HEINEKEN Holding NV : Heineken Holding N.V reports 2013 half year results: Resilient performance in challenging market

  HEINEKEN Holding NV : Heineken Holding N.V reports 2013 half year results:
            Resilient performance in challenging market conditions


  *The net result of Heineken Holding N.V.'s participating interest in
    Heineken N.V. for the first half of 2013 turned out at €320 million;
  *Group revenue grew 3% including the full consolidation of APB[1];
    organically, group revenue 1% lower with a total volume decline of 3% and
    revenue per hectolitre up 2%;
  *Group operating profit (beia) increased 5%; organically, group operating
    profit (beia) was in line with last year;
  *Strong underlying performance of APB, with volume growth of 10% and
    operating profit growth of circa 20%; integration successfully completed;
  *Developing markets delivered 7% organic operating profit (beia) growth and
    now comprise half of group operating profit (beia);
  *€139 million of pre-tax TCM2 cost savings delivered in the first half of
    2013; additional programme cost savings of €100 million identified;
  *Net profit (beia) of €679 million, broadly in line with prior year on an
    organic basis; 


Key financials[2]                       HY13        HY12  Total Organic growth
(in mhl or € million unless                             growth              %
otherwise stated)                                             %
Group revenue[3]                      10,375      10,070      3             -1
Group revenue/ hl (in €)                  94          90      4              2
Group operating profit (beia)         1,448      1,378      5              -
Group operating profit (beia)
margin                                 14.0%       13.7% +30bps
Consolidated revenue                   9,354       8,778      7             -3
Consolidated operating profit
(beia)                                 1,327       1,150     15             -2
Net profit (beia)                     679      688     -1              -
Net profit of Heineken Holding N.V.      320         384    -17
Diluted EPS (in €)                      1.11    1.33    -17
Free operating cash flow                 178         345    -48
Net debt/ EBITDA (beia)[4]              2.9x        2.2x

[1]Asia Pacific Breweries and Asia Pacific Investment Pte Ltd
[2]Refer to the Definitions and Glossary sections for an explanation of
non-IFRS measures and other terms used throughout this report; 2012 financials
have been restated for the impact of revised IAS19
[3] New Group metrics have been introduced to provide better insight into the
contribution of HEINEKEN's joint venture and associate businesses to overall
group performance. Group figures are calculated as the sum of all
consolidated operations and HEINEKEN's attributable share in joint ventures
and associates. Comparative 2012 financials have been adjusted for the impact
of revised IAS19, which is treated as an inorganic item. Reference is made to
the Heineken N.V. press release of 6 August 2013.
[4]Includes APB on a 12 month combined pro forma basis

Heineken Holding N.V. engages in no activities other than its participating
interest in Heineken N.V. and the management and supervision of and provision
of services to that company.


(Based on consolidated reporting)

  *Top-line:For the remainder of the year, economic uncertainty and ongoing
    weak consumer sentiment is expected to persist across many key markets.
    Consequently, although HEINEKEN benefited from better weather conditions
    in July in Western Europe and anticipate improved volumes in some
    developing markets, HEINEKEN does not expect a material change to
    underlying trading conditions across the majority of its markets.
  *Marketing and selling expenses: HEINEKEN still expects marketing and
    selling (beia) expense as a percentage of revenue to remain broadly stable
    in 2013 (2012: 12.2%) demonstrating a continued commitment to invest in
    brands and innovation.
  *Input costs: HEINEKEN still forecasts a slight increase in input cost
    prices in 2013 (excluding the effect of currency translation).
  *Total Cost Management 2 (TCM2): Following the identification of additional
    cost savings, HEINEKEN now expects to realise an approximate €625 million
    (previously €525 million) of cost savings under the 3-year TCM2 programme
    ending 2014. HEINEKEN expects to incur an approximate €70 million of
    upfront Global Business Services (GBS) costs in 2013.
  *Effective tax rate: HEINEKEN still expects the effective tax rate (beia)
    in 2013 to be in the range of 27% to 29% (2012: 26.6% restated for revised
    IAS19). The higher tax rate can be primarily explained by the result of
    favourable outcomes with tax authorities in 2012 and the full
    consolidation of APB which is subject to a higher effective tax rate.
  *Interest rate: HEINEKEN still forecasts an average interest rate of around
    4.5% in 2013 (2012: 5.4%) reflecting lower coupons on recent bond
  *Acquisition of APB: The acquisition of APB is still expected to be
    marginally accretive to earnings per share in 2013.
  *Net profit (beia): HEINEKEN expects netprofit (beia) to be broadly in
    line with last year on an organic basis. The combined impact of
    consolidation changes and foreign currency translation movements are
    expected to reduce full year 2013 net profit (beia) by approximately €25
    million. This includes a negative consolidation impact of €40 million in
    2013 related to revised IAS19.
  *Cash flow/ capital expenditure: In 2013, capital expenditure related to
    property, plant and equipment (including APB) is forecasted to be €1.4
    billion (previously €1.5 billion; 2012: €1.2 billion). HEINEKEN still
    expects a cash conversion ratio of below 100% in 2013. HEINEKEN remains
    committed to achieving its long-term target net debt/ EBITDA (beia) ratio
    of below 2.5 times by the end of 2014.


According to the articles of association of Heineken Holding N.V. both
HeinekenHolding N.V. and Heineken N.V. pay an identical dividend per share.
In accordance with the existing dividend policy, HEINEKEN fixes its interim
dividend at 40% of the total dividend of the previous year. As a result, an
interim dividend of €0.36 per share of €1.60 nominal value will be paid on 3
September 2013. Both the Heineken Holding N.V. ordinary shares and the
Heineken N.V. shares will trade ex-dividend on 23 August 2013.


Organic growth excludes the effect of foreign currency translational effects,
consolidation changes, accounting policy changes, exceptional items and
amortisation of acquisition-related intangibles. Beia refers to financials
before exceptional items and amortisation of acquisition-related intangibles.
Group figures include HEINEKEN's attributable share of joint ventures and
associates. Organic growth calculations assume HEINEKEN's joint venture share
of 41.9% of APB and 50% of APIPL prior to consolidation is maintained through
to 15 November 2013. Organic growth of consolidated volume, consolidated
revenue and consolidated operating profit (beia) excludes any impact from
APB/APIPL. Organic growth on group volume and group financials includes an
impact from APB/APIPL. Organic growth calculations are adjusted for the
previous 3-month delay reported by APB and APIPL, without a restatement to
2012. Comparative 2012 financials have been adjusted for the impact of revised
IAS19. In 2013, the first time impact of revised IAS19 on operating profit
(beia), EBIT (beia), net profit (beia) and EPS (beia) will be treated as a
non-organic item.


Media                            Investors
John Clarke                      George Toulantas
Head of External Communication   Director of Investor Relations
John-Paul Schuirink              Aarti Narain
Financial Communications Manager Investor Relations Manager
E-mail: pressoffice@heineken.com E-mail: investors@heineken.com
Tel: +31-20-5239355              Tel: +31-20-5239590

Investor Calendar Heineken Holding N.V.

What's Brewing Seminar, New York        6 September 2013
Trading update for Q3 2013              23 October 2013
Financial Markets Conference, Mexico    5-6 December 2013

Conference call details

Heineken Holding N.V. will host an analyst and investor conference call in
relation to this trading update today at 10:00 CET/ 9:00 BST. The call will be
audio cast live via the website:
www.theheinekencompany.com/investors/webcasts. An audio replay service will
also be made available after the conference call at the above web address.
Analysts and investors can dial-in using the following telephone numbers:

Netherlands                        United Kingdom
Local line: +31(0)20 716 8257      Local line: +44 (0)20 34271918
National free phone: 0800 020 2576 National free phone: 0800 279 4977
United States of America
Local line: +1 646 254 3363
National free phone: 1877 280 2296

Participation/ confirmation code for all countries: 8100988

Editorial information:
HEINEKEN is a proud, independent global brewer committed to surprise and
excite consumers with its brands and products everywhere. The brand that bears
the founder's family name - Heineken® - is available in almost every country
on the globe and is the world's most valuable international premium beer
brand. HEINEKEN's aim is to be a leading brewer in each of the markets in
which it operates and to have the world's most valuable brand portfolio.
HEINEKEN wants to win in all markets with Heineken® and with a full brand
portfolio in markets of choice. HEINEKEN is present in over 70 countries and
operates more than 165 breweries. HEINEKEN is Europe's largest brewer and the
world's third largest by volume. HEINEKEN is committed to the responsible
marketing and consumption of its more than 250 international premium,
regional, local and specialty beers and ciders. These include Heineken®,
Amstel, Anchor, Biere Larue, Bintang, Birra Moretti, Cruzcampo, Desperados,
Dos Equis, Foster's, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star,
Strongbow, Tecate, Tiger and Zywiec. HEINEKEN's leading joint venture brands
include Cristal and Kingfisher. The number of people employed is over 85,000.
Heineken N.V. and Heineken Holding N.V. shares are listed on the NYSE Euronext
in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg
under the symbols HEIA NA and HEIO NA and on the Reuter Equities 2000 Service
under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American
Depositary Receipt (ADR) programmes: Heineken N.V. (OTC: HEINY) and Heineken
Holding N.V. (OTC: HKHHY). Most recent information is available on HEINEKEN's
website: www.theHEINEKENcompany.com.

This press release 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 exchange-rate fluctuations, changes 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 are only relevant as of the date of this
press release. HEINEKEN does not undertake any obligation to release publicly
any revisions to these forward-looking statements to reflect events or
circumstances after the date of these statements. Market share estimates
contained in this press release are based on outside sources, such as
specialised research institutes, in combination with management estimates.

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Source: HEINEKEN Holding NV via Thomson Reuters ONE
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