heineken investor presentation...2020/03/08 · 1 disclaimer this presentation contains forward...

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


Brewing a Better World

14

FY 2019 update


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


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


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)


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


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


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.


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.


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


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.


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


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


Price Mix on a constant

geographic basis



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



geographic basis



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



geographic basis



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



geographic basis



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


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


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


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

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


57

Relevant presence in premium segment

Heineken USA


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


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


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.

mailto:[email protected]

68

Upcoming events

68

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.

heineken investor presentation...2020/03/08 · 1 disclaimer this presentation contains forward...

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