Heineken Nv · EURONEXT:HEIA
Heineken Nv — H1 2023 Earnings Presentation
23 slides from Heineken Nv's earnings presentation, Jul 31, 2023
Slide 1: Heineken N.V. 2023 Half Year Results
Heineken N.V. 2023 Half Year Results Dolf van den Brink, CEO Harold van den Broek, CFO 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements based on current expectations and assumptions with regard to the financial position and results of HEINEKEN’s activities, anticipated developments and other factors. All statements other than statements of historical facts are, or may
Slide 3: Progress on EverGreen, amidst short-term challenges
Progress on EverGreen, amidst short-term challenges Prioritised and delivered front-loaded pricing required to offset unprecedented inflation Growth Financial performance for H1 below expectations, mainly driven by APAC. Marketing and sales investment up by €0.2 bn Capital Profitability Clear progre
Slide 4: Performance highlights
Performance highlights 4
Slide 5: HY 2023 Financial Highlights
HY 2023 Financial Highlights Net Revenue (beia) OG Net Revenue (beia) OG per hl +6.6% +12.7% Total Beer Volume OG Heineken® Volume (exc. Russia) -5.6% +3.7% Operating Profit (beia) OG Operating Profit Margin (beia) -8.8% 13.4% (-262bps) Net Profit (beia) OG Diluted EPS (beia) EUR -11.6% 2.03 5
Slide 6: Europe Region
Europe Region On-trade up, benefitting from reopening tailwinds Net Revenue (beia) OG Price Mix1 in Q1. Off-trade down, lost share due to earlier pricing, ahead of the industry. +8.9% +13.5% Premium beer outperformed driven by the growth of our Next Generation brands. We gained or held share in over
Slide 7: Americas Region
Americas Region Mexico revenue up low-teens. OXXO mixing completed, last year of impact. Premium Net Revenue (beia) OG Price Mix1 portfolio outperformed, led by Heineken® Silver. +8.6% +11.3% Six stores >16.5k. Brazil revenue up low-teens. Beer volume stable, outperforming the market while pricing a
Slide 8: AMEE Region
AMEE Region Nigeria. Volume down low-20s as consumption impacted by inflation, cash Net Revenue (beia) OG Price Mix1 shortages and structural economic reforms. +9.7% +16.7% Premium volume stable. Ethiopia volume up in low-20s, extending market leadership. Premium up c.40%, led by Heineken® and Bedel
Slide 9: APAC Region
APAC Region Vietnam volume down by c.25%, due to: Net Revenue (beia) OG Price Mix1 • Economic slowdown, impacting our strongholds & premium disproportionately -6.9% +4.9% • Destocking of Tet overhang • Pricing ahead of the market, particularly Tiger On a sell-out basis, performing broadly in line wi
Slide 10: Premium outperformance continues, limited downtrading
Premium outperformance continues, limited downtrading Europe Americas AMEE (exc Russia) APAC (exc China & Vietnam) Cons. Beer Volume OG% Cons. Beer Volume OG% Cons. Beer Volume OG% Cons. Beer Volume OG% Premium Mainstream Economy Premium Mainstream Economy Premium Mainstream Economy Premium Mainstre
Slide 11: Heineken continues outperformance
Heineken continues outperformance ® Volume growth Heineken® 0.0 150 years +3.7% (excl. Russia) +5.2% (excl. Russia) of Heineken® Most Awarded Food & Drink Brand Cannes 2023 Volume growth Heineken® Silver >50 +45% +60% markets Now present in 45 markets Volume growth 11
Slide 12: Becoming the best-connected brewer
Becoming the best-connected brewer Passing 10bn1 GMV with Increasing scale and Simplify and grow >550k active customers usage to capture value with our customers Gross Merchandise Value (GMV) €bn 5.2 +36% +46% 3.8 9 Markets Live 1.1 Active Customers 2021 HY 2022 HY 2023 HY HY’23 vs HY’22 1. Annualis
Slide 13: Brew a Better World: H1 2023 Progress
Brew a Better World: H1 2023 Progress Environmental CO2e % Reduction vs. 2018 (Production) Water Consumption hl/hl 1% 3.39 3.36 3.37 3.29 -12% -16% -17% 2019 2020 2021 2022 H1 ‘23* 2019 2020 2021 2022 2023* Social Responsible Women in Senior Management Max Verstappen is our new Heineken® 0.0 27% 28%
Slide 14: Financial highlights
Financial highlights 14
Slide 15: Growth from inflation-led pricing
Growth from inflation-led pricing Net Revenue (beia): +6.6% organic increase Net Revenue (beia) €m Organic increase €889 (733) (91) 231 1,622 -5.4% Volume OG -2.8% Vietnam & Nigeria +11.8% -2.6% All others Price-Mix OG 14,514 13,485 +10.8% Price +1.0% Mix HY 2022 Price-Mix1 Total volume Currency Con
Slide 16: Operating profit impacted by APAC and incremental investment
Operating profit impacted by APAC and incremental investment Operating Profit (beia): -8.8% organic decrease Operating Profit (beia) €m -189 -12 -14 Of which: -€178m Marketing & Sales -€219m APAC 2,155 1,939 HY 2022 Organic growth Currency Consolidation HY 2023 translation impact 16
Slide 17: Other key financial metrics
Other key financial metrics €m unless otherwise stated - Beia HY 2023 HY 2022 vs LY¹ Operating Profit 1,939 2,155 -8.8% Share of Profit 120 103 +14.6% Net Interest Income & Expenses -255 -185 -33.3% Other Net Finance Income & Expenses -100 24 -499.2% Net Profit 1,150 1,326 -11.6% ETR 28.0% 28.8% -80
Slide 18: FOCF delivery vs 2022
FOCF delivery vs 2022 FOCF €m -155 1,122 -794 -452 -467 -188 HY 2022 Cash flow from Working capital Capex2 Interest, dividend HY 2023 FOCF operations1 & income tax FOCF 1. Cash flow from operations before changes in working capital and after provisions and post-retirement obligations 2. Cash flow us
Slide 19: Outlook statement
Outlook statement EverGreen is a multi-year & multi-faceted journey. We are executing our plans in line with our strategic priorities, making clear progress. Significantly improved operating profit (beia) growth in H2: • Lower pressure from inflation • Required pricing starting to moderate with volu
Slide 20: Cost pressure slowing
Cost pressure slowing “Variable” costs1 € per hectolitre, organic growth in % Mid-teens Low-teens Energy + transport Gross savings H1 H2 1 Includes input costs, transport and energy & water. 20
Slide 21: Gross Savings skewed, and will deliver above target
Gross Savings skewed, and will deliver above target 2023 Delivery Full Programme 2+ Bn Gross Savings Target > 0.3+ Bn 2bn 1.7 Bn > 0.2 Bn 1.3 Bn Others Europe H1 H2 2021 2022 2023 1: FY23 estimated Gross Savings vs FY’22 baseline 21
Slide 22: Full year profit outlook stable to mid single digit
Full year profit outlook stable to mid single digit Investments continuing Pricing tapering Volume rebalancing Inflation subsiding Productivity increasing 22
Slide 23: Q&A
Q&A 10 23