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August 2020 | Heineken N.V. | Heineken Holding N.V.
HEINEKENInvestor Presentation
1
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 forward-looking statements.
Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest rate and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports.
You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. HEINEKEN does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
Market share estimates contained in this presentation are based on outside sources such as specialised research institutes in combination with management estimates.
2
Approach to long-term value creation
1 Return on Sales - Operating profit (beia) divided by revenue; based on consolidated financials2 RONA - Return on Net Assets
HEINEKEN Golden Triangle
Revenue & Market Share
Growth
Return onSales1 RONA2
Focus on efficient deploymentof capital and working capitalefficiencies
Continuous improvement of operating profit margin, driving costs and efficiencies throughout the business
Focus on premium segment to drive superior top line growth and market share
3
Global balanced footprint with growth potential
18%
36%13%
34%
Cons. Beer volumes by region (2019)
AMEEAmericasASPEurope
10%
29%
26%
35%
Operating profit (beia) by region (2019)
AMEEAmericasASPEurope
160+Breweries
70+Countries
300+Brands
241mhlConsolidated Beer Volume
54%Of profit from
developing markets
85,000+Direct Employees
Operating Companies
Joint Ventures/ Associates
Export
Licences
4
Limited reliance on individual markets
Markets Share of operating profit
HEINEKEN operating profit (BEIA)
Two countries have >10% of profits; Mexico & Vietnam
Diversified mix of countries: Established markets with steady improvements Developing markets at different stages of growth
Large collection of small markets with growth potential
100%
~80%
>50
17
5
0 10 20 30 40 50 60 70 80
Asahi
Castle
Amstel
Stella Artois
Corona
Budweiser
Tuborg
Guinness
Carlsberg
Heineken
1-5% 5-10% 10-20% >20%
Heineken®: the most international beer brand
Source: Global data 2018
Top 10 global beer brands by market reach
The beer brand with the widest reach
Present in over 190 markets
Meaningful presence in >70 markets
Brand size (mhl)
38
12
9
17
53
45
12
11
14
23
Number of markets
6
Strong local operations with local portfolios
Top 10 countries by volumes
Mexico Nigeria Russia Poland UK USA Vietnam France Brazil Spain
International& Domestic Premium
Heineken®
StrongbowBohemiaAmstel
Heineken®
TigerGulder
Heineken®
MillerAmstel
Krusovice
Heineken®
DesperadosNamyslow
Zywiec
Heineken®
Birra MorettiDesperados
Strongbow CiderBulmers Cider
Old Mout Cider
Heineken®
Amstel LightStrongbowLagunitasDos EquisRed StripeNewcastle
Heineken®
TigerStrongbow
Amstel
Heineken®
Desperados Affligem
Edelweiss
Heineken®
EisenbahnSol
Baden Baden
Heineken®
DesperadosAmstel OroCruzcampo
EspecialAguila
Upper Mainstream & Mainstream
CoorsDos Equis
SolIndio
Tecate
’33’ ExportStar
Amstel
OkhotaAmstel
WarkaKrolewskie
SpecjalLezajsk
Kronenbourg 1664Amstel Tecate Larue Special Pelforth Amstel
DevassaCruzcampo
Amstel
LowerMainstream & Value
SuperiorCarta Blanca
Kloster
LifeGoldberg
Tri MedvedyaZhigulievskoe
BochkarevTatra Foster’s
John Smith’sLarueBivina
’33’ ExportPanach
SchinKaiserGlacialBavaria
Cruz del Sur
February 2020 | Heineken N.V. | Heineken Holding N.V.
HEINEKENBusiness Priorities
8
Five business priorities to continue driving long term value creation
9
Heineken® the most trusted international beer brand
Heineken® 0.0 grew double digits in all regions, except Europe with mid-single digit growth
Heineken® Silver more than doubled in Vietnam and was launched in China in April 2020
Successful start of partnership with CRB in China, accelerating performance to double digit growth quarter over quarter.
#EnjoyResponsibly resources shifted towards #SocialiseResponsibly
Heineken® volume
-2.5%
14 Markets with double digit growth
Sources: Kantar; Nielsen, HY20 results.
Gain or stable share in 83% of
key markets
10
Accelerating our connections to customers & consumers
Source: HY20 results
B2C platforms in 17 markets Beerwulf >3 million visitors, 50% new >2x number of home-draught units sold
during lockdown
B2B platforms in 24 markets >€1bn revenues >60k customers LY in traditional
channels, expected to double in 2020
Accelerating growth aross all continents
11
Drive End-to-End performance
Examples of End2End initiatives
Continuous improvement on New Product Implementation (NPI) process led to faster and more efficient brand and innovation launches (e.g. Heineken® 0.0 rolled out in 57 markets in less than three years).
Deployment of BASE in small and medium size operations in ASP and AMEE to standarize core business processes and build new capabilites at scale to increase the level of service to customers.
SellMake Support
ConsumerCustomer
Revenuemanagement
Sell more for more
ZBC
Elliminate bad costs
Note: comments refer to FY 2019 results
12
Engage and develop our people
Develop great business driven leaders
Grow our talent pipeline at all levels
Build critical capabilities and strengthen functional excellence
Leverage diversity & our culture
Female role models in HEINEKEN Supply Chain
August 2020 | Heineken N.V. | Heineken Holding N.V.
Brewing a Better World
14
FY 2019 update
Brewing a Better World
29% decline in rate of accidents vs 2018, but with 11 fatalities
3.4 hl per hl of water use on average, 3.1 hl per hl in water scarce areas. Ahead of 2020 targets, so launched water ambition ‘Every Drop’ in March 2019
19% of electric and thermal energy in production from renewables (2018: 15%; 2030 target: 70%)
Aiming to reduce plastic use
44% of agricultural supplies in Africa locally sourced (2018: 39%; 2020 target: 60%)
Over 10% of Heineken® media spend on responsible consumption awareness campaigns in over 60 markets
Note: comments refer to FY 2019 results
15
Brewing a Better World
16
Every Drop: protecting water resources
33% decrease in water consumption (hl/hl) compared with 2008
3.1 hl/hl average in water-stressed areas surpassing the 2020 target
15 brewery sites now started water balancing projects, incl. nature-based solutions like reforestation and wetland restoration
97% of wastewater volume treated before discharge
Launched Every Drop, the 2030 water ambition supporting watershed health in water-stressed areas
Water balancing in Mexico through reforestationSince the end of 2018, we have achieved our water balancing target for the Monterrey Brewery, returning 1.15 million cubic meters of water per year to the local watershed. By 2020, 1,300,000 trees will be planted.
Source: FY 2019 results
17 Source: FY 2019 results
18
Drop the C: reducing CO2 emissions
Exceeded target with 49% decrease in CO2 emissions in production compared to 2008
Increased renewable energy in our breweriesto 19%. 2030 ambition = 70%
>150,000 Green Fridges: 50% less emissions compared to 2010
13% decrease in emissions from distribution compared to 2010/2011
Developed regional strategies to manage impacts of plastic* packaging * 6% of our total packaging by volume
Source: FY 2019 results
19
Growing with Communities
Creating economic and social impact 85,000 employees in more than 70 countries €12 billion total tax contribution 27.6% effective income tax rate
Investing in our communities Local sourcing projects support > 140,000 farmer
households. Providing access to new crops, improved varieties, agricultural and business skills training
Since 2007, the Heineken Africa Foundation committed to over 119 projects with a focus on Mother & Child care and Water, Sanitation and Hygiene (WASH)
Source: FY 2019 results
20
Sourcing sustainably
37% of raw materials sourced sustainably (target: 50% by 2020)
Increased local sourcing of agricultural raw materials in Africa to 44%, supporting smallholder farmers. More to do to reach 60% target, investing in malting capacity in SA and Ethiopia.
97% compliance with HEINEKEN’s 4 step Supplier Code Procedure across operating companies, ahead of target
We enhanced the supplier screening process to identify high-risk suppliers
Source: FY 2019 results
21
Advocating responsible consumption
63 markets (95%) worldwide dedicated at least 10% of Heineken® media spend to Responsible Drinking campaigns.
35 markets have partnerships in place to address alcohol-related harm
5.7% of total global volume contributed bylow- and no-alcohol options
Ingredients and nutrition information on labels: 91% of beer and cider brands include information on pack or online
When You Drive, Never DrinkFormula 1® is the global platform to promote ‘When You Drive, Never Drink’ message. Nico Rosberg, 2016 FIA Formula 1 Drivers’ World Champion starred in the latest film: No Compromises
Source: FY 2019 results
22
Safety first
38% reduction in accident frequency since 2015.
But 11 fatalities in 2019 (of which 6 on the road).
Our focus will remain on Life Saving Rules 92% compliance level in breweries
95% compliance level in projects, commerce, distribution and logistics
Delivery now nearing completion
We installed Telematics in all vehicles worldwide to reduce driving-related accidents. This contributed to a reduction in road accidents by 27% compared to 2018.
Source: FY 2019 results
23
Values and Behaviours
We launched a new mandatory Code of Business Conduct training, on how to deal with business conduct dilemmas. In six months, more than 53,000 employees completed this training (online or classroom)
We embedded Brand Promoters safety across our business and significant progress has been made. Training delivered to 23,000 Brand Promoters, agencies and own employees.
Source: FY 2019 results
24
Respecting Human Rights
We continue working on human rights due diligence process to better understand and address the human rights risks across operations and value chains. For this we follow the UN Guiding Principles on Business and Human Rights.
To date, we have completed risk assessments and workshops in 15 operating companies around the world.
Additional we conducted internal in-depth audit reviews and external 3rd party audits, on topics like outsourcing, fair wages and non-discrimination. Outcomes enable us to address areas for improvement
Source: FY 2019 results
25
Inclusion & Diversity
61 nationalities among our senior managers
Female representation at senior levels increased to 23%
900 leaders attended inclusive leadership workshops.
Operating companies and global functions integrating I&D into their people plans and everyday business practices.
Launch of HEINEKEN Open & Proud (HOP), our global internal platform supporting the LGBT+ community.
The women@ Heineken network of 29 ambassadors in Mexico work together with one simple purpose: bringing women together to help other women.
Source: FY 2019 results
26
Connect in a digital world
Connect with consumers with personalized content at scale
Win with on-line retailers
Be the on-line partner of choice for fragmented trade
Build new business, with digital at the core
Connect our operations end-to-end
Source: FY 2019 results
Amsterdam | August 3, 2020 | Heineken N.V.
Heineken N.V.
2020 Half YearEarnings Release
Dolf van den Brink, CEOLaurence Debroux, CFO
DisclaimerThis 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 forward-looking statements.
Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as future market and economic conditions, developments in the ongoing COVID-19 pandemic and related government measures, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this presentation.
HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this presentation. Market share estimates contained in this press release are based on outside sources, such as specialisedresearch institutes, in combination with management estimates.
Dolf van den Brink – CEO and Chairman of the EB
30
Our people taking care of each other & communities
31
Supporting Our Customers
More than 21 marketsMore than 50.000 outlets
More than 300.000 vouchersMore than 10 million euro raised
32
Sustaining growth in a fast changing world
NAVIGATE THE CRISISFocus on people & safety Focus on consumers and customersFocus on costs
BUILD THE FUTURE
2020 2021 2022 and beyond
Leverage our unique strengthsAdapt fast to new realitiesChart our next growth chapter
33
2020 HY Key Highlights
ConsolidatedBeer Volume
-11.5%
Net Revenue(Beia) OG
-16.4%
Operating Profit (Beia) OG
-52.5%
Net Profit (Beia) OG
-75.8%
Heineken® Volume
-2.5%
Net Revenue(Beia) OG per hl
-3.6%
Operating Profit Margin (Beia)
8.9%
Diluted EPS(Beia)
€0.39
34
AMEE Region
ConsolidatedBeer Volume
Price Mix on a constant
geographic basis
Net Revenue(Beia) OG
Operating Profit (Beia) OG
South Africa operations suspended from late March to May. New ban on sale of alcohol reintroduced in July. Heineken® 0.0 grew 3x.
Nigeria gained market share. Maltina, the leading brand of our non-alcoholic portfolio, was broadly flat versus last year.
Premium portfolio continued to grow in 12 markets, including Nigeria, Ethiopia and Ivory Coast.
-15.9% +1.4% -16.6% -61.7%
35
Americas Region
ConsolidatedBeer Volume
Price Mix on a constant
geographic basis
Net Revenue(Beia) OG
Operating Profit (Beia) OG
Mexico ban on production of alcohol in April and May. Strong June as customers rebuilt inventories. New restrictions in July.
Premium and mainstream portfolios in Brazil grew double digits, led by Heineken® and Amstel. Highest market share ever, now with value share ahead of volume share.
US with a good relative performance of Heineken® driven by Heineken® 0.0.
-15.0% +5.2% -12.2% -31.0%
36
APAC Region
ConsolidatedBeer Volume
Price Mix on a constant
geographic basis
Net Revenue(Beia) OG
Operating Profit (Beia) OG
Strong performance of Vietnam driven by the growth of the mainstream portfolio and innovations.
Tourism bans and lower exports threatening economies across the Region like Cambodia and Indonesia
Heineken® became the #1 brand in the premium segment inSouth Korea.
-4.7% -10.4% -15.7%-3.1%
37
ConsolidatedBeer Volume
Price Mix on a constant
geographic basis
Net Revenue(Beia) OG
Operating Profit (Beia) OG
Europe Region
On-trade decline amplified operational deleverage. In July, estimate 90% of outlets have reopened.
Growth in the off-trade driven by continued growth of premium and market share gains in many markets, including UK, France, Italy and the Netherlands.
Premiumisation trends still there, outperforming in the off-trade by the strong performance of Desperados, Affligem, Birra Moretti and Ichnusa.
.
-8.1% -6.4% -20.8% -87.0%
38
Heineken® the most trusted international beer brand
Heineken® 0.0 grew double digits in all regions, except Europe with mid-single digit growth
Heineken® Silver more than doubled in Vietnam and was launched in China in April 2020
Successful start of partnership with CRB in China, accelerating performance to double digit growth quarter over quarter.
#EnjoyResponsibly resources shifted towards #SocialiseResponsibly
Heineken® volume
-2.5%
14 Markets with double digit growth
Sources: Kantar; Nielsen.
Gain or stable share in 83% of
key markets
39
Accelerating our connections to customers & consumers
B2C platforms in 17 markets Beerwulf >3 million visitors, 50% new >2x number of home-draught units sold
during lockdown
B2B platforms in 24 markets >€1bn revenues >60k customers LY in traditional
channels, expected to double in 2020
Accelerating growth aross all continents
40
Financial Overview
Key Financials€m unless otherwise stated 2020 HY Total Growth Organic Growth
Revenue 11,156 -18.0%
Net revenue (beia) 9,243 -19.2% -16.4%
Operating profit (beia) 827 -53.6% -52.5%
Operating profit (beia) margin 8.9% -662 bps
Net profit (beia) 227 -78.5% -75.8%
Net profit / loss -297
Diluted EPS (beia) in € 0.39 -78.6%
Free operating cash flow -809
Net Debt/EBITDA (beia) ratio 3.5x 0.6x
41
Net Revenue: 16.4% Organic Decline
Organic decline €1,883m
Consolidationimpact
2019 HY Net revenue (beia)
Currencytranslation
Total volume Net rev/hl 2020 HY Net revenue (beia)
11,446
€m
9,243
-0.5%-2.3%
-3.6%-13.4% €m
42
1,781
827
Operating Profit BEIAHY1 2019
Consolidationchanges and currency
translation
Net Revenue lessvariable expenses*
Mitigation Others Operating Profit BEIAHY1 2020
Variable expenses include input costs, goods for resale, transportation and other variable expenses.
c.500c.70
Organic decline €935m84% - EUR, MX & SA
€m
€m
20
c.1,360
Operating Profit (beia): 52.5% Organic Decline
43
Diluted EPS (beia): €0.39, -78.6%
Shares to CREOrganic growth2019 HYdiluted EPS (Beia)
2020 HYdiluted EPS (Beia)
Currencytranslation
Consolidation impact
€1.84
€0.39
Total decline 78.6%
-€0.08
€0.03
-€1.39 -€0.01
Free Operating Cash Outflow of €809 million
€m unless otherwise stated 2020 HY 2019 HY Vs. LY
Cash flow from operations (before changes in working capital) 1,577 2,633 -1,057
Change in inventories -155 -332 177
Change in trade and other receivables 7 -769 776
Change in trade and other payables and returnable packaging deposits -548 818 -1,365
Change in working capital -696 -283 -413
Capital expenditure1 -1,064 -1,005 -59
Free operating cash flow -809 578 -1,386
¹ Related to purchase of property plant and equipment
45
Outlook for FY 2020of 2020
Guidance for 2020 withdrawn in April.
Situation remains volatile and uncertain.
Major negative macroeconomic consequences and impact from social distancing measures.
Channel and product mix expected to continue to adversely impact revenue and input cost per hectoliter.
Strict cost mitigation actions to continue in H2 with increased focus on fixed cost base going forward.
46
Sustaining growth in a fast changing world
NAVIGATE THE CRISISFocus on people & safety Focus on consumers and customersFocus on costs
BUILD THE FUTURE
2020 2021 2022 and beyond
Leverage our unique strengthsAdapt fast to new realitiesChart our next growth chapter
47
#SocialiseResponsibly
48
Back to the Bars
49
Net debt/EBITDA (beia) was 3.5x at 2020 HY
Committed to long term target <2.5x A well balanced maturity profile
0.80.7
3.3
2.6
2.2 2.2
2.82.6 2.5
2.4 2.32.5
2.3
2.6
3.5
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 HY
Net Debt/EBITDA (beia) ratio
50
“HEINEKEN has entered the crisis with a strong financial position, a diversified global footprint,
great brands, superior consumer and customer intimacy and highly dedicated and talented teams.
Moving forward and as markets recover, we will leverage these unique strengths to chart our next
growth chapter”
Dolf van den BrinkChairman Executive Board / CEO
50
HEINEKEN Leadership
August 2020 | Heineken N.V. | Heineken Holding N.V.
Regional Update
52
A long standing presence
Africa Middle East & Eastern Europe
OpCo’sConsolidated
AlgeriaBurundi
DRCEgypt
EthiopiaIvory Coast
KenyaLa Reunion
LebanonMozambique
NigeriaRussia
RwandaSierra LeoneSouth Africa
TanzaniaTunisia
UgandaZambia
Joint VenturesNon-consolidated
Congo-BrazzavilleIsrael
NamibiaUAE
LicenseOperations
CameroonGhanaJordan
Morocco
Consolidated
Joint Ventures/ Associates
Export
Licences
53
Leadership position, committed for the long term
Nigerian Breweries
9 breweries and 2 malting plants#1 or #2 brands in all segments
Key Facts The Nigerian beer market remains
very attractive given its high growth potential and the macroeconomic environment is starting to show improving trends
2019 performance is still being affected by low consumer confidence, excise increase and cost pressure
Nigerian Breweries is uniquely positioned to capture the most value from this growth and its strategy to Win with Nigeria! will further solidify market leadership
Segment Core brands
International premium
National premium
Mainstream
Discount
Comprehensive brand portfolio
Aba Malting Plant
Kudenda Malting Plant
Onitsha
Makurdi
Lagos
KakuriKudenda
Ota
ibadan
Ama
Aba
Awo-Omamma
Ljebu-Ode
Source: Global data, Company data - 2018
54
#1Jamaica
#1St. Lucia
#1Bahamas
Operating Companies
Joint Ventures
Export
HEINEKEN’s position in premium segment
Americas: A collection of highly diverse markets
11 OpCos7 JVs
Export business to more than 40 markets
Key Facts
#3United States
#1Central America & Caribbean
#2Mexico
#1Argentina
#1Puerto Rico
#1Haiti
#1Suriname
#1Costa Rica
#1Panama
#1French West Indies
#3Canada
#2Brazil
#1Chile
Source: Global data, Company data - 2018
55
Attractive growth prospects for beer
Heineken Mexico
7 Breweries#2 Position
Key Facts HEINEKEN’s largest beer operation
Positive underlying market fundamentals, including population growth, urbanisation, growing middle class
Meoqui brewery, the largest greenfield in HEINEKEN’s history, opened in February 2018 contributing to the efficiency of local operations
Exciting premium segment potential
Targeted regional strategy to drive growth
Segment Core brands
Premium
Affordable-Premium
Mainstream
Below Mainstream
Value
Comprehensive portfolio
Source: Global data, Company data - 2018
56
Portfolio strategy driving improved market share
Heineken Brazil
15 breweriesc.20% Market share
#2 Position in market
Key Facts Marked acceleration of premium in
2019
Heineken® complemented by premium portfolio holding >30% market share in the premium segment
Schin provides increased scale to further develop premium volumes, especially in the North / North East
Synergies of Brazil Kirin transaction from brewery footprint optimisation, procurement, logistical, and SG&A savings
Segment Core brands
Premium andSuper Premium
Upper Mainstream & Mainstream
Lower Mainstream & Value
Strong portfolio
São Paulo HQ
Source: Global data, Company data - 2018
57
Relevant presence in premium segment
Heineken USA
Source: Global data, Company data - 2018
9 Distribution Centres8 Offices
#2 Premium Position
Key Facts Economic indicators are improving
Premium segment outperforming led by Mexican brands and craft
Segment Core brands
Premium & Super Premium
Mainstream
Strong portfolio
White Plains HQ
58
14HEINEKEN
Carlsberg
ABI
Kirin
Asahi
Best placed to access regional growth opportunities
Asia Pacific: a unique footprint in the region
Number of #1 and #2 market positions in Asia-Pacific (by volume)
Heineken has leadership in the largest number of markets1
HEINEKEN market leadership
HEINEKEN market presence
#1 PositionIndiaChina
IndonesiaMalaysia
CambodiaNew Caledonia
Papua New GuineaSingapore
Solomon IslandsTimor-Leste
LaosMyanmar
New ZealandSri LankaTaiwan
Vietnam
#2 Position
Source: Global data, Company data - 2018
59
An attractive beer market
Heineken Vietnam
6 Breweries#2 Position
#1 position in premium segment
Key Facts
Favourable beer market volume trends, with CAGR +4.4% expected by Canadean 2018-2023
Premium volume outperformance due to growing middle class
Continue to fuel the growth of Tiger (within premium)
Accelerate mainstream and economy via Larue and Bivina
Developing Cider category with game changer ambition
Segment Core brands
Premium
Mainstream
Economy
Strong portfolio
Source: Global data, Company data - 2018
60
Strong potential for growth
United Breweries Limited
Source: World Bank population estimates, Global data, Company data - 2018PCC: Per Capita Consumption
HEINEKEN’s stake in UBL 46.52%
India beer PCC is slightly above 2L
2018 beer market size 28mhl
Strict regulations on the production, transportation, distribution, promotion, pricing and sale of alcohol
UBL has the leading beer brand with Kingfisher (UBL market share 48%)
Heineken®: rolled-out in key cities
21 breweries
12 contract breweries
21 Breweries12 contract breweries
#1 Market position
Key Facts
Segment Core brands
Super Premium
Premium and Premium Plus
Value
Strong portfolio
61
Unlocking premium potential
China Resources Beer Holdings
Source: World Bank population estimates, Global data, Company data - 2018 PCC: Per Capita Consumption
HEINEKEN’s stake in CR Beer 20.6%
PCC 35L, with signficant growth potential
Snow, No. 1 beer brand by volume in the world
Market leader with MS ~ 21%
Best-in-class, nationwide distribution network
3rd player in the premium segment
Started distribution of Heineken®
in May 2019
Premium segment expected to outgrow the beer industry
80 BreweriesPresent in 25 out of 34 regions in China
#1 Market position
Key Facts Strategic collaboration
(1) CRH (CRE) Limited and Commotra Company Limited are beneficially wholly-owned subsidiaries of CRH.
62
HEINEKEN Beer Volume Market Share
Europe: Strong market positions driving growth
Source: Global data 2018, BBPA, other
#1 position
#2 position
< #2 position
Export markets
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 scale provides unique opportunities to meet fast changing consumer preferences.
#1 PositionAustriaGreece
ItalyFrance
NetherlandsSlovakiaSloveniaHungary
United KingdomSerbia
BelgiumCroatiaBulgariaIrelandPoland
PortugalRomania
SpainSwitzerland
#2 Position
63
Wholesale strategically important in selected markets
Key Facts Business model Wholesale operations focused on on-
trade service and particularly draught
Providing synergies with commercial brewing operations: Higher proximity to customer Better access to broad range of data Reliable and secure access to markets Consumer touchpoints
3rd partyWholesale
Outlets
HNVWholesale
Off Trade
Cash & Carry
Brewery
On Trade
64
Star Pubs & Bars strategicallyimportant in the UK
A highly successful & profitablebusiness model
Strategically important to the UK business
>2,500 leased and tenanted pubs since Punch acquisitionwith a wide UK footprint
Star Pubs & Bars strong investment & performance track-record Attractive returns – Margin, Cashflow & RONA
Hands-on experience & understanding of the On Trade Unique consumer touchpoints Synergies with on trade brewing operations Unique platform for seeding innovations
UK Avg. Beer & Cider Pubs
Operating profit margin(2019)
65
HEINEKEN Executive Team
Dolf van den BrinkChief Executive Officer &Chairman of the Executive Board
Laurence DebrouxChief Financial Officer & Member of the Executive Board
Søren Hagh President Europe
Marc BusainPresident Americas
Jan Derck van KarnebeekChief Commercial Officer
Magne SetnesChief Supply Chain Officer
Jacco van der LindenPresident Asia Pacific
Roland PirmezPresident Africa Middle East and Eastern Europe
Chris van SteenbergenChief Human Resources Officer
Stacey TankChief Corporate Affairs & Transformation Officer
Ronald den ElzenChief Digital & Technology Officer
Combining Experience and fresh perspective
66
HEINEKEN Ownership structure
Heineken N.V. shares held by Heineken Holding N.V. equals the number of shares issued by Heineken Holding N.V.
FEMSA
Public
HEINEKEN Holding N.V.
HEINEKEN N.V.
Supervisory board
Executive board
41.363%
35.139%
L’Arche Green N.V.
52.599%
8.632%
50.005%
Board of directors
12.262%
Public
Legal entities
Public shareholders
Management
67
Sponsored Level 1 ADR Programmes
Heineken Holding N.V.Bloomberg ticker: HKHHY
ISIN: US4230081014Cusip: 423008101Exchange: OTCQX
Ratio: 2 ADRs: 1 Ordinary Share
Bloomberg ticker: HEINYISIN: US4230123014
Cusip: 423012301Exchange: OTCQX
Ratio: 2 ADRs: 1 Ordinary Share
Depositary bank: Deutsche Bank Shareholder Servicesc/o American Stock Transfer & Trust CompanyADR broker helpline: +1 866 249 2593E-mail: [email protected] website: www.astfinancial.comDepositary Bank’s local custodian: Deutsche Bank, Amsterdam
Investor Relations contact details
+31 20 523 9590 (Amsterdam)E-mail: [email protected]
Heineken N.V.
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Upcoming events
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Calendar
28 October 2020 — Trading update for Q3 2020
10 February 2021 — Full Year 2020 Results, incl conference call
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We Are HEINEKEN.