Heineken Malaysia Berhad (Registration No. 196401000020 (5350-X)

56th ANNUAL GENERAL MEETINGFRIDAY, 14 AUGUST 2020

MD’s Presentation

Roland Bala14 Aug 2020

PEOPLE | PLANET | PERFORMANCE

At HEINEKEN Malaysia, we believe in the long-term sustainability of our business and in creating value for our key stakeholders.

We believe that business growth and sustainability go hand in hand with our focus on people, planet and performance.

PEOPLE | PLANET | PERFORMANCE

COMMENDABLE FY19 PERFORMANCE

FY19 vs FY18 (12 months ended 31 December)

Revenue

+ 14%from RM2.03 billion

to RM2.32 billion

Profit Before Tax

+ 8%from RM381 million

to RM412 million Revenue OG +10%

DRIVERSCore Brands & New Launches Cost Efficiencies

World Class Brands & Excellent Execution

KEY POSITIVESExcise Duties Remained Stable Strengthened Government

Commitment against Illicit Alcohol

CHALLENGESPolitical UncertaintyIntensified Competition Illicit Alcohol Market

Focussed & Agile Team

Strong Trade Partners and Route to Market

Weak Consumer Sentiment

Global Trade Wars

PROPOSED DIVIDEND PAYOUT

42 sen

INTERIM DIVIDEND

(Paid in October 2019)

66 sen

FINAL DIVIDEND PROPOSED (Payable on 12 November 2020)

108 sen

TOTAL DIVIDEND FOR FY19

VS FY18 DIVIDEND PAYOUT

94 SEN

DIVIDEND PAYOUT RATIO

104% of Profit After Tax

COMMENDABLE SHAREHOLDER RETURN

0.42

0.66

20.46

27.12

18.0

20.0

22.0

24.0

26.0

28.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

2018 2019

Interim Dividend Final Dividend Closing Share price (RM)

Share Price

Total Shareholder Return in 12 months = 37%

+33%

Dividend

HEINEKEN® 0.0: Growing consumer demand for moderation & wellbeingLaunched in July 2019

NEW LAUNCHES IN 2019Heineken® 0.0

NEW LAUNCHES IN 2019Tiger Crystal

Tiger Crystal: Ultimate Refreshment

Launched in August 2019, positive consumer feedback to date

Crystal Cold Filtered at -1°C 4.2% ABV, Less Bitter, Easy-to-drink

HOME OF WORLD CLASS BRANDS

HEINEKEN®: WORLD CLASS EXPERIENCES

HEINEKEN®: World’s No. 1 International Premium Beer

Key Initiatives:

UEFA Champions League Campaign

Heineken® Live Your Music Events

Heineken® Star Tower Countdown Party

GUINNESS: MADE OF MORE

GUINNESS: No. 1 Stout in Malaysia and the World Over

Key Initiatives:

Guinness St Patrick’s

Guinness Perfect Pour Finale 2019

Guinness Time

TIGER: Malaysia’s No. 1 Beer

Key Initiatives:

Tiger Festive Chinese New Year

Tiger ROAR Project

Tiger Street Football

TIGER: UNCAGING GROWTH IN MAINSTREAM CATEGORY

APPLE FOX: WAYYYY MORE APPLES

APPLE FOX: New Zealand Inspired Cider

Key Initiatives:

Malaysia Book of Records for Art Installation

A Celebration of Wayyyy More Apples

DRINKIES.MY – BRING THE BAR HOME

DRINKIES.my

Significant pick up in growth

First Draught@Home service in Malaysia catering for home parties, family gatherings, events

PUTRA BRAND AWARDS 2019

Malaysia’s Premier Brand Awards Measured By Consumer Preference

BREWING A BETTER WORLDSustainable Business Awards 2019

Best Water Management (2 years in a row)Special Recognition for Sustainability in the CommunitySpecial Recognition for Waste & Material Productivity

NAVIGATING COVID-19 – A CRISIS OF UNPRECEDENTED SCALE

MOVEMENT CONTROL ORDER (18 March to 3 May 2020)

46 DAYSFully Suspended Production & Business Operations

Key Priorities

1. Focus on the health and safety of our people

2. Adapting the business to the new landscape

3. Prudent cost control to preserve cash

1H 2020 PERFORMANCE UPDATE

1QFY20 vs 1QFY19(3 months ended 31 Mar 2020) - 1.8%

from RM525 million

to RM516 million

+ 6%from RM70 million

to RM75 million

1QFY20: Strong CNY Performance in Jan & Feb mitigated impact of MCO

that started 18 March 2020

2QFY20 vs 2QFY19(3 months ended 30 Jun 2020) - 51%

from RM513 million

to RM254 million

- 128%from RM85 million

to (RM24 million)

2QFY20: Prolonged suspension of

operations from 18 March to 3 May 2020

1HFY20 vs 1HFY19(6 months ended 30 Jun 2020) - 26%

from RM1.04 billion

to RM770 million

- 67%from RM156 million

to RM51 million

1HFY20: Gradual recovery of business seen in May & June, however modern on-trade channel still

affected

Revenue Profit Before Tax Commentary

Q2 Net Loss –RM18 million

1H Net Profit RM38 million

IMPACT OF COVID-19 ON THE INDUSTRY

Traditional On-Trade• Mostly closed during MCO• Gradual recovery as lockdowns eased

Modern On-Trade• Mostly closed during MCO• Focussed on delivery/takeaway• Gradual recovery as lockdowns eased• 20% of outlets, those with liquor license

(pubs/entertainment) remain closed

Business Operations• 46 Days of MCO with Zero Revenue

Off-Trade• Increase in demand, unable to distribute

and replenish our products

E-Commerce• Growth in demand for delivery to home

WHAT WE HAVE DONE

• Tiger Beer Save Our Street Food campaign – RM1.5 million fund

• Quart promo to drive traffics

• HEINEKEN Malaysia Raise Our Bars initiative –RM1 million fund

• Supported outlets in serving draught beer for delivery/takeaway

• 1 for 1 keg promo to drive traffic• Working with trade association and government

to re-open outlets

• Worked with distributors to provide access to adequate financing facilities

• Focus on stock replenishment – availability & visibility• Focus on expanding direct distribution

• Drinkies.my available in 7 regions in Malaysia• Launched an official store on Shopee

Distributors• Cash Flow pressures due to affected

collections from customers

ON DIVIDEND

On Dividend

The Board of Directors does not recommend any dividend in respect of the quarter ended 30 June 2020.

In view of the current economic conditions, the Group has adopted a more prudent approach in respect of dividend payment and will re-evaluate the situation at the close of the financial year.

SUPPORTING OUR STAKEHOLDERS

We are HEINEKEN.We are here with you.

OUTLOOK 2HFY20 Uncertainties- COVID-19 Impact and Duration- Global Economy- Malaysian Economy & Consumer Sentiments- Political Uncertainties

Key Priorities- Health & Safety of People- Business Continuity & Adapting to New Landscape- Prudent Cost Control to Preserve Cash

Key Positive- Strong Portfolio of Brands - Beers & Stouts- Strong Asian & Local Brands- Strong Route to Market – Traditional & Digital- Strong and Agile Team- Renewal of Agreement to brew, market and distribute

Diageo brands

ONGOING INDUSTRY ISSUES

ILLICIT, 28%

LEGAL, 72%

BEER MARKET IN MALAYSIA

ILLICIT LEGAL

Illicit Trade

- Estimated 28% of beer market in Malaysia is illicit

- Estimated RM1.2 billion in taxes not paid every year due to illicit trade

- Sale of illicit beer on online and social media channels observed to be growing

- Industry continues to support Government in its efforts to address this issue - capability building & Awareness.

- We urge the Government to continue improving Enforcements through Multi Agency Task Force

ONGOING INDUSTRY ISSUES

Drink Driving- Less than 1% of Road Fatalities are due to drunk driving – WHO 2018 report & Malaysia Govt Stat 19/3/2020 - Recent attention on the issue of drink driving leads to proposed new retail restrictions- HEINEKEN Malaysia reaffirms its commitment to Advocating Responsible Consumption.- Annually, the Heineken® brand spends 10% of its media budget on promoting responsible consumption

- Through the Heineken® brand’s Global F1 partnership, we send a clear message to all consumers: “WHEN YOU DRIVE, NEVER DRINK.”

DR

INK

SEN

SIB

LY

20

10

-2

01

9

Over

15.7 millionengagements

(online & offline)

Engaged close to

700,000consumers

Offered over

21,000GRAB codes to

revellers

Partnered with

60 outlets to educate consumers

Over

18,000followers on social media

Heineken Malaysia Berhad (Registration No. 196401000020 (5350-X)

56th ANNUAL GENERAL MEETINGFRIDAY, 14 AUGUST 2020