Heineken Nv · EURONEXT:HEIA
Heineken Nv — Heineken Financial Markets Conference 2018
22 slides from Heineken Nv's conference presentation, May 2018
Slide 1: Heineken Europe
Heineken Europe Stefan Orlowski President Heineken Europe There are no mature markets only mature mindsets — Theodore Levitt Milan, Italy | May 8-9, 2018 | Heineken N.V.
Slide 2: Summary
Summary Heineken Europe ✓ Europe remains an attractive and valuable market for beer, cider and near category growth potential ✓ HEINEKEN is well positioned in the context of economic & market evolution with growth potential in its key markets ✓ HEINEKEN’s diverse local footprint combined with global
Slide 3: Europe remains an attractive market
Europe remains an attractive market Accelerating growth of disposable income Growing urbanisation (Net Disposable income per Household, EUR)* (% urban population)* +2.4% +2.8% CAGR CAGR 73.5% 74.6% 75.7% 2014 2017 2020 2012 2017 2022 Increasingly educated labour forces Consumption per capita (% of 2
Slide 4: Challenges & opportunities
Challenges & opportunities Changing political Digital disruption & competitive retail environment & opportunities 3
Slide 5: Consumer demand is fragmenting
Consumer demand is fragmenting 4
Slide 6: Fast growing segments
Fast growing segments LNA, C&V & Cider share Average retail selling price Forecast volume growth of HEINEKEN Europe (2017, €/L**) (2017-2020**) (2017, Revenue*) 4.1% 5.6 3.3% 26% 4.5 3.6 3.4 2.3% 0.6% Average LNA Beer C&V Cider Beer LNA C&V Cider Average (ex. UK) Mainstream still key with 65% of tot
Slide 7: Unique footprint offers strategic advantages
Unique footprint offers strategic advantages ▪ Ability to maximise and capture opportunities with local brand relevance ▪ Agility at country level to adapt to changing consumer demand ▪ Innovations executed locally & adapted to market preferences where needed ▪ Ability to scale & adapt successful in
Slide 8: Heineken: #1 Premium beer in Europe & growing
® Heineken : #1 Premium beer in Europe & growing ▪ Large brand (>12mhl) with strong growth in Supported by strong innovation volume (+2.4% CAGR) and value (+2.6% CAGR) ▪ Growing at more than twice the rate of the beer market (+1.1% CAGR) ▪ High equity gives a strong platform for launching & accelera
Slide 9: Supported by strong international & local brands…
Supported by strong international & local brands… International brands out of Europe Local brands that have travelled Strong local brands 8
Slide 10: …and a diverse Craft & Variety proposition
…and a diverse Craft & Variety proposition Crafty line extensions & new brands Craft that can travel Grow/acquire local craft After a hard working morning, I’m with my friend in @lafabricamalaga and I love it! Happy Saturday! 9
Slide 11: La Fábrica
Soho de Málaga La Fábrica Video Milan, Italy | May 8-9, 2018 | Heineken N.V.
Slide 12: Opportunity in growing Low & No Alcohol category
Opportunity in growing Low & No Alcohol category Spain Low / No Alcohol Beer Poland Low / No Alcohol Beer (2014-2017 CAGR) (2014-2017 CAGR) 6.8% 18.4% 15.2% 3.0% 2.6% 1.2% Beer Market LNA Market HEINEKEN LNA Beer Market LNA Market HEINEKEN LNA LNA share of total LNA share of total beer market: 8.8%
Slide 13: Continuing to shape the cider category
Continuing to shape the cider category Ireland Spain Leading with a local brand Adapting an international brand as part of a portfolio approach to local preferences ✓ Market share from 1.3% in 2014 to 12.5% in 2017 ✓ Launch of a new category in Spain ✓ Orchard Thieves launched in 2015 & still growin
Slide 14: Innovation to benefit customers & consumers
Innovation to benefit customers & consumers Blade Heineken Coolflow The Sub® ▪ Gamechanger for low throughput ▪ Consistent, perfect quality, ▪ Sold online via the-SUB.com in customers cold draught beer from the keg 8 markets and facilitated centrally to the glass ▪ Provides quality draught beer ▪ Ra
Slide 15: Embracing e-commerce through B2C & B2B
Embracing e-commerce through B2C & B2B 14
Slide 16: Embracing e-commerce through B2C & B2B
Embracing e-commerce through B2C & B2B Out of Home B2B “Good to see the exact price that you are paying” – Jason, Athletic Arms, Edinburgh “I’m now able to order anytime and on mobile/tablet. It’s pretty straightforward and convenient” – Vince, Independent Outlet, Brixton 15
Slide 17: Driving an End-to-End mindset
Driving an End-to-End mindset Make Sell Support Revenue ZBC management Sell more for more Eliminate bad costs Customer Consumer 16
Slide 18: Star Pubs & Bars strategically important in the UK
Star Pubs & Bars strategically important in the UK A highly successful & profitable Strategically important business model to the UK business ▪ >2,800 leased and tenanted pubs since Punch acquisition ▪ Hands-on experience & understanding with a wide UK footprint of the On Trade ▪ Star Pubs & Bars st
Slide 19: Wholesale strategically important in selected markets
Wholesale strategically important in selected markets Provides synergies with commercial brewing operations: ▪ Higher proximity to customer ▪ Better access to broad range of data ▪ Reliable and secure access to markets ▪ Consumer touchpoints 18
Slide 20: Europe contributes to HNV growth
Europe contributes to HNV growth Europe Beer volume (mhl) Revenue (€m) Operating profit margin Europe 36% Average og +0.7% Average og +1.6% Average +67bps share of HNV Beer Volume 13.4% 2017 78.6 78.8 12.5% 10,227 10,237 76.6 10,112 11.7% Europe 11.4% Europe 47% share of HNV 9,760 Revenue 73.6 2017
Slide 21: Four business priorities
Four business priorities Engage and develop our people Deliver top line growth ▪ Develop great business leaders ▪ Accelerate Heineken® ▪ Grow talent pipeline at all levels Deliver ▪ Win with local brands top line ▪ Build critical capabilities and growth ▪ Develop our international brands strengthen
Slide 22: Summary
Summary Heineken Europe ✓ Europe remains an attractive and valuable market for beer, cider and near category growth potential ✓ HEINEKEN is well positioned in the context of economic & market evolution with growth potential in its key markets ✓ HEINEKEN’s diverse local footprint combined with global
Heineken — Heineken Financial Markets Conference 2018 on 6ix