Heineken Nv · EURONEXT:HEIA
Heineken Nv — Investor Presentation (March 2024)
101 slides from Heineken Nv's investor presentation, March 2024
Slide 1: Heineken N.V. Investor Presentation
Heineken N.V. Investor Presentation March, 2024
Slide 2: Mobilising the organisation and deploying EverGreen at scale
We’re mobilising the organisation and deploying EverGreen at scale as we pursue our dream to shape the future of beer and beyond. 2
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements based on current expectations and assumptions with regards 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 4: Group Overview, Our Strategy
Group Our Strategy Supporting Overview — Evergreen Information Brew a Better World Targets, Strategy & Progress Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information 4 Group Overview Our Strategy — Evergreen Supporting Information
Slide 5: Group Overview
Group Overview Beer has been bringing people together for thousands of years. Since 1864, HEINEKEN has been doing its part to put a smile on consumers’ faces while continuously renewing and adapting. Our best days are ahead of us as we continue to deliver superior and balanced growth with beer and b
Slide 6: At a Glance
At a Glance 1 #1 Brewer in Europe >190 “ After a strong 2022, 2023 proved to be challenging. I am proud of the resilience of our business and our people and encouraged by our progress on our EverGreen strategy. Countries #2 We continue to make progress on our EverGreen priorities, while in which our
Slide 7: Superior Growth Company: A history of value creation
Superior Growth Company l A history of value creation Total Shareholder Return 400 350 DIAGEO 300 Carlsberg 250 MSCI Europe Consumer staples 200 Molson Coors 150 ABI 100Jan 12 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 1. Factset and Bloomberg data until 31 D
Slide 8: Building on our strengths to deliver superior growth
Building on our strengths to deliver superior growth Advantaged for growth Diversified footprint Powerful portfolio > 40% 71 Revenues from premium # 1 & 2 Positions1 > 20% Heineken® % total volume Strong brands 45% vs 55% Brand Power 100 – 150 bps Developed vs Emerging markets Market Share Ahead of
Slide 9: Advantaged footprint: balanced, diversified & skewed for growth
Advantaged footprint l balanced, diversified & skewed for growth Europe Americas AMEE APAC 33% Vol 33% Vol 18% Vol 16% Vol 31% OP 34% OP 10% OP 21% OP 18 #1&2 Positions 19 #1&2 Positions 18 #1&2 Positions 16 #1&2 Positions Most diversified footprint: 20 OpCos ≈ 80% OP All other information refers to
Slide 10: Heineken: Shaping the category since 1864
Heineken : Shaping the category since 1864 ® Heineken® Ambition Beer Brand #1 by RSV 2022/3 Heineken Silver launches in Europe and the USA >190 Countries Be the most 1970s meaningful Drives growth 2017 of lager in UK Heineken 0.0 reframes beer brand with non-alcoholic beer 1950’s young adult 2010 ‘B
Slide 11: Our dream is to shape the future of beer and beyond
Our dream is to shape the future of beer and beyond Beyond beer Expand beer Core beer Expand beer Beyond beer Lager Energy Cider Specialty LAGER ABV ABV % HIGH ABV 0.0% % NONE % NONE Craft Flavoured Malt Seltzer & RTDs Note: Innovation revenue excludes packaging Source: Internal data 11 Group Overvi
Slide 12: Our Strategy — EverGreen
Our Strategy — EverGreen EverGreen is a bold strategy to deliver superior and balanced growth and the next evolution of our HEINEKEN business. As a 158-year-old company, we think in generations and deliver long-term, sustainable value creation. 12 Group Overview Our Strategy — Evergreen Supporting I
Slide 13: HEINEKEN has successfully navigated evolving seasons
HEINEKEN has successfully navigated evolving SEASONS Industrial International Mass Global Shape the Future of Revolution Expansion Marketing Consolidation Beer & Beyond 13 Group Overview Our Strategy — Evergreen Supporting Information
Slide 14: Our next Growth Chapter
Our next Growth Chapter | Renewal inspired by nature’s resilience Future proof HEINEKEN BUILDING ON SUSTAINING STRENGTHS A MULTI-YEAR, GROWTH ADDRESSING MULTI-DIMENSIONAL IN A FAST CHALLENGES CHANGING WORLD JOURNEY Speed, Agility & External Orientation 14 Group Overview Our Strategy — Evergreen Supp
Slide 15: Key EverGreen shifts
Key EverGreen shifts Superior Top-line Growth Company Superior & Balanced Growth Company M&A driven, footprint expansion AND Accelerate Organic Growth Premium leadership & market leader in Cider Scale Premiumisation & Consumer-centric innovation Excellent execution & customer relations AND Data Driv
Slide 16: Five Strategic Priorities
Five Strategic Priorities ① SHAPE THE FUTURE OF BEER & BEYOND • Advantaged footprint • Scale premiumisation • Pioneer Lo/No • Explore beyond beer ② DIGITAL Become the best connected brewer ③ PRODUCTIVITY Fund the growth, fuel the profit ④ SUSTAINABILITY Raise the bar on sustainability & responsibili
Slide 17: EverGreen | Our Ambition
EverGreen | Our Ambition Strategic Priorities Growth Algorithm Green Diamond Growth ① SHAPE THE FUTURE OF BEER & BEYOND Capital Profitability ② DIGITAL efficiency ③ PRODUCTIVITY Sustainability & ④ SUSTAINABILITY Responsibility ⑤ PEOPLE What we focus on How we create value How we measure success 17 G
Slide 18: Beer is a great category
Beer is a great category Consumers love Beer Big Opportunities Accessible / Inclusive Big Emerging markets Under-served consumers Moderate Growing share of Premium throat Under-represented Natural occasions Profitable Local 18 Group Overview Our Strategy — Evergreen Supporting Information
Slide 19: Big opportunities for growth
Big opportunities for growth Under-represented Under-served Narrow taste Super occasions consumers profile Premium Beer share of high Beer penetration energy occasions with men >90% x 2.5 1.2x +20pp of beer category Spirits category value vs share of low energy higher than with is lager Beer in Supe
Slide 20: Beer is a growing & profitable category, recovering post-pandemic
Beer is a growing & profitable category, recovering post-pandemic Beer volume growth 1999-20231, mhl Beer as % Total Alcohol Beverage2 +2% CAGR +1% +0% CAGR Volume1 Value CAGR 39% 50% Beer 1999 2019 2023 Cider RTD Covid Spirits 1. Converted to servings -19 Wine Source: 1: GlobalData, 2: IWSR 2023 20
Slide 21: Premium Beer is a significant opportunity for growth
Premium Beer is a significant opportunity for growth In both Developed & Emerging Markets Premium Beer Premium Beer Premium Beer >50% is has grown c.25% >2x gross profit/hl higher of total beer market volume faster than mainstream than category beer in last 20 years 21 Group Overview Our Strategy —
Slide 22: Shape the future of beer & beyond to win the hearts of consumers
Our Dream Shape the future of beer & beyond to win the hearts of consumers 22 Group Overview Our Strategy — Evergreen Supporting Information
Slide 23: Shape the future of beer & beyond
Shape the future of beer & beyond Priorities for segments and categories 1 2 3 4 Advantaged Scale Pioneer Explore Footprint Premiumisation Lo/No Beyond Beer 23 Group Overview Our Strategy — Evergreen Supporting Information
Slide 24: Each region has a clearly defined role
Each region has a clearly defined role Europe Americas AMEE APAC Improve profitability Progressively capture Create more value Seize a larger share and value creation a larger share of the from the large long- of the expected by winning in premium profit pool by term growth potential growth at attra
Slide 25: Scale Premiumisation
Scale Premiumisation Led category premiumisation Drive premiumisation with Heineken® at scale >40% Revenues from premium Launch Heineken® Silver at scale across regions Heineken® #1 beer brand by value Scale International brands [e.g. Tiger 12 markets where Heineken® >1mhl & Desperados] & replicate
Slide 26: Pioneer Lo/No
Pioneer Lo/No First mover with Heineken® 0.0 Widen portfolio to accelerate Heineken® 0.0 #1 non-alcoholic beer globally Extend 0.0 options across entire portfolio Heineken® 0.0 > 100 countries Innovate in flavoured, local & craft 0.0s Build on #1 in malts with 20 non-alcoholic malt brands, into ener
Slide 27: Explore Beyond Beer
Explore Beyond Beer Cider & Desperados Broaden & scale through led portfolio Innovation #1 Cider portfolio globally Consumer centric innovation, scaled through innovation hubs #1 Spirit Beer brand: Desperados - expanded into flavoured beers Build on capabilities & experience from cider #1 in Beyond
Slide 28: Digital | become the best connected brewer
Digital | become the best connected brewer Digitally transforming …whilst modernizing & our business “front-end”... simplifying the “back-end” Digitise our Data Driven Secure Digitally Simplification Route to Insights & Digital Enabled & Automation Consumer Foresights Backbone Organisation Deliverin
Slide 29: Productivity | to fund the growth and fuel the profit
Productivity | to fund the growth and fuel the profit Deliver productivity Build cost conscious culture Rigorous capital & resource savings capabilities allocation Consistent value Strategy creation from €2.5 Billion operations Gross savings by end 2023 +€0.5 Billion Capability Culture Ahead of targ
Slide 30: Sustainability | raise the bar on sustainability & responsibility
Sustainability | raise the bar on sustainability & responsibility Clear ambition 2030 Making good progress Operationalising -34% absolute carbon reduction in production* vs 2018 (2022: 18%) *scope 1&2 New Circularity strategy with targets on resuse, recycled content and recyclability design 19% → 28
Slide 31: Shift | OpCo-centric Model to Disciplined Entrepreneurship
Shift | OpCo-centric Model to Disciplined Entrepreneurship OpCo Siloed Networked Business Disciplined Entrepreneurship 31 Group Overview Our Strategy — Evergreen Supporting Information
Slide 32: People | unlock the full potential of our people & organisation
People | unlock the full potential of our people & organisation “By nurturing authentic human connections, cultivating a culture of belonging and giving people the opportunity to thrive we continue to unlock the full potential of our people and organisation. Looking back at 2023, we continued to inv
Slide 33: EverGreen 2025
EverGreen 2025 2020 - 2021 2022 - 2023 2024 Set EverGreen direction Mobilise organisation & Accelerate EverGreen transformation & Build Team deliver EverGreen priorities & deliver long-term value creation Growth Capital Profitability efficiency Sustainability & Responsibility Navigating Building the
Slide 34: Delivering long term value creation across the Green Diamond
Delivering long term value creation l across the Green Diamond Superior & balanced growth Step up investment Capex <9% net revenue (beia) Growth Improve capital efficiency Capital Profitability efficiency €400 Million p.a. Gross Savings Sustainability & Responsibility Over time, operating profit gro
Slide 35: Capital allocation priorities
Capital allocation priorities 1 Invest for growth Organic growth and business expansion Net Debt / EBITDA (beia) <2.5x 2 Strict financial discipline Maintain long-term target 3 Consistent dividend policy Pay-out ratio 30-40% of net profit (beia) 4 Inorganic expansion Value-enhancing acquisitions 5 O
Slide 36: Supporting Information
Supporting Brew a Better World Targets, Information Strategy & Progress Latest Results & Outlook We are building execution and operational momentum to bring our Brew a Better World 2030 Leverage & Financial Policy ambitions to life. This means weaving sustainability into the fabric of how we run our
Slide 37: Brew a Better World 2030
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Brew a Better World 2030 Path to zero impact Path to an inclusive, fair and equitable world Path to moderation and no harmful use 37 Group Overview Our Strategy — Ever
Slide 38: Building momentum on Brew a Better World
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Building momentum on Brew a Better World Environmental Social Responsible 34% 28% 14% absolute carbon reduction in women in senior media spend Heineken® production* vs
Slide 39: More information on Brew a Better World
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information More information on Brew a Better World Our Policies Our Benchmarks & Ratings Our Brew a Better Our 2023 World Strategy Annual Report 39 Group Overview Our Strategy —
Slide 40: FY 2023 Results, Outlook 2024
Supporting Brew a Better World Targets, Information Strategy & Progress Latest Results & Outlook FY 2023 Results Outlook 2024 Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information 40 Group Overview Our Strategy — Evergreen Supporting Information
Slide 41: FY 2023 financial highlights
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information FY 2023 financial highlights +5.5% +10.8% Net revenue (beia) OG Net revenue (beia) OG per hl -4.7% +3.4% Total beer volume OG Heineken volume® (exc Russia) OG +1.7% +1
Slide 42: Africa & Middle East
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Africa & Middle East Nigeria. Revenue growth from pricing for inflation. Consumers purchasing power affected by structural reforms. +11.6% +17.4% Right-sized our cost
Slide 43: Americas
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Americas Mexico. Outperforming the market in the last year of OXXO mixing. Six stores now 17k. New greenfield in +7.4% +8.4% Yucatán. Net revenue (beia) OG Price mix1
Slide 44: Asia Pacific
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Asia Pacific Vietnam. Market continues to be impacted by external factors. Mainstream portfolio outperformed -5.9% +4.0% the market with Bia Viet, Bivinia and Net Reve
Slide 45: Europe
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Europe Volume performance improved to a 3.4% decline in Q4. +6.3% +11.7% The volume perfomrance in the On Trade Net revenue (beia) OG Price mix1 was better than in the
Slide 46: Heineken continues outperformance
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Heineken continues outperformance ® Volume growth Heineken® 0.0 150 years of Heineken® +3.4% +5.7% (excl. Russia) (excl. Russia) Most Awarded Food & Drink Brand Cannes
Slide 47: Price-led topline growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Price-led topline growth Net Revenue (beia): +5.5% organic increase Net Revenue (beia) €m Organic increase €1.591m -1,350 2,941 -4.7% -864 887 Volume OG Of which: +10.
Slide 48: Operating profit (beia) returning to growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Operating profit (beia) returning to growth Operating Profit (beia): +1.7% organic increase Operating Profit (beia) €m 78 -102 -35 Of which: Vietnam: -32% All others:
Slide 49: Other key financial metrics
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Other key financial metrics €m unless otherwise stated - Beia FY 2023 FY 2022 vs LY1 Operating Profit 4,443 4,502 +1.7% Share of Profit 270 263 +4.3% Net Interest Inco
Slide 50: FOCF delivery vs 2022
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information FOCF delivery vs 2022 FOCF €m 334 -46 -583 -355 2,409 1,759 FY 2022 Cash flow from Working capital Capex2 Interest, dividend FY 2023 operations1 & income tax 1. Cash f
Slide 51: Outlook 2024
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Outlook 2024 Solid progress on EverGreen; more balanced topline growth Variable costs up low-single-digit organically, higher wage inflation €500m productivity on-trac
Slide 52: Leverage & Financial Policy
Supporting Brew a Better World Targets, Information Strategy & Progress Latest Results & Outlook Our ambition is to deliver superior, balanced growth to consistently create long-term shareholder value. Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information 52 Group O
Slide 53: Overview of financial debt position
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Overview of financial debt position (per 31 Dec 2023) Total Interest Bearing Debt1 of €18.2 billion Funding Sources 7% € 14.7 13% Bank financing and other Heineken NV
Slide 54: Committed to long term target <2.5x
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Committed to long term target <2.5x Net Debt/EBITDA (beia) ratio APB Punch, Kirin Brasil CR Beer Covid-19 Acquisition acquisitions Acquisition pandemic 3.4 2.8 Target
Slide 55: A well-balanced bond maturity profile
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A well-balanced bond maturity profile Optimise debt repayments via well balanced maturity profile Bond maturity profile per 31 December 2023 (in €m) incl. the currency
Slide 56: Conservative risk management policy
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Conservative risk management policy In both currencies and interest rates Currency split of Net Debt (per 31 Dec 2023) 6% 6% • HEINEKEN hedges up to 90% of its net US
Slide 57: Our Markets
Supporting Brew a Better World Targets, Information Strategy & Progress Latest Results & Outlook We take great pride in how balanced and diversified our footprint is, advantaged for growth, with a broad Leverage & Financial Policy portfolio of brands skewed to Premium. Our Markets Governance, Owners
Slide 58: A balanced footprint, skewed towards growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A balanced footprint, skewed towards growth Operating Companies Joint Venture / Associates Licenses Export Europe Americas AMEE APAC Soren Hagh Marc Busain Roland Pirm
Slide 59: Europe
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Europe 59 Group Overview Our Strategy — Evergreen Supporting Information
Slide 60: Leadership in Europe
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Leadership in Europe Improve profitability and value creation by winning in premium and leveraging our scale advantage 33% of Total 40% of Net Revenue 31% of Operating
Slide 61: Our E2E Supply Chain Transformation in Europe
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Our E2E Supply Chain Transformation in Europe From an Opco-focused supply chain... ...to a Customer-focused Network Operating Profit Margin - % of Revenue Netwo ms rk
Slide 62: Americas
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Americas USA Mexico Brazil 62 Group Overview Our Strategy — Evergreen Supporting Information
Slide 63: A strong presence in the most valuable global beer market
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A strong presence in the most valuable global beer market Progressively capture a larger share of the profit pool by capitalising on our momentum 33% of Total 35% of N
Slide 64: Built through acquisitions, partnerships and organic growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Built through successful acquisitions, winning partnerships, and accelerated organic growth Beer Volume 1 1999-2023 Brazil c.14x In 20 years 1% > 15% HEINEKEN share of
Slide 65: USA
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information USA #4 Market Position €103bn Beer Market Retail Sales Value 234 mhl Beer Market Volume +0.2% Source: Global data volume & retail sales value FY22; Beer Market Volume
Slide 66: Our priorities on our three Premium propositions
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Our priorities on our three Premium propositions Heineken® Dos Equis Lagunitas • Heineken® Original • Top 10 position in draught • #3 IPA • Heineken® 0.0 leadership in
Slide 67: Mexico
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Mexico #2 Market Position €20bn Beer Market Retail Sales Value 91 mhl Beer Market Volume +2.7% Source: Global data volume & retail sales value FY22; Beer Market Volume
Slide 68: Building a winning portfolio
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Building a winning portfolio … Premiumisation Tecate: #2 brand nationally remains a BIG opportunity Tecate volume growth Volume of premium portfolio in Mexico 1% 11% 1
Slide 69: Accelerating Six as a key driver of profitable share gain
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Accelerating Six as a key driver of profitable share gain The second largest retail chain in Mexico Our most profitable channel >1,200 new stores per year since 2018 c
Slide 70: Brazil
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Brazil #2 Market Position €31bn Beer Market Retail Sales Value 154 mhl Beer Market Volume +13% Source: Global data volume & retail sales value FY22; Beer Market Volume
Slide 71: Our business in Brazil has undergone a massive transformation
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Our business in Brazil has undergone a massive transformation From Economy to Premium-led Our ambition is to transform the market Share of Beer Volume by Price Segment
Slide 72: Winning in Premium and Pure Malt Mainstream in Brazil
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Winning in Premium and Pure Malt Mainstream in Brazil Heineken® and Amstel Brazil Volume Evolution, 2013-23 (mHL) #1 #1 Off trade brand Pure Malt by value1 +31% +68% M
Slide 73: Africa, Middle East and Eastern Europe
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Africa, Middle East and Eastern Europe Nigeria Ethiopia CC South Africa 73 Group Overview Our Strategy — Evergreen Supporting Information
Slide 74: A strong position in Africa's largest profit pools
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A strong position in Africa’s largest profit pools Create more value from the large long-term growth potential by delivering balanced and profitable growth 18% of Tota
Slide 75: Africa is the fastest growing region in global beer
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Africa is the fastest growing region in global beer HEINEKEN volume evolution Africa drives global beer growth Growth over decades 5.9x 79% Africa’s share of global be
Slide 76: Nigeria
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Nigeria #1 Market Position €2.6bn Beer Market Retail Sales Value 16 mhl Beer Market Volume +2.8% Source: Global data volume & retail sales value; FY22 Beer Market Volu
Slide 77: A profound portfolio transformation in Nigeria
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A profound portfolio transformation in Nigeria Completely reshaping our …And more than doubling Mainstream portfolio… the size of Premium Brand share of beer volumes1
Slide 78: 2023: A tale of headwinds, a few tailwinds, and more headwinds
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information 2023: A tale of headwinds, a few tailwinds, and more headwinds Q1 2023 Apr 2023 June 2023 July 2023 Aug 2023 Oct 2023 Nov 2023 Dec 2023 Currency Note Triple beer excis
Slide 79: Ethiopia
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Ethiopia #1 Market Position €2.6bn Beer Market Retail Sales Value 16 mhl Beer Market Volume +16% Source: Global data volume & retail sales value FY22; Beer Market Volu
Slide 80: From entry to market leadership in a decade
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information From entry to market leadership in a decade We have captured With a unique, broad, the growth potential in the market national portfolio of brands Volume1 Portfolio by
Slide 81: South Africa
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information South Africa #2 Market Position €5.3bn Beer Market Retail Sales Value 41 mhl Beer Market Volume +3.2% Source: Global data volume & retail sales value; Beer Market Volu
Slide 82: Distell acquisition will transform our Route to Consumer
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Distell acquisition will transform our Route to Consumer… To unlock the expansion Deepening our distribution Creating a new opportunity across penetration Southern Afr
Slide 83: Add significant scale and unlock synergies
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information …add significant scale and unlock synergies A larger scale #2 player With significant synergies in Total Alcohol Beverage to drive value Share of Total Alcohol Beverag
Slide 84: Asia Pacific
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Asia Pacific South East Asia South Asia China JV Oceania North Asia Continue growth Drive long-term category Lead market premium Expand the category Evolve our existin
Slide 85: HEINEKEN has a broad presence in the Asia Pacific region
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information HEINEKEN has a broad presence in the Asia Pacific region… Seize a larger share of the expected growth at attractive profit margins by premiumising our portfolio 16% of
Slide 86: Capturing the growth opportunity
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information …capturing the growth opportunity Volume evolution1 India UBL 1% > 6% 10x Vietnam China (Licensed volume) 3% > 17% exc China Others HEINEKEN share of beer in APAC2, In
Slide 87: Strategy adapted to best capture future growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information … and our strategy is adapted to best capture future growth Beer-led Sophisticated Maintain beer Expand beer relevance and and selectively premiumise Domestic beer-led
Slide 88: Vietnam
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Vietnam #1 Market Position €11bn Beer Market Retail Sales Value 46 mhl Beer Market Volume +3.6% Source: Global data volume & retail sales value FY22; Beer Market Volum
Slide 89: Vietnam: from entry to market leadership in 30 years
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Vietnam: from entry to market leadership in 30 years… #1 Uncaging the full potential of Vietnam 25% Volume CAGR* 1 Strengthen our leadership in premium Drivers for fut
Slide 90: Evolving our portfolio for broad market leadership
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Evolving our portfolio for broad market leadership We will continue While strengthening our Regional brands growing >3X to drive premium position in mainstream in size
Slide 91: Geographic, coverage and portfolio expansion opportunities
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Geographic, coverage and portfolio expansion opportunities Asymmetric penetration To accelerate coverage Continued represents an opportunity expansion via eB2B portfol
Slide 92: India
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information India #1 Market Position €10bn Beer Market Retail Sales Value 28 mhl Beer Market Volume +3.7% Source: Global data volume & retail sales value FY22; Beer Market Volume
Slide 93: India is the last frontier of beer growth
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information India is the last frontier of beer growth, yet to be unlocked Strategy and market profile to unlock future growth Obstacles to overcome 1.4 Billion Improve beer 10% Po
Slide 94: China
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information China #1 Market Position €65bn Beer Market Retail Sales Value 488 mhl Beer Market Volume +6.2% Source: Global data volume & retail sales value FY22; Beer Market Volume
Slide 95: A strong growth partnership in China
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information A strong growth partnership in China Now our second largest Heineken® market globally Volume growth momentum Generating meaningful contribution Significant distributio
Slide 96: Governance, Ownership & Shareholder Information
Supporting Brew a Better World Targets, Information Strategy & Progress Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information 100 Group Overview Our Strategy — Evergreen Supporting Information
Slide 97: HEINEKEN's Executive Team
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information HEINEKEN’s Executive Team Dolf van den Brink Harold van den Broek Chief Executive Officer & Chief Financial Officer & Chairman of the Executive Board Member of the Exe
Slide 98: Ownership structure based on issued shares
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Ownership structure based on issued shares L’Arche Green N.V. Public 53.171% Heineken Holding N.V. 46.829%* 50.005% Heineken N.V. 49.995% *Including the 0.03% stake he
Slide 99: Sponsored Level 1 ADR Programmes
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Sponsored Level 1 ADR Programmes Heineken N.V. Heineken Holding N.V. Bloomberg ticker: HEINY Bloomberg ticker: HKHHY ISIN: US4230123014 ISIN: US4230081014 Cusip: 42301
Slide 100: Contact Us
Brew a Better World Latest Results & Outlook Leverage & Financial Policy Our Markets Governance, Ownership & Shareholder Information Contact Us E-mail: investors@heineken.com Tel: +31-20-5239590 Tristan van Strien Lennart Scholtus Investor Relations Investor Relations Director Manager Chris Steyn Mi
Slide 101: HEINEKEN
HEINEKEN