Heineken N.V. Annual Report 2020 Heineken N.V
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Heineken N.V. Annual Report 2020 Heineken N.V. 02 Annual Report 2020 In this year’s report Brewing a Better World – our 2020 commitments and 03–48 49–65 66–124 125–159 160 –178 what we have achieved Report of the Report of the Financial Sustainability Other Executive Board Supervisory Board Statements Review Information Chief Executive’s Q&A 03 To the Shareholders 49 Contents 66 Our sustainability focus areas 125 Appropriation of Results 160 Performance highlights 05 Remuneration Report 55 Consolidated Income Statement 67 Our 2020 commitments: Independent Auditor’s Report 161 what we have achieved 126 Key figures 06 Consolidated Statement of Assurance Report of the Comprehensive Income 67 Every Drop – protecting Independent Auditor Advocating responsible Promoting health Our impact from Barley to Bar 07 consumption and safety water resources 127 (of non-financial indicators) 168 Consolidated Statement People Executive Team 08 of Financial Position 68 Drop the C – reducing Shareholder Information 170 CO2 emissions 131 Brewing Consolidated Statement Bondholder Information Every Drop 173 P Our business priorities 09 Sourcing r – protecting sustainably o World water of Cash Flows 69 Sourcing sustainably t 137 s p e resources n Historical Summary 174 e a ri l Deliver top line growth 10 ty P Consolidated Statement Advocating responsible Glossary 176 Drive end2end performance 16 of Changes in Equity 70 consumption 140 Growing with Drop the C Disclaimer and communities – reducing CO2 Brew a Better World 17 Notes to the Consolidated Promoting health and safety 144 emissions Reference Information 178 Financial Statements 71 Engage and develop our people 20 Growing with communities 146 Heineken N.V. Connect in a digital world 22 Values and behaviours 148 Income Statement 118 Inclusion and diversity 149 Heineken N.V. Regional Review 24 Balance Sheet 119 Respecting Human Rights 150 Africa, Middle East and Heineken N.V. Reporting basis and governance Eastern Europe 25 Shareholders’ equity 120 of non-financial indicators 151 Americas 26 Notes to the Heineken N.V. Asia Pacific 27 Financial Statements 121 Europe 28 Risk Management 29 Find more information online at Financial Review 35 theHEINEKENcompany.com Corporate Governance Statement 40 – Download the Annual Report – Discover HEINEKEN’s history – Explore our countries and brands – Read more about our sustainability Follow us on Twitter: @HEINEKENCorp Follow us on LinkedIn: linkedin.com/company/HEINEKEN/ Heineken N.V. 03 Annual Report 2020 Chief Executive’s Q&A Q Q How would you describe your first Can you provide a summary months as CEO of HEINEKEN? of the 2020 financial year? It’s been an honour to follow in the footsteps of In a year of unprecedented disruption and transition, Jean-François van Boxmeer and lead this very special our teams rose to the occasion and quickly adapted 156-year-old company. My new role brought me while not losing sight of the need to continue and my family back to the Netherlands after fifteen investing for the future. The impact of the pandemic years of living abroad in Africa, the U.S., Mexico and on our business was amplified by our on-trade and Singapore. It feels good to be back home, especially geographic exposure. We took diligent cost mitigation in times of crisis. actions balanced with continued investment behind our growth platforms. We gained share in most of our Since my first day as CEO in June, my focus has been key operations, a testimony to our ability to adapt and to “navigate the crisis while building the future”. stay close to our customers and consumers in these My priority has been the health and wellbeing of turbulent times. The Heineken® brand was a bright star, our people. Throughout the COVID-19 pandemic, with a continued outstanding performance in Brazil. there’s been nothing more important than taking I applaud the dedication and resilience of our employees care of our people, taking care of our customers, and their commitment to support each other, our taking care of our suppliers, and taking care of our customers and communities over the past year. communities. There’s also been a lot of day-to-day crisis management, much of which is being led by Q our outstanding country managers in 80 operating companies around the world. What was the effect of COVID-19 While the pandemic continues to create turbulence, on HEINEKEN and how did the we’re very much focused on ensuring we emerge business respond? stronger from the crisis. Over the past months, we’ve The effects of COVID-19 have been felt deeply welcomed seven new Executive Team members and across HEINEKEN. Our employees are hurting, our together with all our employees around the world, customers are hurting, and the world is hurting. Navigating the crisis we’ve come together in a uniquely HEINEKEN We made sure that our response was swift and that way—bottom-up, inclusive, welcoming all voices— we always kept people at the centre. to co-create a new strategy that will ensure we Our first priority was, and remains, our employees. successfully write our next growth chapter. We call while building the future It was critical that they could do their jobs safely, this programme EverGreen and it will guide us for establish the ability to work from home where possible, many years to come. social distance and receive adequate personal protective “Throughout the COVID-19 pandemic, there’s been equipment. Our global task force meets regularly to nothing more important than taking care of our people, monitor and address employee health and wellbeing. taking care of our customers, taking care of our suppliers, Second, we stepped up to offer financial support to our customers and suppliers who were impacted by and taking care of our communities.” the pandemic. Our Back to Bars initiative raised over Dolf van den Brink €10 million to support 50,000 outlets across 21 countries Chairman Executive Board and CEO and we waived close to €50 million in rental payments. Heineken N.V. 04 Annual Report 2020 Chief Executive’s Q&A Our third priority in responding to COVID-19 was cost. We took quick and decisive measures to Q “To me, success Q safeguard the continuity of our business. As the impact of COVID-19 is still being felt, we have kept Why is now the right time to embark means mobilising the What’s the outlook for HEINEKEN up our efforts around cost mitigation and cash on a more ambitious sustainability and organisation so that with EverGreen? preservation to protect our future. responsibility agenda? While navigating the crisis, we are building our We completed the first 10 years of our Brewing a we can do amazing future. EverGreen leverages both our strengths Q Better World programme in 2020. We’ve made some things together.” and new opportunities to chart our next chapter of great strides over the last decade and accomplished growth. We aspire to deliver superior and profitable Under your leadership, how will a lot but we know we need to do more. As our growth in a fast changing world. Firmly putting HEINEKEN build on its success? responsibility to contribute positively to society customers and consumers at the core we aim to Q continually enhance and expand our portfolio HEINEKEN is a 156-year-old company. Leading this and the environment continues to rise, we’re and footprint. We are stepping up our focus on company means standing on the shoulders of the excited to step-up our ambitions. To ensure our What does success look like to you? organisation is unwavering in serving the needs continuous productivity improvements and incredible leaders that came before me. While I am To me, success means mobilising the organisation of all stakeholders, we’ve added sustainability and raising our environmental and social sustainability humbled by this remarkable legacy, I know that we so that we can do amazing things together. responsibility to our new Green Diamond model, ambitions. All of this gives us confidence that we can’t rest on the laurels of our past success. It’s not It means embracing our entrepreneurial spirit which is now the guiding principle to measure will continue to deliver long-term value for all the biggest or strongest that survive, but the most while being disciplined around pursuing company performance. our stakeholders. adaptable. The reason the organisation has thrived productivity and cost-consciousness. It means going for such a long time is because it has continuously further, faster, by investing in digital capabilities Despite a year of profound impact and transition, renewed and revitalised itself. We must increase our Q to meet the needs of our consumers and customers. some things remain simple and self-evident. ability to respond and adapt while always staying It means putting sustainability and responsibility We are a beer company. More than anything, true to the values of our company to create a cycle How does the culture need to evolve at the heart of our business to ensure we make we cherish our role in building human connections of permanent renewal. We are at our core a growth to meet your EverGreen ambitions? a positive impact on the environment and society. and bringing people around the world together company and we’ll always remain hungry to seek out There is a lot about our culture to be proud of and It means empowering our people to go beyond to savour the enjoyment of life. Stay safe and new opportunities for growth. a lot of good to nurture. We have a culture of pride what they thought possible and to achieve more I hope we’re all having beers together at a bar and passion.