9
HEINEKEN N.V. ANNUAL REPORT 2008
2009: a tough year ahead
Looking ahead, we must be realistic. Our core business
is robust but not immune from the near-term challenges
posed by the global economic downturn. The recession in
many parts of the world will continue to negatively impact
consumer confidence and spending. In the light of this
new reality, we have identified clear priorities for
our business:
Cash generation
Our entire leadership of more than 500 senior managers
has a clear target linked to cash generation and cost
reduction in order to reduce our debt levels. In addition,
we have introduced a Company-wide programme aimed
to restore cash conversion rates to more than 100 per cent
by 2011.
Making new markets deliver
We will ensure that our 11 new markets deliver value to the
Group in as short a time as possible. We have a proven ability
to make new acquisitions value-accretive, particularly also in
mature markets.
We now have leading positions in 59 of our 66 markets, none
of which accounts for more than 10 per cent of EBIT (beia).
The strategic potential of all our new markets remains
strong. However, the economic downturn means that some
will take longer to achieve the ambitious goals we have set
for them. The performance in the UK, in particular, was
heavily impacted by the combination of recession, on-trade
downturn, unprecedented excise duty rises, smoking bans
and an adverse exchange rate. We are rapidly realising the
synergies that we announced in 2008, as well as reducing
costs significantly, re-structuring parts of the business and
improving pricing in order to increase the efficiency and
profitability of the UK business.
Reinforce market positions
At the same time, we will continue to focus on increasing our
value share in all the markets where we operate by
increasing the efficiency and effectiveness of our marketing
investments.
Despite the challenges we face, we will remain true to our
long-held values: Passion for Quality, Respect for People,
Enjoyment of Life. We will continue to create a stronger,
more sustainable company and will not compromise on our
Corporate Responsibility agenda.
When taken together, I believe that the combination of
our actions, our commitments and our people will ensure
that Heineken will emerge as an even stronger and more
competitive company.
Jean-Franqois van Boxmeer
Chairman of the Executive Board/CEO
Amsterdam, 17 February 2009
