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HEINEKEN FINANCIALMARKETS CONFERENCE 2016HO CHI MINH CITY, VIETNAM

Conference Design Image Will Be Added Later

Ho Chi Minh City, Vietnam | May 11-12, 2016 | Heineken NV

Winning in Vietnam!Leo EversManaging Director, Vietnam Brewery Ltd

1

AgendaWinning in Vietnam!

Introduction to VBL

Vietnam Market Overview

VBL Strategy to Win

2015 Business Performance

2

25 years of excellence

1991First brewery JV in Vietnam

19931st Brew of Tiger Beer

19941st Brew of Heineken® Beer

1997Introduction of 1st Local Brand — Bivina

2007Acquired Foster’s Vietnam (Larue, BGI etc.)

2008Launched Tiger Crystal

2014-15Accelerated Innovation

20151st Sustainability Report in Vietnam by a brewer

2016

3

Vietnam is HEINEKEN’s 2nd largest profit contributor

Source: Heineken N.V. Annual Report 2015Note: 1. BEIA is before exceptional items and amotisation of acquisition related intangible assets

2. Vietnam includes both domestic and export operations of VBL and APBHN

Other MarketsVietnam

HEINEKEN CONSOLIDATED OPERATING PROFIT (BEIA) (2015)

Vietnam 10%

Important contributor to both Asia Pacific region and group level at HEINEKEN: Just under 50% Asia Pacific region’s consolidated

operating profit beia

10% HEINEKEN consolidated operating profit (beia)

Operating margin ahead of regional averageof 28.3% (FY 2015)

4

VBL at a glance

Source: Company data

Ownership:

4 Breweries

1,752 Employees

Operating from Quang Binh to Ca Mau

# 2 Market Share in Vietnam

Comprehensive portfolio of brands

Quang Nam Brewery

Da Nang Brewery

60% 40%

Hoc Mon Brewery

Tien Giang Brewery

5

1,752 employees

8 expats

7 nationalities

Gender mix:

62% under 40 yrs old

Local management team structure

Source: Company Data

80% 20%

Finance Director

Danny Chan

Commercial Director

Laurent Theodore

Supply Chain Director

Paul Bleijs

Human Resource Director

Le Qui Don

Deputy Managing Director

Tran Minh Triet

Managing DirectorLeo Evers

6

Portfolio strategy in action


Leading the development of premium and super premium segment led by Heineken®

Continuing to fuel the growth of Tiger across the regions and within affordable premium

Consolidating position in mainstream in both core existing markets, and further capturing opportunity in rural areas with Larue

Developing Cider category with game changer ambition

Leveraging excellent outlet execution, varied pack types and strengthening distribution system to expand footprint and drive further volume and market share growth

Premium

Affordable Premium

Mainstream

Index > 140

115 ≤ Index ≤ 140

85 ≤ Index < 114

7

Market share overview

Source: Nielsen Retail AuditNote: Market Share as of FY2015 based on Nielsen data for 36 key cities only. Rural market share is not fully reflective

Market is consolidated at regional level

Habeco operates mainly in the North of Vietnam with leading market position

VBL, Sabeco and Hue Brewery (Carlsberg) are the key players in Central Vietnam

South of Vietnam is seeing competition between VBL, Sabeco, and new entrants

Top 4 players have more than 80% of the market

>70%

30% - 70%

<30%

Total NorthOperation of APBHN

North Central Coast

Central Highland

Mekong Delta

Da Nang

South Central Coast

Nha Trang

South East

Ho Chi Minh

Can Tho

8


Introduction to VBL


VBL Strategy to Win


9

Vietnam at a glance

Note: 2015 data, Key Cities are municipalities, ancient capital (Hue), and top tourist city (Nha Trang)Source: Company Data, World Bank, GSO

Vietnam has a large young

population and a fast growing

economy

With a vibrant beer drinking

culture

Young & Sizeable

Population

PositiveEconomic

Underlying Indicators

AttractiveBeer

Market

Legislative Environment

Billion USD GDP

GDP per capita (USD)

GDP Real Growth

Total Inflation Rate

91.7m

49%

34.3%

194

2,109

6.68%

0.63%

38

94%

41

55%

License

Hue

Da Nang

Nha Trang

Ho Chi Minh City

Can Tho

Hai Phong

Ha Noi

Land area: 331,690 Km2

Capital City

Key City

14th largest population in world

Younger than 30 years

% urban population

Beer market size (mhl)

Beer consumption of total alcohol market

Consumption per capita (L)

Excise Duty – 2016 (from 50%)

For production required

10

Favourable demographics

Source: GSO, WB, Euromonitor, Nielsen

2013

2015

2007 2012 2017

27%

30%

34%37%

2005 2010 2015 2020

Population below 30 years old is c.49% of total population in 2015, and sizable group of legal drinking age

By 2020, the urban population in Vietnam will grow by c.4 million people, with beer per capita consumption 1.6x the level of rural drinkers

YOUNG POPULATIONPopulation Changes 2013– 2015

RISING INCOMEPercentage of household

RAPID URBANISATIONPercentage of people living in urban areas

FEMALEMALE

<$2.5K $2.5-5K

$5-10K $10-25K >$25K

Annual Income

11

Positive underlying economic fundamentals

Source: Nielsen, GSO, HSBC, Vietnam Government Portal

VIETNAM GDP GROWTH & INFLATION

IMPROVING CONSUMER CONFIDENCE INDEX

6.4% 6.2%5.3% 5.4%

6.0%6.7%

9.2%

18.6%

9.2%

6.6%

4.1%

0.6%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

2010 2011 2012 2013 2014 2015

GDP Growth Total Inflation Rate

103

98

91

97

101

107

2010 2011 2012 2013 2014 2015

A growing economy with inflation under

control

Rising consumer confidence driven

by positive economic prospects

In 2016 GDP growth is forecasted

at c.6.7% and an inflation rate of c.5.2% expected

12

An attractive beer market

Source: Canadean

Beer is 94% of total alcoholic consumption,

and represents 31% share of

total beverage market

BEER IS THE PREFERRED ALCOHOLIC BEVERAGE THE BEER MARKET CONTINUES TO GROW

Alcoholic Drinks33%

Soft Drinks32%

Hot Beverages

21%

Dairy Drinks14%

Alcoholic Drinks

Beer

94%

33 34 36

38 40

42 44

2012 2013 2014 2015 2016 2017 2018

CAGR +4.7%

CAGR +4.8%

mhl

13

Market structure & consumer preference is changing

Source: Canadean

Home consumption is increasing in

preference

Premium showing fastest growth and

gaining importance

3.1%-5.5% (Abv) is the most popular

lager strength (>99% share)

OFF PREMISE CONSUMPTION BECOMING MORE POPULAR

AND PREMIUM SEGMENT INCREASING SHARE

ON71%

ON69%

ON65%

OFF29%

OFF31%

OFF35%

2011 2013 2015

14% 10% 8%

70% 71% 71%

16% 19% 21%

2011 2013 2015

Economy Mainstream Premium

14


Introduction to VBL


VBL Strategy to Win


15

Reignite Heineken®, continuing improvement

Strategy to win To be the leading, proud and responsible brewer in Vietnam

STRATEGIC PILLARS

Build on strong Tiger momentum

Move to broad leadership with the portfolio, leveraging Larue

Excite the market with innovations, shaping the Cider category

Develop our people and leverage strong talent pool

Improve efficiency across all functions

Brew a better Vietnam

1

2

3

4

5

6

7

16

Reignite Heineken® - continuing improvement

Source: Company data, Canadean 2015

The premium segment has the

seen fastest growth and was c.21% of market

in 2015

Heineken® was 20% share of

premium segment in 2015

TOTAL MARKET PREMIUM SEGMENT CONTRIBUTION (%)

HEINEKEN® SHARE OF PREMIUM SEGMENT IN 2015

Heineken®

20%

Tiger47%

Heineken®

Tiger

Others

16%18% 19% 20%

21%

2011 2012 2013 2014 2015

VOLUME CAGR +12%

17

Reignite Heineken® - continuing improvementHeineken® development encouraging with positive volume growth in 2015

Heineken® saw positive growth in 2015 with gradually improving brand attributes

Heineken® equity is amongst the highest in the world in terms of authority, approval and closeness scores, and is still growing

Leveraging global platform and amplifying global campaign’s impact with local top spin

Focus on excellent outlet execution to ensure successful activation at point of sale

Innovative packaging to enhance consumer offer

INFLECTION IN 2015 WHEN HEINEKEN® VOLUME INCREASED

2011 2012 2013 2014 2015

YOY +2%

:Source: Company data

18

Building on strong Tiger momentum


Successful positioning in affordable premium

Successful leverage of UNCAGE platform increasing brand equity

Strengthening route to market and perfecting outlet execution

Healthy investment to support and amplify the positive momentum

Successful innovation to recruit consumers and drive brand excitement

Winning at the point of sale

IMPRESSIVE VOLUME PERFORMANCE KEY DRIVERS OF SUCCESS

2012 2013 2014 2015

VOL. CAGR +36%

19

2014 2015

Move to broad leadership with the portfolio, leveraging Larue

Source: Kantar World Panel 2015

Continue to develop& upgrade Larue coremarkets (Da Nang, Quang Nam, Ca Mau)

Market expansion by conquering further provinces

ALCOHOLIC BEVERAGE BEER

2014 2015

YoY +16%

Healthy growth in expected monthly spending

Rural areas have a large population, high FMCG value,

and increasing spend on beer

Opportunity to grow volume with

further packinging formats

CONSOLIDATING MAINSTREAM STRATEGY IN CORE MARKETS

TAPPING INTO HIGH POTENTIAL RURAL MARKETS

Da Nang

Quang Nam

Ca Mau

66%Of Vietnam Population

62%of Vietnam

GDP

52%of FMCG

Value

YoY +14%

20

Excite the market with innovation

Source: Company data Note: Innovation rate is the percentage of innovation revenue in total VBL revenue

BRINGING MORE EXCITEMENT WITH NEW PRODUCTS IN 2014-2015

x 3 Launched Strongbow in 4 variants in late 2015 with game changer ambition

4 New Brands/Line Extensions

12 New Products & Pack Types

2015 2018

AMBITION TO TRIPLE INNOVATION RATE BY 2018

Building the new Cider segment with game

changer ambition

New products and new packaging on existing

brands to complement portfolio

21

Developing people and leveraging the strong talent pool

Source: Company DataNote: Climate Survey is the yearly HEINEKEN practice that employees give feedbacks and evaluation on the working environment

CULTUREFriendly and open working environment

A GREAT PLACE TO WORKPositive climate survey result 2015 Employment Engagement Index: 86% Performance Enablement Index: 84%

HIGH PRODUCTIVITYExceeding the average of HEINEKEN Asia Pacific and HEINEKEN global

REWARD & RECOGNITIONpromotion of identified talents: 28% in 2014 & 2015

People are one of our key assets and integral to our businesses success

22

Improving efficiency across all functions


Strong achievements to

date and ambitious targets over the next three years

Costs remain under control despite

rising cost pressure and benefiting from

operating leverage

ACTUAL 2015 2018F

Supply Chain CVE S&M Support

Accumulated saving

€ 20.7m

OPTIMISING PERFORMANCE ACROSS FUNCTIONS

Supply Chain

Consumer Value

Engineering

Sales & Marketing

HR

FINANCE

IT

OTHERS

Support Saving €5.9m

Focus on reducing cost everywhere

2011 2012 2013 2014 2015

FIXED COSTS AS % OF REVENUE

CONTINUED FOCUS ON COST EFFICIENCIES

23

Sustainability – Brew a Better Vietnam


Part of HEINEKEN Global strategy “Brewing a Better World” – 6 Focus areas

PROTECTING WATER RESOURCES

REDUCING CO2 EMISSIONS

SOURCING SUSTAINABLY

ADVOCATING RESPONSIBLE CONSUMPTION

PROMOTING HEALTH & SAFETY

GROWING WITH COMMUNITIES

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Introduction to VBL


VBL Strategy to Win


25

2012 20152012 2015 2012 2015

Continuing to deliver impressive returns

1. BEIA is before exceptional items and amotisation of acquisition related intangible assets2. Operation includes both import & export

REVENUE

2012-2015

OPERATING PROFIT

(BEIA) 2012-2015

OPERATING PROFIT

MARGIN (BEIA) 2012-2015

CAGR +17%CAGR +14% +400 BPS

Strong underlying financial

performance driving impressive margin expansion

Continued expansion in 2015

26

SummaryWinning in Vietnam!

Positive economic outlook combined with favourable demographics should underpin future growth

Clear strategy in place to drive further share gain and outperformance

Portfolio strategy is working. Heineken® volume trends improving and clear brand strategy in place. Excellent Tiger growth momentum expected to continue

Developing local talent key to the business

Commitment to drive further cost savings

Strong commitment to Vietnam community and sustainability agenda

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