Heineken Nv · EURONEXT:HEIA
Heineken Nv — H1 2017 Earnings Presentation
20 slides from Heineken Nv's earnings presentation, Jul 31, 2017
Slide 1: 2017 Half Year Earnings Release HEINEKEN N.V.
2017 HALF YEAR EARNINGS RELEASE HEINEKEN N.V. Jean-François van Boxmeer, CEO & Laurence Debroux, CFO AMSTERDAM, 31 JULY 2017 1
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: 2017 HY Key Highlights
2017 HY Key Highlights Organic revenue +5.7%¹ with revenue per hectolitre up +3.4% ¹ Consolidated beer volume +2.6% with growth in all regions Heineken® volume² +3.9% Operating profit (beia) +11.8% organically and operating margin +34bps¹ Net profit (beia) of €1,036 million, up 10.5% organ
Slide 4: Regional Review
Regional Review 2017 HY Organic Growth % AFRICA MIDDLE EAST & HEINEKEN NV AMERICAS ASIA PACIFIC EUROPE EASTERN EUROPE Consolidated beer volume 2.6 1.5 2.8 6.3 1.9 Revenue per hl 3.4¹ 11.9 2.9 -1.2 1.9¹ Revenue 5.7¹ 11.9 6.3 4.5 3.6¹ Operating profit (beia) 11.8 12.4 15.9 8.8 16.1 1 Excluding an acco
Slide 5: Heineken volume +3.9%, positive momentum
Heineken volume +3.9%, positive momentum ® Heineken® volume¹ growth accelerated in Q2 Growth across all regions apart from Asia Pacific due to Vietnam & China Double digit growth in Brazil, South Africa, Russia, Italy, Mexico, South Korea, Canada, Romania and Hungary Strong brand growth in F
Slide 6: Innovation a key driver of growth
Innovation a key driver of growth Embedded in HEINEKEN company strategy Leading innovation in Cider Seizing the low/no alcohol opportunity Total volume 2.3 m hectolitres (HY16: 2.2 m) Total volume 6.1 m hectolitres (HY16: 6.2 m) Strong growth in South Africa, Vietnam, Poland, Ireland Europe
Slide 7: Acquisition of Brasil Kirin
Acquisition of Brasil Kirin Acquisition announced on 13 February 2017 and closed 31 May 2017 The new HEINEKEN Brasil is well positioned in Premium beer Decision to leverage Kirin’s existing route to market with the HEINEKEN 30% portfolio in the future 25% 20% Combined business to form a strong
Slide 8: Proposed Acquisition of Punch A
Proposed Acquisition of Punch A 15 December 2016 - Vine Acquisitions Limited (Vine) recommended cash offer for Punch Taverns plc. HEINEKEN UK back to back deal with Vine to acquire Punch Securitisation A (Punch A) c.1,900 pubs Aggregate consideration £305 million1 for the shares in Punch A and a
Slide 9: Financial Overview
Financial Overview Key Financials €m unless otherwise stated 2017HY 2016HY Total Change (%) Organic Change (%) Revenue 10,475 10,094 3.8 5.7¹ Operating profit (beia) 1,805 1,705 5.9 11.8 Operating profit (beia) margin 17.2% 16.9% 34bps¹ Net profit (beia) 1,036 977 6.0 10.5 Net profit 871 586 48.6 Di
Slide 10: Revenue: +5.7% Organic Growth
Revenue: +5.7% Organic Growth Organic growth +5.7% +3.4% €m +1.2% +2.3% €m -3.1% 10,094 10,475 HY16 Revenue Consolidation impact Currency translation Total volume Rev/hl HY17 Revenue 10
Slide 11: Operating Profit (beia): +11.8% Organic Growth
Operating Profit (beia): +11.8% Organic Growth +11.8% €m €m -0.6% -5.3% €1,805 €1,705 HY16 Operating profit (beia) Consolidation impact Currency translation Organic growth HY17 Operating profit (beia) 11
Slide 12: Diluted EPS (beia) €1.82, +6.0%
Diluted EPS (beia) €1.82, +6.0% +6.0% +€0.18 -€0.03 €1.82 -€0.05 €1.71 HY16 Diluted EPS (beia) Consolidation impact Currency translation Organic growth HY17 Diluted EPS (beia) 1 1Note: due to rounding, this table does not cast exactly 12
Slide 13: Free Operating Cash Flow of €746 million
Free Operating Cash Flow of €746 million Capital expenditure1 as % of revenue €m unless otherwise stated 2017HY 2016HY vs. LY (€ million) Cash flow from operations (before change in working capital 2,438 2,305 133 and provisions) 8.5% 2,000 Change in working capital -523 -502 -20 8.0% 7.8% 1,600 7.1
Slide 14: Full Year Outlook
Full Year Outlook Economic conditions are expected to remain volatile and we have assumed a negative impact from currency comparable to 2016 We expect further organic revenue and profit growth Excluding major unforeseen macro economic and political developments as well as the impact of Brasil
Slide 15: Appendix
2017 HALF YEAR EARNINGS RELEASE HEINEKEN N.V. Appendix 15
Slide 16: Africa Middle East & Eastern Europe
Africa Middle East & Eastern Europe Still challenging conditions, but improved volume trend Mhl/€m 2017HY 2016HY Total Change (%) Organic Change (%) Revenue 1,523 1,646 -7.5 11.9 Revenue/hl (in €) 68 73 -7.5 11.9 Operating profit (beia) 218 267 -18.4 12.4 Operating profit (beia) margin 14.3% 16.2% -
Slide 17: Americas
Americas Continued strong performance driven by Mexico and Premium in Brazil Mhl/€m 2017HY 2016HY Total Change (%) Organic Change (%) Revenue 2,801 2,485 12.7 6.3 Revenue/hl (in €) 88 86 1.5 2.9 Operating profit (beia) 521 458 13.9 15.9 Operating profit (beia) margin 18.6% 18.4% 20bps Total volume 3
Slide 18: Asia Pacific
Asia Pacific Vietnam and Cambodia continue to drive good results Mhl/€m 2017HY 2016HY Total Change (%) Organic Change (%) Revenue 1,447 1,345 7.6 4.5 Revenue/hl (in €) 112 114 -1.3 -1.2 Operating profit (beia) 454 419 8.2 8.8 Operating profit (beia) margin 31.4% 31.2% 20bps Total volume 12.9 11.8 9.
Slide 19: Europe
Europe Strong profit momentum, strategy is delivering Mhl/€m 2017HY 2016HY Total Change (%) Organic Change (%) Revenue 5,028 4,933 1.9 3.6¹ Revenue/hl (in €) 97 97 0.3 1.9¹ Operating profit (beia) 665 581 14.5 16.1 Operating profit (beia) margin 13.2% 11.8% 150bps¹ Total volume 48.3 47.3 2.1 2.1 of
Slide 20: US Dollar Hedging
US Dollar Hedging Position Impact versus previous year (after tax) Net inflow Hedged Net Profit Year in USD m Part 2 Hedged Rate 3 Year in EUR m 2013A 556 556 1.31 2013A 11 2014A 553 553 1.31 2014A 0 2015A 567 567 1.30 2015A 4 2016A 518 518 1.16 2016A 36 2017F 510 489 1.13 2017F1 8 2018F 503 320 1.1