Welcome. Amsterdam 23 May Heineken N.V.

Transcription

1 Welcome Amsterdam 23 May 2012 Heineken N.V.

2 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

3 Global Business Services Frans Eusman Chief Business Services Officer Amsterdam 23 May 2012 Heineken N.V.

4 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 4

5 Need to leverage global scale driven by HEINEKEN s footprint and growth Group Beer Volumes m hectolitres 5

6 Improved relative positioning for HEINEKEN Implementation of corporate programmes between 2006 and 2010 has improved HEINEKEN s relative positioning: Scope primarily focused at operating company (OpCo) level Benchmarking analysis has identified sizable opportunities to reach world class levels: Global Business Services (GBS) operates with a global focus 6 Source: Hackett

7 HEINEKEN is moving up the globalisation curve Decentralised/ Fragmented Coordinated In-house Practices Shared Services/ In-house BPO/Offshore as Key Strategic Element Global Shared Service Delivery Global Brewing peers Leading FMCG companies (2010) 7 Source: HEINEKEN Note: BPO = Business Process Outsourcing

8 Leveraging scale an important part of HEINEKEN s strategic agenda Grow Heineken brand Consumerinspired, customeroriented, brand-led Capture the opportunities in emerging markets Leverage the benefits of HEINEKEN s global scale Drive personal leadership

9 Scope of Global Business Services Leverage the benefits of HEINEKEN s global scale International Customer Management Supply Chain Treasury Procurement IT 4 Talent Management Innovation Heineken Brand Shared Services Global Brands 9

10 Global Business Services Organisation A clear vision to create sustainable value for HEINEKEN GBS Organisation Mission: To deliver best-in-class services to HEINEKEN OpCos across IT, HEINEKEN Global Procurement GBS IT enabler for HGP and HGSS HEINEKEN Global Shared Services Purchasing and Transactional Finance GBS organisation established in October 2010 GBS initiatives rooted in an existing organisation which will remain in place after

11 GBS a key enabler of TCM2 programme Targeted 500m savings from Supply Chain Wholesale TCM2 Commerce Other 11

12 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 12

13 Key success factors to deliver on our goals 13

14 From inception to first go-live in 18 months October 2010 Establishment of Global Business Services May 2011 Conclusion of strategic assessment August 2011 Creation legal entity for HGSS December 2011 Creation legal entity for HGP March 2012 Operational opening of HGSS in Kraków April 2012 Go-Live of HEINEKEN Romania and UK in HGSS Earlier programmes: Refresh F2F TCM Other initiatives GBS Established STRATEGIC ASSESSMENT & BLUEPRINT CONSTRUCT HGP & HGSS TRANSITION (in waves) OPERATE 14

15 Set-up costs Estimated 200 million investment Functional Cost Split ( 200m) Upfront set-up costs of 200m through to end-2014: Local OpCo Costs Blueprint & IT 32m already incurred in 2011 By 2012, almost half of total costs expected to be expensed Reported as part of organic performance Project Management & Transition Savings will be reported at functional/ OpCo level 15

16 Benefits: Delivering cost efficiency and value Managing input price volatility Leveraging HEINEKEN s scale Supply Chain financing HEINEKEN Global Procurement GBS HEINEKEN Global Shared Services Quality & Value Cost Efficiency Control & Compliance IT enabler for HGP and HGSS Benefits Synergies and scalability for growth One source of truth 16

17 Relevant and sustainable value improvement Qualitative benefits: Transparency Process quality improvement Improved control and compliance Management of input cost volatility Quantitative benefits: measurable and relevant saving opportunities HGSS: HEINEKEN Transactional Finance Costs Europe Indexed to 100 (Base year = 2010) 100 HGP: Purchasing Models: Division of spend 71 Mixed Local/ Central Local Buy-Sell Centre Led Local/Centre of Excellence 2010 Goal Now Future 17

18 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 18

19 HEINEKEN will combine four different models Shifting from a Local to Buy Sell operating model 1 LOCAL Local purchasing 2 CENTRE OF EXCELLENCE HGP Local OpCo Suppliers Suppliers No group involvement in sourcing process Procurement policy & support negotiations enables best practice sourcing 3 4 CENTRE LED HGP BUY-SELL HGP Framework agreements Suppliers Contract Suppliers Visibility of spend enabling leverage of scale HGP controls purchasing enables price volatility reduction 19

20 HGP: Enhancing HEINEKEN s procurement capabilities HGP aims at managing the costs in scope through increasingly centralised models of procurement; from mainly Local towards either Centre Led or Buy-Sell models 20

21 HGP: Delivering benefits for HEINEKEN Managing input price volatility Improve stability and predictability Reduce impact of volatility Leveraging HEINEKEN s scale Significant potential operational savings Conclusion of recent media spend agreement Spend visibility will increase substantially HEINEKEN Global Procurement HEINEKEN Global Shared Services Supply Chain financing GBS Additional sizeable one-off benefit Improve working capital IT enabler for HGP and HGSS 21

22 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 22

23 HGSS: Efficiency and effectiveness in Finance HGSS focus areas Strategy Focused on delivering finance services to OpCos at an optimal price and quality, while embedding a robust control and compliance framework Service Management HGSS Business Solutions Standardisation, efficiency and continuous improvement Governance Processes Organisation & People 23

24 HGSS: The new service delivery model Current State OpCo responsible for complete process The new service delivery model of HGSS requires: OpCos New governance structure Restructuring of the existing organisation, mainly Finance Future State - process split between OpCo and HGSS OpCo Enhancement of capabilities and establishment of the required skills HGSS 24

25 Business processes in scope for HGSS Transaction Finance processes in scope: Order to Cash Accounts Receivable, from customer invoice to cash collection (including dispute management and bad debt provisions) Purchase to Pay Entire purchase process, from purchase requisition to invoice payment Record to Report Period end close, tax and treasury processes Example of process split in the Purchase to Pay process for Vendor invoice processing and payment OpCo Invoice receipt Invoice scanning Reports Analysis and followed up HGSS Invoice entered (A/M) Validation Matching and query management Payments Report Generated 25

26 HGSS: Delivering benefits for HEINEKEN Quality & Value Management can focus more on top line growth and profitability Local finance can focus more on business partnering More effective transactional processes enable, e.g. improved cash management Cost Efficiency Reduction of average cost through economies of scale HEINEKEN Global Procurement HEINEKEN Global Shared Services Higher level of efficiency by standardisation Concentration of processes in optimal location (optimal quality-cost ratio) GBS IT enabler for HGP and HGSS Control & Compliance Higher level of control through standard and consistent ways of working Clarity on roles and segregation of duties More control on security and access rights 26

27 HGSS: Roll-out in full speed Formation of new Finance shared service centre in 1 year HGSS building in Kraków Recruitment poster for HGSS 27

28 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 28

29 IT Enabler for HGP & HGSS Structure of IT Enabler ERP HEINEKEN Romania IT enablement for HPG and HGSS consists of: ERP HEINEKEN UK A Central IT system for HGP and HGSS initiatives HGP and HGSS Central system ERP ERP HEINEKEN France HEINEKEN Ireland Connection between GBS and single OpCos Aligned Master Data as common language ERP HEINEKEN Hungary Master Data Management as common language 29

30 A phased implementation approach Delivering against a clear action plan HGSS: initial scope covers 24 European OpCos HGP: global scope Europe: transition to HGSS and HGP taking place in waves A wave consists of 2 to 4 OpCos at a time OpCos will first transition to HGSS and then to HGP First 3 waves have been identified and OpCos are being mobilised Planned wave timetable for HGSS Wave 2 Wave 1 2 OpCos 3 OpCos FRA IRE HUN Wave 3 4 OpCos AUT BEL CZE POR H Further Waves Other 15 OpCos Next 2 years ROM UK H H

31 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary 31

32 Summary HEINEKEN is strongly committed to better leveraging its global scale and maximising efficiency and effectiveness across all functions GBS organisation to leverage scale across the areas of IT, Purchasing and Finance GBS is a key enabler of the Company s TCM2 ( ) cost saving programme GBS comprises three key pillars: HEINEKEN Global Procurement (HGP) HEINEKEN Global Shared Service (HGSS) IT enabler for HGP & HGSS GBS roll-out is planned in separate waves between now and early

33 Q&A Amsterdam 23 May 2012 Heineken N.V.

34 Biography Mr. Eusman Chief Business Services Officer Joined HEINEKEN in year career spanning various finance and general management roles in Europe and Asia, as well as non-executive board memberships in Africa; held the position of Corporate Control & Accounting Director from 2003 to Managing Director of HEINEKEN France (brewing and wholesale activities): Successfully redesigned HEINEKEN France by aligning the marketing & sales organisations behind a winning brand portfolio and streamlining support and supply functions Recorded considerable market share growth Led a step change in profitability HEINEKEN became the leading brewer in France by turnover in 2008 October 2010 Appointed Chief Business Services Officer for HEINEKEN and became a member of HEINEKEN s Executive Committee 34

35 Agenda 1 GBS Rationale 2 GBS Programme 3 Global Procurement (HGP) 4 Global Shared Services (HGSS) 5 IT Enabler for HGP and HGSS Summary Appendix 35

36 Thank you Amsterdam 23 May 2012 Heineken N.V.