Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2013
21 slides from Heineken Nv's conference presentation, Dec 5, 2013
Slide 1: Heineken: Focused on Delivering Shareholder Value
HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY HEINEKEN: Focused on Delivering Shareholder Value JEAN-FRANÇOIS VAN BOXMEER Chairman of the Executive Board/ CEO Mexico City | December 5-6, 2013 | Heineken NV
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: Heineken: Key Pillars for Value Creation
HEINEKEN: KEY PILLARS FOR VALUE CREATION 1 INCREASED EXPOSURE TO DEVELOPING MARKETS 2 GROW Heineken® DISPROPORTIONATELY Revenue & 3 SUSTAINED INVESTMENT IN BRANDS & INNOVATION Market Share Growth 4 EXCELLENCE IN SALES EXECUTION 5 VALUE GROWTH FOCUS IN EUROPE HEINEKEN Golden Triangle 6 DRIVE COST EFF
Slide 4: A Growing Developing Market Footprint
1 A GROWING DEVELOPING MARKET FOOTPRINT A BALANCED GEOGRAPHIC 50% OF GROUP A WELL DIVERSIFIED FOOTPRINT OPERATING PROFIT IN EXPOSURE TO GROUP BEER VOLUME BY REGION (2012) DEVELOPING MARKETS DEVELOPING MARKETS WE AME HY2013: % of total Group HY2013: Group beer volume split 13% 22% Latin Americas Amer
Slide 5: Access to Beer Markets Offering Exciting Growth
1 ACCESS TO BEER MARKETS OFFERING EXCITING GROWTH BEER MARKET GROWTH: Markets alongside 2012-2017F represent over 80% of BROAD MARKET (MHL) 111.1 LEADERSHIP global beer market growth through to 2017 IPS LEADERSHIP 18.4 Million hectolitres 9.1 Incremental volume 4.9 4.2 opportunity for HEINEKEN of ap
Slide 6: Africa: Strong Positions in High Growth Markets
1 AFRICA: STRONG POSITIONS IN HIGH GROWTH MARKETS Positive long-term #1 position GROWING BEER MARKETS fundamentals to drive #2 position Beer market growth beer market growth (CAGR2012-17F) TUNISIA LEBANON 9.8% ALGERIA ISRAEL 1 8.3% 7.4% GHANA 1 U.A.E. 1 6.2% 6.1% SIERRA LEONE EGYPT 4.5% 3.8% NIGERIA
Slide 7: Southeast Asia: The Leading Brewer
1 SOUTHEAST ASIA: THE LEADING BREWER BROAD MARKET …WITH DIRECT ACCESS TO LEADERSHIP POSITIONS… REGIONAL IPS OPPORTUNITY Number of markets in Southeast Asia & Attractive IPS growth opportunity in Southeast Pacific Islands with #1 and #2 positions Asia & the Pacific Islands and China 2012 IPS 2017F IP
Slide 8: Americas: A Transformed Presence
1 AMERICAS: A TRANSFORMED PRESENCE Acquisition of FEMSA LEADING MARKET EXPANDED REGIONAL Cerveza increases POSITIONS FOOTPRINT CREATES HEINEKEN’s scale in the Americas SCALE BENEFITS 2009 2012 BREWERIES 5 19 BEER VOLUME MHL 1 18.8 62.8 DIRECT EMPLOYEES 1,800 22,700 SENIOR LEADERS 40 120 HEINEKEN IPS
Slide 9: Heineken: Winning in a Strategic Segment
2 Heineken : WINNING ® IN A STRATEGIC SEGMENT WORLD CLASS Heineken®: OUTPACING MARKETING AND GROWTH IN EMERGING MARKETS INNOVATION (Volume Growth: CAGR 2007 -2012) 17% 18% 15% 16% Beer Market 11% 6% IPS 5% 6% 3% Heineken® Africa & Middle East Asia Pacific Latin America REGIONAL BEER MARKET AND IPS D
Slide 10: Commercial
COMMERCIAL THE SUB HEINEKEN
Slide 11: Complemented by a Premium-Led Product Portfolio
3 COMPLEMENTED BY A PREMIUM-LED PRODUCT PORTFOLIO Sustained brand MARGIN ENHANCING BUILDING STRONG investment driving GLOBAL BRANDS REGIONAL BRANDS brand equity Global Brands Portfolio Indicative price index vs. Mainstream (Mainstream base = 100) Africa Southeast Asia Americas LOCAL BRANDS Mainstrea
Slide 12: Proven Global Innovation Capabilities
3 PROVEN GLOBAL INNOVATION CAPABILITIES Innovation generated INNOVATION €1 billion of revenue in 2012 RATE1 6.0% 2020 Target 5.3% 4.1% DRAUGHT NEW CIDER BEER SYSTEMS FLAVOURS 3.0% 2010 2011 2012 2013HY VARIETY ‘RADLER’ BRAND LINE PACKS BEERS EXTENSIONS 1 From 1 January 2013, the innovation rate is c
Slide 13: Commercials
COMMERCIALS VIDEO HEINEKEN
Slide 14: Driving Excellence in Outlet Execution
4 DRIVING EXCELLENCE IN OUTLET EXECUTION We aim to win TARGETED CHANNEL GLOBAL BRANDS with customers, STRATEGIES ACTIVATION every single day BUILDING BUILDING SALES PARTERSHIPS CAPABILITIES 14
Slide 15: Capitalising on the Value Opportunity in Europe
5 CAPITALISING ON THE VALUE OPPORTUNITY IN EUROPE FOCUS ON DRIVING FURTHER OPTIMISING PROFITABLE GROWTH EUROPEAN COST STRUCTURE OUTLET INNOVATION Global Business Services: EXECUTION & HEINEKEN Global Shared CAPABILITIES Services (HGSS) BRAND HEINEKEN Global AND procurement (HGP) PORTFOLIO MANAGE
Slide 16: Driving Cost Efficiencies
6 DRIVING COST EFFICIENCIES REALISED COST SAVINGS OF TCM2: TARGETED SAVINGS €1.4BN SINCE 2006 OF €625M FROM 2012-2014 TOTAL COST SAVINGS: € M H1 2013 TCM2 FUNCTIONAL SPLIT 280 Support 17% Supply Chain 191 196 Wholesale 7% 60% 178 164 155 139 Commerce 114 16% H1 2013 TCM2 REGIONAL SPLIT Asia Pacific
Slide 17: Capex Focused on Growth
7 CAPEX FOCUSED ON GROWTH Strategic decisions CAPITAL INVESTMENT SELECTIVE geared towards driving TO DRIVE GROWTH DIVESTMENTS improved returns Over 2/3 of investments in 2012 in developing markets Waverley TBS – Wholesaler (Jun-10) 1.600 9% 7.7% 1.400 8% 1.200 6.4% 7% 1.000 6% Pago (Feb-13) 4.6% 4
Slide 18: Enhancing Profitability of Recently Acquired Businesses
7 ENHANCING PROFITABILITY OF RECENTLY ACQUIRED BUSINESSES Significant 2008 SCOTTISH 2010 FEMSA 2012 ASIA PACIFIC margin expansion & NEWCASTLE1 CERVEZA2 BREWERIES3 Operating profit (beia) Operating profit (beia) Operating profit (beia) € million € million € million CAGR 2008-13F CAGR 2010-13F +16% +1
Slide 19: Sustainability Drives Value
8 SUSTAINABILITY DRIVES VALUE Brewing a better future: From barley to bar 19
Slide 20: Clear 2020 Sustainability Targets
8 CLEAR 2020 SUSTAINABILTY TARGETS PROTECTING SOURCING REDUCING ADVOCATING WATER SUSTAINABLY CO2 EMISSIONS RESPONSIBLE RESOURCES Deliver 60% of raw materials in Africa via local sourcing In the brewery by 40% CONSUMPTION Reducing specific water From fridges by 50% Delivering on industry co
Slide 21: Heineken Financial Markets Conference 2013 Mexico City
HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY DAY 1 DAY 2 HEINEKEN AMERICAS: POSITIONED PASSION FOR SALES EXCELLENCE FOR GROWTH Josep Ferrer, Cuahtémoc Moctezuma Stefan Orlowski, HEINEKEN Americas HEINEKEN AMERICAS: WINNING IN MEXICO! WINNING WITH BRANDS Marc Busain, Cuahtémoc Moctezuma Pet
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