Slide 1: 2018 Full Year Earnings Release
Heineken N.V. 2018 Full Year Earnings Release Jean-François van Boxmeer, CEO Laurence Debroux, CFO Amsterdam | February 13, 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: 2018 FY Key Highlights
2018 FY Key Highlights Net revenue (beia) organic growth +6.1% with +2.0% per hectolitre Consolidated beer volume +4.2% with growth in all regions Heineken® volume +7.7%, best performance in over a decade Operating profit (beia) organic growth +6.4%; operating profit margin (beia) 17.2% (-17
Slide 4: Regional Review
Regional Review 2018 FY Organic Growth % Africa, Middle East Heineken NV & Eastern Europe Americas Asia Pacific Europe Consolidated beer volume 4.2 5.0 5.4 8.2 1.3 Net revenue (beia) per hl 2.0 5.2 3.2 -2.5 1.8 Net revenue (beia) 6.1 11.1 8.3 5.8 3.0 Operating profit (beia) 6.4 16.2 4.6 3.4 4.2 3
Slide 5: Heineken volume +7.7%
Heineken volume +7.7% ® Strongest performance in over a decade Ten markets now sell more than 1 million hectolitres Double digit growth in Brazil, South Africa, Russia, the UK, Nigeria, Mexico, Poland and Germany On-going success of Heineken® 0.0, available in 38 markets 4
Slide 6: Strong top line growth
Strong top line growth Developing our international brands Building Craft & Variety Leading Low- and no-alcohol innovations Double digit growth driven by Tiger, Double digit growth of international Mid-single digit growth Desperados, Birra Moretti and Krušovice and local craft brands Strong
Slide 7: Brewing a Better World
Brewing a Better World Surpassed 2020 commitment for CO2 reduction and water efficiency 5.5 kg of CO2 equivalent/hl in 2018, (a 47% decrease since 2008) Average water consumption of breweries 3.5 hl of water per hl of beer (30% reduction compared to 2008); 3.2 hl of water per hl of beer in wat
Slide 8: China Resources & HEINEKEN to join forces in China
China Resources & HEINEKEN to join forces in China Market leader in China with best-in- Unparalleled international brand portfolio, class route to market network led by the iconic Heineken® brand, Nationwide scale and strong portfolio which has strong brand equity in China of national brands 7
Slide 9: Financial Overview
Financial Overview Key Financials €m unless otherwise stated 2018 FY Total Growth (%) Organic Growth (%) Revenue 26,811 3.7 Net revenue (beia) 22,471 3.9 6.1 Operating profit (beia) 3,868 2.9 6.4 Operating profit (beia) margin 17.2% -17 bps Net profit (beia) 2,424 7.9 12.5 Net profit 1,903 -1.6 Dilu
Slide 10: Net Revenue: +6.1% Organic Growth
Net Revenue: +6.1% Organic Growth Organic growth +6.1% +2.4% +4.0% +2.0% €m €m -4.7% 21,629 22,471 2017 FY Net Revenue Consolidation impact Currency translation Total volume Net Rev/hl 2018 FY Net Revenue (beia) restated (beia) 9
Slide 11: FY2018 Operating Profit (beia) margin
FY2018 Operating Profit (beia) margin Main drivers of variation -17 bps First time consolidation in Brazil with a dilutive +5 bps impact of -22bps 17.4% Input costs per hl increase 3.6% organically, -22 bps mainly in packaging materials (commodities 17.2% inflation and adverse transactional curr
Slide 12: Operating Profit (beia): +6.4% Organic Growth
Operating Profit (beia): +6.4% Organic Growth +1.2% +6.4% €m €m -4.7% 3,759 3,868 2017 FY Operating profit Consolidation impact Currency translation Organic growth 2018 FY Operating profit (beia) (beia) 11
Slide 13: Diluted EPS (beia) €4.25, +7.9%
Diluted EPS (beia) €4.25, +7.9% +7.9% €0.49 €0.02 €4.25 €3.94 -€0.20 2017 FY Diluted EPS (beia) Consolidation impact Currency translation Organic growth 2018 FY Diluted EPS (beia) 12
Slide 14: Free Operating Cash Flow of €2,246 million
Free Operating Cash Flow of €2,246 million €m unless otherwise stated 2018 FY 2017 FY Vs. LY Cash flow from operations (before 4,852 4,980 -128 changes in working capital) Change in working capital 713 69 644 Capital expenditure¹ -1,888 -1,696 -192 Free operating cash flow 2,246 2,031 215 Net Debt/E
Slide 15: Full Year Outlook
Full Year Outlook For 2019, we expect : Continued volatility in economic conditions Superior top-line growth driven by volume growth, price increases and premiumisation Mid-single digit increase of input and logistic costs per hectolitre on an organic basis Continued cost management and pr
Slide 16: "HEINEKEN
"HEINEKEN