Heineken Nv · EURONEXT:HEIA
Heineken Nv — FY2021 Earnings Presentation
31 slides from Heineken Nv's earnings presentation, Feb 16, 2022
Slide 1: 2021 Full Year Results
Heineken N.V. 2021 Full Year Results Dolf van den Brink, CEO Harold van den Broek, CFO Amsterdam | February 16, 2022 | 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: Dolf van den Brink
Dolf van den Brink CEO and Chairman of the Executive Board 3
Slide 4: CONNER
CONNER LIBERTADORES. & pe THEINEKEN EverGreen
Slide 5: FY 2021 Highlights
FY 2021 Highlights Net Revenue (beia) OG Net Revenue (beia) OG per hl +12.2% +8.3% Consolidated Beer Volume OG Heineken® Volume +4.6% +17.4% Operating Profit (beia) OG Operating Profit Margin (beia) +43.8% 15.6% (+331bps) Net Profit (beia) OG Diluted EPS (beia) EUR +80.2% 3.54 5 5
Slide 6: AMEE Region
AMEE Region Net Revenue (beia) OG Operating Profit (beia) OG +25.9% +89.0% Beer Volume OG Price Mix +10.4% +12.5% VOLUME ahead of 2019 with strong PRICING. NIGERIA volume grew in the low-teens, well ahead of 2019. Premium volume grew >30%, led by Tiger, Heineken® and successful launch of Desperados.
Slide 7: Americas Region
Americas Region Net Revenue (beia) OG Operating Profit (beia) OG +17.9% +19.5% Beer Volume OG Price Mix +8.2% +10.3% MEXICO grew in the high-teens, ahead of the market. Premium grew more than 30% led by Amstel Ultra, Bohemia and Heineken®. BRAZIL grew beer volume >10% in last quarter and gained valu
Slide 8: APAC Region
APAC Region Net Revenue (beia) OG Operating Profit (beia) OG -6.1% -13.5% Beer Volume OG Price Mix -11.7% +2.1% VIETNAM momentum disrupted by lockdowns in our strongholds. Recovered leadership position at year end. Bia Viet grew in the high-twenties. INDIA grew in the thirties, outperforming the mar
Slide 9: Europe Region
Europe Region Net Revenue (beia) OG Operating Profit (beia) OG +8.6% +154.1% Beer Volume OG Price Mix +3.8% +4.3% ON-TRADE grew in the high-teens, but remains more than 30% below 2019. OFF-TRADE broadly stable versus last year and ahead of 2019 by nearly 10%. Held or gained share in two-thirds of ou
Slide 10: Raising the bar on sustainability & responsibility in 2021
Proposal for Raising the bar on sustainability integrating ESG & responsibility in 2021 Signed on to Task Force on Climate- metrics into remuneration related Financial policy * Disclosures (TCFD) Publication of first Climate Action Plan 2030 net zero targets approved by Science Based Targets-initiat
Slide 11: EverGreen Growth Algorithm: Three topics for a closer look
EverGreen Growth Algorithm: Three topics for a closer look On track to deliver superior growth, beyond COVID impact – example: premiumisation Sharper, intentional investments Superior Growth in growth – example: eB2B Strengths & Sustainability Long-term value creation opportunities Responsibility Pe
Slide 12: Our ambition is to deliver balanced, superior top-line growth
Our ambition is to deliver balanced, superior top-line growth, winning with consumers and customers Portfolio Route to consumer Footprint Drive premiumisation Pioneer choice in low Intentionally expand Shape and strengthen Strengthen in key at scale, led by and non-alcoholic beyond beer our route to
Slide 13: Our ambition is to deliver balanced, superior top-line growth
Our ambition is to deliver balanced, superior top-line growth, winning with consumers and customers Portfolio Route to consumer Footprint Drive premiumisation Pioneer choice in low Intentionally expand Shape and strengthen Strengthen in key at scale, led by and non-alcoholic beyond beer our route to
Slide 14: Driving premiumization at scale, led by Heineken®
Driving premiumization at scale, led by Heineken® 2021 vs. 2019 pre-Covid volumes Make Heineken® Scale and replicate Make fewer, bigger bets on THE #1 BRAND OF CHOICE INTERNATIONAL BRANDS LOCAL PREMIUM CHAMPIONS Superior volume growth 17% +36% Double-digit growth c. 40 markets +27% Heineken® 0.0 >10
Slide 15: Bold premium innovations to meet evolving consumer needs and tastes
Bold premium innovations to meet evolving consumer needs and tastes Heineken® Silver Amstel Ultra Tiger Crystal Gen Y brands Edelweiss Roll out to reach Roll out to reach Expanded Grow to Now in more than more than into more than more than 20 markets 15 markets 14 markets 10% 20 markets in 2022 in 2
Slide 16: Our ambition is to deliver balanced, superior top-line growth
Our ambition is to deliver balanced, superior top-line growth, winning with consumers and customers Portfolio Route to consumer Footprint Drive premiumisation Pioneer choice in low Intentionally expand Shape and strengthen Strengthen in key at scale, led by and non-alcoholic beyond beer our route to
Slide 17: Steep acceleration of eB2B proprietary platforms roll-out
Steep acceleration of eB2B … connecting now close to half of proprietary platforms roll-out … our customers in scope eB2B Digital Sales Value Steep acceleration of B2B deployment €Bn Online as % of Fragmented Trade in markets with eB2B platforms 10.0 6.4 2.8 47 % 1.2 Series 1 15 % 2019 2021 2023 202
Slide 18: Robust ecosystem of proprietary, customer-centric digital products
Robust ecosystem of proprietary, customer-centric digital products 18
Slide 19: Harold van den Broek
Harold van den Broek CFO/Member of the Executive Board 19
Slide 20: Double-digit growth from partial volume recovery and assertive pricing
Double-digit growth from partial volume recovery and assertive pricing Net Revenue (beia): +12.2% organic increase Organic increase €2,412m 2.6% 1.4% €m 21,901 19,724 +3.6% +8.3% Volume OG Net rev/hl OG FY 2020 Total volume Net rev/hl Currency Consolidation FY 2021 Net revenue translation impact Net
Slide 21: Strong profit growth delivery versus 2020
Strong profit growth delivery versus 2020 Operating Profit (beia): +43.8% organic increase 98 31 1,060 3,414 2,421 FY 2020 Organic growth Currency Consolidation FY 2021 Operating translation impact Operating profit (beia) profit (beia) 21
Slide 22: Other key financial metrics
Other key financial metrics €m unless otherwise stated - Beia FY 2021 FY 2020 vs LY¹ Operating Profit 3,414 2,421 +43.8% Share of Profit 237 147 +70.0% Net Interest Income & Expenses -403 -470 +12.5% Other Net Finance Income & Expenses -94 -146 +22.2% Net Profit 2,041 1,154 +80.2% ETR 29.9% 32.8% -2
Slide 23: FOCF delivery vs 2020
FOCF delivery vs 2020 €m 84 43 150 978 €m 2,514 1,513 FY 2020 Cash flow from Working capital Capex2 Interest, dividend FY 2021 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 (used in/
Slide 24: EverGreen Growth Algorithm: Three topics for a closer look
EverGreen Growth Algorithm: Three topics for a closer look On track to deliver superior growth, beyond COVID impact – example: premiumisation Sharper, intentional investments in Superior Growth growth – example : eB2B Strengths & Sustainability Long-term value creation opportunities Responsibility P
Slide 25: €2bn productivity program on track to deliver
To address head-winds and improve …we set up a €2bn productivity profitability… program – which is on-track to deliver MARGIN PRESSURE pre-pandemic with slipping investment behind marketing and sales €1.3Bn 2021 gross savings vs 2019 Deep impact from COVID RISING COSTS and ADVERSE CURRENCY effects >
Slide 26: Gross Savings helped offset the deep impact from COVID, inflation and FX
Gross Savings helped offset the deep impact from COVID, inflation and transactional FX Operating Profit impact Operating Profit (Beia) ’21 vs ’19 €bn €bn C.1.4 Gross Covid volume C.1.3 savings & mix impact 4.0 C.0.5 Cost mitigations 3.4 2.4 Inflation and C.2.3 transactional C.1.7 Price Mix FX OP 201
Slide 27: The program has global coverage, implemented across all cost areas
The program has global coverage… … implemented across all cost areas EUROPE c.8% €0.4bn gross savings Selling & Marketing c.21% c.50% Total Gross Personnel AMERICAS HEADOFFICE APAC €0.4bn gross savings Var Expenses Savings €0.1bn gross savings €0.2bn gross savings €1.3bn AMEE c.21% €0.2bn gross savi
Slide 28: A programmatic approach to unlock savings and build a cost conscious culture
A programmatic approach to unlock savings … …and progressively building Examples a cost conscious culture Multi-year outlook with >7,500 NEXT PRACTICES INITIATIVES identified for 2021-2025 BEST PRACTICES 65 Connected Breweries DISCIPLINED FUNNEL APPROACH COST DISCIPLINE 6% by end ‘22 tracked in GLOB
Slide 29: Outlook 2022
Outlook 2022 EverGreen strategy on-track. Current fast-changing external circumstances require constant navigation between long- term transformation and short-term financial delivery. Uncertain environment remains in 2022, with continued impact of COVID-19. Input costs per hectoliter will increase i
Slide 30: On track to deliver on our long-term goals
On track to deliver on our long-term goals Deliver SUPERIOR TOP-LINE GROWTH ACCELERATED INVESTMENT to meet fast-changing consumer and customer needs Growth STEP UP capital efficiency Net debt / EBITDA ratio <2.5 30-40% dividend pay-out ratio Capital Profitability efficiency Deliver €2BN COST SAVINGS
Slide 31: Q&A
Q&A 31