Heineken NV 2014 company presentation

Global Corporate Relations | August 2013 Global Corporate Relations | March 2014

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Content

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The world’s most international brewer

No 1 in Europe and No 2 in the world by revenue

Operations in over 70 countries globally

Brewing great beers, building great brands

Committed to surprising and exciting consumers everywhere

Long and proud history and heritage

HEINEKEN | Proud, Independent, Responsible Global Brewer

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HEINEKEN | Our Values

Enjoyment we bring enjoyment to life

Respect for individuals, society and the planet

Passion for quality

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HEINEKEN | Brewing Great Beers, Building Great Brands

Heineken®, our flagship brand, is the world’s leading international premium beer

Desperados, Sol, Affligem and Strongbow Apple Ciders complement our global brand portfolio

Altogether, we have over 250 international premium, regional, local and specialty beers and ciders in our portfolio

Passion for quality and Innovation are at the heart of how we build great brands and delight our consumers

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HEINEKEN | A Long and Proud History & Heritage

1864 The Heineken Family enters the beer business

1869 We switch to bottom fermentation: clearer, purer, long lasting beer

1886 Dr. H. Elion cultivates the Heineken A-yeast => unique flavour

1889 We are crowned at the Grand Prix Paris for quality, focused innovations

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1928 Early stages of unique advertising and becoming truly international

1929 HEINEKEN moves into Asian markets

1933 Heineken® is the first import beer to the US after Prohibition is repealed

1954 Alfred Heineken begins ‘Beer Can Travel’ global marketing strategy

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1968 HEINEKEN acquires Amstel Brewery

2008 Acquisition of Scottish & Newcastle

2012 Acquisition of Asia Pacific Breweries

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2010 Acquisition of FEMSA Cerveza

1982 Production transfer from Amsterdam to Zoeterwoude in the Netherlands

2003 Acquisition of Brau-Beteiligungs A.G. (BBAG) in Austria


HEINEKEN | Truly Global Presence

>165 breweries in over 70 countries

>85,000 employees

>Group Beer Volume* in 2013: 195.2 million hl

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* Consolidated beer volume plus attributable share of beer volume from joint ventures and associates

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HEINEKEN is Unique

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1 Grow the Heineken® brand

2 Be a consumer-inspired, customer-oriented, brand-led organisation

3 Capture the opportunities in emerging markets

4 Leverage the benefits of HEINEKEN’s global scale

5 Drive personal leadership

6 Embed and Integrate Sustainability

Shaping Our Future | Our Global Priorities

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Heineken® is our most valuable brand

The world’s leading international premium beer with 20% category share

Strong global brand equity

Strong global platforms to further grow the brand

Priority 1 | Grow Heineken® Brand

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Priority 2 | Be Consumer-inspired, Customer-oriented, Brand-led

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1 Expansion of global brands Desperados, Sol, Affligem and Strongbow Apple Ciders

2 Continue to invest in and win with local brands

3 Create value for our customers

4 Innovation at the heart of our business

Priority 3 | Capture the Opportunities in Emerging Markets

HEINEKEN has transformed its emerging market footprint

57% of HEINEKEN’s operating profits and 62% of volumes come from higher growth markets

Seize significant growth potential in Africa

In Asia Pacific, seize opportunity for premium beer

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% of total Group in 2013

62% 49%

57%

38% 51% 43%

Group beer volume

Group operating

profit (beia)1

Group revenue

Developing Developed

Head office & eliminations excluded from ‘% of Group’ calculation

Priority 4 | Leverage the Benefits of HEINEKEN’s Global Scale

The establishment of Global Business Services is a key enabler

HEINEKEN Global Shared Services

HEINEKEN Global Procurement Company

Global brand building

Supply Chain optimisation

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Priority 5 | Drive Personal Leadership

>70 operating companies

>85,000 employees

One HEINEKEN culture driven by

Diversity

Capability

Personal accountability

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Sustainability is a critical part of how we do business

10-year integrated sustainability programme launched in 2010

On track to meet 2020 goals

Highlights of 2012:

Continued progress water and energy efficiency of our breweries, offices and warehouses

93% of our new fridges are green

Local sourcing projects in 10 countries across Africa, benefiting more than 100,000 farmers and their families

Global Industry Commitment to a new series of targeted actions to reduce alcohol related harm

Our Supplier Code signed by 528 global and more than 34,000 local suppliers

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Priority 6 | Embed and Integrate Sustainability

Highlights of 2013 available in April 2014, pending publication of Sustainability report 2013

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Ownership Structure and Stock Exchange Listing

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Per 1 February 2014

Organisational Structure

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Our Executive Board

Jean-François van Boxmeer

Chairman of the Executive Board and Chief Executive Officer

René Hooft Graafland

Member of the Executive Board and Chief Financial Officer

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Our Leadership Structure and Team

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Content

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World-class Brand Portfolio

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Heineken® is our flagship brand and the world’s leading international premium beer

Desperados, Sol, Affligem and Strongbow Apple Ciders complement our global brands portfolio

Altogether, HEINEKEN has over 250 international premium, regional, local and specialty beers and ciders

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Source: Canadean and HEINEKEN

2013 reflects latest Canadean estimates

20%

10% 9%

5% 4%

3% 3% 2% 2%

1%

Heineken® share of IPS (2013)

Heineken® | Clear Leadership in International Premium Segment

The world’s most valuable international premium beer brand

You can find Heineken® in almost every country in the world

It sets us apart from our competitors

Heineken® | Our Flagship Brand

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Heineken® | Passion for Quality One world, one taste, one unchanged recipe

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Heineken® | Open-minded Available everywhere in the world

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Leading premium product platforms

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Heineken® | Igniting Conversations

Heineken® | World-class Premium mindset in everything the brand does

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Heineken® | Igniting Conversations Strong presence in social media

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Heineken® | Igniting Conversations The Man of the World uses his imagination to win and get to the Grand Final.

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Heineken® | Igniting Conversations ... and rugby THE game

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Heineken® | Igniting Conversations Always at the heart of social, catching experiences…

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Heineken® | Igniting Conversations … and partner with the ultimate Man of World – James Bond

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Heineken® | Igniting Conversations Making responsible consumption aspirational

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Desperados

A daring proposition pushing the beer category limits

A unique Tequila Flavoured Beer with super premium positioning

More than a beer for more than just a party: a tequila flavoured party

A successful and profitable business model

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Sol®

The beer of independent Mexico

The original, easy to drink Mexican beer, born in 1899 in independent Mexico

Part of the HEINEKEN portfolio since the FEMSA beer business acquisition in 2010

Enjoyed in over 40 countries around the world

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Affligem®

Timeless pure indulgence from Belgium

An award-winning Belgian Abbey beer with a 1000 year history

Unchanged recipe that is only brewed in Belgium under the close supervision of the monks of the Affligem Abbey

Part of the HEINEKEN portfolio since 2002

The legacy of craft will be shared with over 20 countries in 2014.

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Strongbow Apple Ciders

Reaching consumers that beer can’t

HEINEKEN is the world’s leading cider producer with leading cider research and development capabilities

Strongbow is the world’s leading cider brand

Available in a great new range of flavours: Gold, Honey and Red Berries

Proposition with unisex appeal

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Innovation is at the heart of our Company strategy to deliver top-line growth

We work to continually surprise and excite our consumers and meet changing consumer preferences

We reached an Innovation Rate of 5.9% in 2013

Delighting Our Consumers with Innovations

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Successful Innovation across HEINEKEN

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HEINEKEN has achieved an Innovation Rate of 5.9%

This is a combined result of successful local innovations launched across our HEINEKEN markets and roll-out of innovations with global approach

In October 2013, HEINEKEN unveiled The SUB® - an at-home draught beer system to be launched in markets from 2014

Radler | A major contributor to Innovation Rate

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A refreshing mix of beer and natural lemonade

Attracts new drinkers into the beer category

Strong profitability

Strengthens brand equity

Launched in 31 markets across all 5 regions

Draught Experiences for On-trade | Heineken Extra Cold

Extra cold beer

Served between -3oC and +1oC

“A new beer experience”, beer poured from a stylish column coated with a layer of ice

More than 85,000 installations across 107 markets

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Draught Experiences for On-trade | David GREEN

The world’s 1st GREEN draught system

Uses 50 to 70% less energy than regular beer coolers

Easy to use for outlet staff

No cleaning cost, no beer losses

100% Quality & Profitable

Mobile and built-in versions

Guaranteed fresh beer for 30 days

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David GREEN: 55+ markets David XL GREEN: 10+ markets

Draught Experiences for On-trade | Orion

Draught beer as fresh as from the brewery

Branded beer tanks visible in an outlet

Unique consumer experience and highest freshness

Convenience for outlet staff

Grow volume & revenue

Available in 6 markets

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Content

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Sustainability

What does this mean for HEINEKEN?

Part of our DNA; embedded in our Company values that guide how we relate to the world

Historical commitment

One of our business priorities in our Strategy to Win

Considering long-term impact of our actions, not just short-term growth

A tremendous opportunity to “do good while doing good business”

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Sustainability

Why is it critical to our future?

With success and leadership comes responsibility

It safeguards our future ability to continue to produce beer and cider for our consumers

Positively impact the role of beer in society

Working together with all stakeholders we will define the best solutions

Employees, Consumers, Customers and Retailers, Governments, NGOs, Shareholders and Investors, Media

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The most urgent challenges faced by our industry and our planet

Water scarcity

Less than 1% of world’s water us both accessible and drinkable. We need water to grow crops and we need it to brew beer: beer is 95% water.

The effects of climate change

Co2 emissions contribute to climate change causing temperatures and sea levels to rise. This has an impact on the availability and cost of raw materials and other resources.

Population pressures on food and resources

The demand for food crops rises, making responsible agriculture and sourcing more important than ever. We want to operate in a way that guarantees our supply of raw materials.

Alcohol related harm

Most people enjoy our products responsibly, a minority don’t. This is damaging to the individuals, the people around them and to our industry, society and HEINEKEN’s reputation.

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Protecting water resources

Reducing CO2

emissions Sourcing

sustainably Advocating responsible

consumption

Our response: A focused agenda

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1Baseline 2008

2020

Specific water consumption

Reduce by 25% to 3.7 hl/hl1

Water balancing

Significant water balancing in water scarce and distressed areas

1Baseline 2008

Protecting water resources

Reducing CO2 emissions

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1Baseline 2008

2Baseline 2011, scope is 24 of our largest operations

2020

In production Reduce by 40%1 (eq 6.4 kg CO2/hl)

In fridges Reduce by 50%

In distribution Reduce by 20%2 in Europe and the Americas

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Sourcing sustainably

1With local sourcing we refer to sourcing within the Region Africa 2based on volume 3barley, hops, cider apples, other apples, other fruit, sugar, rice, sorghum, wheat, maize

2020

Local sourcing in Africa

60% of raw materials locally sourced1

Sustainable agriculture

At least 50% of our main raw materials supplied from sustainable sources2,3

Supplier Code Procedure

Ongoing compliance to Supplier Code Procedure

The basis for our ways of working with suppliers: Implementation of the Supplier Code Procedure

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Advocating Responsible Consumption

1Small export markets and markets with religious restrictions are out of scope

2020

Industry Commitments

Deliver global industry commitments

Heineken® Making responsible consumption aspirational through Heineken®

Partnerships Maintaining and publicly reporting on a partnership in each market1

Values and Behaviours Embedded in our Code of Business Conduct

Key policies for employees are embedded in our HeiCode

Health & Safety

Employee & Human Rights

Cool@Work and Alcohol Policy

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Benchmarking our Performance

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Memberships and Partnerships

Beverage Industry Environmental Roundtable

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Content

All Natural Ingredients

Nature provides us with beer’s 4 basic ingredients:

barley, water, hops and yeast

All these ingredients can be varied

in endless combinations

Some estimate there are > 40,000 different beers

in the world!

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Storehouse of Nutrients

No Additives; No Preservatives

No Fat

Vitamins B1, 3 and 11

Minerals

Antioxidants

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Relatively Low in Calories

Source: Netherlands Nutrition Centre Average serving: Beer 250 ml, Wine 150 ml, Smirnoff Ice 250 ml.

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Beer Complements Food

The subtle taste of beer can complement

food just as well, or even better than, wine

Beer can be a perfect match for some foods,

like spicy dishes, cheese and chocolate

In pairing beer with food, you can

complement or contrast the flavours and

intensity of the food

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Beer May Have Positive Health Effects if Consumed Moderately

Source: Jonathan Powell, MRC Human Nutrition Research, Cambridge, UK

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Telling the Positive Story of Beer

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Cider – The Art of Pomology

Cider is a long alcohol drink made from fermented juice of

apples or pears

The Bulmers cider business was established in 1887

in Hereford, England

Herefordshire – still to date the heartland of our cider

production - has the perfect soil type and weather conditions

to grow cider apples

Our biggest cider brands are Strongbow Apple Ciders,

Stassen and Bulmers*

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*In Ireland, Bulmers is not part of our portfolio

HEINEKEN | Global Leader in Cider

HEINEKEN leads the global cider category with

20% market share

The global cider market was 19.9 million

hectolitres in 2012

Source: Canadean Wisdom Database February 2014

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Content

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2013 | Continued progress against strategic priorities in a challenging year

Group revenue +1.3%; +0.1% organically:

Group revenue per hectolitre +2.7%

Improved H2 volume performance in Western Europe and Africa Middle East

Group operating profit (beia) +2.8%; +0.6% organically:

+20 basis points improvement in operating margins

Market share gains in key markets:

Mexico, Vietnam, France, Russia and the U.S.

APB maintained strong growth momentum

Strengthening our business through higher investments in marketing and capital expenditure

Innovations delivered €1.1billion of revenues; 5.9% innovation rate

Accelerated TCM2 cost savings of €300 million

Diluted EPS (beia) of €2.75 includes a 10 cent negative impact from revised IAS19 and foreign currency translational movements

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Organic growth calculations throughout this presentation assume HEINEKEN’s joint venture share of 41.9% of APB prior to consolidation is maintained through to 15 November 2013. Organic growth of consolidated volume, consolidated revenue and consolidated operating profit (beia) only includes an impact from APB from 16 November to 31 December 2013. Organic growth calculations are adjusted for the previous 3-month delay reported by APB, without a restatement to 2012.

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* Includes acquisitions and excludes disposals on a 12 month pro-forma basis

2013 | Financial Overview

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2013 consolidated financials organic growth %

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2013 | Regional Review

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Sustained growth of APB

Volume

7%

Operating profit (beia)

14%

APB: 2013 proforma organic growth

Tiger brand: Proforma organic volume growth

2009 2010 2011 2012 2013

CAGR +18%

APB acquisition +30% yoy

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Driven by Western Europe and Africa Middle East regions

Improved performance trend in 2013 H2

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Innovation rate1 of 5.9% versus 5.3% in 2012

Innovation contributed €1.1bn of revenues

Radler beers available in 5 regions New variants

Draught beer systems (on and off premise) New cider flavours

1 From 1 January 2013, the innovation rate is calculated as revenues generated from innovations (introduced in the past 40 quarters for a new category, 20 quarters for a new brand and 12 quarters 8 for all other innovations, excluding packaging renovations) divided by total revenue

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Heineken® twice as large as nearest competitor brand in IPS

Heineken®: Clear leadership in IPS

Heineken® volume declined 1.8%, including an impact from destocking in France and the U.S.

Strong performances in developing markets of Nigeria, South Africa, Russia, Chile, Brazil & China

Heineken® volume brand leadership in France

Surpassed 1mhl of Heineken® volume in China

‘Open Your World’ campaign driving brand equity

The SUB® launched in France and Italy

New responsible consumption campaign in 2014: “Dance More, Drink Slow”

20%

10% 9%

5% 4%

3% 3% 2% 2%

1%

Heineken® share of IPS (2013)

IPS = International Premium Segment; based on Canadean and HEINEKEN data; 2013 reflects latest Canadean estimates

1 Invest in higher marketing spend to strengthen market positions

2 Drive innovation to support category growth

3 Capitalise on premium segment growth with Heineken® and other global brands

4 Increase capital expenditure in developing markets

5 Restructuring and other cost efficiency initiatives

6 Maintain strong cash flow focus to optimise financial flexibility

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Prioritised actions for 2014

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HEINEKEN expects

A gradual recovery in the global economy to underpin improved trading conditions in several key markets and an improved organic volume performance trend versus 2013.

Revenue management initiatives to drive higher revenue per hl, albeit at a more modest level compared with 2013. Overall, this is expected to result in organic revenue growth in 2014.

A slight increase in marketing & selling (beia) spend as a percentage of revenue to increase in 2014 (2013: 12.6%).

HEINEKEN is committed to delivering a gradual and sustainable improvement in operating profit (beia) margin over the medium-term.

To realise its targeted TCM2 savings of €625 million covering 2012-2014 during the year

Input cost prices to be stable to slightly lower in 2014 (excluding a foreign currency transactional effect).

Exchange rate movements will adversely impact revenues and profits in 2014. Assuming spot rates as of 10 February 2014, the calculated negative currency translational impact on consolidated operating profit (beia) will be €115 million. At net profit (beia), this effect will be around €75million.

To achieve its long-term target net debt/ EBITDA (beia) ratio of below 2.5 by the end of 2014.

Capital expenditure related to property, plant and equipment to be approximately €1.5bn (2013: €1.4bn).

Outlook Full Year 2014

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Content

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The Brewing Industry Top 10 in 2012

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Source: Canadean Wisdom Database July 2013 For HEINEKEN, Consolidated beer volume 2012

Industry Consolidation

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Source: Canadean Wisdom Database July 2013

World Beer Market Growth

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Litres per Capita Consumption by Region

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Consumption Volume Development 2012 versus 2011

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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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