07 This is a great achievement and I would like to thank our employees, and our trade and business partners for playing their part in this performance. All regions contributed to growth Our results also reconfirmed that we continue to benefit from our ability to extract value from our mature markets. Nowhere is this more evident than in Western Europe where, despite the challenging market conditions, we significantly outperformed the sector with EBIT (beia) growth of 5.1 per cent. Performance from our Central and Eastern European (CEE), African and Asian markets was outstanding with each beginning to deliver on their potential for both profit and volume growth. CEE is now our second biggest profit contributor. Consolidated volume grew by 9 per cent and EBIT (beia) rose by 22 per cent. With an 18 per cent volume growth and 41 per cent EBIT (beia) increase, Africa and Middle East was the fastest growing region in 2007. The Americas region was again consistent in growing both its consolidated volumes and EBIT (Beia) and our Asia Pacific region continued its positive growth in volumes, revenue and profitability. In the first half of 2007 we also made two very positive steps, which will help us to maintain strong regional and market performance in the future. Firstly, in May, we renewed the sales and marketing agreement with our partners FEMSA in the USA for a further 10 years. This will allow our American operation to mature into a true portfolio business, firmly positioned in the growth segment of the US beer market. Secondly, we regained control of the Amstel brand in South Africa and decided to construct a brewery there. This will mean a stronger, more profitable business in partnership with Diageo and Namibian Breweries. Scottish Newcastle: a strategic acquisition The second half of 2007 was dominated by our planned acquisition of Scottish and Newcastle pic., in combination with Carlsberg. This strategic acquisition, which is still subject to approval of the relevant authorities, will reinforce our position in Europe, and will drive a sizeable, reliable cash flow and profit stream to support future expansion and increased shareholder returns. In particular, we will have an important new distribution platform in the UK and other markets to drive growth of the Fleineken brand. Our acquisition strategy is focused on building leadership positions in markets where we operate. Scottish Newcastle UK is the leading brewer and cider producer. Hartwall in Finland, Centraleer in Portugal and Alken-Maes in Belgium command respectable number two positions in their respective countries. We will also reinforce our business platforms in both Ireland and the USA. Last but not least the significant stake in India's leading brewer UBL will open tremendous opportunities for the future. Alongside this, we will acquire some very strong, complementary brands such as Newcastle Brown Ale, Foster's and Strongbow cider, all of which have international appeal and potential. Once the transaction is complete, I look forward to welcoming all our new employees, business partners and customers to Heineken. These are exciting times for all of us and we will continue to build on the superb heritage and sterling past performance of Scottish Newcastle. Priorities for action We remained focused on our four Priorities for Action: Accelerate top-line growth Accelerate efficiencies Accelerate speed of implementation Focus on selective opportunities. Accelerate top-line growth Looking back at the past few years, much has been achieved in terms of top-line growth. For the year 2005, we announced revenue growth of 7.3 per cent, of which 2.2 per cent was organic. For 2006, revenue growth had risen to 9.6 per cent, of which 7.1 per cent was organic. In 2007, we once again increased our positive annual revenue growth by 6.2 per cent, of which 7.3 per cent is organic. We have also significantly grown the Heineken brand - our key strategic asset - which again showed excellent growth of 10 per cent in 2007. Heineken N.V. Executive Board Left: Jean-Frangois van Boxmeer Chairman of the Executive Board/CEO Right: René Hooft Graafland Member of the Executive Board/CFO Heineken N.V. Annual Report 2007

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2007 | | pagina 12