Slide 1: 2016 Full Year Earnings Release HEINEKEN N.V.
2016 FULL YEAR EARNINGS RELEASE HEINEKEN N.V. Jean-François van Boxmeer, CEO & Laurence Debroux, CFO AMSTERDAM, 15 FEBRUARY 2017 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: 2016FY Key Highlights
2016FY Key Highlights Organic revenue +4.8% with revenue per hectolitre up 2.2%1 Consolidated beer volume +3.0% with growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe Heineken® volume in premium segment +3.7% Operating profit (beia) +
Slide 4: Regional Review
Regional Review 2016FY Organic Growth % AFRICA, MIDDLE EAST & HEINEKEN NV AMERICAS ASIA PACIFIC EUROPE EASTERN EUROPE Consolidated beer volume 3.0 -1.3 3.7 17.9 0.7 Revenue per hl 2.21 5.1 3.3 -3.7 1.41 Revenue 4.81 3.5 6.9 13.1 1.91 Operating profit (beia) 9.9 -21.2 23.5 26.5 7.1 1 Excluding an acc
Slide 5: Heineken volume in premium segment +3.7%
Heineken volume in premium segment +3.7% ® Heineken® volume growth accelerated in 2H16 Growth across all regions Double digit growth in Brazil, South Africa, Mexico, the UK, and Romania Weaker volume in Russia, the US, Thailand and Greece UEFA Champions League sponsorship extended until 20
Slide 6: Innovation Contributed €2.2bn of Revenue
Innovation Contributed €2.2bn of Revenue Innovation Rate of 10.6% Innovation rate1 Leading innovation in Cider Seizing the low/no alcohol opportunity 4.8mhl2 12.3mhl2 9.2% 10.6% 7.7% 5.3% 5.9% 4.1% 2011 2012 2013 2014 2015 2016 Innovation revenue Satisfying the need Innovating in draught for craft &
Slide 7: Acquisition of Brasil Kirin
Acquisition of Brasil Kirin Acquisition announced on 13 February 2017 The total consideration to be paid to Kirin for the shares is EUR 664 million, corresponding to an estimated enterprise value of EUR 1,025 million for HEINEKEN Compelling strategic rationale: The transaction consolidates H
Slide 8: Proposed Acquisition of Punch A
Proposed Acquisition of Punch A 15 December 2016 - Vine Acquisitions Limited (Vine) recommended cash offer for Punch Taverns plc. HEINEKEN UK back to back deal with Vine to acquire Punch Securitisation A (Punch A) c.1,900 pubs 10 February 2017 - Punch shareholders voted in favour of the Scheme a
Slide 9: Proposed Acquisition of Punch A
Proposed Acquisition of Punch A HEINEKEN already owns 1,049 leased and tenanted pubs through Star Pubs & Bars (Star) Star generates an attractive return and is strategically important to HEINEKEN UK Compelling strategic rationale to enlarge existing pubs business with a complementary estate to
Slide 10: Financial Overview
Financial Overview Key Financials €m unless otherwise stated 2016FY 2015FY Total Change (%) Organic Change (%) Revenue 20,792 20,511 1.4 4.81 Operating profit (beia) 3,540 3,381 4.7 9.9 Operating profit (beia) margin 17.0% 16.5% 54bps1 Net profit (beia) 2,098 2,048 2.5 8.5 Net profit 1,540 1,892 -18
Slide 11: Revenue: +4.8% Organic Growth
Revenue: +4.8% Organic Growth Organic growth +4.8% +2.2% +2.2% €m €m +2.6% -5.6% 20,511 20,792 2015FY Revenue Consolidation impact Currency translation Total volume Rev/hl 2016FY Revenue 11
Slide 12: Operating Profit (beia): +9.9% Organic Growth
Operating Profit (beia): +9.9% Organic Growth +9.9% €m €m +1.2% -6.4% 3,381 3,540 2015FY Operating profit (beia) Consolidation impact Currency translation Organic growth 2016FY Operating profit (beia) 12
Slide 13: Diluted EPS (beia) €3.68, +2.9%
Diluted EPS (beia) €3.68, +2.9% +2.9% +€0.31 €3.68 €3.57 €0.00 +€0.02 -€0.22 2015FY Diluted EPS Consolidation impact Currency translation Share buyback Organic growth 2016FY Diluted EPS (beia) (beia) 13
Slide 14: Free Operating Cash Flow of €1,773 million
Free Operating Cash Flow of €1,773 million Capital expenditure1 as % of revenue €m unless otherwise stated 2016FY 2015FY vs. LY (€ million) Cash flow from operations 4,713 4,280 433 (before change in working capital) 2,000 8.5% 8.0% Change in working capital 80 371 -291 1,600 7.8% 7.1% Capital expen
Slide 15: Full Year Outlook
Full Year Outlook Economic conditions are expected to remain volatile and we have assumed a negative impact from currency comparable to 2016. We expect further organic revenue and profit growth. Excluding major unforeseen macro economic and political developments as well as the impact of the p
Slide 16: 2016 Full Year Earnings Release HEINEKEN N.V. Appendix
2016 FULL YEAR EARNINGS RELEASE HEINEKEN N.V Appendix 16
Slide 17: Africa, Middle East & Eastern Europe
Africa, Middle East & Eastern Europe Tough trading conditions impacting performance Mhl/€m 2016FY 2015FY Total Change (%) Organic Change (%) Revenue 3,203 3,263 -1.8 3.5 Revenue/hl (in €) 71 76 -7.0 5.1 Operating profit (beia) 376 579 -35.1 -21.2 Operating profit (beia) margin 11.7% 17.7% -600bps To
Slide 18: Americas
Americas Strong performance driven by Mexico Mhl/€m 2016FY 2015FY Total Change (%) Organic Change (%) Revenue 5,203 5,159 0.9 6.9 Revenue/hl (in €) 87 90 -3.3 3.3 Operating profit (beia) 1,021 904 13.1 23.5 Operating profit (beia) margin 19.6% 17.5% 210bps Total volume 60.0 57.5 4.4 3.4 of which: 58
Slide 19: Asia Pacific
Asia Pacific Excellent performance driven by Vietnam, Cambodia and Indonesia Mhl/€m 2016FY 2015FY Total Change (%) Organic Change (%) Revenue 2,894 2,483 16.5 13.1 Revenue/hl (in €) 116 122 -4.9 -3.7 Operating profit (beia) 927 702 32.1 26.5 Operating profit (beia) margin 32.0% 28.3% 370bps Total vo
Slide 20: Europe
Europe Successful revenue management with focus on innovation and premiumisation Mhl/€m 2016FY 2015FY Total Change (%) Organic Change (%) Revenue 10,112 10,227 -1.1 1.91 Revenue/hl (in €) 97 100 -3.3 1.41 Operating profit (beia) 1,261 1,196 5.4 7.1 Operating profit (beia) margin 12.5% 11.7% 80bps1 T
Slide 21: 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 2017F 518 443 1.13 2017F* 11 2018F 496 1