HEINEKEN Holding NV: Heineken Holding N.V. reports 2019 half year results

Amsterdam, 29 July 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 the first half year of 2019 amounts to €471 million
• Net revenue (beia) organic growth +5.6%; net revenue (beia) per hectolitre +3.0%
• Consolidated beer volume +3.1%
• Heineken volume +6.9%
• Operating profit (beia) organic growth +0.3%, full year expectation unchanged
• Operating profit (beia) margin 15.6% (-47 bps)¹
• Net profit (beia) €1,054 million, -1.2% organically

FINANCIAL SUMMARY²

BEIA Measures	€ million		Organic growth3			IFRS Measures	€ million		Total growth
Revenue (beia)	13,597		5.3	%		Revenue	13,597		5.9	%
Net revenue (beia)	11,446		5.6	%		Net revenue	11,443		6.0	%
Operating profit (beia)	1,781		0.3	%		Operating profit	1,648		13.1	%
Operating profit (beia) margin1	15.6	%
Net profit (beia)	1,054		-1.2	%		Net profit of Heineken Holding N.V.	471		-1.7	%
Diluted EPS (beia) (in €)	1.84		-0.8	%		Diluted EPS (in €)	1.64		-1.2	%
Free operating cash flow	578
Net debt / EBITDA (beia)4	2.9x

¹ Last year restated for IAS 37. Please refer to page 16 for more details.
² Consolidated figures are used throughout this report, unless otherwise stated; please refer to the Glossary for an explanation of non-GAAP measures and other terms used throughout this report.
³ Organic growth shown, except for Diluted EPS (beia) which is total growth. The impact from IFRS 16 is reflected on all metrics, but is excluded from the organic growth calculation.
⁴ Includes acquisitions, excludes disposals and includes first time impact of IFRS 16 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
• Continued cost management initiatives and productivity improvements, together with investment in e-commerce and technology upgrades.

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

HEINEKEN also anticipates:

• An average interest rate (beia) slightly below last year (2018: 3.2%)
• An effective tax rate (beia) around 28% (2018 restated: 26.3%)
• Capital expenditure related to property, plant and equipment slightly above €2 billion (2018: €1.9 billion).

INTERIM DIVIDEND

According to the Articles of Association of Heineken Holding N.V. both
Heineken Holding N.V. and Heineken N.V. pay an identical dividend per share.
In accordance with its dividend policy, HEINEKEN fixes the interim dividend at 40% of the total dividend of the previous year. As a result, an interim dividend of €0.64 per share (2018: €0.59) will be paid on 8 August 2019. Both the Heineken Holding N.V. shares and the Heineken N.V. shares will trade ex-dividend on 31 July 2019.

ENQUIRIES

Media Heineken Holding N.V.
Kees Jongsma
Tel: [phone]
E-mail: [e-mail]
Media Heineken N.V.	Investors
John-Paul Schuirink	Federico Castillo
Director of Global Communication	Director of Investor Relations
Michael Fuchs	Janine Ackermann / Aris Hernández
Financial Communication Manager	Investor Relations Manager / Analyst
E-mail: [e-mail]	E-mail: [e-mail]
Tel: [phone]	Tel: [phone]

INVESTOR CALENDAR HEINEKEN N.V.

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

Trading Update for Q3 2019	23 October 2019
Full Year 2019 Results	12 February 2020

Conference call details

Heineken N.V. will host an analyst and investor conference call in relation to its 2019 HY results today at 10:00 CET/ 9:00 BST. 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 Local Amsterdam

[phone]

New York

[phone]

Standard International access

[phone]

Password: Heineken

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 HEINEKEN 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

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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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