Download - HEINEKEN Company
GLOBAL CORPORATE RELATIONS | APRIL 2015
THE WORLD’S MOST INTERNATIONAL BREWER • NO 1 IN EUROPE • NO 3 IN THE WORLD • PRESENT IN >70 COUNTRIES GLOBALLY
HEINEKEN | PROUD, INDEPENDENT, RESPONSIBLE GLOBAL BREWER
SURPRISING AND EXCITING CONSUMERS EVERYWHERE
LONG AND PROUD HISTORY AND HERITAGE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
DESPERADOS, SOL, AFFLIGEM AND CIDERS COMPLEMENT OUR GLOBAL BRAND PORTFOLIO
PASSION FOR QUALITY AND INNOVATION
OVER 250 BEER AND CIDER BRANDS
OUR FLAGSHIP BRAND, HEINEKEN®, IS THE WORLD’S LEADING INTERNATIONAL PREMIUM BEER
HEINEKEN | BREWING GREAT BEERS, BUILDING GREAT BRANDS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
UNIQUE HISTORY & FAMILY
INVOLVEMENT
HEINEKEN® BRAND
MARKETING BIAS
TRULY GLOBAL FOOTPRINT
PROVEN SUPPLY CHAIN SKILLS
PASSIONATE PEOPLE
HEINEKENIS UNIQUE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN | OUR VALUES
RESPECT FOR PEOPLE & PLANET
ENJOYMENT OF LIFE
PASSION FOR QUALITY
BRANDS THAT PEOPLE LOVE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
WE SWITCH TO BOTTOM
FERMENTATION:CLEARER, PURER, LONG LASTING
BEER
DR.H ELION CULTIVATES THE
HEINEKEN A-YEAST => UNIQUE FLAVOUR
WE ARE CROWNED AT
THE GRAND PRIX PARIS FOR QUALITY, FOCUSED
INNOVATIONS
THE HEINEKEN FAMILY ENTERS THE
BEER BUSINESS
HEINEKEN | A LONG AND PROUD HISTORY & HERITAGE
1864 1869 1886 1889
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN | A LONG AND PROUD HISTORY & HERITAGE
EARLY STAGES OF UNIQUE
ADVERTISING AND BECOMING TRULY INTERNATIONAL
HEINEKEN MOVES INTO ASIAN MARKETS
HEINEKEN® IS THE FIRST IMPORT BEER TO THE US
AFTER PROHIBITION IS LIFTED
ALFRED HEINEKEN
BEGINS ‘BEER CAN TRAVEL’
GLOBAL MARKETING STRATEGY
HEINEKEN ACQUIRES AMSTEL
BREWERY
1929 19541928 1933 1968
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN | A LONG AND PROUD HISTORY & HERITAGE
PRODUCTION TRANSFER FROM AMSTERDAM TO
ZOETERWOUDE IN THE NETHERLANDS
ACQUISITION OF BRAUBETEILIGUNAS
A.G. (BBAG) IN AUSTRIA
ACQUISITION OF SCOTTISH & NEWCASTLE
ACQUISITION OF FEMSA CERVEZA
ACQUISITION OF ASIA PACIFIC BREWERIES
1988 2003 2008 2010 2012
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
81,000 EMPLOYEES
>160 BREWERIES INOVER 70 COUNTRIES
GROUP BEER VOLUME*IN 2014: 198.8 MILLION HL
HEINEKEN | TRULY GLOBAL PRESENCE
* Consolidated beer volume plus attributable share of beer volume from joint ventures and associates
HEINEKEN OPCO JOINT VENTURES EXPORT LICENSES
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
OUR BUSINESS PRIORITIES
GROW THE HEINEKEN® BRAND
CONSUMER-INSPIRED, CUSTOMER-ORIENTED, BRAND-LED
CAPTURE THE OPPORTUNITIES IN EMERGING MARKETS
LEVERAGE THE BENEFITS OF HEINEKEN’S GLOBAL SCALE
DRIVE PERSONAL LEADERSHIP
EMBED AND INTEGRATE SUSTAINABILITY
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
STRONG GLOBAL BRAND EQUITY
UNDISPUTED LEADER IN THE INTERNATIONAL PREMIUM SEGMENT WITH 19% CATEGORY SHARE
HEINEKEN® IS OUR MOST VALUABLE BRAND &A KEY STRATEGIC ASSET
GROW THE HEINEKEN® BRAND
STRONG GLOBAL PLATFORMS TO FURTHER GROW THE BRAND
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
WE ARE COMMITTED TO BEING PART OF THE CONVERSATION WITH CONSUMERS &
PREFERRED PARTNER FOR OUR CUSTOMERS
CONSUMER-INSPIRED, CUSTOMER-ORIENTED, BRAND-LED
EXPANSION OF OUR GLOBAL BRANDS DESPERADOS, SOL, AFFLIGEM AND CIDERS
INVEST IN AND WIN WITH REGIONAL & LOCAL BRANDS
INNOVATION AT THE HEART OF OUR BUSINESS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
STRONG ORGANIC GROWTH FROM EMERGING MARKETS
EMERGING MARKET FOOTPRINT TRANSFORMED THROUGH A CLEAR ACQUISITION STRATEGY
CAPTURE THE OPPORTUNITIES IN EMERGING MARKETS
50% OF GROUP REVENUES, 61% OF GROUP OPERATING PROFIT & 63% OF GROUP BEER VOLUMESCOME FROM DEVELOPING MARKETS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
LEVERAGE THE BENEFITS OF HEINEKEN’S GLOBAL SCALE
HEINEKEN IS INVESTING IN NEW INITIATIVES TO BETTER LEVERAGE OUR GLOBAL SCALE
HEINEKEN GLOBAL SHARED SERVICES DELIVERS EFFICIENCIES
HEINEKEN GLOBAL PROCUREMENT DRIVES COST SAVINGS & MANAGES INPUT PRICE VOLATILITY
GLOBAL BRAND BUILDING
SUPPLY CHAIN OPTIMISATION
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN BEHAVIOURSDRIVE OUR SUCCESS
>70 OPERATING COMPANIES
>81,000 EMPLOYEES
DRIVE PERSONAL LEADERSHIP
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
EMBED AND INTEGRATE SUSTAINABILITY
BREW A BETTER WORLD IS ABOUT CREATING REAL SUSTAINABLE VALUE FOR ALL OUR STAKEHOLDERS
SUSTAINABILITY IS A BUSINESS IMPERATIVE TO ACHIEVE OUR BUSINESS OBJECTIVES
WE FOCUS ON: • WATER• ENERGY • SOURCING • RESPONSIBLE CONSUMPTION • HEALTH & SAFETY • COMMUNITIES
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
OWNERSHIP STRUCTURE AND STOCK EXCHANGE LISTING
FEMSA PUBLIC
PUBLIC
HEINEKEN HOLDING N.V.
HEINEKEN N.V.
SUPERVISORY BOARD
EXECUTIVE BOARD
GLOBAL FUNCTIONSREGIONAL MANAGEMENT
OPERATING COMPANIESLEGAL ENTITIES PUBLIC SHAREHOLDERS MANAGEMENT
Per June 2014
37.463%
33.356%
L’ARCHE GREEN N.V.
51.709%
12.532%
50.005%
BOARD OF DIRECTORS
14.935%
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
ORGANISATIONAL STRUCTURE
EXECUTIVE BOARD
EXECUTIVE COMMITTEE(FROM 1 JULY EXECUTIVE TEAM)
OPCOS / JOINT VENTURES
REGIONS FUNCTIONS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
OUR EXECUTIVE BOARD
LAURENCE DEBROUX
JEAN-FRANÇOIS VAN BOXMEER
CHIEF EXECUTIVE OFFICER & CHAIRMAN OF THE EXECUTIVE BOARD
CHIEF FINANCIAL OFFICER & MEMBER OF THE EXECUTIVE BOARD
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
OUR EXECUTIVE COMMITTEE
Chairman / Chief Executive Officer
JEAN-FRANÇOIS VAN BOXMEEREXECUTIVE BOARD
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
President Central & Eastern Europe & Chief Marketing & Sales Officer
JAN DERCK VAN KARNEBEEK
President Western Europe & President Americas
STEFAN ORLOWSKI
President Africa & Middle East
SIEP HIEMSTRA
President Asia Pacific & CEO APB
ROLAND PIRMEZ
Chief Business Services Officer
FRANS EUSMAN
Chief Supply Chain Officer
MARC GROSS
Chief Corporate Relations Officer
SEAN O’NEILL
Chief Strategy Officer
CHRIS BARROW
Chief Human Resources Officer
CHRIS VAN STEENBERGEN
Member / Chief Financial Officer
LAURENCE DEBROUX
HEINEKEN® IS THE WORLD’S LEADING INTERNATIONAL PREMIUM BEER
WORLD-CLASS BRAND PORTFOLIO
DESPERADOS, SOL, AFFLIGEM AND CIDERSCOMPLEMENT OUR GLOBAL BRANDS PORTFOLIO
OVER 250 BEER AND CIDER BRANDSACROSS THE WORLD
REGIONAL AND LOCAL JEWELS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
AVAILABLE IN ALMOST EVERY COUNTRY IN THE WORLD
ONE WORLD, ONE TASTE, ONE UNCHANGED RECIPE
UNDISPUTED LEADER IN THE INTERNATIONAL PREMIUM SEGMENT (IPS)
HEINEKEN® | OUR FLAGSHIP BRAND
A KEY STRATEGIC ASSET THAT SETS US APART FROM OUR COMPETITORS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
PRODUCT PLATFORMS
HEINEKEN® | PURE PREMIUM
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
DESIGN
CREATIVITY
INNOVATIONS
WORLD CLASS EVENTS
HEINEKEN® | IGNITING CONVERSATIONS
DIGITAL & SOCIAL MEDIA PRESENCE
MAKING RESPONSIBLE CONSUMPTION ASPIRATIONAL
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
DESPERADOS IS THE BRAND, BUT ALSO THE PEOPLE WHO MAKE AND LIVE BY THEIR OWN RULES, TURNING BORING AND PREDICTABLE INTO SOMETHING EPIC
A UNIQUE TEQUILA FLAVOURED BEER WITH SUPER PREMIUM POSITIONING
DESPERADOS | PUSHING THE BEER CATEGORY LIMITS
SERVED IN AN ICONIC, PREMIUM, TRANSPARENT GLASS BOTTLE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
BORN IN 1899 IN INDEPENDENT MEXICO
SOL | ESPIRITU LIBRE
SOL CHAMPIONS LOCAL HEROES – GUYS ALL OVER THE WORLD DOING THEIR OWN THING
ENJOYED IN 56 COUNTRIES AROUND THE WORLD
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
SOL SEARCH HELPS CONSUMERS FIND ORIGINAL AND AUTHENTIC BARS, CAFES AND RESTAURANTS
UNIQUE DOUBLE FERMENTED RECIPE THAT IS ONLY BREWED IN BELGIUM UNDER THE CLOSE SUPERVISION OF THE MONKS OF THE AFFLIGEM ABBEY
CERTIFIED AND AWARD-WINNING BELGIAN ABBEY BEER WITH A 1000 YEAR HISTORY
AFFLIGEM | 1000 YEARS OF FINE BEERS
RANGE OF 8 BEAUTIFUL AFFLIGEM BEERS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN IS THE WORLD’S LEADING CIDER PRODUCER WITH LEADING CIDER RESEARCH
AND DEVELOPMENT CAPABILITIES
CIDERS | REACHING CONSUMERS THAT BEER CAN’T
ATTRACTIVE GLOBAL CIDER BRAND PORTFOLIO:
BULMERSSTRONGBOW APPLE CIDERS
OLD MOUTBLIND PIG
CIDERIE STASSEN
SUPERIOR REFRESHMENT
VARIOUS PROPOSITIONS WITH UNISEX APPEAL
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
REGIONAL & LOCAL JEWELS
LOCAL CHAMPIONSTECATE
STARBINTANG
REGIONAL POWER BRANDSTIGERDOS EQUIS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
INSPIRING & INNOVATIVE GLOBAL MARKETING
THE CANNES LIONS INTERNATIONAL FESTIVAL OF CREATIVITY AWARDED HEINEKEN WITH THE 2015 CREATIVE MARKETER OF THE YEAR
WOWING THE WORLD WITH OUR BRANDS
EMBRACING & ENCOURAGING CREATIVITY IN BRAND COMMUNICATIONS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
INNOVATION IS AT THE HEART OF OUR COMPANY STRATEGY
DELIGHTING OUR CONSUMERS WITH INNOVATIONS
WE WORK TO CONTINUALLY SURPRISE AND EXCITE OUR CONSUMERS AND MEET
CHANGING CONSUMER PREFERENCES
INNOVATION RATE OF 7.7% CONTRIBUTING € 1.5 BILLION OF REVENUES IN 2014
GLOBAL & LOCAL INNOVATIONS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
RADLER | DOUBLE REFRESHMENT
A REFRESHING MIX OF BEER AND NATURAL
LEMONADE
NEW DRINKING OCCASIONS & CONSUMERS
LAUNCHED FOR LOCAL BRANDS IN 41 MARKETS ACROSS ALL 5 REGIONS
2 VARIANTS:2% LOW-ALCOHOL &
0% ALCOHOL-FREE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
UNIQUE BLEND OF NATURAL MALTS
GREAT TASTING AND VISIBLY DIFFERENT ALCOHOL FREE BEER
MAXX 0.0% | FULL FLAVOUR, NO ALCOHOL
FRESH AND WELL-BALANCED BEER
FULL ENJOYMENT: THE 0.0% WORLD HAS NO LIMITS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
PILOTED IN 5 CEE MARKETS, FURTHER LAUNCHES TO FOLLOW
THE SUB DELIVERS PROFESSIONAL QUALITY DRAUGHT BEER AT HOME
THE SUB | ICONIC HOME DRAUGHT APPLIANCE
FUTURISTIC SUBMARINE APPEARANCE CAN CHILL TO 2°
IT TAKES NEW, 2-LITRE KEGS, TORPS, CONVENIENTLY DESIGNED TO STORE IN THE FRIDGE
DESIGNED IN COLLABORATION WITH MARC NEWSON AND ENGINEERED BY KRUPS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
DESIGNED FOR MEDIUM-SIZED PREMIUM ON-TRADE OUTLETS
BREWLOCK WILL REVOLUTIONISE DRAUGHT BEER WITH A NEW ONE-WAY KEG TECHNOLOGY
BREWLOCK | GAME CHANGER FOR DRAUGHT IN ON-TRADE
LAUNCHED IN THE USA & FOR THE CRUISE LINES
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
OUTSTANDING CONSUMER EXPERIENCE: PRESERVES THE NATURAL TASTE AND AROMAS OF OUR BEERS & DELIVERS THEM INTACT FROM THE BREWERY
PROTECTING WATER RESOURCES
REDUCING CO2 EMISSIONS
SOURCING SUSTAINABILITYPROMOTING HEALTH AND SAFETY
GROWING WITH COMMUNITIES
ADVOCATING RESPONSIBLE CONSUMPTION
SUSTAINABILITY | BUSINESS IMPERATIVE
OUR INDUSTRY & THE CHALLENGES WE FACE ARE CHANGING
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
SUSTAINABILITY HAS A POSITIVE IMPACT
IN A NUMBER OF AREAS, SUCH AS:
• OUR LICENSE TO OPERATE E.G. COMMERCIAL FREEDOM
• BUILDING TRUST E.G. IN THE COMMUNITIS WE OPERATE IN
• RISK MANAGEMENT E.G. FOCUS ON WATER-SCARCE
AREAS & RAW MATERIAL QUALITY
• (ECO)EFFICIENCY E.G. ENERGY SAVING IN BREWERIES
SUPPORTS OUR BRANDS AND INNOVATION STRATEGY &
BUILDS BRIDGES TOWARDS OUR CUSTOMERS
BREWING A BETTER WORLD
GENUINE COMMERCIAL OPPORTUNITY FOR OUR BRANDS
AND IN THE INNOVATIONS FUNNEL
THE ALCOHOL AGENDA REMAINS
OUR NUMBER ONE BUSINESS RISK
GREATER ATTENTION TO THE HERE AND NOW, FULLY EMBEDDED IN THE BUSINESS
6 FOCUS AREAS:
• PROTECTING WATER RESOURCES
• REDUCING CO2 EMISSIONS
• SOURCING SUSTAINABLY
• ADVOCATING RESPONSIBLE CONSUMPTION
• GROWING WITH COMMUNITIES
• PROMOTING HEALTH & SAFETY
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
SUSTAINABILITY | STRATEGY
Protecting water resources Reducing CO2 emissions
Sourcing sustainably Advocating responsible consumption
Promoting health and safety Growing with communities
Our strategy
Our focus
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
COVERING OUR VALUE CHAIN ‘FROM BARLEY TO BAR’
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
PROTECTING WATER RESOURCESOUR COMMITMENTS
2015 2020
Specific water consumption Reduce our specific water
consumption in the breweries
to 3.9 hl/hl
Reduce our specific water consumption in
the breweries by approx. 30%1 to 3.5
hl/hl, and in water scarce areas to 3.3
hl/hl
Water balancing in water scarce
and distressed areas
100% of our production units in
water scarce and distressed
areas will have a source water
protection plan
We aim for significant water
compensation/ balancing by our
production units in water scarce and
distressed areas
1Baseline 2008
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
2015 2020
Reduce specific CO2 emissions in
production
Reduce our CO2 emissions in
production by 27%1
(eq 7.6 kg CO2-eq/hl)
Reduce our CO2 emissions
in production by 40%1
(eq 6.4 kg CO2-eq/hl)
Reduce specific CO2 emissions in
fridges
Reduce the CO2 emissions of our
fridges by 42%2
Reduce the CO2 emissions of
our fridges by 50%2
Reduce specific CO2 emissions in
distribution
Reduce the CO2 emissions of
distribution by 10%3 in Europe
and the Americas
Reduce the CO2 emissions of
distribution by 20%3 in Europe
and the Americas
1 Baseline 20082 Baseline 20103 Baseline 2011, scope is 24 of our largest operations
REDUCING CO2 EMISSIONSOUR COMMITMENTS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
SOURCING SUSTAINABLYOUR COMMITMENTS
2015 2020
Stimulate local economic development
through sourcing locally
Deliver 50% of raw materials in
Africa via local sourcing1 (based
upon tonnage)
Deliver 60% of raw materials in Africa
via local sourcing1 (based upon
tonnage)
Drive the roll-out of sustainability
standards in agriculture by sourcing
our raw material sustainably
Aim for sustainable sourcing of
raw materials2: for crop year
2015: 20% (barley,) 40% (hops),
60% bittersweet apples for cider)
Aim for at least 50% of our main raw
materials supplied from sustainable
sources23
Ensure full compliance with our
supplier code procedure
4-step Supplier Code Procedure
rolled out to all Operating
Companies
Ongoing compliance to Supplier Code
Procedure
1 With local sourcing we refer to sourcing within the Region Africa2 Based on volume3 Barley, hops, cider apples, other apples, other fruit, sugar, rice, sorghum, wheat, maize
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
ADVOCATING RESPONSIBLE CONSUMPTIONOUR COMMITMENTS
2015 2020
Industry
Commitments
Precise goals for 2015 to be decided in conjunction with industry
via ICAP and GAPG organisations.
Deliver global industry commitments on:
1. Reducing under-age drinking
2. Strengthening and expanding marketing codes
of practice to limit the exposure to young
people
3. Providing more consumer information
and responsible product innovation
4. Reducing drinking and driving
5. Enlisting the support of retailers to reduce
harmful drinking
Partnerships Every market in scope2 has a partnership to address alcohol related
harm. All partnerships meet HEINEKEN’s 7-point partnership criteria
Every market in scope2 has and reports publicly on a
measurable partnership aimed at addressing alcohol
abuse
Heineken® We commit to invest a minimum of 10% of our media share of
voice for Heineken® in supporting our dedicated responsible
consumption campaign in at least 50% of our market volume1
Making responsible consumption aspirational
through Heineken®
1 Market scope covering in total at least 50% of Heineken® global volume2 Small export markets and markets with religious restrictions are out of scope
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
PROMOTING HEALTH AND SAFETY
Indicator Kpi 2015
Production Accident frequency (AF) 10% reduction
Outside production Percentage of sites reporting at lease onenear miss per quarter
90% of OpCos at 75%
of sites
All OpCos/All functions E-learning training 90% of OpCos with
90% employees trained
Sales Road safety training
with Alert Driving
2000 sales managers trained
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
GROWING WITH COMMUNITIESWE WANT TO ENSURE THAT OUR SUCCESS AS A BUSINESS HELPS
THE COMMUNITIES AND SOCIETIES IN WHICH WE OPERATE TO PROSPER
Direct contributions Shared-value projects Heineken Africa Foundation
Donating cash, time, in-kind donations and
management costs. We seek long-term
community investments through
partnerships that are aligned with our
business and sustainability agenda, such as
addressing alcohol misuse and local water
challenges. This includes employee
volunteering.
Our local sourcing projects in
Africa and Haiti are prime
examples of ‘inclusive growth’
and how we create shared value.
These projects benefit HEINEKEN
as a business, and at the same
time create jobs locally, help to
strengthen the agricultural
sector and improve the lives of
rural households over time.
Established with an endowment
from HEINEKEN of €20 million,
the Foundation can invest up to
€1 million per year in community
healthcare and water projects in
Sub-Saharan Africa.
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
YEAST
BARLEY WATER
HOP
ALL NATURAL INGREDIENTS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
THE MAGIC OF BREWING
DRYINGSTEEPING
GERMINATINGROASTING
MILLING LAUTERING BOILING WHIRLPOOLINGCOOLING
FERMENTINGLAGERINGFILTERING
HEATING
COMPRESSINGPURIFYING
HOP PELLETS YEAST
BEERBITTER WORT
SWEET WORTMASHGRISTMALTBARLEY
BREW WATER
WATER HOPS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
VITAMINS B1, 3 AND 11
MINERALS
STOREHOUSE OF NUTRIENTS
NO FAT
ANTIOXIDANTS
NO ADDITIVES; NO PRESERVATIVES
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
RELATIVELY LOW IN CALORIES
100 grams Kcal
Whiskey 245
Red Wine 82
White Wine 70
Alcoholic mix drinks 65
Milk 63
Beer 42
Orange juice 39
Soft drinks 39
CALORIC VALUE OF VARIOUS BEVERAGES
Source: Netherlands Nutrition CentreAverage serving: Beer 250 ml, Wine 150 ml, Alcoholic mixed drinks 250 ml
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
CIDERREACHES CONSUMERS THAT BEER CAN’T
AUTHENTIC & REFRESHING ALCOHOLIC DRINK MADE FROM APPLES OR PEARS
WIDE RANGE OF FLAVOURS
HEINEKEN LEADS THE GLOBAL CIDER CATEGORY WITH 20% MARKET SHARE
CRISP, SWEETER TASTE
TRIPLE REFRESHMENT: NATURAL ACIDITY, LIGHT SPARKLING, SERVED OVER ICE
LIKED BY MEN & WOMEN
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
APPLE HARVESTING
MILLING & PRESSING
STORAGE & FERMENTATION
BLENDING & FILTRATION
FILLING & PACKAGING
CIDERPRODUCTION PROCESS
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
PERFORMANCE
2014: STRONG PERFORMANCE REFLECTS EFFECTIVENESS OF OUR STRATEGY
GROUP REVENUE +3.3% ORGANICALLY WITH GROUP REV/HL UP +1.4%
TOP AND BOTTOM LINE GROWTH ACROSS THE BUSINESS
HEINEKEN®VOLUME +5.1% REPORTING POSITIVE GROWTH IN ALL REGIONS
DOUBLE DIGIT GROWTH FOR GLOBAL BRANDS DESPERADOS, AFFLIGEM AND SOL*
INNOVATION CONTRIBUTED €1.5BN OF REVENUE, INNOVATION RATE ACCELERATED TO 7.7%
CONSOLIDATED OPERATING PROFIT (BEIA) MARGIN UP 90BPS, WELL AHEAD OF MEDIUM TERM MARGIN GUIDANCE (40BPS)
DILUTED EPS (BEIA) UP 11%, PROPOSED DPS UP 24% (36% PAY-OUT RATIO)
*1 Sol premium (volume outside home market)
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
FINANCIAL OVERVIEW
Mhl/€m 2014 2013 Total Change (%) Organic Change (%)
Group revenue 21,191 21,174 0.1 3.3
Group revenue/hl (€) 91 92 -0.9 1.4
Group operating profit (beia) 3,359 3,192 5.2 7.8
Consolidated Revenue 19,257 19,203 0.3 3.0
Consolidated operating profit (beia) 3,129 2,941 6.4 8.7
Consolidated operating profit (beia) margin
16.2% 15.3% +90bps
Net profit (beia) 1,758 1,585 11 14
Net profit 1,516 1,364 11
Diluted EPS (beia) in € 3.05 2.75 11
Free operating cash flow 1,574 1,518 3.7
Net Debt/EBITDA (beia) ratio 2.5x 2.6x
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEALTHY GROWTH ACROSS THE BUSINESS
2014 Organic growth %
AFRICA MIDDLE
EASTAMERICAS
ASIA PACIFIC
CENTRA &EASTERNEUROPE
WESTERN EUROPE
HEINEKEN NV
Consolidated revenue 4.4 6.9 5.3 -3.7 2.2 3.0
Revenue per HL -3.1 3.2 0.4 1.4 0.5 1.2
Consolidated operating profit (beia)
8.8 16 5.4 -4.5 4.5 8.7
Group Beer volume 6.7 3.7 5.0 -4.2 2.3 2.0
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
BALANCED MARKET FOOTPRINT DRIVING TOP LINE AND PROFITS
1 Head office & eliminations excluded from ‘% of Group’ calculation
2014 FY:ORGANIC GROWTH %
DEVELOPED/DEVELOPINGMARKET SPLIT
2.4%1.5%
5.6%
1.1%
10%
1.7%
Group beer volume
Group revenue Group operating profit (beia)1
Group beer volume
Group revenue
Group operating profit (beia)1
63%
37%
50%
50%
61%
39%
Developing Developed Developing Developed
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
HEINEKEN® BRAND GROWING ACROSS ALL REGIONS
DOUBLE DIGIT GROWTH IN BRAZIL, CHINA, FRANCE, THE UK AND MEXICO
ENCOURAGING PROGRESS IN THE US WITH POSITIVE HEINEKEN® VOLUME IN Q4
SUCCESSFUL ‘THE CITY’ CAMPAIGN, EXCITING PIPELINE FOR 2015 BRAND ACTIVATION AND MARKETING
HEINEKEN® CONSISTENTLY OUTPERFORMING PREMIUM
Source: Canadean – March 2014. FY2014 estimates on beer market and IPS * IPS = International Premium Segment (volume outside home market)
HEINEKEN® PREMIUMVOLUMES 2014FY
1.8%
4.0%
5.1%
Beer market IPS* Heineken®
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
IMPROVING DRAUGHT OFFER
NEW PACK TYPES
BRAND EXTENSIONS
RADLER AND ALCOHOL FREE PROPOSITIONS
INNOVATION DELIVERED €1.5BN REVENUE, RATE OF 7.7%COMPETITIVE ADVANTAGE AND SUSTAINABLE CONTRIBUTOR TO PROFITABILITY
From 1 January 2013, the innovation rate is calculated as revenues generated from innovation introduced in the past 40 quarters for a new category, 20 quarters for a new brand and 12 quarters for all other innovations, excluding packaging renovations divided by total revenue
INNOVATIONREVENUE
2010 2014
€0.4bn
€1.5bn40%
CAGR
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
CONTINUED FOCUS ON DRIVING COST EFFICIENCIES
TCM2 COMPLETED IN H1 2014 AHEAD OF TARGET AND SCHEDULE
DRIVING FURTHER COST SAVINGS:• RIGHTSIZING THE ORGANISATION TO OPTIMISE COST STRUCTURE• DRIVE END2END PRODUCTIVITY TO GROW TOPLINEAND PROFITS• LEVERAGING GLOBAL SCALE THROUGH GBS:
• ADDITIONAL EFFICIENCIES IN HEINEKEN GLOBAL PROCUREMENT (HGP)• EXTENDING GEOGRAPHIC SCOPE AND ACTIVITIES OF HEINEKEN GLOBAL
SHARED SERVICES (HGSS)
FURTHER COST SAVINGS ARE A KEY COMPONENT OF HEINEKEN’S MEDIUM TERM MARGIN GUIDANCE
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
2014 MARGIN EXPANSION WELL AHEAD OF MEDIUM TERM TARGET
MEDIUM TERM GUIDANCE OF YEAR ON YEAR IMPROVEMENT OF APPROXIMATELY 40 BPS
IMPROVING OPERATING PROFITABILITY AND MARGINSCONSOLIDATED OPERATING PROFIT MARGIN CONTINUES TO IMPROVE
2011
14.3%
16.2%
14.7%
15.3%
2012 2013 2014
40 bps
60 bps
90 bps
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
2015 CONSOLIDATED OPERATING PROFIT (BEIA) MARGIN IMPROVEMENT WILL BE SOMEWHAT BELOW THE 40BPS MEDIUM TERM LEVEL DUE TO 25BPS DILUTION FROM THE DISPOSAL OF EMPAQUE. THIS WILL BE PARTIALLY BUT NOT FULLY OFFSET
2015 FULL YEAR OUTLOOK1
COMMITTED TO DELIVERING ON STRATEGIC PRIORITIES –FURTHER REVENUE AND PROFIT GROWTH IN 2015
1Based on consolidated reporting
CONTINUED CHALLENGING EXTERNAL ENVIRONMENT
POSITIVE ORGANIC REVENUE GROWTH:• POSITIVE VOLUME DEVELOPMENT MORE MODERATE THAN 2014 AND WEIGHTED TO H2• REVENUE PER HECTOLITRE TO INCREASE DRIVEN BY REVENUE MANAGEMENT
SLIGHT INCREASE IN MARKETING AND SELLING SPEND (BEIA) AS PERCENTAGE OF REVENUE
INPUT COST PRICES TO BE SLIGHTLY LOWER (EXCLUDING A FOREIGN CURRENCY TRANSACTIONAL EFFECT)
CONTINUE TO TARGET A YEAR-ON-YEAR IMPROVEMENT IN CONSOLIDATED OPERATING PROFIT (BEIA) MARGIN OF AROUND 40BPS IN THE MEDIUM TERM
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
AFRICA MIDDLE EASTStrong results achieved amid volatile trading environment
Solid volume growth across most markets, in particular Nigeria, Ethiopia, Cameroon, Burundi, DRC and Egypt
Organic consolidated revenue/hl declined by 3.1%, due to high license volumes, unfavourablecountry and product mix
Continued capital investment in new capacity across key markets
Heineken® growth of 7.8% driven by South Africa, Nigeria, Cameroon and Algeria
100bps improvement on consolidated operating profit (beia) margin mainly from cost efficiencies
Revenue 2,643 3.5 4.4 3,085 2.7
Revenue/hl (in €) 84 -3.8 -3.1 82 -3.7
Operating profit (beia) 655 7.9 8.8 700 5.2
Operating profit (beia) margin 24.8% +100bps 22.7% +60bps
Total volume 31.6 7.6 7.5 37.6 6.6 6.6
of which:Beer volume
25.0 7.4 7.3 29.3 6.8 6.7
Total Change (%)
Organic Change (%)2014FY 2014FY
Total Change (%)
Organic Change (%)
GroupConsolidated
Mhl/€m
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
AMERICASStrong top and bottom line growth
Solid growth in Brazil,
Mexico, Panama and export
markets resulted in 3.7%
volume growth
Heineken® grew by 4.0%
led by Brazil, Mexico and
export markets
Mexico saw strong profit growth
with 200bps of margin expansion
due to strong topline supported by
ongoing cost efficiencies
Operating profit (beia) increased
organically by 16% primarily due to
double digit growth in Mexico and
positive performance in Brazil
Continued strong
growth of Dos Equis
and Tecate brands in
U.S and Mexico
Revenue 4,631 3.0 6.9 5,401 1.6
Revenue/hl (in €) 85 -0.7 3.2 87 -1.8
Operating profit (beia) 780 8.6 16 887 6.1
Operating profit (beia) margin 16.8% +80bps 16.4% +70bps
Total volume 54.6 3.8 3.7 62.3 3.5 3.7
of which:Beer volume
53.2 3.9 3.9 57.0 3.7 3.7
Total Change (%)
Organic Change (%)2014FY 2014FY
Total Change (%)
Organic Change (%)
GroupConsolidated
Mhl/€m
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
ASIA PACIFICH2 driving growth
Volume growth accelerated in
the second half, with improved
trading conditions witnessed
across key markets
Production capacity expanded
in Vietnam and China, and
new greenfield underway in
Myanmar and East Timor
Market share gains
across key markets:
Vietnam, Taiwan,
Indonesia
Strong double digit
growth of Tiger brand
driven by successful
commercial activation
Consolidated operating profit (beia) up
5.4% organically, with gains from Vietnam,
China, Singapore, Cambodia and export
markets
Revenue 2,088 2.5 5.3 2,455 3.2
Revenue/hl (in €) 112 -1.4 0.4 100 -1.4
Operating profit (beia) 550 2.5 5.4 598 3.0
Operating profit (beia) margin 26.3% 0bps 24.4% 0bps
Total volume 18.7 4.0 4.9 24.5 4.7 4.8
of which:Beer volume
18.3 5.5 5.2 24.0 5.8 5.0
Total Change (%)
Organic Change (%)2014FY 2014FY
Total Change (%)
Organic Change (%)
GroupConsolidated
Mhl/€m
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
CENTRAL & EASTERN EUROPEDelivering margin improvement in a challenging trading environment
Volume impacted by low consumer
confidence, adverse channel mix and
ongoing competitive intensity and
unfavourable weather
Adverse foreign currency
movements, mainly the
Russian Rouble, impact on
reported revenues of -3.7%
Revenue per hectolitre reflects
strategic focus on driving value
growth through premiumisation
and innovation
Despite a challenging trading
environment, ongoing cost
efficiencies resulted in 10bps of
operating profit (beia) margin growth
Revenue 2,868 -7.4 -3.7 3,223 -6.7
Revenue/hl (in €) 65 -2.7 1.4 66 -2.5
Operating profit (beia) 272 -6.3 -4.5 302 -5.8
Operating profit (beia) margin 9.5% +10bps 9.4% +10bps
Total volume 44.4 -4.8 -5.1 49.2 -4.3 -4.4
of which:Beer volume
42.3 -4.4 -4.7 46.0 -4.0 -4.2
Total Change (%)
Organic Change (%)2014FY 2014FY
Total Change (%)
Organic Change (%)
GroupConsolidated
Mhl/€m
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
WESTERN EUROPEStrong Execution & Higher Investments Driving Market Share Gains
Organic volume growth driven by broad-based market
share gains from focused commercial assertiveness,
increased brand investment and a clear consistent
strategy “Not An Inch Back” across the region
Organic revenue growth
supported by improving
volume and revenue per
hectolitre
Strong focus on
innovation and
premiumisation
Operating profit
(beia) grew 4.5% lead
by France, Spain, and
the Netherlands
Revenue 7,478 0.3 2.2
Revenue/hl (in €) 127 1.9 0.5
Operating profit (beia) 852 -0.1 4.5
Operating profit (beia) margin 11.4% 0bps
Total volume 59.0 -1.6 1.7
of which:Beer volume
42.5 0.5 2.3
Total Change (%)
Organic Change (%)2014FY
Consolidated
Mhl/€m
The divestment of Oy
Hartwall Ab in Finland on
23 August 2013 is reported
as a consolidation impact
THE HEINEKEN COMPANY BRANDS & INNOVATION BREWING A BETTER WORLD OUR PRODUCTS: BEER & CIDER RECENT PERFORMANCE
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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 behavior 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, 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 specialized research institutes in combination with management estimates.
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