Twelve months ago, we assured our stakeholders that Heineken would emerge a stronger business from the global financial crisis. Whilst the downturn is not yet over, in 2009 we delivered an outstanding financial performance, transformed our platform for future growth and built a stronger, more competitive global business. We were able to do so by harnessing our core strengths: the commitment and excellence of our people, the strength of our brands and our ambition to build profitable future growth. An outstanding financial performance Transforming our platforms for future growth Transforming our future in the Americas Transforming our future in India Strengthening our partnership in Asia 7 At the start of 2009 we aligned our business behind three clear priorities: maximising free operating cash flow, improving the profitability of our newly acquired businesses and reinforcing our market positions. During 2009, every single manager in Heineken had, and in 2010 will continue to have, a cash flow target as their priority. This rigorous, Company-wide focus drove a 216.5 per cent increase in our free operating cash flow to EUR 1,741 million, in addition, we met our commitment to achieve a cash conversion rate greater than 100 per cent, achieving 147.7 per cent. In critical markets such as the UK and Russia, we developed specific turnaround plans to increase profitability. In both, robust pricing, cost reduction, stock keeping unit and portfolio rationalisation played a significant role in the success. These improved performances combined with continued growth from all regions contributed to a 387.1 per cent growth in net profit and a growth in organic net profit of 18.2 per cent. Cost reduction across all aspects of the business has also been a major driver of our profitability. The Total Cost Management programme (TCM) identifies projects that allow us to significantly reduce our cost base. It follows the success of our 2005-2008 Fit2Fight programme and in its first year TCM bore fruit, with EUR 155 million of costs taken out of the business. But it is not only the increases in our bottom line that are notable. Our value strategy continues to be successful, despite huge recessionary pressures. This clearly demonstrates the benefit of long-term brand investment in order to build equity, relevance and resilience. In 2009, the Heineken brand again outperformed our portfolio. To us this confirms that the trend towards premium beer continues and that it drives sales and mix improvements. It was the confidence in our people and the success of our strategy that convinced us in the second half of the year to take some bold steps that will transform the future of our business. In January 2010, we announced the acquisition of FEMSA Cerveza (FEMSA) in Mexico and Brazil. Completion of the transaction is expected in the second quarter of 2010 and is subject to the approval of the relevant regulatory authorities and the approval of the shareholders meetings of Heineken N.V., Heineken Holding N.V. and FEMSA. This is one of the most exciting and significant transactions in Heineken's history. It gives us a major new platform to grow value in three of the world's four biggest beer profit pools that together account for 35 per cent of the total global profit for the beer industry. The acquisition will bring new people, exceptional brands and different ideas into our business and will give FEMSA a 20 per cent economic holding in the total Heineken Group. FEMSA will also nominate two representatives for appointment to our Supervisory Board. We welcome FEMSA as a significant shareholder and we look forward to their valuable contribution to Heineken's future. In December, we announced a strong partnership in India, one of the world's fastest growing and most exciting beer markets. Our new shareholders' agreement with Dr. Vijay Mallya gives us a strong role in the governance of the market leader, United Breweries Limited (UBL), in which both Dr. Mallya and Heineken own 37.5 per cent. This will enable us to unlock the market's considerable potential and to shape the premium segment. We are now uniquely positioned to benefit from the highly favourable demographics and strong economic fundamentals in the Indian market. At the same time as our Indian transaction, we announced that we had strengthened and enlarged Asia Pacific Breweries (APB), our long-standing and successful joint venture partnership with Fraser Neave. At the beginning of 2010, we transferred a significant part of our controlling interest in PT Multi Bintang Indonesia and our controlling interest in Grande Brasserie de Nouvelle-Calédonie S.A. to APB in order to create a more profitable business and a stronger platform for growth in South East Asia and the Pacific Islands. Annual Report 2009 - Heineken N.V.

Jaarverslagen en Personeelsbladen Heineken

Jaarverslagen | 2009 | | pagina 13