HEINEKEN: Positioned for growth in Asia Pacific · Leveraging Heineken® brand success Position Tiger as the iconic Asian beer brand Accelerate innovation Capitalise on strength of

HEINEKEN: Positioned for growth in Asia Pacific Roland Pirmez

Region President, HEINEKEN Asia Pacific

London | 21 March 2014 | Heineken NV

What’s Brewing Seminar

2

Agenda HEINEKEN: Positioned for growth in Asia Pacific

1 Asia Pacific: A highly Attractive Growth Region

2 HEINEKEN Asia Pacific: Uniquely Positioned to Win

3 APB: Strong Growth Momentum

4 Regional Strategic Priorities

5 Key Markets Update

3

59

48

29

79

70

45 43

39 38 34

29

22 21 19

13

6 2 1

Europe Rest ofWorld

AsiaPacific

Australia NewZealand

Japan SouthKorea

China Laos Vietnam Thailand Taiwan Singapore Cambodia PapuaNew

Guinea

Malaysia India Indonesia

Asia Pacific is a diverse region with untapped growth potential

Asia Pacific has low average PCC...

Source: Canadean

Note: Rest of the world excludes Asia Pacific and Europe; Asia Pacific average includes listed countries only

...and a diverse set of markets with significant potential for growth

Per Capita Consumption 2013 (in litres per annum)

4

73% 72% 70% 69% 63% 62% 61% 59% 57% 49% 47% 47% 45% 44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Laos Papua NewGuinea

Cambodia Philippines India Malaysia Indonesia Myanmar Vietnam China NewZealand

Australia Thailand Singapore

Asia Pacific has a younger average population base

Source: UN World Population Prospects; Canadean 2014

Asia Pacific has a young and growing population…

6% 7% 6% 7% 5% 6% 4% 4% 4% 2% 3% 4% 2% 8%

% population under the age of 35 (2015 forecast)

Total population growth (2013-18F)

Asia Pacific average

52%

Europe average

41%

5 Source: EuroMonitor

...Increasing wealth Rising income levels across Asia

Percentage of households in China Percentage of households in India

Percentage of households in Vietnam Percentage of households in Thailand

0%

50%

100%

2007 2012 20170%

50%

100%

2007 2012 2017

0%

50%

100%

2007 2012 2017

21M 23M 25M

402M 434M 464M 215M 233M 250M

19M 21M 23M

0%

50%

100%

2007 2012 2017

CAGR

24%

19%

6%

-9%

-15%

23%

29%

13%

0%

-11%

22%

19%

3%

-7%

-12%

11%

7%

-1%

-6%

-9%

CAGR

CAGR CAGR

<$2.5K $2.5-5K $5-10K $10-25K >$25K Annual Income

6

Rural Urban

84%

75% 73%

56% 54%

50%

39% 36%

34% 33%

21%

13%

SouthKorea

Malaysia Taiwan China Indonesia Philippines Laos Thailand Vietnam India Cambodia PapuaNew

Guinea

2011 2015

Urbanisation rate is set to rise across Asia Pacific

Rising urbanisation to support increased beer consumption

Source: United Nations, Department of Economic and Social Affairs, Population Division

http://esa.un.org/unpd/wup/CD-ROM/Urban-Rural-Population.htm

Rising urbanisation a key driver of increased beer consumption

Asia Pacific Average

59%

Europe Average

74%

Average PCC in Vietnam

2x








7

8.7%

3.5%

IPS Mainstream

24%

15%

8% 7% 6% 6%

4% 3%

2% 2% 0.3%

Taiwan Vietnam Cambodia Indonesia Thailand Laos SouthKorea

India Papua NewGuinea

China Philippines

1. Includes lager market only

Source: Canadean, HEINEKEN

Premium segment opportunity in Asia Pacific is compelling

IPS penetration is low in large markets, offering significant upside for growth

Premium segment expected to grow significantly ahead of mainstream

% IPS of total beer market 2013 Asia Pacific beer growth

Total beer

market size

2013 (MHL)

Forecast volume CAGR in

Asia Pacific (2013-18F)

Asia Pacific average

3.9%

Europe average

10%

5 32 3 3 19 3 21 22 1 536 16

8

112

25

15 152

34 5

31 (13) 209

China SE Asia & PacificIslands

Rest of Asia andOceania

Total Asia Pacific Latin America North America Africa and MiddleEast

Europe World

Incremental beer market volume (2013-18F) in MHL3

Note. Countries included in Southeast Asia and Pacific Islands are: Cambodia, Indonesia, Laos, Malaysia, Papua New Guinea,

Philippines, Singapore, Thailand, Vietnam, Australia, New Caledonia, New Zealand, Solomon Islands

Source: Canadean

Asia Pacific region expected to contribute over 70% of global beer growth in the next 5 years

% of World

Growth 12% 7% 16% 3% 15% -6% 72% 53%

9







10

14

5

5

3

1

HEINEKEN

Carlsberg

Kirin

SABMiller

ABInbev

1. Broad market leadership positions only

2. 28 breweries in India includes 9 contract breweries

Source: Most recent competitor financial results

HEINEKEN best placed to access regional growth opportunities HEINEKEN has leadership in the largest number of markets1

Number of #1 and #2 market positions in Asia-Pacific

52 Breweries2

10,800 Employees

Over 50 Brands

4

1

1

2

2

1

1

1 1

28

1

1

5

2

1

Legend

Broad market

leadership

Leadership in the IPS

Breweries

Sri Lanka #2

Thailand #1

Malaysia #1

Singapore #1

Indonesia #1

Laos #2

China #2

Mongolia #2

Cambodia #2

New Caledonia #1

New Zealand #2

Papua New Guinea #1

Solomon Islands #1

Vietnam #2 UBL India #1

HEINEKEN Lion Australia #2

Hong Kong #2

South Korea #2

HEINEKEN Kirin Japan #2

Taiwan #2

11

A winning brand portfolio

1. Anchor is a regional brand in Hainan only

A premium-led brand portfolio complemented by strong mainstream brands

HEINEKEN Asia Pacific: Group Volume and Operating profit (beia) by Segment (2013)

40% 55%

60% 45%

Volume Operating profit(beia)

Mainstream

Premium

Vietnam Indonesia China Singapore Papua

New Guinea

New

Zealand

India

1

http://www.google.com.sg/url?sa=t&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&ved=0CAQQjRw&url=http://blackbadger.ca/menu/beer-on-tap/&ei=gv0BU5_9M8SeiQeLwYHgBg&usg=AFQjCNEWMeQXG8OxUZwDqeuVXZ-sAxMUWQ&sig2=SmpM9yg3XN3ANVHgKWiuPA

12

0.8

0.5 0.5 0.3

0.2 0.15 0.13 0.12 0.10 0.10 0.05 0.01

China Vietnam Australia Thailand India South Korea Taiwan Japan New Zealand Cambodia Malaysia Singapore Indonesia Philippines

Note. Countries included in Southeast Asia and Pacific Islands are: Cambodia, Indonesia, Laos, Malaysia, Papua New Guinea,

Philippines, Singapore, Thailand, Vietnam, Australia, New Caledonia, New Zealand, Solomon Islands

Source: Canadean; China IPS volume sourced from HEINEKEN and BCG; Indonesia IPS growth includes Guinness

Well positioned to capture IPS growth

CAGR IPS segment 2013-18F

HEINEKEN broad leadership markets

HEINEKEN segment leadership markets

Other markets

8.6 3.9

10% 11% 7% 7% 11% 7% 3% 4% 3% 9% 5% 6% 5% 3%

2013 IPS market size (mhl)

2018F IPS market size (mhl)

2013-18F CAGR

China 14.3 22.8

Southeast Asia and Pacific Islands 10.9 16.7

Rest of Asia Pacific 3.6 4.9

10%

8.9% +15.6MHL

6.2%

Forecasted Incremental IPS Volume in MHL (2013-18F)

13

Examples of key partnerships across the region

Strong ties

1. Refers to VBL entities only (central and southern Vietnam)

2. Guinness Anchor Berhad is a listed entity with a public free float of 49%

Strong partnerships a key success factor for HEINEKEN Asia Pacific

HEINEKEN has a track record of building

successful partnerships in the region:

Clear Common Goals

Trust & Commitment

Complementary Capabilities

Relationships & Local Network

Cultural Awareness, Religious

Sensitivities

Market Partner

HEINEKEN

Equity Stake

Vietnam1 60%

India 38.7%

Australia 50%

Malaysia2 25.5%

Japan 51%

Thailand 36.8% Chanyawan Group & Sarasin Group

14

HEINEKEN Asia Pacific:

2013 Group Volume split

(MHL)

HEINEKEN Asia Pacific:

2013 Group Operating Profit (beia)

split (€m)

Source: HEINEKEN

1. Cambodia, Laos & Vietnam; 2. Indonesia, Malaysia, Singapore & Thailand; 3. China, Hong Kong, Mongolia, South Korea, Japan & Taiwan;

4. Australia, New Zealand, New Caledonia, Solomon Islands & Papua New Guinea; 5. India & Sri Lanka

6. Before central and intercompany costs of €24m; Group Operating Profit (beia) net of these costs is €580m

HEINEKEN’s business in Asia Pacific is well diversified

Indochina

Other Southeast Asia

North Asia

Oceania & Pacific Islands

South Asia & Others

1

2

3

4

5

22.7MHL €604M6

15







16

Delivering against an ambitious plan

Maintained and strengthened our winning team

ONE operating system, tools, processes and policies

Unlocking top-line synergies through integrated commercial platform

Confirmation of ~€25m cost synergies by end of 2014

Embedded HEINEKEN way and aligned corporate culture

APB successfully integrated within HEINEKEN

Engagement

Change Communications

Cultural Awareness

Corporate Culture Alignment

Incentives

Team building

17

One Regional Office, One Company, One Identity

18

Asia Pacific region contribution to HEINEKEN group operating profit (beia) has doubled

HEINEKEN Asia Pacific region (€m)

Increasing importance of Asia Pacific region to HEINEKEN’s business

257

580

2011 2013

Group Operating profit (beia)

WE 26%

CEE 10%

26%

AME 20%

Asia Pacific

18%

Group Operating profit (beia) 2013

1,160

2,394

2011 2013

Group Revenue

WE 33%

CEE 12%

25%

AME 21%

9%

Group Operating profit (beia) 2011

Americas

Asia

Pacific

Americas

19

APB has achieved solid volume growth

1EBIT (beia) includes HEINEKEN‘s share of net profit of joint ventures and assoicates

Continued strong growth momentum of APB post acquisition

...and strong profit growth momentum1

16.2

17.0

18.6

2011 2012 2013

7%

CAGR

APB: Volume (MHL)

2011 2012 2013

17%

CAGR

APB: EBIT (beia)1

20







21

1

2

3

4

5

6

7

Leveraging Heineken® brand success

Position Tiger as the iconic Asian beer brand

Accelerate innovation

Capitalise on strength of mainstream brands

Drive excellence in outlet execution

Invest ahead of the curve to capture future growth

Leverage global scale

Asia Pacific priorities

22

1. Leveraging global Heineken® brand programmes while building unique local activation

LOCAL MUSIC GLOBAL PARTNERSHIPS

LOCAL CELEBRATION GLOBAL DIGITAL

23

4.0

5.4

6.1

2007 2010 2013

Sustained growth of Heineken® brand

1. Heineken® offers a unique competitive advantage in the region

Continued to strengthen Heineken® brand position in 2013

#1 in Vietnam, Thailand, Singapore,

Malaysia, Taiwan, New Zealand, Japan

and Indonesia premium segment

Heineken® volume in China grew by

20% and surpassed1MHL

+17% growth in South Korea

Successful introduction of Heineken®

Light in Taiwan

7.7%

CAGR Volume (MHL)

24

Strong volume growth

2. Tiger — Unleashing the potential

Establishing strong position in the region and beyond

Tiger volume in Asia Pacific

Strong growth contributor

Capture brand segmentation

opportunities by pricing between

mainstream and IPS

Innovation with successful launch of

Radler in Singapore and Malaysia

Expanded international footprint to

more than 60 countries

2011 2012 2013

2.9

4.0

5.1 33%

CAGR Volume (MHL)

25

2. Tiger — The iconic Asian beer brand Communication targeting young adults entering the premium category

TIGER TRANSLATE TIGER STREET FOOTBALL TIGER BLUE CHRISTMAS

26

2. We are going to take Tiger to the ‘next level’

NEW COMMUNICATION PLATFORM

STRONGER POSITION

EXPANDING GEOGRAPHIES

Making Tiger cool, by being distinctly Asian and challenging conventions in beer

Tapping into sharp cultural consumer needs, using the power and creativity of the Tiger symbol

Capturing the rise of the middle class in Asia, while offering something intriguing and truly differentiated in new markets

27

Rising innovation in Asia Pacific focused on introduction of margin enhancing products and supporting top-line growth ambitions.

3. Accelerate Innovation: 25 launches planned in 2014

SOL DESPERADOS STRONGBOW APPLE CIDER

TIGER RADLER

Examples include:

Tequila flavored beer

Target young adults

Alternative to spirits and cocktails

Targets non beer drinkers

Alternative to cocktails or wine

IPS from Mexico

Target successful men

Refreshing flavour well suited to Asian tastes

Beer with natural lemon juice

Recruit women to beer category

Expanding consumption occasions

28

4. Capitalise on the strength of local mainstream brands Well established local brands offer continued growth opportunities

BINTANG: INDONESIA LARUE: VIETNAM

KINGFISHER: INDIA ANCHOR: CAMBODIA

+8% growth in FY13 Has more than 100 years heritage, established since 1909 2014 focus: Expand coverage in targeted areas

#1 in Indonesia with 49% brand market share +7% growth in FY13 2014 focus: Innovation

#1 in India with 40% brand market share; almost four times larger than nearest competitor brand Proven performance record 2014 focus: Strengthen route to market

+13% growth in FY13 # 3 brand in Cambodia 2014 focus : Strengthen brand equity and increase coverage

29

5. Diverse market conditions in Asia Pacific requires strong local insights and capabilities

EXTENSIVE ROUTE-TO-MARKETS TAILORED TO DIVERSE MARKET CONDITIONS

TRADITIONAL ON AND OFF-PREMISE CHANNELS REMAIN IMPORTANT

STRONG LOCAL UNDERSTANDING OF SALES DRIVERS

Brewery

Distributors

Distributors

Wholesalers

30

5. Developing capabilities to drive excellence in outlet execution

SEGMENTING OUTLETS WITH CLEAR CHANNEL STRATEGY

UNDERSTANDING SHOPPER AND CONSUMER INSIGHTS

WE WIN BY DOING THE RIGHT THINGS IN THE RIGHT OUTLETS

Differentiated products

to provide choice

Develop innovative,

merchandising

Professionalise through

investment in systems

31

Added or extended 15 breweries the region since 20102

1. As at 28 February 2014

2. Excludes United Breweries Limited in India

6. Adding capacity to meet future demand 10 MHL of new capacity added since 20101

Greenfield

China (2011- Guangzhou;

by end-2015 Zhejiang)

Myanmar (End of 2014)

Capacity extension

Vietnam

Papua New Guinea

Indonesia

Singapore

Laos

India

Solomon Islands

New Zealand

Mongolia

32

7. Leveraging increased scale benefits across the region

GLOBAL MARKETING PLATFORMS GLOBAL SALES AND CUSTOMERS

PROCUREMENT INNOVATION

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=KQLWlDEVK2Tk5M&tbnid=x0D285cYKMqPYM:&ved=&url=http://www.dbod.nl/en/nieuws/007-siert-heineken-packaging/&ei=IowGU4_BKsjPiAfE6oCwDA&bvm=bv.61725948,d.aGc&psig=AFQjCNHIxbFEvhh1c_XHhd9LUcvGxdNTOA&ust=1393024419085439

http://i.haymarket.net.au/News/TigerRadler.jpg

http://www.google.com.hk/url?sa=i&rct=j&q=manufacturing+beer+bottles&source=images&cd=&cad=rja&docid=SXMCjCnzsOLT7M&tbnid=_56kKVmcLvIt2M:&ved=0CAUQjRw&url=http://www.qualitymag.com/articles/print/91255-using-optical-inspection-to-boost-quality&ei=DKEFU9OWHYeTiQfeqICYCA&psig=AFQjCNEHWsDYJK0VQt8h00S6kSmasaBsOw&ust=1392964175511896

33







34

Favourable market conditions… …leads to strong market growth

Source: CIA World Factbook, World Bank, Canadean and HEINEKEN

Vietnam is an attractive and rapidly growing beer market

22

27

32

2009 2011 2013

Total beer

Market Volume (MHL)

10%

CAGR • Population 90m

• Market volume 32mhl

• 12th largest beer market in the

World and 3rd in Asia Pacific

• Young population

• Urbanisation trend

• High GDP growth

• Rising income and affluence

• Beer culture, not liquor

• Affordable beer price

• Potential increase of per capita

consumption

Size &

Scale

Growth

Potential

Drinking

Culture

35

Strong volume growth… HEINEKEN is well positioned

to capture future growth

opportunities

HEINEKEN is winning in Vietnam Expanded brand offering driving market share gains

…delivering continued

profit growth

Leverage benefit of increased scale

Consistent market share gain and became the second largest brewer in Vietnam

Maintain premium segment leadership with Heineken®, Tiger and global brand portfolio

Build scale in mainstream with Larue through targeted expansion

Strengthen our route to market

Expand capacity to meet future demand

Excel in outlet execution 2009 2011 2013

HEINEKEN Vietnam total volume

(Indexed 2009 = 100)

2009 2011 2013

HEINEKEN Vietnam total operating profit

(Indexed 2009 = 100)

14%

CAGR

38%

CAGR

36 Note: IPS defined as off-trade price above 20RMB/L, includes super premium and premium

Source: Canadean and HEINEKEN, BCG

IPS expected to grow three times faster than mainstream segment in China HEINEKEN is gaining share in IPS

Premium segment offer fastest growth opportunities

Significant IPS volume growth anticipated

14

23

2013 2018F

China total beer volume (MHL)

+10% CAGR

120.5

284.6

90.8

21.7 14.3

2013

Affordable premium

IPS

Value

Lower Mainstream

Upper Mainstream

RMB/L

9-20

6-9

4-6

<4

>20

‘13-’18

CAGR

11%

8%

3%

-2%

10% Heineken ®

Tiger

China IPS volume (MHL)

Market

Share

4%

17%

53%

23%

3%

http://en.wikipedia.org/wiki/File:Flag_of_the_People's_Republic_of_China.svg

37 Source: HEINEKEN

Premium focus driving profitability in China

HEINEKEN has delivered strong growth in China

Priorities focused on winning in the premium segment

HEINEKEN China: Volume and Profit

Vo

lum

e (

KH

L)

0

500

1000

1500

2008 2009 2010 2011 2012 2013

Operating Profit

Tiger volume 22% CAGR

Heineken® Volume 24% CAGR

Leverage Heineken® brand strength

Expand our footprint and portfolio

Invest in brand building and consumer engagement

Invest in people and capabilities

1

2

3

4

http://en.wikipedia.org/wiki/File:Flag_of_the_People's_Republic_of_China.svg

http://www.madisonboom.com/2011/11/28/omd-wins-heineken-china-media/heineken-img/

38 Source: Canadean 2013,UBL, CIA World Factbook, World Bank, HEINEKEN

Current low beer consumption in India offers promise

India has low PCC, with high growth potential

Navigating through challenges

…and attractive demographics

2

29

59

India Asia Pacificaverage

Europeaverage

0 500 1.000 1.500

Russia

Brazil

China

India

1%

2%

11%

20%

0% 10% 20% 30%

Russia

Brazil

China

India

PCC 2013 (litres)

2030 Pop. (m)

Largest population by 2030

With largest proportion of the world’s youth

% of population <25 in 2030

Affordability Duty structure makes beer relatively more expensive than spirits Limited outlets Only 1 per 17k people Highly regulated Advertising bans Highly diverse market

1

2

3

5

4

39

UBL 51%

Others 49%

1. As at 21 March 2014

Source: United Breweries Limited, Canadean

United Breweries is the leading brewer and best placed to capture future growth

United Breweries has clear market leadership

United Breweries Limited: Shareholder structure1

Kingfisher is synonymous with beer in India and enjoys close to four times leadership versus nearest competitor brand

% Indian market share 2013

22MHL

38.7% 36.1%

Free Float: 25.2%

1

2

3

Strong foundations for growth

Kingfisher brand equity and strong brand portfolio

Extensive route-to-market and manufacturing footprint, provides consumer reach and scale benefits

Experienced management with proven track record in industry

4

40

Asia Pacific: A highly attractive growth region

Largest contributor to global beer growth to 2018

IPS to significantly outpace mainstream beer growth

HEINEKEN is well positioned to capture this growth:

Largest number of leadership positions across Asia Pacific

APB delivering against expectations

Strongly positioned with Heineken® to capture IPS growth

Business priorities focused on further strengthening our position:

Investing behind a winning brand portfolio

Accelerating innovation

Focus on excellent outlet execution

Further building capabilities

Leveraging HEINEKEN global scale

Summary

Question & Answer Question

& Answer Question

& Answer

& Answer Question

& Answer

London | 21 March 2014 | Heineken NV

Documents

HEINEKEN: Positioned for growth in Asia Pacific · Leveraging Heineken® brand success Position Tiger as the iconic Asian beer brand Accelerate innovation Capitalise on strength of