Slide 1: 2016 Half Year Earnings Release HEINEKEN N.V.
2016 HALF YEAR EARNINGS RELEASE HEINEKEN N.V. Jean-François van Boxmeer, CEO & Laurence Debroux, CFO AMSTERDAM, 1 AUGUST 2016 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: 2016HY Key Highlights
2016HY Key Highlights Organic revenue +4.7% with revenue per hectolitre up +0.8% Consolidated beer volume +4.1% with growth in Americas, Asia Pacific and Europe offsetting weaker volume in Africa Middle East & Eastern Europe Heineken® volume in premium segment +2.6% Operating profit (beia) +
Slide 4: Regional Review
Regional Review 2016HY Organic Growth % AFRICA MIDDLE EAST & HEINEKEN NV AMERICAS ASIA PACIFIC EUROPE EASTERN EUROPE Consolidated beer volume 4.1 -1.2 4.7 19.4 2.3 Revenue per hl 0.8 2.0 2.6 -6.8 0.8 Revenue 4.7 1.0 7.3 11.6 2.4 Operating profit (beia) 12.6 -14.3 20.0 30.9 15.7 4
Slide 5: Heineken® volume in premium segment +2.6%
Heineken® volume in premium segment +2.6% All regions growing apart from Africa Middle East & Eastern Europe impacted by affordability trends and weaker tourism Double digit growth in Brazil, the UK, Mexico, New Zealand, Cambodia and Romania Weaker volume in Russia, Vietnam and Algeria Succe
Slide 6: Innovation Contributed €1.1bn of Revenue
Innovation Contributed €1.1bn of Revenue Innovation Rate of 10.5% Innovation rate1 Leading innovation in Cider Seizing the low/no alcohol opportunity 10.5% 8.6% 7.4% 5.3% 5.9% 4.1% 11HY 12HY 13HY 14HY 15HY 16HY Innovation revenue Satisfying the need Innovating in draught for craft & variety €1.1bn 2
Slide 7: Financial Overview
Financial Overview Key Financials €m unless otherwise stated 2016HY 2015HY Total Change (%) Organic Change (%) Revenue 10,094 9,896 2.0 4.7 Operating profit (beia) 1,705 1,549 10.1 12.6 Operating profit (beia) margin 16.9% 15.7% 124bps Net profit (beia) 977 915 6.8 11.2 Net profit 586 1,144 -48.8 Di
Slide 8: Revenue: +4.7% Organic Growth
Revenue: +4.7% Organic Growth Organic growth +4.7%* 2.8% €m +3.8% 0.8% €m -5.4% 9,896 10,094 HY15 Revenue Consolidation impact Currency translation Total volume Rev/hl HY16 Revenue *Note: due to rounding, this table does not cast exactly 8
Slide 9: Operating Profit (beia): +12.6% Organic Growth
Operating Profit (beia): +12.6% Organic Growth +12.6% €m 3.4% €m -5.9% 1,705 1,549 HY15 Operating profit (beia) Consolidation impact Currency translation Organic growth HY16 Operating profit (beia) 9
Slide 10: Diluted EPS (beia) €1.71, +7.8%
Diluted EPS (beia) €1.71, +7.8% +7.8% +€0.18 €1.71 +€0.03 €1.59 +€0.01 -€0.10 HY15 Diluted EPS (beia) Consolidation impact Currency translation Share buyback Organic growth HY16 Diluted EPS (beia) 10
Slide 11: Free Operating Cash Flow of €541 million
Free Operating Cash Flow of €541 million Capital expenditure1 as % of revenue €m unless otherwise stated 2016HY 2015HY vs. LY (€ million) Cash flow from operations 2,258 1,973 285 (before change in working capital) 2,000 Change in working capital -502 -441 -61 8.0% 1,600 7.8% 7.1% Capital expenditur
Slide 12: Nigeria – Impact of Naira Devaluation
Nigeria – Impact of Naira Devaluation Flexible exchange rate regime introduced 20 June 2016 Official rate 17 June Post Devaluation Current Rate* US/Naira 197 280 316 Euro/Naira 222 317 347 H1 impact In line with IFRS, transactions recorded at official fixed rate until 20 June 2016 Accumulati
Slide 13: Full Year Outlook
Full Year Outlook For 2016 HEINEKEN expects to deliver further organic revenue and profit growth, and operating profit (beia) margin expansion in line with medium term margin guidance of around 40bps. This takes into account the tough comparatives and increasing currency headwinds in H2 Average
Slide 14: Appendix
2016 HALF YEAR EARNINGS RELEASE HEINEKEN N.V Appendix 14
Slide 15: Africa Middle East & Eastern Europe
Africa Middle East & Eastern Europe Tough trading conditions impacting performance Mhl/€m 2016HY 2015HY Total Change (%) Organic Change (%) Revenue 1,649 1,629 1.0 1.0 Revenue/hl (in €) 73 77 -4.4 2.0 Operating profit (beia) 267 331 -19.1 -14.3 Operating profit (beia) margin 16.2% 20.3% -410bps Tota
Slide 16: Americas
Americas Strong performance driven by Mexico and US Mhl/€m 2016HY 2015HY Total Change (%) Organic Change (%) Revenue 2,485 2,522 -1.5 7.3 Revenue/hl (in €) 86 93 -6.7 2.6 Operating profit (beia) 458 413 10.8 20.0 Operating profit (beia) margin 18.4% 16.4% 200bps Total volume 28.8 27.2 5.6 4.5 of whi
Slide 17: Asia Pacific
Asia Pacific Excellent performance driven by Vietnam, Cambodia and Indonesia Mhl/€m 2016HY 2015HY Total Change (%) Organic Change (%) Revenue 1,345 1,172 14.7 11.6 Revenue/hl (in €) 114 126 -9.5 -6.8 Operating profit (beia) 419 302 38.9 30.9 Operating profit (beia) margin 31.2% 25.8% 540bps Total vo
Slide 18: Europe
Europe Strong profit momentum Mhl/€m 2016HY 2015HY Total Change (%) Organic Change (%) Revenue 4,933 4,879 1.1 2.4 Revenue/hl (in €) 97 100 -2.9 0.8 Operating profit (beia) 581 495 17.2 15.7 Operating profit (beia) margin 11.8% 10.1% 170bps Total volume 47.3 45.1 4.8 2.3 of which: 38.3 36.4 5.1 2.3
Slide 19: US Dollar Hedging
US Dollar Hedging Position Impact versus previous year Net inflow Hedged Year In USD mln Part** Hedged Rate*** Year Net Profit 2013A 556 556 1.31 2013A 11 2014A 553 553 1.31 2014A 0 2015A 567 567 1.30 2015A 4 2016F 531 506 1.16 2016F* 38 2017F 525 347 1.13 2017F* 12 * Impact on open positions calcul