Zoeterwoude, 10 June 2011

Transcription

1 Zoeterwoude, 10 June 2011

2 Zoeterwoude, 10 June 2011 Leveraging Heineken's unique footprint for sustainable advantage Marc Gross Chief Supply Chain Officer

3 Agenda 1 Heineken Supply Chain Today 2 Our Vision 3 Track Record of Success 3

4 The Beer Supply Chain from harvest to consumer 4

5 The Heineken Supply Chain Managing growth and complexity Producing more than 200 million hl Production Plant Network 146 majority owned plants, with additional 50 plants under technical management 65 breweries brewing Heineken Receiving bottles and cans from 160 supply plants Our central quality laboratory analyses 125,000 samples per year Serving 152,000 refreshments per minute Note: Operations include joint venture and other partnerships 5

6 Regional organisation with strong central governance HR Business Partner & Legal Marc Gross Chief Supply Chain Officer Global Logistics Henk van Rooijen Research and Innovation Willem van Waesberghe TPM Chris Kerr Supply Chain Policies Henk de Bruin Supply Chain Services Pieter van der Meulen Supply Chain Control Magne Setnes Western Europe Wiggert Deelen Central & Eastern Europe Lorenzo Pomini Africa & Middle East Robert Bosman Americas Wilbert Raaijmakers Asia Pacific Hein van Dort Malting Albert Arjen van der Woude Empaque Jorge Luis Ramos Regional Presidents 6

7 Significant growth over past 10 years Group volume (mhl) A lean central support structure: 250 Femsa Cerveza & United Breweries Focus on business needs BBAG S&N High performance culture Close working relationship with local operations Agile center of expertise

8 Continuous improvement and cost leadership through a full scale of supply chain services Engineer, Build & Operate Logistics, Design & Operation GSC Research & Innovate Continuous improvement & Cost leadership Quality, Integrity & responsibility Supply Chain Management 8

9 A lean Central Supply Chain organisation Half the people supporting three times more volume Production VOLUME +200% 2000: 67 mhl 2010: >200 mhl Beverage PLANTS +215% 2000: : 196 Central ORGANISATION -55% 2000: 490 FTE 2010: 220 FTE 9

10 Agenda 1 Heineken Supply Chain Today 2 Our Vision 3 Track Record of Success 10

11 Continuous improvement is our vision To continuously improve Heineken s position as a leading international brewer through world class supply chains Cost Quality and Sustainability Capabilities and Innovation World Class Speed of Execution Service and Customer Value 11

12 Focus on people and capability building More than 40,000 employees in Supply Chain Breakdown of Supply Chain employees by region Key global positions appointed centrally Succession planning Internal & external recruitment Western Europe Africa & Middle East Global Talent Management Strong bench strength International Graduate Programme Americas Asia Pacific Programmes & Courses Heineken University: > 60 courses Training with top institutes e-learning Head office Central & Eastern Europe On-the-job Training International assignments/ rotations Development plan/ feedback 12

13 Research and Innovation Central solutions deployed world-wide Process Sustainable and efficient production New processes for volatile demand Modular, cost effective installations Product Improving barley for high quality Enhancing Draught experience New products and tastes Harmonising and improving packaging Sustainability Reducing consumption of energy and water Lightweighting of packaging Roll-out of Green fridges and cooling 13

14 Service agreements adding value Joint Ventures License Operations Acquisitions Benchmark Optimise Operate TPM Engineering Construction Supply Support Product quality Recipe management Product development Product quality Operational excellence CapEx and asset utilisation Knowledge transfer TPM 14

15 Committed to reducing our impact on the environment and realising further savings Brewing a Better Future programme 2020 brewery targets: Reduce CO2 emissions from fossil fuels to 6.4 kg CO2/hl Reduce water consumption to 3.7 hl/hl Water Consumption hl/hl -30% -20% Energy Consumption MJ/hl -19% -24% F F 15

16 Agenda 1 Heineken Supply Chain Today 2 Our Vision 3 Track Record of Success 16

17 We are constantly adapting to changing market conditions Footprint Programme closed or sold 47 plants in Europe over last 10 years Constantly monitoring developments to balance cost and service All breweries have a defined role in the network Brewery closed Malting plant closed 17

18 Expanding in growing markets 7 greenfield breweries in 4 continents over past three years Sedibeng (South Africa) and Guangzhou (China) built in record time World s first full Continuous Process brewery in Lubumbashi (DRC) in 2008 Sedibeng Guangzhou 18

19 Example: Building a growth platform in Nigeria Nigeria: Brewery footprint Nigerian Breweries Consolidated Breweries Sona Volume CAGR of 12% in the past five years 12 breweries 250m invested since 2007 in modernisation and expansion Volume produced (mhl) 2011 acquisition of Sona Group added 3.7mhl capacity Training schools and TPM driving sustainable performance Developing local raw material and packaging sourcing

20 Supply Chain committed to operational excellence and cost reduction Others 34% Total Cost Savings (%) Supply Chain 50% Supply Chain has delivered 50% of cost savings over past 5 years TPM delivering sustainable results Focus on operating processes driving continuous improvement 16% Cumulative Cost Savings ( m) 904 Rigorous performance management process Supply Chain Wholesale Others

21 Productivity has doubled since 2000 driving lower fixed cost per hl Western Europe: +101% Productivity Mhl produced Production productivity Central & Eastern Europe: +167% Productivity , , , , , , ,00 - Fixed and variable cost/hl, Global Fixed prod cost/hl Variable prod cost/hl -35% Mhl produced Production productivity

22 Summary Exploiting Supply Chain as a strategic asset Maintaining a lean central governance structure Relentless effort to eliminate losses and reduce costs Realising synergies from recent acquisitions Enabling growth in emerging markets Responding to changing consumer demands World-wide focus on knowledge sharing and capability building Building a world class Supply Chain! 22

23 Zoeterwoude, 10 June 2011