Slide 1: 2017 Full Year Earnings Release HEINEKEN N.V.
2017 FULL YEAR EARNINGS RELEASE HEINEKEN N.V. Jean-François van Boxmeer, CEO & Laurence Debroux, CFO AMSTERDAM, 12 FEBRUARY 2018 1
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: 2017 FY Key Highlights
2017 FY Key Highlights Organic revenue (beia) +5.0% with revenue (beia) per hectolitre +2.1% Consolidated beer volume +3.0% with growth in all regions Heineken® volume +4.5% organically Operating profit (beia) organic growth +9.3% and operating margin (beia) expansion of +40bps1 Net profit
Slide 4: Regional Review
Regional Review 2017 FY Organic Growth % AFRICA, MIDDLE EAST HEINEKEN NV AMERICAS ASIA PACIFIC EUROPE & EASTERN EUROPE Consolidated beer 3.0 4.8 3.3 8.9 0.2 volume Revenue (beia) per hl 2.1 9.0 1.7 -2.5 1.3 Revenue (beia) 5.0 13.5 6.0 6.2 1.4 Operating profit 9.3 33.8 11.7 9.5 7.7 (beia) 4
Slide 5: Heineken growth +4.5%
Heineken growth +4.5% ® Growth across all regions apart from Asia Pacific Strong double digit growth in Brazil, South Africa, Russia, Mexico and Romania Great contribution from innovation with Heineken® 0.0 and Heineken® Light/3 Heineken® 0.0 launched in 16 markets, delivering ahead of expec
Slide 6: Strong top line growth
Strong top line growth Developing our international brands Building Craft & Variety Leading Low- and no-alcohol innovations Volume up double digit for Tiger, Lagunitas, Affligem and Mort Double digit growth in Europe driven by Krušovice and Birra Moretti Subite main drivers of double continued
Slide 7: Update on HEINEKEN Brasil
Update on HEINEKEN Brasil HEINEKEN Brasil is well positioned in premium beer 31% Acquisition of Brasil Kirin completed on 31 May 2017 Integration to date very encouraging 20% 21% Operational highlights: 20% 18% 16% Beer volume from existing operations about flat 13% Brasil Kirin beer portf
Slide 8: Brewing a Better World
Brewing a Better World Committed to reduce CO₂ emissions Significant progress on our sustainability agenda: Decreased water consumption in water-stressed areas to 3.2 litres of water per litre of beer (2014: 3.8) 28% of main raw materials came from sustainable sources (2016: 17%) 10% of the
Slide 9: Financial Overview
Financial Overview Key Financials €m unless otherwise stated 2017FY 2016FY Total Change (%) Organic Change (%) Revenue (beia) 21,908 20,792 5.4 5.0 Revenue 21,888 20,792 5.3 Operating profit (beia) 3,759 3,540 6.2 9.3 Operating profit (beia) margin1 17.2% 17.0% 14bps Net profit (beia) 2,247 2,098 7.
Slide 10: Revenue (beia): +5.0% Organic Growth
Revenue (beia): +5.0% Organic Growth Organic growth +5.0% +2.1% €m +4.3% +2.9% €m -3.9% 21,908 20,792 2016FY Revenue (beia) Consolidation impact Currency translation Total volume Rev/hl 2017FY Revenue (beia) 10
Slide 11: Operating Profit (beia): +9.3% Organic Growth
Operating Profit (beia): +9.3% Organic Growth +9.3% €m +2.2% €m -5.3% 3,540 3,759 2016FY Operating profit (beia) Consolidation impact Currency translation Organic growth 2017FY Operating profit (beia) 11
Slide 12: Diluted EPS (beia) €3.94, +7.0%
Diluted EPS (beia) €3.94, +7.0% +7.0% +€0.34 €3.94 €0.05 €3.68 -€0.13 2016FY Diluted EPS (beia) Consolidation impact Currency translation Organic growth 2017FY Diluted EPS (beia) 12
Slide 13: Free Operating Cash Flow of €2,031 million
Free Operating Cash Flow of €2,031 million Capital expenditure1 as % of revenue €m unless otherwise stated 2017FY 2016FY vs. LY (€ million) Cash flow from operations 4,980 4,713 267 (before change in working capital) 2,000 8.5% 7.7% 8.0% Change in working capital 69 80 -11 1,600 7.8% 7.1% Capital ex
Slide 14: Full Year 2018 Outlook
Full Year 2018 Outlook Economic conditions are expected to remain volatile and we have assumed a negative impact from currency comparable to 2017 We expect further organic revenue and profit growth Excluding major unforeseen macro economic and political developments we expect to deliver an ope
Slide 15: Appendix
2017 FULL YEAR EARNINGS RELEASE HEINEKEN N.V. Appendix 15
Slide 16: Africa, Middle East & Eastern Europe
Africa, Middle East & Eastern Europe Robust performance despite continued challenge with affordability and adverse currency Organic Mhl/€m 2017FY 2016FY Total Change (%) Change (%) Revenue (beia) 3,059 3,203 -4.5 13.5 Revenue/hl (in €) 65 71 -7.8 9.0 Operating profit (beia) 388 376 3.3 33.8 Operatin
Slide 17: Americas
Americas Strong performance in most key markets Organic Mhl/€m 2017FY 2016FY Total Change (%) Change (%) Revenue (beia) 6,258 5,203 20.3 6.0 Revenue/hl (in €) 79 87 -9.0 1.7 Operating profit (beia) 1,188 1,021 16.3 11.7 Operating profit (beia) margin 19.0% 19.6% -65bps Total volume 79.0 60.0 31.6 3.
Slide 18: Asia Pacific
Asia Pacific Vietnam and Cambodia driving continued impressive results Organic Mhl/€m 2017FY 2016FY Total Change (%) Change (%) Revenue (beia) 2,996 2,894 3.5 6.2 Revenue/hl (in €) 108 116 -6.9 -2.5 Operating profit (beia) 962 927 3.8 9.5 Operating profit (beia) margin 32.1% 32.0% 9bps Total volume
Slide 19: Europe
Europe Further margin expansion through premiumisation and cost management Organic Mhl/€m 2017FY 2016FY Total Change (%) Change (%) Revenue (beia) 10,237 10,112 1.2 1.4 Revenue/hl (in €) 98 97 0.9 1.3 Operating profit (beia) 1,371 1,261 8.7 7.7 Operating profit (beia) margin 13.4% 12.5% 92bps Total
Slide 20: US Dollar Hedging
US Dollar Hedging Position Impact versus previous year (after tax) Net inflow Hedged Net Profit Year in USD mln Part** Hedged Rate*** Year in EUR mln 2013A 556 556 1.31 2013A 11 2014A 553 553 1.31 2014A 0 2015A 567 567 1.30 2015A 4 2016A 518 518 1.16 2016A 36 2017A 549 549 1.14 2017A 7 2018F 518 435