Chief Executive's Statement
Celebrating 150 years
Report of the Executive Board
Contents Overview
Report of the
Executive Board
Reportofthe Financial
Supervisory Board statements Other information
Left René Hooft Graafland Right Jean-Franqois van Boxmeer
Member of the Executive Board/CFO Chairman of the Executive Board/CEO
It has been a challenging year, but the fundamentals of our
business are strong and we remain committed to delivering
long-term value for our stakeholders.
Financial performance
The last 12 months have been challenging for our business. Our
financial results were below expectations having been impacted
by tough market conditions in Europe and weaker trading than
we had expected in some of our important developing markets.
Group revenue grew 1.3 per cent, while group operating profit
(beia) increased 2.8 per cent.
Revenue management
Throughout the year, we have implemented a number of initiatives
to improve our top-line performance. Through a continued focus
on innovation, stronger pricing, better portfolio planning and
execution, we have improved our revenue per hectolitre by
2.7 per cent. Additionally, we have maintained our marketing
support behind growth brands.
Cost reduction
The business has realised cost savings of €1A billion since 2006.
0urTCM2 programme delivered €300m in 2013. We are well
on our way to achieving our three-year target of €625m during
2014 We have achieved these results by reducing support
function costs and eliminating wasteful practices across our
operations. This is an ongoing focus. We have also standardised
and simplified the way operating companies benefit from the
services provided by HEINEKEN Global Shared Services and
HEINEKEN Global Procurement. These actions are helping to
make us more competitive.
Celebrating 150 years
15 February 2014 marks the 150th anniversary of HEINEKEN. In
1864, Gerard Adriaan Heineken founded the Company with a clear
vision: to brew the best beer of his time and to let the world know.
He was uncompromising on guality, he was commercially astute
and he was a very progressive employer. He never lost sight of the
simple rule that beer and enjoyment should go hand in hand. It is
an approach that has served the Company well. Fast forward 150
years and those same values guide us today. HEINEKEN is now the
world's most international brewer. The Heineken® brand leads the
way in the international premium segment. The entrepreneurial
spirit and drive of our more than 85,000 employees continues to
take us forward. And 150 years on, the Heineken family remains
a constant support for the Company.
This is what makes HEINEKEN unigue. Each one has helped the
Company navigate challenging times and they are what will
drive its continued success in the future.
Winning through innovation
The other enduring feature of our business has been innovation.
The beer that Gerard Adriaan set out to brew 150 years ago was
a new type of beer - a Pilsener - that he believed would give
something more to consumers. Anticipating and meeting
consumer needs remains at the core of our success today.
In 2013, €1.1 billion of our revenue came from innovations.
We increased our innovation rate to 5.9 per cent, up from
5.3 per cent in 2012.
Heineken N.V. Annual Report 2013
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