HEINEKEN Holding NV: Heineken Holding N.V. reports 2018 full year results

Amsterdam, 13 February 2019 - Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) announces:

• The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2018 amounts to €961 million
• Net revenue (beia) organic growth +6.1% with +2.0% per hectolitre
• Consolidated beer volume +4.2% with growth in all regions
• Heineken volume +7.7%, best performance in over a decade
• Operating profit (beia) organic growth +6.4%
• Operating profit margin (beia) 17.2% (-17 bps¹)
• Net profit (beia) €2,424 million, +12.5% organically
• Proposed 2018 total dividend +8.8% at €1.60 per share

FINANCIAL SUMMARY²

BEIA Measures	€ million		Organic growth (%)		IFRS Measures	€ million		Total growth (%)
Revenue (beia)	26,811		5.9		Revenue	26,811		3.7
Net Revenue (beia)	22,471		6.1		Net Revenue	22,471		4.0
Operating profit (beia)	3,868		6.4		Operating profit	3,137		-6.4
Operating profit (beia) margin	17.2	%			Net profit of Heineken Holding N.V.	961		-1.6
Net profit (beia)	2,424		12.5		Diluted EPS (in €)	3.34		-1.5
Diluted EPS (beia) (in €)	4.25		7.9
Free operating cash flow	2,246
Net debt / EBITDA (beia)3	2.3	x

¹ Margin expansion is calculated using the last year restated margin as baseline to exclude any benefit from the first application of IFRS 15. Please refer to page 13 for more details.
² Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary section for an explanation of non-GAAP measures and other terms used throughout this report.
³ Includes acquisitions and excludes disposals on a 12 month pro-forma basis.

Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

FULL YEAR 2019 OUTLOOK STATEMENT

For 2019, HEINEKEN expects the following:

• Continued volatility in economic conditions
• Superior top-line growth driven by volume, price and premiumisation
• Mid-single digit increase of input and logistic costs per hectolitre on an organic basis
• Continued cost management and productivity initiatives

Given this, operating profit (beia) is expected to grow by mid-single digit on an organic basis, excluding any major unforeseen macro economic and political developments.

Also is anticipated:

• An average interest rate (beia) broadly in line with 2018 (2018: 3.2%)
• An effective tax rate (beia) between 27% and 28% (2018: 26.4%)
• Capital expenditures related to property, plant and equipment around €2 billion (2018: €1.9 billion)

TOTAL DIVIDEND FOR 2018

The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full year net profit (beia). For 2018, payment of a total cash dividend of €1.60 per share (2017: €1.47) will be proposed to the Annual General Meeting of Shareholders of Heineken N.V. on 25 April 2019 ("2019 AGM"). This represents an increase of 8.8% versus 2017, translating into a 37.6% payout. If approved, a final dividend of €1.01 per share will be paid on 8 May 2019, as an interim dividend of €0.59 per share was paid on 9 August 2018. The payment will be subject to a 15% Dutch withholding tax.
If Heineken N.V. shareholders approve the proposed dividend, Heineken Holding N.V. will, according to its articles of association, pay an identical dividend per share. A final dividend of €1.01 per share of €1.60 nominal value will be payable as of 8 May 2019.
Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 29 April 2019.

BOARD OF DIRECTORS COMPOSITION

Mrs C.L. de Carvalho-Heineken will have completed her four-year appointment term upon conclusion of the 2019 AGM. Mrs de Carvalho is eligible for reappointment as executive member of the Board of Directors of Heineken Holding N.V. for a period of four years and a non-binding recommendation shall be submitted to the AGM in this respect.

Mr M.R. de Carvalho will have completed his four-year appointment term upon conclusion of the 2019 AGM. Mr de Carvalho is eligible for reappointment as executive member of the Board of Directors of Heineken Holding N.V. for a period of four years and a non-binding recommendation shall be submitted to the AGM in this respect.

Mrs C.M. Kwist will have completed her four-year appointment term upon conclusion of the 2019 AGM. Mrs Kwist is eligible for reappointment as non-executive member of the Board of Directors of Heineken Holding N.V. for a period of four years and a non-binding recommendation shall be submitted to the AGM in this respect.

ENQUIRIES

Media Heineken Holding N.V.
Kees Jongsma
tel. [phone]
E-mail: [e-mail]
Media Heineken N.V.	Investors
John-Paul Schuirink	José Federico Castillo Martinez
Director of Global Communication	Investor Relations Director
Michael Fuchs	Chris MacDonald / Aris Hernandez
Financial Communications Manager	Investor Relations Manager / Senior Analyst
E-mail: [e-mail] (mailto:[e-mail])	E-mail: [e-mail] (mailto:[e-mail])
Tel: [phone]	Tel: [phone]

INVESTOR CALENDAR HEINEKEN N.V.

(events also accessible for Heineken Holding N.V. shareholders)

Annual report publication	20 February 2019
Trading Update for Q1 2019	24 April 2019
Annual General Meeting of Shareholders	25 April 2019
Half Year 2019 Results	29 July 2019
Trading Update for Q3 2019	23 October 2019

CONFERENCE CALL DETAILS

HEINEKEN will host an analyst and investor conference call in relation to its 2018 FY results today at 10:00 CET/ 9:00 GMT. This call will also be accessible for Heineken Holding N.V. shareholders. The call will be audio cast live via the website:
www.theheinekencompany.com/investors/webcasts. An audio replay service will also be made available after the conference call at the above web address. Analysts and investors can dial-in using the following telephone numbers:

Netherlands	United Kingdom
Local line: [phone]	National free phone: [phone]
Toll free: (0)800 022 9132	Toll free: 0800 109 0700
United States of America
National free phone: [phone]
Toll free: [phone]
Participation password for all countries: Heineken FYR

Editorial information:
HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken brand, the Group has a portfolio of more than 300 international, regional, local and specialty beers and ciders. HEINEKEN is committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets.
HEINEKEN employs over 85,000 employees and operates breweries, malteries, cider plants and other production facilities in more than 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on the website: www.theHEINEKENcompany.com and follow us on Twitter via @HEINEKENCorp.
Heineken Holding N.V. engages in no activities other than its participating interest in Heineken N.V. and the management or supervision of and provision of services to that company.

Market Abuse Regulation:
This press release may contain inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

Disclaimer:
This press release contains forward-looking statements with regard to the financial position and results of HEINEKEN's activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN's ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest-rate and exchange-rate fluctuations, changes in tax rates, changes in law, change in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN's publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only of the date of this press release. HEINEKEN does not undertake any obligation to update these forward-looking statements contained in this press release. Market share estimates contained in this press release are based on outside sources, such as specialised research institutes, in combination with management estimates.

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Source: HEINEKEN Holding NV via Globenewswire