PRIMUS Chief Executive's Statement (continued) A stronger, more competitive global business Future sustainable growth Outlook 2010 8 1 Report of the Executive Board All our actions in 2009 were carried out with the intention of creating a stronger more competitive global business. As a result of our decisions and actions, and without jeopardising our financial stability, we have: Extended our position as the most international brewer Cemented our position as the world's second largest brewer by revenue (EUR 14.7 billion) and considerably strengthened our volume position (125.2 million hectolitres) Increased our exposure to, and benefit from, growth in developing markets. Following approval of all transactions, 40 per cent of our EBIT will be generated from developing markets and 60 per cent from established profitable beer markets Achieved positions in three of the four largest beer profit pools Strengthened our leading international portfolio with the addition of the Kingfisher brand; our portfolio will be further strengthened by the addition of the Dos Equis, Tecate and Sol brands (which we are already distributing in the United States) following the completion of the acquisition of FEMSA Cerveza. In 2010 and beyond, we will focus systematically on growing our brands and our value share in critical markets. We will do this everywhere, but we will particularly look to do so in Europe where we have significant market leadership despite the intense competition. It will not be easy given the economic, market, consumer and regulatory dynamics across many markets. We will though aim to leverage our leadership position and develop specific action plans to grow and strengthen our business and the category. We must also accelerate our investment in consumer-focused innovation, especially on the Heineken brand. It will be the responsibility of all in the business to ensure that our future growth is achieved sustainably, with integrity and responsibly. We will seek to maintain our industry-leading position in the SAM Dow Jones Sustainability Index and we will announce new targets and programmes. In our Sustainability Report, we set out our renewed sustainability agenda, which will re-enforce and embed our long-standing commitment to sustainable growth and responsible consumption. The business agenda we are setting ourselves for the future is hard. It would, though, be impossible to meet our considerable ambition without the dedication and hard work of our people. As always, I would like to thank them for their considerable contribution to our continued success and to thank all of our stakeholders for their support through the year. Jean-Frangois van Boxmeer Chairman of the Executive Board/CEO Amsterdam, 22 February 2010 This outlook for 2010 provides further information on general developments in the international beer industry, their effects on Heineken's position, its profit forecast and capital investments. The global economic environment will continue to lead to lower beer consumption and down-trading in a number of regions in 2010. Heineken is committed to utilising its global marketing excellence to build its key brands, including Heineken, across all markets and to maintaining, or where possible improving, its price positioning. Price increases will be at levels well below those of 2009. However, Heineken aims to continue passing on excise duty increases through higher sales prices. The Company will aim to improve both market and value share in its markets via increased brand investments. Heineken will aggressively pursue its TCM cost reduction programme in all business areas and will continue to focus on improving the profitability of its newly acquired companies. The likely fall in raw material costs per hectolitre due to a temporary decline in the price of brewing barley will be offset by higher energy costs, rising advertising rates and increased marketing costs. Heineken reiterates its target of reducing its Net debt/EBITDA (beia) ratio to below 2.5 times. Heineken is confident that it will achieve its target of a cash conversion rate in excess of 100 per cent in the remaining two years of the Hunt for Cash 2 programme. Capital expenditures related to property, plants and equipment will be broadly in line with 2009 at EUR700 million, and will be financed from cash flow. Heineken expects a further organic decline in the number of employees. Excluding FEMSA Cerveza, Heineken expects an average interest rate of approximately 6 per cent and an effective tax rate in the range of 25-27 per cent. I Annual Report 2009 - Heineken N.V. Annual Report 2009 - Heineken N.V. 9

Jaarverslagen en Personeelsbladen Heineken

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