HEINEKEN NV: Heineken N.V. reports 2013 third quarter results

        HEINEKEN NV: Heineken N.V. reports 2013 third quarter results

Amsterdam, 23 October 2013 - Heineken N.V. today announced its trading update
for the third quarter of 2013.

HIGHLIGHTS

  *Group revenue: +1% reported; +0.4% on an organic basis
  *Group revenue per hectolitre +2.7%; sustaining investment in innovation
    and marketing to support revenue development
  *Group beer volume stable on a reported basis; organically 2% lower,
    primarily driven by beer market weakness in Central & Eastern Europe
  *Continued solid performance of acquired operations of Asia Pacific
    Breweries[1]
  *Heineken® volume in the premium segment returned to growth in the quarter
  *Implementing restructuring and other cost efficiencies initiatives across
    Europe under current TCM2 programme
  *HEINEKEN now expects 2013 net profit (beia) to decline in the low
    single-digits, on an organic basis (previously 'broadly in line with last
    year')

CEO STATEMENT

Jean-François van Boxmeer, Chairman of the Executive Board & CEO, commented:
"In the quarter, the recently acquired business of Asia Pacific Breweries
again achieved solid growth. We also witnessed an improved sequential volume
trend in Western Europe, resulting in a number of share gains across the
region. However, underlying trading conditions across Europe remain
challenging, as evidenced by a weak consumer environment in Central & Eastern
Europe in the quarter. As a consequence, we are accelerating efforts to drive
improved efficiencies, particularly in Europe, through restructuring and other
cost related initiatives. Looking forward, we remain confident that our broad
geographic spread and strong brand portfolio will continue to support
long-term growth for HEINEKEN."

OPERATIONAL OVERVIEW

Key figures[2]                Consolidated                Group
(in mhl or € million)     3Q13    Total  Organic  3Q13    Total  Organic
                               growth % growth %       growth % growth %
Revenue
Heineken N.V.[3]         5,179        4        - 5,693        1        -
      Africa Middle East   585       -9       -3   705      -11
                Americas 1,160       -3        2 1,397        2
            Asia Pacific   494     >100        -   540       66
Central & Eastern Europe   895       -9       -4 1,006       -8
       Western Europe[4] 2,150       -1        1 2,150       -1
Beer volume
Heineken N.V.             48.3        5       -3  52.8        -       -2
      Africa Middle East   5.5       -2       -2   6.8       -1       -2
                Americas  13.0       -4       -2  13.8       -4       -2
            Asia Pacific   4.3     >100        -   5.5       45        2
Central & Eastern Europe  13.0       -8       -8  14.2       -8       -7
          Western Europe  12.5        1        2  12.5        1        2

[1] Asia Pacific Breweries Ltd and Asia Pacific Investment Pte Ltd
[2] Refer to the Definitions section  for an explanation of non-IFRS  measures 
and other terms used throughout this report
[3] Net of head office & eliminations
[4]  Following  the  sale  of  Oy  Hartwall  Ab,  volume  and  financials  are 
deconsolidated from 1 September 2013

Heineken®                         3Q13 Organic        YTD Organic
(in mhl)                                growth       2013  growth
                                             %                  %
Heineken® in premium segment      7.6       1       20.9      -1
          Africa Middle East    0.8       1     2.5       3
                    Americas    2.2      -1    6.3      -2
                Asia Pacific    1.6       2    4.5       1
    Central & Eastern Europe    0.7      -5    1.8      -1
              Western Europe       2.3       4    5.8      -4

Group beer volume decreased by 2% organically (including the benefit of one
additional selling day in the quarter), primarily reflecting weakness in
Central & Eastern Europe beer markets. This was partly offset by an improved
volume performance in Western Europe. Heineken® volume in the international
premium segment grew by 1%. Key markets contributing to Heineken® brand growth
in the quarter were France, Brazil, Spain, Nigeria, China and South Korea.

Group revenue was slightly ahead of the prior year quarter (+0.4%), on an
organic basis. Group operating profit (beia), on an organic basis, was
slightly lower, reflecting a stable revenue performance and higher phasing of
marketing spend in the quarter.

Consolidated revenue increased 4% to €5,179 million, including a positive net
consolidation impact of 7% (+€369 million) and an unfavourable foreign
currency effect of 3% (-€171million) following the depreciation of a number of
key currencies against the euro. Organically, consolidated revenue increased
by 0.2%, with a total consolidated volume decline of 3.2% more than offset by
a 3.4% increase in revenue per hectolitre (including a positive country mix
impact of 1%).

Reported net profit in the quarter was €483 million compared with €568 million
in the third quarter of 2012. This includes net exceptional items and
amortisation costs of €70 million in the quarter (compared to €38 million in
the prior year period).

OUTLOOK STATEMENT

(Based on consolidated reporting)

During the third quarter, weak beer market conditions in Central & Eastern
Europe and the delayed economic improvement in key developing markets, led to
a lower than expected volume performance. HEINEKEN will support operating
profit (beia) with a continued focus on cost efficiencies and revenue
management initiatives. Below operating profit, recent unfavourable currency
movements impacted on other net finance expenses in the third quarter.
Consequently, HEINEKEN now expects full year net profit (beia) to decrease in
the low single-digits, on an organic basis (previously 'broadly in line with
last year'). The recent strength of the euro against a number of key
developing market currencies, is now expected to result in a combined impact
of foreign currency translation movements and consolidation changes reducing
full year 2013 net profit (beia) by approximately €40 million (based on
current spot rates). HEINEKEN reaffirms all other elements of its full year
outlook for 2013 as stated in its first half 2013 earnings release dated 21
August 2013.

TOTAL COST MANAGEMENT 2 (TCM2)

HEINEKEN continues to make strong progress under the current TCM2 programme.
In response to the ongoing challenging trading environment in Europe, HEINEKEN
is further intensifying efforts to optimise its cost structure in Europe,
including head office functions. In the second half of 2013, HEINEKEN will
incur pre-tax exceptional costs of approximately €70 million related to
rightsizing and other restructuring activities across Europe. Of this amount,
€16 million is non-cash related. These activities are expected to generate
recurring annualised benefits from 2014 onwards and form part of the
additional €100 million of cost savings (previously announced in August 2013)
under the current TCM2 programme ending 2014.

REGIONAL REVIEW

Africa Middle East
Consolidated revenue declined by 3% organically in the quarter, with solid
revenue per hectolitre growth of 4% offset by lower total volume. Total group
volume declined by 6% reflecting a 2% decrease in beer volume and double-digit
decline in non-beer volume. The decline in non-beer volume follows the planned
discontinuation of certain SKU's in the soft drink and water categories in
Egypt and Tunisia, respectively, to deliver value growth. A resurgence of
social unrest in Egypt and ongoing volatility in the Democratic Republic of
Congo particularly impacted beer volumes in the quarter. Volume in Nigeria was
slightly lower as inflationary pressures, tight credit conditions and high
unemployment continue to impact consumer spending. Despite challenging
economic conditions in South Africa, volume in the quarter grew in the low
single-digits led by a solid performance of the Amstel brand, in combination
with a strong Heineken® brand performance in the first nine months of the
year.

Americas
Consolidated revenue grew 2% organically in the quarter, largely driven by
successful revenue growth initiatives across the region. Group beer volume
declined by 2%, mainly due to the subdued beer market in Brazil. Continued
economic uncertainty in Brazil contributed to soft consumer spending in the
country and a high single-digit volume decline, with lower sales of the
mainstream portfolio only partly offset by solid growth of the Heineken®
brand. In Mexico, volume declined slightly, reflecting the impact of hurricane
weather in September. In the US, sales to wholesalers and sales to retailers
were both broadly stable (adjusted for one additional selling day),
contributing to continued market share gains in the country. This follows
strong double-digit volume growth of Dos Equis, Tecate Light and Strongbow,
partly offset by lower volume of the Heineken® brand.

Asia Pacific
Group and consolidated volume and financials include the full consolidation of
APB, acquired on 15 November 2012. The organic growth calculation for
consolidated volume and financials only reflects performance in export
markets. Group beer volume grew organically by 2%, reflecting a solid volume
performance in the key markets of Vietnam, Indonesia, China and Papua New
Guinea. This performance was partly offset by lower volume in India following
a prolonged monsoon season and the continued adverse impact of earlier
regulatory changes introduced in the state of Tamil Nadu. Higher volume of the
Heineken® brand was supported by strong growth in China and South Korea. The
Tiger brand grew by 20%, led by continued strong growth momentum in Vietnam
and China.

Central & Eastern Europe
Consolidated revenue declined by 4% organically in the quarter, as weaker than
expected beer market conditions were only partly offset by solid revenue per
hectolitre growth of 3%. Group beer volume declined by 7% organically,
reflecting lower consumer spending in Russia, Romania and Greece and poor
weather across the region in September. Amidst challenging beer market
conditions, HEINEKEN maintained its overall market share in the region. The
Russian beer market was adversely impacted by earlier regulatory changes,
destocking from distributors and unfavourable weather, contributing to a
double-digit volume decline. Renewed political uncertainty and continued
adverse economic conditions in Greece led to a double-digit volume decline.
The Romanian beer market was affected by difficult economic conditions and
poor weather, leading to significantly lower volume. Volume in Poland grew in
the low single-digits, although revenue growth was held back by the continued
impact of negative channel mix. Volume in the quarter was also higher in
Austria, Germany and Serbia.

Western Europe
Consolidated revenue grew 1% organically in the quarter, representing a solid
recovery compared to the first half of 2013. Group beer volume grew by 2%,
organically, led by volume growth across the key markets of UK, Netherlands,
France and Spain. This was only partly offset by lower volumes in Italy,
Belgium and Switzerland. This improved volume performance reflects the benefit
of favourable weather early in the quarter and success of local and global
brand innovation, contributing to overall share gains across the region. In
particular, 'Radler' flavour brand extensions launched earlier this year in
nine markets in the region continued to gain consumer traction. However,
despite a better volume performance in the quarter, underlying trading
conditions in the region are expected to remain challenging, against a
difficult economic backdrop and the impact of austerity measures.

DEFINITIONS

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) is treated as a
non-organic item.

ENQUIRIES

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 N.V.
Financial Markets Conference, Mexico         5-6 December 2013
Financial results for the full year 2013     12 February 2014
Trading update for Q1 2014                   24 April 2014
Annual General Meeting of Shareholders (AGM) 24 April 2014

Conference call details

HEINEKEN 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 Company's 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 8296      Local line: +44 (0)20 342 719 04
National free phone: 0800 020 2576 National free phone: 0800 279 4992

United States of America
Local line: +1 646 254 3388
National free phone: 1877 280 2342

Participation/ confirmation code for all countries: 1809737

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. The Company'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. The Company 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. Our 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.

Disclaimer:
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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