Heineken Nv · EURONEXT:HEIA
Heineken Nv — Investor Day (November 2019)
43 slides from Heineken Nv's investor day presentation, Nov 7, 2019
Slide 1: Superior top-line growth
What’s Brewing Seminar Superior top-line growth Jan Derck van Karnebeek Amsterdam | November 7, 2019 | Heineken N.V.
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: Jan Derck van Karnebeek, Chief Commercial Officer
Jan Derck Van Karnebeek Chief Commercial Officer 2 What’s Brewing Seminar 2019
Slide 4: A royal HEINEKEN celebration
A royal HEINEKEN celebration 3 What’s Brewing Seminar 2019
Slide 5: Agenda
Agenda • Superior top-line growth • Growth strategy in focus • Conclusion 4 What’s Brewing Seminar 2019
Slide 6: Superior top-line growth
Agenda Superior top-line growth We have the right footprint, strategy and capabilities to keep growing. 5 What’s Brewing Seminar 2019
Slide 7: Strong track record of superior top-line growth
Strong track record of superior top-line growth We strive to deliver revenue growth in the top quartile of the staples universe Revenue organic growth vs previous years (%) 6.1 4.8 5.0 5.5 4.9 4.4 4.2 4.2 4.1 3.9 3.3 3.4 3.0 2.5 2.6 2.7 2.4 2.4 2.1 1.7 1.2 2016 2017 2018 HEINEKEN Other brewers Spiri
Slide 8: Our revenue growth has accelerated
Our revenue growth has accelerated Our increased exposure to developing markets supports organic top-line growth Net revenue Transformational and material bolt-on deals +4.5% +0.9% 2008 2010 2012 €22.5m €19.2m €14.3m 2017 2019 2008 2013 2018 Developed markets Average organic growth Developing market
Slide 9: HEINEKEN is well placed to capture growth
HEINEKEN is well placed to capture growth Developing markets and the premium segment are expected to outgrow the average Global Beer Market outlook Total + c.1% CAGR Major HEINEKEN consumer trends 2/3 of beer volumes from developing markets* Developing markets Developed markets + c.1% CAGR c. 0% CAG
Slide 10: Growth strategy in focus
Agenda Superior top-line growth Growth strategy in focus We pursue five sources of growth and leverage our core capability to replicate success at scale and speed. 9 What’s Brewing Seminar 2019
Slide 11: HEINEKEN's growth model, simplified
HEINEKEN’s growth model, simplified KEY CONSUMER TRENDS: DIGITAL LIVES, HEALTH & WELLNESS, BLURRING BOUNDARIES Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models Do Learn Share Re-apply Mastering global scale and local relevance 10 Wh
Slide 12: Footprint skewed to growth
Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models 11 What’s Brewing Seminar 2019
Slide 13: We are best positioned to capture future growth
We are best positioned to capture future growth Balanced footprint in the right geographies, weighted to growth markets HEINEKEN footprint set to outpace the market average by >100 bps 2.1% 0.9% Beer Market HEINEKEN footprint* @ stable share Operating Companies Joint Ventures/ Associates Licences Ex
Slide 14: Footprint skewed to growth
Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models 13 What’s Brewing Seminar 2019
Slide 15: We are effectively accessing new profit pools
We are effectively accessing new profit pools Expanding our footprint to gain more exposure to organic growth opportunities Examples of new profit pools and partnerships A proven model for new market entry... Kilinto III Ethiopia Kilinto II 2019 China Kilinto I greenfield 2015 Jamaica 2015 Myanmar 2
Slide 16: Footprint skewed to growth
Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models 15 What’s Brewing Seminar 2019
Slide 17: Premium beer continues to grow
Premium beer continues to grow... … also in recessions Segmentation trends 7 Global urbanisation set to continue Premium volumes as % of total beer market 6 25% 5 Population (bn) 20% Brazil 4 15% 10% 3 5% 2 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 0 2005 2010 2015 2020F 2050F 25%
Slide 18: Premium upside in our major growth markets
Premium upside in our major growth markets Premium grows everywhere, and fastest in developing markets Premium volumes as % of total beer market Examples of our major market Aggregation of our Top 20 markets premium opportunities +2.4% +2.8% Mexico UK c.35% c.16% South Africa China Developed Develop
Slide 19: Top premium beer portfolio, led by Heineken
Top premium beer portfolio, led by Heineken ® The most global beer brand flanked by a strong portfolio of international and domestic brands 18
Slide 20: Heineken has headroom for further growth
Heineken has headroom for further growth ® One of the few €5bn revenue consumer brands currently growing at 7% Sub-Saharan Africa Brazil China Leveraging strong appeal to global platforms Building premium on strong brand credentials Unlocking brand potential through CRB Volume Volume Points of sale
Slide 21: Unrivalled skill at being both local and global
Unrivalled skill at being both local and global At the same time, in the same markets, with different brands 20
Slide 22: #IAMstel Tools video
#IAMstel Tools video Flex the brand to be locally relevant whilst staying true to its core 21
Slide 23: Replicating success into the right markets
Replicating success into the right markets Versatile international portfolio to successfully compete in a wide range of occasions 22
Slide 24: Scaling craft in complementary ways
Scaling craft in complementary ways Once again through a combination of global and local approaches Making taste travel Scaling local authenticity Lagunitas available in 34 markets and locally produced in 3 markets Extending scale brands 23
Slide 25: Footprint skewed to growth
Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models 24 What’s Brewing Seminar 2019
Slide 26: Opportunities to source growth, beyond core beer
Opportunities to source growth, beyond core beer Leveraging trends: Health & wellness and blurring categories Beer Energy >HSD Drinks 0.0 growth Radler/ Iced/ LSD - MSD RTD Spirits Wine Cider Mixed Malt Water* Coffee & growth Beer Tea Beer <Beer Carbonated Juices/ growth Soft Drinks Nectars Alcoholi
Slide 27: Cider leverages the same assets for more penetration
Cider leverages the same assets for more penetration Established cider markets show +9% penetration on top of beer Production assets Commercial assets Brewery with capabilities for cider and beer production in 19 countries 26
Slide 28: Radler: The benefit of making the first move
Radler: The benefit of making the first move Continued growth at a healthy price premium compared to CSD sources of volume Beer Mixes First mover competitive advantage Market shares in beer mixes 13mhl >25% c.50% c.25% Global beer mixes HEINEKEN volume market share in Austria in Poland +5.1% +8.3% G
Slide 29: The non-alcoholic beer opportunity is now and big
The non-alcoholic beer opportunity is now and big Drinks landscape is changing rapidly towards healthier and more natural non-alcohol beverages Non-alcoholic beer sources from different categories Our non-alcoholic beer is truly zero alcohol, Non-alcoholic beer takes us into new occasions and great
Slide 30: Leading the way on non-alcoholic beer
Leading the way on non-alcoholic beer 66 non-alcoholic line extentions available across over 55 markets Replicating success with the right brands across the right markets Heineken 0.0 available in 52 markets in less than 3 years 29
Slide 31: Portfolio approach to create a new category
Portfolio approach to create a new category Effective rollout of a powerful enabler – ZeroZone ZeroZone rolled out to 21 markets in only 12 months 30
Slide 32: Accelerating the opportunity in the on-trade
Accelerating the opportunity in the on-trade Visibility is key to create and change consumer habits. Powerful enabler – The Blade The Blade is available in 25 markets RIGHT SKU When When Individually Dual Stocked Stocked 4 serves +350% Sales Uplift 14 serves 31 Source – HUK SPB Proprietary Data, 201
Slide 33: "Now you can" video
“Now you can” video First flagship 0.0 brand at global scale now available in >50 markets serving new LONO occassions 32
Slide 34: Footprint skewed to growth
Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models 33 What’s Brewing Seminar 2019
Slide 35: Draught Systems: Sizeable, profitable and growing
Draught Systems: Sizeable, profitable and growing Innovations delivering on convenience, quality and affordability >€300m +15.3% >2.0mhl of net revenue* net revenue Beer volumes* 5Y CAGR from 2014-2019 On-trade draught Draught@Home Plug&Play Draught Solutions to bring premium Bringing the Magic drau
Slide 36: Become the Best Connected Brewer
Become the Best Connected Brewer We are jumping onto a new growth curve, today Age of Age of Age of Production Marketing & Sales Connections Proposition Build omni-present brands Be relevant to consumers Produce a great product Be in every point of sale Create value for customers Competiti
Slide 37: Consumer & customer journeys always at the core
Consumer & customer journeys always at the core... …also in a digital age. Consumer journeys Moment of Truth Customer journeys Consumer Customer Be relevant to consumers Increase customer commitment with right personalized message by growing their businesses at right moment 36
Slide 38: Winning at the moment of truth
Winning at the moment of truth... … by rapidly scaling a complementary capabilities, transactional platforms and new businesses Consumer Customer Consumer Customer Consumer journeys Customer journeys Capability programmes Individualized Data-Driven Marketing Data Driven Sales (“DDS”) (“IDDM”) Transa
Slide 39: Our digital platforms are being deployed faster & wider
Our digital platforms are being deployed faster & wider Digital enables direct personalised relationships with customers and consumers Capability programs Transactional Replicating success in the right markets platforms B2C B2B Adjacent business models 38
Slide 40: IDDM video
IDDM video Efficient, effective personalized consumer messaging with measurable results Flexible Copy Objects SKU Functionality Endframe 39 What’s Brewing Seminar 2019
Slide 41: Conclusion
Agenda Conclusion HEINEKEN is well placed to continue delivering superior top-line growth today, tomorrow and the day after tomorrow. 40 What’s Brewing Seminar 2019
Slide 42: HEINEKEN's growth model, simplified
HEINEKEN’s growth model, simplified KEY CONSUMER TRENDS: DIGITAL LIVES, HEALTH & WELLNESS, BLURRING BOUNDARIES Footprint Entering Premiumisation Adjacent Adjacent skewed new markets beverage business to growth categories models Do Learn Share Re-apply Mastering global scale and local relevance 41 Wh
Slide 43: We Are HEINEKEN.
We Are HEINEKEN. 42