Heineken Financial Markets Conference 2013 Mexico City

HEINEKEN FINANCIAL MARKETS CONFERENCE 2013 MEXICO CITY

HEINEKEN Americas: Winning with Brands

PETER HALL Regional Marketing Director

Mexico City | December 5-6, 2013 | Heineken NV AGENDA

HEINEKEN Americas: . BRANDS AT THE CORE Winning with Brands ® . Heineken AND GLOBAL BRANDS DRIVE PREMIUM

. REGIONAL POWER BRANDS FOR NORTH AMERICA

. BRAND BUILDING CAPABILITIES

2 BRAND BUILDING A CORNERSTONE OF HEINEKEN’S GLOBAL STRATEGY 1 GROW 2 CONSUMER- 3 CAPTURE THE 4 LEVERAGE 5 DRIVE 6 EMBED & Heineken® INSPIRED, OPPORTUNITIES THE BENEFITS PERSONAL INTEGRATE BRAND CUSTOMER- IN EMERGING OF HEINEKEN’S LEADERSHIP SUSTAINABILITY ORIENTED, MARKETS GLOBAL SCALE BRAND-LED The role of brand building in our global strategy

. Grow Heineken® . Raise the . Building Winning . Develop . Step Change . Responsible Disproportionately Innovation Rate Portfolios the Global Brands Marketing . Consumption . USA volume stabilization . Accretive . Projects completed in . Super premium Capabilities . Heineken® brand . Global Platforms . Mainstream innovation Mexico, Brazil, Haiti expansion in Mexico . Full engagement Sunrise campaign . UCL . Pack / Size / Affordability and Bahamas and Brazil with HEINEKEN . James Bond . . Co-development Commerce University . Legends of best practices . Local courses . Expansion in developing . Master classes markets Win in Top Cities . 4 years of Brand Building . NYC, LA, Buenos Aires, Awards Santiago, Rio, Sao Paulo . Building a common and Mexico City language . Launch of Best Practices

3 INSIGHT AND SEGMENTATION MATCH BRANDS TO DIVERSE CONSUMER OCCASIONS Needstates 6. 3. Drinking 7. Cosy 8. Quality 2. Have a 5. Time for a 9. Everyday 4. Daily 1. Come 10. Relaxing Letting Go! with your party Time Quick Drink Small Glass Meal Refreshment Home & with mates at home over Food at Home Relax your mates

5. Becoming a

man

14% % % 4. Adolescent % % 7. Social

Identity Seekers Everyday 20

experience 1.

6. Quality 3% 14%

explorers down wind times

3. Price - Conscious

Traditionalists

15% 7% 7%

7. Just Plain % %

Normal is More go! Letting

4 9.

than Enough good Sharing 6.

13% 13%

home Enhance the moment 1 momentthe Enhance

2. Simply

3. food

Hedonistic with yourmates 9 Relaxing

Social

Quality time overtime Quality

Typologies

10.

tion at tion

Everyday refreshment refreshment Everyday

Traditionalcelebra

enhancement enhancement 5.

1. Experienced 8. 2. Calvinists 4.

4 AMERICAS REGIONAL BRAND OVERVIEW A strong line up of local, regional and international brands Mexico USA Brazil Canada Chile Argentina Panama Haiti Bahamas St Lucia Suriname Heineken® Heineken® Heineken® Heineken® Heineken® INTERNATIONAL Heineken® Heineken® Heineken® Heineken® Heineken® Strongbow Strongbow Amstel Light Sol Amstel Heineken® Strongbow Sol Guinness1 Guinness1 Guinness1 Desperados PREMIUM Coors1 Strongbow Desperados Corona2 Guinness1

DOMESTIC Imperial2 Bohemia Xingu Royal Guard Budweiser2 PREMIUM Newcastle REGIONAL Dos Equis Dos Equis Dos Equis Tecate Newcastle BRANDS Tecate

(UPPER) Sol Cristal2 Panama Schneider2 Prestige Kalik Piton Parbo MAINSTREAM Indio Escudo2 Soberana

Superior (LOWER) Kaiser Palermo2 Carta Blanca Eclipse Bavaria Bieckert2 MAINSTREAM Kloster

1 Represents Licensed brands 2 Represent Partner brands 5 Heineken® may include Heineken Light AGENDA

HEINEKEN Americas: . BRANDS AT THE CORE Winning with Brands ® . Heineken AND GLOBAL BRANDS DRIVE PREMIUM

. REGIONAL POWER BRANDS FOR NORTH AMERICA

. BRAND BUILDING CAPABILITIES

6 Heineken® AND GLOBAL BRANDS DRIVE PREMIUM AS MARKETS DEVELOP,

NEW PREMIUM SEGMENTS IPS is

EMERGE Craft International

Premium IPS IPS Segment IPS DPS DPS DPS is DPS Domestic Premium Segment

Mainstream Mainstream BEER CONSUMPTION, CONSUMPTION, BEER

VARIETY AND CHOICE AND VARIETY Mainstream Mainstream Value + Price Value is the economy Provincial* Value segment Provincial* Provincial* Price Price

. Central America . Mexico . Brazil . USA TIME . Haiti . Andean . Chile . Canada . Caribbean . Argentina

7 *Provincial brands indicate a sub-regional local brand that is not nationally distributed Heineken® IS AT THE FOREFRONT OF REGIONAL IPS DEVELOPMENT Unique opportunities NORTH AMERICA CENTRAL across the Americas & CARIBBEAN & SOUTH AMERICA in both developed and developing markets CANADA

UNITED STATES BRAZIL

KEY 0-2% CHILE HKN® SOM* 2-5% ARGENTINA 5-10% PUERTO >10% RICO MEX *HKN® SOM = Heineken® brand share of total market Size of Country is determined by 2012 Heineken® Volume 8 Source: Canadean THE USA IS AN IMPORTANT MARKET FOR THE Heineken® BRAND GLOBALLY Improved Heineken® 2009 2012 volume trends over -9% DEPLETIONS 0% DEPLETIONS the past 3 years

AK AK

WA WA ME ND ME MT MT ND OR MN VT OR MN VT NH NH ID ID WI MA WI SD NY NY MA MI CT SD MI WY RI WY CT RI PA IA NJ IA PA NE NE NJ NV OH NV UT DE OH DE IN UT HI IL IL IN CA CO WV MD HI CA WV MD VA CO VA KS MO KY DC KS MO KY DC NC NC TN TN AZ OK AZ OK NM AR SC NM AR SC GA GA AL MS AL MS TX LA +1% or more TX LA -9% FL 0% FL -10% -1% -11% or less -2%

9 Source: HEINEKEN USA Depletions A SIGNIFICANT OPPORTUNITY FOR IPS IN BRAZIL Current low level of segmentation BRAZIL BEER CAGR in Brazil expected to result in rapid BY SEGMENTS development from Domestic Beer Market Volume (kHL) Premium Segment to International 3,047 Premium Segment INTERNATIONAL PREMIUM +76.8% 5,300 DOMESTIC PREMIUM +1.3% 100 4,892

66,572 79,278 MAINSTREAM +3.0%

32,350 44,399 ECONOMY +5.4% (VALUE + PRICE)

2007 2013F TOTAL MARKET CAGR +4.1%

10 Source: AC Nielsen and HEINEKEN Heineken® POISED FOR GROWTH IN BRAZIL Positioning Heineken® BRAZIL PREMIUM Heineken®: IMPROVING brand to stimulate SEGMENT GROWTH BRAND HEALTH INDICATORS and lead IPS growth Market Volume (k HL) (%)

DPS IPS Heineken® Share of Premium 44 14.000 12.8% 14,0% 33 19 22 24 25 12.000 11.1% 12,0% Spontaneous Regular 10.000 10,0% Awareness Consumption 8.000 6.9% 8,0% 2011 2012 2013 Aug 6.000 5.2% 6,0%

4.000 4,0% 21 22 24 2.000 2,0% 17 18 16 0 0,0% 2009 2010 2011 2012 2013F 2014F 2015F 2016F Brand you can trust Innovative

11 Source: AC Nielsen and Millward Brown VIDEO

ROCK IN RIO

12 LEVERAGING GLOBAL CAPABILITIES TO GROW Heineken® HEINEKEN can access CHILE ARGENTINA local system strengths Heineken® SHARE Heineken® SHARE to further accelerate development of the OF TOTAL BEER MARKET OF TOTAL BEER MARKET Heineken® brand in joint Price ventures such as CCU Index Price Index 8% 150 4,0% Price Index 170 6% Price 3,5% Index 110 3,0% 4% 120 2,5% 2% 2,0%

0% 1,5%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

13 A CLEAR ROLE FOR HEINEKEN’S OTHER GLOBAL BRANDS IN THE AMERICAS DESPERADOS SOL STRONGBOW . FRENCH WEST INDIES . BRAZIL . USA . Up to 12% share of . Transitioning from . Re-acquired import market in Martinique, local Sol to the rights from Vermont Guadeloupe and premium Global Hard Cider in 2012 French Guiana brand . CANADA . BRAZIL . CHILE . Transitioned to . Launched in Sao Paulo . Northern launch Molson distribution & Curitiba in 2012, in June 2013 in June 2012 expanding to Rio in . MEXICO . MEXICO 2013 . Completion of . Launched in . HAITI re-launch in 2011 January 2013 . Launched in October 2013

14 PROVEN CAPABILITIES IN GLOBAL BRAND MANAGEMENT USA STRONGBOW CARIBBEAN DESPERADOS VOLUME GROWTH VOLUME GROWTH (% VS YR AGO) (% VS YR AGO) 94% 97% 881% 857% 83% 688% 658% 584% 56% 417% 440% 37% 321% 28% 28% 15% 16% 111%

8% 33%

2011 2012

Jul-13

Apr-13

Jun-13

Jan-13

Apr-13

Jun-13

Jan-13

Feb-13

Aug-13

Mar-13

Aug-13

Mar-13

May-13 May-13

15 Source: Nielsen FDCM+ 08/10/13 AGENDA

HEINEKEN Americas: . BRANDS AT THE CORE Winning with Brands ® . Heineken AND GLOBAL BRANDS DRIVE PREMIUM

. REGIONAL POWER BRANDS FOR NORTH AMERICA

. BRAND BUILDING CAPABILITIES

16 POSITIVE DEMOGRAPHIC TRENDS TO UNDERPIN GROWTH IN MEXICAN BEER Rising levels of economic HISPANIC MEXICO-USA TRADE integration between POPULATION GROWTH APPROACHING the USA and Mexico, particularly in border LEADS MULTICULTURAL EU-USA LEVELS regions 80% Ratio of Mexico-US Trade 232 75% vs. EU-USA Trade 213 201 203 205 207 207 207 206 70% WHITE NON-H 179 205 203 65% 163 196 147 60% 133 133 119 120 55% 107 108 97 50% ALL MULTICULTURAL 86 76 66 45% 58 50 49 50 52 HISPANICS 44 45 47 40% 38 40 42 BLACKS NON-H 35% ASIANS NON-H 28 31 33 21 23 25 30% 14 16 18 2010 2015 2020 2025 2030 2035 2040 2045 2050 1997 2000 2003 2006 2009 2012

TOTAL US-MEX TRADE $157B $247B $235B $332B $306B $494B

Source 1: US Census Bureau, projections based on 2000 data 17 Source 2: US Trade Census (http://www.census.gov/foreign-trade/balance/c2010.html) TECATE & DOS EQUIS ARE REGIONAL POWER BRANDS Tecate positioned MEXICO USA consistently across the PRICE DIAMOND PRICE DIAMOND US and Mexico; Dos Equis has achieved super premium status in the US PREMIUM PREMIUM

ABOVE ABOVE MAINSTREAM MAINSTREAM

MAINSTREAM MAINSTREAM

BELOW BELOW MAINSTREAM MAINSTREAM

VALUE VALUE

18 Source: Neilsen GROWTH OF DOS EQUIS & TECATE HAS ACCELERATED DOS EQUIS TECATE VOLUME GROWTH VOLUME GROWTH 3.500 14.000 Mexico CAGR (2010-12) Mexico CAGR (2010-12) USA Total: 12.2% USA Total: 11.5% 3.000 12.000

2.500 10.000

2.000 8.000

1.500 6.000

)

kHL 1.000 4.000

500 2.000 Volume ( Volume 0

0 (kHL) Volume

19 Source: Canadean VIDEO

DOS EQUIS

20 DEPLOYING BRANDS WITH POWER AND CONSISTENCY IN BORDER CITIES CRITICAL BORDER CITIES ACCOUNT FOR: Represents critical . 17% OF TOTAL US border cities TECATE VOLUME . 20% OF TOTAL MEXICAN TECATE VOLUME

21 AGENDA

HEINEKEN Americas: . BRANDS AT THE CORE Winning with Brands ® . Heineken AND GLOBAL BRANDS DRIVE PREMIUM

. REGIONAL POWER BRANDS FOR NORTH AMERICA

. BRAND BUILDING CAPABILITIES

22 INCREASING THE RATE OF INNOVATION INNOVATION RATE PROGRESS BY TOP CONTRIBUTORS Innovation Rate 5.0% 4.7%

3.6% 3.3% 2.9% 2.9% 2.5% 2010 2013F 0.9% 0.8% 0.8% 0.3% 0.0% 0.0% 0.0% Mexico Brazil USA Suriname French West Puerto Rico Americas Indies

From 1 January 2013, the innovation rate is calculated as revenues generated from innovations (introduced in the past 40 quarters for a new category, 23 20 quarters for a new brand and 12 quarters for all other innovation) divided by total revenue SUCCESS OF “BEERS OF MEXICO” INNOVATION IN THE USA 2005 2012 2013 2013

24pk 12pk 12pk 24pk club celebration club pack bottles can cooler pack promo pack (with INDIO)

177 VOLUME 154 In KHL

58 43 52 30 42 10

2006 2007 2008 2009 2010 2011 2012 2013F

24 BRAZIL: SALES AND ROUTE-TO-MARKET EXCELLENCE Consistency INFORMATION, RIGHT PEOPLE, and attention TARGETS, CONSTANT RIGHT PLACE, to the basics TRACKING RIGHT THINGS at the core . Establish a common language . Winning with key Global and of regional around sales KPI’s and Regional Customers is a priority principles . Focus on sales initiatives that sales execution . Data driven – measure drive the “Golden Triangle” execution KPI’s and drive Information . Cascade and align goals continuous improvement Targets Constant throughout sales organizations . Utilize sales force automation Tracking to provide our teams with data and tools to maximize execution at POP Right People in the FEW, BIGGER, Right Place Doing Right Things BETTER & FASTER . Excellent Outlet Execution (EOE) as KEEP IT SIMPLE main pillar of Global Sales agenda . Leverage and scale . Drive a targeted sales capability global/regional best practices Keep it Few, Bigger, agenda . Prioritize trade activities Simple Better & Faster . Ensure flawless execution against that drive sell out priority brand programs at outlet level

25 BRAZIL ROUTE-TO-MARKET

KEY ELEMENTS OFF-PREMISE INCREMENTAL ROUTES 1 Identify high priority outlets for beer with low or no CSD coverage 2 Develop new roles with bottlers: . Beer-centric reps . Beer ambassadors . Beer coaches 3 Create KPIs for beer roles which are linked to variable compensation 4 First wave of markets show increased CSD sales as well as beer

26 BRAZIL: EXCELLENCE IN OUTLET EXECUTION Audit process PRESENCE PRICE PROMOTION PLACEMENT drives Must have SKUs Above, On Par or below Mandatory materials Fridges

attainment of recommended price Compliant Non-compliant in-store ‘picture 53% Below On Par Above 5% of success’ 15% 21%

85% 79%

5% 16% 2% 0% 0% 84%

Bar Premium Bar Boteco Restaurante Bar Premium Bar Boteco Restaurante Bar Premium Bar Boteco Restaurante

Kaiser Kaiser Kaiser

Bavaria Bavaria Bavaria

Heineken Heineken Heineken 146 704 644 Bar Premium Bar Boteco Restaurante

27 WINNING WHERE WE CHOOSE TO COMPETE COUNTRY BRAND VOLUME SHARE OF VOLUME SHARE DEVELOPMENT OCT YTD (BPS) VS LY

Mexico Total Portfolio Total Beer +20

USA Total Portfolio Total Beer +7

Brazil Heineken® Premium +90

Chile Heineken® Total Beer +20

Argentina Heineken® Total Beer +10

Canada Heineken® Total Beer +8

28 Source: Nielsen & Beer Institute SUMMARY

Key Takeaways . SUPERIOR BRAND BUILDING A CORNERSTONE OF HEINEKEN’S GLOBAL AND AMERICAS STRATEGY

. TREND TO PREMIUM CONTINUES IN NORTH AMERICA WITH CONSIDERABLE ROOM TO GROW IN LATIN AMERICA

. POWER PORTFOLIO SPEARHEADED BY HEINEKEN® COMPLEMENTED BY GLOBAL AND REGIONAL BRANDS IN NORTH AMERICA

. CAPABILITY DEVELOPMENT FOCUSES ON STEP CHANGING OUR RATE OF INNOVATION AND EXCELLENCE IN OUTLET EXECUTION

. COMBINATION OF THESE BUILDING BLOCKS DRIVING SHARE GAINS IN KEY MARKETS AND SEGMENTS