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Heineken NV — Asia Pacific Breweries — Heineken Financial Markets Conference 2011
30 slides from Heineken NV's conference presentation, Dec 8, 2011
Slide 1: Asia Pacific Breweries: A premium brewer in emerging markets
Asia Pacific Breweries: A premium brewer in emerging markets Roland Pirmez CEO, Asia Pacific Breweries Ltd. Singapore | 8 December 2011
Slide 2: Agenda
Agenda Asia Pacific Breweries: A premium brewer in emerging markets 1 Overview of Asia Pacific Breweries Ltd. 2 Strong brand portfolio 3 Delivering operational excellence 4 Financial performance 2
Slide 3: APB shareholder structure
APB shareholder structure APB Shareholder Structure 50% Asia Pacific 50% Investment Pte Ltd 64.81% 7.26% 9.49% Direct Investment Direct Investment 18.44% Listed on Singapore Exchange ‸ 3
Slide 4: Joint venture partners
Joint venture partners Long history of successful partnerships across several markets Mongolia (APB: 55%) Laos (APB: 68%) Mongolia MCS Group Laos Government, SBK China Thailand (APB: 36.8%) Chaiyawan and India Sarasin Family Laos Thailand Vietnam Vietnam (APB: 60%) Cambodia SATRA Sri Lanka Malaysia
Slide 5: APB's footprint in 1989
APB’s footprint in 1989 5 breweries in 3 countries… Kuala Lumpur Lae Malaysia Papua New Guinea Singapore Port Moresby 5
Slide 6: APB's footprint today
APB’s footprint today Widest regional Asia Pacific footprint amongst international brewers Interests in 24 operating breweries in 14 countries Laos Mongolia 1 brewery Mongolia 1 brewery China China Thailand 2 breweries 1 brewery Vietnam India Laos Sri Lanka 5 breweries Thailand 1 brewery Vietnam Pap
Slide 7: Established pan-Asian leadership positions
Established pan-Asian leadership positions Clear #1 position Strong #2 position Singapore Malaysia New Caledonia Vietnam Cambodia Sri Lanka Indonesia Papua New Guinea Solomon Islands New Zealand Mongolia #1 in Premium Category #2 in Premium Category Thailand China 7
Slide 8: Indochina & Thailand region is the largest contributor to APB's profit
Indochina & Thailand region is the largest contributor to APB’s profit APB EBIT by region: 2007 APB EBIT by region: 2011 2007: S$255.2m 2011: S$613.9m Central Central Costs South & Costs North Asia ($13.7) South East North Asia ($33.1) ($0.2) 5% $2.1 5% South & Asia $52.6 0% 0% South East 20% Asia $
Slide 9: APB's business has evolved towards higher growth emerging markets
APB’s business has evolved towards higher growth emerging markets EBIT S$80m EBIT S$614m 1989 2011 Emerging Established markets markets 30% 30% Established Emerging markets markets 70% 70% 9
Slide 10: APB's Vision & Strategy
APB’s Vision & Strategy Our Vision To be a leading brewery group in the Asia Pacific region Our Strategy Acquire, develop and defend Top 1 or 2 position with >25% market share Strong brand portfolio and commercial excellence (pull and push) 10
Slide 11: APB senior management team
APB senior management team Regional Directors Mr Roland Pirmez Chief Executive Officer Dr Les Buckley Mr Chris Kidd Mr Vivek Chhabra Mr Malcolm Tan Mr Bennett Neo Regional Director, Regional Director, Director, Group BD & Regional Director, Regional Director, S.E.A / Oceania Indochina Regional Direc
Slide 12: Agenda
Agenda Asia Pacific Breweries: A premium brewer in emerging markets 1 Overview of Asia Pacific Breweries Ltd. 2 Strong brand portfolio 3 Delivering operational excellence 4 Financial performance 12
Slide 13: APB has a diverse and well balanced product portfolio
APB has a diverse and well balanced product portfolio APB beer volume by segment: 2010/11 APB beer volume by brand: 2010/11 Economy Tiger 5% 15% Other Mainstream 30% 45% Premium 50% Heineken Bintang 30% 5% Larue 10% Anchor 10% Total: 16 mhl 13
Slide 14: Segmentation to fulfill unique consumer needs in different markets
Segmentation to fulfill unique consumer needs in different markets Building Winning Portfolios Vietnam Papua New Guinea Singapore New Zealand China Premium Mainstream Lower Mainstream 14
Slide 15: APB corporate brand: Tiger
APB corporate brand: Tiger Lead markets: Singapore, Malaysia & South Vietnam Tiger: Packaging & Variants Markets: Brewed in 10 markets; exported to over 65 countries Segment: Mainstream (Singapore/Malaysia) and Premium Tiger Engagement: Football & ‘Creativity’ Communication 15
Slide 16: APB corporate brand: Anchor
APB corporate brand: Anchor Brand growth led by Hainan (China) and Cambodia, supported by key activations Anchor Brand, Packaging, Variants Markets: Brewed in 5 markets and exported to over 6 markets globally Segment: Mainstream Anchor Ground Activation: Music & Sport Communication: Celebrity En
Slide 17: APB corporate brand: Bintang
APB corporate brand: Bintang Lead market is Indonesia Brand & Packaging Markets: Brewed in Indonesia, exported to over 5 markets globally Segment: Mainstream Ground Activation: Music, Local Events Communication 17
Slide 18: Agenda
Agenda Asia Pacific Breweries: A premium brewer in emerging markets 1 Overview of Asia Pacific Breweries Ltd. 2 Strong brand portfolio 3 Delivering operational excellence 4 Financial performance 18
Slide 19: APB's commercial strategy for winning in the marketplace
APB’s commercial strategy for winning in the marketplace Commercial Strategy Commercial Excellence Winning Portfolio Distribution Perfect Review Management Execution 19
Slide 20: Strong sales execution across both traditional and modern trade channels
Strong sales execution across both traditional and modern trade channels Off-Trade Volume contribution 2010/11 Cambodia Vietnam Modern on Traditional trade off trade 20% 25% Modern off trade Traditional 15% on trade 40% On-Trade Profit contribution 2010/11 China Singapore Off trade 40% On trade 60%
Slide 21: A flexible route-to-market tailored to local market conditions
A flexible route-to-market tailored to local market conditions Route-to-market Modern Trade Direct Distribution –9% APB OPCO Exclusive Sub- Modern Trade Breweries Distributors Distributors/ Key Accounts 47% Wholesalers Non Exclusive General Trade 91% Distributors Off- and On-trade 44% 21
Slide 22: Leveraging strong innovation capabilities
Leveraging strong innovation capabilities Heineken Tiger Tactile Can Secondary packaging Keg Aluminium bottle K2 Glassware Draft (Extra Cold) Primary Range 22
Slide 23: Leveraging HEINEKEN's supply chain expertise and know-how
Leveraging HEINEKEN’s supply chain expertise and know-how Adherence to HEINEKEN technical standards: Adoption of supply chain HEINEKEN Product safety & integrity benchmarking/optimisation tools: Process governance, recipe management Total Productive Management (TPM) & product control Brewery
Slide 24: Agenda
Agenda Asia Pacific Breweries: A premium brewer in emerging markets 1 Overview of Asia Pacific Breweries Ltd. 2 Strong brand portfolio 3 Delivering operational excellence 4 Financial performance 24
Slide 25: APB has delivered consistently strong financial results
APB has delivered consistently strong financial results Revenue 10 year CAGR 11.7% EBIT 10 year CAGR 18.7% in S$B in S$m FY2011 3.0 +18.4% FY2011 614 +22.8% FY2010 2.5 +25.6% FY2010 500 +58.2% FY2009 2.0 +0.1% FY2009 316 +13.8% FY2008 2.0 +12.0% FY2008 278 +8.8% FY2007 1.8 +16.9% FY2007 255 +2.2% FY
Slide 26: Asia Pacific Breweries Foundation (APBF)
Asia Pacific Breweries Foundation (APBF) Flagship Projects Signature Art Prize Contemporary visual art in the Asia Pacific Once every 3 years through to 2023 Covers 24 countries In its 2nd edition with a submission of 130 artworks from renowned artists Groceries with Heart Delivery of groc
Slide 27: Responsible Drinking (RD)
Responsible Drinking (RD) Awareness, Educate, Engage drink-savvy.com – information portal, showcases regional RD efforts Annual regional consumer engagement programmes to enforce RD Implementing RD message on primary packaging of our beers Strategic multi-stakeholder partnerships – ICAP (Globa
Slide 28: Summary
Summary APB has the broadest and most diverse regional footprint Established leadership positions in key high growth emerging markets Strong product portfolio led by Heineken®, Tiger and Anchor brands Winning in the market place through an effective route-to-market and strong commercial capa
Slide 29: Here's to Tiger time...
Here’s to Tiger time... 29
Slide 30: Questions please
Questions please Singapore | 8 December 2011
Asia Pacific Breweries — Heineken Financial Markets Conference 2011 on 6ix