Welcome - Heineken
Transcription
Welcome - Heineken
Welcome Paris | 20 June 2012 Heineken N.V. 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 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. 2 Deutsche Bank Global Consumer Conference 2012 HEINEKEN: HEINEKEN: Leading in Western Europe Didier Debrosse Regional President, Western Europe Paris | 20 June 2012 Heineken N.V. Agenda HEINEKEN: Leading in Western Europe 1 Western Europe Beer Market 2 HEINEKEN in Western Europe 3 HEINEKEN’s Value Growth Strategy 4 Western Europe is a large and resilient beer market… market… Western Europe Beer Market*: 1991-2020F (mhl) CAGR 1991-’11: -0.3% 2008-’11: -1.4% 2011-’20F: 0.0% mhl 200 180 United Kingdom 160 Spain 140 France 120 Italy 100 Netherlands Belgium 80 Portugal 60 Switzerland 40 Finland 20 Ireland 0 1991 5 1996 2001 2006 Source: Plato Logic May 2012. * HEINEKEN Western Europe Region (10 countries) 2011F 2016F …offering access to a significant profit pool HEINEKEN Western Europe markets represent a profit pool of circa €2.2billion Western Europe Beer Profit Pool* 65 Ireland Market EBIT (€)/ hl 55 45 35 Belgium 25 15 Switzerland Italy Neth. Spain Portugal France 5 -5 25 35 45 55 65 = size of profit pool (€100m) 6 Source: Plato Logic May 2012, HEINEKEN * HEINEKEN Western Europe Region markets only (10 countries); 2010 profit pool UK Finland 75 85 95 Beer per Capita Consumption Evolving trends in the European beer market Opportunities Resilience of beer category Premiumisation Segmentation Innovation Shifting channel preferences 7 Challenges Economic challenges Changing demographics Private label penetration Growing discounter presence Regulatory changes Agenda HEINEKEN: Leading in Western Europe 1 Western Europe Beer Market 2 HEINEKEN in Western Europe 3 HEINEKEN’s Value Growth Strategy 8 HEINEKEN is the leading brewer in Western Europe… Market Share 25-50% 10-25% 2 1 1 2 2 2 2 1 1 # = position in market (by beer volumes) 9 Source: 2011 Plato, Canadean, ACNielsen, HEINEKEN 2 …contributing significantly to cost savings and cash generation… Western Europe has realised over 50% of €1.1bn Group cost savings from 2006-2011 Free operating cashflow: 2009-2011 Western Other regions: 49% Europe: Western Europe: Other 51% regions: 44% 56% Key contributor to new TCM2 cost saving programme (2012-2014) Improved working capital management 25 Net working capital days 6 2009 10 2010 -3 2011 …delivering strong profit growth Western Europe EBIT BEIA development: (2006-2011) EBIT (beia) (€m) 2006-2011 Organic EBIT BEIA CAGR: +7% 1000 June 2010 Divestment WTBS November 2011 Acquisition of Galaxy Pub Estate January 2008 900 800 Acquisition of Scottish & Newcastle 700 June 2008 Acquisition Eichhof 600 2006 11 2007 Source: HEINEKEN beia = before exceptional items and amortisation 2008 2009 2010 2011 Agenda HEINEKEN: Leading in Western Europe 1 Western Europe Beer Market 2 HEINEKEN in Western Europe 3 HEINEKEN’s Value Growth Strategy 12 Increased focus on driving toptop-line growth 1 Category Management 13 Category Vision Positive story of beer Responsible consumption 2 Brand Management Global brand priorities Winning local brands Innovation 3 Channel Management On-premise “Push & Pull” Wholesaler optimisation Retailer partnerships Reinvigorating beer through category leadership …by creating change across all four key stakeholders and achieving a Win-Win “Beer is exciting” “Shopping Hell” “Shopping Heaven” CUSTOMER Pay to Play Permission to Play Gaining Share Growing Share Disproportionately SHOPPER “Beer is boring” COMPANY CONSUMER Category Vision is about driving long-term, sustainable growth for HEINEKEN and our customers… ShareShare-gain strategy 14 CategoryCategory-growth strategy (with disproportionate share growth) Communicating the positive story of beer Local platforms to foster category growth Italy: Birra Moretti and Food platform Digital platform: Aassociation of Italian Chefs, high cuisine I LOVE BEER France: Tendances Biere New platform based on naturalness of beer, sensuality, conviviality (2011) Ireland: This is Beer New digital platform based on 3 natural ingredients, sensuality, beer and food (2011/ 2012) 15 Motto: « Beer reconnects you to nature » Leading responsible consumption in the UK Internal 2003 - 2006 Remove 3 litre & extra free PET Delist High Strength Ciders Drinkaware founding member External Addaction Partnership 2007 - 2010 Getting Fit to Lead 16 Building Reputation 2011 - ... Responsibility Deal – Unit reduction & Glassware pledges Awarded BiTC Platinum Plus Leadership [[[[[ SUNRISE COMMERCIAL ]]]]]] 17 Building winning portfolios with local brands 18 Italy: Birra Moretti Spain: Cruzcampo UK: Foster’s Strongest brand equity of Italian beers Strong regional brand; 84% On-premise market share in Andalusia No.1 lager brand in Off-premise France: France: Pelforth Portugal: Sagres Exceptional volume growth: +9.7%* # 1 national beer brand; 43% market share * 2007-2011 CAGR Heineken®: Global communication & activation platforms supporting growth Heineken®: Western Europe Region* (2006-2011 CAGR volume growth %) Digital CONVERSATIONS +1.9% Beer Market IPS Heineken® -1.3% -1.6% Beautiful DESIGN ASPIRATIONAL Communication WORLDCLASS Sponsorships 19 Source: Plato 2011 Report, HEINEKEN * Beer Market and International Premium Segment (IPS) growth rates based on Plato definition of West & Other Europe (excluding Germany, Greece, Austria, Turkey and Cyprus) Desperados: Globalising a super premium brand Desperados: A real success story in France Replicating success in new markets Established Desperados value market share in France Off-premise: 8.2 5.8 5.9 6.0 6.3 6.7 7.4 2005 2006 2007 2008 2009 2010 2011 20 Source: SymphonyIRI HMSM New markets HEINEKEN is the global leader in the high growth cider category Strong Cider Platform 21 Leading UK cider position New Strongbow campaign New flavour variants Global rollroll-out of Strongbow Gold Global brand priority New markets Build category Target new consumer occasions Building Innovation Capabilities Stassen acquisition: In-house R&D expertise Innovation pipeline Innovation focused on value enhancing propositions Innovation rate* in Western Europe (2011-2014F) 6% Successful Innovation in Western Europe 5.5% 5% 4% 2.9% Alcohol Free 3% Brand Line Extensions Bulmers: New cider flavour 2% 1% 0% 2011 22 2014F *Innovation rate calculated as revenues generated from innovations introduced in the past 12 quarters divided by total revenue 4 litre PET keg Heineken® Limited Edition gift packs [[[ COMMERCIAL FOSTERS GOLD ]]]]]]] 23 An evolving retail landscape is shaping HEINEKEN’s channel strategy Western Europe Channel development (2000-2020F): Off Premise 46% 57% 70% On Premise 54% 43% 30% 2000 24 Source: Plato, Canadean 2010 2020F Brand building and strong sales execution to drive value in OnOn-premise channel From “Push” to “Push & Pull” approach PUSH Distribution orientated Finance-led negotiations Execution-based Return on Net Assets Price management & PULL Brand-led approach Right product for right outlet Prioritised channels Segmented customers Non-visible to visible + Sales organisation designed to deliver: Customer Value Consumer Brand Experience 25 From the uninspiring... 26 ...to a dynamic consumer experience 27 Wholesale secures outlet reach and product availability in high value onon-premise channel 3k 23k €2.5 billion wholesale revenue in Western Europe ~170,000 170,000 customers Provides access to signficant on-premise beer value chain 3k 10k 60k 33k 38k # = number of HEINEKEN wholesale customers served 28 Source: HEINEKEN Wholesaler optimisation initiatives: Product portfolio management Reducing cost-to-serve Working capital reductions Access to outlet data Winning in offoff-premise through strong commercial execution & retailer partnerships 1 Must Stock Brands 2 Category Captainship Example of brand activation at a Carrefour store in Paris HEINEKEN European Key Retail beer volume growth (2011 vs. 2010) 9.4% 3 7.3% Joint Business Planning 3.2% On- & OffPremise 29 Source: HEINEKEN * Pan-European retailers Off-Premise International Customers* France: OffOff-premise leadership through premiumness, premiumness, innovation and consumer focus Value market share: Hyper/Supermarkets (%) 40.7 37.4 36.8 36.1 ∆ -8pt ∆ +5pt 32.5 34.9 32.9 17.8 16.5 12.3 9.9 2007 2008 HEINEKEN 2009 Carlsberg 2010 ABInBev 2011 Others Heineken® brand value market share vs. main competitor brand % Off-Premise 18.8 15.4 2007 Heineken® 30 17.3 16.6 2008 Main competitor brand Source : HEINEKEN, SymphonyIRI HMSM 2011 18.5 16.7 2009 18.9 18.9 15.4 2010 14.1 2011 Summary Western Europe is a large, highly profitable and resilient beer market HEINEKEN benefits from strong leading positions in Western Europe 31 Region a significant contributor to group cost savings and cash management improvements Proven track record in delivering consistent profit growth in a challenging environment Top-line development to be prioritised, through leveraging leadership in brands, innovation and in-market execution Questions Please Paris | 20 June 2012 Heineken N.V.