through Cider brand portfolio  Category expected to growth 2x level of beer 2015-2020 with 4% CAGR  Opportunity to leverage skill set as global market 26%* 51%* leader in Cider,

  10. Slide 10: Lead by Cool marketing

    Lead by Cool marketing Consumer-inspired, customer-oriented and brand-led Brand building Award-winning Sporting events, investments global campaigns music & film festivals Marketing & Selling (M&S) Spend (€ billion) 3.0 13.4% 12.6% 12.7% 2.5 12.2% 12.8% 12.4% 2.0 11.7% 11.3% 1.5 1.0 0.5 0.0 2008 200

  11. Slide 11: ...and Innovation

    ...and Innovation Innovation rate1 Seizing the low/no Improving draught 9.2% alcohol opportunity 7.7% 5.9% 5.3% 4.1% 2011 2012 2013 2014 2015 Innovation revenue Satisfying the need Leading innovation in Cider €1.9bn for craft & variety 28% CAGR €0.7bn 2011 2015 1 The innovation rate is calculated as

  12. Slide 12: Campaigns strengthened by leading capabilities in social and digital media

    Campaigns strengthened by leading capabilities in social and digital media Digital transformation Engaging storytelling content and #1 on  Digital media investment more than connecting global campaigns facebook doubled between 2012 and 2015 20.8M Heineken®  Significant increase in investment with

  13. Slide 13: Be commercially assertive: EOE

    Be commercially assertive: EOE To win in the point of sale on a daily basis Based on 8 Sales Force Technology Execution Principles  Empowering the Sales 1. Leadership Representatives to focus on 2. Alignment Excellent Outlet Execution 3. 100% data  Providing one global way of working 4. Focus & Si

  14. Slide 14: Drive End2End productivity

    Drive End2End productivity  Leveraging global scale to deliver increased efficiencies  New financial shared service centres: Mexico, China, Singapore and Brazil  Global procurement delivering efficiencies:  63 countries supported  2,700 procurement led cost reduction projects  Delivering trans

  15. Slide 15: Brewing a Better World

    Brewing a Better World Protecting Advocate Responsible Sourcing Sustainably Consumption Water Resources 2020 Target 2020 Target 2020 Target Specific water Reduce to 3.5 hl/hl for group Local sourcing 60% of raw Industry Deliver global industry consumption average and to 3.3 hl/hl for in Africa mater

  16. Slide 16: Agenda

    Agenda HEINEKEN: Delivering on strategy Update on evolution at HEINEKEN Six business priorities Strategy delivering results 15

  17. Slide 17: Delivering margin expansion

    Delivering margin expansion Commitment to medium term margin guidance c.40bps c.40bps 23bps In 2015 margin expansion 90bps 60bps 16.2% 16.5% negatively impacted by 23bps 40bps 15.3% from the disposal of EMPAQUE 14.7% 14.3% Year on year margin expansion improvement of around 40 bps reiterated for bot

  18. Slide 18: Deliberately stepping up investment for future growth

    Deliberately stepping up investment for future growth  Investing in capex ahead of the curve focusing on Increasing investments high growth markets in developing markets  Over 2/3 of capex directed to developing markets Capex1 as % of revenue (€ million)  Capex guidance for 2016 is for this to be

  19. Slide 19: HEINEKEN strategy to create value

    HEINEKEN strategy to create value Revenue & Market Share Growth  Focus on premium segment to drive top line growth and market share Return on Sales  Commitment to medium term margin guidance Revenue & Market Share  Focus on driving costs and efficiencies throughout the business Growth RONA  Focu

  20. Slide 20: Summary

    Summary  Recent years have shown further positive evolution at HEINEKEN  The company has six clear business priorities to focus on and drive future growth  HEINEKEN strategy is working and delivering positive results  In 2016 there is a deliberate step up in capital investment for future growth

  21. Slide 21: Financial Markets Conference 2016 Day 1 and Day 2 programme

    HEINEKEN FINANCIAL MARKETS CONFERENCE 2016 HO CHI MINH CITY, VIETNAM DAY 1 DAY 2 DELIVERING STRONG GROWTH MOMENTUM DIGITAL MARKETING IN VIETNAM Frans Eusman, President Asia Pacific André Koo, Marketing Manager Heineken®, Vietnam Brewery Ltd WINNING IN VIETNAM! TRANSFORMING SUPPLY CHAIN & SUSTAINABIL

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