full year 2015 results heineken n.v....guinness anchor berhad, malaysia 51% (indirectly) 7 october...

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Jean-François van Boxmeer

FULL YEAR 2015 RESULTS HEINEKEN N.V.

CHAIRMAN OF THE EXECUTIVE BOARD/CEO

AMSTERDAM, 10 FEBRUARY 2016

Strong performance delivering on strategy

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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.

Disclaimer

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2015 Key Highlights

Organic revenue +3.5% with rev/hl up +1.3%

Consolidated beer volume +2.3% organically with growth from Americas, Asia

Pacific and Europe more than offsetting weaker volume in Africa Middle East &

Eastern Europe

Heineken® volume +3.5% with growth in all regions

Innovation rate 9.2% contributing €1.9bn of revenue

Operating profit (beia) +6.9% organically

Operating profit margin expansion +23bps, in line with full year 2015 guidance

Diluted EPS (beia) up 17% at €3.57

Strong performance delivering on strategy

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Diversified Footprint Driving Balanced Growth

2015 FY Organic growth %

HEINEKEN NV

AFRICA MIDDLE EAST &

EASTERN EUROPE

AMERICAS ASIA PACIFIC EUROPE

Consolidated beer volume

2.3 -2.0 5.1 6.3 1.3

Revenue per hl 1.3 4.3 3.1 -2.1 -0.2

Revenue 3.5 2.7 8.5 4.1 1.4

Operating profit (beia) 6.9 -11 15 9.7 7.3

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Heineken®: Volume Growth Across All Regions

Heineken® volume in the premium segment +3.5%

Double digit growth in Brazil, CCU markets, the UK, South Africa and Mexico

Volume growth in Vietnam and continued improvement in the US

Successful UEFA Champions League, James Bond and Rugby World Cup activation during 2015

Exciting pipeline for 2016, including the “Moderate Drinkers Wanted” and Cities campaigns

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Innovations Contributed €1.9bn of Revenue

1 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

Innovation Rate of 9.2%

LEADING INNOVATION

IN CIDER

LOW/NO ALCOHOL

IMPROVING DRAUGHT

Innovation rate1

4.1%5.3%

5.9%

7.7%

2011 2012 2013 2014 2015

€0.7bn

€1.9bn

2011 2015

28% CAGR

9.2%

Innovation revenueCRAFT/VARIETY

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Delivering Further Margin ExpansionIn line with full year 2015 guidance

16.2%

2014FY operating margin(beia) Dilutive impact Empaque Underlying improvement 2015FY operating margin(beia)

+23bps

• Delivered in a balanced way through effective revenue management, continued focus

on innovation, and investment in our brands, combined with cost effectiveness

-23bps+46bps 16.5%

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Laurence Debroux


MEMBER OF THE EXECUTIVE BOARD/CFO

AMSTERDAM, 10 FEBRUARY 2016

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Financial Overview

Key FinancialsMhl/€m unless otherwise stated 2015FY 2014FY Total Change (%) Organic Change (%)

Revenue 20,511 19,257 6.5 3.5

Operating profit (beia) 3,381 3,129 8.1 6.9

Operating profit (beia) margin 16.5% 16.2% 23bps

Net profit (beia) 2,048 1,758 16 16

Net profit 1,892 1,516 25

Diluted EPS (beia) in € 3.57 3.05 17

Free operating cash flow 1,692 1,574 7.5

Net Debt/EBITDA (beia) ratio 2.4x 2.5x

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Revenue: +3.5% Organic Growth

19,257 20,511

0.5%+2.5%

+2.2% 1.3%

FY14 Revenue Consolidation impact Currency translation Total volume Rev/hl FY15 Revenue

€m

Organic growth +3.5%

€m

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Operating Profit (beia) OG +6.9%

3,129 3,381

-2.1%

+3.3%

+6.9%

2014FY Operating profit (beia) Consolidation impact Currency translation Organic growth 2015FY Operating profit (beia)

€m

€m

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Diluted EPS (beia) €3.57, +17%

€3.05

-€0.10

+€0.12

+€0.50

2014FY Diluted EPS (beia) Consolidation impact Currency translation Organic growth 2015FY Diluted EPS (beia)

EPS +17%

€3.57

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Strong Free Operating Cash Flow

1 Defined as cumulative amounts of year-on-year changes in the Total Working Capital starting from 20102 Capital expenditure related to property, plant and equipment

€m unless otherwise stated 2015FY 2014FY vs. LY

Cash flow from operations (before change in working capital)

4,280 4,279 +1

Change in working capital 371 27 +344

Capital expenditure2 -1,638 -1,494 -144

Free operating cash flow 1,692 1,574 +118

Net debt/EBITDA 2.4x 2.5x4.7%

6.4%7.1%

7.8% 8.0%

0

500

1,000

1,500

2,000

2011 2012 2013 2014 2015

Capital expenditure2 as % of revenue (€ million)

Capex (€m) Capex (% of revenues)

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015

Cumulative working capital contribution to cash flow1

(€ million)

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Financial Guidance for FY 2016

Assuming spot rates as of 4 February 2016 the calculated negative currency

translational impact would be approximately €60 million at consolidated operating

profit (beia), and €35 million at net profit (beia)

Average interest rate of c.3.3% (2015: 3.3%)

Effective tax rate (beia) broadly in line with 2015 (27.8%)

Capital expenditure related to property, plant and equipment should be slightly above

€2 billion (2015: €1.6 billion)

To help modelling for the impact of consolidation of significant 2015 acquisitions*,

proforma full year 2015 net revenue would have been €840m and €110m at

operating profit (beia) level

* These include: Desnoes & Geddes (Jamaica), GAPL Pte Ltd (Singapore)/Guinness Anchor Berhad (Malaysia), Pivovarna Lasko d.d. (Slovenia), DHN Drinks (Pty) Ltd/Sedibeng Brewery (Pty) Ltd (South Africa)

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Summary

Strong performance in FY2015 demonstrating successful delivery of strategy

Continued focus on strategic priorities:

Driving innovation, excellence in execution and investing in our brands

More agile responding to consumer needs and more cost effective

Confident that 2016 will deliver top and bottom line growth, and margin

expansion in line with medium term margin guidance of around 40bps

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Appendix


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More challenging trading backdrop impacting results

Subdued consolidated beer volume

with tough macro-economic conditions

across most markets but with growth in

Ethiopia, in exports and Rwanda

Organic revenue/hl increased by

4.3%, driven by favourable

country, product and price mix

Measured capital investments in the

region, with production capacity being

added in Ethiopia and the formation of

a new joint venture in the Ivory Coast

Decline of -330bps on operating

profit (beia) margin mainly

reflecting a difficult environment

across the region

Revenue 3,263 3,189 2.3 2.7

Revenue/hl (in €) 76 74 2.8 4.3

Operating profit (beia) 579 671 -14 -11

Operating profit (beia) margin 17.7% 21.0% -330bps

Total volume 43.0 43.2 -0.4 -1.6

of which:Beer volume

35.9 36.1 -0.7 -2.0

Total Change (%)

Organic Change (%)

Mhl/€m 2015FY 2014FY

Africa Middle East & Eastern Europe

Affordability an important

theme, currency volatility

clearly also weighing on

results

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Organic consolidated beer volume

grew 5.1% with all key markets

contributing

Heineken® grew organically

by 6.4% led by Brazil, CCU

markets , the US and Mexico

Portfolio strategy, successful across the

region, the addition of Lagunitas and

Red Stripe brands strengthens the

consumer offer

Operating profit (beia) increased

organically by 15% driven by

Mexico and Brazil

Investing for future growth, with

new breweries under construction

in Brazil and Mexico

Revenue 5,159 4,631 11 8.5

Revenue/hl (in €) 90 85 5.7 3.1

Operating profit (beia) 904 780 16 15


Total volume 57.5 54.6 5.4 5.2


56.0 53.2 5.3 5.1

Total Change (%)

Organic Change (%)


AmericasPortfolio strategy driving impressive revenue and profit growth

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Organic consolidated beer volume

growth of 6.3% with Vietnam,

Cambodia, Myanmar, Korea and Sri

Lanka positively contributing

Expanding footprint in high growth

territories, new brewery opened in

Myanmar, building one in East Timor and

increasing presence in Malaysia

Production capacity

expanded in China and

Cambodia

Operating profit (beia) up 9.7% organically,

driven by strong performances in Vietnam,

Mongolia, Singapore, Sri Lanka and Korea

Strong double digit growth of

Tiger brand driven by successful

commercial activation, brand

investments and innovation

Revenue 2,483 2,088 19 4.1

Revenue/hl (in €) 122 112 9.7 -2.1

Operating profit (beia) 702 550 28 9.7


Total volume 20.3 18.7 8.4 6.3


19.8 18.3 8.1 6.3

Total Change (%)

Organic Change (%)


Asia PacificStrong performance even after more challenging 2H

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Organic consolidated beer volume growth of 1.3%,

with continued brand investment and innovations

driving strong growth of the premium brands led

by Heineken® and cider across key markets

Operating profit (beia) grew

7.3% led by Poland, Spain, UK

and France

Heineken® grew by

2.8% led by the UK up

double digit and strong

performance in Spain

Revenue per hectoliter was down

-0.2%, reflecting deflationary and off

trade pressures which limited pricing

Revenue 10,227 9.760 4.8 1.4

Revenue/hl (in €) 100 99 1.1 -0.2

Operating profit (beia) 1,196 1,109 7.8 7.3


Total volume 95.2 91.8 3.7 1.4


76.6 73.6 4.0 1.3

Total Change (%)

Organic Change (%)


EuropePremiumisation driving good profit performance

3Q helped by better weather

which complemented the

success of the

premiumisation strategy

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Material Acquisitions in 2015

Current shareholding percentage

Completion date

Desnoes & Geddes, Jamaica95.8%* (73.3% in October

2015)7 October 2015

Guinness Anchor Berhad, Malaysia 51% (indirectly) 7 October 2015

Pivovarna Lasko d.d, Slovenia 97.5%* (53.4% in October

2015)15 October 2015

Lagunitas Brewing Company, US 50% 15 October 2015

DHN Drinks (Pty) Limited/Sedibeng Brewery (Pty)Limited, South Africa

75% 1 December 2015

Namibian Breweries Limited, Namibia 29.9% (indirectly) 1 December 2015

* After completion of the mandatory takeover bids in January 2016

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2013A 556 556 1.31

2014A 553 553 1.31

2015A 567 567 1.30

2016F 513 438 1.16

2017F 501 134 1.13

2013A 11

2014A 0

2015A 4

2016F* 37

2017F* 18

US Dollar Hedging

Position Impact versus previous year

Net inflowIn USD mln

Hedged Part**Year Hedged Rate*** Year Net Profit

* Impact on open positions calculated by comparing spot rate with previous year’s hedging rate ** Hedging as at 3rd Feb 2016*** Including the costs of hedging

full year 2015 results heineken n.v....guinness anchor berhad, malaysia 51% (indirectly) 7 october...

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