Report of the Executive Board

Transcription

1 Operational Review HEINEKEN is focused on six business priorities. Each one helps us to achieve our goal of winning in all markets with Heineken and with a full brand portfolio in markets where we choose. Grow the Heineken brand Consumer-inspired, customer-oriented and brand-led Capture the opportunities in emerging markets Leverage the benefits of HEINEKEN s global scale Drive personal leadership Embed and integrate sustainability 9 Heineken N.V. Annual Report 2014

2 Grow the Heineken brand The Heineken brand is a key strategic asset and the undisputed leader in the international premium segment (IPS). Activated in 44 markets DANCE MORE DRINK SLOW global enjoy responsibly campaign with DJ Armin van Buuren CITY BOTTLES purchase intent 7% Reached 13.4m people... every match #SHARETHESOFA 76% share of voice of all sponsors ACTIVATED IN 110 MARKETS 19% Heineken SHARE OF helping consumers all over the world to share and enjoy the secrets of their city 1bn + specially designed City Bottles distributed across the world NEW STAR CAN design unveiled IT S ALL ABOUT THE PERFECT SETTING Pop-up City Lounge launched during London Design Week THE LEGENDARY The stories continue with The Odyssey and The City Local topspin in 60 markets See our latest campaigns: Available in 150 markets 10 Heineken N.V. Annual Report 2014

3 Consumer-inspired, customeroriented and brand-led HEINEKEN is committed to being part of the conversation with consumers and being recognised as the preferred partner for its customers. Now in 85 countries Volume 19% CIDER CATEGORY GROWING 2.5x FASTER THAN BEER 21 BRANDS SOLD IN 50 COUNTRIES AVAILABLE 4 MARKETS IN 9 BRANDS AND GROWING Volume* 39% Now in 56 countries FASTEST GROWING BRANDS #1 CIDER PRODUCER In-store theatre UEFA Champions League promotion in Europe 9 STRATEGIC RETAILERS; 15,000 STORES; MORE THAN 10% SALES UPLIFT NOW AVAILABLE IN 41 MARKETS ALCOHOL FREE RADLER Launched in key European markets 1.5bn REVENUE FROM INNOVATION 7.7% innovation rate in 2014 FROM 5.9% in 2013 To learn more about our innovations, visit: * Sol Premium excluding Mexico 11 Heineken N.V. Annual Report 2014

4 Capture the opportunities in emerging markets HEINEKEN has transformed its emerging market presence in recent years through a clear acquisition strategy and strong organic growth. CONTINUED INVESTMENT IN EMERGING MARKETS Asia Pacific Revenue 5.3% CHINA Groundbreaking for new brewery August 2014 REGIONAL 55% volume growth Mexico ETHIOPIA First brew in our new brewery July 2014 INVESTING IN CAPACITY Cambodia, Indonesia and Vietnam POWER BRANDS 21.8% volume growth Vietnam Americas Operating profit (beia) Africa Middle East Total volume 23.5% China 16% 7.5% Heineken VOLUME GROWTH IN KEY COUNTRIES 13.5% South Korea LOCAL Mexico Nigeria Indonesia 35.3% 26.8% Brazil Mexico Tecate 15.2* mhl Star 3.2* mhl Bintang 1.6* mhl Explore our regional and local brands: *Source: Company data 12 Heineken N.V. Annual Report 2014

5 Leverage the benefits of HEINEKEN s global scale HEINEKEN is investing in new business initiatives aimed at better leveraging the global scale of its operations. HEINEKEN SHARED SERVICES (HGSS) DELIVERING EFFICIENCIES 25% REDUCTION IN COST PER INVOICE 20% INCREASE IN PRODUCTIVITY INVOICE PROCESSING 22Operating Companies now migrated transactional finance activities to Kraków EXCELLENT OUTLET EXECUTION PROGRAMME LAUNCHED WORLDWIDE DELIVERING CONTINUOUS IMPROVEMENT IN SALES PROCESSES 399 LINE managers trained in 15 OpCos HGSS KRAKÓW 677 Employees 24 Nationalities 25 Languages SALES EXECUTION MOBILE PILOTED AND TO BE ROLLED OUT IN 2015 ONE IT PROCUREMENT DRIVING COST SAVINGS & ECONOMIES OF SCALE MANAGING INPUT PRICE VOLATILITY SAVING COSTS ENERGY SAVING IMPROVING EFFICIENCY 1,000+ LOCATIONS CONNECTED TO NETWORKS Discover what is happening at HEINEKEN: 13 Heineken N.V. Annual Report 2014

6 Drive personal leadership HEINEKEN employs more than 81,000 people in over 70 countries. As our business continues to grow in scale and complexity, people are our main source of competitive advantage. Relaxed Love it TRAINING Participative Confused Angry All is well Aligned Help! Happy 3*h**#" Sad Proud No worries Switched on 5'2!&#" -j 86% RESPONSE Engaged e Collaborativ self! Express your Listen! Stretched Unsure rvey 2014 r Climat6e - Su 27 Octobe th th 73 OPCOs 35 LANGUAGES GENERAL MANAGER CAMPUS PROGRAMME FEEDBACK FROM OUR PEOPLE ON WAYS TO CREATE A BETTER PLACE TO WORK CUSTOMISED BUSINESS SCHOOL EXECUTIVE EDUCATION SPOTLIGHT ON AFRICA MIDDLE EAST SIMPLE AND CLEAR HEINEKEN BEHAVIOURS 700 NEW SALES COLLEAGUES ON-BOARDED INTERNATIONAL GRADUATE PROGRAMME (IGP) NEARLY FROM MORE THAN APPLICATIONS COUNTRIES 20, Heineken N.V. Annual Report FIRST LINE MANAGERS (FLM) WENT THROUGH TRAINING 78% OF ALL FLMS TRAINED SINCE 2012 LAUNCHED TO 81,000+ EMPLOYEES Developing our leaders Helped 500 of our leaders with structured feedback and coaching To support the Company strategy Explore HEINEKEN as a place to work:

7 Embed and integrate sustainability Brewing a Better World is about creating real sustainable value for all our stakeholders. It is integral to enabling the Company to achieve its business objectives. 48 MARKETS HAVE A STAKEHOLDER PARTNERSHIP TO ADDRESS ALCOHOL RELATED HARM MEETING CONSUMER NEEDS WITH NO AND LOW ALCOHOL BEERS: CONSUMPTION ADVOCATING RESPONSIBLE Three new markets started with Water Stewardship activities: Algeria, Indonesia & Nigeria PROTECTING WATER RESOURCES DECREASING WATER CONSUMPTION IN BREWING PROCESS: NEW 2020 TARGET 3.5 hl/hl Previously 3.7hl/hl FEATURED IN THE CDP CLIMATE PERFORMANCE LEADERSHIP INDEX A-LIST REDUCING CO2 EMISSIONS WE'RE INCREASING OUR USE OF RENEWABLE ENERGY SOURCES: 90% of the waste heat generated by a nearby industry is now used in our Wieselburg brewery (Austria) 4,000 solar panels installed in our Tadcaster brewery in Yorkshire SOURCING SUSTAINABLY NIGERIA MoU signed with government to focus on Sorghum hybrids; programme with Dutch government to develop Cassava with smallholder farmers AFRICA 10 INITIATIVES IN 8 COUNTRIES ETHIOPIA Barley supply contracts in place with 6,000+ smallholder farmers RWANDA Project to develop maize with smallholder farmers started in June SOUTH AFRICA Consortium created to develop barley supply with smallholder farmers In the middle of this year we changed the name of our programme to Brewing a Better World to reflect a greater attention to the here and now, with sustainability fully embedded in the business and introducing two new focus areas. Growing with communities Ensuring our growth is with and not at the expense of our communities and stakeholders. Promoting health and safety Greater visibility and action in order to reach our goal of zero fatalities and fewer accidents. Take a look at our targets: 15 Heineken N.V. Annual Report 2014