Heineken Holding N.V. reports 2017 full year results

Amsterdam, 12 February 2018 - Heineken Holding N.V. (EURONEXT: HEIO; OTCQX: HKHHY) today announces:

• The net result of Heineken Holding N.V.'s participating interest in Heineken N.V. for 2017 amounts to € 977 million;
• Organic revenue (beia) +5.0% with revenue (beia) per hectolitre 2.1%
• Consolidated beer volume +3.0% with growth in all regions
• Heineken® volume +4.5%
• Operating profit (beia) organic growth of +9.3%; operating margin (beia) expansion of 40 bps excluding the Brasil Kirin, Punch and Lagunitas acquisitions
• Net profit (beia) of €2,247 million, +9.3% organically
• Proposed 2017 total dividend +9.7% at €1.47 per ordinary share

FINANCIAL SUMMARY

¹  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.
²  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 2018 OUTLOOK STATEMENT

• Economic conditions are expected to remain volatile and HEINEKEN has assumed a negative impact from currency comparable to 2017.
• HEINEKEN expects further organic revenue and profit growth.
• Excluding major unforeseen macro economic and political developments HEINEKEN expects to deliver an operating profit margin expansion of around 25 bps. This includes a residual dilutive effect from the acquisition of Brasil Kirin and excludes the one-time benefit of IFRS 15 implementation.
• HEINEKEN expects an average interest rate (beia) broadly in line with 2017 (2017: 3.0%), and an effective tax rate (beia) of around 28% (2017: 27.6%).
• Capital expenditure related to property, plant and equipment should be slightly above €2 billion (2017: €1.7 billion).

TOTAL DIVIDEND FOR 2017

The Heineken N.V. dividend policy is to pay out a ratio of 30% to 40% of full-year net profit (beia). For 2017, payment of a total cash dividend of €1.47 per share (2016: €1.34) will be proposed to the Annual General Meeting of Shareholders (AGM) of Heineken N.V. on 19 April 2018. This represents an increase of 9.7% versus 2016, translating into a 37.3% payout. If approved, a final dividend of €0.93 per share will be paid on 2 May 2018, as an interim dividend of €0.54 per share was paid on 10 August 2017. 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 ordinary share. A final dividend of €0.93 per ordinary share of €1.60 nominal value will be payable on 2 May 2018.
The ex-final dividend date for both the Heineken Holding N.V. and Heineken N.V. shares will be 23 April 2018.

BOARD OF DIRECTORS COMPOSITION

Mr. J.A. Fernández Carbajal will have completed his four-year appointment term per the end of the AGM on 19 April 2018.

A non-binding nomination for the reappointment of Mr. Fernández Carbajal as a non-executive member of the Board of Directors for a period of four years shall be submitted to the AGM. He is a representative of FEMSA (that (in)directly holds a 14.76% economic interest in the HEINEKEN group), and his appointment is based on the Corporate Governance Agreement, which was concluded between (among others) the Company and FEMSA on 30 April 2010 and which was approved by the AGM on 22 April 2010 (in connection with the acquisition by Heineken N.V. of FEMSA's beer activities).

A non-binding nomination will be submitted to the AGM in 2018 to appoint Mrs A.M. Fentener van Vlissingen and Mrs L.L.H. Brassey as non-executive members of the Board of Directors as of 19 April 2018 for a period of four years.

Further details in respect of the proposed appointments will become available on the Company's website (www.heinekenholding.com)

AMENDMENTS TO THE ARTICLES OF ASSOCIATION

A proposal to amend the Articles of Association will be submitted to the AGM in 2018. This proposal is in particular driven by the wish to abolish the priority shares from the capital structure of the Company. Furthermore, the proposal to amend the Articles of Association relates to bringing these in line with the Dutch Corporate Governance Code 2016 and current provisions in Dutch law. In addition, the proposed Articles of Association include textual improvements.

ENQUIRIES

INVESTOR CALENDAR HEINEKEN N.V.

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

Conference call details

HEINEKEN will host an analyst and investor conference call in relation to its 2017 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:

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 speciality 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 and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. HEINEKEN employs over 80,000 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:
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.